READER S GUIDE - Recruiting and Full Talent Solutions Papers/Hudson... · As the demand for top...

READER’S GUIDE

1

Contents

Why Employees Walk: 2005 Retention Initiatives Report

Section 1 Reader’s Guide 3 Section 2 Executive Summary 4 Section 3 Retention Factors 8

a. Overview 8 b. Salary 10 c. Benefits 12 d. Management Relationship 14 e. Opportunity for Advancement 16 f. Training 18 g. Work-life Balance 20

Section 4 About the Research 22 a. Data Collection 22

b. Sampling Errors 22 c. About the Respondents 22 d. Other Key Findings 24

Copyright 2005 by Hudson Highland Group, Inc. - All Rights Reserved. Hudson Highland Group, Inc. commissioned a national survey on retention initiatives from Rasmussen Reports, LLC, an independent research firm (RasmussenReports.com). Hudson Highland Group, Inc. prepared the information contained in this document for distribution. Hudson Highland Group, Inc. reserves the right to change the information in this document without prior notice. This guide may not be reproduced in whole or in part, by any means, without the written permission of Hudson Highland Group, Inc.

2

READER’S GUIDE Why Employees Walk: 2005 Retention Initiatives Report

Report Purpose & Methodology As the demand for top talent increases, organizations need to implement creative and strategic retention initiatives. Understanding which work-related elements have the most impact on retention – beyond competitive salary and benefits – can help organizations contain costs and achieve business goals. As a starting point, employers need to know how their employees, especially top performers, perceive their current situation. Does a high salary alone truly keep employees, or can companies lengthen the employee lifecycle more effectively by creating a work environment that engages employees, allows for career growth, and promotes a healthy work-life balance? To find out more, Hudson commissioned a national survey of 10,000 U.S. workers to gain insight on successful retention strategies. The respondents were asked about their current job tenure and what they expected from their employers. Within that context, we also examined the importance of six crucial retention factors: salary, benefits, relationship with manager, work-life balance, opportunity for advancement, and training. Respondents were asked two questions for each of these: 1) How important is it for you to work somewhere where that factor exists? and 2) How would you rate the way that your current employer provides that factor? Hudson compared the average importance rating to the average employer performance ranking for each factor and examined how job search behavior might be impacted. Examining the gap between these two measures reveals not only how well U.S. employers are meeting their employees’ desires, but also what factors are most likely to compel someone to seek and accept employment elsewhere. In other words, what retention measures are expected and which are just ‘nice to haves’? The Executive Summary presents key findings from Hudson’s survey and highlights potential solutions and approaches to addressing related issues in your own organization. The Retention Factors section examines the six key retention factors in more detail. Demographic data and specific questions are presented in detail later in the report. About Hudson Hudson delivers specialized professional staffing, outsourcing and human capital solutions worldwide. From single placements to total solutions, the firm attracts, selects, and develops talent to meet the specific business needs of each client. Hudson is a division of Hudson Highland Group, Inc. (NASDAQ: HHGP), one of the world’s leading professional staffing, retained executive search and human capital solution providers. More information is available at www.hudson.com.

3

http://www.hudson.com/

EXECUTIVE SUMMARY Why Employees Walk: 2005 Retention Initiatives Report

Executive Summary Hudson’s Retention Initiatives survey revealed that although salary and benefits continue to be important components of retention, additional factors play a large part in determining an employee’s tenure. “Faced with the dilemma of rising healthcare costs and limited salary budgets, it is essential that employers look beyond pay to create a positive environment that will keep top performers,” said Robert Morgan, COO of Hudson Human Capital Solutions (HCS). “Factors such as work-life balance initiatives, opportunities for growth and the employee/manager relationship are key elements when it comes to retention.”

Although the largest gaps between perceived importance and employer performance appeared within benefits and salary, those factors do not necessarily push employees to actively look for outside opportunities.

However, when it came to factors such as career advancement opportunities and manager relationships, even though the gap was much smaller, workers were much more likely to be actively searching for other opportunities if a disconnect existed.

Average Rating of Importance and Performance For Each Retention Factor (where 0 = not important/poor and 4 = very important/excellent)

0 0.5 1 1.5 2 2.5 3 3.5 4

Manager Relationship

Training

Work-Life Balance

Opportunities

Salary

Benefits

Gap

Employer Performance

Importance

The survey also documented decreasing job tenure within the workforce, as a significant portion (50%) expects to change companies within the next five years, with over one-third (36%) staying less than three years. Twenty years ago, job-hopping was practically unheard of and frowned upon; yet today it is not uncommon for employees to work for dozens of different companies within their lifetime. For example, 50% of survey respondents indicated that they have been with their current employer less than five years and only 23% have worked for an employer more than 15 years.

4


“Clearly, ‘employment for life’ is no longer a realistic concept for most workers,” according to Morgan.

Supported by the dramatic decline in benefit pension plans replaced by “portable” 401K plans, employees can more easily make a change without it affecting their career path or retirement fund. Even when employees feel good about their organization, they still often leave. Hudson’s survey found that although the majority of workers (62%) would recommend their company to others as a good place to work, one-third (32%) are actively looking or ready to make a career jump. In addition, entrepreneurial workers are increasingly addressing their lifestyle needs by becoming their own boss. Recommendations While a certain level of turnover is to be expected and even encouraged, employers may be overlooking other crucial strategies that affect their retention of top talent. First, they may have to recalibrate their expectations to reflect declining organizational tenures. Because half of the workforce plans to switch companies within the next five years anyway, companies who can extend an employee’s tenure by one additional year stand to dramatically reduce turnover costs. The cost to replace an employee varies dramatically, but some estimates put that number to be as high as 150% of that person’s salary. Our data suggests that organizations might improve retention if they effectively address key retention issues other than compensation and benefits.

Percentage of Employees and Their Expected Length of Stay at Current Employer

50

2319

0

10

20

30

40

50

60

Less Than 5 Years 5-15 Years 15+ Years

Companies who ranked low on opportunities for advancement and manager relationships had the highest incidence of employees who were actively seeking another opportunity.

Mentoring programs, 360o reviews, job rotation and leadership training are just a few of the mechanisms to address these factors. Organizations can also take further action to help improve retention by engaging employees for feedback. While only 36% of companies conduct internal surveys to find out the pulse of their employees, a majority of workers say they would participate if given a chance. In fact, 72% of those whose companies offer surveys say they always participate. Employees can provide valuable feedback on what you do well and where you can improve, but you have to ask.

5


Additionally, finding a balance between attracting talent and not providing a training ground for competitors can be a tough challenge. While 40% of the respondents felt their company kept their best and brightest on board, an equal number (40%) reported that key talent typically left to find better opportunities. Being able to attract and train employees is only half of the battle; knowing how to keep them challenged, engaged and committed is essential for successful retention. Key Data Points Gap Analysis

o Salary was considered important by the highest percentage of respondents (96%), followed by: benefits (93%), work-life balance (93%), relationship with manager (92%), opportunity for advancement (87%), and ongoing training (84%).

o The relationship with one’s manager had the highest performance rating, as 80% of

respondents stated their company did an excellent or good job at meeting that need. Work-life balance (68%), ongoing training (56%), salary (54%), benefits (51%), and opportunities for advancement (49%) followed.

o The relationship with manager had the smallest importance-performance gap, but of those

who reported that this was very or somewhat important and their company did a fair or poor job with this factor, 22% reported they were actively looking.

Job Search Status

o One-third (32%) of the workforce is actively looking or prepared to move to another job. o Another 41% is not actively looking, but would listen if someone contacted them.

o One-quarter of the workforce (25%) is not actively looking and would not consider changing

jobs. Tenure

o Half of the workforce has been with their current employer for less than five years. One in five (21%) workers have been with their current employer between 5-10 years and nearly one-third (29%) for over 10 years.

o Thirty-two percent of the workforce indicates that their longest tenure at a job has been five

years or less, while 29% report they have been with the same employer for 5-10 years and four in ten workers more than 10 years.

o Only 28% of employees plan to be with their current company more than 10 years, while half

(50%) plan to be there less than five years.

6


Miscellaneous o Of the employees who have been with their current employer more than five years, 80%

rated their relationship with their manager as excellent or good, the most highly ranked factor for those with this length of tenure. Work-life balance was second with 69% of those employees reporting this.

o However, only 57% of those who reported being with their employer more than five years

stated their salary was good or excellent (one of the lowest ranked factors).

o Only 36% of the respondents reported that their organizations conduct internal surveys to gather information about what is important to their employee base. Of those, nearly three-quarters (72%) always participate in those surveys.

o Workers are equally split about top talent in their organization – 40% feel key talent leaves

to go elsewhere, and 40% feel they stay with the company.

7

RETENTION FACTORS Why Employees Walk: 2005 Retention Initiatives Report

Retention Factors Overview Although compensation has traditionally served as the primary bargaining tool, in-demand employees require more than money. Factors such as flexible work schedules or opportunities for advancement are often underrated, yet can be a key element in an employee’s decision to leave a company. In this section, Hudson examines each retention factor’s perceived importance, employer performance rating and the gap between the two, as well as its potential impact on employee choices and attitudes. For a baseline reading on retention rates, it is important to be aware of employees’ job search status. Hudson’s survey found that while a plurality of workers (41%) are passively receptive to a new job, 14% of the working population is actively seeking a new opportunity and another 18% have updated resumes and are ready to consider other prospects.

That means that only 25% of the workforce currently is not willing to leave their employer – the other 75% could leave at any given point.

Percentage of Respondents Within Certain Stages of Job Searching

Updated Resume and Ready to

Consider18%

Not Sure2% Actively Looking

14%Would Not Consider Change

25%

Not Actively Looking, Will

Listen41%

Another way employers can gauge employee satisfaction is by measuring how likely they are to recommend their company as a good place to work. It is not surprising that those who reported that their company did a fair or poor job at providing any given factor were much less likely to recommend their company than those who rated the company’s performance as excellent or good. However, certain factors tipped the scales in favor of recommendation more dramatically. As shown below, “soft” measures such as a positive manager relationship and work-life balance had a larger impact on whether someone would recommend their company than both salary and benefits.

8


Percentage of Respondents Who Would Recommend Their Organization to Others

7269 65 64

9082

817

26 29 3233

0102030405060708090

100

Rel

atio

nshi

pw

ith M

anag

er

Wor

k-lif

eB

alan

ce

On-

goin

gTr

aini

ng

Sal

ary

Opp

ortu

nity

for

Adv

ance

men

t

Ben

efits

Positive Rating

Negative Rating

*Positive Rating = Excellent or Good and Negative Rating = Fair or Poor Additionally, understanding which factors are most likely to push individuals to actively look at outside job opportunities can help organizations develop better retention programs. This survey looked at the population of individuals who rated a particular factor as very important but said their organization was doing a poor job in that area. Opportunity for advancement represented the factor with the highest incidence of workers who were actively looking, followed by manager relationship and training. Here, future prospects trumped the working environment, but still beat out salary and benefits.

Impact of High Importance and Poor Performance on Active Job Search

FACTOR PERCENT ACTIVELY LOOKING Opportunity for Advancement 41% Relationship with Manager 37% Training 36% Fair Salary 34% Work-life Balance 33% Benefits 31%

*When "factor" is very important and company does a poor job meeting this element, then "x%" of employees will be actively looking for another opportunity.

The data in the following sections showcases what the workforce of today looks likes as well as how each factor is viewed by the workforce. In addition, a further breakdown of demographic data can be found in the section “About the Respondents.”

9


Salary Compensation is undoubtedly a key to attracting and maintaining top talent. Clearly, employees find a fair and competitive salary important, even a necessity. In fact, 96% of the respondents in this study stated that a fair salary was very or somewhat important – the most of all the factors examined. However, only half (54%) of all respondents felt their company did an excellent or good job at providing this element. Importance of a Fair Salary How Well Does Your Employer

Provide a Fair Salary? Even with one of the largest importance-performance gaps, salary did not necessarily affect employees’ decisions to leave their current company. While salary was considered important by the highest percentage of respondents (96%), it ranked fourth among the factors as to the number of individuals actively looking when their companies did a poor job. Specifically, for those who rated this factor as very important yet their company did a poor job, one-third (34%) reported they were actively looking. This shows us that although important in most workers’ minds, other elements such as opportunity for advancement and manager relationships are bigger drivers in employee job search behavior.

Excellent22%

Good32%

Fair27%

Poor16%

Not Sure3%

Very Important

83%

Not Very Important

2%

Not At All Important

1%Not Sure

1%Somewhat Important

13%

Gap Analysis of Salary

*On a scale of 1-4 (1 being the lowest and 4 being the highest), the level of importance for salary was high and the performance was moderate, leaving a gap of just over 1 point - nearly the highest of all factors.

1.22

2.54

3.76

0 1 2 3 4

Importance

EmployerPerformance

Gap

10


Impact of High Importance and Performance on Active Job Search for Salary

Very Important Excellent Good Fair Poor Actively 12 8 15 34 Have Updated Resume 11 19 22 23 Would Listen 34 46 45 34 Would Not Consider 42 26 14 8

*Percentage of respondents and their job search status based on salary rated as “very important” by performance rankings.

11


Benefits While healthcare and retirement benefits have a strong impact on retention tactics, rising costs and diminishing programs have forced workers to be less dependent on receiving them. In a former study, Hudson found that 42% of the workforce either would or already does work for an organization that does not offer healthcare benefits, and 33% work for a company that does not offer a retirement program. In this study, 93% of the population reported that this factor is very or somewhat important, yet barely half (51%) felt they are working at a company that does a good or excellent job at providing benefits – the largest gap of all the factors. Importance of Benefits How Well Does Your Employer Meet Your Benefits Needs? Although this was the largest gap of all elements, employees were not that compelled to leave their current situation when this need wasn’t being met. In fact, of those who said that benefits were very important, but their employers did a below average job at providing them, 12% still would not consider leaving the company – one of the highest percentages reported for any of the factors.

Excellent23%

Good28%

Fair23%

Poor22%

Not Sure4%

Very Important

83%

Not Very Important

2%


1%Not Sure


13%

Gap Analysis of Benefits

*On a scale of 1-4 (1 being the lowest and 4 being the highest), the level of importance for benefits was high and the performance was moderate, leaving a gap of over 1 point, the highest of all factors.

1.26

2.44

3.7

0 1 2 3 4

Importance

EmployerPerformance

Gap

12


Only 31% of those who ranked this as very important yet whose company did a poor job were actively looking – the lowest reading. It appears that employees do not feel this is a major factor worth leaving for, perhaps because they don’t think the “grass is greener” anywhere else.

Impact of High Importance and Performance on Active Job Search for Benefits


*Percentage of respondents and their job search status based on benefits rated as “very important” by performance ranking.

13


Relationship with Manager The manager-employee relationship has a direct impact on how employers view their working experience and how long they choose to stay. Because so many HR functions have been pushed down to managers, it is essential that supervisors know how to properly communicate, motivate and interact with their staff. When workers were asked about the importance of this factor, 92% said it was very or somewhat important and 80% thought they were in a good or excellent situation – the largest positive reading for any factor. Importance of Relationship How Would You Rank Your

Relationship With Your Manager? “With so much time spent at the workplace, it is imperative to develop a cohesive atmosphere between the employee and the manager. If employees can’t trust their managers or gain support from them, they are most likely going to move on quickly,” said Robert Morgan, COO of HCS.

Excellent40%

Good40%

Fair13%

Poor5%

Not Sure2%

Very Important

64%


2%

Not Sure1%Not Very

Important4%

Somewhat Important

29%

While this factor showed the smallest importance-performance gap, when employees do not have a strong relationship with their manager they are very likely to move on to other opportunities. Of those who thought their relationship with their manager is very important yet their current situation was poor, nearly four in ten (37%) stated they were actively looking – second only to opportunity for advancement. When the situation was excellent though, only one in ten workers (11%) reported they were actively looking.

14


Gap Analysis of Manager-Employee Relationship

*On a scale of 1-4 (1 being the lowest and 4 being the highest), the level of importance for manager-employee relationship was high and the performance was high, leaving a gap of just under .5 points, the smallest of all factors.

0.38

3.11

3.49

0 1 2 3 4

Importance

EmployerPerformance

Gap

Impact of High Importance and Performance on Active Job Search for Manager-Employee Relationship


*Percentage of respondents and their job search status based on relationship with manager rated as “very important” by performance ranking.

15


Opportunity for Advancement As the economy improves and the war for talent increases, it will be more important than ever to have programs in place that allow for organic growth and advancement. When companies take effective steps to help employees excel, they are able to extend tenure and provide opportunities for employees to grow with the business. While 87% of employees stated that this factor is important to them, not even half (49%) of companies are actively doing a good or excellent job at promoting this; in fact nearly an equal portion (47%) felt their companies are doing a fair or poor job. Importance of Advancement How Well Does Your Employer Opportunities Provide Advancement Opportunities? While the gap here isn’t quite as large as with benefits or salary, it is still important to see how it affects employees’ satisfaction and willingness to look at other opportunities. Forty-one percent of those who stated that opportunity for advancement was very important but their companies performed poorly were actively looking for other opportunities – the largest of the factors. However, the more employers did to provide better job advancement, the more likely employees were to stay. In fact, while only five percent stated they would not consider leaving if their employer was doing a poor job, that figure rocketed to 40% for those who were doing an excellent job.

Excellent20%

Good29%Fair

28%

Poor19%

Not Sure4%

Very Important


32%


3%

Not Sure1%Not Very

Important10%

Gap Analysis of Advancement Opportunities

*On a scale of 1-4 (1 being the lowest and 4 being the highest), the level of importance for advancement opportunities was high and the performance was moderate, leaving a gap of just under 1 point.

16

0.97

2.42

3.39

0 1 2 3 4

Importance

EmployerPerformance

Gap


Impact of High Importance and Performance on Active Job Search for Advancement Opportunities

Very Important

Excellent Good Fair Poor Actively 14 10 21 41 Have Updated Resume 15 21 24 22 Would Listen 29 49 42 30 Would Not Consider 40 19 12 5

*Percentage of respondents and their job search status based on opportunities for advancement rated as “very important” by performance ranking.

17


Ongoing Training Programs such as training, mentoring, and coaching are becoming more and more popular as companies strive to find ways to revitalize and engage their current workforce. “When workers feel that they are learning and being challenged, they are more likely to stay committed to their employer,” said Robert Morgan, COO of HCS. Creating an environment that focuses on a path and career direction can also be very helpful in taking control of retention issues. Importance of Training Programs How Well Does Your Employer

Provide Ongoing Training? This study showed that while 84% of the respondents felt that training was very or somewhat important, only 56% felt their company did a good job at providing it. While the overall gap between importance and performance was smaller than some of the other factors, the impact of not providing adequate training was much greater when it came to job searching.

Very Important


32%


4%

Not Sure1%

Not Very Important

10%

Excellent25%

Good30%

Fair26%

Poor16%

Not Sure3%

Gap Analysis of Ongoing Training

On a scale of 1-4 (1 being the lowest and 4

f those who felt training was very important but their company did a poor job at providing it, 36%

*being the highest), the level of importance for training was high and the performance was moderate, leaving a gap of just under 1 point.

O

0.67

2.61

3.28

0 1 2 3 4

Importance

EmployerPerformance

Gap

were actively looking and another 21% had an updated resume and were prepared to leave. However, when an organization was doing an excellent job at providing training, only 13% were actively looking.

18


Impact of High Importance and Performance on Active Job Search for Training

Very Important Good Fair Excellent Poor

Actively Looking 13 11 20 36 Have Updated Resume 14 18 25 21 Would Listen 35 44 40 35 Would Not Consider 36 25 13 8

ercentage of respondents and their job search status based on training rated as “very important” by *Pperformance ranking.

19


Work-life Balance While trying to find balance between work, family, leisure and community can be a struggle, employees are willing to make sacrifices in order to obtain that balance. Although most companies appear to offer some flexibility (in fact a recent Hudson survey showed that 61% of employees reported that their companies promoted balance), those who do not will most likely find that their employees will look elsewhere. With 93% saying that work-life balance is very or somewhat important, 68% say that their organizations do an excellent or good job at providing this. Importance of Work-Life Balance How Well Does Your Employer

Promote Work-Life Balance? The gap here is minimal compared to other factors, yet it plays a strong role in employees’ commitment to stay with a company. If employees find this to be very important and companies are not providing this lifestyle, then 33% are actively pursuing other opportunities. In addition, another 55% have an updated resume and are ready to make a move or would listen to other opportunities. Only 10% of these individuals state they would not consider a change at the moment.

Very Important

72%


2%

Not Sure1%

Not Very Important

4%

Somewhat portant21%

Im

Excellent36%

Good32%

Fair20%

Poor10%

Not Sure2%

Gap Analysis of Work-Life Balance

*On a scale of 1-4 (1 being the lowest and 4 being the highest), the level of importance for work-life balance was high and the performance was moderate, leaving a gap of just under 1 point - nearly the lowest of all factors.

0.71

2.9

3.61

0 1 2 3 4

Importance

EmployerPerformance

Gap

20


Impact of High Importance and Performance on Active Job Search for Work-life Balance

Very Important Excellent Good Fair Poor

Actively 12 11 18 33 Have Updated Resume 13 18 27 22

Would Listen 38 48 42 33 Would Not Consider 35 21 10 10

*Percentage of respondents and their job search status based on work-life balance rated as “very important” by performance ranking.

21

ABOUT THE RESEARCH Why Employees Walk: 2005 Retention Initiatives Report

Data Collection Background This data is compiled by Rasmussen Reports, LLC, an independent research firm, based upon telephone interviews and survey responses from 10,000 U.S. workers (RasmussenReports.com). The data was collected over the course of approximately two weeks within August 2005. Sampling Error The margin of sampling error for this survey of 10,000 interviews is approximately plus or minus one percentage point with a 95 percent level of confidence. All reported samples for other demographics include a margin of sampling error no greater than plus or minus five percentage points. For all surveys, sampling error is only one potential source of survey error. Other factors, such as question wording, survey design, and overall methodology may impact the reported results. Sampling Error Chart

Number of Respondents

400 - 599 600 - 999 1000 - 2499 2500 - 4999 5000+

Sampling Error Percent

+/- 5 +/- 4 +/- 3 +/- 2 +/- 1

About the Respondents Survey respondents represent a cross section of the U.S. workforce. Individuals self-select their background and experience, including age, salary level, geography, gender, ethnicity, etc. In addition, the market was segmented by eight occupational disciplines: Accounting & Finance, Engineering, Healthcare, Human Resources, Information Technology (IT), Legal, Manufacturing and Other Services, as well as by government, entrepreneurs and private enterprises. See the following pages for full detail around different demographics tracked. A complete set of responses for each category is available by contacting us at [email protected].

22


COMPANY TYPE SAMPLE SIZE

Government 2134Entrepreneurs 2159Private Enterprise 5708Managers 2692

COMPENSATION SAMPLE SIZE Salary under 20K 152220-40K 272140-60K 206160-75K 111375-100K 1001100K + 1094

OCCUPATION SAMPLE SIZE Accounting & Finance 864Engineering 540Healthcare 1495Human Resources 341IT 514Legal 367Manufacturing 1094Other Services 3323

COMPANY SIZE SAMPLE SIZE Under 50 employees 370750 -100 1305100 - 250 1137250 - 500 877500+ 2602

DEMOGRAPHIC GROUPS SAMPLE SIZE Men 5784Women 4217Age: 18-29 Years 2714Age: 30-39 Years 2510Age: 40-49 Years 2503Age: 50-64 Years 1913Age: 65+ Years 361White 7737African American 1049Other 1215Married 6115Not Married 3886Kids at Home 4183No Kids at Home 5818

STATES SAMPLE SIZE California 1,000Florida 530Illinois 450Michigan 446New York 624Ohio 482Pennsylvania 489Texas 597

23


Other Key Findings by Demographic Categories COMPANY TYPE

Companies That Conduct Internal Surveys

36

43

28

36

05

101520253035404550

All Government Entrepreneurs PrivateEnterprise

*Percentage of respondents that work at companies where internal surveys are conducted.

o Government employees were most likely to report that their organizations conducted internal surveys.

o Just over one-third (36%) of the general workforce is employed by companies that conduct

internal surveys.

24


Importance of Six Retention Factors

75 80 85 90 95 100

Salary

Benefits

*Percentage of employees within private enterprise companies, government organizations, or entrepreneurs

who ranked each factor as very or somewhat important.

o All three types of employees most often reported salary as being very or somewhat important.

o Entrepreneurs found work-life balance to have the second most importance.

o 94% of government workers reported benefits and work-life balance to be of equal

importance after salary.

o Private enterprise workers reported benefits (95%) following salary to be important.

Relationship with Manager

Opportunity for Advancement

Training

Work-life Balance

Private Enterprise

Entrepreneur

Government

25


COMPENSATION LEVEL

Percentage of Respondents Who Would Recommend Their Organization as a Good Place to Work

5662

6972 75

50

0

10

20

30

40

50

60

70

80

Under 20K 20K-40K 40K-60K 60K-75K 75K-100K 100K+

o Those who made more money were more likely to recommend their company as a good place to work.

Percentage of Respondents Who are Actively Looking or Have an Updated Resume and Are Ready to Leave

50

38

27 27 2623

0

10

20

30

40

50

60

Under 20K 20K-40K 40K-60K 60K-75K 75K-100K 100K+

o Those who make more money are less likely to be looking at other opportunities. o On average, nearly one-third (32%) of the workforce is looking (either actively or with

resume prepared) to leave their current organization.

26


OCCUPATION

Employees’ Anticipated Length of Stay with Their Current Employer

0

10

20

30

40

50

60

Accou

nting

Engine

ering

Health

care

Human

Res

ource

s ITLe

gal

Man

ufactu

ring

Other

Less than 5 Years

5-15 Years

15+ Years

o Employees within the legal sector appear to have the longest tenure. One quarter (25%) plan to stay longer than 15 years with their current employer. They also have the smallest amount of employees (42%) who plan to stay no more than five years.

o Accounting and finance workers show the exact opposite. Over half (55%) do not plan to

be with their current employer more than five years. They also have the fewest workers (14%) who plan to stay longer than 15 years.

27


Percentage of Employees Who Are Actively Looking vs. Not Considering a Job Change

Acct Eng HltCare HR IT Legal Mfg Other

Actively Looking 15% 15% 20% 12% 13% 12% 15% 14% Would Not Consider Change 30% 22% 25% 19% 22% 28% 19% 25%

o Human resource and legal employees are least likely to be actively looking at other

opportunities.

o One in five healthcare workers are actively looking for other opportunities

o Nearly one-third of accounting workers would not consider changing their current employer.

Percentage of Employees Who Work for Organizations that Conduct Internal Surveys

36 34

43

54

42 43

3127

30

0

10

20

30

40

50

60

AllAcc

tEng

HltCare HR IT

Lega

lMfg

Other

o While healthcare workers are most likely to work for organizations that utilize internal surveys (over half), manufacturing employees are least likely to have these surveys (just over one-quarter).

o Engineering, healthcare, human resource, and IT workers are more likely than the national

average (36%) to work for companies that provide surveys for feedback.

28


COMPANY SIZE

Percentage of Respondents That Work at a Company that Does an Excellent or Good Job at Promoting a Healthy Work-life Balance

83

68

65

64

65

0 20 40 60 80

under 50

50-100

100-250

250-500

500+

100

o Smaller companies are more likely to promote a work-life balance.

o While the larger companies are less likely than their smaller counterparts to promote work-

life balance, the majority of workers (67% average) still say their employers promote it.

29


Employees’ Anticipated Length of Stay with Their Current Employer

0

10

20

30

40

50

60

70

under 50 50-100 100-250 250-500 500+

Under 5 Years5-10 Years10-15 years15+ Years

o Larger companies (250 + employees) are the most likely to retain employees longer than 15 years.

o On average, 50% of the workforce plans to leave their current employer within 5 years.

Those who work at companies with less than 250 employees are even more likely to leave within that time frame. Specifically those at organizations with 50-100 employees – over 60% plan to leave within five years.

30


GENDER

High Importance and Performance for Retention Factors

Very

Important Excellent

Performance Very

Important Excellent

Performance

All 83 22 All 55 20

Men 80 24 Men 58 22

SALARY

Women 87 19

OPPORTUNITY FOR

ADVANCEMENT

Women 51 17

Very

Important Excellent

Performance Very

Important Excellent

Performance

All 80 23 All 52 25

Men 77 24 Men 49 24

BENEFITS

Women 83 21

TRAINING

Women 57 27

Very

Important Excellent

Performance Very

Important Excellent

Performance

All 63 40 All 72 36

Men 59 39 Men 68 35

RELATIONSHIP WITH MANAGER

Women 70 42

BALANCE

Women 77 37

*Percentage of respondents who rate each retention factor as very important and percentage of respondents who rate their company’s performance on each factor as excellent.

o More women than men rated all factors as very important, except for opportunity for

advancement.

o However men rated their company at doing an excellent job at providing salary, benefits, and opportunity for advancement more often than women.

31


AGE Percentage of Employees Who Report Each Retention Factor as Very or Somewhat Important

All 18-29 30-39 40-49 50-65 65+ Salary 96 95 97 95 96 87 Benefits 93 91 94 93 93 78 Relationship with Manager 92 93 93 93 93 88

Opportunity for Advancement 87 90 91 86 81 67

Training 84 83 87 86 84 77 Work-life Balance 93 95 93 94 93 84

o Older workers (65+) are less likely than the other age groups to find any of these factors to

be very or somewhat important.

o Workers between the ages of 18-39 are more likely to rate opportunity for advancement as very or somewhat important than the other age groups.

o Workers between the ages of 30-49 rate training more often as very or somewhat important.

32


Job Search Status

*Percentage of Employees who are actively, passively or not looking for other opportunities.

Actively Looking

Passive

Would Not Consider

0

10

20

30

40

50

60

70

All 18-29 30-39 40-49 50-65 65+

o While most workers of all ages will passively consider other opportunities, those between the ages of 18-29 are most likely to be actively looking.

o Older workers (50+) are less likely to consider other opportunities.

33


ETHNICITY

Percentage of Employees and Their Job Search Status White African American Other

Active

Updated Resume

Would Listen

Would Not Consider

26%

27%

31%

16%12%

17%

44%

27%

21%

17%

39%

23%

o African-Americans are twice as likely to be actively looking for other opportunities as their white counterparts.

34


STATES

Percentage of Employees Who Would Recommend Their Organization to Others

62 60

7066

59 56 58 6066

0

10

20

30

40

50

60

70

80

National CA FL IL MI NY OH PA TX

o Florida appeared to be most satisfied with their employers as seven in ten workers would

recommend their organization as a good place to work.

o New York workers seem to be the most dissatisfied as only 56% would recommend their company.

35


High Importance and Company Performance on Salary

0%

10

%

20

%

30

%

40

%

50

%

60

%

70

%

80

%

90

%

10

0%

National

CA

FL

IL

MI

NY

OH

PA

TX

Salary is Very Important

Employer Does anExcellent Job atproviding a Fair Salary

*Percentage of respondents who rank salary as very important vs. percentage of respondents who work for an organization that does an excellent job at providing a fair salary.

o While New York workers, were most likely to report that salary was very important, they were also the least likely to report that their employers did an excellent job at providing this.

o Pennsylvania employees were least likely to report salary as very important – only 76%.

o Texas workers were most likely to be satisfied with their salaries, over one-third (34%) stated

that their organizations did an excellent job at providing a fair salary.

36


Percentage of Employees that Plan to Leave Their Current Employer Within Five Years

50

5554

52

56

5352

48

52

44

46

48

50

52

54

56

58

National CA FL IL MI

NY OH PA TX

o While half of the national workforce plans to leave their current employer within the next five years, those in California and Michigan, are even more likely to leave in that time span.

o Pennsylvania workers were the least likely of the states tracked to report that they would be

leaving within the next five years.

37

Date post:	01-Jul-2018
Category:	Documents
Upload:	haanh
View:	212 times
Download:	0 times

READER S GUIDE - Recruiting and Full Talent Solutions Papers/Hudson... · As the demand for top...

Documents