UK businesses confident about talent strategies but concerned about employee turnover rates

 

A new report by BPS World reveals that senior executives in businesses across the UK are confident their talent strategies are working but are also concerned that turnover rates are too high.

Entitled ‘Challenging Talent’, the report is supported by qualitative research and finds that 96% of UK businesses rate their own approach to succession planning highly. A further 64% rate their talent pipeline as very good or excellent, yet an equivalent number (more than two thirds) are concerned that their turnover rates are too high.

As part of the in-depth study, 500 senior decision makers from companies with 50+ employees were asked about their hiring challenges, their engagement strategies and interview processes, the global talent pool and the skills gap in industries including banking and financial services, engineering and manufacturing, information technology and insurance, as well as C-suite members across other sectors.

Respondents pinpointed strong competition for talent, Brexit and meeting salary expectations as their biggest hiring challenges over the coming decade. 

Three quarters said that there is room for improvement in their recruitment processes, more than a third thought potential candidates would consider their interview process too complicated, while a quarter thought candidates would find the process too long.

A quarter of respondents said they thought candidates would see their interview process as unclear, while just over a fifth might find it frustrating.

A considerable two thirds of senior executives admitted that candidates who are offered a role either often, or sometimes, turn the position down. Of those, 45% believe this is because of strong competition for the best talent, with good candidates having a choice of several offers.

Just over a quarter said they often end up hiring their second choice.

Respondents were also asked if intense competition for talent means they employ a global approach to acquisition. Almost a third said that they already access talent flexibly from around the world, while two fifths said they did so only occasionally because employees must regularly work from their UK HQ. Almost one fifth admitted they are restricted by the need for their people to be based with them full-time.   

Simon Conington, CEO of BPS World, said, “Skills gaps and a lack of effective talent are not unique to any industry and it’s clear that those we surveyed are experiencing challenges associated with finding and retaining the best people. Many were refreshingly honest about where they see room for improvement when it comes to their approach to attracting and hiring people; yet too many are complacent that their strategies are working well, despite the fact that they clearly aren’t. It’s important that senior business leaders take a holistic view of their entire approach to managing talent, particularly in a market where competition for the best people is more intense than ever. Quite simply, getting the right talent and keeping them makes the difference between success and failure for UK businesses.”

Thursday, 26 April 2018

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UK businesses confident about talent strategies but concerned about employee turnover rates