Over the past few years, the tables have turned in the corporate finance job environment: the talent is in the driver’s seat.

Unfortunately for employers of corporate finance professionals, we continue to be in an “employee-driven” job market right now. That means that good candidates typically have a few solid job opportunities to consider any time they decide to leave your company and seek a new position elsewhere.

It’s well-documented that the cost of replacing finance workers is particularly high. According to the Harvard Business Review (December 2006), the fully loaded cost of replacing a skilled worker who leaves a job — excluding lost productivity — is typically 1.5 to 2.5 times the worker’s annual salary.

The importance of retaining your best performers is only going to increase in the coming years. As more baby boomers (76 million) begin to retire, the upcoming Generation X population (44 million) will not be able to match the sheer size of this workforce. In other words, there will be a lot fewer workers out there for you to recruit.

There are a number of retention strategies that employers would be well-served to consider as they strive to reduce their turnover costs. But for employers of corporate finance professionals, three major factors are the most important to address if you want to improve your chances of hanging onto your best people.

1. Training/Education

According to our Spherion® Emerging Workforce® Study, training and development opportunities rank as one of the most important predictors of retention. It makes sense, after all, that training and retention rates are linked. By offering training programs, employers show their employees that they are interested in keeping their company- and its employees- on the cutting edge of their field. In turn, performers feel valuable and stay with the company. They also see that, through training, they will continue to move forward and advance their careers.

Training benefits employers and employees alike. Employers can be sure that their employees are abreast of the latest trends and advances, while employees are rewarded with a competitive edge and the satisfaction that comes from knowing that they are valued. If employers demonstrate a genuine interest in their employees, they are likely to stick around.

2. Career Development Opportunities

When there are avenues for participating more fully in the company through upward, as well as lateral moves, employees are better able to maintain interest in their jobs and the organization. It also helps fulfill the need that high-performing workers have for increasing their knowledge and skill base. Outlining clear career paths gives employees a roadmap for their expectations of enhancing their position. These factors go a long way toward limiting turnover by providing satisfaction for today and hope for the future. Employees feel more vested in the organization, more committed and are less likely to think about jumping ship.

Moreover, employees want to have influence over how their work gets done and want to feel as though their employers have confidence in their thinking and actions. They want their opinions to be valued and not have the boss looking over their shoulders. In addition, authority to act autonomously contributes to how satisfied one is with the job, and consequently how committed one is to the organization.

3. Compensation

While few corporate finance professionals today take or leave a job based solely on what they are paid, it remains a critical component. Don’t make the mistake of getting caught up in “internal equity” thinking, where you shy away from paying a new employee more than your current workers for fear that it will upset the status quo — you can pay for good workers now or you can pay more for them later. Innovations such as pay-for-performance programs can help ensure that those who are central to the company’s success are rewarded accordingly. Companies that provide long-term incentives tied to performance over time find it easier to keep high-performing employees. Also, ensuring that raises and bonuses are based primarily on merit and having an equitable performance appraisal system are also crucial to employees’ feelings of fairness and worth.

Perhaps most importantly, employers should make sure that employees understand the reasoning behind the organization’s compensation and benefits systems. Additionally, offering more flexible benefits, such as telecommuting, flex-time, sabbatical leaves and childcare also contribute to higher levels of satisfaction. These conditions help ensure that key people maintain the appropriate levels of commitment.

For more information, visit Spherion.