IMPROVE RECRUITMENT & RETENTION

One of the biggest challenges faced by today's employers is the recruitment and retention of skilled workers. In The War for Talent, McKinsey & Co. predicts that the demand for talented employees will rise by 33% over the next 15 years. It also predicts a 15% drop in supply. A good example is the high-tech industry where the existing pool of qualified and available high-tech workers cannot meet the demand. As a result, qualified high-tech workers can cherry-pick the best jobs. Demographics will only make things worse, with the smaller workforce coming in to replace retiring baby boomers.

Telework has become a major recruitment and retention strategy, and the fact that it brings other business benefits is a bonus. Agencies can potentially recruit workers from virtually any location. In some circumstances, recruitment costs can also be reduced. In one state agency, Human Resources saw a 79 percent increase in applicant responses when a position was advertised with the potential to telework. While there may have been other contributing factors as to why the position attracted more interest, the results are similar to other testimonials where organizations discover a significantly higher and well qualified pool of candidates, thereby enabling the agency to pick the best and brightest for its workforce. A formal telework program can significantly improve recruitment because an organization is empowered to attract more qualified employees, become an employer of choice, and reduce commute time and miles.

Telework can also help to retain key employees who otherwise might leave the organization - thus helping to avoid the costs and time of recruiting and retraining replacements.


For example:
• An employee who moves geographically due to a job change by another family member may still be available through telework.
• An employee on maternity leave can continue doing some of their work from home on a part-time basis, and require little to no retraining when they return to work full time.

Telework can also be a good option to attract and retain:
• Qualified staff who have disabilities.
• Single parents who need to be at home for the children; or who have responsibility for elderly or sick relatives.

Include telework in your employee surveys. Recruitment and retention is such a hot issue that companies regularly survey employees and potential recruits to determine which job features are most important to them. Most of these surveys ask respondents to tick the appropriate box in an itemized wish list. Unfortunately, most such wish lists do not specifically mention telework. In some cases, telework may be mentioned, but it is blended into a catch-all phrase such as: "flexible work arrangements such as flexible hours, telework etc."

By not focusing on telework, surveys fail to capture how highly employees value this work option. Conversely, companies that specifically canvass for telework in their surveys are surprised by the strong reactions of the respondents.

Recent surveys show that today's workforce view a flexible work schedule and teleworking as a top draw when considering employment opportunities. It ranks second only to salary. Despite this finding, just 19% of companies allow some sort of job-sharing program according to the Society for Human Resource Management's 2005 benefits survey. That compares with 33% of companies that offer a compressed workweek, 56% that provide flex time and 37% that allow telecommuting.

Another survey conducted that same year; the 15th annual one, by the CCH Unscheduled Absence Survey by CCH INCORPORATED (CCH) found that while the rate of unscheduled absenteeism barely budged since last year, the average per-employee cost has risen to $660 per employee --costing some large employers over $1 million per year. The survey also found that employee morale can affect a company's absenteeism rate, with organizations with Good/Very Good morale experiencing a 1.5-percent rate of unscheduled absences while those reporting Poor/Fair morale had a rate of 3.2 percent.

The number of employed Americans who performed any kind of work from home, with a frequency range from as little as 1 day a year to full time, grew from 41.3 million in 2003 to 44.4 million in 2004, a 7.5% growth rate.
-2004 American Interactive Consumer Survey conducted by The Dieringer Research Group

Teleworkers who worked at home during business hours at least one day per month increased in the past year from 23.5 million to 24.1 million, a 2.6% increase. Of that 24.1 million, 16.5 million are self employed, a 4.4% increase over 2003. This 24.1 million represents 18.3 percent of employed adult Americans, nearly one-fifth of the workforce.
-2004 American Interactive Consumer Survey conducted by The Dieringer Research Group

In 2003 there were 4.4 million teleworkers working at home with broadband. By 2004 the number soared to 8.1 million, an 84% increase.
-2004 American Interactive Consumer Survey conducted by The Dieringer Research Group

According to a huge compensation survey of 1,400 CFOs conducted by Robert Half International, 46% said telecommuting is second only to salary as the best way to attract top talent. 33% said telecommuting was the top draw. The bottom line? You want to attract the most talented and diverse individuals to your organization? Telework is one benefit that should be strongly promoted by your Human Resources and Recruitment Team.

Telework increases productivity which also eases recruitment and retention challenges. On average, teleworkers are 20% more productive. That's like getting a free worker for every five teleworkers.



When employees are happy your organization reaps a bountiful harvest of telework benefits such as:

• Improved Retention/Decreased Turnover
• Employee Loyalty
• Positive Work/Life Balance
• Profitable Flexibility in Work Scheduling

Companies that adopt telework programs demonstrate they are modern, flexible, caring and family-friendly. They recognize that employees need to balance work and personal time.

If your company employs knowledge workers, and you find recruitment and retention to be a challenge, think about starting a telework program. If you don't, competitors from anywhere on the planet may end up with some of your potential recruits. Even worse, they may end up with some of your most valuable employees. Call MGC today for your free consultation! Our mission? Your success. We're here to help.