Economic turbulence has created the talent paradox: 80% will stay with current employer in the next year: Deloitte Survey
Yet employers still face challenges filling technical and skilled positions
New York, 13 September 2012 — Though high unemployment persists and the global economic recovery remains halting and uneven, the “résumé tsunami” appears to have been reduced to a “résumé riptide.” According to the new global talent survey from Deloitte Consulting LLP in the United States (Deloitte) and Forbes Insights, Talent 2020: Surveying the talent paradox from the employee perspective, four out of five (80%) employees surveyed report that they plan to stay with their organizations over the next year—a significant 45-point swing from 2011, when nearly two in three employees surveyed (65%) were planning on leaving their organizations.
However, according to the survey, in the last 12 months 46% of surveyed employees have moved to new jobs (9%), received a promotion (22%), or changed roles (15%) with their current employers—all factors that might make them less inclined to move during the next 12 months. Yet nearly one-third (31%) of surveyed employees report they are not satisfied with their jobs.
Deloitte first uncovered this modern contradiction from the employer side in the January 2012 issue of Deloitte Review with “The talent paradox: Critical skills, recession, and the illusion of plenitude.” In this latest Talent 2020 report, Deloitte turns its focus to the employee perspective on the talent paradox.
As more employees appear to be sitting tight in their current positions, companies may be tempted to neglect their talent and retention strategies out of a false sense of security that their employees are here to stay. However, the report warns that companies’ most critical employees are also those with the most opportunities for movement.
“Developing and retaining top talent is essential to sustaining future competitiveness, and a continued investment in the personal and professional growth of its people should be a primary focus of any organization aspiring to become a market leader,” said Lisa Barry, Talent, Performance and Reward Leader, Deloitte Touche Tohmatsu Limited (DTTL).
Based on the survey results and Deloitte’s analysis of the talent market, Deloitte identified three emerging trends:
• Engage employees with meaningful work or watch them walk out the door. Employees value meaningful work over other retention initiatives. A majority (42%) of respondents who are seeking new employment believe their job does not make good use of their skills and abilities.
• Focus on turnover “red zones.” Employee segments at high risk of departure, or “turnover red zones,” either have less than two years on the job or are Millennial employees (those aged 31 and younger).
• When it comes to retention, leadership matters. More than six in 10 employees (62%) who plan to stay with their current employers report high levels of trust in corporate leadership.
“As employee expectations of business continue to grow, employers should keep a watchful eye on the latest employee attitudes and emerging talent trends,” said Brett Walsh, Global Human Capital Leader, DTTL. “Specifically, businesses may want to adjust their talent management initiatives to focus on retaining two workforce segments: employees with critical skills who are at a high risk of departure, and the capable leaders who can advance their companies despite continuing global economic turbulence.”
This edition of the Talent 2020 report reveals significant shifts in the talent market over the past year, particularly when it comes to turnover intentions. In order to help corporate leaders retain top talent, Deloitte recommends increasing a company’s focus on utilizing and developing employee skills, emphasizing and rewarding authentic leadership, and fostering an environment with effective, transparent communication.
About the survey
Talent 2020: Surveying the talent paradox from the employee perspective is the fourth in a series of talent reports. Talent 2020 is a follow up to the Managing talent in a turbulent economy longitudinal talent survey series. This survey was conducted in collaboration with Forbes Insights to explore the changing priorities and needs of employees at global and large national companies. This report features results from a survey that polled 560 employees of large businesses in the Americas, Asia Pacific, and Europe, the Middle East, and Africa across a range of major industries. For more information please visit www.deloitte.com/talent2020.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte's approximately 195,000 professionals are committed to becoming the standard of excellence.
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ii “Foreign Direct Investment in Latin America and the Caribbean 2010,” 4 May 2011, Economic Commission for Latin America and the Caribbean, 11 July 2012.