8 signs talent retention strategies are faltering - europe

signs talent retention strategies are falteringkelly Global workforce index™8leif agnéus

europe: Denmark, france, germany, hungary, italy, norway, polanD, portugal, russia, sweDen, switzerlanD, uk

2Kelly Global Workforce Index™

Over the past three years, employees’ intentions to

leave their current jobs in the EMEA (Europe, Middle

East and Africa) region have plateaued. Despite ongoing

economic turmoil and many employers assuming that

their people will seek security over new opportunities,

talent retention efforts appear to have stalled.

Now, it seems employees are taking their careers

into their own hands. They’re reporting high levels

of dissatisfaction, but it’s not the trivial kind. Rather,

they appear to be searching for organizations that will

embrace their potential, provide them with consistent

challenges, and this—far more than higher salaries or

better benefits—is the reward they are seeking in spite of

economic uncertainty.

talent retentions suffers a blow in europe

They want meaning in their work, they want to feel valued

and they want to be challenged. Few organizations

appear to be meeting the mark on these fronts, and

employees are realistic about their ability to influence

for this change within their current roles. Instead, they’re

carefully planning their next career move with an eye to

attaining new skills and broader experience, which they

hope will shore up their future employment prospects.

While there are significant differences between

employees in particular countries throughout EMEA, the

broad pattern is remarkably similar. Here, we offer some

food-for-thought for HR professionals and senior leaders

to help turn it around.



The idea that poor economic conditions encourages

loyalty from employees is not holding up. Instead of a

decrease in the number of people intending to move

organizations and roles over the next 12 months, the

proportion has remained unchanged since 2009. Across

the EMEA region, more than six in every 10 employees

are seeking alternative employers this year.

Workers in Portugal, Denmark, France, Italy and the UK

lead this trend, all with around three-quarters of their

workforces looking to change organizations. Russia and

Germany both significantly buck this trend, with only

around half the workforce seeking new opportunities

this year.

It’s highly likely that employees’ movement plans are

part of a broader career strategy to acquire new skills

and maintain a competitive edge in a less secure

market. Employees are seeking differentiation in their

resumes, and few organizations seem able to offer it to

their internal candidates.

1 / Voluntary attrition has plateaueDMost employees are looking to move organizations, and despite ongoing economic turmoil, loyalty has not increased.

76% 74% 54% 61% 76% 65% 70% 78% 54% 66% 63% 75%

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UKSwitzerlandSwedenRussiaPortugalPolandNorwayItalyHungaryGermanyFranceDenmark

Job Switching EMEAjob switchinGDo you intend to look for a job with another organization within the next year? (% yes, by region)


With the exception of employees in Poland, Hungary

and Germany, most exits seem to be driven more by a

clear career strategy, as opposed to deep dissatisfaction

and frustration.

While more than half the workforce in both Poland and

Germany say they regularly feel the urge to quit, most

employees in other parts of EMEA do not. Instead, they

are looking to move in a more planned manner, usually

to access new experiences and skills. Rather than a rash

decision, their desires to leave are being driven with

broader, longer-term goals in mind.

That said, frustration levels are at their highest in

the EMEA region (43% say the frequently want to quit),

compared with just 28% in the Americas and 39%

in APAC.

2 / they are making planneD exitsExits from employers appear to be planned rather than rash decisions made in response to trivial dissatisfactions.

“i quit!”Do you frequently think about quitting your current job and leaving your employer? (% yes, by region)

38% 32% 54% 56% 49% 41% 59% 37% 44% 41% 43% 41%

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I Quit! EMEA


Across the EMEA region, fewer than half of employees

(46%) feel that they have a sense of ‘meaning’ in their

work. The UK and Germany report the lowest levels

of job fulfillment with only around one-third of their

workforces saying that they have a sense of meaning

in their job.

When asked what provides the greatest sense of

meaning at work, most workers say they seek the

“ability to excel and develop” in their field. The

ability to excel draws the highest proportion of votes

in Portugal and Sweden (81% and 78% respectively)

and the lowest in Italy and Hungary (both 61%). While

other issues such as connection with coworkers and

the organization’s alignment with employees’ personal

values also rates highly, the desire to excel wins out

as the key issue for employees across the region, and

indeed the world.

3 / many lack a sense of ‘meaning’ at work Happiness at work comes from a sense of meaning and achievement—without it employees are looking elsewhere in spite of economic uncertainty.

job fulfillmentDoes your current employment provide you with a sense of “meaning”? (% yes, by region)

39% 49% 37% 48% 43% 47% 40% 42% 56% 41% 51% 35%

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Job Fulfillment EMEA


While four in ten workers in Portugal still believe in the

concept of one employer for life (42%), far fewer people

in almost every other part of EMEA agree.

In Hungary, Russia, Italy and Denmark, the idea of a

career for life appears to have the least relevance, with

only around one in ten employees saying they feel it is

still relevant. A career for life is slightly more acceptable

in Poland (23%), Germany (26%), Norway (28%) and

the UK (32%).

Almost two-thirds of workers in the UK (65%) believe

that gaining experience with multiple employers is an

asset to their careers. While this is high, it’s the lowest of

the larger EMEA countries. This figure is 73% in Poland,

74% in Italy, 75% in Switzerland, 76% in France and

Portugal, and slightly higher in Germany and Norway

(both 77%) and Russia (78%).

4 / they belieVe VarieD employment is a competitiVe eDgeWhile some still believe its possible to have one employer for life, most see multiple employers is a career asset.

one employer for lifeto what degree do you agree or disagree that a “career-for-life” with one employer is relevant? (total ‘agree’)

13% 16% 26% 11% 13% 28% 23% 42% 12% 19% 20% 31%

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One Employer for Life EMEA


Less than three in ten employees across the EMEA

region say they would share their quitting plans with

their employers in the hope that a counter offer

might be made.

This is lowest in Italy (16%), Demark (17%) and Russia

and Hungary (both 18%), and highest in Poland and

Sweden (30% and 35% respectively). This suggests

that most employees are set on their plans to move

organizations regardless of their managers’ response

to their resignation, and are doing so because they

don’t believe their current organization has anything

further to offer them.

5 / they’re not looking for a counter offerFew employees are keen to have an open dialogue with their employers about their desire to move on, which signals their minds are already made up.

likely to share quittinG planshow likely are you to share your potential plans to move to another organization with your employer, with the thought that this may result in changes that may motivate you to stay? (total ‘likely’, by region)

17% 28% 22% 18% 16% 28% 30% 22% 18% 35% 28% 26%

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Likely to share quitting plans EMEA


Just 39% of employees in the EMEA region say they

feel valued by their current employer—significantly

behind employees in the Americas (45%) and

APAC (51%).

Perhaps more concerning is the low level of employees

who report that they are being fully utilized in their

current role. Only around three in ten employees in

the region say they are using their skills sufficiently, and

if job movement is tied to employees’ ability to use

their skills and excel, the outlook for talent retention

across the region is poor. Employees in Poland rate

their employers well below the rest of the region on

this count, with little more than one in ten employees

feeling their employers are realizing their full potential.

6 / they feel the least ValueD & utilizeD of all employees globally

26% 28% 22% 20% 29% 30% 13% 26% 23% 27% 33% 24%

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Realising potential EMEArealisinG potentialDo you feel that our current employer is realising the full benefits of your potential? (% yes, by region)


When asked about what drives the decision to accept

one role over another, personal fulfillment and personal

growth/advancement accounts for around seven in

every ten responses across the EMEA region. The

starkest contrast on these counts is found among

employees in Denmark, the UK, Switzerland and

Germany—in these countries an exceptionally small

proportion of people feel that compensation and

benefits drives their choice to accept one role over

another. Yet, in Hungary compensation is a major driver

of job choice, with almost four in ten employees feeling

it is a key consideration.

Similarly, when asked which factor makes them feel

more committed and engaged with their current job,

‘more challenging and interesting work’, and ‘more

meaningful responsibility’ accounted for the majority of

responses—well ahead of higher salaries and benefits.

7 / they want personal fulfillment anD to be challengeDWhat really keeps employees engaged— enjoyable and challenging work—is no easy task to respond to.

factors that drive job choicewhich of the following factors would drive your decision to accept one job/position over another? (by region)

Factors that drive job choice

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Personal fulfillment/growth/advancement Compensation/benefits


More employees across the EMEA prefer to be

rewarded via a financial bonus than those in other

regions. However, in most cases this type of reward is

the preferred option for fewer than half of the working

population. Only Germany and Russia stand out as the

countries where most workers prefer and expect this

kind of reward.

A significant proportion of people say they do not

require any form of reward at all for a job well done.

This is highest in Denmark where almost one-quarter

say no reward is required, followed by Portugal and the

United Kingdom with almost one in five (19%) agreeing.

This compares with just 5% in Germany and Hungary,

4% Italy and 2% in Russia.

The significant differences across all countries and

regions points to the fact that rewards and incentives

are very personal. Having a one-size-fits-all approach

is likely to miss the mark, as none of the suggested

performance rewards can claim to meet the desires of

the majority of any worker population.

8 / their Desire for rewarD is personal Don’t just assume all employees are looking for a pay rise —it’s more complicated than that.

rewardinG performancewhat is your preferred way of being rewarded for good performance at work (by region)

Rewarding Performance

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Financial Bonus None required


A strong, global pattern has emerged in talent retention,

and employees across the EMEA region are no exception.

Declining satisfaction and meaning at work is reaching a

natural crescendo—and it’s hardly assisted by ongoing

market turmoil and the quickening pace of change. Most

people are planning to switch organizations within the

next year, and they have clear, strategic reasons why

they’re doing so.

Few feel that their current organization is accessing their

potential, which inevitably throws up a negative cycle

in the talent retention stakes: as one employee leaves

to pursue their potential, another arrives in their place

with the same goal. It seems both will get what they

seek for the short term and then the cycle will repeat,

leaving HR and hiring managers to pick up the pieces and

consistently plug skills gaps in a tightening market.

Instead of being locked into an endless, vicious cycle, HR

professionals, hiring managers and senior leaders in the

region should look to:

conclusion

• give employees a voice in how they’re rewarded:

don’t assume a bonus will always be top of the list.

Consider other projects, skills and responsibilities that

staff can be exposed to should they reach their high-

performance target. After all, large numbers of people

say that challenging work helps to keep them engaged

in their job.

• commit resources to documenting and keeping

track of employees’ skills: few employees feel their

full potential is being utilized in their role. This is a

poor outcome for both employee and employer. Some

of this is simply that managers and HR departments

do not always have a clear view of the skills that

each employee has, and as a result they fail to be

proactive about helping employees use these as new

opportunities arise.

• find ways to move employees internally: for most

employees, the idea of an employer for life is outdated

and instead they actively seek new employers to

access and develop new skills. This can be provided

internally, but is likely to fail if the entire process relies

on managers. Allowing employees to choose projects

and make a case for being part of them, as well

encouraging other departments/managers and teams

to seek skills internally, will increase development and

growth opportunities for internal talent.

• focus on ways to demonstrate the outcomes and

contribution of each employee’s role: meaning

at work is critical to engagement and satisfaction,

so finding ways to demonstrate the ways in which

each role contributes to overall outcomes is key to

retention and productivity. Team recognition is fine, but

individuals want to see how they impact results too, and

this means finding ways to measure and report on it.

• make the most of contingent workers: around

one-third of most workforces are now made up of

contingent labor, and these workers need to be kept

engaged, motivated and rewarded too. This highly

skilled group offers a wealth of potential, but if it’s

not being used, they’re more likely than others to

move quickly.


Kelly Global Workforce Index™

about the author

LeIf AGnéus is senior vice president and general manager, europe, Middle east, and Africa for Kelly services

and oversees our operations across 16 countries and territories in the eMeA region. Leif holds

a master’s degree from the ecole Hotelière de Lausanne with majors in finance and service delivery. He is a

board member of eurociett and a member of the swiss American Chamber of Commerce.

methoDology

The Kelly Global Workforce Index was open to respondents around the globe and took the form of a questionnaire on the

Kelly Services website. Data was collated and analyzed by RDA Group. A number of questions have remained consistent over

the course of the survey and allow time-series analysis.

about kelly

Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions. Kelly® offers a comprehensive array of

outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire and direct-hire basis. Serving

clients around the globe, Kelly provides employment to more than 550,000 employees annually. Revenue in 2011 was $5.6 billion.

Visit www.kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter.

download your free copy today.

This ebook is extracted out of the report Acquisition

and Retention in the War for Talent.

exit

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