Report Reveals 80% of Employees Plan to Stay with Current Employer in the Next Year
According to Deloitte’s new global talent survey, Talent 2020, four out of five (80 percent) employees plan to stay with their organizations over the next year, a significant increase from 2011 when nearly 65 percent were planning to leave. Forty-six percent of the survey respondents indicate they are less inclined to move because, in the last 12 months, they have changed jobs (9 percent), were promoted (22 percent), or have taken new positions (15 percent) with their current employers. Surprisingly, however, nearly one-third (31 percent) say they are not satisfied with their jobs. The survey identified three emerging trends:
Engage employees with meaningful work or watch them walk out the door. Employees value meaningful work over other retention initiatives. A majority (42 percent) of respondents who have been seeking new employment believe their job does not make good use of their skills and abilities.
Focus on “turnover red zones.” Employee segments at high risk of departure, or “turnover red zones,” 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 ten employees (62 percent) who plan to stay with their current employers report high levels of trust in corporate leadership.
Who is leaving and how do companies hold onto key employees?
Interestingly, the incentives to get employees to stay are not exactly the same as the factors that would cause them to leave.
Failure to Manage and Retain Key Employees Negatively Affecting Corporations' Bottom Line
The Corporate Executive Board announced research that indicates companies' failure to manage and retain top talent is negatively affecting their balance sheets. In fact, 25 percent of top employees plan to change jobs in the next 12 months alone. For organizations that haven't yet faced the intense time and financial pressure associated with retaining top talent, the cost of high-potential departures may be shocking. For each high-potential employee that departs, an employer will lose as much as 3.5x that employee's total annual compensation. Organizations that think they are immune may also be surprised to learn that more than half of employers surveyed acknowledged that their own organizations are ineffective at managing and retaining top talent.
Across geography, industry and economic cycle, high-potential employees can have a substantial impact on business results. However, 64 percent of high-potential employees say they are unhappy with their development activities. What's more, fewer than one-in-three organizations reported significant returns from investments made in their top employees.