According to recent studies, many private firms are struggling to find and keep valued employees. The decrease in the number of 25- to 34-year-olds and downsizing trends of recent years have led employers to search desperately for answers to recruiting and retaining talented people in the 21st century. The studies indicate that, while employees tend to leave jobs because of a lack of professional development opportunities and job satisfaction, they often list "better compensation" in their resignation letters for fear of retribution.
Low retention and high attrition, compounded by lack of leadership focus, are affecting private industry's bottom line drastically. Managers divert tens of thousands of dollars from operational funds to pay for training and recruitment of new hires-yet the average cost of retaining employees is dramatically lower than the cost of recruiting. Ironically, civilian managers reportedly are uninterested in finding solutions to attrition and retention problems until after employees deliver their resignation letters.