For the second straight year, more employers are having trouble identifying and retaining critical-skill workers, according to a new survey from Towers Watson and WorldatWork.
The survey finds that 59 percent of respondents say they are having difficulty in bringing in critical-skill employees in 2011, which is an increase from 52 percent in 2009 and 28 percent in 2009. Another 42 percent of respondents say they have trouble also reported recruiting top-performing employees, and 36 percent of respondents say retaining critical-skill employees is an issue. That is up from 31 percent in 2010 and 16 percent in 2009. In fact, only one in 10 companies is facing problems with attracting or retaining employees.
"Although economic conditions have improved and hiring rates have increased modestly since 2009, companies are experiencing difficulties finding and recruiting employees with critical skills," says Laura Sejen, global head of rewards consulting at Towers Watson. "Companies are taking longer to fill these positions, and more of them are open. There is clearly a greater-than-normal mismatch between the skills employers seek and those that are available in the marketplace. In short, despite the overall weakness in the job market, companies need a more appealing offering to attract critical-skill employees."
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Sixty-five percent of respondents say employees work more than they previously did over the last three years while 53 percent believe this will continue for the next three years. Approximately one in three respondents, at 31 percent, says employees have been dipping into time off less frequently over the past three years.
According to the survey, 56 percent of employers are worried about how the changes made during the recession will affect their employees' ability to balance work and their personal lives. Thirty-nine percent of respondents are also concerned about employee productivity as well as their employees' willingness to take risks, at 37 percent. Because of this, 66 percent of respondents have made substantial modifications in reward and talent management strategies, organizational structure, job evaluation process and competencies.
"In the short run, having employees work extra hours can increase productivity, but, in the long run, extended hours can negatively affect employee well-being and retention," says Laurie Bienstock, North America leader of rewards consulting at Towers Watson. "Employees at many organizations are already suffering from change fatigue. As a result, when the labor market does recover, companies can expect a sharp increase in voluntary turnover, especially if they do not address employee concerns and deliver reward and talent management programs more effectively."
"Employees generally don't mind doing more with less, especially when economic conditions are tough," says Ryan Johnson, CCP, vice president of research for WorldatWork. "But when this drags into multiple years, and they start to hear anecdotes of recovery, they become less understanding. At that point, the entire employee value proposition is crucial to retention."
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