The 2014 Global Talent Management and Rewards Study provides an in-depth look at the employee reward programmes and talent management best practices of organisations around the globe. It captures the perspectives of over 1,600 organisations across 31 markets on attraction, retention and engagement issues that are essential to the development of an effective employment deal and total rewards strategy.
What is the value of getting the employment deal right?
Organisations with a highly evolved employment deal (i.e., one that is formally articulated, well executed, customised for different employee segments and differentiated from those of competitors) are more effective than organisations offering a deal that is tactical (i.e., not formally articulated and lacking an integrated strategy for rewards and talent management).
Additional key findings from the study reveal:
- Employers don't always understand the employee reward programs that workers value most.
- Many employers are failing to differentiate broad-based employee annual incentive programmes.
- For employees, job security is the second-most frequently cited reason for joining an organisation, while it ranks seventh for employers.
- Trust and confidence in senior leadership, among employees' top three reasons for staying with an organisation, does not even rank in the top seven for employers.
- Most organisations do not know if their career management programmes are working; a very low 27% say their organisations monitor the effectiveness of these programmes.
- Employers are finding it difficult to get and keep key talent, including top performers and high-potential employees.
- Nearly two in three respondents are experiencing problems attracting top performers (65%) and high-potential employees (64%), an increase from two years ago.
- More than half of employers report difficulty retaining high-potential employees (56%) and top performers (54%).
To achieve business objectives, employers need to attract and retain critical talent and ensure employees are highly engaged, which, in turn, will support increased productivity. To help foster sustainable engagement, organisations must offer and deliver an employment deal that is formally articulated, is tailored to different workforce segments and sets an organisation apart from its competitors.