BEST PRACTICES: Strategic management of talent

Employee mobility

Employees are on the move, and most do not place much value on a long-term relationship with a particular employer. The study shows that job-hopping no longer carries the stigma it once did. Among the employees surveyed, 60 percent say there is no "appropriate" length of time to stay in a job. Only 10 percent cite "3 to 5 years" as an appropriate tenure before moving on. "Company and individual self-preservation are higher values than long-term loyalty," Walker observed.

According to the research, 56 percent of employees are either actively or passively looking for a job, and this has not changed post 9/11. Those in the 18-29 age bracket are twice as likely to be actively looking, while 30-44 year olds are most likely to be passively looking (open to a better opportunity if one presents itself). From the employer's perspective, these are frightening numbers.

Walker believes that people are looking because they can-the Internet allows employees to research jobs with ease and maintain a certain level of anonymity.

What are they looking for? The study also examined the components of a job offer that are most likely to woo employees away from their current jobs. While there are variances based on age, competitive pay and health benefits are core to the consideration of new opportunities. Only after those two elements are satisfied do other factors, like promotional opportunities and work/life balance, come into play.

Employee engagement

Once you've attracted the best people to the organization, how do you motivate them to do their best work? According to Towers Perrin, using a four-pronged total rewards framework (pay, benefits, learning and development,and work environment) is critical when thinking about employee engagement.

It seems that the things that attract people to a company-namely pay and benefits-are not necessarily the things that engage them to perform. In fact, the study identified the following 10 drivers of employee engagement:

• Reputation in the job market as a good employer;

• Supporting teamwork;

• Clarifying what the company expects and what employees can expect in return;

• Providing recognition for talented employees;

• Developing the skills of employees;

• Senior leadership effectiveness;

• Advancing talented employees;

• Understanding the unique needs of high performers;

• Helping employees understand how their performance impacts the company's business goals; and

• Supporting innovation.

Retention

While the keys to retention are similar to those that drive engagement, there are some differences. According to Walker, items like competitive pay are back on the table when speaking of retention. For engagement, it is important for employees to understand the performance aspects of pay, but for retention, it goes back to the pay itself.

"If employees can see that the right people are getting promoted and the right people are being put in leadership positions, they are much more likely to stay with you," Walker explained. In order of importance, the 10 key drivers of effective retention are:

• Developing the skills of employees;

• Understanding the unique needs of high performers;

• Providing competitive base pay;

• Aligning HR programs to meet the business objectives;

• Clarifying what the company expects and what employees can expect in return;

• Developing leaders;

• Advancing talented employees;

• Senior leadership effectiveness;

• Fully tapping into employees' skills and abilities; and

• Supporting teamwork.

To reach Al Walker or others at Towers Perrin, call 973-331-3542

<p>A lot has happened over the past year—the horrific events of September 11th, the human and financial loss that resulted, a slowing economy and resulting layoffs</p>

BEST PRACTICES: Strategic management of talent

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