TalentManaging talent in a turbulent economyKeeping your team intact Special Report on Talent Retention: September 2009
CConotnetnetnsts  1 Key fi ndings  2 Will companies be able to keep their teams intact?   4 Should I stay or should I go?   9 What it takes to retain the team 11 Talent winners will reconcile the tale of two mindsets 12 Survey participants/demographics 14 ContactsManaging Talent in a Turbulent Economy Survey Series This is a year-long longitudinal series conducted for Deloitte Consulting LLP by Forbes Insights surveying global executives across all industries, at large businesses worldwide in the Americas, Asia Pacifi c, and Europe, the Middle East, and Africa. The talent pulse survey research, as well as Deloitte’s position on the impending resume tsunami, has gained both U.S. and global recognition (e.g., USA Today, The Wall Street Journal, and Management Issues).Playing Both Offense and DefensePart one in the series, conducted in January 2009, surveyed 326 executives from businesses worldwide on how they are planning and managing their workforces in today’s challenging economic environment. The report was published in February 2009 and includes a spotlight focus on workforce planning and analytics.Read Playing Both Offense and DefenseNavigating a Course Through Rough Waters Part two in the series, conducted in March 2009, examined how 397 executives have changed strategic priorities and talent tactics since the initial January survey. The report was published in April 2009 and features a spotlight focus on talent and risk.Read Navigating a Course Through Rough WatersClearing the Hurdles to RecoveryPart three in the series, conducted in May 2009, focused on retention and continued to track and compare how 319 global business leaders have shifted their talent priorities and strategies since the January and March surveys. This report was published in July 2009.Read Clearing the Hurdles to Recovery
Key � ndingsA “resume tsunami” may threaten unprepared companies as key employees who held on to their jobs in tough times seek out better opportunities when economic fears re-cede. In anticipation, many executives and talent manag-ers have been shifting their priorities toward keeping their teams intact. But the priorities of employers do not always match the needs of employees, which could leave compa-nies blindsided when the talent market heats up again.Keeping Your Team Intact: A Special Report on Talent Retention—part of an ongoing longitudinal survey by Deloitte—compares the results of an August 2009 survey of employees at large enterprises worldwide with a May 2009 survey of international corporate leaders. The May survey revealed that many top executives and talent managers are already charging ahead with new workforce plans, identifying potential retention barriers and adopting new strategies to keep their core workforces together. But do executives really understand what it will take to retain key employees? Are companies implementing the tactics they need to keep key employees on board and com-mitted? And are corporate leaders ready for the effects of a potential resume tsunami that could hit when the economy turns? This special report reveals a number of critical disparities between what employees reported they want and what surveyed executives think employees want. These differ-ences suggest that many companies should reevaluate the turnover intentions of their key employees and revise the retention tactics they employ to keep top talent on the job. Among the key fi ndings and the related conclusions we have made: • Companies may struggle to keep their teams intact, as they risk losing many of their most valued employees when the global economy recovers. Nearly half (49%) of employees surveyed in August are either looking for a new job or plan to do so after the recession ends.  •A “tale of two mindsets” exists between employee desires and employer priorities. Corporate leaders and employees who participated in these surveys share little agreement when it comes to understanding which key employees are leaving, why they want to leave, and what it would take to keep them. Executives who believe they know what their employees want may need to rethink their assumptions.• While there is broad agreement over the effectiveness of compensation increases and other fi nancial incentives as retention tools, surveyed corporate leaders do not appear to understand the non-fi nancial priorities of their employees, such as the need for strong leadership, job security, effective communication, and career advancement opportunities. • Companies that build effective retention strategies tailor their tactics to account for generational differences. However, many corporate leaders may be misreading the priorities among different generations, leading employers to offer the wrong incentives to the wrong employees. Comparing survey participantsUnlike the other surveys in the Managing Talent in a Turbulent Economy series that asked corporate leaders about their companies’ talent strategies, this study is based on input directly from the talent themselves. Respondents to the August survey were predominantly salaried employees (40%), manag-ers (28%), hourly employees (6%), and part-time employees (4%). The May survey, by comparison, focused on business leaders and Human Resource/ Talent executives. Throughout this Special Report, respondents to the August survey are referred to as “surveyed employees” and respondents to the May survey are referred to as “surveyed corporate leaders.”As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. All survey data and statistics referenced and presented in this report, as well as the representations made and opinions expressed, unless specifi cally described otherwise, pertain only to the participating organizations and their responses to the Deloitte surveys conducted in May 2009 and August 2009.Special report on talent retention  September 20091
Will companies be able to keep their teams intact? Many employers are preparing for a post-recession resume To determine whether companies retention strategies and tsunami, when valued workers who may have stayed put tactics match the priorities of their workforces, Deloitte in down times start  ooding the market with CVs as the and Forbes Insights conducted a global survey of 368 economy improves. To reduce the risk of disruption that employees at large companies (annual revenues over $500 can come from high turnover, companies are devising and million) in the Americas, Europe, the Middle East and implementing retention strategies to hold on to the key Africa (EMEA), and Asia Paci c (APAC). In order to uncover talent they will need to prosper when the eventual recov-the retention barriers and most effective retention strate-ery comes. But do they really know what will succeed with gies for each generation, responses to this August survey their employees? were sought from employees in four key age segments: Generation Y (under 30); Generation X (30-44); Baby Boomers (45-64); and Veterans (65 and older). Nearly half (49%) of all surveyed Aplomteonstti ahl arlef souf malel  tssuurnvaeymeid employees may join ntehmeiprl jooybese.s are considering leavig icPsoe trnhhsiaadtp ensr eitnahrgel  yl emhaoavlsiftn  (gs4t rt9ihk%iein)r g oj of  banslld   iasnnugrd v ijenuy steth de4  e5Am%up gleuoxsypte esecustr  vtaoree ys  tay with their current employers (Figure 1). In fact, 30% are already actively seeking new employers—a fi gure that could rise as more employees venture into the job market once the recession ends. Figure 1. All respondents: Do you have plans to look for new employment?Don’t know6%Expect to stay with current employer45%Seeking/plan to seek new employment49%Special report on talent retention  September 20092
High turnover intentions represent a serious risk to em-Given their turnover intentions, it is not surprising that ployers  ghting to keep their top talent intact; academic many Generation X employees are already pounding the research indicates nearly 40% of employees are likely to pavement in search of new work. In the August study, act on their turnover intentions.1 Based on the responses 22% of surveyed Generation X employees indicated they of surveyed employees and this research, the resume have been actively seeking new employment over the past tsunami that could follow the current downturn may well 12 months, compared to 14% of surveyed Baby Boom-exceed previous post-recessionary trends. ers, 12% of surveyed Generation Y employees, and 5% of surveyed Veterans. Employees from Generation X and Generation Y represent the biggest turnover risks. Among surveyed Generation A tale of two mindsets: Do executivedtop X members, only 37% plan to stay with their current s an employer, while 44% of surveyed Generation Y members tealmepnlto ymeaesn athgeerys ihak vleo sai nggo oond che abnedtltee ro tni mwehsi cahr rive? expect to remain in their current job. At least half of the Not according t or sour August survey that reports that Baby Boomers surveyed (50%) and surveyed Veterans (52%) report they expect to stay with their current em-surveyed Generation X employees have the high-ployer (Figure 2). est turnover intentions. Three months ago, just 9% of surveyed corporate leaders expected voluntary turnover to increase signifi cantly among Generation X Figure 2. Respondents by generation: Do you have plans to look for new employment?employees in the 12 months following the recession, compared to 24% who expected an increase among I have been actively looking for new employment during Total respondentsGeneration Y. the past 12 monthsti YGeneraonI am currently seeking new Generation XemploymentBaby BoomersneI wp leamn ptloo ybemgeinnt  lowoitkhining  tfhoer  VeteransMore than one-� � h (22%) I plan tnoe xlto o1k2  fomro nnethws of surveyed Generation employrmeceensts iaoftne re nthdes X employees have been I expect to stay witho meyr actively job hunting currenDto enmt pklnyowover the past year.0%10%20%30%40%50%60%1 Griffeth, R. W., Hom, P. W., & Gaertner, S. (2000). A meta-analysis of antecedents and correlates of employee turnover:  Update, moderator tests, and research implications for the next millennium. Journal of Management, 26, 463-488.  Special report on talent retentionSeptember 20093