The War For Talent

Recruiting Talent Statistics

• 30% of US workforce will be of retirement age by year 2030 (Conference Board)
• 1/5 of US large established companies will lose 40%+ of top level talent as their executives reach retirement age. (Developmental Dimensions International DDI, 'Winning the War for Talent' white paper by Authoria).
• Shortfall of 10 million workers by 2010 in the age range of 25-44 (US Bureau of Labor Statistics, "winning the war for talent" white paper by Authoria)
• 77 million baby boomers (1946-1965)
• By 2030 mature workers (55+) will make up 25% of the workforce (13% in 2000) (AARP)
• 43% of companies cite skills shortage as top business concern (behind competitive pressure & growth) (Ken Blanchard Companies Survey).
• 46% of companies had few or no applicants in May 2006 (National Federation of Independent Business Study).
• Bad Hires & Promotions lead to lower morale (68%), lower productivity (66%), lost customers (54%), higher training costs (51%), higher recruiting costs (44%) (Right Management Survey 2006)
• Cost of turnover is approximate 2 times employee salary (recruiting, training, severance costs).
• 76% of baby boomers have no intention of a traditional retirement. 71% plan to work. (Survey for Merrill Lynch by Harris Interactive).
• 25% of companies are ready for "mass exodus" of employees. 31% haven't thought much about it (Merrill Lynch survey).

Recruiting Best Practices

• Recruiting must be an "all the time" thing.
• Keep the pipeline full whether there are openings or not.
• Dedicated recruiters (inside or outside the organization).
• Managers trained to recruit, interview, check references, hire.
• Succession Planning Process.
• Identify best sources (internal referrals, networking groups, alumni associations).

Retaining Talent Statistics

• Primary reasons employees stay at companies and are engaged include: 1) manager understands what motivates them 2) challenging work 3) career advancement 4) visibility, honesty & consistency of their manager 5) interest in employee (Towers Perrin Global Workforce Study, Executive Report 2005)
• Compensation & benefits are often less of a reason why people leave. Typically due to management, work environment, direct supervisor (RHI employee data).
• Employees that feel their manager does not respect them are 3 times more likely to leave their employer over the next 2 years than those who feel respected (Sirota Survey Intelligence)
• 72% of people are satisfied with comp. 44% of those people would change their comp mix if they could. 33% of those individuals would increase their flextime. (Hudson's Compensations & Benefits Report 2006)
• Among surveyed CIO's, in order to retain employees: 63% providing additional training opportunities, 47% are providing flexible schedules and 41% are increasing base compensations (Robert Half Technology survey of 1400 CIO's).

Retention Best Practices

• All employee surveys & post departure surveys.
• Comp & benefits are competitive
• Management evaluation (360 degree surveys)
• Leadership Development Programs

Developing Talent Statistics

• Training budgets increased 5% over last year.
• In the US, training is a 46.6 billion dollar industry (includes internal staff salaries). $15 billion is paid to external sources (vendors, etc).
• 1/3 of organizations cite leadership training as 1st or 2nd training priority.
• 32% of companies have enterprise wide performance management systems (Bersin & Associates Study 2006)
• Project Management Software Industry growing at 45%--fastest growing HR application. $136M industry. (Bersin & Associates Study 2006)
• 77% of companies do not have enough successors to their current senior-level managers working in their organizations (Right Management Consultants Survey)
• 43% of companies cite skills shortage as top concern including developing potential leaders, selecting/retaining talent & creating an engaged workforce.
• 77% of companies will increase talent management initiatives over the next 3 years---including performance management systems, succession planning and recruiting (Human Resource Information Management, Talent Management Survey 2006).
• 39% of companies feel leadership development programs are on par with competitors; 35% need updating, 16% are ahead, 10% have no programs.
• The average Top 100 Training Company has a training budget of $50 million, consisting of 28 full-time trainers and does 52 hours of training per employee per year (Training Magazine, March 2006).

Development Best Practices

• Multi-faceted, comprehensive development programs (classroom, online, various media, off-site, new manager, coaching, mentoring, 360/self awareness, job rotations, projects, simulations, stretch assignments).
• Performance/Talent Management Process in place (linked to development, systematic & objective).
• Individual Development Plans (IDPs)' all inclusive
• High Potential Employee Programs
• CLO, Executive Director of Talent Management---involved & at the table with senior leadership
• Executive Sponsorship
• Customization