As the job market improves and applicants grow pickier, companies need to work extra hard to retain the workers they have, and pay and benefits won't do it alone. Several recent surveys indicate that employers looking for that extra special something to attract and retain top talent need to place greater emphasis on work-life fit.

According to Mercer's 2012 Attraction and Retention Survey, more than 40% of organizations are expanding their overall workforce in 2012, compared to just 27% in 2010. Moreover, fewer organizations today are making selected reductions to their workforce (16% versus 25%, respectively) than two years ago. Yet, despite this positive news, almost twice as many organizations today are reporting reduced levels of employee engagement, compared to two years ago (24% versus 13%, respectively).

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