The unemployment rate is down and wages are up. But that’s not necessarily good news for a lot of employers, many of which are struggling to attract and retain qualified workers.

A new global survey from London-based Willis Towers Watson of 2,000 companies around the world found that more than half say that hiring has increased over the past year, compared to only 14 percent that say it has decreased.

What is troubling, however, is the 37 percent that say turnover increased, compared to only 16 percent that say it dropped.

Many employers that haven’t reported increased turnover are nevertheless seeing the effects of a tight labor market on recruiting, because about half of them say they are having difficulty attracting quality workers. Roughly a third say they are having a hard time keeping top-notch employees in their ranks.

Responses from employees show why many employers are coming up short. Only 41 percent say their company was doing a good job at providing opportunities for them to advance. A large percentage of employers recognize they are not doing enough on that front, since only 58 percent rated themselves well on providing career advancement opportunities.

“Employers may be painting a more bullish picture on career advancement opportunities than their employees perceive,” says Laura Sejen, managing director of Talent and Rewards for Willis Towers Watson, in a press release.

“In many cases, employers’ positive view on these opportunities may be a reflection of an improving economy rather than better career management practices. Given the high percentage of employees who say they need to leave their current employer to advance their career, there is a clear misalignment between employers and employees on this question.”

Interestingly, fewer than half of employees say they would be willing to leave their organization to advance their careers, suggesting that a large percentage of workers cherish other factors about their job besides how it fits into their career track. Job security, for instance, is a top priority; it was the second most-cited reason for taking a job.

The survey also found that only a third of employees are “highly engaged,” a figure that is subsequently explained by the fact that only 45 percent of workers say they have a high level of trust or confidence in their superiors.

Instant Insights /

Tight labor market brings challenges for recruitment

More From HR Executive

Related Stories

Recommended For You