n the past two decades, placing supply and demand heavily in favor of employees. And the employee shortage shows no signs of abatement in the near term: "When Manpower Inc. surveyed 16,000 companies earlier this year, 30% said they would be trying to add people in 1998" (Fisher, 1998, p. 70). Prevailing social and demographic factors further indicate that today's tight labor market will continue. The "baby bust," the drop in the birth rate in the late 1950s and early 1960s, is partly responsible. A skills shortage is also apparent; many jobs of today require more training and ability on the part of jobholders, which puts a premium on the skilled labor force. In addition, the corporate downsizings of recent decades have led to a change of attitude for the average worker. Most feel no loyalty to companies that cannot guarantee lifetime employment and are not averse to changing jobs when a better opportunity arises.
Nowhere is the effect of the tight labor market more apparent than in the information technology sector. Estimates of employee turnover range from 20 percent to 30 percent (Alexander, 1997; Fisher, 1998). Employee retention is of such great concern that some employers have hired retention consultants to help them cope. These consultants counsel employers to look for early warning signs of discontent to head off employee defections.
Almost all employees give clues that they are planning to leave. Telltale signs include sudden employee behavior changes like reduction in productivity and avoidance of group activities. Employees who begin wearing suits to work and taking long lunches or time off at odd hours of the day are almost certainly interviewing for new jobs. A complaining employee who suddenly stops complaining is a sign that he or she has become fed up with the work situation. Retention consultants counsel employers to keep the lines of communication open: "Listening may be the first step to correctin...