Despite a fragile economic recovery, employers are designing incentives to keep top-notch talent from jumping ship, but those efforts may fall short of employees’ expectations, reports Deloitte Consulting.

Based on 2009 surveys of employers and employees, the research report, “Keeping Your Team Intact: A Special Report on Talent Retention,” suggests that there is a disconnect between what employees want and what executives think employees want concerning retention incentives. 

Consequently, employers need to reevaluate their turnover-intentions strategies for key employees if they intend to hold on to those workers amid an economic recovery. The report’s authors explain that failure to do so will result in a “resume tsunami” by employees who held on to their jobs in tough times.

For example, 49% of employees surveyed in August 2009 are either looking for a new job or plan to do so after the recession ends, while 39% are already actively seeking new employers, according to the report. Generation X is least likely to stay with their current employer (37%), as compared to Generation Y (44%) and Baby Boomers (50%).

The report also notes that Generation X workers have the highest turnover intentions, but only 9% of corporate leaders said they expected voluntary turnover intentions to jump significantly among Generation X in the 12 months following the recession.

“Our research confirms to us the tale of two mindsets when it comes to employer perceptions and employee turnover intentions in today's economy,” says Jeff Schwartz, principal, Deloitte Consulting LLP. “We believe leaders can minimize the disparity by first understanding what their employees really want and then realigning their retention strategies and tactics to match employee priorities. Those that succeed will be more likely to retain their high-potential employees and hit the ground running as the economy recovers,” he adds.

Other key findings from the report included:

• While corporate leaders surveyed ranked "excessive workload" second among barriers to retaining employees, surveyed employees ranked it tenth overall; in fact, no demographic group ranked it higher than ninth. “Lack of job security” far outranked other factors that might cause surveyed employees to shift jobs.

• Although employees ranked “lack of trust in leadership” sixth at 20% when asked what factors could induce them to leave their jobs after the recession ends, surveyed corporate leaders rated "lack of trust in leadership" 10th at only 12%.

• Corporate leaders and Generation X employees ranked “additional bonuses or financial incentives” as the most effective retention tactic. However, by a range of 48% to 37%, Generation X workers gave this tactic higher priority than surveyed corporate leaders.

• Only 40% of Baby Boomers chose “additional bonuses or financial incentives,” whereas only 30% of surveyed corporate leaders made the same choice.