Talent Shortage Emerges as No. 1 Employer Concern: Deloi...(of totalrewards by business unit or work...),Health

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).

Methodology

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 http://www.deloitte.com/us/2008Top5 or at