Deloitte’s Talent 2020 report has revealed that 80% of employees plan to stay with their company over the coming year, which is a turn-around from the findings in 2011 when 65% stated they were planning to leave their organisation.
Forty-six per cent of the survey respondents indicate they 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. Surprisingly, however, nearly one-third (31%) say they are not happy with their jobs.
The Deloitte report warns organisations’ that top performers are those with the most employment opportunities and as a result companies should not neglect their talent and retention strategies just because it appears that employees are staying put.
Lead Partner for Organisation Design and Talent at Deloitte UK, Dimple Agarwal, 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.”
Financial incentives are the most cited reasons for employees’ continuing in their current roles with 44% saying additional bonuses is the biggest retention factor. This is followed closely by promotion and job advancement (42%) and additional compensation (41%).
In contrast, the greatest reason for people seeking new employment is lack of career progress with 27% citing this. New opportunities in the market and dissatisfaction with manager are behind 22% of respondents looking for a move, while 21% cite a desire for a new challenge being the main issue.
The survey also found that the financial services industry runs the highest risk of losing talent, with 25% of employees expressing turnover intentions over the next 12 months. Closely behind are technology, media and telecommunications (23%) and life sciences and healthcare (23%).
Based on the results Deloitte identified three emerging trends:
* Employees value meaningful work over other retention initiatives. The biggest group (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 are employees with less than two years on the job and 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.
Following the findings, Dimple Agarwal, said:
“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.”