REWARDS AND TALENT MANAGEMENT
Majority of companies worldwide having difficulty attracting key talent
A vast majority of businesses worldwide are experiencing problems attracting the critical-skill and talented employees needed to help them prosper in the wake of the economic crisis, according to a new survey conducted by Towers Watson and WorldatWork. However, the severity of their difficulty in attracting these workers varies greatly from country to country as economic recovery is proving to be uneven in different regions.
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The survey also found that a majority of respondents said the cost-cutting measures that they took during the recession and financial crisis had an adverse impact on:
employees’ workloads
their ability to manage work-related stress
overall employee engagement.
As a result, companies are beginning to re-evaluate their reward and talent management programmes, and how they attract, retain and motivate employees. “The business climate has clearly affected both the supply and demand of talent, and companies’ ability to attract and hire talented employees,” said Laura Sejen, global head of rewards consulting at Towers Watson. “Even in relatively soft economies, top employees are in short supply. Add to that, workers today simply are in no rush to seek employment elsewhere, given the uncertainty over economic recovery. As a result, many companies find themselves in a position of having to find new and innovative ways to entice and ultimately develop talent and leadership for the future.”
Key survey results
65% of companies globally and 52% of US companies reported problems attracting critical-skill employees.
61% of companies globally and 45% of US companies reported similar difficulty attracting top-performing, talented employees.
Companies in most regions reported having less difficulty retaining employees than they do attracting them.
Globally, only 21% of companies are having difficulty keeping employees generally, while just 11% of US firms reported problems holding onto employees.
Impact of cost cutting on employees
The economic crisis prompted many companies globally to implement cost-cutting activities – including hiring and salary freezes, layoffs and bonus reductions – although there were significant regional differences in the nature and extent of those actions. US companies took the most aggressive measures, with more than 60% implementing at least four cost-cutting actions.
But these cost-cutting steps took their toll on workers:
As many as 61% believe their cost-cutting actions increased employees’ workloads.
Exactly half also said these measures had a negative impact on employee engagement and workers’ ability to balance their work and personal lives.
“This study is a good reminder that employers need to reassess their employee value proposition to key in on those factors, both tangible and intangible, that would make them attractive to recruits,” said Ryan Johnson, vice-president of Publishing and Community for WorldatWork. “This is even more critical when luring top talent for leadership roles.”
Increased focus on talent management
The survey noted that organisations are likely to increase their talent management emphasis in leadership, succession planning and career pathing over the next three years.
When asked what their top talent management priorities were:
62% of companies globally responded “ensuring the readiness of talent in critical roles”.
60% said increasing the “investment in building an internal pipeline of talent was a top priority”.
51% ranked “creating more movement, rotation and development opportunities for talent” as a top priority.
“Leadership development is getting a lot of attention in the United States, and rightfully so,” said Laurie Bienstock, North America rewards practice leader at Towers Watson. “For companies that reduced the number of management layers, advancement opportunities have become fewer, and the gaps and complexity between levels have increased, making it significantly more difficult for companies to ensure leaders are prepared to effectively take on new and larger roles.”
Want to know more?
Title: Global Talent Management and Rewards Survey 2010, Towers Watson in association with WorldatWork.
Survey details: The survey was conducted in May and June of 2010, and includes responses from 1,176 companies from 23 countries, including 314 companies from the United States. The participants represent a wide range of industries and come from a broad cross section geographically.
Availability: For additional information about the survey, visit www.towerswatson.com/talent-management-rewards.
Towers Watson is a “leading global professional services company that helps organisations improve performance through effective people, risk and financial management”. The company offers solutions in the areas of employee benefits, talent management, rewards, and risk and capital management. Towers Watson has 14,000 associates around the world and is located on the web at www.towerswatson.com.
The total rewards association WorldatWork is a "global human resources association focused on compensation, benefits, work-life and integrated total rewards to attract, motivate and retain a talented workforce". Founded in 1955, WorldatWork provides a network of more than 30,000 members in 100 countries with training, certification, research, conferences and community. To find out more visit www.worldatwork.org.