As the economy begins to improve, employers across the board are finding it increasingly difficult to retain key talent, those employees who are the strongest performers, have high potential or are in critical jobs. A recent study by WorldatWork, Hay Group and Dow Scott, Professor of Human Resources at Loyola University Chicago, titled “Retention of Key Talent and the Role of Rewards,” found that a majority of respondents (83 percent) view turnover of key talent as very costly to their organization.
Survey participants reported that the most significant reason key talent quits is to earn better pay elsewhere. Other reasons include a lack of promotional opportunities, the perception that pay is unfair and dissatisfaction with job and work responsibilities.
“Talent wars are going to become intense, not just this year but for the foreseeable future, because jobs are becoming more complex and demanding, Baby Boomers are retiring and Generation X has far fewer people who can fill this gap.” said Scott.
Tom McMullen, North America reward practice leader for Hay Group, said, “If a company is to thrive in the next decade, they must learn how to recruit, develop and retain key talent in a much more competitive and transparent competitive environment.”
The most effective methods for retaining key talent include identifying key employees and discussing with them their future opportunities with the organization, paying key employees above the labor market and allowing for more flexible work schedules.
“Rewards professionals are under increased pressure to make counteroffers, increase new-hire offers, and offer special deals to retain key employees,” said Kerry Chou, a certified compensation professional and practice leader at WorldatWork. “The most successful organizations moving forward will be those that develop a clear definition of what is considered key talent, identify them and make a concerted effort to ensure that those employees are engaged with their organization and satisfied with the full range of organization rewards.”
Data for this collaborative study was gathered through a survey of 526 participants, conducted between Dec. 15, 2011 and Jan. 15, 2012. Respondents were gathered from private sector-publicly traded, private sector-privately held and not-for-profit companies.
Survey participants reported that the most significant reason key talent quits is to earn better pay elsewhere. Other reasons include a lack of promotional opportunities, the perception that pay is unfair and dissatisfaction with job and work responsibilities.
“Talent wars are going to become intense, not just this year but for the foreseeable future, because jobs are becoming more complex and demanding, Baby Boomers are retiring and Generation X has far fewer people who can fill this gap.” said Scott.
Tom McMullen, North America reward practice leader for Hay Group, said, “If a company is to thrive in the next decade, they must learn how to recruit, develop and retain key talent in a much more competitive and transparent competitive environment.”
The most effective methods for retaining key talent include identifying key employees and discussing with them their future opportunities with the organization, paying key employees above the labor market and allowing for more flexible work schedules.
“Rewards professionals are under increased pressure to make counteroffers, increase new-hire offers, and offer special deals to retain key employees,” said Kerry Chou, a certified compensation professional and practice leader at WorldatWork. “The most successful organizations moving forward will be those that develop a clear definition of what is considered key talent, identify them and make a concerted effort to ensure that those employees are engaged with their organization and satisfied with the full range of organization rewards.”
Data for this collaborative study was gathered through a survey of 526 participants, conducted between Dec. 15, 2011 and Jan. 15, 2012. Respondents were gathered from private sector-publicly traded, private sector-privately held and not-for-profit companies.
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