Wow! Maybe CROs do exist…

The United States currently is at almost full employment. Yet, most people still think unemployment is high, possibly because of ongoing headlines about downsizing and jobs moving offshore.

The labor shortage in 2004, however, was just the tip of the iceberg slowly heading toward us. Bureau of Labor Statistics indicate that in 2010, we will have 10 million more jobs than people.

Although this labor shortage has been predicted, most of us have kept our heads in the sand of daily business crises and are unprepared.

The largest cost for most companies now is people, often 75% or more of a company’s total budget. Compound this with the average cost of replacing an employee, including lost sales and productivity, training and “ramp up� time for the employee, cost of other employees interviewing and training, and the replacement cost can range from 80% to 300% of salary. Replacing employees can dramatically reduce the company’s bottom line.

The key is to hire the right people and keep them.

The #1 reason most people leave jobs in the first year of employment is related to culture. The person has the right skills and experience, but not the right fit culturally. She or he is not happy and therefore not productive.

READ: Impending Labor Shortage and the Rise of the CRO (Chief Retention Officer)