Growing In-House Talent a More Common Trend

September 10, 2002 (PLANSPONSOR.com) - Nearly four of 10 respondents to a new Mercer survey say their companies will likely increase the development of internal job candidates.

Mercer said the shift in personnel policy is most pronounced among companies whose current strategy is to buy talent; more than half (56%) said they expect to build more in the future.

Some 51% said they are now equally divided between promoting from within and hiring from the outside. Some 15% of respondents said they expect to step up their efforts to hire more employees from outside, the survey of more than 300 large employers showed.

The employers surveyed cite attracting/retaining the right employees as their top reward program challenge over the next 12 months (83% cite this issue as “very important” and 16% cite it as “somewhat important”).

Differentiating high performers ranks second on the list of current manager issues (78% and 21%, respectively), and cost control is third (75% and 23%, respectively).

Other findings

Mercer also asked survey participants about their corporate reward programs.

Just 17% of the respondents said their current reward programs support the organization’s talent requirements to a great extent.

The majority (69%) said their reward programs support their talent needs to a moderate extent while 14% felt there was a minimal connection between their organization’s reward programs and talent needs.

External benchmarking is the technique most commonly used to make decisions about how to allocate reward investments (used by 75% of the employers surveyed), followed by best practices among other organizations (65%), and employee surveys or other employee feedback (48%). 

Few companies (29%) assess workforce trends based on internal statistical modeling of workforce patterns to guide their reward investment decisions.

The complete Mercer survey is available this Mercer Web site .

«