Retaining the Best People
Jong Gyu Park and Maria Spencer
It is important that the federal government understand, and respond to, workforce retention issues, not only to retain key talent but also to manage morale and efficiency issues that are linked with employee turnover. Since unemployment rates and turnover are negatively correlated in both the private and public sectors (Figure 6.1), it is essential for employers to predict how their workforces will respond to fluctuations in the labor market, especially when unemployment is low. If employers do not monitor and understand the reasons their employees leave during periods of high unemployment, quit rates could easily increase when the economy recovers, the unemployment rate drops, ...