Attrition Possibly Tied to Lack of Skills Use Among Employees, Ineffectiveness of Performance Appraisal Process
Aug. 3, 2011 — Despite employee happiness at work, 29% of workers expect to leave their companies within five years. Four out of five employees also feel that their skills are not fully utilized, and almost half report that their performance appraisal process is of little or no value.
These are the results of a global survey, "Inspiring Talent 2011," from Lumesse, a global integrated talent management solution firm. Based on a survey of almost 4,000 employees in larger companies in 14 countries including the United States, United Kingdom, Germany and China, the report looks at employee attitudes to their jobs and employers in areas such as loyalty, job satisfaction, workplace pride, training opportunities and salary perceptions.
As a result of workers not feeling their skills are used as well as they could be and of employers not using effective performance appraisal techniques, Lumesse CEO Matthew Parker said that for many people the solution is going to be a move to a new job.
"That's a pity because overall the survey shows good levels of workplace pride and satisfaction," he said. "If employers can combine that happiness with better career management then the benefits are obvious — better retention, better performance and higher productivity."
The risk of talent loss is particularly affecting to critical sectors of the workforce: 46% of 18- to 25-year-olds are planning to leave their jobs, and half of the most experienced staff also expect to leave within five years. While employers may spend significant time and money in recruiting and training talented young employees and in retaining experienced staff, the survey shows they have to work harder to understand these individuals' career expectations.
While some 81% of workers believe their skills and talent aren’t being used by their current employer, and 49% of employees considered their performance reviews to be of little or no value, employees worldwide still feel proud of where they work. The report found that a majority of workers (69%) are proud to tell other people who they work for.
In April 2011, Lumesse sponsored the anonymous survey of almost 4,000 employees in larger businesses (500 to 50,000-plus employees) worldwide. The survey was conducted independently by a third-party survey company specializing in consumer and employee research. 14 countries, primarily where Lumesse has operations, were covered: Australia, Belgium, China, Denmark, France, Germany, Hong Kong, Italy, the Netherlands, Norway, Singapore, Sweden, the United Kingdom and the United States.