Johannesburg — IN the next five years, 45% of today's top managers will have died or retired. Even if that estimate turns out to be exaggerated, it's a sobering thought for companies plotting a succession plan. Especially when they are dealing with a generation of workers nothing like the previous generation.

The job-for-life mentality and loyalty to the company no longer apply, says Bryan Hattingh, MD of leadership consultancy Cycan.

He says companies must devise innovative ways to attract and retain staff. A salary survey by online publisher ITWeb says IT professionals are earning 29% more than a year ago as a skills shortage places them in great demand. Other sectors are short of skills too, and lessons drawn from the IT sector apply equally elsewhere.

There is actually plenty of talent available, Hattingh says, but those people are employed elsewhere. That makes good pay essential, as people generally consider switching jobs for a 15% pay rise. But attracting and retaining quality involves more than a fat salary.

"People coming up the ranks today are different from the people you were hiring years ago. They think and see the world differently. Company loyalty has gone; we live in a world that's quite mercenary."

Devising a remuneration and lifestyle package is a tricky balance, he says. Share options designed to lock people in often attract the wrong type who stay for the wrong reasons. "What keeps people and attracts them is who you are as a leadership team, the type of lifestyle inside the business, and how passionate and innovative you are in what you deliver to the market."

Hattingh dismisses 95% of companies' hiring practices as rubbish. Instead of seeing the recruitment process as a necessary evil, they should build their brand as an employer of choice. "It's not about the people you hire, it's about the people you don't hire." If a company does not get back to candidates after an interview or takes three weeks to give a response, the candidate tells their friends and colleagues about that poor experience, affecting the perception of the firm.

"Companies need to create an awareness of themselves as an employer of choice. Go big: run full-page adverts to get the message out to people about what's different and why these jobs are particularly challenging or exciting."

When it comes to bonuses, he urges companies to break the rules. A fixed-percentage bonus is inappropriate when European research shows that top software developers are 12 times more productive than average developers.