Employers Recognize How Cost-Cutting Affected Workforce

September 7, 2010 (PLANSPONSOR.com) - The Towers Watson Global Talent Management and Rewards Survey notes that the economic crisis forced many companies globally to take cost management or cost-cutting activities, such as hiring and salary freezes, layoffs, and bonus reductions.

The survey of 1,176 companies globally found U.S. companies took the most aggressive measures, with more than 60% implementing at least four cost-cutting actions. Sixty-one percent of the 314 U.S. respondents said they believe their cost-cutting actions increased employees’ workloads, while 53% said they adversely impacted employees’ ability to manage their work-related stress.   

According to a press release, one-half also said these measures had a negative impact on employee engagement and workers’ ability to balance their work and personal lives.  

Perhaps as a result, nearly two-thirds (65%) of companies globally and more than half (52%) of U.S. companies reported problems attracting critical-skill employees, and 61% of companies globally, and 45% of U.S. companies, reported similar difficulty attracting top-performing, talented employees. 

“This study is a good reminder that employers need to reassess their employee value proposition to key in on those factors, both tangible and intangible, that would make them attractive to recruits,” said Ryan Johnson, CCP, Vice President of Publishing and Community for WorldatWork, in the press release.   

Companies in most regions reported having less difficulty retaining employees than they do attracting them. Globally, only 21% of companies are having difficulty keeping employees generally, while just 11% of U.S. firms reported problems holding onto employees.   

The survey found organizations are likely to increase their talent management emphasis in leadership, succession planning, and career pathing over the next three years. When asked what their top talent management priorities were, 62% of companies globally responded ensuring the readiness of talent in critical roles, followed by 60% who said increasing the investment in building an internal pipeline of talent.   

Just over one-half (51%) ranked creating more movement, rotation, and development opportunities for talent as a top priority.   

More information is at http://www.towerswatson.com/talent-management-rewards/.