talent edge 2020 building the recovery together
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Talent Edge 2020:Bidi rvr r
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Talent Edge 2020
Talent Edge 2020 is a ew loitudial surve series coducted or Deloitte Cosulti LLP b Forbes Isits explori caitalet priorities i all idustries, at lare busiesses worldwide i te Americas, Asia Pacifc, ad Europe, te Middle East, ad Arica.Te Talent Edge 2020 series ollows te Managing Talent in a Turbulent Economyseries rom 2009 ad 2010.
Contents
Key ndings | 1
Employers may risk losing the hearts and minds o employees | 3
What is driving talent out the door? | 6
Slowing down the revolving door and turning it in your direction | 7
Talkin bout my generation | 8
Employers need to lit their game to deliver world-class talent programs | 11
Strong talent programs = better workorces, better workplaces, strongercompanies | 12
Building the recovery together | 14
Survey demographics | 15
Contacts | 17
Talent Edge 2020: Blueprints for the new normal
Tis iauural report eatures results rom a October 2010 surve tat polled 334 seior busiess leaders ad uma resource
executives at lare lobal busiesses. Tis report explores talet strateies ad uoldi emploee treds related to retetio adte ew callees posed b te recessio.
Read Talent Edge 2020: Blueprints for the new normal
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Building the recovery togetherWhat talent expects and how leaders are responding
MAny companies are not addressing thecritical needsand potential rustrationso their employeesand oen do not have a
realistic picture o how employees see them,
according to a March 2011 survey o employ-
ees at companies worldwide conducted or
Deloitte Consulting LLP by Forbes Insights.
While corporate executives and talent manag-
ers may be tempted to believe the talent markethas returned to normal and they can go back
to business as usual now that the economy
is growing again, our survey suggests that this
strategy could leave companies on the losing
side o the competition or talent.
As part o the Deloitte Talent Edge 2020 series,
this report examines employee attitudes to pro-
vide insights into the orces that are expected
to drive the talent market over the next decade.
More specically, the survey probes diver-gences between the attitudes and desires o
employees and the talent strategies and prac-
tices being utilized by employers. Te survey
also compares current employee views with the
views held by employees during the depth o
the recession and to the opinions o executives
we surveyed in October 2010.
Te March 2011 survey o 356 employees at
large global companies (annual sales greater
than $500 million) revealed several importanttrends Deloitte believes will shape the talent
market in the coming decade:
Emploers ma risk losi te eartsad mids (ot to metio te
eads ad ads) o emploees.
With a stronger economy, more employees
with pent-up desires to leave their current
employers are now actively testing the job
market. Rising turnover intentions, which built
up slowly but steadily during the recession,
may hit companies at the exact time when
many executives predict talent shortages across
business units that companies rely on to drive
growth and innovation. Only 35% o the employees surveyed expect
to remain with their current employersa
10-percentage-point decrease compared to
the September 2009 survey. Nearly two out
o three employees (65%) surveyed are pas-
sively or actively testing the job market.
Wat do te 65% o emploeeslooki or te exit si see
tat teir emploers dot?
Te nearly two out o three employees
surveyed who are exploring their career
options have strong, negative views about
what the job employers are doing to cre-
ate challenging career paths and to open up
advancement opportunities.
Among the employees surveyed who
are actively or passively seeking out new
employers, 53% report the prospect o jobadvancement or promotion would persuade
them to stay with their current companies.
A majority or near majority o employ-
ees on the market rate their companies
eorts at creating career paths, developing
leaders, and retaining top perormers as
air or poor.
As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary o Deloitte LLP. Please see www.deloitte.com/
us/about or a detailed description o the legal structure o Deloitte LLP and its subsidiaries. Certain services may not be availableto attest clients under the rules and regulations o public accounting. All survey data and statistics reerenced and presented inthis report, as well as the representations made and opinions expressed, unless specically described otherwise, pertain only tothe participating organizations and their responses to the Deloitte survey conducted March 2011.
Key ndings
1
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Talent Edge 2020
Tareti talet strateies b eeratio
ad eder elps keep teams itact.
Both turnover triggers and retention incen-
tives appear to vary
signicantly across
employee genera-tions, with dier-
ences emerging by
gender. Companies
that adapt their
talent and retention
strategies to meet the
unique expectations
and motivations o
dierent employee
populations will
likely be rewarded,
while those that
do not could nd
themselves at the losing end o the competition
or talent.
When it comes to ranking the top turnover
triggers, surveyed Baby Boomers rated lack
o trust in leadership at the top o their
list at 32%, while both Generation X and
Millennial employees placed lack o careerprogress rst at 38% and 30%, respectively.
Te ndings also revealed that surveyed
men rate lack o compensation increases
at the top o their top turnover trigger list
at 27% (compared to 14% o women), while
women placed excessive workload rst at
31% (compared to 15% o men).
Companies thatadapt their talent andretention strategiesto meet generationaldesires will berewarded, while thosethat do not couldnd themselves at
the losing end o thecompetition or talent.
Compaies tat lit teir ame
to deliver world-class taletprorams will likel be rewarded.
Very ew employees dene their employers
overall talent eorts as world-class or even
very goodand the same lack o condenceholds true when it comes to key talent reten-
tion strategies. However, based on survey
ndings, employers that li their talent eorts
will likely be rewarded with employees who are
more satised with their jobs and career pros-
pects (and who are ar more likely to remain
with their current employers).
Only 6% o the employees surveyed rate
their companies overall HR and talent
eorts as world-class, while more thanour in ten (43%) called them air or
poor. Not surprisingly, employees who
describe their companiestalent programs
as world-class or very good are nearly
twice (42% to 23%) as committed to
remaining at their jobs than employees who
work at companies with air or poor
talent eorts.
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Building the recovery togetherWhat talent expects and how leaders are responding
Employers may risk losing the
hearts and minds o employees
Dii Dr:Survey ndings suggest thatcompanies may be at a greater risk with regardto retaining emale employees. Women appearedmore likely than men to be actively looking ornew employment in the next 12 months (55%o women vs. 41% o men). Men, on the otherhand, were more likely to be passively looking(24% o men vs. 12% o women).
IMAgInE i a company could count on keep-ing only a third o its customers next year.Te discovery would set o alarm bells inside
every C-suite ofce and trigger emergency
meetings, strategy reevaluations, and demands
or improvement. Substitute the word employ-
ees or customers
and that may be
the position that
many companies
ace today.
I alarm bells are
not going o, maybe
they should.
Among employees
surveyed in March2011, only 35%
expect to remain
with their current
employers, compared to 45% who were com-
mitted to their employers during the recession
in 2009 (see gure 1). In addition, by a margin
o more than 2:1 (45% to 20%), employees are
more likely to predict an increase rather than
a decrease in employee turnover during the
next year.
Amongemployeessurveyed inMarch 2011,only 35%expect toremain with
their currentemployers
Fir 1. Ar ai r i?
2009
2011
Employees whoexpect to stay with
their currentemployer
45%
Employees whoexpect to stay with
their currentemployer
35%
Employees whohave been, plan to,
or are currentlyseeking newemployment
55%
Employees whohave been, plan to,
or are currentlyseeking newemployment
65%
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Talent Edge 2020
When it comes to retaining talent, many
employers risk losing the battle or the hearts
and minds (not to mention the heads and
hands) o their employees. Nearly hal (49%)
o the employees surveyed have been seek-ing, plan to seek, or are currently seeking new
employment. Another 21% are exploring new
options by posting their resumes online or
keeping an open mind about calls rom corpo-
rate recruiters (see gure 2).
Employees increasing restlessness coincides
ReD FlAg FoR employeRs: Is the BAlAnce oF poWeR In thejoB mARket shIFtIng FRom employeRs to employees?
According to our survey, more than one in ve employees (21%) has posted their resumesonline or are utilizing social media tools to keep their career options open. While employersspent the recession hunkered down and ocused on cutting costs, the job market has beenslowly evolving, making it easier or employees to grab control o the market rom employers.
In addition, social media sites like Facebook, Twitter, and LinkedIn open up a new, highlyeective method or job-seekers and employers to connect. According to placement rmChallenger, Gray & Christmas, social networking sites now provide the second-most eectiveway or job-hunters to nd new work, alling only behind traditional networking.2 Cachinko, asocial media recruiting solutions company, claims that social media sites are driving employeeempowerment because o their ease, eciency, and exploding reach.
Cachinko recently reported that LinkedIn has 85 million members; Twitter has 175 millionregistered users; and Facebook has over 500 million active users, over hal o whom check theirFacebook accounts each day. From an employers perspective, social media provides cheapaccess to a seemingly limitless talent pool. And or employees, exploring new career options
and looking or a new job has never been easier, more un, or more empowering.3
with employer concerns about losing critical
talent. Employers are right to be worried.
Academic research indicates that 44% o
employees are likely to act on their turnover
intentions.1 With 65% o employees lookingto leave their current positions, a total o 29%
might actually walk out the door (0.65 x 0.44
= 0.29). Moreover, in Deloittes October 2010
survey o executives, 56% predicted a scarcity
o leadership talent, while nearly three in our
(72%) expected talent shortages in R&D.
Fir 2. Ar ai r a w r?*
I have been actively looking or newemployment during the past 12 months
I am currently seeking new employment
I plan to begin looking or newemployment within the next 12 months
I am passively looking
I expect to stay with my current employer
15%
21%
15%
35%
19%
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Building the recovery togetherWhat talent expects and how leaders are responding
nearl two-tirds (65%) o teemploees surveed are looki or
te exit si, or te are at least opeto a career move. Wat do tose65% see tat emploers dot?
Uncertaincareerpaths:Basedonoursurvey,
well over hal o the employees planning to
leave their current employers (57%) believe
their companies do a air or even poor job
o creating career paths
and challenging job
opportunities, compared
to only 23% who rate
this key talent metric
as excellent or verygooda vote o no con-
dence greater than 2:1.
Little leadership devel-
opment: Our survey
indicates that 50% o
the employees who do
not expect to stay at
their current employers
rate their companies leadership development
programs as air/poor, against 21% who ratethem as excellent/very good.
Lackoftrustinleadership:Ofsurveyrespon-
dents, only 23% o employees planning to
depart believe their companies eectively
inspire trust in leadership, compared to the
57% who rank these eorts as air/poor.Surveyed emale employees appeared less
impressed than men by their companies ability
to inspire trust and condence, with 35% o
the women rating this ability as poor, com-
pared to 22% o men.
Dicultyretainingtopper-
ormers: Survey results show
that o those employees who
expect to depart, 50% believe
their companies are doinga air/poor job retaining
top perormers, compared to
just 23% who label retention
eorts in this area as excel-
lent/very good.
Inadequatetrainingpro-
grams: Nearly hal o the
employees surveyed (48%) who plan to leave
their current jobs believe their companies are
doing a air/poor job managing and deliver-ing eective training programs; just 24% rate
training programs as excellent/very good.
Employees whoare looking toleave believekey corporatetalent programsat their currentcompanies areseriously lacking.
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Talent Edge 2020
What is driving talent out the door?
ThE key drivers o turnover have remainedremarkably stable as employees and theircompanies have transitioned rom a recession
to recovery. When employees were asked
to rank the top actors that would lead them to
seek new employment, lack o career prog-
ress topped the list at 28%. Tis was ollowed
by lack o compensation increases, lack o
job security, and lack o trust in leadership,
each at 24%. Tese actors also ranked as the
top departure drivers in Deloittes September
2009 Managing alent in a urbulent Economy
employee survey.
While many companies might expect morale
to strengthen along with the economy, employ-
ees have a mixed reaction. O the employees
surveyed in March, 42% report that morale has
indeed increased over the past 12 months, but
a strong 36% believe morale has decreased.
Opinions on morale, according to survey
respondents, appear to dier between hourly
and ull-time salaried employees. Te majority
o hourly employees (59%) believe morale has
improved or signicantly improved, whereas
only 31% o salaried employees hold this view.
Whats more, almost hal (45%) the salaried
employees believe morale has either decreased
or signicantly decreased, a view held by justover one-h (22%) o hourly employees.
Examining employee morale rom a global per-
spective, however, reveals a dierent picture. In
the Asia Pacic and Europe, Middle East, and
Arica (EMEA) regions, employees surveyed
are reporting a revival o morale, with 62% and
49% o employees, respectively, responding that
morale has improved over the past year. In the
Americas, however, the outlook is not so bright.
Only 23% o the employees surveyed report thatmorale has increased, leaving the Americas lag-
ging behind the rest o the world (see gure 3).
One possible actor depressing employee
morale in the Americas and beyondeven as
the macro-economic environment improves
may be poor communication about corpo-
rate strategy and direction. While 57% o
the employees surveyed agreed their HR/
talent managers did an eective job commu-
nicating, a signicant 40% ound company
communications lacking.
DiiDr:mployers appearo be connecting
best withheir youngestmployees.
Nearly three inour Millennials
74%) believeheir employersectivelyommunicatehe companiestrategicirection,ompared to lesshan hal o Baby
Boomers (47%)nd 50% o
Generation Xers.
Dii Dr:Respondents who havebeen out o work at some point in the pastthree years are casting a wary eye towardcurrent employers. Just over a third (34%) othese workers cite the lack o job security as areason to look or a new jobten percentagepoints higher than overall survey respondents.They may also consider their current job to be
just the best option available at the moment,not a long-term position30% would leavecurrent employers or new opportunities, eightpercentage points higher than overall responses.
Total respondents
Asia Pacic
Europe/Middle East/Arica
Americas
1%
2%
Signicantly improved Improved Remained the same Decreased Signicantly decreased Dont know
Fir 3. exaii ra r a ba riv
8%
11%
7%
5%
34%
51%
32%
18%
22%
23%
17%
25%
24%
14%
30%
30%
12%
12%
22%
26%
6
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Building the recovery togetherWhat talent expects and how leaders are responding
Slowing down the revolving door
and turning it in your directionWhAT should employers do to slow downthe revolving door that may be threat-ening an exodus o talent rom their com-
panies? Even more interesting, what should
companies committed to winning the competi-
tion or talent do to turn the revolving door in
their avor? Perhaps not surprisingly, the top
retention incentives identied by employees
present a near-mirror image o turnover driv-ers, providing executives and talent managers
with a clear picture o the most eective talent
retention strategies.
When asked to list the top three retention
incentives, survey respondents ranked promo-
tion/job advancement rst at 53%, ollowed
by additional compensation at 39%, and
additional bonuses or other nancial incen-
tives at 34% (see gure 4).
Financial incentives are a perennial tal-
ent retention avorite, but companies can
improve their talent retention eorts through
non-nancial incentives as well. Boosting
ReD FlAg FoR employeRs: keep A lAseR-lIke Focus on cReAtIngcleAR cAReeR pAths AnD chAllengIng joB oppoRtunItIes.
More than hal (53%) the employees that Deloitte surveyed believe companies only do a air or poorjob o creating career paths and providing challenging job opportunities. For employees looking or jobs,challenging job opportunities really do matter.
employee support/recognition rom their
managers was ranked as an eective retention
tactic by a strong 30% o the employees that
Deloitte surveyed.
Job advancement expectations have also
jumped considerably, as the recession has
aded and the recovery has taken hold. In
2009, 28% o the employees surveyed listed job
advancement expectations as a top retention
incentive. In March, that number had grown
to 53%a jump o 25 percentage points in
18 months.
Dii Dr:Asked to rank the incentives that wouldbe most eective in keeping them with their current employer,men appeared to ocus on nancial incentives. Women, on theother hand, were more likely to seek recognition. Among men,42% said additional compensation would keep them romleaving, and 39% cited additional bonuses or other nancialincentives as retention incentives. Among women, only 27%cited additional compensation as an incentive, and only 19%cited additional bonuses. Meanwhile, 40% o women said
support and recognition rom supervisors or managers wouldbe a valuable retention method, compared to just 28% o men.
Fir 4. Darr drivr ad ri iiv
What would keep you with your current employer?
Promotion/job advancement
Additional compensation
Additional bonuses or nan-cial incentives
Support and recognition romsupervisors or managers
Additional benets(i.e., health and pensions)
53%
30%
39%
21%
34%
What would encourage you to look or newemployment?
Lack o career progress
Lack o compensationincreases
Lack o job security
Lack o trust inleadership
New opportunitiesin market
28%
24%
24%
22%
24%
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In examining the data related to turnovertriggers and retention incentives, one actbecomes crystal clear: companies that deploy
a one-size-ts-all retention strategy will have
a hard time competing in the intensiying
worldwide competition or talent (see gure
5). Dierent generations have vastly dierent
goals, expectations, and desiresand employers
should tailor and target their talent strategiesto address every employee group, rom Baby
Boomers to Generation Xers to Millennials.
Bab Boomers eel rustratedad let dow.
Among the employees surveyed, Baby Boomers
expressed the strongest discontent with their
employers and the greatest rustration that their
loyalty and hard work has been neither recog-nized nor rewarded.
More than hal o the Baby Boomers
surveyed (51%) report that morale at their
companies has dropped over the past year.
Less than hal (47%) believe their com-
panies successully communicate their
corporate strategies.
Dierent generations appearto have very dierent goals,expectations, and desiresand employers must tailorand target their talentstrategies to satisy everyemployee group, rom BabyBoomers to GenerationXers to Millennials.
Talkin bout my generation
Four in ten Baby Boomers (41%) labeled
their companies ability to inspire trust and
condence in leadership as poor.
Among Baby Boomers, 32% cited lack
o trust in leadership as a key turnover
triggermaking it their top reason to leave
and the highest selection o any genera-
tion. Baby Boomers also listed lack o job
security and dissatisaction with manag-
ers/supervisors as prime motivators that
could cause them to leave their current
companies.
Raimiia (31 ad dr) grai X (a 32-47) Bab Br (a 48-65)
exiv e exiv e exiv e
1Company culture
(21%)Promotion/job
advancement (41%)
Additional bonusesor nancial
incentives (21%)
Promotion/jobadvancement
(64%)
Additionalbenets (26%)
Promotion/jobadvancement
(50%)
2Flexible work ar-
rangements (20%)Additional
compensation (40%)Additional
compensation (19%)
Additional bonusesor nancial
incentives (41%)
Additional bonusesor nancial
incentives (23%)
Support andrecognition rom
supervisors ormanagers (43%)
3
New training
programs or supportand recognition romsupervisors or manag-
ers (19% tie)
Additional bonusesor nancialincentives (33%)
Strong leadership (19%) Additionalcompensation (33%)
Additionalcompensation
or strongleadership/
organizationalsupport (21% tie)
Additionalcompensation (42%)
Fir 5. t r iv ri iiiaiv b rai: exiv v.
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Building the recovery togetherWhat talent expects and how leaders are responding
What will it take to keep Baby Boomers satis-
edespecially at a time when companies rec-
ognize the need to retain key leaders and keep
Baby Boomers on the job longer? While all
generations ranked promotion/job advance-ment as the number one retention incentive,
or Baby Boomers it was less o a priority. Just
hal (50%) cited promotions when asked to
pick their top potential inducements, com-
pared to nearly two-thirds o Generation Xers
(see gure 5).
More than our in ten Baby Boomers surveyed
(43%) wanted greater support and recognition
rom managers/supervisors, making it their
second highest retention incentive. Tese nd-
ings represent a shi in Baby Boomer attitudes
since the September 2009 survey, where 41%
o Boomers cited strong leadership as the
most eective retention incentive, ollowed
by additional nancial incentives (40%) and
additional compensation (36%).
geeratio X wats tomove up or move out.
Generation X employees are by ar the group
most likely to be looking at exit strategies rom
their current jobs (see gure 6). Many Gen
Xers surveyed appear rustrated that they are
bumping up against the gray ceilingwith
their career paths blocked by Baby Boomers
who are not moving out o the workorce.
Nearly our in ten Gen Xers surveyed (38%)
report they are currently seeking a new
job or have been actively looking over the
past year.
Only 28% o Gen Xers expect to stay with
their current employerssuggesting many
companies can expect a signicant exodus
among employees they were counting on to
become uture leaders.
One o the biggest talent challenges many
companies ace is opening up career paths
or the next generation o corporate lead-ers. Lack o career progress was the clear,
number one exit trigger or Generation X, at
38%. New opportunities in the job market
and lack o compensation increases lagged
well behind at 28% and 26%, respectively.
Te move-up-or-move-out attitude o
Generation X was also evident when Deloitte
asked employees to rank the top three retention
incentives that would persuade them to stay
with their current employers. For Gen X, pro-motion/ job advancement was the clear rst
choice at 64%, ollowed by additional bonuses
or nancial incentives at 41% and additional
compensation at 33% (see gure 5).
Baby Boomers
Generation X
Millennials
I have been actively looking or newemployment or the past 12 months
I am currently seeking newemployment
I plan to begin looking or newemployment within the next 12 months
I am passively looking or newopportunities
I expect to stay with my currentemployer
Fir 6. e i w b rai*
16%
13%
13%
35%
15%
25%
7%
32%
37%
15%
14%
22%
28%
16%
27%
*Survey participants who were actively looking (the frst three categories) could choose more than one response.
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Alo wit facial icetives,
Milleials seek a ew corporateculture wit proressive values.
Millennials share a desire to pull themselves
up the corporate ladder and want the -
nancial rewards that come with that career
progress. But when considering employers,
they also seek a corporate culture that aligns
with a dierent set o values than their more
experienced colleagues.
Nearly one in three Millennials (32%)
is about to begin looking or new career
opportunities in the next 12 months. Like
Generation X, Millennials also ranked
lack o career progress as their top exit
trigger, but less than their older colleagues
(30% compared to 38% or Gen Xers).
ReD FlAg FoR employeRs: RetIRement out oF ReAch.
Companies should consider ways to integrate older workers eectively into the workorce.Among the Baby Boomers surveyed, nearly hal (48%) believe that they will continue working
past age 65, compared to just 24% o Gen Xers and 11% o Millennials. More than one inevery ten Baby Boomers (13%) predicts he will work past 70. These demographic changes inthe workplace will likely require companies to create fexible approaches to work, retirement,learning, and education. According to the survey, workplace fexibility and rewards are themost important incentives or keeping Baby Boomers working and content. They tend todesire fexible work arrangements (38%), additional bonuses or nancial incentives (29%), andadditional compensation (27%). However, as the survey suggests, employers, by and large,have not been eective in creating career options or people working past 65, even thoughmany employers want their experience and will need their skills. Addressing the issue o how toengage older employees should be considered a talent priority.
Lack o compensation increases (28%) and
lack o job security (22%) round out the
top three departure drivers.
Millennials have a sharply dierent idea o
what makes or a strong corporate culture
than other generations. When asked, or
instance, how important a companys com-
mitment to sustainability is, nearly two in
three rated it very important compared
to just one-in-three Baby Boomers (35%).
By more than 2:1 (32% to 13%), Millennials
were more likely to consider their employ-
ers commitment to corporate responsibil-
ity/volunteerism very important than were
Baby Boomers. Millennials were also nearly
three times more likely to call a un work
environment important compared to Baby
Boomers (55% to just 19%) (see gure 7).
Baby Boomers
Generation X
Millennials
Sustainability
Creating a un work environment
Work-lie balance
Corporate responsibility andvolunteerism
Diversity and inclusion
Fir 7. W idri a r, w ira i raizai i wi?
13%33%
31%
19%
55%
29%
35%
63%
41%
38%
41%
53%
13%
32%
24%
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Building the recovery togetherWhat talent expects and how leaders are responding
TALEnT managers ace a number o seriouschallengesrom increasing employeerustration over the lack o clear career paths to
the rise o Internet and social media tools that
make it easier or key talent to shop or better
opportunities elsewhere. Addressing the chal-
lenges is a critical jobbut according to the
overwhelming majority o employees Deloitte
surveyed, talent programs at most companies
are alling short.
Only a scant 6% o employees who participated
in the March survey described talent programs
at their companies as world-class. By a mar-
gin o more than 7:1 (43% to 6%), employees
were more likely to rate their companies talent
programs as air or poor than world-class. Even broadening the denition o suc-
cessul talent programs to include companies
employees believe are doing a very good job,
nearly three in our companies (73%) ail to
clear the bar.
Given the dim view most employees have o
their companies overall talent eorts, it is not
surprising that companies did not are much
better when employees were asked to grade
specic talent programs.
By a margin approaching or exceeding 2:1,
employees were more likely to view many tal-
ent programs as air or poor than world-
class or very goodincluding developing
leaders (46% air/poor to 26% world-class/
very good); maintaining high morale (49%air/poor to 22% world-class/very good);
inspiring trust and condence in leadership
(48% air/poor to 26% world-class/very
good); creating career paths and challeng-
ing job opportunities (48% air/poor to 27%
world-class/very good); and providing career
mobility and international career assignments
(45% air/poor to 25% world-class/ very
good) (see gure 8).
Te only major area where employees gavetheir companies relatively high marks was pro-
viding competitive compensation and benet
packages, with 36% calling their companies
eorts world-class or very good compared
to 34% who rated them air or poor.
Dii Dr:Financial Services employeesgive poor marks to their companies HR/Talentprograms. A solid majority57%rated theiremployers overall talent eorts as air (44%)
or poor (13%).
DiiDr:Leaders oAmericasbasedcompanies
trail those inthe rest othe worldwhen itcomes towinningtheiremployeestrust. Morethan a third(35%) o theAmericas
employeessurveyedsaid a lacko trust inleadershipwould drivethem tolook or anew jobin the yearahead.Just 14%
o EMEAworkersand 21% oAsia Pacicworkersshare thesame view.
Employers need to lit their
game to deliver world-class talent programs
Inspiring trust in leadership
Creating career paths
Developing leaders
Maintaining high morale
Providing international assignments
Compensation and benets
e rad arra air r r
e rad arra wrd ar vr d
Poor
Fair
Very good
World class
Fir 8. e rai ir ai a rra
18%25%
25%
20%
28%
23%
12%
23%
23%
26%
21%
22%
22%
16%
20%
18%
18%
24%
8%
6%
7%
7%
8%
12%
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SO, what really works when it comes tokeeping employees committed to theircompanies and satised with their careers? Te
35% o employees surveyed who plan to stay
with their current employers agree on
one clear actor: strong talent programs.
Companies with the most eective talent
programs share several critical traits that oer
compelling lessons.
Create clear career pats.
O the employees surveyed who plan to remain
with their employers, 33% believe their com-panies are eectively creating challenging job
opportunities and clear career paths, compared
to 23% or employees who are looking to leave
their current jobs.
Develop a robust leadersip pipelie.
Based on our ndings, by a margin o 35% to
21%, employees committed to their employers
believe their companies are doing a world-class/very good job o developing leaders
through internal and external talent programs.
Inspire trust in leadership. Survey results indi-
cate that a third (33%) o employees who want
to stay with their current companies believe
their employers are world-class/very good
at inspiring trust and condence in corpo-
rate leadership, compared to just 23% among
employees looking to leave.
Strong talent programs = better
workorces, better workplaces,stronger companies
Focus o top perormers.
Survey results indicate by nearly 2:1 (44% to
23%) committed employees report their com-
panies do a superior job o retaining top talent
versus those looking or a new employer.
Commuicate eectivel.
Does your company do an eective job com-
municating with employees? Almost three-
quarters (72%) o the employees surveyed who
are sticking with their employers believe that
their employers do a good job communicating
with them22 percentage points higher thanemployees exploring new career options.
Companies ollowing this roadmap are reaping
signicant benets and positioning themselves
to win as the competition or talent intensies.
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Building the recovery togetherWhat talent expects and how leaders are responding
Committed employees. Surveyed employ-
ees with world-class or very good
talent programs are more likely to remain
with their current employer than those
with air or poor programs (42% vs.
23%), and they are less likely to even be
passively considering new employment
(14% vs. 32%).
Strong employee morale. Survey respon-
dents who describe their companies talentprograms as world-class or very good
are ar more likely to report higher morale
over the past year compared to those who
rate their HR program as air or poor.
When asked how morale had changed over
the past 12 months, a ull 72% o those
with strong talent programs said it had
improved or signicantly improved,
compared to only 16% o those with air
or poor HR programs.
Eective communication. Companies with
world-class or very good HR eorts are
much more likely to be eectively com-
municating critical issues to their employ-
ees. Nearly nine in ten (89%) employees
surveyed who rate their talent programs as
world-class/very good credit managers
or eectively communicating their compa-
nies strategic direction over the past year.
It is a mirror image or employees who rate
their HR air/poor; 81% said their manag-
ers had not communicated eectively dur-
ing the past 12 months.
Overall, employees who enjoy world-class or very good talentprograms are happier with their jobs and the development o theircareers than those whose organizations have poor HR programs.
Solid trust. According to our survey
ndings, employees who rate HR eorts
highly also believe their organizations
were transparent during times o economic
uncertainty. Tese employees gave their
companies excellent/world-class (23%) or
very good (34%) marks57% combined.
Te opposite was true or workers with
air or poor HR. More than three-quarters
(76%) o these respondents said their
employers did only a air (35%) or poor
(41%) job o remaining transparent.
Important values. Workers benetting
rom exceptional talent programs have
higher expectations rom their employ-
ers when it comes to corporate values
and commitments.
When considering an employer, nearlyall92%o the surveyed employees
believe their organizations commit-ment to sustainability is important(33%) or very important (59%).
Tey also highly value an employerscommitment to corporate responsi-bility83% said it was important(49%) or very important (34%)and or diversity and inclusion, 79%called it important (42%) or veryimportant (37%).
Future leaders. A strong talent program
includes delivering good career develop-
ment plans to employees. A large majority
o survey respondents with highly rated
HR programs described as very good/
world-class their companies perormance
in developing leaders and creating career
paths (60%), as well as in managing and
delivering training programs (59%).
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Building the recovery together
DELOITTES Talent Edge 2020 employeereport reveals clear, actionable strate-gies that employers can implement to deliver
world-class talent programs and keep top
talent committed to their jobs, excited about
their career prospects, and condent in their
corporate leadership. Winning companies are
targeting talent eorts to each generation,
creating clear career paths, and ensur-
ing employees have challenging
job opportunities.
Executives around the world are predicting
shortage o key talent in critical business
units. Firms will separate themselves rom
the competition i they step up their talent
programs now and rene their strategies to
engage with workers and ocus on specic
employee needs.
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Building the recovery togetherWhat talent expects and how leaders are responding
Survey demographics
FOR Deloittes Talent Edge 2020 employeereport, Forbes Insights surveyed 356 employ-ees working at large companies with annual
sales o over $500 million. More than three in
our (78%) work at companies with more than
$1 billion in annual sales (see gure 9).
Approximately three-quarters o survey partici-
pants were men (78%) and 22% were women(see gure 10).
Approximately a third o the survey participants
were drawn rom each generational group: 33%
Baby Boomers (ages 48 to 65), 32% Generation
X (ages 32 to 47) and 33% Millennials (ages 31
or younger). Te remaining 2% were ages 66 or
oldertoo small a sample size to be included
in any o the surveys ndings (see gure 11).
Fir 9. ca rv dri rfa ar
22%
26%
15%
17%20%
$500 million $999 million
$1 billion $4.9 billion
$5 billion $9.9 billion
$10 billion $19.9 billion
$20 billionor greater
Fir 10. Wa i r dr?
Female22%
Male78%
Fir 11. t wi rai d b?
Millennials(Ages 16 31)
33%
Generation X(Ages 32 47)
32%
Boomers(Ages 48 65)
33%
Veterans (Age 65+)
2%
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Talent Edge 2020
Participating employees were also distributed
across hourly (36%) and salaried roles (64%)
(see gure 12).
Participating employees were evenly dispersed
throughout the worlds major economic
regions: 35% in the Americas, 35% Asia
Pacic, and 30% in Europe, Middle East, and
Arica (see gure 13).
Every major industry was represented, led by
Consumer/Industrial Products (22%), ollowed
by echnology/Media/elecommunications
(21%), Financial Services (15%), Lie Sciences/
HealthCare(12%),andEnergy/Utilities(9%)
(see gure 14).
Edotes
1. Grieth, R. W., Hom, P. W., & Gaertner, S. (2000). A Meta-Analysis o Antecedents and Correlates oEmployeeTurnover:Update,ModeratorTests,andResearchImplicationsfortheNextMillennium.Journal of Management, 26.
2. Quoted in Golson, Jordan. How the Web Has Changed Job Searching.gigaom.com. 17 August 2009. Web.22 March 2011. http://gigaom.com/2009/08/17/how-theweb-has-changed-job-searching
3. Cachinko. 2011 Social Recruiting Trends and Strategies.7 January 2011. blog.cachinko.com. Web.22 March 2011. http://blog.cachinko.com/blog/wp-content/uploads/2011/01/2011-social-recruiting-whitepaper.pd
Fir 13. Rd b ai
Americas35%
Europe/Middle East/Arica30%
Asia Pacic35%
Fir 14. ca idri
Consumer/IndustrialProducts
22%
Lie Sciences/Health Care
12%
Technology/Media/Telecommunications
21%
Energy/Utilities
9%
FinancialServices
15%
Other21%
Fir 12. Wa b drib r r?
Full-time hourly36%
Full-time salaried64%
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Authors
Ai kwa
Deloitte Consulting [email protected]
j swarz
Deloitte Consulting [email protected]
Adrw lia
Deloitte Consulting LLP
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Ab rv
Talent Edge 2020 is a ollow up to te Managing Talent in a Turbulent Economysurveseries. Tis surve is te secod i a post-recessio loitudial stud bei coductedb Deloitte Cosulti LLP wit Forbes Isits. Tis report probes diverecesbetwee te attitudes ad desires o tree eeratios o emploees ad te taletstrateies ad practices bei utilized b emploers. Tis report eatures results romte Marc 2011 surve tat polled 356 emploees at lare busiesses i te Americas,Asia Pacifc, ad Europe, te Middle East ad Arica. www.deloitte.com/us/talet.
The statements in this report refect our analysis o survey respondents and are not intended to refect acts or opinions o any other entities. All surveydata and statistics reerenced and presented, as well as the representations made and opinions expressed, unless specically described otherwise, pertainonly to the participating organizations and their responses to the Deloitte survey.
This publication contains general inormation only and is based on the experiences and research o Deloitte practitioners. Deloitte is not, by means o thispublication, rendering business, nancial, investment, or other proessional advice or services. This publication is not a substitute or such proessional
advice or services, nor should it be used as a basis or any decision or action that may aect your business. Beore making any decision or taking any actionthat may aect your business, you should consult a qualied proessional advisor. Deloitte, its aliates, and related entities shall not be responsible or anyloss sustained by any person who relies on this publication.