Staff retention is not any easier during recession
July 27, 2009
Due to the uncertainty surrounding the economy, and therefore job security and the labour market, it is likely that employees are not as mobile as usual in most organisations. Some employers may be thinking that they don’t have to worry about staff retention at the moment because there aren’t as many opportunities out in the wider world to entice their employees away, and the relative security they can offer their employees versus another job they may move on to will help to keep people at the company whilst the uncertainty over the economic stability of the country continues.
However, whilst the flow of employees into and out of the company may be slower than usual just now, employers need to be warned that if they do not keep their eye on employee retention issues, the outward flow may suddenly turn into a torrent once the economy improves and the labour market frees up again. When this will happen, nobody knows for sure, but what is certain that it will eventually take place and the last thing companies need when they are emerging from economic instability and getting ready to take advantage of improved market conditions, is a mass exodus of their most talented staff. This is certain to happen if employers become too complacent with their approach to staff retention. On top of this, despite the labour market being slow at the moment, there are still jobs available, and if your employees really want to move on now, the really talented ones; the ones you really want to retain; will be able to find a new position even in the recession.
Recent CIPD research, carried out on 3,000 employees found that 34% of respondents would ideally like to change jobs, although most were planning to stay put for the near future due to difficulties in the labour market. Many people involved in the survey, which was carried out by YouGov, were actually planning to change sector or career altogether once the economic crisis ends. An advisor from the CIPD said:
“the poor state of the labour market is acting like a dam holding back the normal flow of talent”
Employers that wish to keep their staff during and after the recession must continue to listen to the needs, ideas and concerns of their workforce through formal and informal consultation methods, and line management has a massive role in maintaining the loyalty, commitment and enthusiasm of their teams through assisting them in working towards career goals and development needs. Loyalty is a two-way street and employees need to know that they have a bright future with the company, otherwise they will pursue other avenues to achieve their aspirations and find job satisfaction.
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