Businesses encouraged to focus on retention to keep key employees and contain voluntary turnover once recovery takes hold.
A new research report released today by Deloitte Consulting LLP, a subsidiary of Deloitte LLP, reveals that the ongoing economic downturn has added to the woes of human resources executives and top leaders who continue to struggle with talent-related issues.
According to the research, while headcount reductions and other cutbacks remain prevalent, many surveyed executives are also beginning to sharpen their focus on retention and employee development initiatives so they can be prepared when the turnaround begins.
"Once the recovery begins to take hold, business executives and talent leaders can expect a ‘resume tsunami' as voluntary turnover rises with leaders and workers with critical skills seeking new opportunities," said Jeff Schwartz, Principal, Deloitte Consulting LLP, and Deloitte Touche Tohmatsu Global Leader, Organization and Change. "The depth and quality of retention planning today will likely separate the talent winners from the talent losers tomorrow."
The third in a series of a five-part longitudinal study, this report, "Managing talent in a turbulent economy: Clearing the hurdles to recovery," tracks the way surveyed global business leaders are shifting their talent priorities and strategies to meet the challenges of today's economy and how they plan to clear the hurdles to economic recovery. Some key findings from this survey include:The worst may be behind us
: For the first time in this longitudinal study, the number of surveyed executives who said the worst is yet to come declined – and significantly, from 32 percent in March to 18 percent in May. At the same time, the group who believes the worst is behind us doubled to 16 percent from 8 percent in March and 6 percent in January.Fear of voluntary turnover
: Nearly two-thirds of surveyed executives (65 percent) are highly or very highly concerned about losing high-potential talent in the year after the recession ends.Cost remains top issue
: Cutting costs remains the top strategic priority, with 56 percent of surveyed executives ranking cutting and managing costs as their top strategic issue.More layoffs to come
: When asked to rank their current talent priorities, 42 percent of the executives surveyed in May put reducing employee headcount at the top of the list – slightly higher than in both March (39 percent) and January (38 percent).Focus on recruiting and retaining critical talent
: Despite cost-cutting measures, nearly half of executives and talent managers surveyed (47 percent) say their companies plan to recruit more critical talent to manage the current economic environment – a significant jump since March (34 percent).Gen Y and Gen X retention most critical
: Talent managers and business executives surveyed see greater turnover potential among younger employees. Generation Y (under age 30) workers were considered most likely to be on the move, with 63% of executives predicting an increase or a significant increase in turnover among this group, followed by Generation X (ages 30-44) at 46 percent. Only one in four expect an increase in departures by Baby Boomers (ages 45-64) or Veterans (over age 65).
For a full copy of this research report and for the latest information about talent strategies, innovative talent and work solutions, please visit the Talent Management website.This release contains general information only, and none of Deloitte Touche Tohmatsu, its member firms, or its and their affiliates are, by means of this release, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This release is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser.None of Deloitte Touche Tohmatsu, its member firms, or its and their respective affiliates shall be responsible for any loss whatsoever sustained by any person who relies on this release.