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Talent Shortage Emerges as No. 1 Employer Concern: Deloitte/ISCEBS
Date:3/25/2008

st 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
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SOURCE Deloitte
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