As the economy shows signs of recovery, majority of American companies are turning their

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focus to attract and retain top talent, a report says.

According to the survey of 201 US employers by HR consulting Watson Wyatt, about 65 per cent of them are more concerned about the retention of top-performing employees than they were before the economic crisis hit.

Looking ahead three to five years, half (50 per cent) of the employers expect an increase in difficulty in attracting critical-skill employees, and 55 per cent expect an increase in difficulty in retaining talent.

The survey revealed that 44 per cent of employers have encouraged managers to make greater use of recognition plans. However, only 8 per cent of these employers have seen managers actually increase their use of these plans to a significant or great extent. “However, recognition programmes that keep employees engaged and motivated can create a key competitive advantage,” Watson Wyatt strategic rewards leader (US) Laurie Bienstock said.

Besides, the report found that 54 per cent of the employers who have frozen salaries plan to unfreeze them within the next six months. While, 49 per cent of the employers who have ceased hiring plans to hire more within six months.

“The general economic picture right now is definitely brighter than it was just a few months ago,” Watson Wyatt strategic rewards global director Laura Sejen said. “However, most employers aren’t fully convinced that the improvements they’ve seen are here to stay. While, many plan to hire workers over the next few months, they remain concerned about their ability to attract and retain the right people,” Sejen added.

The companies who are expecting to make offers to new hires, 83 per cent would recruit professional, non-managerial staff, followed by 71 per cent for director, manager or middle management positions. Only 47 per cent would be hiring for senior management or executive level positions.

However, about one-fifth still anticipate making layoffs in the remainder of 2009 or in 2010.