30 January 2007

STAFF RETENTION AND ABSENCE MANAGEMENT TOP CONCERNS FOR UK EMPLOYERS IN 2007

- staff retention top concern for UK business
- absence management key issue for medium and large employers
- workers place career progression above increased pay

Manpower report: HR priorities - 2007

Holding onto staff is the most pressing HR priority for UK employers in 2007, according to research released today by Manpower, the UK’s leading employment services experts. Adapting to legislation and dealing with absence management are also significant issues for UK businesses - in particular for medium sized and large organisations.

Manpower’s research – of over 1,700 UK employers – reveals that 72% of businesses believe that holding onto staff will be an HR priority for the year. And when asked to name their key priority for the year, staff retention again tops the chart as the key priority amongst 35% of employers. This concern is shared by all businesses and organisations irrespective of size.

The details – revealed in a report HR priorities - 2007 – detail the most pressing concerns for UK employers this year. The report also shows that adapting to new legislation will also be a major concern with 71% of businesses stating this is a priority.

Mark Cahill, managing director at Manpower UK, comments: "The range of HR priorities and concerns facing employers emphasises the challenges of running a business – and in particular of managing the most important asset an organisation has, its people. Holding onto the best people is very much an issue for employers this year. And in a tight labour market, it has never been more important for employers to pay close attention to their retention policies."

Separate research of over 800 workers reveals the key reasons for moving job and what employers can do to keep staff from leaving. Many workers are more motivated by career opportunities than money: 28% of workers say that the key reason for moving employer is for better career opportunities compared to just 17% who say they move for an increase in salary. Improved flexible working opportunities would encourage 22% of workers to stay with an employer longer and better communication (18%) and a better work environment (17%) would also encourage them to stay.

The research reveals a difference in concern amongst employers of different sizes: smaller businesses are most concerned with holding onto staff (the key priority for 38% of smaller employers compared to 23% of large ones), wage inflation (6% compared to 1%) and poor performance of staff (9% compared to 4%). At the same time, aside from holding onto staff, larger businesses are most concerned with absence management (21% compared to 2% of small businesses).

Mark Cahill continues: "Keeping staff turnover low takes time and investment. Lower staff turnover results in a more motivated and productive workforce and reduced recruitment costs.

"Pay and benefits are always important for workers, but employers also need to think of ways in which they can make a difference in other ways – from the developmental opportunities they provide staff, how they communicate with staff, and even the nature of the working environment."

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About Manpower

Manpower is one of the largest and most innovative companies in the UK’s employment services industry; creating and delivering services that enable its clients to win in the changing world of work. The company provides a wide range of services including permanent, temporary and contract recruitment, employee assessment and selection, training, outplacement, outsourcing and consulting.

Manpower was established in the UK in 1956, and today works with organisations in both the public and private sectors, ranging from small and medium-sized enterprises, to multi-national organisations such as BMW, BT, Hertfordshire County Council, IBM, Royal Mail and Xerox.

The focus of Manpower’s work is on raising productivity through improved quality, efficiency and cost-reduction, enabling customers to concentrate on their core business. Manpower works across all industries finding people for every level of an organisation.

Manpower Professional (formerly Nicholas Andrews) is the company’s accountancy and finance arm, and was voted Recruiter of the Year by Accountancy Age magazine in 2005.

Manpower UK has a network of over 300 offices and is a subsidiary of Manpower Inc, a worldwide network of 4,400 offices in 73 countries and territories.

For more information, see www.manpower.co.uk