Posts Tagged ‘employee retention’
For those businesses just about ready to hit the reset button and pick up where you left off in 2007, STOP! This is not your grandfather’s workplace anymore.
Once upon a time, work was about getting a paycheck – a way to put food on the table and a roof over your family’s head. Health care benefits, vacation pay, and other perks were exceptions not the rule. Sundays were a day off to rest, pray, and recoup for next week’s work. That changed with the formation of guilds and later labor unions, when the process of representation for the workers began in the hopes of achieving fair wages and reasonable work schedules.
But thanks to a recession and a world marketplace where dramatic change occurs in months not decades, the definition of work and what constitutes quality of life has been indelibly altered. Welcome to Talent Management 2011!
Recruitment and retention strategies that were considered best practices and highly competitive just a few years ago are now ineffective and even detrimental. New pressures coming from aging demographics, globalization, and technology are turning workplaces upside down and inside out. In fact, it’s even hard to tell anymore who is working when and where. Many traditional workplaces of the past are gone – caput. Others have gone virtual, invisible to the passerby but very real in terms of productivity and profitability. And for the first time in history, four generations are working side by side all but killing one-size-fits-all recruitment and retention strategies.
All these changes – both gradual and dramatic – have converged to put many companies at risk for losing their top talent. New and innovative talent strategies must be put in place to position companies for success.
Executives confirmed this need to change in a recent Deloitte survey and white paper titled Talent Edge 2020. Forty-one percent of executives said “competing for talent” was a top concern, followed by developing leaders and succession planning (38%), and retaining employees at all levels (37%). Severe talent shortages are expected over the next year in Research & Development (34%), executive leadership (25%), and sales (19%). Even positions like customer service and marketing are expected to be tough to fill positions with severe shortages, 19 percent and 16 percent respectively, expected by executives.
The executives and senior talent managers who participated in this survey clearly recognize the importance of developing a strategy to retain key employees. Over the next twelve months, nearly seven in ten executives surveyed (68%) reported they have a high (39%) or very high (29%) level of concern about retaining critical talent. Another six in ten (64%) have a high (40%) or very high (24%) fear of losing high-potential talent and leadership.
The problem is most of the companies surveyed, by their own admission, are not doing a very good job of holding onto key employees. Worse, many do not even have a clear understanding about what factors are driving voluntary turnover at their organizations. With a return to some economic normalcy and the well-documented skills shortage among applicants, the need to recruit for new openings will be hard enough without having to replace the home-grown talent pipeline.
While the white paper highlighted numerous best practices, one stood out: “Companies differentiate themselves by culture, compensation and future opportunities…and deploy different strategies to appeal to different generations.”
The executives broke down their most effective retention initiatives as follows (each generation listed by priority rank):
Veterans (over age 65)
- Additional bonuses or financial incentives (25%)
- Additional benefits (health and pensions) (24%)
- Flexible work arrangements (20%) - Corporate social responsibility (20%)
Baby Boomers (ages 45-64)
- Additional benefits (health and pensions) (26%)
- Additional bonuses or financial incentives (23%)
- Additional compensation (21%) – Strong leadership/organizational support (21%)
Generation X (ages 30-44)
- Additional bonuses or financial incentives (21%)
- Additional compensation (19%) – Strong leadership/organizational support (19%)
- Customized/individualized career planning (18%) – Succession planning (18%)
Generation Y (under age 30)
- Company culture (21%)
- Flexible work arrangements (20%)
- New training programs (19%) - Support and recognition from supervisors or managers (19%)
Recruitment and retention of critical talent is sure to stay on the radar of executives for years to come as shortages and losses of skilled workers deepen. As a result, an effective talent management program becomes a much sought-after competitive advantage as less than one company in five participating in the Talent Edge 2020 survey could describe themselves as “world class.”