Talent Management Practices in Need of Attention

A new report finds that while employee engagement and retention are strategic priorities for a majority of U.S. organizations, budgets remain static, presenting a challenge for many employers.

These and other findings are detailed in the report, “Workplace America: Employee Engagement and Retention Trends” from TalentKeepers, a provider of engagement and retention solutions. It is the 14^th annual report from the company, which this year surveyed more than 600 organizations.

Key Findings

TalentKeepers’ research shows that employee engagement continues to be a key strategy for many organizations. For five years running, more than 77 percent of U.S. employers rank employee engagement as a strategic priority. Yet, this does not universally translate into dollars, as only 54 percent of organizations budget for engagement efforts. The report points out that lack of budget support could be tied to the failure of many organizations to determine the cost of replacing a well-performing employee, which only 25 percent have done.
Also notable this year: A record-high 73 percent of organizations report using engagement surveys. But not all are making the best use of data. Just 45 percent of organizations are linking engagement metrics to performance metrics, a fundamental method of gaining operational and senior leadership support for engagement initiatives.
Early-tenure-turnover – employees who depart within the first 12 months – has increased a dramatic 35 percent in the last five years, from 52 percent in 2013 to 70 percent in 2018. Seventy-three percent of organizations hold talent acquisition and onboarding responsible.
“This puts tremendous pressure on the organizations’ recruiting, selection, onboarding, and training departments,” said Christopher Mulligan, TalentKeepers CEO and author of the report.
Operational leaders remain key factors in driving engagement, according to Mulligan. “Leaders are the lens through which employees see the organization. Organizations should leverage this by measuring which leaders are effectively engaging employees, training leaders in engagement skills, and holding them accountable as with any other business metric,” he said.
In Workplace America, 43 percent of organizations report measuring leaders’ effectiveness in engaging their employees. However, only 36 percent of organizations develop leaders to engage their teams, while a mere 21 percent hold leaders accountable for engagement.
From 2011 to 2018, “Job and Career” issues, specifically a lack of career growth opportunities, have fueled unmanaged attrition. A strong economy with record-low unemployment has enabled many employees to adopt a “grow or go” approach.
Also notable: “Leadership” issues have been steadily growing for the past six years as a stimulus for turnover. These trends should motivate organizations to leverage leaders by having them discuss career growth aspirations with their employees, the report notes.