With the increasing integration
of the global economy, businesses around the world are finding it increasingly
difficult to retain employees says a new study by global HR consulting firm, a
new study by Watson Wyatt Worldwide conducted jointly with WorldatWork, an international
association of human resource professionals.
large majority of companies in the United States and around the world are struggling
to attract and retain top-performing and critical-skill workers, according to,
a leading global consulting firm,. Furthermore, many employers do not fully understand
why workers join or leave an organization, an obstacle that greatly increases
the challenge of finding and keeping good employees.
of three companies worldwide report difficulty attracting top-performing workers,
while a full 70 per cent have difficulty attracting critical-skill employees,
according to the 2007/2008 Global Strategic Rewards study.
trends show remarkably little variance around the world. In addition, more than
half of companies report difficulty retaining top-performing (52 per cent) and
critical-skill (56 per cent) workers. The United States has the highest median
voluntary turnover rate, at 11 per cent, while Latin America has the lowest, at
5 per cent. The study results are based on a survey of 946 companies and a complementary
survey of 13,000 employees.
and retaining the right employees is a challenge for employers globally,"
said Laura Sejen, global director of strategic rewards for Watson Wyatt. "Employers
that are best at building and maintaining the right work force are often the best
at aligning workers'' rewards with the company''s goals. Their performance management
programs clearly communicate what workers need to do to get ahead and to improve
company performance. This builds a sense of teamwork that makes it easier to retain
employees, as well as attract high-potential newcomers."
by companies to limit turnover appear to be hampered by an incomplete understanding
of employee priorities. For example, workers rank stress as a top reason they
would leave their company, but it is not even among the top five reasons that
employers cited. Instead, employers cite insufficient pay and lack of career development
and promotion opportunities.
- employer disconnect on "why employees leave organizations" (Global
(37 per cent)
(52 per cent)
(33 per cent)
(47 per cent)
(26 per cent)
(45 per cent)
(23 per cent)
with supervisor / manager
(35 per cent)
/ life balance
(22 per cent)
/ life balance
(24 per cent)
study found that when employees are satisfied with stress levels and work/life
balance, 86 per cent are more inclined to stay with their company (versus 64 per
cent when dissatisfied) and 88 per cent are more likely to recommend it as a place
to work (versus 55 per cent when dissatisfied).
the frenetic pace of modern business is taking its toll on employees," said
Adam Sorensen, global total rewards practice leader at WorldatWork. "There''s
no question that employees are more likely to leave or speak badly of their workplace
if they feel overburdened. Companies that take steps to ensure that stress levels
are not onerous will save money in the long run by reducing attrition."
study also found that to attract, retain and motivate the best employees, companies
must clearly communicate expectations about rewards and then deliver as promised.
More than two-thirds (69 per cent) of employees who say their employers succeed
at both promising and delivering rewards are committed to their company and motivated
to help it succeed, versus about one-fourth of workers overall. These employees
also are more likely to be top performers.
setting expectations and delivering on the reward promise is a formula for having
a dedicated, productive workforce. When workers see that their performance has
a real impact on rewards and that management follows through, employees become
more committed and confident about the opportunities with their employer,"
findings from the Global Rewards study:
compensation: Globally, companies are making more workers eligible to participate
in incentive compensation programs, although nearly one-half of employers also
raised the financial targets that must be met to earn those bonus rewards.
management: Roughly one-half of companies say their managers do a good job at
performance management. Managers at U.S. companies received the lowest ratings,
while those in Asia-Pacific received the highest.
Wyatt''s global services include: managing the cost and effectiveness of employee
benefit programs; developing attraction, retention and reward strategies; advising
pension plan sponsors and other institutions on optimal investment strategies;
providing strategic and financial advice to insurance and financial services companies;
and delivering related technology, outsourcing and data services.
in 1955, WorldatWork is an association of human resource professionals from Fortune
500 and other leading organizations worldwide that provides practitioners with
training and education to effectively design and implement strategies and practices
in total rewards, including compensation, benefits, work-life, recognition, and