Compensation Remains a Top Driver to Attract & Retain Talent in the U.S Reveals Gartner's New Study
Gartner, one of the world’s leading Market Research and Consulting firms, recently conducted a study to ascertain the various key parameters that employees look for during their job change phase in the U.S. As per the survey, compensation remains a top driver to attract and retain talent in the U.S. As a result, businesses are offering hefty monies for both retaining existing, as well as attracting new talents that are critical to their operations.
“Compensation has become tricky for many companies who are trying to both attract new talent, but also keep their best workers in-seat. Globally, workers expect significant compensation increases of 15.5 percent to switch companies, and the annual wage increases that companies currently offer will never match that. The result is a new wage gap that is forming where new employees are paid more, sometimes significantly more, than tenured employees,” says Brian Kropp, Group Vice President, Gartner’s HR Practice.
Titled ‘Gartner’s 4Q18 Global Talent Monitor’, the report is derived from Gartner’s Global Labor Market Survey, where the data is sourced from over 22,000 employees across 40 countries. Findings of the report shows that 44 percent of U.S. employees (an increase of four percent compared to last year) want to continue in their current roles, which is 11 percent higher than the global average. Also, 19 percent of the employees indicated a high willingness to go above and beyond at work, with 78 percent of these workers expressing a high or somewhat high intent to stay at their current organizations. “With more employees planning to stay in current roles, and increasing their discretionary effort at work, employers should consider how best to engage and retain their current workforce,” adds Brian.
As part of the report, Gartner also makes a few recommendations for businesses to efficiently handle their talent acquisition & retention activities. A few among them are acknowledging the accomplishments and distribution of rewards, as this boosts employees’ morale and makes retaining employees easy. Also, getting to know first-hand from the management about the importance of their workplace contributions to the overall success of the company, makes the employees feel more connected to the company and its culture. Additionally Gartner also urges businesses to implement a robust Employee Value Proposition (EVP) that focuses on key attributes such as career development opportunities, competitive wages & benefits packages, and work-life balance, which the employees deem are more important.
“Through the establishment of an EVP which incorporates attributes workers find meaningful, companies can increase employee engagement levels, reduce attrition rates and attract much-needed talent. Gartner data illustrates organizations that effectively deliver on their EVP can decrease annual employee turnover by just under 70 percent and increase new hire commitment by nearly 30 percent – which has a direct impact on the company’s bottom line,” concludes Brian.
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