WTOP: 5 ways nonprofits can…
The “Retention of Key Talent and the Role of Rewards” study by WorldatWork, Hay Group and Dow Scott, Ph.D., professor of human resources at Loyola University Chicago, found that a majority of respondents (83 percent) view turnover of key talent as very costly to their organization and two out of three agree retention of key talent is a major concern of senior management.
Survey participants reported that the No. 1 reason key talent quits is to earn better pay elsewhere. Other reasons include a lack of promotional opportunities, the perception that pay is unfair and dissatisfaction with job and work responsibilities.
As the economy improves, top talent will more on, but organizations can take a few key steps to try and retain them. Many consider the most effective methods for retaining key talent to be:
- Identify key employees and discuss with them their future opportunities with the organization.
- Pay key employees above the labor market.
- Allow flexible hours or telecommuting.
“Rewards professionals are under increased pressure to make counteroffers, increase new-hire offers, and offer special deals to retain key employees,” said Kerry Chou, a certified compensation professional and practice leader at WorldatWork. “The most successful organizations moving forward will be those that develop a clear definition of what is considered key talent, identify them and make a concerted effort to ensure that those employees are engaged with their organization and satisfied with the full range of organization rewards.”