Global Talent Monitor
1Q19: Update on
Workforce Activity
Overview
Each quarter, our Global Talent Monitor is sourced from over 40,000 employees in
over 40 countries and regions to offer the most authoritative look at the latest global
and country-level trends so HR leaders know what attracts, engages and retains talent.
Key Findings
■ Employees’ confidence in the business outlook decreased this quarter, while
employee perceptions of job opportunity increased.
■ Fewer employees were actively seeking new employment in the first quarter of
2019.
■ Employees’ discretionary effort increased globally and in most regions. Employees’
intent to stay at their current organizations increased globally yet decreased
slightly in most regions.
■ Compensation, work-life balance and stability remain the top job attributes
employees look for in a new employer.
Employee Business Confidence and Job
Perception
Employees’ confidence in business conditions decreased in the first quarter of 2019.
Indexed at 54.7, this marks the lowest point in the business confidence index since the
third quarter of 2017. However, it remains higher than any point from 2Q15 to 3Q17
(see Figure 1).
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Figure 1: Business Confidence Index
The business confidence index uses four survey questions to
measure employees’ confidence in the near-term business
conditions and long-term economic prospects in their industry.
Global Job Perceptions Increase
According to our job opportunity barometer, employees in most regions perceived
more job opportunities in the first quarter of 2019 than the last quarter of 2018. This
increase demonstrates employees’ increased perception of options for employment
in their locations, functions and industries. In Europe, Asia, Australia and New Zealand,
however, employees reported a slight decrease in their job-opportunity perceptions
(see Figure 2).
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Figure 2: Job Opportunity Barometer
The job opportunity barometer uses five survey questions to
measure employees’ perceptions of the availability and quality
of other employment opportunities in their current locations,
industries and functions.
Active Job Seeking in the Workforce
Globally, only 26.6% of the workforce actively sought a new job, a decrease from
the 27.2% of employees actively searching last quarter. The percentage of neutral job
seekers increased from 29.8% to 30.3%, whereas passive job seeking increased to
43.1% (see Figure 3).
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Job-seeking activity by country mostly decreased. India displayed a significant
decrease in the first quarter yet remains the country with the highest active-passive
score (i.e., the most job-search activity), with Island Southeast Asia and Indonesia
following behind. Employees in Japan, Belgium and the Netherlands, and Germany
report the lowest levels of job-seeking activity (see Figure 4).
Spain, Australia, the U.S. and Switzerland were the only countries with significant
increases in job seeking compared to last quarter. Employees in these countries
actively sought new employment more often than in the fourth quarter of 2018.
Five countries experienced significant decreases in job-seeking behavior this quarter,
including India, Indonesia, China, the U.K and Belgium and the Netherlands (see Figure
5).
Figure 3: Percentage of Employees, by Job-Seeking Behavior
The active, neutral and passive categories group employees
according to the extent of their inclination and demonstrated
effort to look for a job.
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Figure 4: Active-Passive Score
The active-passive score uses eight survey questions to measure
the extent to which employees are inclined and demonstrate
effort to look for new jobs.
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Figure 5: Changes in Active Job Seeking, by Country
Top Job Attributes Attracting Talent
This quarter’s data provides three primary take-aways on what factors drive an
employee’s decision when considering a new job:
■ Globally, the top three drivers of attraction have remained the same for three
quarters, since the third quarter of 2018: compensation, work-life balance and
stability in the workplace (see Figure 6).
■ Location is the second most important factor driving an employee’s decision when
considering a job in Australia, the U.K. and the U.S. (see Figure 7).
■ Future career opportunity increased in rank globally in Australia, China, India and
the U.K.
For more information on these attributes, please refer to the EVP Model Attributes.
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Figure 6: Percentage of Employees Ranking Drivers Among the Top 5 Attributes Influencing
Employer Selection
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Figure 7: Top 10 Attraction Drivers for Select Countries and Regions
Discretionary Effort and Intent to Stay
Employees’ discretionary effort and intent to stay increased for the third consecutive
quarter. Employees with high intent to stay rose to 32.8%, and employees exhibiting
high levels of discretionary effort increased to 15% (see Figure 8).
Discretionary effort increased across all geographies except Australia and New
Zealand. Following notable decreases last year, discretionary effort increased the most
in Latin America and Asia (see Figure 9).
While employees’ intent to stay increased globally, it decreased in most regions —
most significantly in North America and Australia and New Zealand (see Figure 10).
These global increases in employees’ discretionary effort and intent to stay indicate
more employees are engaged in their work compared to last quarter. Our first quarter
data shows 15% of employees display high discretionary effort, and 55% of these
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employees also report high intent to stay. The engaged workforce grew in the first
quarter of 2019, increasing to 8.2% (see Figure 11).
Figure 8: Percentage of Employees Reporting High Levels of Intent to Stay and Discretionary
Effort, Overall
Intent to stay refers to employees’ desire to stay with the
organization based on whether they intend to look for a new job
within a year, frequently think of quitting, have actively been
looking for a new job or have taken steps, such as placing phone
calls and sending out resumes.
Discretionary effort refers to employees’ willingness to go above
and beyond the call of duty, such as helping others with heavy
workloads, volunteering for additional duties and looking for
ways to perform the job more efficiently.
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Figure 9: Percentage of Employees Reporting High Levels of Discretionary Effort, by Region
Figure 10: Percentage of Employees Reporting High Levels of Intent to Stay, by Region
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Figure 11: Percentage of Employees Reporting High Levels of Discretionary Effort
Top Dissatisfying Job Attributes Reported by
Departing Talent
This quarter’s data on what factors drive an employee’s decision to leave an employer
provides three primary take-aways:
■ Compensation, future career opportunity and people management maintain their
rank as the top attrition drivers for employees globally; however, compensation
replaces future career opportunity as the top driver (see Figure 12).
■ Work-life balance increased in rank in Australia, India, Southeast Asia and the U.K.,
remaining the fifth driver globally and decreasing from fifth to seventh in rank in
the U.S (see Figure 13).
■ Future career opportunity decreased in rank in Australia, Southeast Asia and
the U.K, decreasing to the second driver of attrition globally, but maintaining its
position in India and the U.S.
For more information on these attributes, please download EVP Model Attributes cited
earlier.
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Figure 12: Percentage of Departing Employees Ranking Drivers Among the 5 Most Dissatisfying
Attributes at a Previous Job
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Figure 13: Top 10 Attrition Drivers for Select Countries and Regions
Merit-Pay Expectation Trends
This quarter’s data on compensation expectation trends provides three primary take-
aways:
■ The compensation switching premium increased this quarter to 16.6%, its highest
level since 2011 (see Figure 14).
■ Merit-pay expectations remain the highest in India, Brazil and Island Southeast
Asia (see Figure 15).
■ Only employees in the U.K. show a significant decrease in merit-pay expectations
this quarter. Employees in Australia expect a lower change in base pay compared
to last quarter (see Figure 16).
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Figure 14: Global Compensation Switching Premium
The compensation switching premium measures departed
employees’ anticipated compensation changes at their new
organizations.
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Figure 15: Merit-Pay Expectations, by Country
Merit-pay change expectations measures the percent change in
base pay an employee expects in the coming year.
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Figure 16: Changes in Merit-Pay Expectations, by Country
Conclusion
While employees’ confidence in the business environment decreased this quarter,
they are more invested in their work. Continuing the trend from the fourth quarter of
2018, the increase in employees’ discretionary effort and intent to stay demonstrates,
globally, employees continue to become more engaged. Employees perceive more
available job opportunities, yet fewer employees are actively seeking new employment
globally.
Organizations looking to attract talent should note fewer employees globally are
seeking new opportunities. The top drivers for attracting talent remain the same as the
previous quarter: compensation, work-life balance and stability. Employees switching
jobs expect a higher switching premium this quarter than in previous years.
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Recommended by the Authors
■ “Employee Engagement Benchmarks”
This interactive platform helps you assess how your organization’s engagement
levels compare to the benchmark; use it to evaluate your current engagement
levels.
■ “Ignition Guide to Designing a Compelling EVP”
This guide is designed to help HR leaders create a compelling employment value
proposition (EVP) that will help their organizations attract and retain top talent
and choose the core EVP attributes to inform HR strategy and employment
branding.
■ “Compensation Watch September 2018”
Organizations can use this report to benchmark their anticipated 2019 short-term
incentive payout and salary or merit increases against those of their peers.
■ “Engagement Strategy Playbook”
This playbook provides guidance, tools and templates for planning and executing
an engagement and retention strategy, from making the business case for
employee engagement to supporting the line in driving engagement and retention.
■ “Open-Source Change: Making Change Management Work”
Research highlights from our webinar capture how the best organizations use the
workforce’s frontline expertise to make decisions that improve business outcomes.
About This Research
Each quarter, our Global Talent Monitor is sourced from over 40,000 employees in 40
countries and regions (see Figure 17).
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Figure 17: Demographics
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