Human Capital IQ Timely news and information on employee benefit and human resources issues Deloitte Benchmarking Survey Employee Retention Strategies in Challenging Economy

Economic Overview from Participants’ View %38 of participants’ stock prices has been declined by at least 20 percent %47 of participants had experienced a drop in earnings per share %63 of participants’ most or all of the stock option grants they have made were “underwater”. %58 of participants’ expect their annaul intensive plan to pay out below target Current Year Last Year Last 5 Years More than 150 companies have participated in the “retention strategies during the survey”

Companies must care keeping their best talent to help them survive the current crisis and emerge as stronger companies when conditions improve. Employee Retention Strategies in Challenging Economy %11 of participants would not yield a bonus at all for 2008 because of economic conditions. %40 of participants has already implemented a retention program. %33 of participants has indicated they might implement a retention program in the future.

Reasons for implementing a retention program Reasons companies gave; ranged form staying competitive to improving employee morale.

Size of discretionary bonus pool (as a percent of the annual incentive plan target award) %62 of participants’ bonus pools will be funded at %25 or less. Stand-alone bonus pools to reward high performing employees and business units, is popular approach.

Company consideration on implementing or expanding any other workforce programs to help retain employees Most of the surveyed companies are considering implementing or expending a variety of programs and arrangements designed to improve work environment. Retention is not only about money!