Top 9 Talent Management Trends
Posted on August 26, 2013
Talent management was a key concern for many employers in 2012, and will likely continue to be a struggle in 2013. If the economy continues to improve and hiring becomes stronger, businesses will be facing some of the talent management challenges listed below, but also exploring new tactics for development and engagement.
Here are the top nine talent management trends to watch for in 2013:
1. Businesses struggle to retain top talent
The American Management Association found that less than 20% of organizations said they were very effective at retaining top talent, with over 80% saying they were either somewhat effective or ineffective. According to Susan Pyles, Senior Talent Management Consultant at Employers Resource Council (ERC), “In 2013, there will be more movement of top talent between companies,” as well as “a continued rise in the number of organizations conducting engagement surveys to measure engagement at their organizations and identify actions needed to improve.” Some of the tactics that have been found to be effective at retaining top performers are flexible work arrangements, fair-minded, open-door company cultures, advancement opportunities and better total rewards packages.
2. Turnover rates are rising
The voluntary turnover rate rose from 7.0% in 2010 to 8.2% in 2011, according to a PricewaterhouseCoopers report. Mercer’s 2012 Attraction and Retention Survey also showed an increase in organizations that are anticipating increases in turnover.
3. Employees want more development opportunities
An Accountemps survey found that approximately 80% of the employees they asked said that knowing their potential career path is either very important or somewhat important to their overall job satisfaction. However, surveys show that employees think their employers are not interested in their professional development.
4. HR struggles with workforce planning
Very few organizations have formal workplace or succession plans in place for executive, management and non-management employees. A recent study showed that only 16% of HR professionals rate their company as effective at workforce planning. According to Monica Brown, Director of HR at the Cleveland Foundation, “HR leaders must work with senior staff to plan for succession and, along with that, employee development and talent acquisition, to ensure continuity in the strength of talent in the organization.”
5. Workplace attributes found to increase employee engagement
Many surveys have been conducted to uncover the main factors in employee engagement and job satisfaction, leading to similar findings. The top engagement factor is the type of work the employee is doing, followed by opportunities for growth and advancement. When compared to other factors, work environment, bonus pay and benefits were less important to employees.
6. Training and development investment stays strong
Employers are increasing headcount in the training, learning and development areas of their organizations. According to the American Society for Training and Development, companies spend an average of 31 hours and $1,272 training one employee. And if last year’s trends continue, these numbers can be expected to increase: research from Bersin & Associates showed a 9% increase in training spending and a 14% increase in leadership development spending in 2012.
7. Companies are becoming more interested in workforce readiness
A Corporate Voices for Working Families study found that employers who leverage workforce readiness training for entry-level or lower-skilled workers improved retention and reduced turnover and rehiring costs. Employers can expect federal and state governments to be focused on supporting skill development this year, with the federal government planning to provide $20 million in grants to help businesses prepare their current and prospective workers with necessary skills.
8. Use of social media in the workplace is on the rise
ERC’s 2012 Social Media in the Workplace Survey found that 47% of companies have a social media policy in place and 78% track employee usage during work hours. The most common reasons for use of social media include marketing, recruiting and workplace collaboration. These trends are expected to continue into the future.
9. Employers are planning to invest in more technology
84% of employers plan to invest in HR technology as much or more than last year, according to Towers Watson. A similar study by BLR found that more than half its survey respondents are using an HRIS system, most commonly for reporting data, PTO/leave management and benefits administration. Technology is key to streamlining administrative process and freeing up HR’s time to focus on strategic initiatives.
From talent retention to employee training to HR policies, Paycor’s technology can help you manage the chaos. With solutions ranging from affordable, online resources like HR Support Center to a full-blown HRIS, we have the tools you need to keep up with changing trends. Learn more about what we can do for your business.
Source: Employers Resource Council