UK businesses are losing rising stars because HR directors are out of touch with what motivates ambitious young executives, according to new research. Nearly three quarters of the 690 younger ‘career orientated’ executives polled said they now expected a pay rise every year, whilst two thirds claimed that financial reward is now the top motivator. However, just 15% of HR professionals also surveyed believed that financial reward was a key motivator. It’s unsurprising given the mismatch in ideas that 75% admitted that their businesses had lost at least five talented staff members in 2005. “HR executives should reconsider their strategy to attract and retain the top talent of the future,” says Suzannah Chapple, Chapple Director. “Allowing for a more flexible approach when considering financial reward, such as variable pay and bonus schemes, should be central, although organisations should ensure that any salary increase will be matched by that individual’s potential performance.”