70 Percent of HR Managers Concerned about Workforce Retention, According to Monster Study; Related Aberdeen Group Report Further Explores Worker Turnover.

MAYNARD, Mass. -- Monster(R), the leading global online careers and recruitment resource and flagship brand of Monster Worldwide, Inc. (NASDAQ: MNST), today released a study, "Retention Strategies for 2006 and Beyond." The research examines HR managers' attitudes toward turnover and workforce retention, and identifies actionable strategies for retaining and motivating top employees. A separate report released today by Aberdeen Group and sponsored by Monster, "Retaining Talent: Retention and Succession in the Corporate Workforce," further explores retention and succession issues.

Key Takeaways

--Recruiters and hiring managers are not only cognizant of retention issues, but are concerned about their current and future impact on organizational growth

Of the HR managers surveyed:

--70 percent feel worker retention is already a primary concern

--40 percent state that turnover has increased in the past 12 months

--55 percent expect workforce retention will be a high to very high challenge for their organization in the next five years

--Employee satisfaction surveys are used by 69 percent of respondents yet most are conducted as an ad-hoc process and only 32 percent report making personnel and workplace changes as a result of the findings

The U.S. workforce continued to grow and added 79 million workers between 1950 and 2000, according to the Bureau of Labor Statistics. In contrast, over the next 50 years (2000 - 2050) American businesses are expected to face a decrease in the available workforce. This decrease is due, in part, to a proportionately smaller generation of talent replacing Baby Boomers who are retiring or transitioning to part-time roles.

"Our study reveals that recruiters and hiring managers are not only cognizant of the retention issue, but are concerned about its current and future impact on organizational growth," said Dr. Jesse Harriott, VP of Research at Monster. "Businesses of all sizes and across all industries must develop - and implement - creative programs and strategies to attract and hire top candidates while retaining and motivating current employees. As the talent pool shrinks, it is imperative that immediate action is taken to ensure businesses are properly prepared and staffed for the future."

Workforce Retention: A Growing Concern

More than two-thirds (70 percent) of HR managers surveyed feel that worker retention is already a primary concern, in part due to a slowly improving economy, higher demand for workers, and a workforce that has become confident in their ability to seek and obtain alternative employment. Forty percent state that turnover has increased in the past 12 months, while more than half (55 percent) expect workforce retention will be a high to very high challenge for their organization in the next five years.

Constant Monitoring of Worker Sentiment

Understanding employee attitudes throughout the employment lifecycle is increasingly critical to successfully managing retention. Employee satisfaction surveys are used by 69 percent of respondents, yet most are conducted as an ad-hoc process and 32 percent report making personnel and workplace changes as a result of the findings. It is vital for HR managers to not only seek employee satisfaction information but to implement, where appropriate, this feedback into the working environment.

According to the Aberdeen Group study, 41 percent of respondents report retention begins with hiring and onboarding. This finding compliments Monster's research, which found that only 27 percent of firms always use onboard interviews as a technique to gauge new hire satisfaction while 48 percent of firms always use exit interviews. Firms have an opportunity to place a greater emphasis on monitoring the satisfaction of new hires and continuing these assessments throughout the employee lifecycle, rather than focusing on departing employees.

"In anticipation of a worker shortage, it is critical for HR managers to find, attract and hire today's top talent," said Jesse Harriott. "Extensive pre-screening and applicant assessment, as well as consistent onboarding interviews, can help identify optimal candidates to fill open positions."

Making Retention a Business Objective

Prioritizing retention among other key business objectives will be of crucial importance moving forward. Monster's survey showed that more than 75 percent of HR managers believe compensation is one of the top three reasons why employees leave. While compensation is an important consideration, not all companies can deliver this competitive advantage. Companies must also create a comprehensive plan that will inspire worker loyalty and commitment. Select strategies recommended by surveyed companies include:

--Make supervisors more accountable for worker retention by tying compensation to turnover metrics.

--Create an environment that promotes work/life balance by instituting policies that encourage and support a satisfying personal life.

--Pursue succession planning to enable a workplace where employee expectations are clearly articulated. Additionally, offer learning and development programs that groom employees for future management roles, not just one specific job.

--Build performance-based HR systems to identify and proactively manage top percentile employees. When possible, promote from within.

--Develop a mentoring program that matches new employees with seasoned veterans.

--Use tools to continuously and frequently monitor sentiment throughout the employee lifecycle. Exit interview information should be distributed to senior management in an effort to drive organizational change.

--Create an employment brand "experience" that not only motivates and energizes employees, but can be used to attract new talent.

PDF files of Monster's "Retention Strategies for 2006 and Beyond" research study and Aberdeen Group's "Retaining Talent: Retention and Succession in the Corporate Workforce," report are available to view in their entirety at http://info.monster.com/intelligence/8652_en-US_p1.asp.

Survey Methodology

The findings presented in this report are the results of telephone interviews and a nationwide online survey conducted by Monster between August and October 2005. The research sample consisted of 600 HR managers whose responsibilities gave them intimate knowledge of the retention practices and strategies within their respective company. The HR managers were selected from a list of diverse industries and ranged in size from companies with fewer than 25 employees to firms with more than 2,000 employees.

About Monster Worldwide

Founded in 1967, Monster Worldwide, Inc. is the parent company of Monster(R), the leading global online careers and recruitment resource. The company also owns TMP Worldwide, one of the world's largest Recruitment Advertising agency networks. Headquartered in New York with approximately 4,800 employees in 26 countries, Monster Worldwide (NASDAQ: MNST) is a member of the S&P 500 Index and the NASDAQ-100 Index. More information about Monster Worldwide is available at www.monsterworldwide.com.

Monster(R) is the leading global online careers and recruitment resource. A division of Monster Worldwide, Monster was founded in 1994 and is headquartered in Maynard, Massachusetts, USA. Monster has 26 local language and content sites in 24 countries worldwide. Monster is known for connecting quality job seekers at all levels with leading employers across all industries and offers employers innovative technology and superior services that give them more control over the recruiting process. More information is available at www.monster.com or by calling 1-800-MONSTER. To learn more about Monster's industry-leading employer products and services, please visit http://recruiter.monster.com.

Special Note: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties, including statements regarding Monster Worldwide, Inc.'s strategic direction, prospects and future results. Certain factors, including factors outside of Monster Worldwide's control, may cause actual results to differ materially from those contained in the forward- looking statements, including economic and other conditions in the markets in which Monster Worldwide operates, risks associated with acquisitions, competition, seasonality and the other risks discussed in Monster Worldwide's Form 10-K and other filings made with the Securities and Exchange Commission, which discussions are incorporated in this release by reference.