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Reducing staff turnover

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The staff turnover rate at many IT organizations continues to soar. Skilled employees find it easy to change companies, sometimes annually, and achieve a substantial salary increase with every move.

While money remains the fundamental force behind high turnover, the No. 2 factor is a lack of programs designed to help employees develop their careers within their organizations. Studies have repeatedly shown that companies with career development programs in place have lower turnover rates than those with none.

Implementing a career development program takes a lot of work, but it's worth the effort if you can lower staff replacement costs. The basics are quite simple: A successful program defines various positions, lists minimum requirements to qualify for the positions, and identifies alternative career tracks.

Position requirements are often divided into technical, business and behavioral categories. A good program specifies how each skill level will be assessed and makes it clear what level must be achieved to qualify for a promotion. Providing training resources is one good way to keep employees content.

Demographic data indicates that the number of unfilled IT positions will continue to grow for several more years. With that in mind, consider hiring people with high potential, even if they have little or no experience, and give them the incentive and training to move ahead on their own. Also, encourage administrative employees, such as receptionists and mailroom assistants, to progress as far as their skill, ambition and energy will allow them through training.

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Amy Schurr is an editor for Network World's Management Strategies and Features sections. If you have any career topics you'd like her to cover or want to comment on this newsletter, you can reach her at aschurr@nww.com.

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Breaking in new hires
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