The war for talent may be taking a ceasefire during the recession, but it is possible that many employees will jump ship as soon as the economy turns and companies begin to hire again. A survey by the Swiss outsourcing firm Adecco found that more than half (54 percent) of employed adults reported they are at least somewhat likely to look for new jobs once the economy turns around.
"Every company's greatest asset, its human capital, might be its most tenuous, as employers could see an unprecedented exodus of talent when the job market rebounds," states the report. Tig Gilliam, CEO for Adecco North America, cautioned employers to take greater pains to understand what motivates people to keep or change jobs.
Dennis and Michelle Reina address this question in their forthcoming book Rebuilding Trust in the Workplace: Seven Steps to Renew Confidence, Commitment, and Energy. "As the economy begins to turn around and the job market improves," says Dennis Reina, "there are a lot of employees who are going to jump ship unless their leaders take a very proactive approach in rebuilding trust and renewal with the people in their organizations."
The war for talent may be taking a ceasefire during the recession, but it is possible that many employees will jump ship as soon as the economy turns and companies begin to hire again. A survey by the Swiss outsourcing firm Adecco found that more than half (54 percent) of employed adults reported they are at least somewhat likely to look for new jobs once the economy turns around.
"Every company's greatest asset, its human capital, might be its most tenuous, as employers could see an unprecedented exodus of talent when the job market rebounds," states the report. Tig Gilliam, CEO for Adecco North America, cautioned employers to take greater pains to understand what motivates people to keep or change jobs.
Dennis and Michelle Reina address this question in their forthcoming book Rebuilding Trust in the Workplace: Seven Steps to Renew Confidence, Commitment, and Energy. "As the economy begins to turn around and the job market improves," says Dennis Reina, "there are a lot of employees who are going to jump ship unless their leaders take a very proactive approach in rebuilding trust and renewal with the people in their organizations."
Departure by the numbers
A 2008 study by Achieve Global found that one in four U.S. employees expects to leave his job within a year. The study found that in the United States and Asia, employees younger than 25 and those on the front lines of business were the most likely to leave, followed by women and midlevel workers. Additionally, managers in Asia reported challenges in retaining midlevel managers.
And it gets worse. Two surveys by Deloitte Consulting confirm a disturbing gap between what employees want such that they remain in their jobs, and what corporate leaders think that they want. A May 2009 survey of executives and talent managers showed that many were already forging ahead with new workforce plans and strategies to keep top talent on board. But an October 2009 report, "Keeping Your Team Intact: A Special Report on Talent Retention," suggests that employees who kept their jobs through rounds of layoffs may be poised for flight. Nearly half of the employees surveyed by Deloitte are either looking for a new job or plan to do so after the recession ends. Thirty percent are already actively seeking new jobs.
Based on a global survey of 368 employees at large organizations (those with annual revenues of more than $500 million), the responses revealed that Generation X employees were the least likely to stick around, but only 9 percent of executives expected voluntary turnover to increase for this group. When asked to rank their top three retention tactics, in every instance, employees of all four generational groups chose different, nonfinancial incentives from those chosen by corporate leaders.
Jeff Schwartz, a principal at Deloitte Consulting, said, "We believe that leaders can minimize the disparity by first understanding what their employees really want and then realigning their retention strategies and tactics to match employee priorities. Those who succeed will be more likely to retain their high-potential employees and hit the ground running as the economy recovers."
Tom Rath, head of the workplace research and leadership consulting practice at the Gallup Organization, which surveys millions of employed people, sees a different picture. "There are probably some employees who are waiting to jump ship, but I don't know if that number is as high as some are speculating," he says. "We've been tracking employee engagement for quite a while, and we haven't seen a major change."
Gallup data shows that employed people have not recently felt as though they have many opportunities for learning and growth in their jobs; however, this is balanced by feelings that they have received more recognition and praise than they did before the downturn. "The thing we've learned from studying work groups over the years is that people leave their managers and their local work groups, not the company," says Rath. "If a manager isn't paying attention, that's probably the worst-case scenario right now."
Why leave now?
Employees are poised to leave for several reasons related to the recession, according to various sources. Some were caught in jobs they no longer wanted, but the poor job market kept them from moving. Others survived rounds of layoffs only to pick up more and more work from departing colleagues. Many of these survivors are experiencing stress-related burnout. Still other employees have become disillusioned by the way their companies treated employees during the recession. Quietly, they have withdrawn their trust and are searching for kinder, gentler employers.
The Wharton School's Peter Cappelli noted in a May interview with the Wall Street Journal, "There will be a lot of people, as soon as the job market tightens up, who are looking to get out. There are a bunch of people who will be disappointed by the behavior of their employers during this downturn - employers who didn't take care of their employees and made it increasingly clear that they were just treating them like pieces of meat."
Philip Anderson, professor of entrepreneurship and academic director at Insead's Abu Dhabi Centre, says, "Retaining existing talent [will be a bigger task] because a lot of people are staying in jobs or firms that don't fit them. They are staying for lack of alternatives, not because they love what they do and feel committed to the people they work with. Once hiring picks up, employers who are not committed to managing and developing people well will suddenly lose a lot of employees all at once."
Meanwhile, companies are mounting retention strategies geared toward keeping key talent from defecting. Some are familiar - offer competitive salaries and benefits, provide opportunities for career growth other than promotions, and help employees achieve better work-life balance.
Some firms are betting that keeping employees engaged in the company and its postrecession future will create stronger ties. MasterCard, for example, formed a task force to gather ideas for new products and services from all its employees, not just the top tier. In a companywide webinar in July, leaders unveiled ideas for new directions. Most were from the employees.
Other companies are setting more realistic targets for factors that determine bonuses, in the hope that employees will stay motivated and loyal. Home Depot, hit hard by the housing market crash and the recession, lowered sales and profit targets that hourly employees had to meet to receive bonuses. A record number of employees received bonuses during the first half of 2008.
At the same time, companies realize they may benefit from a massive game of musical chairs and are set to pounce on exceptional talent when the recession ends. Kevin Coyne, an Atlanta-based consultant, advises, "Look to upgrade your talent rather than just fill empty spots." As a defense against poachers, some companies have set aside funds to help retain people they don't want to lose.
Dennis Reina lays the responsibility for keeping trust alive at the feet of leaders. "The new leadership imperative is rebuilding trust - trust that is crushed by a major event or betrayal, or, more often, eroded by a series of minor betrayals in the workplace. Before a leader can help others, she has to take responsibility for self-healing."
Thinking ahead
Whether a company hopes to grab new talent or keep its stars from bolting, now is the time to pay close attention to a few key points. Make sure you have a talent management plan that maps out the skills needed for success and shows where there are gaps. Test assumptions that leaders may have about what motivates employees, paying special attention to differences among generations. Make sure that managers maintain good relationships with employees. Know who your stars are, and decide what you are prepared to do to keep them. Lastly, be ready for your best-laid plans to be confounded by the unexpected.
A 2008 study by Achieve Global found that one in four U.S. employees expects to leave his job within a year. The study found that in the United States and Asia, employees younger than 25 and those on the front lines of business were the most likely to leave, followed by women and midlevel workers. Additionally, managers in Asia reported challenges in retaining midlevel managers.
And it gets worse. Two surveys by Deloitte Consulting confirm a disturbing gap between what employees want such that they remain in their jobs, and what corporate leaders think that they want. A May 2009 survey of executives and talent managers showed that many were already forging ahead with new workforce plans and strategies to keep top talent on board. But an October 2009 report, "Keeping Your Team Intact: A Special Report on Talent Retention," suggests that employees who kept their jobs through rounds of layoffs may be poised for flight. Nearly half of the employees surveyed by Deloitte are either looking for a new job or plan to do so after the recession ends. Thirty percent are already actively seeking new jobs.
Based on a global survey of 368 employees at large organizations (those with annual revenues of more than $500 million), the responses revealed that Generation X employees were the least likely to stick around, but only 9 percent of executives expected voluntary turnover to increase for this group. When asked to rank their top three retention tactics, in every instance, employees of all four generational groups chose different, nonfinancial incentives from those chosen by corporate leaders.
Jeff Schwartz, a principal at Deloitte Consulting, said, "We believe that leaders can minimize the disparity by first understanding what their employees really want and then realigning their retention strategies and tactics to match employee priorities. Those who succeed will be more likely to retain their high-potential employees and hit the ground running as the economy recovers."
Tom Rath, head of the workplace research and leadership consulting practice at the Gallup Organization, which surveys millions of employed people, sees a different picture. "There are probably some employees who are waiting to jump ship, but I don't know if that number is as high as some are speculating," he says. "We've been tracking employee engagement for quite a while, and we haven't seen a major change."
Gallup data shows that employed people have not recently felt as though they have many opportunities for learning and growth in their jobs; however, this is balanced by feelings that they have received more recognition and praise than they did before the downturn. "The thing we've learned from studying work groups over the years is that people leave their managers and their local work groups, not the company," says Rath. "If a manager isn't paying attention, that's probably the worst-case scenario right now."
Why leave now?
Employees are poised to leave for several reasons related to the recession, according to various sources. Some were caught in jobs they no longer wanted, but the poor job market kept them from moving. Others survived rounds of layoffs only to pick up more and more work from departing colleagues. Many of these survivors are experiencing stress-related burnout. Still other employees have become disillusioned by the way their companies treated employees during the recession. Quietly, they have withdrawn their trust and are searching for kinder, gentler employers.
The Wharton School's Peter Cappelli noted in a May interview with the Wall Street Journal, "There will be a lot of people, as soon as the job market tightens up, who are looking to get out. There are a bunch of people who will be disappointed by the behavior of their employers during this downturn - employers who didn't take care of their employees and made it increasingly clear that they were just treating them like pieces of meat."
Philip Anderson, professor of entrepreneurship and academic director at Insead's Abu Dhabi Centre, says, "Retaining existing talent [will be a bigger task] because a lot of people are staying in jobs or firms that don't fit them. They are staying for lack of alternatives, not because they love what they do and feel committed to the people they work with. Once hiring picks up, employers who are not committed to managing and developing people well will suddenly lose a lot of employees all at once."
Meanwhile, companies are mounting retention strategies geared toward keeping key talent from defecting. Some are familiar - offer competitive salaries and benefits, provide opportunities for career growth other than promotions, and help employees achieve better work-life balance.
Some firms are betting that keeping employees engaged in the company and its postrecession future will create stronger ties. MasterCard, for example, formed a task force to gather ideas for new products and services from all its employees, not just the top tier. In a companywide webinar in July, leaders unveiled ideas for new directions. Most were from the employees.
Other companies are setting more realistic targets for factors that determine bonuses, in the hope that employees will stay motivated and loyal. Home Depot, hit hard by the housing market crash and the recession, lowered sales and profit targets that hourly employees had to meet to receive bonuses. A record number of employees received bonuses during the first half of 2008.
At the same time, companies realize they may benefit from a massive game of musical chairs and are set to pounce on exceptional talent when the recession ends. Kevin Coyne, an Atlanta-based consultant, advises, "Look to upgrade your talent rather than just fill empty spots." As a defense against poachers, some companies have set aside funds to help retain people they don't want to lose.
Dennis Reina lays the responsibility for keeping trust alive at the feet of leaders. "The new leadership imperative is rebuilding trust - trust that is crushed by a major event or betrayal, or, more often, eroded by a series of minor betrayals in the workplace. Before a leader can help others, she has to take responsibility for self-healing."
Thinking ahead
Whether a company hopes to grab new talent or keep its stars from bolting, now is the time to pay close attention to a few key points. Make sure you have a talent management plan that maps out the skills needed for success and shows where there are gaps. Test assumptions that leaders may have about what motivates employees, paying special attention to differences among generations. Make sure that managers maintain good relationships with employees. Know who your stars are, and decide what you are prepared to do to keep them. Lastly, be ready for your best-laid plans to be confounded by the unexpected.