8 Signs Talent Retention Strategies are Faltering - Americas Ebook

signs talent retention strategies are falteringkelly Global workforce index™8michael s. webster

the americas: canada, United states, PUerto rico & mexico

2Kelly Global Workforce Index™

Over the past three years, employees’ intentions to leave

their current jobs have risen more steeply in the Americas

than anywhere else in the world.

Just three years ago, when the first significant effects of

the great recession were being felt, employee retention

in the region was the highest in the world. 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 retention sUffers a setback in the americas

They want meaning in their work. Today’s employees

want to feel valued and they want to be challenged. Few

organizations appear to be meeting the mark on these

fronts, and employees are not overly optimistic about

their ability to influence this change within their current

organization. Instead, they’re carefully planning their

next career move with an eye on attaining new skills and

broader experience, which they hope will shore up their

future employment prospects.

To some degree, these patterns are similar across

the globe. Of 170,000 employees surveyed across 30

countries, two-thirds are planning to switch organizations

within the next year. Yet, employees in the Americas have

bucked this trend in the past. Now, they’re falling in line


and looking to careers with multiple organizations, where

the skills and quality of the work they engage in is the key

driver of satisfaction.

In many ways, the results we see emerging over the

next year are simply an intensification of a longer term

trend that’s been building for some time. 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. Now, it’s

up to HR professionals, hiring managers and senior

leaders across the region’s organizations to respond,

and respond decisively.


Employees in the Americas have seen the greatest

upswing in voluntary, planned attrition intentions, with

an increase of some 20 percentage points over the past

three years. Other regions report unchanged, or only

slightly elevated, results on this front.

This year, two-thirds of workers in the Americas

(67%) say they intend to look for a job with another

organization, compared with just 45% in 2009. In

Mexico, this figure is among the highest in the world,

with almost three-quarters of workers (74%) planning

a career move this year. Canada is also higher than

the global average at 69%, and the U.S. is just slightly

lower at 62 percent. Puerto Rico is the lowest within the

Americas, and significantly below the global average.

It appears that employees plan to move organizations

as part of a broader career strategy, perhaps in

response to decreasing career prospects in their current

role and the need to acquire new skills in a rapidly

evolving market.

1 / VolUntary attrition increases sharPlyMany more employees are looking to move organizations than they were three years ago—a result that puts the Americas in line with a strong global trend.

69% 74% 58% 62%

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Job Switching AMERICASjob switchinGdo you intend to look for a job with another organization within the next year? (% yes, by region)


Fewer employees in the Americas feel the “I quit” urge

than those in other parts of the world, yet more have

already planned to leave for strategic reasons. It’s not

sudden dissatisfaction that’s driving people’s intent to

move on, but something more complex.

Above all, employees are seeking greater opportunities

to develop and excel in their field. They want to use

more of their existing skills and experience, and they

want a genuine challenge. However, few employers

appear to be offering it.

More than one-third of respondents globally (37%)

say they frequently think about quitting their job and

leaving their employer. This is considerably lower in the

Americas where fewer than three in ten people (28%)

frequently feel like quitting their job. Across each of the

regions within the Americas this result is similar, with

Puerto Rico again significantly below the regional and

global average.

2 / exits are now well-Planned, strategic decisionsWhile voluntary attrition plans are on the rise, unplanned exits driven by personal frustration are low.

“i quit!”do you frequently think about quitting your current job and leaving your employer? (% yes, by region)

29% 27% 22% 28%

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I Quit! AMERICAS


In the Americas, just half of employees (50%) feel that

they have a sense of ‘meaning’ in their work. While

both Canada and the U.S. report lower levels of

‘meaning’ in their work than the global average, more

than three-quarters of people in Mexico (77%) feel they

have genuine job fulfillment.

The issue of ‘meaning’ is closely linked to how happy

employees are in their jobs. Employees in both Canada

and U.S. report low levels of happiness—just 47% and

48% respectively, while 58% in Puerto Rico and 71%

of those in Mexico say they are happy with their job.

So it seems that while some people can have meaning

without happiness and vice versa, for most the two

issues are linked.

3 / lack of ‘meaning’ at work is eroding satisfactionHappiness 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)

42% 77% 58% 42%

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Job Fulfillment AMERICAS


While many in Mexico still believe in the concept of one

employer for life (66%), which is well ahead of those

who still hold this view in Canada and the U.S. (38%

and 45% respectively), it seems it is becoming less and

less likely in reality. Most employees now believe that

staying with a single employer is a limitation on their

career prospects.

In the U.S., some 60% of workers feel that gaining

experience with multiple employers is an asset to their

careers, as do 64% of workers in Canada, and 74% of

those in Mexico.

4 / they belieVe haVing mUltiPle emPloyers is an adVantageWhile 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’)

38% 66% 54% 45%

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One Employer for Life AMERICAS


People in both the U.S. and Canada align with the

global trend of not intending to share their quitting

plans with their employers—just 29% in both countries

say they would do so. However, employees in Mexico

and Puerto Rico are significant outliers on this count.

Almost half (44% and 46% respectively) say they would

share their intentions with their employer in the hope

that it will result in changes or counter-offers that will

enable them to stay put.

While there are large differences across the region, a

large number of employees seem set on their plans

to move organizations regardless of their managers’

response to their resignation. Given that most counter

offers are usually just a rise in pay, employees are again

indicating that financial incentives are not the only kind

of change they’re looking for.

5 / coUnter offers are Unlikely to change their mindsFew 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)

29% 44% 46% 29%

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Likely to share quitting plans AMERICAS


Just 45% of employees in the Americas say they feel

valued by their current employer.

The sense of being valued is lowest in the U.S. (42%)

and considerably higher in Mexico and Puerto Rico

(both 53%) with Canada sitting in the middle at

46 percent.

Many employees across the region also report that

their full potential is not being realized by their current

employer. Just 31% of employees in Puerto Rico, 29%

in Canada and 28% in the U.S. feel they are maximizing

their abilities in their current role. In Mexico this figure

is significantly higher at 39%, but still well short of

representing a full engaged and utilized workforce.

6 / few emPloyees feel ValUed or fUlly Utilized

29% 39% 31% 28%

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Realising potential AMERICASrealisinG potentialdo you feel that our current employer is realising the full benefits of your potential? (% yes, by region)


When asked about what drives the decision to accept

one role over another, personal fulfillment and personal

growth/advancement accounts for around eight in every

10 responses. In Puerto Rico, these two factors account

for slightly less (70% of responses), while in the U.S they

account for 74% and 80% in Canada. In Mexico, 85% of

people say these two factors are the main reasons for

accepting one job over another.

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.

In the U.S this accounted for four in ten responses

(40%), in the Canada the proportion was 46%, in

Mexico it was 43%, and lowest in Puerto Rico (37%).

7 / they want Personal fUlfillment and to be challengedWhat really keeps employees engaged— enjoyable and challenging work—is often difficult for managers 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


Compared to the global average, fewer people in the

Americas expect any form of reward for a job well done.

This is highest in the U.S., with more than one-quarter

of people (26%) saying they don’t require a specific

performance reward, and significantly lower in Mexico

at 13 percent.

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 assume all employees are looking for a raise—it’s usually more complicated than that.

rewardinG performancewhat is your preferred way of being rewarded for good performance at work (by region)

Rewarding Performance Americas

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Financial Bonus None required


A strong, global pattern has emerged in talent retention.

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: 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 skill gaps.

Instead of being locked into an endless, vicious cycle, HR

professionals, hiring managers and senior leaders in the

region should look to:

• Giveemployeesavoiceinhowthey’rerewarded:

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-

conclUsion

performance target. After all, large numbers of people

say that challenging work helps to keep them engaged

in their job.

• Commitresourcestodocumentingandkeeping

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.

• Findwaystomoveemployeesinternally: 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.

• Focusonwaystodemonstratetheoutcomesand

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 (particularly highly talented ones) want

to see how they impact results too, and this means

finding ways to measure and report on it.

• Makethemostofcontingentworkers: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.


Kelly Global Workforce Index™

aboUt the aUthor

MIchael S. WebSter is executive vice president and general manager, americas, for Kelly Services.

Prior to joining Kelly, Mr. Webster worked for nearly 20 years at Ge Plastics, last serving as general manager

of the company’s North central region. Mr. Webster holds a bachelor’s degree in business administration

from West Virginia University.

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.

exit

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This ebook is extracted out of the report Acquisition

and Retention in the War for Talent.

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8 Signs Talent Retention Strategies are Faltering - Americas Ebook