Navigation Links
Talent Shortage Emerges as No. 1 Employer Concern: Deloitte/ISCEBS

Economic Security in Retirement and Financial Growth Opportunities Most

Troubling to Employees, According to Survey

NEW YORK, March 25 /PRNewswire/ -- A shortage of skilled and talented workers has become the most pressing concern among employers, supplanting the perennial leading problem, rising cost of health care, according to the 14th annual Top Five Total Rewards Priorities survey conducted by Deloitte Consulting LLP (Deloitte) and the International Society of Certified Employee Benefit Specialists (ISCEBS).

Nearly three-quarters of the 413 U.S. human resources professionals surveyed cited talent as their top concern. Meanwhile, 71 percent identified cost containment of health care as a top five concern this year, dropping from 80 percent last year. Other leading issues are the willingness of employees to pay for an increasing portion of benefit plan coverage and to manage their own reward budget (58 percent), clear alignment of total rewards strategy with business strategy and brand (56 percent), and demonstrating appropriate return on investment for reward expenditures (42 percent).

"Clearly, talent management is the top organizational challenge -- higher than managing the cost of total rewards, especially health care," said Tim Phoenix, a principal in Deloitte's Human Capital service area and co-director of the survey. "We find that HR organizations around the world are becoming increasingly business-driven and strategic, shifting their focus from HR administration and cost reduction to long-term ROI and growth in a way that directly impacts the bottom line."

Economic Insecurity

Responding to questions from an employee perspective, survey respondents pointed to economic security in retirement and financial growth opportunities before retirement as primary areas of concern.

Forty-two percent of respondents cited the "ability to afford retirement, including post-retirement health care," as the most important area of concern to them, while "ability to earn additional rewards that allow oneself to stay on top of inflation and advance in real economic terms" was cited by 26 percent.

A pattern of growing personal concern over these "big ticket" economic items is replacing angst about "my cost of health care benefits," which has slid from the biggest worry of 20 percent of survey respondents in 2005, to only eight percent in 2008.

Even though respondents' personal concerns were clearly about retirement, when asked to name their top total rewards challenges for their organization, only two percent mentioned "the cost of providing retirement benefits to employees," and a mere one percent picked "the ability of our employees to retire."

"This disconnect between what employees need or want and what employers are doing in the area of total rewards can be detrimental to the financial performance of an organization, especially as talent challenges become increasingly acute," cautions Philip A. Grisafi, CEBS and 2008 ISCEBS president. "Employers are still struggling to find that magic formula for controlling costs while retaining and motivating their employees."

In hopes of finding that balance, according to the survey respondents, companies are abandoning the traditional vertical "corporate ladder" approach and are addressing their long-term workforce needs through a more flexible "lattice" employment model. This new framework can enable workers to customize their careers and move smoothly across a widening range of job options and structures.

Communication, consumerism, customization

Consumerism and customization in total rewards strategies is being driven by cost concerns, and a convergence of powerful workforce trends. Change is in the works. Overall, 84 percent of survey respondents (versus 70 percent a year ago) expect to make changes in the specific elements of their total rewards program or strategy; new differentiation of total rewards by business unit or workforce segment; or new alignment with the employment brand.

Nearly three-fourths (71 percent) of survey respondents plan to "increase employee communication and education surrounding our reward programs," and a majority (56 percent) plan to "redesign some of our reward programs to better align the interest of employees and the organization and promote employee engagement."

"While cost reduction is an important employer motivation for emphasizing consumerism, the customization of rewards strategies is also being driven by the convergence of powerful workforce trends, such as the shrinking pool of skilled labor, the increasing impact of technology and the evolving expectations of Generations X and Y," explains Dick Kleinert, a principal in Deloitte's Human Capital service area and co-director of the survey.

Generation Gap?

When asked whether they have made -- or are planning to make -- changes to their total rewards programs with generational preferences in mind, nearly one-third of respondents (32 percent) answered in the affirmative.

Phoenix and Kleinert believe that response will likely rise sharply in future surveys, as employers begin to link their current worries about future talent acquisition, with a greater appreciation for the profoundly different attitudes about work and career expectations of Generation Y or Millennial workers (those born after 1980), versus now-retiring Baby Boomers -- and even many in Generation X (those born between 1965 and 1980).


Conducted since 1994, this year's survey was completed online by 413 respondents in December 2007 and January 2008. As in prior years, respondents represent a diverse cross-section of the U.S.-based employer universe by industry and size. A full copy of the report is available at or at

NOTE: For purposes of this survey, the term "total rewards" is defined as all compensation, benefits, perquisites, and any other direct or indirect payments made to employees.

About International Society of Certified Employee Benefit Specialists

The International Society of Certified Employee Benefit Specialists (ISCEBS) is a non-profit educational association whose members have earned the Certified Employee Benefit Specialist (CEBS) designation, which is cosponsored by the International Foundation of Employee Benefit Plans and the Wharton School of the University of Pennsylvania. For more information on the Society or CEBS, please visit the ISCEBS Web site at

About Deloitte

As used in this document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

SOURCE Deloitte
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Pharmaceutical Product Commercialization & Governance Best Practices: Securing Talent for Highly-Effective Brand Teams
2. World class technology and talent battle cancer at the Centenary Institute
3. Multi-talented Entertainer Chris Brown Goes Back to School, Taking on a Starring Role in the St. Jude Math-A-Thon (R) Video
4. Actress, Singer, Songwriter Miley Cyrus, Also Known as Hannah Montana, Adds St. Jude Math-A-Thon(R) Video Host to Her Talents
5. Retain Talent and Engage Employees in 2008
6. Lessons Learned in Securing Top Talent During University Recruiting
7. Vonage Selects Halogen Software - New Solution to Streamline Employee Performance and Talent Management Across Organization
8. Psychemedics Corporation Joins Accenture in Co-Sponsoring Innovative Chief Talent Officer Book
9. Braun Challenges Business School Talent To Create A Buzz
10. Despite Looming Shortage of State and Local Public Health Workers, Americans Confident Governments are Prepared to Deal with Public Health Threats
11. Shortage Creates Increased Job Prospects in Veterinary Medicine
Post Your Comments:
(Date:11/26/2015)... ... 26, 2015 , ... Pixel Film Studios brings Final Cut ... Vintage. This newly styled ProTrailer pack comes with 30 all-new vintage-inspired designs, with ... users limitless opportunities to stylize and create designs quickly and easily, all within ...
(Date:11/25/2015)... ... , ... The holiday season is jam-packed with family dinners, ... attendees is of the utmost importance. Whether you are cooking at home for ... a try this holiday season. , Turkey Croquettes ,     Ingredients: , ...
(Date:11/25/2015)... ... November 26, 2015 , ... ... (AUC), European Union (EU), ANDI Pan African Centres of Excellence, and public R&D ... Nairobi (UNON) for the opening of the 5th African Network for Drugs and ...
(Date:11/25/2015)... ... , ... Dental professionals who would like to become more proficient on their ... Mark Iacobelli’s Advanced Implant Mentoring (AIM) CE course. Courses will be held on December ... of Advanced Implant Mentoring (AIM), Dr. Iacobelli and Dr. D’Orazio are proud to announce ...
(Date:11/25/2015)... ... November 25, 2015 , ... Smiles by Stevens is pleased to ... facial wrinkling. While many patients are aware of the benefits of Botox® in the ... to those suffering with discomfort, soreness, and pain as a result of Jaw Tension, ...
Breaking Medicine News(10 mins):
(Date:11/26/2015)... , November 26, 2015 ... --> adds "Global Repaglinide ... "Investigation Report on China Repaglinide Market, ... forecasts data and information to its ... . --> ...
(Date:11/25/2015)... ) ... "Global Brain Monitoring Devices Market 2015-2019" ... ) has announced the addition of ... 2015-2019" report to their offering. ... ) has announced the addition of the ...
(Date:11/25/2015)... , Nov. 25, 2015 AAIPharma Services ... investment of at least $15.8  Million to expand ... Wilmington, NC . The expansion will provide ... meet the growing demands of the pharmaceutical and ... site expansion will provide up to 40,000 square ...
Breaking Medicine Technology: