Retaining top talent is the key issue for HR Directors

May 12 2002 by Brian Amble Print This Article

A new survey reveals that hiring and holding onto talent is of greater

concern to HR than managing absence. Recruiting the right people is of

greater concern to HR professionals than both absence and organisational

restructuring.

The IRS Employment Review survey of 145 HR directors and 168 managers,

revealed that while seven in ten respondents cited recruitment as a major

concern, only 62% chose absence and 59% restructuring.

The public sector appears to have been hit hardest by the recruitment

troubles with nearly nine in ten reporting problems with filling vacancies,

and they don’t expect it to get any easier.

Two-fifths of those in the private sector said that they believed it will

improve compared to only 10% in the public sector

Across the sectors, over eight in 10 (82%)employers believe that the

recruitment position will stay the same or deteriorate.

Employers also slated online recruitment saying that they were unimpressed

by its contribution to improved recruitment. However, they were happy with

the way it reduced costs.

In terms of retention of employees, services firms in the private sector

were optimistic for the coming year, however, the public sector, followed by

manufacturers, had the least confidence.

Three-fifths of all employers (58.8%) have encountered difficulties

retaining employees in the past 12 months. However, things have been

particularly bad for the public sector with 68.2% reporting problems.

”Finding and keeping good staff continue to present organisations across all

sectors of the economy with a huge challenge. Many recruitment difficulties

are the result of straightforward supply problems,” said IRS Employment

Review managing editor, Mark Crail.

”Available labour lacks the required skills and training and jobseekers fall

short of requirements in other ways - such as their personal qualities”

said Crial. Some employers are also leaking talent to the competition,

he said:

”A significant minority of employers have lost out to the competition,

unable to match the salaries or staff benefits offered by rivals. And for

manufacturers, geographical location is another factor for staff recruitment

and retention,” he said.

The survey also found that employers who experience recruitment problems are

more likely to be faced with difficulties in retaining their existing

workforces.

While 58.8% of all employers experienced retention difficulties in 2001,

this rises to 69.0% for employers who had encountered recruitment problems.

The full survey is published in IRS Employment Review. Contact Sue Jackson

on 020-7354 6742

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