What a difference a year makes. According to Deloitte's new global talent survey published today, four out of five (80%) employees plan to stay with their organizations over the next year. That's a significant shift from last year when nearly two out of three (65%) were planning to leave.
With unemployment still high and the global economic recovery stalled, a "resume tsunami" has been reduced to what Deloitte calls a "resume riptide." This change should not however, give companies any sense of security regarding their talent and retention strategies. Deloitte warns that even as more employees appear to be staying put, top performers are also those with the most employment opportunities.
"Instead of addressing broad concerns over high turnover rates, employers now face a more targeted challenge," said Bill Pelster, principal and U.S. Talent Services co-leader, Deloitte Consulting LLP. "Companies must adjust their talent management initiatives to focus on retaining employees with the critical skills required to advance their business in today's turbulent marketplace, as they pose the biggest flight risk."
Deloitte teamed with Forbes Insights for its fourth report in the Talent 2020 series, surveying employees across major industries and global regions.
Based on the results and Deloitte's analysis of the talent market, Deloitte identified three emerging trends:
- Engage employees with meaningful work or watch them walk out the door. Employees value meaningful work over other retention initiatives. A majority (42 percent) of respondents who have been seeking new employment believe their job does not make good use of their skills and abilities.
- Focus on turnover "red zones." Employee segments at high risk of departure, or "turnover red zones," are employees with less than two years on the job and Millennial employees (those aged 31 and younger).
- When it comes to retention, leadership matters. More than six in ten employees (62 percent) who plan to stay with their current employers report high levels of trust in corporate leadership.
"Retaining key employees is not simply a human resources function," said Pelster. "Instead, retention starts with the C-suite and extends through virtually every level of management, down to line managers and supervisors. Strong leadership is one of the most important factors in differentiating between an employee who is committed to their current job and one who is constantly searching for the next career opportunity."
Who is leaving and how do companies hold onto key employees?
Interestingly, the incentives to get employees to stay are not exactly the same as the factors that would cause them to leave. According to the survey, the top five reasons people seek new employment are primarily non-financial:
- Lack of career progress (27%)
- New opportunities in the market (22%)
- Dissatisfaction with manager or supervisor (22%)
- Lack of challenge in the job (21%)
- Lack of compensation increases (21%)
However, the top five retention incentives for employees are primarily financial:
- Additional bonuses or financial incentives (44%)
- Promotion/job advancement (42%)
- Additional compensation (41%)
- Flexible work arrangements (26%)
- Support and recognition from supervisors or managers (25%).
Other factors such as trust in leadership, effective communication and a company's ability to execute on its strategy can also differentiate between an employee who is committed to his or her current job or an employee who is searching for the next opportunity.
Additional survey findings and key takeaways
- Generation X employees are the most active in the talent market and Millennials are advancing up the career ladder the quickest.
- In terms of employee turnover, the Financial Services industry runs the highest risk of losing talent, with 25 percent of employees expressing turnover intentions over the next 12 months. Closely behind are Technology, Media and Telecommunications (23 percent) and Life Sciences and Health Care (23 percent).
- Workers in the Energy and Resources industry express the most satisfaction with their jobs, with 78 percent agreeing that "overall, I am satisfied at work."
- Employees in Europe, the Middle East and Africa are less satisfied with their jobs compared to those in Asia Pacific and the Americas.