CEOs Are Concerned About Retaining Top Talent
I’ve written often about the War for Talent and how, in the long term, this will drive the growth of the flexible workforce. This discussion has more recently taken a back seat to the recession, but will once again come to the forefront in an economic recovery. As a precursor to this trend, witness the results of several recent executive surveys.
Besides the monumental task of keeping their companies afloat through the recession, a survey of 222 senior executives conducted by CT Partners reveals that 35 percent of them believe the retention of talent is the most challenging issue facing CEOs.
Respondents to a recent survey cited the following challenges:
- Retention of talent (35%)
- Relationship with investors (20%)
- Preserving or improving company reputation (18%)
- Globalization (16%)
- Fair and equitable employee compensation (6%)
- Relationship with board (3%)
- Fair and equitable executive compensation (2%)
Another survey, this one by ExecuNet, of more than 3,600 senior-level executives found that 60 percent believe their companies are concerned about retention. Staffing firm Robert Half International finds that 39 percent of senior executives cite retention as their most pressing workforce challenge. And a recent poll by the New York chapter of the Human Resource Planning Society reveals more HR leaders are concerned about engagement and productivity.
So what does it all mean?
A well known aspect of economic downturns is that top talent tends to stay put. The makes sense for it is safer to stay in a current role (even if it is less than perfect) than it is to jump ship in uncertain times. In a recovery most executive search experts expect voluntary separations to increase. The survey data above would seem to support this.
We may be seeing the initial cracks in the talent foundation of corporate America. When we enter economic recovery then management retention and access to talent will become a key ingredient for business performance and success.
One outcome of the recession is that the already damaged employer-employee social contract has been further marginalized. Most talented executives, and those who employ them, now realize that loyalty is fleeting. To pursue greater work-life-balance and the ability to do the work they want to do, more knowledge workers will choose to become free agents.
Another factor is the talent supply and demand equation. As the economy recovers and Baby Boomers renew their interest in retirement, the resulting talent shortage among professional and executive ranks will create many new opportunities.
To gain access to the talent they need employers will have to become more talent-centric. Many strategic organizations are revisiting their traditional workforce models with an eye towards growing the contingent component. Why are they doing this? There are a number of reasons, including:
- Increased workforce flexibility
- Greater cost savings over traditional full-time employment
- Access to better talent and expertise
- The growth of project based work
At M Squared Consulting we believe all of these factors will contribute to the growth of the flexible workforce. Our cost-effective “talent-on-demand” business model has proven to be an enabler for those companies wanting to harness the expertise and power of seasoned project professionals to deliver results.
