Note From Jim:
Hiring Trends. In seeking out best-in-class talent, are you finding candidates to be more reticent about relocation? If so, why? This very interesting WSJ article contains trend data which provides great insights for employers. Reading the entire article is a must. For enticement purposes, here are some of its key points:
Excerpts:
About 3.9% of the population, or 11.8 million people, moved to a different county in 2011, new Census figures show. That was the highest level since before the recession, and up from 3.5% in 2010 and 2009—the lowest level since the government began the tally in 1948.
Movement between counties largely reflects people moving because of jobs, demographers said. Overall, the increase signals both a healthier economy and future growth because it means more workers are being matched with jobs that suit their skills.
However, the 3.9% rate remains low historically
Among those moving more were 25-to-29-year-olds, indicating that many young people who were stymied by the weak labor market of recent years were finding jobs and moving on with their lives,...
Retirees also began to move more in 2011... Among the states that gained population in 2011 from domestic moves—rather than from immigration or births—were Florida and Nevada...
The U.S. rate of movement between counties peaked at 7.1% in 1950 and stayed above 6% through 1991.
The U.S. rate drifted lower in the 1990s and fell steeply through the 2000s. The 2011 increase in inter-county moves was the first in a decade
The U.S. mobility rate—a broader measure that includes movement of any distance—also declined during the 2000s
The U.S. is almost alone among developed countries in experiencing this decline
Several factors could be contributing to the long-term decline in U.S. movement between counties. It could be partly due to the aging of the population, with middle-aged workers and retirees less likely to move than people in their 20s, some economists say. In addition, the increase in two-earner households has made it harder for some families to relocate.... the long-term trend appears to be linked to a decline in pay increases that workers receive when they switch employers. Smaller raises give workers less incentive to switch jobs and move house.... "It suggests that people have fewer choices," Ms. Wozniak said, which also leads to employers having fewer job candidates. "You're constrained in some way and that may mean you're not reaching your full potential as a worker, as a firm or as an economy."
[Demographics:] people ages 18 through 24 move around more than people in other age groups. People born in the U.S. move at a slightly higher rate than foreign-born residents. The rate is lower for households with two earners than one, and for those with children than those without. And the rate rises with the level of a person's education, with college graduates moving to a different state at roughly twice the rate of high school graduates.
Access Full Article: Americans Relocate More Amid Torpid Recovery - WSJ.com
Showing posts with label Hiring Trends Sentiment And Attitudes. Show all posts
Showing posts with label Hiring Trends Sentiment And Attitudes. Show all posts
Wednesday, January 9, 2013
Monday, December 24, 2012
3 Ways To Reduce Bad Hires - Recruiter.com
Note From Jim:
3 Ways To Reduce Bad Hires
As you'll note in the attached article, prioritizing "Quality of Hire" over "Speed Of Hire" will likley become the more compelling metric of staffing success. See Below.
Excerpts:
70 percent of employers have reported that they have been affected by a bad hire this year. And what constituted a bad hire?
3 Ways To Reduce Bad Hires
As you'll note in the attached article, prioritizing "Quality of Hire" over "Speed Of Hire" will likley become the more compelling metric of staffing success. See Below.
Excerpts:
70 percent of employers have reported that they have been affected by a bad hire this year. And what constituted a bad hire?
1.Employee didn’t produce the proper quality of work – 67 percent... set out several changes to a hiring process that can raise quality and minimize bad hires, while at the same time being mindful, but not held hostage to the need for speed.
2.Employee didn’t work well with other employees – 60 percent
3.Employee had a negative attitude – 59 percent
4.Employee had immediate attendance problems – 54 percent
5.Customers complained about the employee – 44 percent
6.Employee didn’t meet deadlines – 44 percent
1. Prioritize quality over speedAccess Article: http://www.recruiter.com/i/3-ways-to-reduce-bad-hires/?utm_source=twitterfeed&utm_medium=linkedin
2. Focus on employee referral
3. Focus on the softer competencies during selection
Thursday, October 11, 2012
Sixty-Nine Percent of Full-time Workers Regularly Search for New Job Opportunities, CareerBuilder Study Finds
Half of Workers Say They Just Have a Job, Not a Career
CHICAGO, Oct. 10, 2012 /PRNewswire/ -- Having instant access to so many digital resources has turned today's workers into perpetual job seekers, according to a new study by CareerBuilder and Inavero. Sixty-nine percent of full-time workers reported that searching for new job opportunities is part of their regular routine. Thirty percent said job searching is a weekly activity. The survey included 1,078 full-time workers across industries and company sizes in the U.S. and Canada.
Infographic: http://cb.com/SytzW8
"Digital behavior has blurred the distinction between an active and a passive job candidate," said Brent Rasmussen, President of CareerBuilder North America. "The majority of workers are regularly exposed to new job opportunities and are willing to consider them. They may not leave their jobs right away, but they're keeping aware of possibilities and planning for their next career move."
In addition to heightened awareness about job openings, the ongoing pursuit of other positions is also driven by the perception of the overall work experience. Fifty-three percent of workers said they feel like they just have a job, not a career.*
Millennials Vs. Baby Boomers
Comparing age groups, Millennials are much more likely to seek greener pastures than seasoned workers. Seventy-nine percent of Millennials actively search for or are open to new jobs compared to 67 percent of Baby Boomers. Baby Boomers tend to stay in a position for eleven years on average while Millennials typically stay for three years.
How Workers Shop for Jobs
Workers often utilize more resources in job hunting than in some other activities that impact their households. On average, workers reported they use approximately 15 sources when searching for a job. This compares to an average of 12 sources for researching insurance providers, 11 sources for researching banks and 10 sources for researching vacations.
"Workers approach their job search much like a consumer purchase, using multiple avenues to evaluate potential employers months before they take action and apply to positions," Rasmussen added. "It's important for companies to engage candidates at every touch point."
The majority of workers primarily come across new jobs in three ways:
Online search – 74 percentOnce they've discovered job openings, they'll check out social media and company Web sites and conduct general searches to dig deeper into the company's culture, market standing and new developments. Prior to applying:
Traditional networking – 68 percent
Job boards – 67 percent
81 percent will research companies on social and professional networksFor more information, visit www.careerbuilder.com/candidatebehavior
74 percent will read news about the company online
74 percent will read the company's Web site
*CareerBuilder and Harris Interactive© survey of 3,976 full-time U.S. workers completed in September 2012.
Survey Methodology
This survey was conducted online within the U.S. and Canada by Inavero on behalf of CareerBuilder among 1,078 job seekers (employed full-time, not self-employed seeking a job or non-employed seeking a job). The study was fielded between March 28 and March 30, 2012 (percentages for some questions are based on a subset, based on their responses to certain questions). With a pure probability sample of 1,078, one could say with a 95 percent probability that the overall results have a sampling error of +/-2.98 percent. Sampling error for data from sub-samples is higher and varies.
About CareerBuilder®
CareerBuilder is the global leader in human capital solutions, helping companies target and attract their most important asset - their people. Its online career site, CareerBuilder.com®, is the largest in the United States with more than 24 million unique visitors, 1 million jobs and 49 million resumes. CareerBuilder works with the world's top employers, providing resources for everything from employment branding and talent intelligence to recruitment support. More than 10,000 websites, including 140 newspapers and broadband portals such as MSN and AOL, feature CareerBuilder's proprietary job search technology on their career sites. Owned by Gannett Co., Inc. (NYSE: GCI), Tribune Company and The McClatchy Company (NYSE: MNI), CareerBuilder and its subsidiaries operate in the United States, Europe, South America, Canada and Asia. For more information, visit www.careerbuilder.com.
Media Contact
Jennifer Grasz
773-527-1164
Jennifer.Grasz@careerbuilder.com
http://www.twitter.com/CareerBuilderPR
SOURCE CareerBuilde
RELATED LINKS
http://www.careerbuilder.com
PR Newswire (http://s.tt/1pFps)
Thursday, May 31, 2012
The Incredible Disappearing Office - The Conference Board
Press Release / News - The Conference Board
29 May, 2012
NEW YORK, May 29, 2012…According to a new report from The Conference Board, the proportion of employees who work predominately from home (or another remote location) has, over the last decade, more than tripled in many industries, while nearly doubling nationwide among all full-time (non–self-employed) U.S. workers. Drawn from a number of recent surveys by the U.S. Census Bureau and private sources, The Incredible Disappearing Office : Making Telework Work finds employees taking more frequent advantage of such workplace flexibility across the board, with 84 percent of employees who telework more than once per month now working remotely at least one day per week. In 2008, that number was 72 percent.
Amy Lui Abel, director of human capital research at The Conference Board and a co-author of the report, explained: “A confluence of factors, led by the rapid expanse of sophisticated, secure, and relatively inexpensive communication technologies, has sparked a quiet revolution in where and how many Americans do their jobs. To take full advantage of the opportunities teleworking provides—while avoiding the many potential pitfalls—employers and employees must engage in an open dialog that establishes the mutual expectations and responsibilities that come with this new workplace culture. Our report should serve as a catalyst for beginning that conversation.”
Not Just for Writers and Door-to-Door Salesmen Anymore
The latest research finds that teleworking rates (just over 2 percent nationwide) remain highest in occupations traditionally associated with the practice—including child care workers (9.1% in 2010), writers and authors (9.3%), and sales representatives (10.8%). The fastest growth, however, has been outside these familiar work-from-home roles, with the most dramatic increases seen in computer-related positions and others reliant on remote access to technical systems. The advancements in home networking over the last decade have been accompanied by huge teleworking gains among records clerks, 5.5% of whom teleworked in 2008–10 (up 516% since 2001–2003); insurance underwriters (4.5%, up 275%); lawyers (2.0%, up 166%); computer software developers (6.1%, up 127%); and many similar professions.
These trends are fundamentally altering the profile of the average teleworker. Where employees of non-profit organizations were most likely to telework in 2000, by 2010 the for-profit sector had taken the lead. It may be unsurprising that workplace flexibility appeals both to older workers nearing (or delaying) retirement and Gen-Y new hires for whom virtual presence and multichannel communication are second nature. Steady technical refinement, however, has made teleworking an increasingly attractive business proposition as well. As a case study, Making Telework Work cites IBM’s long-term holistic strategy, which grew out of the 1970s and the idea of installing access “terminals” in employees’ homes. By 1995, 10,000 IBM employees were mobile, allowing the company to move from a traditional 1:1 workspace-to-worker ratio to 1:4. In just that first year, a $41.5 million investment in worker training returned $74 million in savings.
With today’s significantly cheaper, lighter-weight technology, organizations without IBM’s expertise can now achieve similar savings. It is little wonder, then, that the federal government is embracing the approach. Signed into law on December 9, 2010, the Telework Enhancement Act (TEA) established a framework of identifying and training eligible employees, backed by appropriate policy and support, effective management oversight, and timely reporting; it offers a model not only for public agencies but also private organizations seeking to implement their own telework programs.
Achieving Work–Life Balance when Home is Where the Job Is
In surveys, teleworkers cite a number of obvious lifestyle benefits. With no commute, employees enjoy time with loved ones during precious morning and evening hours. Based from home, they gain the flexibility to adjust their schedules as job and personal demands arise. Likewise, teleworkers often note improved performance and higher productivity, with the ability to focus on work priorities free of the stress of distractions and office politics.
At the same time, this very autonomy can have distinct drawbacks. Teleworkers may feel cut-off from their colleagues and weakened in their ability to influence both day-to-day decisions and larger strategic plans. They often lack sufficient professional and administrative support and fear that being “out of sight, out of mind” keeps them from being properly recognized and rewarded by management. With meetings and group projects more difficult to coordinate, teleworkers also risk resentment from office-based colleagues, who may assume additional responsibilities in their absence. Finally, the same “always on” technology that makes the modern home office possible can mean difficulties setting boundaries between home and work time, setting the stage for potential overwork and burnout.
Nurturing the Telework Ethic
According to Making Telework Work, extensive, proactive planning from the top is key to reaping the significant cost savings and worker-satisfaction gains of teleworking while maintaining organization-wide morale and cohesion. Whether opportunities for telework are reserved for the best-performing employees, promoted across an organization, or used to attract standout applicants from a wider talent pool (such as disabled veterans, semi-retired experts, and parents with young children), leaders must establish formal, transparent guidelines if the “virtual office” is to be a real success.
“Research concurs that the dual lynchpins of effective teleworking are strong management and robust IT,” explained co-author Gad Levanon, director of macroeconomic research at The Conference Board. “With support from HR, managers at all levels must make the ‘mental shift’ to trusting that employees are getting the job done without seeing them every day—and to have the strength to act decisively when they’re not. On the technology side, the right hardware and software choices backed up by abundant support staff can make the difference between a seamless transition and hundreds or thousands of man-hours lost to bugs and faulty connections.”
From these prerequisites, The Incredible Disappearing Office: Making Telework Work offers a guideline for “making telework work.” The report details best practices for:
Read this report http://www.conference-board.org/press/pressdetail.cfm?pressid=4498
29 May, 2012
NEW YORK, May 29, 2012…According to a new report from The Conference Board, the proportion of employees who work predominately from home (or another remote location) has, over the last decade, more than tripled in many industries, while nearly doubling nationwide among all full-time (non–self-employed) U.S. workers. Drawn from a number of recent surveys by the U.S. Census Bureau and private sources, The Incredible Disappearing Office : Making Telework Work finds employees taking more frequent advantage of such workplace flexibility across the board, with 84 percent of employees who telework more than once per month now working remotely at least one day per week. In 2008, that number was 72 percent.
Amy Lui Abel, director of human capital research at The Conference Board and a co-author of the report, explained: “A confluence of factors, led by the rapid expanse of sophisticated, secure, and relatively inexpensive communication technologies, has sparked a quiet revolution in where and how many Americans do their jobs. To take full advantage of the opportunities teleworking provides—while avoiding the many potential pitfalls—employers and employees must engage in an open dialog that establishes the mutual expectations and responsibilities that come with this new workplace culture. Our report should serve as a catalyst for beginning that conversation.”
Not Just for Writers and Door-to-Door Salesmen Anymore
The latest research finds that teleworking rates (just over 2 percent nationwide) remain highest in occupations traditionally associated with the practice—including child care workers (9.1% in 2010), writers and authors (9.3%), and sales representatives (10.8%). The fastest growth, however, has been outside these familiar work-from-home roles, with the most dramatic increases seen in computer-related positions and others reliant on remote access to technical systems. The advancements in home networking over the last decade have been accompanied by huge teleworking gains among records clerks, 5.5% of whom teleworked in 2008–10 (up 516% since 2001–2003); insurance underwriters (4.5%, up 275%); lawyers (2.0%, up 166%); computer software developers (6.1%, up 127%); and many similar professions.
These trends are fundamentally altering the profile of the average teleworker. Where employees of non-profit organizations were most likely to telework in 2000, by 2010 the for-profit sector had taken the lead. It may be unsurprising that workplace flexibility appeals both to older workers nearing (or delaying) retirement and Gen-Y new hires for whom virtual presence and multichannel communication are second nature. Steady technical refinement, however, has made teleworking an increasingly attractive business proposition as well. As a case study, Making Telework Work cites IBM’s long-term holistic strategy, which grew out of the 1970s and the idea of installing access “terminals” in employees’ homes. By 1995, 10,000 IBM employees were mobile, allowing the company to move from a traditional 1:1 workspace-to-worker ratio to 1:4. In just that first year, a $41.5 million investment in worker training returned $74 million in savings.
With today’s significantly cheaper, lighter-weight technology, organizations without IBM’s expertise can now achieve similar savings. It is little wonder, then, that the federal government is embracing the approach. Signed into law on December 9, 2010, the Telework Enhancement Act (TEA) established a framework of identifying and training eligible employees, backed by appropriate policy and support, effective management oversight, and timely reporting; it offers a model not only for public agencies but also private organizations seeking to implement their own telework programs.
Achieving Work–Life Balance when Home is Where the Job Is
In surveys, teleworkers cite a number of obvious lifestyle benefits. With no commute, employees enjoy time with loved ones during precious morning and evening hours. Based from home, they gain the flexibility to adjust their schedules as job and personal demands arise. Likewise, teleworkers often note improved performance and higher productivity, with the ability to focus on work priorities free of the stress of distractions and office politics.
At the same time, this very autonomy can have distinct drawbacks. Teleworkers may feel cut-off from their colleagues and weakened in their ability to influence both day-to-day decisions and larger strategic plans. They often lack sufficient professional and administrative support and fear that being “out of sight, out of mind” keeps them from being properly recognized and rewarded by management. With meetings and group projects more difficult to coordinate, teleworkers also risk resentment from office-based colleagues, who may assume additional responsibilities in their absence. Finally, the same “always on” technology that makes the modern home office possible can mean difficulties setting boundaries between home and work time, setting the stage for potential overwork and burnout.
Nurturing the Telework Ethic
According to Making Telework Work, extensive, proactive planning from the top is key to reaping the significant cost savings and worker-satisfaction gains of teleworking while maintaining organization-wide morale and cohesion. Whether opportunities for telework are reserved for the best-performing employees, promoted across an organization, or used to attract standout applicants from a wider talent pool (such as disabled veterans, semi-retired experts, and parents with young children), leaders must establish formal, transparent guidelines if the “virtual office” is to be a real success.
“Research concurs that the dual lynchpins of effective teleworking are strong management and robust IT,” explained co-author Gad Levanon, director of macroeconomic research at The Conference Board. “With support from HR, managers at all levels must make the ‘mental shift’ to trusting that employees are getting the job done without seeing them every day—and to have the strength to act decisively when they’re not. On the technology side, the right hardware and software choices backed up by abundant support staff can make the difference between a seamless transition and hundreds or thousands of man-hours lost to bugs and faulty connections.”
From these prerequisites, The Incredible Disappearing Office: Making Telework Work offers a guideline for “making telework work.” The report details best practices for:
Building strong team relationships that bring together teleworkers and others
Building a strong community of teleworkers that can share experiences and offer advice online or in-person
Promoting an organizational culture that recognizes the needs and talents of teleworkers
Growing the technical literacy of managers so they “buy in” to advantages of some employees working remotely and can identify potential telework opportunities
Refining performance and reward systems to maximize individual initiative and minimize “slacking off” and trust issues
Creating established no-meeting times or “isolation zones” to ease information overload for all employees
Implementing flexible policies tailored to family needs for retaining talented workers
Integrating support for traveling workers as part of a larger teleworking program
Broadening recruitment to attract talent especially well served by telework
Read this report http://www.conference-board.org/press/pressdetail.cfm?pressid=4498
Thursday, May 3, 2012
As Job Market Improves, Candidates Notice - MRINetwork First Friday Preview
MRINetwork First Friday Preview
Volume V, Issue 4
May 2012
In the depths of the recession, as unemployment rates were rising and everyone knew someone who was being affected, “It’s better than no job at all” became a common refrain across the factory floors and offices of America. While it was a poor retention strategy, it was a worse recruiting strategy and now, with the economy on the mend, candidates are no longer falling for it.
“Candidates now know—as much, if not more than hiring managers—that the market is improving,” says Rob Romaine, president of MRINetwork. “Top candidates are getting multiple offers, and those who don’t like what they hear from one employer are more frequently willing to wait for another suitor.”
Employment growth was below expectations in March, with just 120,000 positions added compared to more than 200,000 in some projections. Though, that had followed four months in which more than a million positions were added collectively. The rate of growth is expected to remain decidedly slower for the remainder of the year. However, short of the U.S. economy slipping back into to a major recession—something almost no economist is projecting—the labor market is going to remain competitive.
“It’s dangerous to underestimate the competitiveness of the labor market. Companies are pursuing plans, bidding on business, and making projections, only to later realize that it is taking many months for their internal HR departments to fill the roles and often at higher starting salaries than expected,” notes Romaine.
The job openings rate has risen from 1.8 percent in the worst of the recession to 2.5 percent in February. Over the same time, the hires rate has risen from 2.8 to 3.3 percent, while the separations rate has fallen from 3.5 to 3.1 percent. While the positions available and being filled span almost all sectors of the economy, the bulk of employees being hired share one thing in common: four-year college degrees.
Since March of 2011, total employment by those with a Bachelor’s degree or higher has risen by more than 1 million positions. Total employment by those with less than a Bachelor’s degree, though, has actually shrunk by 218,000 positions. The unemployment rate for those in management, professional, and related occupations has fallen to 4.2 percent, and when you look at more technical fields, the rate begins to approach full employment.
“Candidates have realized how rare a commodity they are, but when an employer isn’t making them feel courted, someone else will,” says Romaine. “It’s not that top performers are demanding the red carpet treatment during the hiring process, but when they have multiple offers, the style of the process can be as important as the substance of the opportunity.”
Volume V, Issue 4
May 2012
In the depths of the recession, as unemployment rates were rising and everyone knew someone who was being affected, “It’s better than no job at all” became a common refrain across the factory floors and offices of America. While it was a poor retention strategy, it was a worse recruiting strategy and now, with the economy on the mend, candidates are no longer falling for it.
“Candidates now know—as much, if not more than hiring managers—that the market is improving,” says Rob Romaine, president of MRINetwork. “Top candidates are getting multiple offers, and those who don’t like what they hear from one employer are more frequently willing to wait for another suitor.”
Employment growth was below expectations in March, with just 120,000 positions added compared to more than 200,000 in some projections. Though, that had followed four months in which more than a million positions were added collectively. The rate of growth is expected to remain decidedly slower for the remainder of the year. However, short of the U.S. economy slipping back into to a major recession—something almost no economist is projecting—the labor market is going to remain competitive.
“It’s dangerous to underestimate the competitiveness of the labor market. Companies are pursuing plans, bidding on business, and making projections, only to later realize that it is taking many months for their internal HR departments to fill the roles and often at higher starting salaries than expected,” notes Romaine.
The job openings rate has risen from 1.8 percent in the worst of the recession to 2.5 percent in February. Over the same time, the hires rate has risen from 2.8 to 3.3 percent, while the separations rate has fallen from 3.5 to 3.1 percent. While the positions available and being filled span almost all sectors of the economy, the bulk of employees being hired share one thing in common: four-year college degrees.
Since March of 2011, total employment by those with a Bachelor’s degree or higher has risen by more than 1 million positions. Total employment by those with less than a Bachelor’s degree, though, has actually shrunk by 218,000 positions. The unemployment rate for those in management, professional, and related occupations has fallen to 4.2 percent, and when you look at more technical fields, the rate begins to approach full employment.
“Candidates have realized how rare a commodity they are, but when an employer isn’t making them feel courted, someone else will,” says Romaine. “It’s not that top performers are demanding the red carpet treatment during the hiring process, but when they have multiple offers, the style of the process can be as important as the substance of the opportunity.”
Friday, April 20, 2012
CEO Challenge 2012 Reveals Critical Link Between Innovation and Human Capital - Governance Center Blog
Apr 19 2012
The top five challenges facing business leaders worldwide this year are Innovation, Human Capital, Global Political/Economic Risk, Government Regulation, and Global Expansion, according to nearly 800 chief executives, presidents and chairmen from leading companies in Asia, Europe and the United States who took part in the Conference Board CEO Challenge 2012.
The Conference Board has conducted the CEO Challenge survey every year since 1999, asking top executives across the globe and from many different industries to identify and rank their most critical business challenges and their strategies for addressing each one.
The 2012 survey report, Risky Business: Focusing on Innovation and Talent in a Volatile World, which was published in March, was authored by three Conference Board executives: Charles Mitchell, executive director for knowledge content and quality; Rebecca Ray, senior vice president of human capital; and Bart van Ark, executive vice president and chief economist. Through the combination of their insight and the candid responses of those who were surveyed, the report provides an in-depth look at global and regional business trends and a dynamic picture of the strategic thinking of leading executives on three continents.
Although the top five business challenges are clear when the executives’ responses are viewed collectively, the survey also reveals sharp differences from region to region, as shown by the following excerpt from the report:
The varying speed of economic recovery in the world’s regions, the lack of a qualified labor pool in many geographies and industries, and the peculiarities of regional cultures, customers and government attitudes means that CEOs in Asia, Europe and the United States each see a unique set of challenges that reflects the business realities they face locally and globally. Only Innovation and Global Political/Economic Risk make the top five challenges in all three regions.
United States – For U.S. CEOs, the biggest challenges reside outside the corporate walls. Faced with a divided Congress and political inertia regarding national debt levels and taxation, as well as the uncertainty of pending legislation that may significantly affect business models and healthcare costs, U.S. CEOs ranked Government Regulation first. Cost Optimization was fifth, a telltale sign that there is less than full confidence that the economic recovery can be sustained over time.
Europe – Against a backdrop of government cutbacks, reduced revenue, recession fears, and ticking demographic and pension time bombs, the focus of CEOs in Europe is on Global Political/Economic Risk—their top challenge. CEOs in the region see a combination of Innovation, Cost Optimization and Global Expansion as a way to fuel top- and bottom-line growth in a volatile business climate. Due to weak growth, CEOs are keeping a careful watch on the bottom line in a return to the frugal attitudes that characterized the 2008/2009 recession.
Asia – CEOs in Asia are focused on the region’s relatively high-growth business environment. Asian CEOs ranked Innovation and Human Capital their top two challenges. Their selection of Innovation as number one coincides with an explosion of R&D expenditure in the region. The high ranking of Human Capital underscores the view that the continuation of the extraordinary growth trajectory in the Asia-Pacific region will require solutions to such human capital issues as attracting innovative talent and developing effective leaders.
Innovation was on the minds of CEOs in all regions and industries, yet while executives continued to view technology as the leading driver of innovation, the survey shows that they also recognize the critical link between innovation and human capital—the role that talented people play in creating and nurturing innovative ideas and bringing them to market.
As the report observes:
Ranked as the second most critical challenge globally in 2012, Human Capital is also the key to conquering this year’s top-ranked challenge of Innovation. Of all of the highest rated challenges, none is so heavily dependent upon effectively addressing Human Capital issues as Innovation.
In addition to examining key challenges and strategies in Asia, Europe and the United States, the report also gives special attention to India and China, two emerging economies with enormous influence on global markets due to their rapid economic growth, large populations and changing demographics. Companies in India and China operate in very different business environments, yet CEOs in both countries rank Human Capital as their number-one challenge.
If India and China, the world’s two most populous countries, can succeed in developing their billions of people into a creative, highly skilled and innovative workforce, it will have far-reaching consequences for the global economy.
The CEO Challenge 2012 report is complimentary to members and can be downloaded now. The Conference Board is also offering a series of CEO Challenge Business Perspectives Briefings in a number of locations worldwide. Register today for a briefing near yo
Larry West
Access Governance Center Blog, article, the survey report, and other great stuff: http://tcbblogs.org/governance/2012/04/19/ceo-challenge-2012/
The top five challenges facing business leaders worldwide this year are Innovation, Human Capital, Global Political/Economic Risk, Government Regulation, and Global Expansion, according to nearly 800 chief executives, presidents and chairmen from leading companies in Asia, Europe and the United States who took part in the Conference Board CEO Challenge 2012.
The Conference Board has conducted the CEO Challenge survey every year since 1999, asking top executives across the globe and from many different industries to identify and rank their most critical business challenges and their strategies for addressing each one.
The 2012 survey report, Risky Business: Focusing on Innovation and Talent in a Volatile World, which was published in March, was authored by three Conference Board executives: Charles Mitchell, executive director for knowledge content and quality; Rebecca Ray, senior vice president of human capital; and Bart van Ark, executive vice president and chief economist. Through the combination of their insight and the candid responses of those who were surveyed, the report provides an in-depth look at global and regional business trends and a dynamic picture of the strategic thinking of leading executives on three continents.
Although the top five business challenges are clear when the executives’ responses are viewed collectively, the survey also reveals sharp differences from region to region, as shown by the following excerpt from the report:
The varying speed of economic recovery in the world’s regions, the lack of a qualified labor pool in many geographies and industries, and the peculiarities of regional cultures, customers and government attitudes means that CEOs in Asia, Europe and the United States each see a unique set of challenges that reflects the business realities they face locally and globally. Only Innovation and Global Political/Economic Risk make the top five challenges in all three regions.
United States – For U.S. CEOs, the biggest challenges reside outside the corporate walls. Faced with a divided Congress and political inertia regarding national debt levels and taxation, as well as the uncertainty of pending legislation that may significantly affect business models and healthcare costs, U.S. CEOs ranked Government Regulation first. Cost Optimization was fifth, a telltale sign that there is less than full confidence that the economic recovery can be sustained over time.
Europe – Against a backdrop of government cutbacks, reduced revenue, recession fears, and ticking demographic and pension time bombs, the focus of CEOs in Europe is on Global Political/Economic Risk—their top challenge. CEOs in the region see a combination of Innovation, Cost Optimization and Global Expansion as a way to fuel top- and bottom-line growth in a volatile business climate. Due to weak growth, CEOs are keeping a careful watch on the bottom line in a return to the frugal attitudes that characterized the 2008/2009 recession.
Asia – CEOs in Asia are focused on the region’s relatively high-growth business environment. Asian CEOs ranked Innovation and Human Capital their top two challenges. Their selection of Innovation as number one coincides with an explosion of R&D expenditure in the region. The high ranking of Human Capital underscores the view that the continuation of the extraordinary growth trajectory in the Asia-Pacific region will require solutions to such human capital issues as attracting innovative talent and developing effective leaders.
Innovation was on the minds of CEOs in all regions and industries, yet while executives continued to view technology as the leading driver of innovation, the survey shows that they also recognize the critical link between innovation and human capital—the role that talented people play in creating and nurturing innovative ideas and bringing them to market.
As the report observes:
Ranked as the second most critical challenge globally in 2012, Human Capital is also the key to conquering this year’s top-ranked challenge of Innovation. Of all of the highest rated challenges, none is so heavily dependent upon effectively addressing Human Capital issues as Innovation.
In addition to examining key challenges and strategies in Asia, Europe and the United States, the report also gives special attention to India and China, two emerging economies with enormous influence on global markets due to their rapid economic growth, large populations and changing demographics. Companies in India and China operate in very different business environments, yet CEOs in both countries rank Human Capital as their number-one challenge.
If India and China, the world’s two most populous countries, can succeed in developing their billions of people into a creative, highly skilled and innovative workforce, it will have far-reaching consequences for the global economy.
The CEO Challenge 2012 report is complimentary to members and can be downloaded now. The Conference Board is also offering a series of CEO Challenge Business Perspectives Briefings in a number of locations worldwide. Register today for a briefing near yo
Larry West
Access Governance Center Blog, article, the survey report, and other great stuff: http://tcbblogs.org/governance/2012/04/19/ceo-challenge-2012/
Sunday, March 11, 2012
Mixed Signals Still Give Top Performers Confidence
First Friday Preview
FrontLine Analysis By The MRINetwork
March 2012, Volume VI, Issue 3
UNITED STATES
Mixed Signals Still Give Top Performers Confidence
When Fall Fashion Week rolled out in New York in February, many designers were reversing course on their hem lengths—and not always in the same direction. While there were not many mini-skirts, there also were fewer of the full-length gowns than were seen last season. Some designers—most notably Alexander Wang—chose to go with several seemingly low hemlines, but then introduced soaring slits and gaps causing them to almost defy hemline definition.
The hemline index as calculated by Business Inside—yes it is a real index—rose to 44.38 from 35.04 last season. In a time when economic indicators are as plentiful as they are mixed, it may be one of the most apt indicators of the time. Lore says when the economy is good, hemlines rise and when soured, the hemlines fall. While hemlines seem to be going in many directions at once this season, the average is rising—much like the U.S. economy.
While the economy gains speed, workforce managers are feeling the pinch of a tightening talent market. A recent Corporate Executive Board study showed the average number of applications received per position fell to 118 from 187 one year earlier. Of those applications, respondents to the study said just one-third met the basic requirements for the position they were applying for.
Late last year, a survey of C-Level executives around the world by Lloyd’s of London ranked talent and skills shortages as the second-largest risk to their business. In 2009, talent worries were ranked as just the 22nd largest concern.
“The scales of the labor market have clearly shifted over the last six-to-twelve months, and now we are seeing that accelerating in the professional ranks,” says Rob Romaine, president of MRINetwork. “Top talent is no longer looking at a stable job and saying, ‘I’m happy to at least have that.’ Rather, they are opening up when recruiters call and are starting to explore what will really make them happy—financially or otherwise.”
Since early in 2010, the number of people who voluntarily left a position each month has been steadily rising to nearly 2 million, up more than 30 percent from its lows.
“Having employees more interested in pursuing new opportunities is a double-edged sword for organizations,” says Romaine. “It’s going to be hard not to lose some top performers, as they will likely have the most opportunities presented to them. But while the field of top performers who are actively applying for positions is still very low, the numbers who are open to recruiting calls now is above average.”
During the years of tough economic times, the fear of the unknown was enough to keep many top performers in place. Although recent positive employment and economic news has not removed the possibility of another slowdown, it has given the workforce enough confidence to accept the risk associated with changing jobs.
“The economy will continue to be in a fragile place for much of the near future, with profit margins closely guarded and customers highly cost-conscious. Losing key staff or having continuity-of-services issues in this stage of a recovery will be damaging,” notes Romaine. “On the other hand, the worst possible outcome of bringing in top talent right now is that they will take pressure off existing staff, decrease turnover, and put a company in a powerful position to capture market share.”
Provided by MRINetwork www.MRINetwork.com
Edited by Sean Muir (215) 751-1762 Sean.Muir@MRINetwork.com
FrontLine Analysis By The MRINetwork
March 2012, Volume VI, Issue 3
UNITED STATES
Mixed Signals Still Give Top Performers Confidence
When Fall Fashion Week rolled out in New York in February, many designers were reversing course on their hem lengths—and not always in the same direction. While there were not many mini-skirts, there also were fewer of the full-length gowns than were seen last season. Some designers—most notably Alexander Wang—chose to go with several seemingly low hemlines, but then introduced soaring slits and gaps causing them to almost defy hemline definition.
The hemline index as calculated by Business Inside—yes it is a real index—rose to 44.38 from 35.04 last season. In a time when economic indicators are as plentiful as they are mixed, it may be one of the most apt indicators of the time. Lore says when the economy is good, hemlines rise and when soured, the hemlines fall. While hemlines seem to be going in many directions at once this season, the average is rising—much like the U.S. economy.
While the economy gains speed, workforce managers are feeling the pinch of a tightening talent market. A recent Corporate Executive Board study showed the average number of applications received per position fell to 118 from 187 one year earlier. Of those applications, respondents to the study said just one-third met the basic requirements for the position they were applying for.
Late last year, a survey of C-Level executives around the world by Lloyd’s of London ranked talent and skills shortages as the second-largest risk to their business. In 2009, talent worries were ranked as just the 22nd largest concern.
“The scales of the labor market have clearly shifted over the last six-to-twelve months, and now we are seeing that accelerating in the professional ranks,” says Rob Romaine, president of MRINetwork. “Top talent is no longer looking at a stable job and saying, ‘I’m happy to at least have that.’ Rather, they are opening up when recruiters call and are starting to explore what will really make them happy—financially or otherwise.”
Since early in 2010, the number of people who voluntarily left a position each month has been steadily rising to nearly 2 million, up more than 30 percent from its lows.
“Having employees more interested in pursuing new opportunities is a double-edged sword for organizations,” says Romaine. “It’s going to be hard not to lose some top performers, as they will likely have the most opportunities presented to them. But while the field of top performers who are actively applying for positions is still very low, the numbers who are open to recruiting calls now is above average.”
During the years of tough economic times, the fear of the unknown was enough to keep many top performers in place. Although recent positive employment and economic news has not removed the possibility of another slowdown, it has given the workforce enough confidence to accept the risk associated with changing jobs.
“The economy will continue to be in a fragile place for much of the near future, with profit margins closely guarded and customers highly cost-conscious. Losing key staff or having continuity-of-services issues in this stage of a recovery will be damaging,” notes Romaine. “On the other hand, the worst possible outcome of bringing in top talent right now is that they will take pressure off existing staff, decrease turnover, and put a company in a powerful position to capture market share.”
Provided by MRINetwork www.MRINetwork.com
Edited by Sean Muir (215) 751-1762 Sean.Muir@MRINetwork.com
Tuesday, February 21, 2012
Employers Worry About Scarcity of Talent - WorldatWork Newsline
Feb. 7, 2012 — Lack of potential leaders is the most pressing human resource challenge organizations expect to face in 2012, according to a survey by Right Management, the talent and career management experts within ManpowerGroup.
Thirty-one percent of respondents cited their organization’s lack of high-potential leaders, while 23% indicated a shortage of talent at all levels.
Right Management surveyed senior executives at more than 600 firms across the U.S. representing government, non-profit, public and private organizations.
Survey respondents were asked what they expect to be their organization's most pressing HR challenge in 2012:
Defection of top talent is also a ranking concern of many employers, observed Haid. "In fact, for nearly one-in-five of our respondents it's the main worry…losing strong performers to other companies which may be enticing to individuals who may feel stifled with their present employer. This is the kind of concern that HR people lose sleep over."
Contents © 2012 WorldatWork. For more information, contact the Copyright Department at WorldatWork.
Access Source And Its Great Content: http://www.worldatwork.org/waw/adimComment?id=58537&from=ww_editorial_0712
Thirty-one percent of respondents cited their organization’s lack of high-potential leaders, while 23% indicated a shortage of talent at all levels.
Right Management surveyed senior executives at more than 600 firms across the U.S. representing government, non-profit, public and private organizations.
Survey respondents were asked what they expect to be their organization's most pressing HR challenge in 2012:
Latest Year ago"After three years of organizational contraction and less internal investment, companies are taking a hard look at their onboard talent and aren't pleased with what they find," said Michael Haid, senior vice president of talent management for Right Management. "Lean times make it hard for organizations seeking to recruit, retain or develop future leaders. And they're keenly aware of the tough competitive environment they're in and the need to hold onto and build leadership."
Lack of high-potential leaders in the organization
31% 30%
Low engagement and lagging productivity
26% 22%
Shortage of talent at all levels
23% 18%
Defection of top talent to other organizations
19% 30%
Defection of top talent is also a ranking concern of many employers, observed Haid. "In fact, for nearly one-in-five of our respondents it's the main worry…losing strong performers to other companies which may be enticing to individuals who may feel stifled with their present employer. This is the kind of concern that HR people lose sleep over."
Contents © 2012 WorldatWork. For more information, contact the Copyright Department at WorldatWork.
Access Source And Its Great Content: http://www.worldatwork.org/waw/adimComment?id=58537&from=ww_editorial_0712
Friday, December 9, 2011
Lloyd’s Risk Index 2011 - #2 Risk - Talent And Skills Shortage
http://www.lloyds.com/News-and-Insight/Risk-Insight/Lloyds-Risk-Index
INDIVIDUAL RISKS 2011
1 Loss of customers/Cancelled orders
2 Talent and skills shortages (including succession risk)
3 Reputational risk
4 Currency fluctuation
5 Changing legislation
6 Cost and availability of credit
7 Price of material inputs
8 Inflation
9 Corporate liability
10 Excessively strict regulation
11 Rapid technological changes
12 Cyber attacks (malicious)
13 High taxation
14 Failed investment
15 Major asset price volatility
16 Theft of assets/Intellectual Property
17 Fraud and corruption
18 Interest rate change
19 Cyber risks (non-malicious)
20 Poor/incomplete regulation
21 Critical infrastructure failure
22 Government spending cuts
23 Supply chain failure
24 Pollution/environmental liability
25 Soverign Debt
26 Increased protectionism
27 Industrial/workplace accident
28 Energy security
29 Insolvency risk
30 Demographic shift (eg ageing population, youth emigration)
31 Strikes and industrial action
32 Climate change
33 Pandemic
34 Piracy
35 Water scarcity
36 Terrorism
37 Urbanisation
38 Population growth
39 Riots and civil commotion
40 Food security
41 Harmful effects of new technology
42 Flooding
43 Expropriation of assets
44 Earthquake (including tsunami)
45 Abrupt regime change
46 Windstorm (eg hurricane, cyclone, typhoon)
47 Drought
48 Threats to biodiversity
49 Impact of space weather (eg solar flares)
50 Volcanic eruption (including ash)
Access Lloyds Risk Index 2011 Report: http://www.lloyds.com/News-and-Insight/Risk-Insight/Lloyds-Risk-Index
INDIVIDUAL RISKS 2011
1 Loss of customers/Cancelled orders
2 Talent and skills shortages (including succession risk)
3 Reputational risk
4 Currency fluctuation
5 Changing legislation
6 Cost and availability of credit
7 Price of material inputs
8 Inflation
9 Corporate liability
10 Excessively strict regulation
11 Rapid technological changes
12 Cyber attacks (malicious)
13 High taxation
14 Failed investment
15 Major asset price volatility
16 Theft of assets/Intellectual Property
17 Fraud and corruption
18 Interest rate change
19 Cyber risks (non-malicious)
20 Poor/incomplete regulation
21 Critical infrastructure failure
22 Government spending cuts
23 Supply chain failure
24 Pollution/environmental liability
25 Soverign Debt
26 Increased protectionism
27 Industrial/workplace accident
28 Energy security
29 Insolvency risk
30 Demographic shift (eg ageing population, youth emigration)
31 Strikes and industrial action
32 Climate change
33 Pandemic
34 Piracy
35 Water scarcity
36 Terrorism
37 Urbanisation
38 Population growth
39 Riots and civil commotion
40 Food security
41 Harmful effects of new technology
42 Flooding
43 Expropriation of assets
44 Earthquake (including tsunami)
45 Abrupt regime change
46 Windstorm (eg hurricane, cyclone, typhoon)
47 Drought
48 Threats to biodiversity
49 Impact of space weather (eg solar flares)
50 Volcanic eruption (including ash)
Access Lloyds Risk Index 2011 Report: http://www.lloyds.com/News-and-Insight/Risk-Insight/Lloyds-Risk-Index
Talent Shortage: A Top Risk Facing Businesses - Risk Management Monitor
by Emily Holbrook on December 7, 2011 ·
No, it’s not the credit crisis or the looming threat of cyber crime or business continuity during a natural disaster or the overall state of the national economy that keeps American business owners awake at night. It is, according to most, the shortage of talent and skills.
This may seem strange, seeing as were are still experiencing record unemployment numbers — meaning the pool of seemingly qualified employees should be vast to say the least. But in fact, the 2011 Lloyd’s Risk Index found that talent and skills shortage ranked as the number two risk facing American business leaders — shooting up from the number 22 spot in 2009.
“These findings show that talent is now firmly part of the risk lexicon — high levels of unemployment have boosted the quantity of candidates, but employers are still wrestling with the quality. Our own Global Talent Index echoed these concerns and highlighted two factors underscoring this risk: population demographics and skills gaps,” said Kevin Kelly, CEO of Heidrick & Struggles the leadership advisory firm providing executive search and leadership consulting services worldwide.
Are business leaders prepared to handle not only the number two risk on the list, but all 50 in the index? Apparently they are. Respondents said they are more than adequately prepared for 48 out of the 50 risks listed. That is in comparison to 2009, when leaders said they were not adequately prepared for eight of the 40 listed risks. Leaders cited “boosting talent retention” as one of the most overall effective risk management actions taken over the last three years, showing how eager businesses are to retain the staff they have.
Speaking of risk management, when respondents were asked to identify the most effective risk management action their organization had taken over the last three years, they cited the introduction of formal risk management strategies and systems, stating that “risk management is now one of the most important roles in the business community.”
It may have taken the collapse of the U.S. housing market, a worldwide recession and the continuous uncovering of massive fraud to push the idea of risk management to the forefront of global business programs, but at least the discipline is now moving to where it belongs.
And it is apparently now focused on retaining the talent and skills that are greatly needed in a business world full of continuously evolving risks.
Access Source And Its Great Content: http://www.riskmanagementmonitor.com/talent-shortage-a-top-risk-facing-american-businesses/
No, it’s not the credit crisis or the looming threat of cyber crime or business continuity during a natural disaster or the overall state of the national economy that keeps American business owners awake at night. It is, according to most, the shortage of talent and skills.
This may seem strange, seeing as were are still experiencing record unemployment numbers — meaning the pool of seemingly qualified employees should be vast to say the least. But in fact, the 2011 Lloyd’s Risk Index found that talent and skills shortage ranked as the number two risk facing American business leaders — shooting up from the number 22 spot in 2009.
“These findings show that talent is now firmly part of the risk lexicon — high levels of unemployment have boosted the quantity of candidates, but employers are still wrestling with the quality. Our own Global Talent Index echoed these concerns and highlighted two factors underscoring this risk: population demographics and skills gaps,” said Kevin Kelly, CEO of Heidrick & Struggles the leadership advisory firm providing executive search and leadership consulting services worldwide.
Are business leaders prepared to handle not only the number two risk on the list, but all 50 in the index? Apparently they are. Respondents said they are more than adequately prepared for 48 out of the 50 risks listed. That is in comparison to 2009, when leaders said they were not adequately prepared for eight of the 40 listed risks. Leaders cited “boosting talent retention” as one of the most overall effective risk management actions taken over the last three years, showing how eager businesses are to retain the staff they have.
Speaking of risk management, when respondents were asked to identify the most effective risk management action their organization had taken over the last three years, they cited the introduction of formal risk management strategies and systems, stating that “risk management is now one of the most important roles in the business community.”
It may have taken the collapse of the U.S. housing market, a worldwide recession and the continuous uncovering of massive fraud to push the idea of risk management to the forefront of global business programs, but at least the discipline is now moving to where it belongs.
And it is apparently now focused on retaining the talent and skills that are greatly needed in a business world full of continuously evolving risks.
Lloyd's Risk Index 2011
Survey finds Shortage of High Skilled Workers Around the Globe
Access Source And Its Great Content: http://www.riskmanagementmonitor.com/talent-shortage-a-top-risk-facing-american-businesses/
Tuesday, November 8, 2011
Employee Loyalty Declines Worldwide Nonfinancial Factors Drive Employee Motivation
WorldatWork.com Newsline
Oct. 28, 2011 — Employee loyalty is dropping around the world, according to new global analysis of Mercer's What's Working survey. The research, conducted among nearly 30,000 employees in 17 geographic markets between the fourth quarter of 2010 and the second quarter of 2011, shows that the percentage of workers seriously considering leaving their organization has risen since the last time the survey was conducted in each market (between 2003 and 2006 prior to the economic downturn).
In many markets, the increase is 10 percentage points or more. In the US, the increase was 9 points, from 23% in 2005 to 32% in 2010."For U.S.-based multinationals, these findings are concerning, as lackluster engagement is no longer just a U.S. phenomenon," said Mindy Fox, a senior partner at Mercer and the firm's U.S. region leader. "Widespread apathy and high turnover can be detrimental to an organization's business performance, especially in the difficult economic environment we're experiencing as companies are looking to drive productivity and efficiencies."
According to Pete Foley, Ph.D., a principal at Mercer and North American employee research leader, "The overall employment deal is in a state of flux around the world, with employees rethinking what they want out of the employment relationship. Our research shows that, despite the ongoing economic uncertainty, more employees would consider leaving today for a better opportunity."The survey analysis also shows shifting views on other workforce issues that affect engagement. Worldwide, views on pay and performance issues generally improved, while views on employee benefits generally declined. By market, views were mixed on subjects like career opportunity and leadership.
What Motivates Employees?The global analysis also reveals that nonfinancial factors play a prominent role in influencing employee motivation and engagement — a finding that could prove useful to employers facing budget constraints. Workers worldwide say that being treated with respect is the most important factor, followed by work-life balance, type of work, quality of co-workers and quality of leadership.Among financial factors, base pay ranks highest globally, at sixth out of 13 factors. It ranks as the top factor in just one market (Hong Kong) and among the top three most influential factors in four other markets – China, India, Italy and Singapore.
While other financial factors such as benefits and incentive pay can be important to other aspects of the employment deal — attracting, retaining and rewarding employees — Mercer's research shows they are considered less important by employees when it comes to their day-to-day motivation and engagement at work."Employee engagement reflects the total work experience, and a big part of it is how you are treated, what kind of work you do and how you feel about your co-workers, bosses and the general work environment," said Colleen O'Neill, Ph.D., a senior partner at Mercer and the firm's talent leader in the U.S. and Canada.
"Without a doubt, financial factors like pay and benefits are a vital part of the employment deal, especially in the U.S., but employers need to consider and manage the full range of factors to ensure that their workforce is engaged," O'Neill explained. "When financial resources are limited, organizations can leverage these nonfinancial factors to effectively boost employee commitment and productivity."
Results by RegionMercer's research shows that the factors most important to motivation and engagement vary by region:
Americas – In addition to the global top five nonfinancial factors — respect, work-life balance, type of work, quality of co-workers and quality of leadership — working in an environment where employees can provide good service to others ranks highly in importance in North and South America. Base pay ranks as the most influential financial factor.
In the U.S., the importance of financial and nonfinancial factors closely mirrored the global findings. Two areas of note that scored higher than the global average were benefits and working in an environment where you can provide good service to others. Areas below the global average for U.S. employees included learning and development opportunities, promotion opportunities and incentive pay/bonus.
Asia Pacific – Results for this region are less consistent by market compared to the Americas and Europe. Being treated with respect and quality of leadership are cited by employees as most influential to their motivation and engagement at work. Australia shows the widest variation in influence of factors, while financial factors (base pay, incentive pay and benefits) and career-related factors are much more influential in China compared to other markets in the region and globally.
Europe – Results for the seven European countries show striking consistency. Nonfinancial factors (being treated with respect, work-life balance, type of work and quality of co-workers) are considered most important to employee motivation and engagement at work.
In many markets, the increase is 10 percentage points or more. In the US, the increase was 9 points, from 23% in 2005 to 32% in 2010."For U.S.-based multinationals, these findings are concerning, as lackluster engagement is no longer just a U.S. phenomenon," said Mindy Fox, a senior partner at Mercer and the firm's U.S. region leader. "Widespread apathy and high turnover can be detrimental to an organization's business performance, especially in the difficult economic environment we're experiencing as companies are looking to drive productivity and efficiencies."
According to Pete Foley, Ph.D., a principal at Mercer and North American employee research leader, "The overall employment deal is in a state of flux around the world, with employees rethinking what they want out of the employment relationship. Our research shows that, despite the ongoing economic uncertainty, more employees would consider leaving today for a better opportunity."The survey analysis also shows shifting views on other workforce issues that affect engagement. Worldwide, views on pay and performance issues generally improved, while views on employee benefits generally declined. By market, views were mixed on subjects like career opportunity and leadership.
What Motivates Employees?The global analysis also reveals that nonfinancial factors play a prominent role in influencing employee motivation and engagement — a finding that could prove useful to employers facing budget constraints. Workers worldwide say that being treated with respect is the most important factor, followed by work-life balance, type of work, quality of co-workers and quality of leadership.Among financial factors, base pay ranks highest globally, at sixth out of 13 factors. It ranks as the top factor in just one market (Hong Kong) and among the top three most influential factors in four other markets – China, India, Italy and Singapore.
While other financial factors such as benefits and incentive pay can be important to other aspects of the employment deal — attracting, retaining and rewarding employees — Mercer's research shows they are considered less important by employees when it comes to their day-to-day motivation and engagement at work."Employee engagement reflects the total work experience, and a big part of it is how you are treated, what kind of work you do and how you feel about your co-workers, bosses and the general work environment," said Colleen O'Neill, Ph.D., a senior partner at Mercer and the firm's talent leader in the U.S. and Canada.
"Without a doubt, financial factors like pay and benefits are a vital part of the employment deal, especially in the U.S., but employers need to consider and manage the full range of factors to ensure that their workforce is engaged," O'Neill explained. "When financial resources are limited, organizations can leverage these nonfinancial factors to effectively boost employee commitment and productivity."
Results by RegionMercer's research shows that the factors most important to motivation and engagement vary by region:
Americas – In addition to the global top five nonfinancial factors — respect, work-life balance, type of work, quality of co-workers and quality of leadership — working in an environment where employees can provide good service to others ranks highly in importance in North and South America. Base pay ranks as the most influential financial factor.
In the U.S., the importance of financial and nonfinancial factors closely mirrored the global findings. Two areas of note that scored higher than the global average were benefits and working in an environment where you can provide good service to others. Areas below the global average for U.S. employees included learning and development opportunities, promotion opportunities and incentive pay/bonus.
Asia Pacific – Results for this region are less consistent by market compared to the Americas and Europe. Being treated with respect and quality of leadership are cited by employees as most influential to their motivation and engagement at work. Australia shows the widest variation in influence of factors, while financial factors (base pay, incentive pay and benefits) and career-related factors are much more influential in China compared to other markets in the region and globally.
Europe – Results for the seven European countries show striking consistency. Nonfinancial factors (being treated with respect, work-life balance, type of work and quality of co-workers) are considered most important to employee motivation and engagement at work.
Contents © 2011 WorldatWork. For more information, contact the Copyright Department at WorldatWork.
Access Source And Its Great Content: http://www.worldatwork.org/waw/adimComment?id=56816&from=ww_editorial_4511
Thursday, November 3, 2011
Employee Turnover Expected to Rise in Next Five Years
WorldatWork Newsline
Oct. 13, 2011 — Employee turnover is expected to increase worldwide during the next five years, according to a global survey by Right Management.
Half the survey respondents globally expect higher turnover, said Bram Lowsky, executive vice president Americas at Right Management. "About a third foresees no change, and a minority a decrease…all of which points to greater turnover than organizations have been used to dealing with in the past decade."
Expectations of Higher Turnover in Next Five Years(Percentage anticipating slight or significant increase)
- North America 59%
- Asia Pacific 58%
- Europe 41%
- Global average 49%
Contents © 2011 WorldatWork. For more information, contact the Copyright Department at WorldatWork.
Access Source And Its Content: http://www.worldatwork.org/waw/adimComment?id=56544&from=wg_editorial_4411
Tuesday, October 18, 2011
More US Companies Having Difficulty Attracting Critical Skill Employees
WorldatWork Newsline
Oct. 10, 2011 — With the U.S. economy still unsteady, most U.S. companies are finding it relatively easy to attract or retain workers, with one major exception — critical-skill employees. A new survey from Towers Watson and WorldatWork shows that for the second consecutive year, the number of U.S. companies having difficulty finding and keeping critical-skill workers has increased.
The Towers Watson Talent Management and Rewards Survey, a study of 316 North American companies, including 218 from the United States, also found that nearly two-thirds of respondents expect their employees to work more hours now than they did prior to the recession and see this trend continuing for some time. Additionally, respondents are concerned about the impact that organizational changes they made in response to the recession are having in areas such as employees' work-life balance, productivity and willingness to take risks. Most companies have already made or are planning to make additional changes to their reward and talent management, and other organizational, programs.
According to the survey, nearly six out of 10 U.S. companies (59%) reported problems attracting critical-skill employees this year. That is an increase from 52% last year and 28% in 2009. Forty-two percent also reported difficulty attracting top-performing employees. Additionally, more than one-third (36%) reported difficulty retaining critical-skill employees, an increase from 31% last year and 16% in 2009. Overall, only one in 10 companies is having difficulty attracting or retaining employees generally.
"Companies are taking longer to fill these positions, and more of them are open," said Laura Sejen, global head of rewards consulting at Towers Watson. "There is clearly a greater-than-normal mismatch between the skills employers seek and those that are available in the marketplace. In short, despite the overall weakness in the job market, companies need a more appealing offering to attract critical-skill employees."
Employees Working More HoursNearly two-thirds (65%) of U.S. respondents report that employees have been working more hours over the past three years, and more than half (53%) expect this trend to continue over the next three years. Additionally, about one in three (31%) companies said their employees have been using less of their vacation or personal time off over the past three years.
The survey also found that more than half (56%) of U.S. companies are concerned about the long-term effects that changes they made during the recession will have on their employees’ ability to maintain a healthy balance between work and their personal lives. And more U.S. employers are becoming concerned about employee productivity (39%) and their employees' willingness to take risks (37%). As a result, almost two-thirds (66%) of respondents have made significant changes in the HR area — reward and talent management strategies, organizational structure, job evaluation process and competencies — and many expect to continue to do so.
"In the short run, having employees work extra hours can increase productivity, but in the long run, extended hours can negatively affect employee well-being and retention," said Laurie Bienstock, North America leader of rewards consulting at Towers Watson. "Employees at many organizations are already suffering from change fatigue. As a result, when the labor market does recover, companies can expect a sharp increase in voluntary turnover, especially if they do not address employee concerns, and deliver reward and talent management programs more effectively."
"Employees generally don't mind doing more with less especially when economic conditions are tough," said Ryan Johnson, CCP, vice president of research for WorldatWork. "But when this drags into multiple years, and they start to hear anecdotes of recovery, they become less understanding. At that point, the entire employee value proposition is crucial to retention."
Additional Resource: The Talent Management and Rewards Imperative for 2012: Leading Through Uncertain Times (Towers Watson and WorldatWork Survey)
Contents © 2011 WorldatWork. For more information, contact the Copyright Department at WorldatWork.
Access Source And Its Great Content: http://www.worldatwork.org/waw/adimComment?id=56407&from=ww_editorial_4211
Oct. 10, 2011 — With the U.S. economy still unsteady, most U.S. companies are finding it relatively easy to attract or retain workers, with one major exception — critical-skill employees. A new survey from Towers Watson and WorldatWork shows that for the second consecutive year, the number of U.S. companies having difficulty finding and keeping critical-skill workers has increased.
The Towers Watson Talent Management and Rewards Survey, a study of 316 North American companies, including 218 from the United States, also found that nearly two-thirds of respondents expect their employees to work more hours now than they did prior to the recession and see this trend continuing for some time. Additionally, respondents are concerned about the impact that organizational changes they made in response to the recession are having in areas such as employees' work-life balance, productivity and willingness to take risks. Most companies have already made or are planning to make additional changes to their reward and talent management, and other organizational, programs.
According to the survey, nearly six out of 10 U.S. companies (59%) reported problems attracting critical-skill employees this year. That is an increase from 52% last year and 28% in 2009. Forty-two percent also reported difficulty attracting top-performing employees. Additionally, more than one-third (36%) reported difficulty retaining critical-skill employees, an increase from 31% last year and 16% in 2009. Overall, only one in 10 companies is having difficulty attracting or retaining employees generally.
"Companies are taking longer to fill these positions, and more of them are open," said Laura Sejen, global head of rewards consulting at Towers Watson. "There is clearly a greater-than-normal mismatch between the skills employers seek and those that are available in the marketplace. In short, despite the overall weakness in the job market, companies need a more appealing offering to attract critical-skill employees."
Employees Working More HoursNearly two-thirds (65%) of U.S. respondents report that employees have been working more hours over the past three years, and more than half (53%) expect this trend to continue over the next three years. Additionally, about one in three (31%) companies said their employees have been using less of their vacation or personal time off over the past three years.
The survey also found that more than half (56%) of U.S. companies are concerned about the long-term effects that changes they made during the recession will have on their employees’ ability to maintain a healthy balance between work and their personal lives. And more U.S. employers are becoming concerned about employee productivity (39%) and their employees' willingness to take risks (37%). As a result, almost two-thirds (66%) of respondents have made significant changes in the HR area — reward and talent management strategies, organizational structure, job evaluation process and competencies — and many expect to continue to do so.
"In the short run, having employees work extra hours can increase productivity, but in the long run, extended hours can negatively affect employee well-being and retention," said Laurie Bienstock, North America leader of rewards consulting at Towers Watson. "Employees at many organizations are already suffering from change fatigue. As a result, when the labor market does recover, companies can expect a sharp increase in voluntary turnover, especially if they do not address employee concerns, and deliver reward and talent management programs more effectively."
"Employees generally don't mind doing more with less especially when economic conditions are tough," said Ryan Johnson, CCP, vice president of research for WorldatWork. "But when this drags into multiple years, and they start to hear anecdotes of recovery, they become less understanding. At that point, the entire employee value proposition is crucial to retention."
Additional Resource: The Talent Management and Rewards Imperative for 2012: Leading Through Uncertain Times (Towers Watson and WorldatWork Survey)
Contents © 2011 WorldatWork. For more information, contact the Copyright Department at WorldatWork.
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Wednesday, September 21, 2011
1 in 3 Employees Would Work an Extra Week Annually for Incentive Program
WorldatWork Newsline
Sept. 7, 2011 — Incentive programs that reward employees for meeting performance-based milestones can help bolster performance and morale, according to survey results from Staples Advantage, the B2B division of Staples Inc. Results show that one-third of office workers would even be willing to put in an extra workweek each year if it meant their company would implement one.
Meanwhile, for employees that already participate in company-driven incentive programs, the benefits are clear. These participants say the programs have made them:
- Feel more valued (85%)
- Happier and more motivated at work (70%)
- More loyal to their company (65%)
- More productive and able to get better results (about 60%).
- 30% said they would take on extra responsibilities
- More than 40% would be in favor of forgoing the annual holiday party.
Contents © 2011 WorldatWork. For more information, contact the Copyright Department at WorldatWork.
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Tuesday, September 20, 2011
Study Finds Supervisors Pay Lip Service to Work-Life Balance
WorldatWork Newsline
Sept. 12, 2011 — From receiving unfavorable job assignments to hearing negative comments from supervisors, there is a growing imbalance between what employers say about work-life balance and what they actually do, according to a global survey released by WorldatWork.
Every October since 2003, WorldatWork's Alliance for Work-Life Progress (AWLP) has led a national awareness campaign promoting work-life effectiveness as a key contributor to productivity and success in the modern workplace. This year, the campaign is calling attention to a troubling gap between leaders' beliefs and behaviors at many organizations.
The original intent of the study was to look at men and work-life integration, but one of the unexpected findings was that employees suffer a variety of job repercussions for participating in work-life programs, according to Kathie Lingle, executive director of WorldatWork's Alliance for Work-Life Progress.
"This conundrum can be so oppressive that some employees go underground, resorting to 'stealth maneuvers' for managing their personal responsibilities," Lingle said. "The good news is that 80% of employers around the globe avow support for family-friendly workplaces. The bad news is they are simultaneously penalizing those who actively strive to integrate work with their lives."
Employee respondents reported repercussions that included:
- Being overtly or subtly discouraged from using flexible work and other work-life programs
- Receiving unfavorable job assignments
- Receiving negative performance reviews
- Receiving negative comments from a supervisor
- Being denied a promotion.
- More than half of the surveyed managers think the ideal employee is one who is available to meet business needs regardless of business hours.
- 40% believe the most productive employees are those without a lot of personal commitments.
- Nearly 1 in 3 think that employees who use flexible work arrangements will not advance very far in the organization.
"While the HR department designs and administers work-life programs, it's the managers who have to implement it," said Rose Stanley, work-life practice leader for WorldatWork. "Our studies find that a culture of flexibility correlates with lower employee turnover. Specifically, those with training and experience managing employees on flexible work arrangements are much more supportive of work-life than those without that training and experience. Closing the gap between what managers believe and how they behave will make every workplace a better place to work."
Contents © 2011 WorldatWork. For more information, contact the Copyright Department at WorldatWork.
Thursday, September 15, 2011
Turnover among large-company CFOs is outpacing the rate of CEO churn in 2011 - CFOs By the Numbers - CFO Magazine
Job Hunting September 13, 2011 CFO.com
After 17 years, CEOs are finally catching up to CFOs in the rate of turnover; and other newly minted facts about the job market for finance chiefs.
David McCann
Turnover among large-company CFOs is outpacing the rate of CEO churn in 2011, for the 17th consecutive year, according to the annual "Volatility Report" by executive recruiting firm CristKolder.
However, the gap in the two turnover figures has narrowed to less than a percentage point. Extrapolating the result so far this year to a full year's worth of data, CFO positions will open up at 14.1% of the 669 companies that are in either the Fortune 500 or S&P 500, compared with 13.3% for CEOs. Back in 2007 and 2008, when numerous CFOs were walking the plank as companies scrambled to find credit and stock prices plummeted, the gap swelled to as much as seven percentage points.
Other tidbits from the report include the following:
After 17 years, CEOs are finally catching up to CFOs in the rate of turnover; and other newly minted facts about the job market for finance chiefs.
David McCann
Turnover among large-company CFOs is outpacing the rate of CEO churn in 2011, for the 17th consecutive year, according to the annual "Volatility Report" by executive recruiting firm CristKolder.
However, the gap in the two turnover figures has narrowed to less than a percentage point. Extrapolating the result so far this year to a full year's worth of data, CFO positions will open up at 14.1% of the 669 companies that are in either the Fortune 500 or S&P 500, compared with 13.3% for CEOs. Back in 2007 and 2008, when numerous CFOs were walking the plank as companies scrambled to find credit and stock prices plummeted, the gap swelled to as much as seven percentage points.
Other tidbits from the report include the following:
- The average CFO is 51 years old, earns a base salary of $550,000, has 5.1 years of tenure in his or her current job, and sits on 0.3 boards.
- While few CEOs (8%) were CFOs in their immediately prior jobs, 37% have had some experience as a financial executive, continuing a long-term trend. In 2000 only 19% of chief executives had finance in their DNA.
- The energy sector has the most CEOs with CFO experience, at 25%. Technology companies have the fewest (6%).
- The percentage of new CFOs hired away from other companies has climbed from 29% in 2010 to 35% this year – getting back near the historical average of 39% – while the same statistic for CEOs dipped from 27% to 25%.
- The financial-services industry accounted for 25% of CFO volatility through July. Next on the list was the technology sector at 16%. The most stable were the services, health-care, and energy industries, all at 7.3%.
- Twenty-four percent of CFOs were controllers in their previous roles.
- The number of companies with a chief operating officer declined for a fourth consecutive year, reaching 38%. That's down from 48% in 2000.
Thursday, September 8, 2011
Carol Bartz’s Blunt E-Mail on Firing Raises Issues - NYTimes.com
Excerpts
With those four words, Yahoo’s chief executive, Carol A. Bartz, did something Tuesday afternoon that dismissed managers almost never do: She told the truth.
Ms. Bartz’s blunt statement, sent in an e-mail blast to Yahoo’s 13,400 employees, immediately ignited a debate: Was she a pioneer trying to provide more transparency and authenticity at the top ranks of prominent companies, or was her salvo an unprofessional tirade that was a personal and professional mistake?
Jeffrey Pfeffer, a Stanford professor who is an expert in organizational behavior, is in the first group. “The truth helps you improve,” he said. “When people lose their jobs and there’s no acknowledgement, the potential for learning is lost.” Ms. Bartz’s comments also served her own cause, the professor said. “She’s acting as if this is not her fault. She’s not embarrassed. She’s controlling the story.”
But Jennifer Chatman, a professor and chair of the Haas Management of Organizations Group at the University of California, Berkeley, said Ms. Bartz’s angry words could help sink the struggling search portal. Now the directors who ejected Ms. Bartz are under attack at the moment employees need them to save Yahoo.
“A chief executive who was thinking first about the long-term interests of her company would not have done this,” Ms. Chatman said, adding that there are problems of perception in this case as well: “She’s one of a handful of top female business leaders. It would be easy to attach this to a stereotype of women leaders as not in control of their emotions.”
Whatever the effect on Yahoo, unvarnished comments like Ms. Bartz’s are likely to become more common. Chief executives are increasingly conscious of their personal brand and how it can diverge from the corporate brand.
Authenticity, though, can backfire, and vulnerability is not always something to be desired. Executives who are not on their way out are learning that broadcasting their feelings can have unintended consequences.
------------------------
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Wednesday, September 7, 2011
More U.S. Workers Unhappy With Health Benefits, Promotions - Gallup
More U.S. Workers Unhappy With Health Benefits, Promotions
Excerpts:
September 5, 2011
More U.S. Workers Unhappy With Health Benefits, Promotions
Workers least satisfied with on-the-job stress, tangible rewards for their work
by Lymari Morales
WASHINGTON, D.C. -- U.S. workers are more dissatisfied today with their health insurance benefits and their chances for promotion than they were before the global economic collapse. These are the biggest movers since August 2008 on a list of 13 specific job aspects Gallup tracks.
Implications
Workers' perceptions about their jobs deserve as much attention from leaders as the nation's unemployment rate and the need to create new jobs. More than one in four workers remain dissatisfied with the tangible things they get in return for their work, which could affect their willingness to work harder for the good of their employer and the economy more broadly, not to mention their own willingness to spend. At the same time, employers may face an understandable dilemma between hiring new workers and better compensating the ones they have. As such, these measures provide yet another important gauge of the nation's true economic health.
Access Full Article And Interesting Data - Factors contributing to job satisfaction and dissatisfaction: http://www.gallup.com/poll/149324/workers-unhappy-health-benefits-promotions.aspx
Excerpts:
September 5, 2011
More U.S. Workers Unhappy With Health Benefits, Promotions
Workers least satisfied with on-the-job stress, tangible rewards for their work
by Lymari Morales
WASHINGTON, D.C. -- U.S. workers are more dissatisfied today with their health insurance benefits and their chances for promotion than they were before the global economic collapse. These are the biggest movers since August 2008 on a list of 13 specific job aspects Gallup tracks.
Implications
Workers' perceptions about their jobs deserve as much attention from leaders as the nation's unemployment rate and the need to create new jobs. More than one in four workers remain dissatisfied with the tangible things they get in return for their work, which could affect their willingness to work harder for the good of their employer and the economy more broadly, not to mention their own willingness to spend. At the same time, employers may face an understandable dilemma between hiring new workers and better compensating the ones they have. As such, these measures provide yet another important gauge of the nation's true economic health.
Access Full Article And Interesting Data - Factors contributing to job satisfaction and dissatisfaction: http://www.gallup.com/poll/149324/workers-unhappy-health-benefits-promotions.aspx
Wednesday, July 20, 2011
Working for Love or Money? Employees Say Love Matters More
WorldatWork Newsline
July 13, 2011 — When they're on the job hunt, would-be employees prioritize finding a caring company, fulfilling work and better benefits over dollars and cents, according to a survey by Monster.com in collaboration with employee benefits provider Unum.
In the survey of 468 job-seekers, the top-rated item on would-be employees' wish lists was a company "that truly cares about the well-being of its employees."
Eight-seven percent of those surveyed rated that quality very important in their job hunt — and the result was nearly identical for both the employed and unemployed respondents.
Other priorities for people seeking employment were:
- A challenging and fulfilling position, which 84% of respondents identified as very important.
- Job security, rated very important by 82%.
- An attractive benefits package, which 74% of those surveyed rated very important.
- 86% of HR leaders indicated that making sure employees and their families are taken care of should something happen to them is an important reason for providing financial protection benefits.
- 82% of workers agreed that being offered financial protection benefits shows that a company cares about the well-being of its employees.
- An attractive benefits package and an ethical, transparent culture were more likely to be viewed as very important in attracting and retaining staff than were a high starting salary and job security.
- Being a company that cares about the well-being of its staff was twice as likely to be viewed as very important in attracting and retaining staff as providing a high base salary.
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Wednesday, June 29, 2011
1 in 2 U.S. Employees Looking to Leave or Are Checked Out on the Job
1 in 2 U.S. Employees Looking to Leave or Are Checked Out on the Job
1 in 2 U.S. Employees Looking to Leave or Are Checked Out on the Job
June 20, 2011 — Half of all U.S. employees are really unhappy, according to Mercer's "What's Working" survey, conducted over the past two quarters among nearly 30,000 workers in 17 countries, including 2,400 U.S. workers.
Nearly 1 in 3 (32%) U.S. workers is seriously considering leaving his/her organization right now, up sharply from 23% in 2005. Meanwhile, another 21% are not looking to leave, but view their employers unfavorably and have rock-bottom scores on key measures of engagement, a term that describes a combination of an employee's loyalty, commitment and motivation.
Figure 1: Disaffected Workers Post Lowest Engagement Scores, Views of Employers
Source: Mercer's "What's Working" survey.
"The business consequences of this erosion in employee sentiment are significant, and clearly the issue goes far beyond retention," said Mindy Fox, a senior partner at Mercer and the firm's U.S. region leader. "Diminished loyalty and widespread apathy can undermine business performance, particularly as companies increasingly look to their workforces to drive productivity gains and spur innovation."
Employee concerns about work are pervasive, reflecting an evolving employment deal that they have seen as a series of takeaways, plus further cuts made during economic tough times:
Figure 2: Key Engagement Measures Show Consistent Decline Among U.S. Workers
Source: Mercer's "What's Working" survey.
Figure 3: Youngest Workers Most Likely to Be 'Seriously Considering Leaving' Today
Source: Mercer's "What's Working" survey.
According to Fox, an effective employment deal includes both how the deal is defined and delivered. "Employees see a 'disconnect' between what employers are promising and what they are delivering," she said. "Organizations should re-examine their deals — both the traditional and nontraditional elements — then support them with effective administration and consistent, authentic communication that fosters a sense of belonging and helps employees make better rewards choices and career decisions."
The "What's Working" survey was conducted among more than 2,400 U.S. workers in late 2010. The survey, last conducted in the United States in 2005, includes more than 100 questions on a range of work-related topics and reflects the overall demographics of the U.S. workforce in terms of age, gender and job level. This research also is being conducted in 16 other countries.
********************************************************http://dreamlearndobecome.blogspot.com This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
WorldatWork.com
Newsline
1 in 2 U.S. Employees Looking to Leave or Are Checked Out on the Job
June 20, 2011 — Half of all U.S. employees are really unhappy, according to Mercer's "What's Working" survey, conducted over the past two quarters among nearly 30,000 workers in 17 countries, including 2,400 U.S. workers.
Nearly 1 in 3 (32%) U.S. workers is seriously considering leaving his/her organization right now, up sharply from 23% in 2005. Meanwhile, another 21% are not looking to leave, but view their employers unfavorably and have rock-bottom scores on key measures of engagement, a term that describes a combination of an employee's loyalty, commitment and motivation.
Figure 1: Disaffected Workers Post Lowest Engagement Scores, Views of Employers
Percentage Who Agree | |||
Among those not seriously considering leaving (47% of all employees) | Among those seriously considering leaving (32% of all employees) | Among those who responded “neither” (21% of all employees) | |
Personally feel treated fairly by organization | 83% | 58% | 50% |
Proud to work for organization | 82% | 56% | 48% |
Get feeling of personal accomplishment from work | 81% | 63% | 53% |
Willing to go beyond job requirements to help organization succeed | 81% | 68% | 58% |
Would recommend my organization to others as a good place to work | 80% | 53% | 46% |
Feel strong sense of commitment to organization | 76% | 53% | 34% |
See a long-term future with organization | 74% | 49% | 40% |
Believe organization as a whole is well-managed | 68% | 50% | 29% |
Source: Mercer's "What's Working" survey.
"The business consequences of this erosion in employee sentiment are significant, and clearly the issue goes far beyond retention," said Mindy Fox, a senior partner at Mercer and the firm's U.S. region leader. "Diminished loyalty and widespread apathy can undermine business performance, particularly as companies increasingly look to their workforces to drive productivity gains and spur innovation."
Employee concerns about work are pervasive, reflecting an evolving employment deal that they have seen as a series of takeaways, plus further cuts made during economic tough times:
- Only 43% of U.S. employees believe they are doing enough to financially prepare for retirement — down from 47% in 2005, and just 41% believe their employers are doing enough to help them prepare, up slightly from 38%.
- 68% of employees rate their overall benefits program as good or very good, down from 76% in 2005, while 59% say they are satisfied with their health-care benefits, down from 66%.
- Base pay is the most important element of the employment deal, by a wide margin, but U.S. workers show lower satisfaction with base pay (53% satisfied, down from 58% in 2005).
- Despite improvements, scores for career development and performance management remain low. Just 42% of employees today agree that promotions go to the most qualified employees in their organization, up from 29% in 2005, and 46% agree that their organization does an adequate job of matching pay to performance, up from 33%.
Figure 2: Key Engagement Measures Show Consistent Decline Among U.S. Workers
2005 | 2010 | |
Get feeling of personal accomplishment from work | 72% | 69% |
Willing to go beyond job requirements to help organization succeed | 75% | 72% |
Proud to work for organization | 71% | 67% |
Feel strong sense of commitment to organization | 64% | 60% |
Figure 3: Youngest Workers Most Likely to Be 'Seriously Considering Leaving' Today
2005 | 2010 | |
All employees | 23% | 32% |
Age 16-24 | 20% | 44% |
Age 25-34 | 25% | 40% |
Age 35-44 | 23% | 34% |
Age 45-54 | 21% | 27% |
Age 55-64 | 19% | 24% |
According to Fox, an effective employment deal includes both how the deal is defined and delivered. "Employees see a 'disconnect' between what employers are promising and what they are delivering," she said. "Organizations should re-examine their deals — both the traditional and nontraditional elements — then support them with effective administration and consistent, authentic communication that fosters a sense of belonging and helps employees make better rewards choices and career decisions."
The "What's Working" survey was conducted among more than 2,400 U.S. workers in late 2010. The survey, last conducted in the United States in 2005, includes more than 100 questions on a range of work-related topics and reflects the overall demographics of the U.S. workforce in terms of age, gender and job level. This research also is being conducted in 16 other countries.
Contents © 2011 WorldatWork. No part of this article may be reproduced, excerpted or redistributed in any form without express written permission from WorldatWork.
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********************************************************http://dreamlearndobecome.blogspot.com This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
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