Category Archives: retention

M&As: Keeping Talent Long-Term

Mergers and acquisitions are hard, but post-merger success can be harder: Up to 90 percent of mergers end up failing, according to the Harvard Business Review. While mergers are complicated and the factors that can contribute to failure are many, one of the biggest impediments to success is when talented employees from both organizations decide not to stick around post-merger.

Willis Towers Watson’s 2017 Global M&A Retention Study finds that, while acquiring companies have been increasingly successful in retaining at least 80 percent of their employees who’ve signed retention agreements through the end of the retention period, only about half retain at least 80 percent of such employees a year after the retention period ends.

“It’s a tale of two results,” says Mary Cianni, WTW’s global M&A practice lead. “Acquirers have made good strides at keeping key talent for an initial period, but there’s room for improvement one year later.”

Companies are failing to use the retention period to capture these employees’ “hearts and minds” for the long term, she says. Retention bonuses — the primary financial award used by companies — are important, but are only part of the equation, says Cianni.

“Personal outreach by leaders, strategic promotions and employees’ participation on task forces are also beneficial and will pay dividends in the years ahead,” she says. Total rewards (learning and development and career opportunities for hi-pos, in particular) can also be key.

The report (based on data from 244 respondents in 24 countries) finds that companies which prioritize early communication with senior leaders — 24 percent of the acquiring companies asked senior leaders at their target companies to sign retention agreements prior to the initial merger agreement signing — tend to have better luck at retaining those leaders than those that do not.

Of course, culture is also important: Nearly half (44 percent) of the employees who left prior to the end of their retention period blame the new or changing culture of the combined organization as the reason for leaving. Other top reasons for leaving include being aggressively pursued by competitors (36 percent) and not liking their new role (25 percent).

“The most successful acquirers realize retention agreements can buy time, but not loyalty,” says Scott Oberstaedt, WTW’s director of executive compensation. “And by not using their arsenal of tools to build loyalty during what can be tumultuous periods, companies often lose talent that would serve them well in the long run.”

When Retention Requires Attention

Keeping retention rates high is a priority for any organization, but what happens when it starts to slip?

In a new piece on Fast Company, contributor Lydia Dishman delves into the question of how to stop an exodus of workers that the Bureau of National Affairs has estimated costs employers $11 billion annually.

The reasons for workers to seek greener pastures are often manifold, Dishman notes:

Overall, the latest Gallup report found that a record 47% of the workforce says now is a good time to find a quality job, and more than half of employees (51%) are searching for new jobs or watching for openings. Gallup found that this is due in part to a national employee engagement rate currently hovering at just 30%.

Workers also switch employers to get a salary bump that can go above the traditional annual cost of living raise that hovers around 3%, barely outpacing inflation. Right Management, ManpowerGroup’s global career and talent development expert, polled 4,600 workers globally, and found 1 in 5 people are simply in the wrong role.

A new report from Ceridian, based on a survey of 1,602 U.S. and Canadian employees, revealed that even generational differences are influencing the urge to jump ship. Over a third (33%) of gen-Xers were actively looking for work versus just 22% of millennials and gen-Z. Those between the ages of 18-29 did say that they wouldn’t stick with one employer for more than five years.

Despite these survey results, Dishman quotes an expert who says other factors are also influencing younger workers’ desire to change employers, including a company’s culture.

“Ziprecruiter’s CEO Ian Seigel, agrees that workplace culture is the biggest and most direct driver in turnover. But Seigel says they’re looking beyond feedback and clear communication of opportunities to advance.

Seventy-five percent of millennials want flexibility that also keeps them on promotion tracks,” Seigel notes. That’s why he recommends that managers take a closer look at what motivates their teams, and how to diverge from traditional best practices in order to retain them.

In order for companies to figure out whether employees are leaving because of the culture, Dishman quotes Fran Katsoudas, Cisco’s chief people officer, who suggests that managers listen and engage with their team regularly.

“If you understand your team dynamics, the individuals on your team, and their strengths,” she explains, “you will have a much better lens on what is going well or where there are challenges.” She encourages leaders to show their vulnerability and take ownership of what is not working, which is key to getting to the root causes of people retreating.

Another way to do this, Katsoudas tells Dishman, is “to use data and analytics. Cisco has a weekly check-in tool, quarterly surveys, and regular feedback from every monthly and quarterly event.

“When employees know that their manager is regularly listening to them, the impact is significant,” she says.

Take My Employees, Please

Jolt CEO and co-founder Roei Deutsch doesn’t necessarily want his talented young employees to stay.

Deutsch, who heads the San Francisco-based career development start-up, started experimenting with “charterships” about a year ago; an arrangement in which workers would leave the job they were hired for after two years. At that time, they would either find a new internal role that would get them closer to their ultimate career destination or they would leave to pursue that dream elsewhere.

Earlier this year, Business Insider’s Matt Weinberger explained the key tenets of the chartership concept:

“After two years, your job is done, no matter what,” Weinberger wrote. “At that point, you can either leave the company with no hard feelings or find a new two-year ‘mission’ at the company.”

An employee’s exit “doesn’t mean I’m firing you,” Deutsch told Business Insider at the time. “It means, ‘Let’s find something new for you to do.’ ”

Jolt also goes against the start-up grain by not offering an overabundance of perks, and Deutsch “cops to the fact that he’s paying employees below market rate,” according to Weinberger.

The idea, he wrote, is to instead reinvest that money into what Deutsch calls “employee success,” meaning that new hires “come in with a list of things that [they] want to learn,” and Jolt devotes resources to helping them reach their professional goals, and assigns them a manager to co-pilot the journey, wherever it takes them.

Business Insider recently followed up with Deutsch to see how this experiment is playing out.

So far, things haven’t gone exactly according to plan.

Part of the problem, he says, is that some millennial workers aren’t sure where they want their professional path to lead them.

“People have no idea what they want to do next,” says Deutsch. “Therefore, it’s hard for them to prepare for it.”

He’s staying the course, however, and Jolt’s embrace of charterships hasn’t seemed to affect its ability to attract talent. In fact, the company has added five new employees since February of this year.

Instead of abandoning the chartership philosophy, Deutsch and the organization are making some tweaks to it.

“Originally, Jolt’s managers were responsible for making sure that the workers who reported to them were sticking to their career development plans,” according to Business Insider. “But the company came to believe that arrangement was unsustainable. The company was essentially asking managers to prepare employees to leave the company for their next jobs at the same time it was requiring them to get the employees to do their current work.”

That approach included a “built-in conflict of interest,” Deutsch told the news website, “that makes helping your employees prepare for their next chapter harder.”

So, in addition to giving employees more time to create their personal development plans—they now have a year, as opposed to the three weeks they were allotted when the experiment started—Jolt has also begun bringing in career coaches to meet with workers in confidential sessions every two weeks.

I don’t know if Business Insider plans to check in on Deutsch and his chartership program again, but it would be interesting to see where this first group of Gen Y workers find themselves when their two years are up, and how much this experience helped them get there.

“Basically, a huge part of helping millennial employees,” he says, “is actually helping them figure out what they want to be.”

Jolt and Deutsch might be focusing on younger talent, but that seems like it would be true enough for companies looking to help develop employees of all ages.

Tackling Turnover at Taco Bell

As you might expect, labor is a huge deal for fast-food restaurants such as Taco Bell Corp.

Making sure stores are appropriately staffed with engaged workers is a top priority for the Irvine, Calif.-based firm, which has 830-company-owned outlets and 30,000 employees (nearly half of whom are 22 years old or younger).

As Taco Bell Vice President of People and Experience Bjorn Erland explained yesterday during a session titled “Taco Bell Enhances Its People Strategy with a New Analytics Recipe” at this week’s WorldatWork Total Rewards Conference and Exposition, controlling turnover is a major challenge for the firm.

During the Great Recession, Erland said, Taco Bell’s turnover rate decreased dramatically; but beginning in 2012, it began to rise again while engagement scores began to fall.

Leadership was hearing that pay was a major reason people were leaving. But in order to come up with the right game plan, HR knew it needed more data. So it brought in global consultancy Mercer to better understand the key drivers behind the high turnover and identify ways  to address it.

When it looked at why workers stuck around, Taco Bell, a unit of Yum! Brands, found that a flexible work environment and strong culture were major drivers. As to why people were leaving, factors such as a high level of stress, lack of training and better opportunities elsewhere emerged as a big contributors.

In an effort to better understand the part pay practices were playing, Mercer studied more than 500 company owned U.S. restaurants and 20,000 employees over a 13-month period.

“We looked at workforce factors such as starting pay, pay levels and bonus payments,” said Rick Guzzo, a partner in the Washington office of Mercer. “Then we looked at how long [people] were working at Taco Bell, their average age … and external factors such as store size and where the store was located.”

Well, the big “Aha!” for Taco Bell was learning that earnings were far more important to workers than their rate of pay. Were they working enough hours, including overtime, to bring home a bigger paycheck? (Erland noted that Taco Bell’s pay was competitive with others in the industry.)

In light of these finding, Erland said, the company began to increase its use of “slack hours” to increase the amount of employee take home pay. “Turnover improved when employees were able to bring home more earnings,” he said.

Indeed, the study found that employees who worked 100 hours or more a month were 71 percent more likely to stay than those working fewer hours. “This was eye opening. It’s not a guarantee, but it’s almost like a guarantee,” Erland said.

The research also found a strong correlation between poor store performance and regional general manager turnover.

“You can’t stabilize team-member turnover unless you stabilize the turnover above the restaurant [level: area coaches and RGMs],” Erland said.

Erland noted that 600 out of its 900 company owned store managers had new supervisors in 2015. “That’s just not normal,” he explained. “So we put in place a process in which the COO and I approve any area coach moves” and added “a bonus plan for area coaches that was tied to RGM stability.”

The other thing area coaches often did, he said, was take an RGM who was a superstar in an A store and put them in an F store to turn it around. “What you end up getting are two Cs,” he said. “So we told them don’t move them around; keep them at the A store and we’ll figure out the F store… . As a result, they didn’t move RGMs around much at all last year.”

Next year, Taco Bell is also looking to test the idea of applying variable pay to filling its late-night shifts. “It’s hard to get someone to come in at midnight and work until 4 in morning,” Erland said. “So we have to differentiate the pay [for those workers].”

Hours before Erland shared his story, Taco Bell issued a press release that announced the second stage of a partnership with Roadtrip Nation. The partnership highlights various career paths within the organization, in order to make it easier for current and future employees to match their job needs and goals with the firm’s career opportunities.

Stories of current employees and alumni are featured on the Roadtrip Nation platform, so both current and prospective employees can gain a better understand of what needs to be done in order to achieve their career goals, whether it’s managing a Taco Bell restaurant, working in the marketing department at headquarters or taking skills to another industry all together.

“The platform aims to foster networks and communities and empower team members by hearing about their lessons learned and career paths of others,” according to the press release.

One alumni interviewed and featured is Fred Mossler, former senior vice president of merchandising at Zappos and an entrepreneur. Mossler’s first job was cleaning dishes at Taco Bell, where he worked his way up to a supervisor.

Breaking Into the Boy’s Club

Whether it’s a result of not seeking out women workers or not being able to attract them, or a combination of factors, some fields remain heavily male-dominated.

Many of these same industries—construction, automotive and trucking, to name just three—are facing a worker shortage fueled in no small part by scores of retiring baby boomers.

It seems that at least some of these traditionally male-centric sectors are focusing more closely on female talent in an effort to fill the vacuum.

Earlier this month, for example, the Iron Workers Union and the Ironworker Management Progressive Action Cooperative Trust began offering a new paid maternity leave benefit to members.

According to a statement from the organization, it is “the first to introduce a generous paid maternity leave benefit in the building trades,” where adequate paid maternity leave is “virtually unheard of.”

The new policy includes six months of pre-delivery maximum benefit and six to eight weeks of post-delivery benefit, according to the union. In addition, members are eligible for up to six weeks of paid leave after the birth of the child and two additional weeks for Cesarean deliveries, regardless of what was covered pre-delivery.

The Washington Post recently detailed the new Iron Workers Union policy, noting that all baby boomers will be over the age of 65 by the year 2029, which means one-fifth of the U.S. population will have reached retirement age.

Iron Workers President Eric Dean feels that offering benefits such as paid maternity leave finds the organization well-positioned for the ongoing boomer exodus.

“The whole world is suffering the baby boomer retirement tsunami,” Dean told the Post. “All the construction trades are in competition for capable people. Wouldn’t it be a distinct advantage for us to be the first?”

These trades have other issues to contend with, of course.

The same article points out that “millennials, the workers who would replace [boomers], aren’t as interested in pursuing careers in the trades.” Enrollment in vocational education has dropped over the last three decades as well, according to the Post, adding that the current opioid epidemic “has zapped some of the male workforce, because men are more likely than women to both use and overdose on illicit drugs.”

Other fields with predominantly male workforces—such as the trucking and automotive technician sectors—see such factors draining their applicant pools as well.

“There’s a shortage of high-end, heavily trained individuals who can do diagnostic work,” Tony Molla, vice president of the Automotive Service Association, told the Post. “We’re graduating about 30,000 new technicians a year, mostly men, but that’s not enough to keep up with attrition.”

In response, automakers have been funneling more corporate sponsorships to groups that work to recruit female trainees, such as the Automotive Women’s Alliance Foundation and the Car Care Council Women’s Board, according to the paper. Meanwhile, some trucking companies have begun to hire “female driver liaisons” in addition to creating support groups geared toward female truckers, the Post reports.

Naturally, there’s no promise that these efforts will pay off in the form of more female workers in male-dominated industries. And there’s still the long-standing, problematic perception that women “aren’t cut out” for some work; a stigma that can be extremely difficult to shake for those who do pursue careers in certain fields. But there seems to be an acknowledgement in some corners that change is needed if these industries wish to survive, as Dean told the Post.

“We have to innovate,” he said, “if we want different results.”

Millennials on the Move?

For years, employers have been led to believe that millennial workers are habitual job-hoppers with one eye always on the door.

That perception—if it was ever accurate in the first place—might be increasingly off the mark.

Consider the 2017 Millennial Survey conducted by Deloitte. In a poll of roughly 8,000 millennial-age workers from 30 countries, 38 percent of respondents said they would leave their jobs within two years if given the opportunity. That number stood at 44 percent when Deloitte carried out the same survey last year. Additionally, 31 percent anticipate staying in their present roles beyond five years, compared to the 27 percent who said as much in 2016.

Some of the circumstances driving Generation Y to seek more stability in the workplace, it turns out, have little to do with work. For example, the survey sees the effects of terror attacks in Europe, the United Kingdom’s withdrawal from the European Union and—no surprise—a brutally contentious political climate in the United States leading millennials to cling more closely to the security of their current jobs.

Such matters are the main source of anxiety among millennials in mature markets such as France, Germany and the U.S. Meanwhile, a majority of Gen Y workers (58 percent) in emerging markets like Argentina, Brazil and India see crime and corruption as an even bigger threat, with 50 percent saying the same about hunger/healthcare/inequality.

“Millennials, especially those in mature European economies, have serious concerns about the directions in which their countries are going,” according to an executive summary of the findings. “They are particularly concerned about uncertainty arising from conflict, as well as other issues that include crime, corruption and unemployment.”

Indeed, the specter of unemployment lingers from past surveys, according to Deloitte, as this year’s poll finds 25 percent of millennials fearing the prospect of being out of work.

“Having lived through the ‘economic meltdown’ that began in 2008, and with high levels of youth unemployment continuing to be a feature of many economies, it is natural that millennials will continue to be concerned about the job market,” according to Deloitte.

Taken together, these factors are conspiring to create a real sense of fear among millennials, many of whom fret for their futures. In mature markets, for instance, just 36 percent of millennials predict they will be financially better off than their parents. Only 31 percent feel they’ll ultimately be happier.

“This pessimism is a reflection of how millennials’ personal concerns have shifted,” says Punit Renjen, Deloitte’s global CEO, in a statement. “Four years ago, climate change and resource scarcity were among millennials’ top concerns. This year, crime, corruption, war and political tensions are weighing on the minds of young professionals, which impacts both their personal and professional outlooks.”

Still, while many millennial workers question their ability to affect significant societal change on their own, these same employees feel they can make a difference with their employer’s help. The good news is that the corporate world is helping them do just that, with more than half of the millennials polled saying they are able to contribute to charities and worthwhile causes in their workplaces.

Of course, the organization also wins when employees get involved in such efforts.

“The survey’s findings suggest those given such opportunities show a greater level of loyalty to their employers, which is consistent with the connection we saw last year between loyalty and a company’s sense of purpose,” according to Jim Moffatt, Deloitte global consulting CEO.

“But, we are also seeing that purpose has benefits beyond retention. Those who have a chance to contribute are less pessimistic about their countries’ general social [and] political situations, and have a more positive opinion of business behavior.”

 

Overtime Rules and Flexible Work

The U.S. Department of Labor’s proposed overtime rules may or may not go into effect on Dec. 1 of this year.

But if the new regulations do become reality, large employers could face unintended and unanticipated consequences, according to new WorldatWork research.

The Scottsdale, Ariz.-based non-profit HR association’s recent Quick Survey on Implementation of New FLSA Rules survey polled 948 WorldatWork members with compensation and HR generalist in their titles.

When asked how they are addressing or plan to address employees that were exempt under the old overtime rules who fall below the new standard salary level threshold, 73 percent of employers said they did or will raise some to the new minimum threshold, while reclassifying others to non-exempt. (Fifteen percent indicated that they did or will raise all to the new minimum salary threshold and maintain exemption, while 9 percent intend to reclassify all to non-exempt, and 4 percent said they were unsure of their plans.)

Among those who plan to reclassify employees to non-exempt, 49 percent said their workplace flexibility options will decrease. The number of large organizations planning to go this route is “of particular concern,” according to a WorldatWork statement summarizing the findings.

For example, 62 percent of responding companies with 10,000 to 39,999 employers said they intend to reduce the flexibility options they offer workers.

“The fact that larger employers are more likely to decrease flexibility will obviously affect more employees,” says Kerry Chou, senior practice leader at WorldatWork. “That being said, this result could be a byproduct of the fact that larger organizations are more likely to have formalized flex programs as opposed to ad hoc programs.”

Naturally, the new rules figure to have a significant financial impact on employers, with 69 percent of respondents telling WorldatWork that their overall costs have already increased or will increase as a result of the new standard salary-level threshold. Just 13 percent said that net costs have stayed or will stay the same, and they won’t require taking separate actions such as reclassifying employees as non-exempt to contain costs.

Some employers may look at cutting flexible work options as one way to offset additional expenses connected to new overtime rules, says Chou, adding that workplace flexibility can be a big factor in recruiting and retaining talent.

As such, companies that choose to offer fewer flexible work options may ultimately see higher turnover and greater difficulty in attracting replacements for departing employees, he says.

“The increased cost of overtime compliance, coupled with high turnover—or at least lower job satisfaction of current workers—are consequences that will need to be addressed.”

Forget the Fancy Job Titles

Employees walking around with titles like “chief happiness officer” and “product evangelist” are expected to be exuberant, enthusiastic proponents of a company’s internal and external brand.

And they could very well be crazy about the companies they work for. But they might not be so keen on such creative, “non-traditional” job titles, which a fair number of workers apparently don’t find all that endearing or even accurate.

A quarter of employees, to be exact, don’t care for using exotic monikers to describe their positions, according to a new survey from Spherion Staffing.

The Atlanta-based recruiting and staffing provider’s most recent WorkSphere survey found that 25 percent of employees consider “non-traditional” job titles unprofessional, and are against the idea of being christened with one. Nearly as many (23 percent) feel that flowery designations don’t capture what they actually do in their jobs. That said, 14 percent of employees who favor more tried-and-true titles believe they too could use improvement, saying that labels such as “project manager” and “specialist” are too vague.

Overall, 42 percent of workers said their current titles—be they old-fashioned or more “outside the box”—don’t really reflect their roles and responsibilities.

Regardless of what appears on their business cards, an overwhelming majority of employees expressed confidence in their ability to describe their jobs in a way that’s easy to understand. Eighty-nine percent of those polled said they would have no issues delivering an “elevator speech” that highlights their duties.

Those that don’t have such an easy time encapsulating what they do every day might struggle with summing up the complexities of their roles. Close to one-third (31 percent) of employees polled said their job or industry is too specialized to easily explain to a layperson. Twenty-nine percent said they try to avoid using work jargon in everyday conversation.

According to the survey, employees struggling to articulate their responsibilities may be making things harder than they have to be. Overall, 53 percent indicated they give different accounts of their jobs, depending on the audience. In addition, 11 percent said they sometimes lie about what they do for a living.

Whatever they tell others about their vocation, “employees take great pride in their job titles, and in some cases, a title that is considered limiting or hard to describe can significantly impact their job satisfaction,” says Sandy Mazur, Spherion division president, in a statement.

Faced with growing pressure to recruit and retain top workers, “reexamining how different titles are perceived and applied can make a big difference in building morale,” says Mazur, “and positioning a company as a favorable place to work.”

 

What Drives Retention Rates?

Around the world, pay matters most to workers. But other factors that keep them loyal vary quite a lot, a new study finds. And they’re changing as the nature of work evolves.

The results are part of the 2016 Global Talent Management and Rewards Survey by Willis Towers Watson. Every other year the company surveys workers around the globe to see what rewards and conditions keep them happy or attract them to new jobs.

This year’s survey, conducted in April and May, included 31,000 employees in 29 markets. In studying retention factors, the London-based consulting firm ranked eight countries, including the United States. (See the full results at the bottom of this post.)

Pay was the top priority in each, says Laura Sejen, managing director for talent and rewards at Willis Towers Watson.  After that, the No. 2 retention driver in most countries, including the U.S., was career advancement opportunities.

For multinational companies, those two factors are fundamental to attracting and retaining workers, Sejen says. Workers want clear expectations not only for their current job, but also for what they need to move up.

For a global employer, “If I could only do two things right, I would focus on those,” Sejen says.

Career advancement opportunities wasn’t the No. 2 retention driver everywhere, however. In China it was the physical work environment. In Brazil it was the length of the commute. In India it was job security.

Sejen notes that work environment has been moving up in the list of priorities globally. She thinks longer hours and a trend toward open offices and shared workspaces may have increased employee awareness of the physical environment as a factor in their job satisfaction.

“That, I think, is just a reflection of how the work environment has changed,” Sejen says. “It’s important. We spend a lot of time at work.”

Among the eight countries studied, job security was No. 2 only in India. But it’s slowly rising in importance around the world, Sejen says.

How workers define job security varies, however. Few workers expect a job for life. But many worry about losing financial security, and others worry about their jobs changing.

Sometimes mundane local conditions like traffic congestion influence the rankings. It makes sense that commute times would be important in Brazil, because cities there tend to be dense, sprawling and challenging to navigate, Sejen notes. “If you’ve ever been to Sao Paulo, you can appreciate that.”

Retention drivers Globally Brazil Canada China Germany India Mexico U.K. U.S.
Base pay/salary 1 1 1 1 1 1 1 1 1
Career advancement opportunities 2 3 2 3 2 3 2 2 2
Physical work environment 3 4 2 5 3
Job security 4 7 3 3 2 6 3 3
Work-related stress 5 6 4 5 6 7
Trust in senior leadership 6 5 4 4
Relationship with supervisor 7 5 7 7 6 7
Length of commute 2 4 4 4 5 6
Retirement benefits 6 6 4 5
Flexible work environments 5
Challenging work 6
Opportunity to learn new skills 7 7 7 5
Source: 2016 Global Talent Management and Rewards Survey by Willis Towers Watson

Don’t Forget About Boomers

It’s easy to get caught up in how to attract and retain the millennials and members of Generation Z who will comprise the overwhelming majority of the workforce before too long.

Then there are the Gen Xers to consider—so crucial to your success today, as they settle into vital management roles within the organization.

But what about baby boomers?

We all know that boomers are hitting retirement age, but many are staying on the job. Much has been made of how companies will replace the knowledge and experience that boomers will take with them when they do leave the workforce, but a new survey from the Futurestep division of Korn Ferry looks at what this generation is bringing to the business now, and what motivates these employees most.

The poll asked more than 1,300 global executives to evaluate the role of baby boomers in their organizations. More than half (55 percent) of respondents said that boomers were willing to work longer hours than other generations, and were considered the second-most productive cohort, after Generation X.

Naturally, these seasoned employees require little hand-holding on the job, with 31 percent of executives saying boomers need less feedback than their younger colleagues, “demonstrating how boomers are also seen as reliable, in addition to hardworking,” according to a Korn Ferry Futurestep statement.

How do these dedicated workers find fulfillment on the job? Fifty-four percent of executives said that offering boomers the opportunity to make an impact on the business was the best way to retain boomer talent.

“This far outstrips the ambition of other generations, with just over a quarter (28 percent) of executives surveyed indicating that making an impact at work was the key motivator for millennials,” according to Korn Ferry Futurestep, “highlighting just how integral baby boomers are to businesses today.”

Most companies recognize as much, of course, and are eager to take advantage of boomers’ wealth of knowledge, with 50 percent considering “experience and expertise” as the main reason for bringing them into the business.

Once boomers are on board, how do you retain them?

It’s not necessarily money. Just 6 percent of respondents cited regular pay raises and promotions as the best way to retain boomers in their organizations. No, as previously noted, 54 percent of respondents said boomers most value the opportunity to make an impact, followed by “creating a culture that aligns with their values,” at 22 percent, management responsibilities (10 percent) and work/life balance (8 percent).

“While many in the baby boomer generation are working longer to provide more financial security after seeing their retirement account balances tumble during the Great Recession, their desire to extend their careers is not entirely financially motivated,” says Jeanne MacDonald, president of global talent acquisition solutions at Korn Ferry Futurestep.

“What is often overlooked is the fact that the majority of the people in this generation are highly motivated, enjoy what they do, and they provide great experience and value within the global workforce.”