Shortage of Talent is the Top Concern for Employers
For the first time ever, shortage of talent has supplanted the rising cost of healthcare as the number one concern among employers. According to the most recent study of the International Society of Certified Employee Benefit Specialists, conducted by Deloitte Consulting, over 75% of the U.S. HR Professionals listed talent management as the top challenge. What does this mean?
Although empirical data exists to support most retention strategies, the traditionally easier way to show management cost savings was through benefit structures - the "total rewards" costs (especially healthcare). Since HR departments and organizations are becoming more strategic and business-driven, the focus is actually shifting from a "cost-savings" approach toward growth, long-term ROI, and bottom line profits. The ability to attract and retain top talent will be the prime determining factor in the next decade.
The survey also indicated a disconnect between employees desires and HR's perceptions. Employee respondents listed security in retirement, potential for growth, recognition, and healthcare post-retirement as chief concerns; yet only 2% of HR managers correctly noted all four employee concerns. This disconnect can be detrimental to financial performance if not addressed. Better alignment to employees' interests as well as cost containment will promote a higher level of employee engagement.
Posted on Fri, September 26, 2008
by Kurt McDowell filed under