As companies in the Middle East and worldwide struggle to move beyond the great recession, many executives now recognize the need to develop talent strategies to meet both current and future challenges, according to a survey. “Over 56% of executives forecast leadership shortages and only 20% describe their talent management program as world class,” the survey revealed.
Above issues was among several that take the spotlight in the first report of Deloitte’s new survey series Talent Edge 2020. The report features results from a survey conducted by Forbes Insights for Deloitte that polled more than 300 global business executives worldwide, including a sample from the Middle East, across numerous industries.
“Success for companies in the next decade will be determined by how well they manage to balance the economic realities with the need to invest in new talent,” said Rana Ghandour Salhab, Partner in Charge of Talent and Communications at Deloitte in the Middle East. “Certainly in the Middle East the demographics have created a large pool of young graduates and experienced talent in search of opportunities. Job creation and retention are crucial to economic growth and stability in Middle East countries. It is only the companies that describe their talent programs as “world class” that have a clear sense of the pressing talent issue and are therefore more likely to invest in creating career paths and challenging opportunities for employees.” In Deloitte’s Talent Edge 2020, only 20% of respondents said their talent management programs as “world class”.
Most senior executives and talent managers who participated in the survey agree their companies need a proactive plan to keep their talent intact. However, according to the survey, only those companies with retention plans in place are moving beyond anxiety and taking action; 69% of those companies surveyed with a retention plan said they would “significantly increase” or “increase” their focus on compensation in the year ahead, compared to 48% of those without a retention plan. Additionally, 76% of those with a retention plan will expand benefits and 70% will boost non financial incentives, compared to 55% and 52% respectively of those without a retention plan.
“Nearly six in ten executives surveyed reported that their company’s voluntary turnover had increased in the past year and a slightly higher percentage believe it will increase in the coming twelve months,” added Salhab. “Perhaps even more worrying is that few companies surveyed had a clear idea of what is driving turnover. A retention plan is essential for any company that wishes to optimize the value of its investment in talent. At Deloitte in the Middle we consider retention of talent as a direct result of our talent strategy and are gauged by continuously reviewing our employee satisfaction through our “people survey”, listening and responding to feedback, and providing rewarding careers with opportunity for growth.”