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State Employee Turnover Cost Taxpayers $227 Million Last Year
Workers Leaving For More Lucrative Pay
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FOR IMMEDIATE RELEASE
Contact: Gary Anderson
512-476-2691
(Austin) December 20, 2002 - Employees continue to leave state employment at alarming rates, costing the state more than $227 million dollars this past year, according to the 2002 Texas State Auditor's turnover report.
Employees under age 30 account for 15 percent of the State's workforce, but more than 30 percent of its turnover. At the same time, retirements are increasing as Baby Boomers reach retirement age.
"The state is unable to retain emerging leaders to replace retirees. This high turnover rate is driven by inadequate compensation," said Gary Anderson, executive director of Texas Public Employees Association, "and it threatens the state's ability to deliver vital public services effectively."
Opportunity for better pay and benefits was the number one reason employees in 2002 cited for leaving state government, according to an on-line exit survey available to agencies for the first time in 2002.
"Even with the downturn in the economy, employees are leaving in droves for better opportunities. This exodus costs the taxpayers money and depletes a valuable state asset - our human capital," Anderson said.
The state auditor's report noted that even though the economy is uncertain, demographic trends are not. The report cites a Watson Wyatt study predicting a labor shortage continuing into the next decade.
According to the state auditor's report, there are not enough GenXers and GenYers to replace the Baby Boomers who are retiring. Even in the economic slowdown, the competition for talent is not going away,
"In the past, the state was able to compensate for lower pay with very attractive health care benefits. That is no longer a reality for a variety of reasons. Namely, it is more expensive to buy health care insurance today and the state now insures more and more of its citizens," said Anderson.
State employee turnover for FY 2002 was 14.8 percent, almost 50 percent higher than the national rate for state governments.
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