Money talks. So does career development. Employers plan to focus on these two areas in 2010 and beyond as they look to retain and engage the right talent, according to new research.
Forty-one percent of employers surveyed for Mercer's 2010 Attraction and Retention Survey cited base salary increases as the reward they believe has the strongest impact on employee retention and engagement.
Next in line were short- and long-term variable pay (cited by 36%) and training and career development (cited by 35%).
One-quarter of organizations report that programs such as work-life initiatives, employee communication campaigns and time-off plans will have less impact on employee retention and engagement going forward.
"Non-cash programs like career pathing, increased communication to employees and work-life initiatives are important in fostering employee retention and engagement regardless of the economic environment," says Loree Griffith, a principal with Mercer's rewards consulting business. "However, as recovery occurs, employers want to revisit pay as a means to staying competitive and retaining top-performing employees."
More than one-quarter (27%) of employers surveyed are expanding their overall workforce, while 3% have instituted broad-based workforce reductions. Almost half (45%) are hiring to replacement levels only, while another 25% are hiring just for critical areas.
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