Retaining key employees is more important in an economic downturn than in a robust economy, according to a survey released by Personnel Decisions International (PDI), a global leadership consulting firm.
In August, PDI surveyed 530 human resources professionals and other business leaders in 34 countries in North America, Europe, the Middle East, Africa and the Asia-Pacific. The report examine how organizations are approaching retention in the current economy and what tactics are the most successful.
According to the report, more than 90 percent of those surveyed said they were more concerned about employee retention during difficult economic times.
"It may seem counterintuitive that organizations are more concerned with retaining key employees in a down economy. But, when the economy is tight, company leaders realize that the best and brightest talent can give their organization a competitive advantage," said Paul Van Katwyk, managing director with PDI Greater China.
Interestingly, the strategy that leaders viewed as most successful in retaining key talent was not the one most frequently used. The study showed that most organizations offer compensation as a means to ensuring employee retention, despite development opportunities being recognized as the most effective tool.
"Even in a tight economy, there are steps that companies can take that make a big impact without costing money," said Van Katwyk. "For example, senior leaders can make the effort to speak one-on-one with key employees to communicate how the organization values their contributions.
"Leaders can ask key employees to participate in strategy discussions that make the employee feel more involved in the company and more involved in developing company solutions."
In order to successfully retain top talent, PDI offers a number of recommendations, including identifying top performers and high-potential employees, tracking turnover rates of key employees separately from overall turnover figures, having senior executives talk individually with key employees to communicate the employee's value to the company, and investing in proven retention practices, including developmental opportunities for key employees.
"In difficult financial times, the need to retain key talent is much more critical and difficult than ever. Clearly, the most effective strategy is to focus on programs providing accelerated development opportunities," said Van Katwyk.
(China Daily October 16, 2008)
