8 Signs Talent Retention Strategies are faltering - Europe
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Transcript of 8 Signs Talent Retention Strategies are faltering - Europe
signs talent retention strategies are falteringkelly Global workforce index™8leif agnéus
europe: Denmark, france, germany, hungary, italy, norway, polanD, portugal, russia, sweDen, switzerlanD, uk
2Kelly Global Workforce Index™
Over the past three years, employees’ intentions to
leave their current jobs in the EMEA (Europe, Middle
East and Africa) region have plateaued. Despite ongoing
economic turmoil and many employers assuming that
their people will seek security over new opportunities,
talent retention efforts appear to have stalled.
Now, it seems employees are taking their careers
into their own hands. They’re reporting high levels
of dissatisfaction, but it’s not the trivial kind. Rather,
they appear to be searching for organizations that will
embrace their potential, provide them with consistent
challenges, and this—far more than higher salaries or
better benefits—is the reward they are seeking in spite of
economic uncertainty.
talent retentions suffers a blow in europe
They want meaning in their work, they want to feel valued
and they want to be challenged. Few organizations
appear to be meeting the mark on these fronts, and
employees are realistic about their ability to influence
for this change within their current roles. Instead, they’re
carefully planning their next career move with an eye to
attaining new skills and broader experience, which they
hope will shore up their future employment prospects.
While there are significant differences between
employees in particular countries throughout EMEA, the
broad pattern is remarkably similar. Here, we offer some
food-for-thought for HR professionals and senior leaders
to help turn it around.
2Kelly Global Workforce Index™
3Kelly Global Workforce Index™
The idea that poor economic conditions encourages
loyalty from employees is not holding up. Instead of a
decrease in the number of people intending to move
organizations and roles over the next 12 months, the
proportion has remained unchanged since 2009. Across
the EMEA region, more than six in every 10 employees
are seeking alternative employers this year.
Workers in Portugal, Denmark, France, Italy and the UK
lead this trend, all with around three-quarters of their
workforces looking to change organizations. Russia and
Germany both significantly buck this trend, with only
around half the workforce seeking new opportunities
this year.
It’s highly likely that employees’ movement plans are
part of a broader career strategy to acquire new skills
and maintain a competitive edge in a less secure
market. Employees are seeking differentiation in their
resumes, and few organizations seem able to offer it to
their internal candidates.
1 / Voluntary attrition has plateaueDMost employees are looking to move organizations, and despite ongoing economic turmoil, loyalty has not increased.
76% 74% 54% 61% 76% 65% 70% 78% 54% 66% 63% 75%
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Job Switching EMEAjob switchinGDo you intend to look for a job with another organization within the next year? (% yes, by region)
4Kelly Global Workforce Index™
With the exception of employees in Poland, Hungary
and Germany, most exits seem to be driven more by a
clear career strategy, as opposed to deep dissatisfaction
and frustration.
While more than half the workforce in both Poland and
Germany say they regularly feel the urge to quit, most
employees in other parts of EMEA do not. Instead, they
are looking to move in a more planned manner, usually
to access new experiences and skills. Rather than a rash
decision, their desires to leave are being driven with
broader, longer-term goals in mind.
That said, frustration levels are at their highest in
the EMEA region (43% say the frequently want to quit),
compared with just 28% in the Americas and 39%
in APAC.
2 / they are making planneD exitsExits from employers appear to be planned rather than rash decisions made in response to trivial dissatisfactions.
“i quit!”Do you frequently think about quitting your current job and leaving your employer? (% yes, by region)
38% 32% 54% 56% 49% 41% 59% 37% 44% 41% 43% 41%
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I Quit! EMEA
5Kelly Global Workforce Index™
Across the EMEA region, fewer than half of employees
(46%) feel that they have a sense of ‘meaning’ in their
work. The UK and Germany report the lowest levels
of job fulfillment with only around one-third of their
workforces saying that they have a sense of meaning
in their job.
When asked what provides the greatest sense of
meaning at work, most workers say they seek the
“ability to excel and develop” in their field. The
ability to excel draws the highest proportion of votes
in Portugal and Sweden (81% and 78% respectively)
and the lowest in Italy and Hungary (both 61%). While
other issues such as connection with coworkers and
the organization’s alignment with employees’ personal
values also rates highly, the desire to excel wins out
as the key issue for employees across the region, and
indeed the world.
3 / many lack a sense of ‘meaning’ at work Happiness at work comes from a sense of meaning and achievement—without it employees are looking elsewhere in spite of economic uncertainty.
job fulfillmentDoes your current employment provide you with a sense of “meaning”? (% yes, by region)
39% 49% 37% 48% 43% 47% 40% 42% 56% 41% 51% 35%
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Job Fulfillment EMEA
6Kelly Global Workforce Index™
While four in ten workers in Portugal still believe in the
concept of one employer for life (42%), far fewer people
in almost every other part of EMEA agree.
In Hungary, Russia, Italy and Denmark, the idea of a
career for life appears to have the least relevance, with
only around one in ten employees saying they feel it is
still relevant. A career for life is slightly more acceptable
in Poland (23%), Germany (26%), Norway (28%) and
the UK (32%).
Almost two-thirds of workers in the UK (65%) believe
that gaining experience with multiple employers is an
asset to their careers. While this is high, it’s the lowest of
the larger EMEA countries. This figure is 73% in Poland,
74% in Italy, 75% in Switzerland, 76% in France and
Portugal, and slightly higher in Germany and Norway
(both 77%) and Russia (78%).
4 / they belieVe VarieD employment is a competitiVe eDgeWhile some still believe its possible to have one employer for life, most see multiple employers is a career asset.
one employer for lifeto what degree do you agree or disagree that a “career-for-life” with one employer is relevant? (total ‘agree’)
13% 16% 26% 11% 13% 28% 23% 42% 12% 19% 20% 31%
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One Employer for Life EMEA
7Kelly Global Workforce Index™
Less than three in ten employees across the EMEA
region say they would share their quitting plans with
their employers in the hope that a counter offer
might be made.
This is lowest in Italy (16%), Demark (17%) and Russia
and Hungary (both 18%), and highest in Poland and
Sweden (30% and 35% respectively). This suggests
that most employees are set on their plans to move
organizations regardless of their managers’ response
to their resignation, and are doing so because they
don’t believe their current organization has anything
further to offer them.
5 / they’re not looking for a counter offerFew employees are keen to have an open dialogue with their employers about their desire to move on, which signals their minds are already made up.
likely to share quittinG planshow likely are you to share your potential plans to move to another organization with your employer, with the thought that this may result in changes that may motivate you to stay? (total ‘likely’, by region)
17% 28% 22% 18% 16% 28% 30% 22% 18% 35% 28% 26%
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Likely to share quitting plans EMEA
8Kelly Global Workforce Index™
Just 39% of employees in the EMEA region say they
feel valued by their current employer—significantly
behind employees in the Americas (45%) and
APAC (51%).
Perhaps more concerning is the low level of employees
who report that they are being fully utilized in their
current role. Only around three in ten employees in
the region say they are using their skills sufficiently, and
if job movement is tied to employees’ ability to use
their skills and excel, the outlook for talent retention
across the region is poor. Employees in Poland rate
their employers well below the rest of the region on
this count, with little more than one in ten employees
feeling their employers are realizing their full potential.
6 / they feel the least ValueD & utilizeD of all employees globally
26% 28% 22% 20% 29% 30% 13% 26% 23% 27% 33% 24%
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Realising potential EMEArealisinG potentialDo you feel that our current employer is realising the full benefits of your potential? (% yes, by region)
9Kelly Global Workforce Index™
When asked about what drives the decision to accept
one role over another, personal fulfillment and personal
growth/advancement accounts for around seven in
every ten responses across the EMEA region. The
starkest contrast on these counts is found among
employees in Denmark, the UK, Switzerland and
Germany—in these countries an exceptionally small
proportion of people feel that compensation and
benefits drives their choice to accept one role over
another. Yet, in Hungary compensation is a major driver
of job choice, with almost four in ten employees feeling
it is a key consideration.
Similarly, when asked which factor makes them feel
more committed and engaged with their current job,
‘more challenging and interesting work’, and ‘more
meaningful responsibility’ accounted for the majority of
responses—well ahead of higher salaries and benefits.
7 / they want personal fulfillment anD to be challengeDWhat really keeps employees engaged— enjoyable and challenging work—is no easy task to respond to.
factors that drive job choicewhich of the following factors would drive your decision to accept one job/position over another? (by region)
Factors that drive job choice
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Personal fulfillment/growth/advancement Compensation/benefits
10Kelly Global Workforce Index™
More employees across the EMEA prefer to be
rewarded via a financial bonus than those in other
regions. However, in most cases this type of reward is
the preferred option for fewer than half of the working
population. Only Germany and Russia stand out as the
countries where most workers prefer and expect this
kind of reward.
A significant proportion of people say they do not
require any form of reward at all for a job well done.
This is highest in Denmark where almost one-quarter
say no reward is required, followed by Portugal and the
United Kingdom with almost one in five (19%) agreeing.
This compares with just 5% in Germany and Hungary,
4% Italy and 2% in Russia.
The significant differences across all countries and
regions points to the fact that rewards and incentives
are very personal. Having a one-size-fits-all approach
is likely to miss the mark, as none of the suggested
performance rewards can claim to meet the desires of
the majority of any worker population.
8 / their Desire for rewarD is personal Don’t just assume all employees are looking for a pay rise —it’s more complicated than that.
rewardinG performancewhat is your preferred way of being rewarded for good performance at work (by region)
Rewarding Performance
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Financial Bonus None required
11Kelly Global Workforce Index™
A strong, global pattern has emerged in talent retention,
and employees across the EMEA region are no exception.
Declining satisfaction and meaning at work is reaching a
natural crescendo—and it’s hardly assisted by ongoing
market turmoil and the quickening pace of change. Most
people are planning to switch organizations within the
next year, and they have clear, strategic reasons why
they’re doing so.
Few feel that their current organization is accessing their
potential, which inevitably throws up a negative cycle
in the talent retention stakes: as one employee leaves
to pursue their potential, another arrives in their place
with the same goal. It seems both will get what they
seek for the short term and then the cycle will repeat,
leaving HR and hiring managers to pick up the pieces and
consistently plug skills gaps in a tightening market.
Instead of being locked into an endless, vicious cycle, HR
professionals, hiring managers and senior leaders in the
region should look to:
conclusion
• give employees a voice in how they’re rewarded:
don’t assume a bonus will always be top of the list.
Consider other projects, skills and responsibilities that
staff can be exposed to should they reach their high-
performance target. After all, large numbers of people
say that challenging work helps to keep them engaged
in their job.
• commit resources to documenting and keeping
track of employees’ skills: few employees feel their
full potential is being utilized in their role. This is a
poor outcome for both employee and employer. Some
of this is simply that managers and HR departments
do not always have a clear view of the skills that
each employee has, and as a result they fail to be
proactive about helping employees use these as new
opportunities arise.
• find ways to move employees internally: for most
employees, the idea of an employer for life is outdated
and instead they actively seek new employers to
access and develop new skills. This can be provided
internally, but is likely to fail if the entire process relies
on managers. Allowing employees to choose projects
and make a case for being part of them, as well
encouraging other departments/managers and teams
to seek skills internally, will increase development and
growth opportunities for internal talent.
• focus on ways to demonstrate the outcomes and
contribution of each employee’s role: meaning
at work is critical to engagement and satisfaction,
so finding ways to demonstrate the ways in which
each role contributes to overall outcomes is key to
retention and productivity. Team recognition is fine, but
individuals want to see how they impact results too, and
this means finding ways to measure and report on it.
• make the most of contingent workers: around
one-third of most workforces are now made up of
contingent labor, and these workers need to be kept
engaged, motivated and rewarded too. This highly
skilled group offers a wealth of potential, but if it’s
not being used, they’re more likely than others to
move quickly.
11Kelly Global Workforce Index™
Kelly Global Workforce Index™
about the author
LeIf AGnéus is senior vice president and general manager, europe, Middle east, and Africa for Kelly services
and oversees our operations across 16 countries and territories in the eMeA region. Leif holds
a master’s degree from the ecole Hotelière de Lausanne with majors in finance and service delivery. He is a
board member of eurociett and a member of the swiss American Chamber of Commerce.
methoDology
The Kelly Global Workforce Index was open to respondents around the globe and took the form of a questionnaire on the
Kelly Services website. Data was collated and analyzed by RDA Group. A number of questions have remained consistent over
the course of the survey and allow time-series analysis.
about kelly
Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions. Kelly® offers a comprehensive array of
outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire and direct-hire basis. Serving
clients 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.
download your free copy today.
This ebook is extracted out of the report Acquisition
and Retention in the War for Talent.
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