Apparently you are not alone. The latest study from Towers Watson (Global Talent Management and Rewards Study 2014) Shows that employers “are finding it difficult to get and keep key talent, including top performers and high-potential employees”. It is also proving more difficult to attract employees with “critical skills”. The ability to attract and retain good people is essential to help business perform well and increase productivity. Part of the problem, according to the report, is that employers are not getting “the employment deal” right. This is important in a market with high rates of employee turnover.
So what is the right “employment deal” ?
Firstly, it is not a “one size fits all” model. The report states “to foster sustainable engagement, organizations must get the employment deal right – that is , they must offer and deliver an employment deal that is formally articulated, is tailored to different workforce segments and sets an organization apart from its competitors.” The report shows that “employers don’t always understand the rewards workers value most, which can make it difficult to develop a winning employment deal.” While employees do value base pay and job security as reasons to take a job, the three most important reasons they stay in a job are base pay, career advancement, and trust/confidence in senior leadership. Employers “underestimate the role senior leadership plays in helping retain employees.” These points must be addressed if good employees are to be retained. Another problem is that the “real” deal often does not match up to what is promised with less than half employees globally say employers deliver on their promises.
According to the report almost 40% of “high potential workers” feel they will have to leave their organization to advance their careers. Most employees in the survey (61%) felt senior management were not doing well at developing future leaders. This needs to be a priority to retain good employees and to meet the challenges of the challenging business environment of today and tomorrow. The report states that “an effective leadership development program can be a source of competitive advantage by helping organizations retain and engage key employees as they develop leadership competencies. This is one way in which organizations can achieve a better return on their talent investments”
Taking a long term focus is also recommended when considering “development opportunities” to help improve a sense of job security and aid retention. Providing employees with skill development and career management programs will not only increase employee productivity but also “add value” in current as well as future roles. This adds to the sense for the employee that they are valued and the organization is willing to invest in their development. This will investment will pay back to the organization by building a reserve of skilled and effective leaders to draw on in the future.
OVER TO YOU!!
- How does your organization “measure up” on these issues?
- What is your “employment deal” and does the “real deal” match up with the promises?
- How are you developing your future leaders?
- Do your best people have to leave to advance their career?
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