Employers and employees are obviously headed for a collision to be played out in a workplace near you. A recently released Deloitte report called the standoff “a tale of two mindsets.”
Many employers seem to believe their employees have few options in this weak economy. They feel employees should feel lucky they have job.
Employees, especially the most talented and qualified, see the world a bit differently. Among employees surveyed in the Deloitte survey, a significant number of workers are looking to jump ship. Thirty percent of employees are currently working the job market and nearly half are at least considering leaving their current jobs.
That stands in sharp contrast to the executives who were surveyed. Only 9 percent of executives expect voluntary turnover to increase significantly among Generation X employees. That means 9 out of 10 executives may be ignoring the elephant in the room.
The survey revealed that about 22 percent of Generation X employees are actively job hunting. Even more alarming, only 37 percent plan to remain with their current employers. Employers might find Generation Y a little stickier when it comes to retention but even then 44 percent plan to stay put over the next year.
Employee retention isn’t the only thing that executives and employees appear to disagree on. When asked to rank their top three retention tactics, employees chose in every instance different non-ﬁnancial incentives than the executives. Even greater differences existed when executives were asked to identify retention strategies that might appeal to different generations.
For instance, Gen Y and executives agreed that additional compensation and bonuses were effective. But that’s where agreement broke down. While 29 percent of the executives believe flexible work arrangements were what Gen Y wanted, nearly 4 out of 10 Gen Y employees said they wanted job advancement opportunities. Generation X wants a job with good wages but are only willing to stay if they can learn new skills too.
Like they’ve done many times in the past, Baby Boomers break the mold on retention strategies too.
Baby Boomers are looking for strong leadership, additional bonuses, and more compensation. Executives offer benefits, bonuses and flexible work arrangements.
Based on the results of this survey, executives are offering money and flexibility while the three most active generations in the workplace want opportunity, bonuses, and compensation. Executives need to learn that one size doesn’t fit all when it comes to employee retention and stop using the recession as their primary retention strategy.