Employers face challenge to retain their most talented employees
Employers face challenge to retain their most talented employees, warns Randstad survey
Mismatched perceptions of what employers think will retain talent and what people say will make them stay
Over 50 per cent of people feel their skills are under utilised
Those up-skilled by working in leaner teams in the recession Generation R are ready to test their market worth
Luton, 20 September, 2010. Employers do not properly understand what motivates their employees to continue working for them, according to a report by Randstad, one of the worlds largest recruitment and HR services companies. The report also found that employers are failing to utilise fully the skills of their employees despite many workers broadening their skills during the recession.
According to Randstads World of Work Report 2010, which examines the current and future dynamics of the employment environment in the UK, employers ranked the main factors driving people to stay at a company as its brand, culture and the benefits package offered.
But employees ranked the most important factors in their choice of employer as the level of remuneration, training and development, a good career path and flexible working conditions.
In addition, the research found that half of employees surveyed feel their skills are being under utilised, despite 23 per cent of those surveyed having up-skilled during the last 18 months. This group has become known as Generation R.
During the economic downturn, a third of permanent staff and a fifth of interims and contractors have up-skilled to cover additional responsibilities, often because organisations have not hired new staff. The recession has also resulted in around 10 per cent of people taking up positions that do not fully utilise their skills.
Brian Wilkinson, head of Randstad UK, said: Our report highlights that there is a gap between what organisations think will motivate their key talent to stay with them and what their employees actually say will retain them. The research also showed that a quarter of workers, who are not actively looking, would consider changing employer if something attractive came up. It is important that organisations act now to resolve this gulf in understanding, otherwise they risk losing talented people who have up-skilled during the recession and made themselves more valuable.
For many organisations it will be a fine balancing act between investing to hold on to key staff and minimising the overall labour cost base by building in more flexible employment strategies. In this complex market, we are finding that many organisations are turning to us for advice on appropriate remuneration packages and retention strategies.
Wilkinson added: While organisations are focusing on managing the realities of today, they mustnt lose sight of the long-term trends which point towards skills shortages, particularly as the number of people of working age declines and the population ages. Raising the retirement age will help organisations, but many will also need to adopt human resource strategies that make greater use of temporary and interim skills, as well as technology. Remote working has been spoken about for many years, but many people will expect to do more work this way in the future, so employers will need to adapt to access the best talent.
Randstads World of Work features in the companys multi-million integrated national marketing campaign, which includes prime time advertisements on national television, full page colour advertisements in daily newspapers, business magazines and specialist professional sector titles, and prominent positions at major airports across the country.
World of Work is available at www.randstad.co.uk.