Majority of City employers are failing to retain talent

More
than two-thirds of City employers claim they are able to attract talented staff
to their firms, yet more than half concede they cannot retain this talent,
research finds.

According
to a survey by Penna Consulting City of some of the leading City financial
institutions, the inability to hold on to such talent derives from a lack of
infrastructure to identify and manage the true potential of employees.

More
than half of the respondents were unaware of the company’s attrition rate for
talent. Examples of good talent management included JP Morgan, Unilever and Shell,
for their dedicated approach to identifying and retaining talented people.

The
survey reveals the most popular methods of assessing talent involve a
subjective analysis of employees’ performances, rather than an objective one.
The appraisal process is the most popular, used by 96 per cent of the companies
surveyed, followed by 360-degree feedback (64 per cent) and assessment by HR
professionals (44 per cent). Only 24 per cent of respondents used an assessment
centre to assess their talent.

Michael
Moran, executive director of Penna, said: “A formal objective strategy is
needed to identify and manage the talent of employees, but equally there needs
to be internal buy-in from the board.

“The
performance of top employees can drive a business forward, and there is
therefore a real need for HR professionals to take the issue of talent
management to the top of the company.”

By Ben Willmott

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