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April 22, 2003
Effective Communication as Retention Tool

If an organization wants to improve employee commitment, satisfaction, and retention, it should evaluate how it communicates with its employees, according to an analysis from Mercer Human Resource Consulting.

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Through its 2002 People at Work Survey, Mercer asked a representative sample of 2,600 workers to share their attitudes and perceptions regarding their job, organization, compensation, benefits, work environment, and the management of their organization. Of the 180-plus questions in the survey, about 15 pertained specifically to organizational communication. The survey found:

  • Among employees who say their organization does a good job of keeping workers informed about matters that affect them, just 15 percent say they are seriously considering leaving their organization and 6 percent say they are dissatisfied with their organization. Among employees who say their organization does not keep them informed, 41 percent are thinking about leaving and 42 percent say they are dissatisfied.
  • Among employees who say they have ready access to the information they need to do their job, 18 percent are seriously thinking of leaving and 10 percent say they are dissatisfied with their organization. Among employees who say they do not have ready access to such information, 48 percent are thinking of leaving and 49 percent say they are dissatisfied.
  • Among employees who say they are provided with the assistance and information required to manage their career, 14 percent are seriously thinking about leaving and 6 percent are dissatisfied with their organization. Among employees who say they do not receive such information and assistance, 48 percent are thinking about leaving and 50 percent are dissatisfied with their organization.

The gaps aren't quite as large on some key issues surrounding pay. For example, among employees who believe they are paid fairly given their performance and contributions to the organization, 14 percent are seriously considering leaving and 7 percent are dissatisfied with their organization. However, among employees who believe they are not paid fairly, 39 percent are thinking of leaving and 36 percent are dissatisfied.

"These findings go against the conventional wisdom that pay and benefits are all that matter to employees," says David Slavney, a senior communication consultant with Mercer. "Clearly, employees value effective communication with their employers. It affects their overall commitment and satisfaction, and is a factor in their decisions to stay with or leave an employer."

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