PrimeNewswire, June 27, 2007, Wednesday
Copyright 2007 PrimeNewsWire, Inc.
All Rights Reserved
PrimeNewswire
June 27, 2007 Wednesday 6:25 AM EST
SECTION: COMPANY ANNOUNCEMENT
HEADLINE: Gevity-Cornell University Study: Retailers Experience Nearly 75 Percent Less Turnover Through Defined Work Strategies;
Surveys of 243 Small Businesses Also Show Improved Customer Satisfaction, Employee Commitment Among Professional Services, Manufacturing Industries
BODY:
BRADENTON, Fla., June 27, 2007 (PRIME NEWSWIRE) -- Gevity (Nasdaq:GVHR), which serves as the full-service human resources department for small and mid-sized businesses, today released a study of nearly 250 small businesses revealing that employee turnover in the retail industry was nearly 75 percent lower when management incorporated specific human resources strategies.
The study, sponsored by Gevity and conducted by Cornell University Associate Professor Christopher Collins, Ph.D., was developed from surveys from 243 small businesses nationwide in the professional services, manufacturing, retail and lower-skilled services industries. Participating companies ranged in size from 8 to 600 employees and the average number of employees was 47. Data was obtained using both manager/owner surveys and employee surveys to minimize bias.
In particular, the study showed that retailers had 74.7 percent lower turnover when they hired employees based on person-organizational fit, used a self-management strategy, and implemented a family-like atmosphere.
Similarly, lower-skilled industries experienced nearly 58 percent less turnover when incorporating sound HR strategies.
"The Gevity-Cornell University research continues to prove the importance of implementing good employment management strategies," says Michael J. Collins, a senior vice president at Gevity. "It is critical that small businesses continue to develop initiatives to drive business growth, improve employee satisfaction and lower turnover."
The study is the fifth part of a two-year study building on previous research that showed that companies experienced 22 percent higher sales growth, 23 percent higher profit growth and 67 percent lower employee turnover rate by adopting three key HR strategies.
The findings not only show a link between human resources and small business performance, but also identifies the most effective strategies independently and as part of an overall employment management program.
"The fifth phase of the study reinforces our earlier findings that specific human resources strategies have a meaningful, and statistically significant, impact on small businesses' performance and ability to retain employees," says Christopher Collins, who serves as Associate Professor at Cornell's School of Industrial and Labor Relations. "This research clearly supports the importance of implementing HR best practices no matter what industry you are in."
Researchers found that companies that simultaneously implemented those three employment management strategies showed 22 percent higher sales growth, 23 percent higher profit growth and 67 percent lower employee turnover than did companies that implemented employee management strategies based on person-job fit, management practices based on tight controls, and employee motivation and retention strategies based strictly on providing individual monetary rewards.
The Impact of Effective Employment Management Strategies Across Industries
After identifying the three key HR strategies with the greatest impact on employee satisfaction, business performance and turnover, the researchers applied their findings to small businesses in the professional services, manufacturing, retail and lower-skilled services industries. Upon examining employee and manager surveys from 243 small businesses in the selected categories, the researchers concluded:
| |
| |
| 1. No matter the industry, HR strategies can and do affect company |
| financial performance and employee satisfaction. |
| 2. A higher percentage of small businesses in the professional |
| services and manufacturing sectors currently implement effective |
| HR strategies. |
| 3. Companies in the retailing and lower-skilled services industries |
| benefit more from effective HR strategies. |
Performance Results When Using Effective HR Management Practices -- Across Industries
"The results of this latest phase of the study are striking," says David Sikora, director of research at Gevity. "We knew from previous phases that investing in effective employment management strategies can help a small business grow sales and profits and lower employee turnover. The new findings, by looking at specific industries, show us what a differentiator HR best practices can be in areas such as operational performance, customer satisfaction and employee turnover for small businesses in retail, lower-skilled services, professional services and manufacturing industries."
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| ---------------------------------------------------------------------- |
| Professional Manufacturing Retail Lower-skilled |
| Services Services |
| ---------------------------------------------------------------------- |
| Operational |
| Performance 13.1% higher 14.9% higher 24.3% higher 21.4% higher |
| ---------------------------------------------------------------------- |
| Customer |
| Satisfaction 14.2% higher 10.1% higher 20.1% higher 26.2% higher |
| ---------------------------------------------------------------------- |
| Employee |
| Commitment 16.2% higher 17.0% higher 31.4% higher 38.2% higher |
| ---------------------------------------------------------------------- |
| Job |
| Involvement 12.1% higher 10.3% higher 34.6% higher 30.1% higher |
| ---------------------------------------------------------------------- |
| Customer |
| Service 12.7% higher 9.2% higher 25.5% higher 24.3% higher |
| ---------------------------------------------------------------------- |
| Helping |
| Behaviors 14.2% higher 15.1% higher 27.8% higher 28.8% higher |
| ---------------------------------------------------------------------- |
| Employee |
| Turnover 21.8% lower 19.4% lower 74.7% lower 57.9% lower |
| ---------------------------------------------------------------------- |
Full results and executive summaries of all Gevity research are available at http://www.gevity.com/resource_center/gevity_institute.html
About Gevity
Thousands of small and mid-sized businesses nationwide leverage the flexibility and scalability of Gevity's human resources (HR) solution to help them maximize the return on investment in their people. Essentially, Gevity serves as the full-service HR department for these businesses, providing each employee with support previously only available at much larger companies. Gevity delivers the Gevity Edge(tm), a comprehensive solution comprised of innovative management and administration services, helping employers to streamline HR administration, optimize HR practices, and maximize people and performance. This solution enables both businesses and their employees to achieve their full potential, giving them an edge over competitors. Gevity's unique approach features Gevity OnSite(tm), experienced HR Consultants based in local markets backed by nationwide resources and easy-to-use technology, including Gevity OnLine(tm) and Gevity OnCall(tm). For more information, call 1.800.2GEVITY (1.800.243.8489) or visit gevity.com.
A copy of this press release can be found on the company's Web site at http://www.gevity.com.
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