The employment deal — the shared commitment between employee and employer — has evolved in recent years. The reasons for this evolution differ between developed and emerging economies, but all regions share a common challenge: Employee engagement is declining.

Whereas the traditional deal in developed countries such as the U.S. was characterized by lifetime employment, dependable benefits and steady promotions, the newer version offers less job security but promises critical elements of talent management, such as career development, learning opportunities and performance management. With the onset of the economic crisis in 2008, however, employers have been strained to deliver on these promises. Meanwhile, in rapidly developing economies such as Brazil, Russia, India and China, increased demand for talent and limited supply have resulted in widespread employee attrition and employers’ increased emphasis on retention.

Mercer’s “What’s Working” survey, published in June, provides insight into employee attitudes on the employment relationship in 17 countries. The survey, which includes nearly 30,000 employees worldwide, reveals workers are considering leaving their employers, and in no small number. Thirty-two percent of U.S. workers and 36 percent of Canadian workers are seriously considering leaving their organizations. North America is not alone. In Europe, one-third of the U.K. and German workforces are also considering leaving. In Mexico, the number increases to half of all employees. These findings indicate the global workforce is growing less engaged and less committed.

Global Differences in What Employees Value
Talent management programs and practices, such as career development, training and development and performance management, are components of the employment deal across regions. The degree to which these programs are valued, however, differs from country to country. In North America, Asia and Europe, “type of work” is a highly valued element of the deal. Career advancement is the most-valued element in countries such as Brazil, China and India, according to the survey. In some countries, certain aspects of talent management are not as highly valued as rewards, benefits or even employer reputation. Base pay, for example, is the most-valued element in well-developed countries such as Australia, Canada, France, Germany, the U.K. and the U.S.