Retention on the radar for employers in May

Talent retention and increasing staff numbers are the focus of white-collar employers in May, according to the latest Michael Page Employment Index.

More than half of companies surveyed planned to hire new staff in May, an increase of 9% from April. Only 2% of companies anticipated reducing staff numbers, which suggests growing employer confidence in business recovery and growth.

New hires in May are primarily mid-level professionals in front line functions such as sales (52%), followed by operational functions such as purchasing and supply chain (23%). This reinforces the positive intention to win new business and increase market share.

With this renewed focus on business growth, employers are recognising the importance of keeping their best people to lead them through the upturn. 76% of respondents expressed concern over staff retention, with 65% confirming they would be increasing staff salary levels during the 2010 calendar year as a strategy to retain their workers.

A key challenge for employers will be in managing the costs associated with talent retention. To build a sustainable foundation for growth, companies will need to strike the right balance between the pursuit of increased market share and the associated labour costs.