Two out of three members of senior management believe retention of key talent is a top concern, and 83 percent say it is very costly, according to the Retention of Key Talent and the Role of Reward study by WorldatWork; Hay Group; and Dow Scott, a professor of human resources at Loyola University Chicago.   

"Talent wars are going to become intense, not just this year but for at least a decade because jobs are becoming more complex and demanding, baby boomers are retiring and Generation X has far fewer people who can fill this gap, and other countries are retaining their most talented people with great job opportunities of their own," Scott says.

Respondents also note that the primary reason key talent quits is to earn higher pay. Other reasons include few promotional opportunities, the view that pay is unfair, and unhappiness with job and work responsibilities.