Eighty per cent of employees plan to stay with their organisations over the next year, a significant increase from 2011 when nearly 65% were planning to leave, according to Deloitte’s new global talent survey .
The Talent 2020 report found 46% of the survey respondents are less inclined to move because, in the last 12 months, they have changed jobs (9%), were promoted (22%), or have taken new positions (15%) with their current employers. However, nearly one-third (31%) say they are not satisfied with their jobs.
Dimple Agarwal, lead partner for organisation design and talent at Deloitte UK, said: “Instead of addressing broad concerns over high turnover rates, employers now face a more targeted challenge. 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:
– Employees value meaningful work over other retention initiatives. A majority (42%) of respondents who have been seeking new employment believe their job does not make good use of their skills and abilities;
– 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);
– More than six in 10 employees (62%) who plan to stay with their current employers report high levels of trust in corporate leadership.
Agarwal added: “Retaining key employees is not simply a human resources function. 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.”
Talent 2020 gives insights into why employees are leaving organisations, and how companies hold onto key employees.
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.