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:
"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:
However, the top five retention incentives for employees are primarily financial:
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