Even a cursory look through various media sources will reveal that some feel recessionary times are drawing to a close and the economy is in recovery. Those same media sources will also show that many feel the opposite, that the recession is not over and the economy is far from recovery. I'm not an economist so I won't comment either way. What I have noticed though is that as talk of possible recovery spreads, there is a very noticeable uptick in the number of people who quit their jobs.

I've been watching the Bureau of Labor Statistics "quit rate" which shows the number of employees who quit their jobs. The "quit rate" only counts employees who voluntarily quit and doesn't include layoffs, firings, or business failures. Starting in April of 2010, the number of people quitting their jobs began a steady and noticeable increase. In April the number rose by 151,000. The next four months saw increases of between 121,000 and 122,000. The number shot up to 267,000 in September and is projected to be 274,000 in October. That's compared to a much larger decreases in the quit rate between 2008 and 2009. The data is for seasonally adjusted U.S. non-farm employment.

There's a lesson here for leaders. The workforce is highly mobile: the days of settling into employment at one company for life seem to have passed. In today's world, many employees will move around like a bee going from flower to flower. When there is a downturn in the economy, employees will naturally be a little more hesitant to move; but, at the first sign of recovery, they're off again.

Is this migration of talent something to worry about? That's something you will have to figure out for yourself. Here are some things to consider.

First, it costs money to replace a worker. How much depends on a multitude of factors but experts usually consider somewhere between 50% and 150% of base salary. If you decide your cost is on the low end, fine, but then how many employees are you replacing every year? I know of some retail stores that see over 75% turnover annually.

Second, when an organization looses good members, there is always at least some turmoil. In addition to the knowledge and experience that person takes with them, there is the loss of personal relationships that may have been responsible for improved productivity. It will take time to rebuild those types of relationships.

Third, high voluntary turnover should cause a leader to ask why. People leave an organization for a reason. Several reports have shown that in the majority of cases, those reasons are the direct result of bad leadership. People are much more likely to stay with an organization that meets their needs for a challenging environment and personal growth. It logically follows then that if an organization is experiencing high voluntary turnover, they probably aren't seeing anywhere near the productivity that is possible.

Every organization will experience voluntary turnover and the phenomenon is not restricted to the last decade or two. A 2002 longitudinal survey of late Baby Boomers by the U.S. Bureau of Labor Statistics revealed that there has always been turnover. It does seem to be more common now though. So what's a leader deal to do?

The first step is to hire the right people in the first place. Look for people who have enthusiasm, who exude a desire for self-improvement. For the most part, the specifics of the job can be taught, but the right attitude is much harder to instill in workers. Another trait that is essential is an individual's integrity and values. If a person lacks integrity, or has a different set of values, they will not fit in the organization.

The next step concerns your first- and mid- level managers. They are the leaders with whom you employees interact the most. Are they receiving training in leadership? Unfortunately, leadership development programs are often not extended to these people and the organization suffers.

The third step is to ensure your employees are receiving appropriate recognition. Unfortunately, many see that as public congratulations, a plaque or other trinket, or even a pay raise. While all these may have their place, the effectiveness of such rewards is wholly dependent on the individual. Therefore a leader must strive to understand the employee as an individual.

These three steps are not guaranteed to prevent voluntary turnover, but will certainly provide the tools for a good start.

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