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The New War On Talent PDF Print E-mail

 

An Aberration of the Recession

 
 
            The recession brought about dramatic changes in the traditional contract between employer and employee according to findings in the Global Workforce Study. The story released in March 2010 surveyed 20,000 employees.
 
            Of the nearly 1,100 U.S. participants, job security ranked above on-the-job advancement. The survey indicated that the recession has prompted employers to lower expectations of career and retirement opportunities. Stability ranked number 1 on their list. The study also noted that the average expected age of retirement is 67; that is five years later than the expected retirement age elsewhere around the world.
 
            The profound shift for both employees and employers alike is that this trend indicates that employees feel increasingly isolated in any support from securing health care, to managing their career, to planning a successful retirement. The sense of abandonment by corporate America and government permeates the workforce. Among U.S workers:
           
  • 40 percent said working for two or three organizations throughout their career is the most appealing career model.
  • 39 percent would prefer to be employed at one organization their entire work life.
  • 20 percent would prefer changing organizations whenever a better opportunity arrived.
  • 56 percent of the U.S. workers think that availability of jobs will not change significantly over the next 12 months.
  • 28 percent said there will be significantly fewer jobs available in the next 12 months.
  • 15 percent said there will be significantly more jobs available in the next 12 months. 
 
 
Most U.S. workers want stability at a cost that was not considered a decade ago.
 
“People really do want to burrow in at the very time when employment has become much more contingent [on]… ‘if we can afford you, if the demand is there, and you continue to perform well then we want you here,’” Max Caldwell, a leader in the company’s talent and rewards business, told SHRM Online. “People have this instinct they want to hang onto their organization at the same time employers have demonstrated…that the fundamental contract is different.”
 
“In fact, 43 percent of U.S. workers think that they have to leave their organization to advance in their career, nearly the same percentage (44 percent) has no plans to leave.”
 
“Employees may be settling in for the ling haul, perhaps staying with an employer for decades,” the report found, representing a change for employer who have been talking about the “war for talent.”
 
It’s a different kind of war than what HR professionals and others have been talking about, Caldwell said, voicing his concern “that organizations are gearing up to fight the wrong war.”
 
Instead of a war to attract top talent, he said organizations should be waging a war to hold on to critical talent.
 
“People are tired; they are holding onto the organization in a sense because they feel risk averse. You have this recipe for a sort of stagnation and lack of motivation, and that to us is the new war on talent.”
 
The challenge is to engage and motivate this large group of people who are recession fatigued, he pointed out. Organizations need to create self-reliance among employees to have them take charge of their retirement and health benefits, and personal wellness, enhancing skills and advancement, he added.
 
Companies budget for training whether they have a trainer in house or if they outsource the work. The trend may develop that suits the company that includes access to programs or people who can mentor, help structure and monitor employees’ financial goals, retirement goals and life goals might very well be the companies that retain their best talent and through example and referral attract the best new talent.
 
At the end of the day it’s always about the dream. Companies that help employees keep their dreams alive keep those employees.
 
Employers Expect Uptick in Hiring PDF Print E-mail

The encouraging news regarding the economy may be easing hiring fears, as employers signal an increase in their plans to hire this year, a CareerBuilder survey reveals.

Twenty percent of employers plan to increase their number of  full-time, permanent employees this year, up from 14% in 2009. Nine percent plan to decrease headcount, down sharply from 16% in 2009. Sixty-one percent don't plan to change staff levels while 10% say they are unsure. "There have been many signs over the past few months that point to the healing of the U.S. economy, especially the continued decrease in the number of jobs lost per month," comments CareerBuilder CEO Malt Ferguson. "Although 20% of employers plan to add headcount in 2010, up from 14% lastyear, they still remain cautious in regards to their hiring. We're headed in the right direction but should not expect to see actual job growth until at least Q2." Eleven percent of employers plan to add part-time employees this year, up slightly from 9% in 2009. Eight percent plan to decrease their part-time help this year, down from 14% in 2009. Sixly-nine percent don't plan any change in part-time headcount while 13% are unsure. Twenty-four percent of employers in the West plan to add full-time workers, compared to 21% in the Northeast, 20% in the South and 16% in the Midwest.

Hiring is expected to increase in information technology, manufacturing, financial services, professional and business services, and sales, Thirty-two percent of IT, 27% of manufacturing and 230,'a of financial services employers plan to add full-time, permanent employees this year, followed by 221 (1 of employers n professional and business services and 21% in sales, twenty-one percent of healthcare employers also plan lo add staff, followed by 1S°/o of transportation employers and 15% of retailers. Even as companies continue to watch their spending, they still plan slight salary increases this year.  Fifty-seven percent report their companies will increase salaries for existing employees, down from 65% in 2009. Thirty-six percent expect to raise salaries by 3% or more, while 11% anticipate increases of 5%or more. Twenty-nine percent of employers plan to increase salaries on initial offers to new employees, down from 33% in 2009. Eighteen percent expect to raise salaries on initial offers by 3% or more while 7% anticipate an increase of 5% or more. si
 

Employee Discontent Expected to Reach Crisis Level

Employee turnover is expected to rise this year, as a survey shows many workers are unhappy with their present jobs. Sixty percent of employees intend to leave and an additional onein fourare networking and updating their resumes, a Right Management survey reveals.

"The study provides a barometer of employee engagement in the workplace, with results that might  alarm and surprise many employers," comments Douglas J. Matthews, Right Management's president  and chief operating officer. "Employees are clearly expressing their pent up frustration with how they have been treated through the downturn. While employers may have taken the necessary steps to streamline operations to remain viable, it appears many employees may have felt neglected in the process. The result is a disengaged and disgruntled workforce." si

Nearly a Quarter of Employers Rate Employee Morale as Low

Workers have endured increased workloads, longer hours and strained resources during the recession, taking a toll on workplace morale. Twenty-three percent of employers polled in a CareerBuilder survey rate their organization's current employee morale as low. Additionally, 40% of workers report they have had difficulty staying motivated at work in the last year and a quarter, and 24% do not feel loyal to their current employer. Workers revealed a variety of factors that could be contributing to low morale levels. Two out of five said their stress level at work is high, and 47% said their workload has increased in the last six months, One in five is dissatisfied with their work/life balance.Thirly-eight percent of workers said they felt there was departmental favoritism at work, and 28% don't think their department is important to senior leadership. Sales (1 ?/0), human resources (11°/o) and accounting/finance (6%) topped the list of departments workers believe are primarily given preferential treatment at work. When asked what type of preferential treatment workers thought the favored department received, they cited higher salaries (51%), more recognition by senior leaders (47%), more flexibility in work arrangements (43%), more funding/resources (27%), greater career advancement opportunities (26%), more training and leadership development opportunities (19%), more casual dress code (15%), and trips that people in other departments are not allowed to take (15%). » Succession in the C-Suite Lagging the majority of companies are not prepared for succession in the C-Suite, a Korn/Ferry survey reveals. Fifty-nine percent of executives polled said they don't feel their company has a defined succession plan m place. The survey also suggests that most companies are not adequately prepared should their CEO resign sudden~. When executives were asked if they knew who would assume leadership of their company, just 56% said yes. Sixty-eight percent of executives said the departure of their current CEO/president would be extremely or somewhat damaging to the company. Only 21% said it would not be damaging, while 11% said it would be beneficial, "C-suite succession planning is one of the most important charters of any organization and its board of directors," comments Joe Griesedieck, vice chairman and managing director of Korn/Ferry's Board and CEO Services. "In the wake of the economic downturn, many companies have been focused on preserving the franchise and have reluctantly put off the critical succession planning process. A clearly defined plan, put in place well ahead of a CEO's departure, not only mitigates risk, but thwarts off counterproductive leadership struggles stemming from lack of clarity." a U.S. Employees Seek the Skills to Thrive in a Global Workplace The majority of vrorkers believe the experience they gain in a globally oriented workplace will be important to their careers, a Kelly Services survey reveals. However, many report they are not being adequately prepared. The survey finds GenV employees (aged IBto 29) are driving the trend toward globalization. GenY employees also feel more confident about working in a multinational environment than their GenX and Baby Boomer colleagues. In deciding where to work, the opportunity for exposure to international skills and a globalized workplace is becoming more desirable, especially for younger workers. Yet few employees receive formal support from their employers, like cultural or language training, which would help them develop the expertise needed to thrive in a global setting. "As business becomes more global, workers at every level are recognizing career advantage in their exposure to the language, culture and protocols that characterize cross-border engagement," comments Michael Webster, executive VP and general manager for Kelly Services. "A hallmark of international business and commerce today is to work collaboratively in global teams, and this trend is growing." Key findings of the survey from across the United States include:• 76% of GenY believe it is important to their career prospects that they become more globally oriented, followed by 74% of GenX and 68°/o of Baby Boomers. • 67% of GenY have recently experienced working closely with colleagues from a different country or culture, followed by 62% of GenX and 62% of Baby Boomers.* 821/0 of employees in the West say they possess the skills to operate in a global environment, followed by 73% of employees in the Northeast. • £7% of employees in the South receive formal cross-cultural or language training from their employer, followed by 25°'o in the Northeast, 24% in the West and 23% in the Midwest. * In deciding where to work, exposure to a global environment is considered "extremely important" by 24% ofQenY, 21% of GenX and 19% of Baby Boomers. Says Webster, "Rapid economic advancement in developing economies will lead many more skilled employees to seek international opportunities, and those workers will be very attractive to employers no matter where in the world they are located. It could potentially transform industries where standard practices allow employers to tap into a vast global talent poll, In such areas as engineering, science, finance and healthcare." « 

 
Strong Work Ethic Most Sought-After Soft Skill PDF Print E-mail

A strong work ethic is the most sought-after soft skill today, an Express Employment Professionals survey reveals. Twenty-three percent of respondents said a strong work ethic is the most important soft skill required In a job seeker, white 17% cited a positive attitude, and 11% cited communication.

Other soft skills cited included: being a team player (10%), flexibility (9%), being a problem-solver (7%), being self-directed (5%), working well under pressure (5%), being a quick learner (4%), organizational skills (3%) and creativity (1%).

"Having a strong work ethic is very important in today's job market due to increased staff and tighter budgets," comments Bob Funk, one of the founders of Express. "As the job market begins to turn and employers start to hire again, employers are paying closer attention to these skills in addition tobasic Job requirements, education and experience. While having these types of soft job skills has always been beneficial to job seekers, employers are especially taking these skills into consideration when determining the right candidate for a job today."


Talent Management a Priority for Executives as Economy Rebounds

With the economy cautiously turning the corner, senior leaders are focused on hiring and developing talent, a survey of senior executives on Linked In by Right Management reveals. Ninety-four percent of execs said talent management is a top priority for 2010, One-third of execs said they will be hiring new talent in 2010, while 36% said they will focus on developing current talent. Twenty percent reported that increasing employee engagement is a top priority. Career development opportunities and efforts to Increase engagement typically improve retention, which may explain why only 4% of senior leaders indicated they would be focusing efforts on retention. Leaders in finance functions are the most focused on developing current talent (44%), followed by information technology executives (36%), the survey found.

Business development executives, as well as operations, acknowledged skills gaps and information technology leaders, who will ail be mostly focused on hiring new talent next year. A survey by Robert Half Finance & Accounting also reveals hiring new workers will be a priority for many employers. When senior executives were asked where they most likely would boost spending when the economy recovers, nearly one in three (31%) said they plan to hire additional staff. Twenty-one percent plan to increase salaries for current employees, 15% plan to increase or reinstitute bonuses, 9% plan to invest more in employee training and 5% plan to enhance employee benefits. Sixteen percent said they would not increase spending.

Skills Senior Execs Need to Improve Most: Leadership, Strategic Thinking

Two-thirds of companies feel that senior-level executives need to improve their leadership skills, while more than half say senior management must sharpen their strategic thinking and communication abilities, a survey by outplacement and executive coaching firm ClearRock reveals. Nearly half of companies polled say senior managers must improve their team building, vision and motivational capabilities. However, employers are supplying their senior-level management with plenty of help, including outside and in-house coaching and training. Three-quarters of companies poNed said they provide their senior-level leaders with outside coaching. Nearly half give them outside training and education, and about four in 10 coach them within lhe organization. "Companies want their senior-level executives to succeed in a more intensely competitive environment," comments Annie Stevens, ClearRock managing partner. "Employers are hiring outside coaches to help senior managers further develop leadership, strategic thinking, communications, motivational and employee engagement skills to better run the business side while keeping employees engaged in their jobs in a tough economy."  

 



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