Small Business
Business INSIGHTS e-News for Manufacturers
Keep Your Best Assets

A smart strategy will help retain talented employees.

In the future, access to talent--not capital--will be the limiting factor to competitiveness for companies, according to the 2010 Workforce Strategy Survey conducted by ManpowerGroup. And the relationship between employer and employee will change as the workforce becomes more diverse in age, culture and gender. What motivates employees will vary widely, and companies must meet employee expectations if they are to retain them.

Retention is key to success. Nearly half (46%) of employers in the survey said the talent gap is one of the top three risks they face. However, nearly 25% either didn't know if their workforce strategies and business strategies were aligned or admitted that they weren't.

Those who plan to change talent strategies in the next year will:

  • Motivate staff with more non-financial rewards
  • Reward young workers differently
  • Do more to retain older workers

Changing with the Times
With the pervasiveness of social media, employees are beginning to expect a conversation rather than a one-way message. And as transparency increases, an employee's respect and loyalty will increasingly be tied to corporate social responsibility.

Companies are not only responding to the expectations of younger employees, but also looking at older employees in a new way. Thinking of early retirements as a way to save money may be a mistake. Rather than waiting for baby boomers to depart in droves, a proactive company will be finding strategies to slow their exit. The key is to offer what they want, including respecting them as part of the team. Work arrangements will have to fit their needs, which frequently means working part-time.

Indeed, says the Manpower report: "Longer term, employers will need to improve talent utilization throughout every employee's tenure, through a continuous improvement-style approach that involves periodic skill and career interest assessments, training and alignment of the individual's interests and abilities to the needs of the organization so that they remain relevant and engaged."

 



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