Promotions, bonuses can boost retention
A stronger economy may actually be fueling a growing concern among employers about retaining top talent, according to a new survey by Deloitte.
With the economy improving, nearly two out of three of the 356 employees surveyed said they are actively testing the job market, found Talent Edge 2020: Building the Recovery Together — What Talent Expects and How Leaders Are Responding.
When asked to list their top three retention incentives, 53 per cent of the respondents ranked promotion or job advancement first, followed by increased compensation at 39 per cent and additional bonuses or other financial incentives at 34 per cent. And 30 per cent said recognition from their managers was an effective retention strategy, found the survey.
“We’re living in a world where each generation in the workforce has vastly different goals, expectations and desires,” said Jeff Schwartz, a principal at Deloitte Consulting and United States talent services leader. “As employees eye the exit signs following a hard hitting recession, employers need to tailor and target their talent strategies to satisfy each employee group from baby boomers to millennials.”
Almost one-third (32 per cent) of baby boomers surveyed said a lack of trust in leadership is a top turnover trigger — the highest ranking by any workforce generation.
Citing lack of career progress as a top exit trigger (65 per cent), only 28 per cent of generation-X employees surveyed expect to stay with their current employers.
By a more than a two-to-one ratio (32 per cent versus 13 per cent), millennials regard their employers’ commitment to corporate responsibility and volunteerism to be very important, as compared to baby boomers. Millennials are also nearly three times more likely to say a fun work environment is important compared to baby boomers (55 per cent versus 19 per cent).
Employees who plan to stay with their current employers (35 per cent of respondents) said their companies have strong talent programs, characterized by clear career paths, leadership development initiatives, effective communication and trust.
“Firms can separate themselves from their competitors if they step up their talent programs now and refine their strategies to engage workers and to focus on specific employee needs,” said Schwartz.
