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Leslie Bonacum
Neil Allen

Three Out Of Four Say Better Communication Equals Greater Employee Retention

Survey Finds Recruitment and Retention the Top Issues Facing Employers Today

(PETALUMA, CALIF., December 8, 2000) Recruiting good people and retaining high performers scored highest by a wide margin in a recent survey of 4,000 human resource professionals conducted by KnowledgePoint. Asked to choose the two major issues facing their organizations, 79 percent and 51 percent chose recruitment and retention respectively, underscoring the bottom-line impact the lack of staffing is having on organizations — and forcing them to choose innovative ways of retaining their employees.

Why do workers leave? It’s not just about the money. Forty-one percent of HR managers believed that not feeling valued is just as important a factor as compensation. Thirty-two percent recognized that having a poor relationship with a manager is a key factor as well.

So what can employers do besides throw stock options at the problem? Improve communication within your organization, said 71 percent of respondents — up from 37 percent a year prior. This doubling of companies focusing on communication reflects the research showing that when salary and benefits are comparable, employees gravitate to workplaces where they feel valued, have good working relationships with their managers and understand how their work contributes to the organization’s objectives.

To foster a culture of communication and employee development, savvy employers are turning to year-round performance management systems, like KnowledgePoint’s new Performance Impact, a comprehensive Web-based program that functions as a strategic employee retention tool (learn more about Performance Impact at

Additional results of interest:

  • The number of companies using interns to maintain staffing doubled from 1999 to 2000, from eight to 14 percent.
  • One in three said a lack of interviewing skills on the part of hiring managers is contributing to hiring difficulties within their organization.

KnowledgePoint conducted this survey of 4,054 human resource professionals in August, 2000; 869 responded, resulting in a 21 percent response rate. To view the entire survey, please go to:

About KnowledgePoint

Since 1987, KnowledgePoint (a division of CCH INCORPORATED) has been a leading developer of knowledge-based human resource management solutions, providing Windows-based, intranet, Web and hosted employee management solutions for the enterprise, small businesses, HR professionals and individual managers. Visit to learn more about KnowledgePoint.

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