Amid growing concern about inequitable talent retention and systemic barriers affecting diverse workers across the U.S. economy, Conduent recognizes that “our associates drive our success.”[1] The company reports that workforce retention is a key measure of organizational efficiency,[2] and notes in its 10-K the strategic importance of its “ability to attract and retain necessary technical personnel and qualified subcontractors.”[3] Yet, Conduent does not disclose whether it is actually succeeding in retaining its own talent particularly across different demographic groups. This lack of transparency prevents investors from evaluating a material driver of the company’s risk exposure, performance, and long-term value creation.

As employees leave, they take with them institutional knowledge, customer relationships, and process memory. High employee turnover also imposes recruitment, onboarding, and training costs. Gallup estimates employee-related turnover costs at 80% of annual salary for professionals in technical roles.[4] Beyond direct training costs, on-the-job time is needed by new employees before they are able to contribute fully. Frequent staffing disruption also impairs operational efficiency, safety, service consistency, team cohesion, and employee morale.[5] This, in turn, can hurt sales, customer satisfaction, and brand reputation.[6] Companies that operate on an international scale, may experience reduced cohesion and connection across global teams.

In contrast, when a business retains employees, resources are freed up for customer service and investment in growth. Reducing separation rates also allows more investment per employee (training, development, cross-skilling) and the ability to build and deepen employee skills over time.

Employers such as Microsoft, Visa, Procter & Gamble, Bank of America, Netflix, and Pfizer disclose retention or attrition data by demographic group. The collection and assessment of retention rate data is possible in all major workforce management databases; it is becoming a standard human resource practice. In total, more than 250 companies disclose retention rates by gender and over 70 report them by race.

Retention is a forward-looking signal of human capital and overall business health; it is far more valuable to investors than static head counts alone. Strong retention signals a healthy internal culture where employees have confidence in the future of the company.

[1]https://downloads.conduent.com/content/usa/en/document/Conduent-Corporate-Social-Responsibility-Report-2024.pdf

[2] https://investor.conduent.com/static-files/feda5a28-eabe-4fea-8241-7e4685fbe660

[3] https://investor.conduent.com/static-files/feda5a28-eabe-4fea-8241-7e4685fbe660

[4] https://www.gallup.com/workplace/646538/employee-turnover-preventable-often-ignored.aspx

[5]https://www.researchgate.net/publication/211392097_The_Cost_of_Employee_Turnover

[6] https://www.gallup.com/workplace/646538/employee-turnover-preventable-often-ignored.aspx