11 Employee Retention Carol Trostle Trostle & Associates, LTD PTMA San Antonio February 15,

22 Today’s Agenda Unemployment – What do we know? Texas employment and job growth San Antonio labor market Reasons for attrition The cost of replacement Q & A from the audience - Panelists: Tom Frausto – KCI USA Dana Gonyer – FiServ/Benefit Planners Kaari Swope – Clarke American 2

33 What Do We Know? * 75 % of employees are looking for new jobs Non management employees are most likely to resign 73 % of HR Professionals are concerned about voluntary resignations 50 % said they have implemented retention processes 3 *From the 2006 U.S. Job Retention Poll released by the Society for Human Resource Management (SHRM) employees & HR professionals

44 Unemployment rate is at a 5 year low at 4.5% Job growth in Texas 15,600 jobs added during December of ,200 jobs added during 2006 Texas has added jobs for 27 consecutive months Unemployment compensation claims down 4.8% from one year ago to 56,501 4 Texas Unemployment* *Texas Workforce Commission’s monthly labor force report December 2006

55 Civilian Labor Force – 929, ,800 are employed SA Unemployment Rates December December San Antonio Labor Market Statistics* *Texas Workforce Press Release – January 23, 2007

66 1. Career opportunity 2. Lack of effective leadership 3. Work environment 4. Salary and benefits 5. Increased job duties to reduce cost 6 Why People Leave* *Trostle survey 70+ companies and years of experience

7 Employee Replacement Costs Percentage of Annual Salary 7 7 Cost Category% of Annual Salary Exit Period7.5 % Replacement20 % Training20 % Indirect52.5 %

88 Tom Frausto – KCI Dana Gonyer – Fiserv/Benefits Kaari Swope – Clarke American 8 Challenges and Best Practices Today’s Panel

99 Thanks to Our Panel and PTMA! 9