Several talented professionals I know told me about their plan to change jobs as soon as the economy rebounds. They mentioned how poorly they and others were being treated by senior management at their companies with the downturn in the economy. Some professionals were told that they could leave if they did not like the changes as there are many people that will gladly take their place. While this is true in the short term, this type of managerial behavior sows the “seeds of retribution” when talented employees leave the organization as soon as the economy improves (as it surely will).

The decision of these professionals to leave their firms reminded me of an article I read awhile back. The article, The Real Exit Interview, spoke about the cost of professional turnover.

You may have heard the saying that most employees leave their boss not their jobs.  There is much truth in this saying.  This means  effective management skills is directly tied to company profits.

A recent article in Training & Development quantified the turnover cost of professionals and managers:

Two million professionals and managers leave their employers each year. . . . The most conservative estimate to replace these workers is $64 billion annually –equivalent to the 2006 combined revenues of Google, Amazon, Starbucks, and Goldman Sachs. (Klein)

The next time I hear someone take the position that people skills are unimportant and organizational leadership and management training are a waste of resources, I think I will send them a copy of the article.

Reference:

Klein, F.K., (2007, November). The Real Exit Interview: What Employees Aren’t Telling You on Their Way Out. Training & Development, 76-77.