8 signs talent retention strategies are faltering - americas ebook
TRANSCRIPT
signs talent retention strategies are falteringkelly Global workforce index™8michael s. webster
the americas: canada, United states, PUerto rico & mexico
2Kelly Global Workforce Index™
Over the past three years, employees’ intentions to leave
their current jobs have risen more steeply in the Americas
than anywhere else in the world.
Just three years ago, when the first significant effects of
the great recession were being felt, employee retention
in the region was the highest in the world. Now, it seems
employees are taking their careers into their own hands.
They’re reporting high levels of dissatisfaction, but it’s not
the trivial kind. Rather, they appear to be searching for
organizations that will embrace their potential, provide
them with consistent challenges, and this—far more than
higher salaries or better benefits—is the reward they are
seeking in spite of economic uncertainty.
talent retention sUffers a setback in the americas
They want meaning in their work. Today’s employees
want to feel valued and they want to be challenged. Few
organizations appear to be meeting the mark on these
fronts, and employees are not overly optimistic about
their ability to influence this change within their current
organization. Instead, they’re carefully planning their
next career move with an eye on attaining new skills and
broader experience, which they hope will shore up their
future employment prospects.
To some degree, these patterns are similar across
the globe. Of 170,000 employees surveyed across 30
countries, two-thirds are planning to switch organizations
within the next year. Yet, employees in the Americas have
bucked this trend in the past. Now, they’re falling in line
2Kelly Global Workforce Index™
and looking to careers with multiple organizations, where
the skills and quality of the work they engage in is the key
driver of satisfaction.
In many ways, the results we see emerging over the
next year are simply an intensification of a longer term
trend that’s been building for some time. Declining
satisfaction and meaning at work is reaching a natural
crescendo—and it’s hardly assisted by ongoing market
turmoil and the quickening pace of change. Now, it’s
up to HR professionals, hiring managers and senior
leaders across the region’s organizations to respond,
and respond decisively.
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Employees in the Americas have seen the greatest
upswing in voluntary, planned attrition intentions, with
an increase of some 20 percentage points over the past
three years. Other regions report unchanged, or only
slightly elevated, results on this front.
This year, two-thirds of workers in the Americas
(67%) say they intend to look for a job with another
organization, compared with just 45% in 2009. In
Mexico, this figure is among the highest in the world,
with almost three-quarters of workers (74%) planning
a career move this year. Canada is also higher than
the global average at 69%, and the U.S. is just slightly
lower at 62 percent. Puerto Rico is the lowest within the
Americas, and significantly below the global average.
It appears that employees plan to move organizations
as part of a broader career strategy, perhaps in
response to decreasing career prospects in their current
role and the need to acquire new skills in a rapidly
evolving market.
1 / VolUntary attrition increases sharPlyMany more employees are looking to move organizations than they were three years ago—a result that puts the Americas in line with a strong global trend.
69% 74% 58% 62%
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United StatesPuerto RicoMexicoCanada
Job Switching AMERICASjob switchinGdo you intend to look for a job with another organization within the next year? (% yes, by region)
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Fewer employees in the Americas feel the “I quit” urge
than those in other parts of the world, yet more have
already planned to leave for strategic reasons. It’s not
sudden dissatisfaction that’s driving people’s intent to
move on, but something more complex.
Above all, employees are seeking greater opportunities
to develop and excel in their field. They want to use
more of their existing skills and experience, and they
want a genuine challenge. However, few employers
appear to be offering it.
More than one-third of respondents globally (37%)
say they frequently think about quitting their job and
leaving their employer. This is considerably lower in the
Americas where fewer than three in ten people (28%)
frequently feel like quitting their job. Across each of the
regions within the Americas this result is similar, with
Puerto Rico again significantly below the regional and
global average.
2 / exits are now well-Planned, strategic decisionsWhile voluntary attrition plans are on the rise, unplanned exits driven by personal frustration are low.
“i quit!”do you frequently think about quitting your current job and leaving your employer? (% yes, by region)
29% 27% 22% 28%
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United StatesPuerto RicoMexicoCanada
I Quit! AMERICAS
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In the Americas, just half of employees (50%) feel that
they have a sense of ‘meaning’ in their work. While
both Canada and the U.S. report lower levels of
‘meaning’ in their work than the global average, more
than three-quarters of people in Mexico (77%) feel they
have genuine job fulfillment.
The issue of ‘meaning’ is closely linked to how happy
employees are in their jobs. Employees in both Canada
and U.S. report low levels of happiness—just 47% and
48% respectively, while 58% in Puerto Rico and 71%
of those in Mexico say they are happy with their job.
So it seems that while some people can have meaning
without happiness and vice versa, for most the two
issues are linked.
3 / lack of ‘meaning’ at work is eroding satisfactionHappiness at work comes from a sense of meaning and achievement—without it employees are looking elsewhere in spite of economic uncertainty.
job fulfillmentdoes your current employment provide you with a sense of “meaning”? (% yes, by region)
42% 77% 58% 42%
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United StatesPuerto RicoMexicoCanada
Job Fulfillment AMERICAS
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While many in Mexico still believe in the concept of one
employer for life (66%), which is well ahead of those
who still hold this view in Canada and the U.S. (38%
and 45% respectively), it seems it is becoming less and
less likely in reality. Most employees now believe that
staying with a single employer is a limitation on their
career prospects.
In the U.S., some 60% of workers feel that gaining
experience with multiple employers is an asset to their
careers, as do 64% of workers in Canada, and 74% of
those in Mexico.
4 / they belieVe haVing mUltiPle emPloyers is an adVantageWhile some still believe its possible to have one employer for life, most see multiple employers is a career asset.
one employer for lifeto what degree do you agree or disagree that a “career-for-life” with one employer is relevant? (total ‘agree’)
38% 66% 54% 45%
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United StatesPuerto RicoMexicoCanada
One Employer for Life AMERICAS
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People in both the U.S. and Canada align with the
global trend of not intending to share their quitting
plans with their employers—just 29% in both countries
say they would do so. However, employees in Mexico
and Puerto Rico are significant outliers on this count.
Almost half (44% and 46% respectively) say they would
share their intentions with their employer in the hope
that it will result in changes or counter-offers that will
enable them to stay put.
While there are large differences across the region, a
large number of employees seem set on their plans
to move organizations regardless of their managers’
response to their resignation. Given that most counter
offers are usually just a rise in pay, employees are again
indicating that financial incentives are not the only kind
of change they’re looking for.
5 / coUnter offers are Unlikely to change their mindsFew employees are keen to have an open dialogue with their employers about their desire to move on, which signals their minds are already made up.
likely to share quittinG planshow likely are you to share your potential plans to move to another organization with your employer, with the thought that this may result in changes that may motivate you to stay? (total ‘likely’, by region)
29% 44% 46% 29%
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Likely to share quitting plans AMERICAS
8Kelly Global Workforce Index™
Just 45% of employees in the Americas say they feel
valued by their current employer.
The sense of being valued is lowest in the U.S. (42%)
and considerably higher in Mexico and Puerto Rico
(both 53%) with Canada sitting in the middle at
46 percent.
Many employees across the region also report that
their full potential is not being realized by their current
employer. Just 31% of employees in Puerto Rico, 29%
in Canada and 28% in the U.S. feel they are maximizing
their abilities in their current role. In Mexico this figure
is significantly higher at 39%, but still well short of
representing a full engaged and utilized workforce.
6 / few emPloyees feel ValUed or fUlly Utilized
29% 39% 31% 28%
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United StatesPuerto RicoMexicoCanada
Realising potential AMERICASrealisinG potentialdo you feel that our current employer is realising the full benefits of your potential? (% yes, by region)
9Kelly Global Workforce Index™
When asked about what drives the decision to accept
one role over another, personal fulfillment and personal
growth/advancement accounts for around eight in every
10 responses. In Puerto Rico, these two factors account
for slightly less (70% of responses), while in the U.S they
account for 74% and 80% in Canada. In Mexico, 85% of
people say these two factors are the main reasons for
accepting one job over another.
When asked which factor makes them feel more
committed and engaged with their current job,
‘more challenging and interesting work’, and ‘more
meaningful responsibility’ accounted for the majority of
responses—well ahead of higher salaries and benefits.
In the U.S this accounted for four in ten responses
(40%), in the Canada the proportion was 46%, in
Mexico it was 43%, and lowest in Puerto Rico (37%).
7 / they want Personal fUlfillment and to be challengedWhat really keeps employees engaged— enjoyable and challenging work—is often difficult for managers to respond to.
factors that drive job choicewhich of the following factors would drive your decision to accept one job/position over another? (by region)
Factors that drive job choice
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Personal fulfillment/growth/advancement Compensation/benefits
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Compared to the global average, fewer people in the
Americas expect any form of reward for a job well done.
This is highest in the U.S., with more than one-quarter
of people (26%) saying they don’t require a specific
performance reward, and significantly lower in Mexico
at 13 percent.
The significant differences across all countries and
regions points to the fact that rewards and incentives
are very personal. Having a one-size-fits-all approach
is likely to miss the mark, as none of the suggested
performance rewards can claim to meet the desires of
the majority of any worker population.
8 / their desire for reward is Personal Don’t assume all employees are looking for a raise—it’s usually more complicated than that.
rewardinG performancewhat is your preferred way of being rewarded for good performance at work (by region)
Rewarding Performance Americas
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Financial Bonus None required
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A strong, global pattern has emerged in talent retention.
Most people are planning to switch organizations within
the next year, and they have clear, strategic reasons why
they’re doing so.
Few feel that their current organization is accessing their
potential, which inevitably throws up a negative cycle: as
one employee leaves to pursue their potential, another
arrives in their place with the same goal. It seems both
will get what they seek for the short term and then the
cycle will repeat, leaving HR and hiring managers to pick
up the pieces and consistently plug skill gaps.
Instead of being locked into an endless, vicious cycle, HR
professionals, hiring managers and senior leaders in the
region should look to:
• Giveemployeesavoiceinhowthey’rerewarded:
don’t assume a bonus will always be top of the list.
Consider other projects, skills and responsibilities that
staff can be exposed to should they reach their high-
conclUsion
performance target. After all, large numbers of people
say that challenging work helps to keep them engaged
in their job.
• Commitresourcestodocumentingandkeeping
track of employees’ skills: few employees feel their
full potential is being utilized in their role. This is a
poor outcome for both employee and employer. Some
of this is simply that managers and HR departments
do not always have a clear view of the skills that
each employee has, and as a result they fail to be
proactive about helping employees use these as new
opportunities arise.
• Findwaystomoveemployeesinternally: for most
employees, the idea of an employer for life is outdated
and instead they actively seek new employers to
access and develop new skills. This can be provided
internally, but is likely to fail if the entire process relies
on managers. Allowing employees to choose projects
and make a case for being part of them, as well
encouraging other departments/managers and teams
to seek skills internally, will increase development and
growth opportunities for internal talent.
• Focusonwaystodemonstratetheoutcomesand
contribution of each employee’s role: meaning
at work is critical to engagement and satisfaction,
so finding ways to demonstrate the ways in which
each role contributes to overall outcomes is key to
retention and productivity. Team recognition is fine,
but individuals (particularly highly talented ones) want
to see how they impact results too, and this means
finding ways to measure and report on it.
• Makethemostofcontingentworkers:around
one-third of most workforces are now made up of
contingent labor, and these workers need to be kept
engaged, motivated and rewarded too. This highly
skilled group offers a wealth of potential, but if it’s
not being used, they’re more likely than others to
move quickly.
11Kelly Global Workforce Index™
Kelly Global Workforce Index™
aboUt the aUthor
MIchael S. WebSter is executive vice president and general manager, americas, for Kelly Services.
Prior to joining Kelly, Mr. Webster worked for nearly 20 years at Ge Plastics, last serving as general manager
of the company’s North central region. Mr. Webster holds a bachelor’s degree in business administration
from West Virginia University.
methodology
The Kelly Global Workforce Index was open to respondents around the globe and took the form of a questionnaire on the Kelly
Services website. Data was collated and analyzed by RDA Group. A number of questions have remained consistent over the course
of the survey and allow time-series analysis.
aboUt kelly
Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions. Kelly® offers a comprehensive array of
outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire and direct-hire basis. Serving
clients around the globe, Kelly provides employment to more than 550,000 employees annually. Revenue in 2011 was $5.6 billion.
Visit www.kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter.
exit
download your free copy today.
This ebook is extracted out of the report Acquisition
and Retention in the War for Talent.