According to a March survey, worldwide human resource leaders are expecting a talent shortage within the next ten years. Forward thinking organizations are developing long term talent management plans including employee recognition programs. Many of my new clients are constructing employee award programs this year as one way to increase a company’s recruiting ability in the future.
Human resource professionals looking to solidify employee retention, and thereby reduce employee turnover are turning to employee awards as a long term solution. 88% of the respondents in another World at Work survey agreed that the talent shortage has the potential to impede growth and financial performance of their organization. By starting an employee award program that recognizes years of service, birthdays, outstanding efforts, etc. human resources can give employee recognition on a consistent basis and help to retain employees.
In a recent article by College Recruiter, the forecasted talent drain is associated to the fact that baby boomers will be retiring in the next five to ten years. Apparently many baby boomers are getting close to retirement eligibility resulting in many low-turnover positions, such as jobs in the healthcare and energy industries, becoming available for the first time in decades. I wanted to point out though that another possible issue for recruiters and managers is that they will be forced to deal with the differences in appeasing two different generations.
Meeting the interests of people with different backgrounds, interests and age levels can be challenging. Employee award programs featuring name brand, lifestyle merchandise allow everyone to pick out the gift of his or her choice. Offering different types of gifts is important and since a company can select a category of merchandise that is one price, the employee recognition program is simple to budget.
It is no surprise that a 2008 study found 80% of business executives polled now consider employee retention as a new top priority, topping the 41% who thought so in 2007. Implementing an employee recognition program is a great way to make a long term plan and commitment to employees and staff. They can result in higher employee retention, lower employee turnover and more referrals for employment opportunities in the future.