8 Signs Talent Retention Strategies are faltering - Europe


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This ebook is extracted out of the report Acquisition and Retention in the War for Talent. It belongs to the Kelly Global Workforce Index, a global questionnaire of the workforce solution company Kelly Services across 30 countries with more than 165,000 participants.

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8 Signs Talent Retention Strategies are faltering - Europe

  1. 1. 8signs talentretentionstrategiesare falteringkelly Global workforce index ™Leif AgnéuSEurope: Denmark, france,germany, hungary,italy, norway, poland,portugal, russia, sweden,switzerland, UK
  2. 2. Talent retentions suffers a blow in EuropeOver the past three years, employees’ intentions to They want meaning in their work, they want to feel valuedleave their current jobs in the EMEA (Europe, Middle and they want to be challenged. Few organizationsEast and Africa) region have plateaued. Despite ongoing appear to be meeting the mark on these fronts, andeconomic turmoil and many employers assuming that employees are realistic about their ability to influencetheir people will seek security over new opportunities, for this change within their current roles. Instead, they’retalent retention efforts appear to have stalled. carefully planning their next career move with an eye to attaining new skills and broader experience, which theyNow, it seems employees are taking their careers hope will shore up their future employment prospects.into their own hands. They’re reporting high levelsof dissatisfaction, but it’s not the trivial kind. Rather, While there are significant differences betweenthey appear to be searching for organizations that will employees in particular countries throughout EMEA, theembrace their potential, provide them with consistent broad pattern is remarkably similar. Here, we offer somechallenges, and this—far more than higher salaries or food-for-thought for HR professionals and senior leadersbetter benefits—is the reward they are seeking in spite of to help turn it around.economic uncertainty.Kelly Global Workforce Index™ 2
  3. 3. 1 / Voluntary attrition has plateauedMost employees are looking to move organizations, and despiteongoing economic turmoil, loyalty has not increased.The idea that poor economic conditions encourages job switchingloyalty from employees is not holding up. Instead of a Job Switching EMEA Do you intend to look for a job with another organization within the next year? (% Yes, by region)decrease in the number of people intending to move 100organizations and roles over the next 12 months, the 76% 74% 54% 61% 76% 65% 70% 78% 54% 66% 63% 75%proportion has remained unchanged since 2009. Across 90the EMEA region, more than six in every 10 employees 80are seeking alternative employers this year. 70Workers in Portugal, Denmark, France, Italy and the UKlead this trend, all with around three-quarters of their 60workforces looking to change organizations. Russia and 50Germany both significantly buck this trend, with onlyaround half the workforce seeking new opportunities 40this year. 30It’s highly likely that employees’ movement plans are 20part of a broader career strategy to acquire new skillsand maintain a competitive edge in a less secure 10market. Employees are seeking differentiation in theirresumes, and few organizations seem able to offer it to 0 Denmark France Germany Hungary Italy Norway Poland Portugal Russia Sweden Switzerland UKtheir internal candidates.Kelly Global Workforce Index™ 3
  4. 4. 2 / They are making planned exitsExits from employers appear to be planned rather than rashdecisions made in response to trivial dissatisfactions.With the exception of employees in Poland, Hungary “I quit!”and Germany, most exits seem to be driven more by a I Quit! EMEA Do you frequently think about quitting your current job and leaving your employer? (% Yes, by region)clear career strategy, as opposed to deep dissatisfaction 100and frustration. 38% 32% 54% 56% 49% 41% 59% 37% 44% 41% 43% 41% 90While more than half the workforce in both Poland and 80Germany say they regularly feel the urge to quit, mostemployees in other parts of EMEA do not. Instead, they 70are looking to move in a more planned manner, usuallyto access new experiences and skills. Rather than a rash 60decision, their desires to leave are being driven with 50broader, longer-term goals in mind. 40That said, frustration levels are at their highest inthe EMEA region (43% say the frequently want to quit), 30compared with just 28% in the Americas and 39% 20in APAC. 10 0 Denmark France Germany Hungary Italy Norway Poland Portugal Russia Sweden Switzerland UKKelly Global Workforce Index™ 4
  5. 5. 3 / Many lack a sense of ‘meaning’ at workHappiness at work comes from a sense of meaning and achievement—without it employees are looking elsewhere in spite of economic uncertainty.Across the EMEA region, fewer than half of employees job fulfillment(46%) feel that they have a sense of ‘meaning’ in their Job Fulfillment EMEA Does your current employment provide you with a sense of “meaning”? (% Yes, by region)work. The UK and Germany report the lowest levels 100of job fulfillment with only around one-third of their 39% 49% 37% 48% 43% 47% 40% 42% 56% 41% 51% 35%workforces saying that they have a sense of meaning 90in their job. 80When asked what provides the greatest sense of 70meaning at work, most workers say they seek the“ability to excel and develop” in their field. The 60ability to excel draws the highest proportion of votes 50in Portugal and Sweden (81% and 78% respectively)and the lowest in Italy and Hungary (both 61%). While 40other issues such as connection with coworkers and 30the organization’s alignment with employees’ personalvalues also rates highly, the desire to excel wins out 20as the key issue for employees across the region, and 10indeed the world. 0 Denmark France Germany Hungary Italy Norway Poland Portugal Russia Sweden Switzerland UKKelly Global Workforce Index™ 5
  6. 6. 4 / They believe varied employment is a competitive edgeWhile some still believe its possible to have one employerfor life, most see multiple employers is a career asset.While four in ten workers in Portugal still believe in the one employer for lifeconcept of one employer for life (42%), far fewer people One Employer for Life EMEA To what degree do you agree or disagree that a “career-for-life” with one employer is relevant? (Total ‘agree’)in almost every other part of EMEA agree. 100 13% 16% 26% 11% 13% 28% 23% 42% 12% 19% 20% 31%In Hungary, Russia, Italy and Denmark, the idea of a 90career for life appears to have the least relevance, with 80only around one in ten employees saying they feel it isstill relevant. A career for life is slightly more acceptable 70in Poland (23%), Germany (26%), Norway (28%) andthe UK (32%). 60 50Almost two-thirds of workers in the UK (65%) believethat gaining experience with multiple employers is an 40asset to their careers. While this is high, it’s the lowest ofthe larger EMEA countries. This figure is 73% in Poland, 3074% in Italy, 75% in Switzerland, 76% in France and 20Portugal, and slightly higher in Germany and Norway(both 77%) and Russia (78%). 10 0 Denmark France Germany Hungary Italy Norway Poland Portugal Russia Sweden Switzerland UKKelly Global Workforce Index™ 6
  7. 7. 5 / They’re not looking for a counter offerFew employees are keen to have an open dialogue with their employers abouttheir desire to move on, which signals their minds are already made up.Less than three in ten employees across the EMEA likely to share quitting plansregion say they would share their quitting plans with How likely are you to share your potential plans to move to another organization with your employer, withtheir employers in the hope that a counter offer Likely to share quitting plans EMEA the thought that this may result in changes that may motivate you to stay? (Total ‘likely’, by region)might be made. 100 17% 28% 22% 18% 16% 28% 30% 22% 18% 35% 28% 26% 90This is lowest in Italy (16%), Demark (17%) and Russiaand Hungary (both 18%), and highest in Poland and 80Sweden (30% and 35% respectively). This suggeststhat most employees are set on their plans to move 70organizations regardless of their managers’ response 60to their resignation, and are doing so because theydon’t believe their current organization has anything 50further to offer them. 40 30 20 10 0 Denmark France Germany Hungary Italy Norway Poland Portugal Russia Sweden Switzerland UKKelly Global Workforce Index™ 7
  8. 8. 6 / They feel the least valued &utilized of all employees globallyJust 39% of employees in the EMEA region say they realising potentialfeel valued by their current employer—significantly Realising potential EMEA Do you feel that our current employer is realising the full benefits of your potential? (% Yes, by region)behind employees in the Americas (45%) and 100APAC (51%). 26% 28% 22% 20% 29% 30% 13% 26% 23% 27% 33% 24% 90Perhaps more concerning is the low level of employees 80who report that they are being fully utilized in theircurrent role. Only around three in ten employees in 70the region say they are using their skills sufficiently, andif job movement is tied to employees’ ability to use 60their skills and excel, the outlook for talent retention 50across the region is poor. Employees in Poland ratetheir employers well below the rest of the region on 40this count, with little more than one in ten employees 30feeling their employers are realizing their full potential. 20 10 0 Denmark France Germany Hungary Italy Norway Poland Portugal Russia Sweden Switzerland UKKelly Global Workforce Index™ 8
  9. 9. 7 / They want personal fulfillment and to be challengedWhat really keeps employees engaged— enjoyable andchallenging work—is no easy task to respond to.When asked about what drives the decision to accept Factors that drive job choice factors that drive job choiceone role over another, personal fulfillment and personal Which of the following factors would drive your decision to accept one job/position over another? (By region)growth/advancement accounts for around seven in 100every ten responses across the EMEA region. Thestarkest contrast on these counts is found among 90employees in Denmark, the UK, Switzerland and 80Germany—in these countries an exceptionally smallproportion of people feel that compensation and 70benefits drives their choice to accept one role over 60another. Yet, in Hungary compensation is a major driverof job choice, with almost four in ten employees feeling 50it is a key consideration. 40Similarly, when asked which factor makes them feel 30more committed and engaged with their current job,‘more challenging and interesting work’, and ‘more 20meaningful responsibility’ accounted for the majority ofresponses—well ahead of higher salaries and benefits. 10 0 Denmark France Germany Hungary Italy Norway Poland Portugal Russia Sweden Switzerland UK Personal fulfillment/growth/advancement Compensation/benefitsKelly Global Workforce Index™ 9
  10. 10. 8 / Their desire for reward is personalDon’t just assume all employees are looking for a pay rise—it’s more complicated than that.More employees across the EMEA prefer to be Rewarding Performance rewarding performancerewarded via a financial bonus than those in other What is your preferred way of being rewarded for good performance at work (By region)regions. However, in most cases this type of reward is 100the preferred option for fewer than half of the workingpopulation. Only Germany and Russia stand out as the 90countries where most workers prefer and expect this 80kind of reward. 70A significant proportion of people say they do notrequire any form of reward at all for a job well done. 60This is highest in Denmark where almost one-quarter 50say no reward is required, followed by Portugal and theUnited Kingdom with almost one in five (19%) agreeing. 40This compares with just 5% in Germany and Hungary, 304% Italy and 2% in Russia. 20The significant differences across all countries andregions points to the fact that rewards and incentives 10are very personal. Having a one-size-fits-all approach 0is likely to miss the mark, as none of the suggested Denmark France Germany Hungary Italy Norway Poland Portugal Russia Sweden Switzerland UKperformance rewards can claim to meet the desires ofthe majority of any worker population. Financial Bonus None requiredKelly Global Workforce Index™ 10
  11. 11. conclusionA strong, global pattern has emerged in talent retention, • Give employees a voice in how they’re rewarded: on managers. Allowing employees to choose projectsand employees across the EMEA region are no exception. don’t assume a bonus will always be top of the list. and make a case for being part of them, as wellDeclining satisfaction and meaning at work is reaching a Consider other projects, skills and responsibilities that encouraging other departments/managers and teamsnatural crescendo—and it’s hardly assisted by ongoing staff can be exposed to should they reach their high- to seek skills internally, will increase development andmarket turmoil and the quickening pace of change. Most performance target. After all, large numbers of people growth opportunities for internal talent.people are planning to switch organizations within the say that challenging work helps to keep them engaged • Focus on ways to demonstrate the outcomes andnext year, and they have clear, strategic reasons why in their job. contribution of each employee’s role: meaningthey’re doing so. • Commit resources to documenting and keeping at work is critical to engagement and satisfaction, track of employees’ skills: few employees feel their so finding ways to demonstrate the ways in whichFew feel that their current organization is accessing their full potential is being utilized in their role. This is a each role contributes to overall outcomes is key topotential, which inevitably throws up a negative cycle poor outcome for both employee and employer. Some retention and productivity. Team recognition is fine, butin the talent retention stakes: as one employee leaves of this is simply that managers and HR departments individuals want to see how they impact results too, andto pursue their potential, another arrives in their place do not always have a clear view of the skills that this means finding ways to measure and report on it.with the same goal. It seems both will get what they each employee has, and as a result they fail to beseek for the short term and then the cycle will repeat, • Make the most of contingent workers: around proactive about helping employees use these as newleaving HR and hiring managers to pick up the pieces and one-third of most workforces are now made up of opportunities arise.consistently plug skills gaps in a tightening market. contingent labor, and these workers need to be kept • Find ways to move employees internally: for most engaged, motivated and rewarded too. This highlyInstead of being locked into an endless, vicious cycle, HR employees, the idea of an employer for life is outdated skilled group offers a wealth of potential, but if it’sprofessionals, hiring managers and senior leaders in the and instead they actively seek new employers to not being used, they’re more likely than others toregion should look to: access and develop new skills. This can be provided move quickly. internally, but is likely to fail if the entire process reliesKelly Global Workforce Index™ 11
  12. 12. This ebook is extracted out of the report Acquisition and Retention in the War for Talent. Download your FREE copy today.About the AuthorLeif Agnéus is senior vice president and general manager, Europe, Middle East, and Africa for Kelly Servicesand oversees our operations across 16 countries and territories in the EMEA region. Leif holdsa master’s degree from the Ecole Hotelière de Lausanne with majors in finance and service delivery. He is aboard member of Eurociett and a member of the Swiss American Chamber of Commerce.MethodologyThe Kelly Global Workforce Index was open to respondents around the globe and took the form of a questionnaire on theKelly Services website. Data was collated and analyzed by RDA Group. A number of questions have remained consistent overthe course of the survey and allow time-series analysis.About KellyKelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions. Kelly® offers a comprehensive array ofoutsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire and direct-hire basis. Servingclients around the globe, Kelly provides employment to more than 550,000 employees annually. Revenue in 2011 was $5.6 billion.Visit www.kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter. EXITKelly Global Workforce Index™