talent edge 2020 building the recovery together

7/28/2019 Talent Edge 2020 Building the Recovery Together

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Talent Edge 2020:Bidi rvr r

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ad wadr arrdi


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Talent Edge 2020

Talent Edge 2020 is a ew loitudial surve series coducted or Deloitte Cosulti LLP b Forbes Isits explori caitalet priorities i all idustries, at lare busiesses worldwide i te Americas, Asia Pacifc, ad Europe, te Middle East, ad Arica.Te Talent Edge 2020 series ollows te Managing Talent in a Turbulent Economyseries rom 2009 ad 2010.

Contents

Key ndings | 1

Employers may risk losing the hearts and minds o employees | 3

What is driving talent out the door? | 6

Slowing down the revolving door and turning it in your direction | 7

Talkin bout my generation | 8

Employers need to lit their game to deliver world-class talent programs | 11

Strong talent programs = better workorces, better workplaces, strongercompanies | 12

Building the recovery together | 14

Survey demographics | 15

Contacts | 17

Talent Edge 2020: Blueprints for the new normal

Tis iauural report eatures results rom a October 2010 surve tat polled 334 seior busiess leaders ad uma resource

executives at lare lobal busiesses. Tis report explores talet strateies ad uoldi emploee treds related to retetio adte ew callees posed b te recessio.

Read Talent Edge 2020: Blueprints for the new normal


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Building the recovery togetherWhat talent expects and how leaders are responding

MAny companies are not addressing thecritical needsand potential rustrationso their employeesand oen do not have a

realistic picture o how employees see them,

according to a March 2011 survey o employ-

ees at companies worldwide conducted or

Deloitte Consulting LLP by Forbes Insights.

While corporate executives and talent manag-

ers may be tempted to believe the talent markethas returned to normal and they can go back

to business as usual now that the economy

is growing again, our survey suggests that this

strategy could leave companies on the losing

side o the competition or talent.

As part o the Deloitte Talent Edge 2020 series,

this report examines employee attitudes to pro-

vide insights into the orces that are expected

to drive the talent market over the next decade.

More specically, the survey probes diver-gences between the attitudes and desires o

employees and the talent strategies and prac-

tices being utilized by employers. Te survey

also compares current employee views with the

views held by employees during the depth o

the recession and to the opinions o executives

we surveyed in October 2010.

Te March 2011 survey o 356 employees at

large global companies (annual sales greater

than $500 million) revealed several importanttrends Deloitte believes will shape the talent

market in the coming decade:

Emploers ma risk losi te eartsad mids (ot to metio te

eads ad ads) o emploees.

With a stronger economy, more employees

with pent-up desires to leave their current

employers are now actively testing the job

market. Rising turnover intentions, which built

up slowly but steadily during the recession,

may hit companies at the exact time when

many executives predict talent shortages across

business units that companies rely on to drive

growth and innovation. Only 35% o the employees surveyed expect

to remain with their current employersa

10-percentage-point decrease compared to

the September 2009 survey. Nearly two out

o three employees (65%) surveyed are pas-

sively or actively testing the job market.

Wat do te 65% o emploeeslooki or te exit si see

tat teir emploers dot?

Te nearly two out o three employees

surveyed who are exploring their career

options have strong, negative views about

what the job employers are doing to cre-

ate challenging career paths and to open up

advancement opportunities.

Among the employees surveyed who

are actively or passively seeking out new

employers, 53% report the prospect o jobadvancement or promotion would persuade

them to stay with their current companies.

A majority or near majority o employ-

ees on the market rate their companies

eorts at creating career paths, developing

leaders, and retaining top perormers as

air or poor.

As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary o Deloitte LLP. Please see www.deloitte.com/

us/about or a detailed description o the legal structure o Deloitte LLP and its subsidiaries. Certain services may not be availableto attest clients under the rules and regulations o public accounting. All survey data and statistics reerenced and presented inthis report, as well as the representations made and opinions expressed, unless specically described otherwise, pertain only tothe participating organizations and their responses to the Deloitte survey conducted March 2011.

Key ndings

1


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Talent Edge 2020

Tareti talet strateies b eeratio

ad eder elps keep teams itact.

Both turnover triggers and retention incen-

tives appear to vary

signicantly across

employee genera-tions, with dier-

ences emerging by

gender. Companies

that adapt their

talent and retention

strategies to meet the

unique expectations

and motivations o

dierent employee

populations will

likely be rewarded,

while those that

do not could nd

themselves at the losing end o the competition

or talent.

When it comes to ranking the top turnover

triggers, surveyed Baby Boomers rated lack

o trust in leadership at the top o their

list at 32%, while both Generation X and

Millennial employees placed lack o careerprogress rst at 38% and 30%, respectively.

Te ndings also revealed that surveyed

men rate lack o compensation increases

at the top o their top turnover trigger list

at 27% (compared to 14% o women), while

women placed excessive workload rst at

31% (compared to 15% o men).

Companies thatadapt their talent andretention strategiesto meet generationaldesires will berewarded, while thosethat do not couldnd themselves at

the losing end o thecompetition or talent.

Compaies tat lit teir ame

to deliver world-class taletprorams will likel be rewarded.

Very ew employees dene their employers

overall talent eorts as world-class or even

very goodand the same lack o condenceholds true when it comes to key talent reten-

tion strategies. However, based on survey

ndings, employers that li their talent eorts

will likely be rewarded with employees who are

more satised with their jobs and career pros-

pects (and who are ar more likely to remain

with their current employers).

Only 6% o the employees surveyed rate

their companies overall HR and talent

eorts as world-class, while more thanour in ten (43%) called them air or

poor. Not surprisingly, employees who

describe their companiestalent programs

as world-class or very good are nearly

twice (42% to 23%) as committed to

remaining at their jobs than employees who

work at companies with air or poor

talent eorts.

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Employers may risk losing the

hearts and minds o employees

Dii Dr:Survey ndings suggest thatcompanies may be at a greater risk with regardto retaining emale employees. Women appearedmore likely than men to be actively looking ornew employment in the next 12 months (55%o women vs. 41% o men). Men, on the otherhand, were more likely to be passively looking(24% o men vs. 12% o women).

IMAgInE i a company could count on keep-ing only a third o its customers next year.Te discovery would set o alarm bells inside

every C-suite ofce and trigger emergency

meetings, strategy reevaluations, and demands

or improvement. Substitute the word employ-

ees or customers

and that may be

the position that

many companies

ace today.

I alarm bells are

not going o, maybe

they should.

Among employees

surveyed in March2011, only 35%

expect to remain

with their current

employers, compared to 45% who were com-

mitted to their employers during the recession

in 2009 (see gure 1). In addition, by a margin

o more than 2:1 (45% to 20%), employees are

more likely to predict an increase rather than

a decrease in employee turnover during the

next year.

Amongemployeessurveyed inMarch 2011,only 35%expect toremain with

their currentemployers

Fir 1. Ar ai r i?

2009

2011

Employees whoexpect to stay with

their currentemployer

45%

Employees whoexpect to stay with

their currentemployer

35%

Employees whohave been, plan to,

or are currentlyseeking newemployment

55%

Employees whohave been, plan to,

or are currentlyseeking newemployment

65%

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Talent Edge 2020

When it comes to retaining talent, many

employers risk losing the battle or the hearts

and minds (not to mention the heads and

hands) o their employees. Nearly hal (49%)

o the employees surveyed have been seek-ing, plan to seek, or are currently seeking new

employment. Another 21% are exploring new

options by posting their resumes online or

keeping an open mind about calls rom corpo-

rate recruiters (see gure 2).

Employees increasing restlessness coincides

ReD FlAg FoR employeRs: Is the BAlAnce oF poWeR In thejoB mARket shIFtIng FRom employeRs to employees?

According to our survey, more than one in ve employees (21%) has posted their resumesonline or are utilizing social media tools to keep their career options open. While employersspent the recession hunkered down and ocused on cutting costs, the job market has beenslowly evolving, making it easier or employees to grab control o the market rom employers.

In addition, social media sites like Facebook, Twitter, and LinkedIn open up a new, highlyeective method or job-seekers and employers to connect. According to placement rmChallenger, Gray & Christmas, social networking sites now provide the second-most eectiveway or job-hunters to nd new work, alling only behind traditional networking.2 Cachinko, asocial media recruiting solutions company, claims that social media sites are driving employeeempowerment because o their ease, eciency, and exploding reach.

Cachinko recently reported that LinkedIn has 85 million members; Twitter has 175 millionregistered users; and Facebook has over 500 million active users, over hal o whom check theirFacebook accounts each day. From an employers perspective, social media provides cheapaccess to a seemingly limitless talent pool. And or employees, exploring new career options

and looking or a new job has never been easier, more un, or more empowering.3

with employer concerns about losing critical

talent. Employers are right to be worried.

Academic research indicates that 44% o

employees are likely to act on their turnover

intentions.1 With 65% o employees lookingto leave their current positions, a total o 29%

might actually walk out the door (0.65 x 0.44

= 0.29). Moreover, in Deloittes October 2010

survey o executives, 56% predicted a scarcity

o leadership talent, while nearly three in our

(72%) expected talent shortages in R&D.

Fir 2. Ar ai r a w r?*

I have been actively looking or newemployment during the past 12 months

I am currently seeking new employment

I plan to begin looking or newemployment within the next 12 months

I am passively looking

I expect to stay with my current employer

15%

21%

15%

35%

19%

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nearl two-tirds (65%) o teemploees surveed are looki or

te exit si, or te are at least opeto a career move. Wat do tose65% see tat emploers dot?

Uncertaincareerpaths:Basedonoursurvey,

well over hal o the employees planning to

leave their current employers (57%) believe

their companies do a air or even poor job

o creating career paths

and challenging job

opportunities, compared

to only 23% who rate

this key talent metric

as excellent or verygooda vote o no con-

dence greater than 2:1.

Little leadership devel-

opment: Our survey

indicates that 50% o

the employees who do

not expect to stay at

their current employers

rate their companies leadership development

programs as air/poor, against 21% who ratethem as excellent/very good.

Lackoftrustinleadership:Ofsurveyrespon-

dents, only 23% o employees planning to

depart believe their companies eectively

inspire trust in leadership, compared to the

57% who rank these eorts as air/poor.Surveyed emale employees appeared less

impressed than men by their companies ability

to inspire trust and condence, with 35% o

the women rating this ability as poor, com-

pared to 22% o men.

Dicultyretainingtopper-

ormers: Survey results show

that o those employees who

expect to depart, 50% believe

their companies are doinga air/poor job retaining

top perormers, compared to

just 23% who label retention

eorts in this area as excel-

lent/very good.

Inadequatetrainingpro-

grams: Nearly hal o the

employees surveyed (48%) who plan to leave

their current jobs believe their companies are

doing a air/poor job managing and deliver-ing eective training programs; just 24% rate

training programs as excellent/very good.

Employees whoare looking toleave believekey corporatetalent programsat their currentcompanies areseriously lacking.

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Talent Edge 2020

What is driving talent out the door?

ThE key drivers o turnover have remainedremarkably stable as employees and theircompanies have transitioned rom a recession

to recovery. When employees were asked

to rank the top actors that would lead them to

seek new employment, lack o career prog-

ress topped the list at 28%. Tis was ollowed

by lack o compensation increases, lack o

job security, and lack o trust in leadership,

each at 24%. Tese actors also ranked as the

top departure drivers in Deloittes September

2009 Managing alent in a urbulent Economy

employee survey.

While many companies might expect morale

to strengthen along with the economy, employ-

ees have a mixed reaction. O the employees

surveyed in March, 42% report that morale has

indeed increased over the past 12 months, but

a strong 36% believe morale has decreased.

Opinions on morale, according to survey

respondents, appear to dier between hourly

and ull-time salaried employees. Te majority

o hourly employees (59%) believe morale has

improved or signicantly improved, whereas

only 31% o salaried employees hold this view.

Whats more, almost hal (45%) the salaried

employees believe morale has either decreased

or signicantly decreased, a view held by justover one-h (22%) o hourly employees.

Examining employee morale rom a global per-

spective, however, reveals a dierent picture. In

the Asia Pacic and Europe, Middle East, and

Arica (EMEA) regions, employees surveyed

are reporting a revival o morale, with 62% and

49% o employees, respectively, responding that

morale has improved over the past year. In the

Americas, however, the outlook is not so bright.

Only 23% o the employees surveyed report thatmorale has increased, leaving the Americas lag-

ging behind the rest o the world (see gure 3).

One possible actor depressing employee

morale in the Americas and beyondeven as

the macro-economic environment improves

may be poor communication about corpo-

rate strategy and direction. While 57% o

the employees surveyed agreed their HR/

talent managers did an eective job commu-

nicating, a signicant 40% ound company

communications lacking.

DiiDr:mployers appearo be connecting

best withheir youngestmployees.

Nearly three inour Millennials

74%) believeheir employersectivelyommunicatehe companiestrategicirection,ompared to lesshan hal o Baby

Boomers (47%)nd 50% o

Generation Xers.

Dii Dr:Respondents who havebeen out o work at some point in the pastthree years are casting a wary eye towardcurrent employers. Just over a third (34%) othese workers cite the lack o job security as areason to look or a new jobten percentagepoints higher than overall survey respondents.They may also consider their current job to be

just the best option available at the moment,not a long-term position30% would leavecurrent employers or new opportunities, eightpercentage points higher than overall responses.

Total respondents

Asia Pacic

Europe/Middle East/Arica

Americas

1%

2%

Signicantly improved Improved Remained the same Decreased Signicantly decreased Dont know

Fir 3. exaii ra r a ba riv

8%

11%

7%

5%

34%

51%

32%

18%

22%

23%

17%

25%

24%

14%

30%

30%

12%

12%

22%

26%

6


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Slowing down the revolving door

and turning it in your directionWhAT should employers do to slow downthe revolving door that may be threat-ening an exodus o talent rom their com-

panies? Even more interesting, what should

companies committed to winning the competi-

tion or talent do to turn the revolving door in

their avor? Perhaps not surprisingly, the top

retention incentives identied by employees

present a near-mirror image o turnover driv-ers, providing executives and talent managers

with a clear picture o the most eective talent

retention strategies.

When asked to list the top three retention

incentives, survey respondents ranked promo-

tion/job advancement rst at 53%, ollowed

by additional compensation at 39%, and

additional bonuses or other nancial incen-

tives at 34% (see gure 4).

Financial incentives are a perennial tal-

ent retention avorite, but companies can

improve their talent retention eorts through

non-nancial incentives as well. Boosting

ReD FlAg FoR employeRs: keep A lAseR-lIke Focus on cReAtIngcleAR cAReeR pAths AnD chAllengIng joB oppoRtunItIes.

More than hal (53%) the employees that Deloitte surveyed believe companies only do a air or poorjob o creating career paths and providing challenging job opportunities. For employees looking or jobs,challenging job opportunities really do matter.

employee support/recognition rom their

managers was ranked as an eective retention

tactic by a strong 30% o the employees that

Deloitte surveyed.

Job advancement expectations have also

jumped considerably, as the recession has

aded and the recovery has taken hold. In

2009, 28% o the employees surveyed listed job

advancement expectations as a top retention

incentive. In March, that number had grown

to 53%a jump o 25 percentage points in

18 months.

Dii Dr:Asked to rank the incentives that wouldbe most eective in keeping them with their current employer,men appeared to ocus on nancial incentives. Women, on theother hand, were more likely to seek recognition. Among men,42% said additional compensation would keep them romleaving, and 39% cited additional bonuses or other nancialincentives as retention incentives. Among women, only 27%cited additional compensation as an incentive, and only 19%cited additional bonuses. Meanwhile, 40% o women said

support and recognition rom supervisors or managers wouldbe a valuable retention method, compared to just 28% o men.

Fir 4. Darr drivr ad ri iiv

What would keep you with your current employer?

Promotion/job advancement

Additional compensation

Additional bonuses or nan-cial incentives

Support and recognition romsupervisors or managers

Additional benets(i.e., health and pensions)

53%

30%

39%

21%

34%

What would encourage you to look or newemployment?

Lack o career progress

Lack o compensationincreases

Lack o job security

Lack o trust inleadership

New opportunitiesin market

28%

24%

24%

22%

24%

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Talent Edge 2020

In examining the data related to turnovertriggers and retention incentives, one actbecomes crystal clear: companies that deploy

a one-size-ts-all retention strategy will have

a hard time competing in the intensiying

worldwide competition or talent (see gure

5). Dierent generations have vastly dierent

goals, expectations, and desiresand employers

should tailor and target their talent strategiesto address every employee group, rom Baby

Boomers to Generation Xers to Millennials.

Bab Boomers eel rustratedad let dow.

Among the employees surveyed, Baby Boomers

expressed the strongest discontent with their

employers and the greatest rustration that their

loyalty and hard work has been neither recog-nized nor rewarded.

More than hal o the Baby Boomers

surveyed (51%) report that morale at their

companies has dropped over the past year.

Less than hal (47%) believe their com-

panies successully communicate their

corporate strategies.

Dierent generations appearto have very dierent goals,expectations, and desiresand employers must tailorand target their talentstrategies to satisy everyemployee group, rom BabyBoomers to GenerationXers to Millennials.

Talkin bout my generation

Four in ten Baby Boomers (41%) labeled

their companies ability to inspire trust and

condence in leadership as poor.

Among Baby Boomers, 32% cited lack

o trust in leadership as a key turnover

triggermaking it their top reason to leave

and the highest selection o any genera-

tion. Baby Boomers also listed lack o job

security and dissatisaction with manag-

ers/supervisors as prime motivators that

could cause them to leave their current

companies.

Raimiia (31 ad dr) grai X (a 32-47) Bab Br (a 48-65)

exiv e exiv e exiv e

1Company culture

(21%)Promotion/job

advancement (41%)

Additional bonusesor nancial

incentives (21%)

Promotion/jobadvancement

(64%)

Additionalbenets (26%)

Promotion/jobadvancement

(50%)

2Flexible work ar-

rangements (20%)Additional

compensation (40%)Additional

compensation (19%)


incentives (41%)


incentives (23%)

Support andrecognition rom

supervisors ormanagers (43%)

3

New training

programs or supportand recognition romsupervisors or manag-

ers (19% tie)

Additional bonusesor nancialincentives (33%)

Strong leadership (19%) Additionalcompensation (33%)

Additionalcompensation

or strongleadership/

organizationalsupport (21% tie)

Additionalcompensation (42%)

Fir 5. t r iv ri iiiaiv b rai: exiv v.

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What will it take to keep Baby Boomers satis-

edespecially at a time when companies rec-

ognize the need to retain key leaders and keep

Baby Boomers on the job longer? While all

generations ranked promotion/job advance-ment as the number one retention incentive,

or Baby Boomers it was less o a priority. Just

hal (50%) cited promotions when asked to

pick their top potential inducements, com-

pared to nearly two-thirds o Generation Xers

(see gure 5).

More than our in ten Baby Boomers surveyed

(43%) wanted greater support and recognition

rom managers/supervisors, making it their

second highest retention incentive. Tese nd-

ings represent a shi in Baby Boomer attitudes

since the September 2009 survey, where 41%

o Boomers cited strong leadership as the

most eective retention incentive, ollowed

by additional nancial incentives (40%) and

additional compensation (36%).

geeratio X wats tomove up or move out.

Generation X employees are by ar the group

most likely to be looking at exit strategies rom

their current jobs (see gure 6). Many Gen

Xers surveyed appear rustrated that they are

bumping up against the gray ceilingwith

their career paths blocked by Baby Boomers

who are not moving out o the workorce.

Nearly our in ten Gen Xers surveyed (38%)

report they are currently seeking a new

job or have been actively looking over the

past year.

Only 28% o Gen Xers expect to stay with

their current employerssuggesting many

companies can expect a signicant exodus

among employees they were counting on to

become uture leaders.

One o the biggest talent challenges many

companies ace is opening up career paths

or the next generation o corporate lead-ers. Lack o career progress was the clear,

number one exit trigger or Generation X, at

38%. New opportunities in the job market

and lack o compensation increases lagged

well behind at 28% and 26%, respectively.

Te move-up-or-move-out attitude o

Generation X was also evident when Deloitte

asked employees to rank the top three retention

incentives that would persuade them to stay

with their current employers. For Gen X, pro-motion/ job advancement was the clear rst

choice at 64%, ollowed by additional bonuses

or nancial incentives at 41% and additional

compensation at 33% (see gure 5).

Baby Boomers

Generation X

Millennials

I have been actively looking or newemployment or the past 12 months

I am currently seeking newemployment

I plan to begin looking or newemployment within the next 12 months

I am passively looking or newopportunities

I expect to stay with my currentemployer

Fir 6. e i w b rai*

16%

13%

13%

35%

15%

25%

7%

32%

37%

15%

14%

22%

28%

16%

27%

*Survey participants who were actively looking (the frst three categories) could choose more than one response.

9


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Talent Edge 2020

Alo wit facial icetives,

Milleials seek a ew corporateculture wit proressive values.

Millennials share a desire to pull themselves

up the corporate ladder and want the -

nancial rewards that come with that career

progress. But when considering employers,

they also seek a corporate culture that aligns

with a dierent set o values than their more

experienced colleagues.

Nearly one in three Millennials (32%)

is about to begin looking or new career

opportunities in the next 12 months. Like

Generation X, Millennials also ranked

lack o career progress as their top exit

trigger, but less than their older colleagues

(30% compared to 38% or Gen Xers).

ReD FlAg FoR employeRs: RetIRement out oF ReAch.

Companies should consider ways to integrate older workers eectively into the workorce.Among the Baby Boomers surveyed, nearly hal (48%) believe that they will continue working

past age 65, compared to just 24% o Gen Xers and 11% o Millennials. More than one inevery ten Baby Boomers (13%) predicts he will work past 70. These demographic changes inthe workplace will likely require companies to create fexible approaches to work, retirement,learning, and education. According to the survey, workplace fexibility and rewards are themost important incentives or keeping Baby Boomers working and content. They tend todesire fexible work arrangements (38%), additional bonuses or nancial incentives (29%), andadditional compensation (27%). However, as the survey suggests, employers, by and large,have not been eective in creating career options or people working past 65, even thoughmany employers want their experience and will need their skills. Addressing the issue o how toengage older employees should be considered a talent priority.

Lack o compensation increases (28%) and

lack o job security (22%) round out the

top three departure drivers.

Millennials have a sharply dierent idea o

what makes or a strong corporate culture

than other generations. When asked, or

instance, how important a companys com-

mitment to sustainability is, nearly two in

three rated it very important compared

to just one-in-three Baby Boomers (35%).

By more than 2:1 (32% to 13%), Millennials

were more likely to consider their employ-

ers commitment to corporate responsibil-

ity/volunteerism very important than were

Baby Boomers. Millennials were also nearly

three times more likely to call a un work

environment important compared to Baby

Boomers (55% to just 19%) (see gure 7).

Baby Boomers

Generation X

Millennials

Sustainability

Creating a un work environment

Work-lie balance

Corporate responsibility andvolunteerism

Diversity and inclusion

Fir 7. W idri a r, w ira i raizai i wi?

13%33%

31%

19%

55%

29%

35%

63%

41%

38%

41%

53%

13%

32%

24%

10


13/20


TALEnT managers ace a number o seriouschallengesrom increasing employeerustration over the lack o clear career paths to

the rise o Internet and social media tools that

make it easier or key talent to shop or better

opportunities elsewhere. Addressing the chal-

lenges is a critical jobbut according to the

overwhelming majority o employees Deloitte

surveyed, talent programs at most companies

are alling short.

Only a scant 6% o employees who participated

in the March survey described talent programs

at their companies as world-class. By a mar-

gin o more than 7:1 (43% to 6%), employees

were more likely to rate their companies talent

programs as air or poor than world-class. Even broadening the denition o suc-

cessul talent programs to include companies

employees believe are doing a very good job,

nearly three in our companies (73%) ail to

clear the bar.

Given the dim view most employees have o

their companies overall talent eorts, it is not

surprising that companies did not are much

better when employees were asked to grade

specic talent programs.

By a margin approaching or exceeding 2:1,

employees were more likely to view many tal-

ent programs as air or poor than world-

class or very goodincluding developing

leaders (46% air/poor to 26% world-class/

very good); maintaining high morale (49%air/poor to 22% world-class/very good);

inspiring trust and condence in leadership

(48% air/poor to 26% world-class/very

good); creating career paths and challeng-

ing job opportunities (48% air/poor to 27%

world-class/very good); and providing career

mobility and international career assignments

(45% air/poor to 25% world-class/ very

good) (see gure 8).

Te only major area where employees gavetheir companies relatively high marks was pro-

viding competitive compensation and benet

packages, with 36% calling their companies

eorts world-class or very good compared

to 34% who rated them air or poor.

Dii Dr:Financial Services employeesgive poor marks to their companies HR/Talentprograms. A solid majority57%rated theiremployers overall talent eorts as air (44%)

or poor (13%).

DiiDr:Leaders oAmericasbasedcompanies

trail those inthe rest othe worldwhen itcomes towinningtheiremployeestrust. Morethan a third(35%) o theAmericas

employeessurveyedsaid a lacko trust inleadershipwould drivethem tolook or anew jobin the yearahead.Just 14%

o EMEAworkersand 21% oAsia Pacicworkersshare thesame view.

Employers need to lit their

game to deliver world-class talent programs

Inspiring trust in leadership

Creating career paths

Developing leaders

Maintaining high morale

Providing international assignments

Compensation and benets

e rad arra air r r

e rad arra wrd ar vr d

Poor

Fair

Very good

World class

Fir 8. e rai ir ai a rra

18%25%

25%

20%

28%

23%

12%

23%

23%

26%

21%

22%

22%

16%

20%

18%

18%

24%

8%

6%

7%

7%

8%

12%

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Talent Edge 2020

SO, what really works when it comes tokeeping employees committed to theircompanies and satised with their careers? Te

35% o employees surveyed who plan to stay

with their current employers agree on

one clear actor: strong talent programs.

Companies with the most eective talent

programs share several critical traits that oer

compelling lessons.

Create clear career pats.

O the employees surveyed who plan to remain

with their employers, 33% believe their com-panies are eectively creating challenging job

opportunities and clear career paths, compared

to 23% or employees who are looking to leave

their current jobs.

Develop a robust leadersip pipelie.

Based on our ndings, by a margin o 35% to

21%, employees committed to their employers

believe their companies are doing a world-class/very good job o developing leaders

through internal and external talent programs.

Inspire trust in leadership. Survey results indi-

cate that a third (33%) o employees who want

to stay with their current companies believe

their employers are world-class/very good

at inspiring trust and condence in corpo-

rate leadership, compared to just 23% among

employees looking to leave.

Strong talent programs = better

workorces, better workplaces,stronger companies

Focus o top perormers.

Survey results indicate by nearly 2:1 (44% to

23%) committed employees report their com-

panies do a superior job o retaining top talent

versus those looking or a new employer.

Commuicate eectivel.

Does your company do an eective job com-

municating with employees? Almost three-

quarters (72%) o the employees surveyed who

are sticking with their employers believe that

their employers do a good job communicating

with them22 percentage points higher thanemployees exploring new career options.

Companies ollowing this roadmap are reaping

signicant benets and positioning themselves

to win as the competition or talent intensies.

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Committed employees. Surveyed employ-

ees with world-class or very good

talent programs are more likely to remain

with their current employer than those

with air or poor programs (42% vs.

23%), and they are less likely to even be

passively considering new employment

(14% vs. 32%).

Strong employee morale. Survey respon-

dents who describe their companies talentprograms as world-class or very good

are ar more likely to report higher morale

over the past year compared to those who

rate their HR program as air or poor.

When asked how morale had changed over

the past 12 months, a ull 72% o those

with strong talent programs said it had

improved or signicantly improved,

compared to only 16% o those with air

or poor HR programs.

Eective communication. Companies with

world-class or very good HR eorts are

much more likely to be eectively com-

municating critical issues to their employ-

ees. Nearly nine in ten (89%) employees

surveyed who rate their talent programs as

world-class/very good credit managers

or eectively communicating their compa-

nies strategic direction over the past year.

It is a mirror image or employees who rate

their HR air/poor; 81% said their manag-

ers had not communicated eectively dur-

ing the past 12 months.

Overall, employees who enjoy world-class or very good talentprograms are happier with their jobs and the development o theircareers than those whose organizations have poor HR programs.

Solid trust. According to our survey

ndings, employees who rate HR eorts

highly also believe their organizations

were transparent during times o economic

uncertainty. Tese employees gave their

companies excellent/world-class (23%) or

very good (34%) marks57% combined.

Te opposite was true or workers with

air or poor HR. More than three-quarters

(76%) o these respondents said their

employers did only a air (35%) or poor

(41%) job o remaining transparent.

Important values. Workers benetting

rom exceptional talent programs have

higher expectations rom their employ-

ers when it comes to corporate values

and commitments.

When considering an employer, nearlyall92%o the surveyed employees

believe their organizations commit-ment to sustainability is important(33%) or very important (59%).

Tey also highly value an employerscommitment to corporate responsi-bility83% said it was important(49%) or very important (34%)and or diversity and inclusion, 79%called it important (42%) or veryimportant (37%).

Future leaders. A strong talent program

includes delivering good career develop-

ment plans to employees. A large majority

o survey respondents with highly rated

HR programs described as very good/

world-class their companies perormance

in developing leaders and creating career

paths (60%), as well as in managing and

delivering training programs (59%).

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Talent Edge 2020

Building the recovery together

DELOITTES Talent Edge 2020 employeereport reveals clear, actionable strate-gies that employers can implement to deliver

world-class talent programs and keep top

talent committed to their jobs, excited about

their career prospects, and condent in their

corporate leadership. Winning companies are

targeting talent eorts to each generation,

creating clear career paths, and ensur-

ing employees have challenging

job opportunities.

Executives around the world are predicting

shortage o key talent in critical business

units. Firms will separate themselves rom

the competition i they step up their talent

programs now and rene their strategies to

engage with workers and ocus on specic

employee needs.

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Survey demographics

FOR Deloittes Talent Edge 2020 employeereport, Forbes Insights surveyed 356 employ-ees working at large companies with annual

sales o over $500 million. More than three in

our (78%) work at companies with more than

$1 billion in annual sales (see gure 9).

Approximately three-quarters o survey partici-

pants were men (78%) and 22% were women(see gure 10).

Approximately a third o the survey participants

were drawn rom each generational group: 33%

Baby Boomers (ages 48 to 65), 32% Generation

X (ages 32 to 47) and 33% Millennials (ages 31

or younger). Te remaining 2% were ages 66 or

oldertoo small a sample size to be included

in any o the surveys ndings (see gure 11).

Fir 9. ca rv dri rfa ar

22%

26%

15%

17%20%

$500 million $999 million

$1 billion $4.9 billion



$20 billionor greater

Fir 10. Wa i r dr?

Female22%

Male78%

Fir 11. t wi rai d b?

Millennials(Ages 16 31)

33%

Generation X(Ages 32 47)

32%

Boomers(Ages 48 65)

33%

Veterans (Age 65+)

2%

15


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Talent Edge 2020

Participating employees were also distributed

across hourly (36%) and salaried roles (64%)

(see gure 12).

Participating employees were evenly dispersed

throughout the worlds major economic

regions: 35% in the Americas, 35% Asia

Pacic, and 30% in Europe, Middle East, and

Arica (see gure 13).

Every major industry was represented, led by

Consumer/Industrial Products (22%), ollowed

by echnology/Media/elecommunications

(21%), Financial Services (15%), Lie Sciences/

HealthCare(12%),andEnergy/Utilities(9%)

(see gure 14).

Edotes

1. Grieth, R. W., Hom, P. W., & Gaertner, S. (2000). A Meta-Analysis o Antecedents and Correlates oEmployeeTurnover:Update,ModeratorTests,andResearchImplicationsfortheNextMillennium.Journal of Management, 26.

2. Quoted in Golson, Jordan. How the Web Has Changed Job Searching.gigaom.com. 17 August 2009. Web.22 March 2011. http://gigaom.com/2009/08/17/how-theweb-has-changed-job-searching

3. Cachinko. 2011 Social Recruiting Trends and Strategies.7 January 2011. blog.cachinko.com. Web.22 March 2011. http://blog.cachinko.com/blog/wp-content/uploads/2011/01/2011-social-recruiting-whitepaper.pd

Fir 13. Rd b ai

Americas35%

Europe/Middle East/Arica30%

Asia Pacic35%

Fir 14. ca idri

Consumer/IndustrialProducts

22%

Lie Sciences/Health Care

12%

Technology/Media/Telecommunications

21%

Energy/Utilities

9%

FinancialServices

15%

Other21%

Fir 12. Wa b drib r r?

Full-time hourly36%

Full-time salaried64%

16


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Authors

Ai kwa

Deloitte Consulting [email protected]

j swarz

Deloitte Consulting [email protected]

Adrw lia

Deloitte Consulting LLP

[email protected]

17


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Ab rv

Talent Edge 2020 is a ollow up to te Managing Talent in a Turbulent Economysurveseries. Tis surve is te secod i a post-recessio loitudial stud bei coductedb Deloitte Cosulti LLP wit Forbes Isits. Tis report probes diverecesbetwee te attitudes ad desires o tree eeratios o emploees ad te taletstrateies ad practices bei utilized b emploers. Tis report eatures results romte Marc 2011 surve tat polled 356 emploees at lare busiesses i te Americas,Asia Pacifc, ad Europe, te Middle East ad Arica. www.deloitte.com/us/talet.

The statements in this report refect our analysis o survey respondents and are not intended to refect acts or opinions o any other entities. All surveydata and statistics reerenced and presented, as well as the representations made and opinions expressed, unless specically described otherwise, pertainonly to the participating organizations and their responses to the Deloitte survey.

This publication contains general inormation only and is based on the experiences and research o Deloitte practitioners. Deloitte is not, by means o thispublication, rendering business, nancial, investment, or other proessional advice or services. This publication is not a substitute or such proessional

advice or services, nor should it be used as a basis or any decision or action that may aect your business. Beore making any decision or taking any actionthat may aect your business, you should consult a qualied proessional advisor. Deloitte, its aliates, and related entities shall not be responsible or anyloss sustained by any person who relies on this publication.

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