Separate the sheep from the goats in 2010!

After reading the results of some recent surveys, I recommend you act quickly and do the same with your staff. The first survey looked at the effect the GFC has had on staff retention. Not surprisingly, almost all organisations have seen a dramatic decrease in their staff turnover percentages with most recording their lowest level in years. But while there may be some instances where this decline is a result of strong Human Resource and Retention strategies, it is more likely due to the way disgruntled staff have reacted to the GFC. A poll of over 1000 candidates who said they were unhappy with their current workplace and were interested in finding another job, revealed that over two-thirds (69%) had decided 2009 was not the year to leave and gamble a start with a new employer. Instead despite being unhappy, they have been “staying put” waiting until they felt secure enough with the economy before going out and looking for a job.  With Australia being the fist major country to have increasing interest rate hikes, many candidates think the worst is now over and they view post Christmas and the New Year as a time when the GFC will well and truly be a thing of the past. 

Another survey out earlier this month shares a similar warning. It talks of the after effect of the GFC where companies have had staff freezes, decreased working hours and redundancies. Those that remained and survived have generally had to take on an increased work load or needed to work harder to meet management expectations. They had often seen colleagues retrenched and witnessed  morale (and in some cases positive talk from senior management) drop to all time lows. That Australian survey showed that 75% of staff believe that “adjustments need to be made to recognise and reward those that have been forced to take on more responsibility over the last 12 months”. The Sydney Sun Herald November 15 reiterates that with the headline “It’s time to ask for a pay rise” suggesting that the economy has now bounced back, the bleak jobs outlook has ended and staff should be rewarded for the hardships they have endured during the GFC. 

A third unrelated survey (released October 28) showed “a record jump in employer confidence” due to a record rise in the number of employers expecting to increase staff numbers over the next quarter. The percentage of Australian companies that have said they are expecting to hire staff after Christmas is at an all time high. On top of that we have the likes of Gerry Harvey declaring “Our sales this year are going to be an absolute record, this is going to be the biggest Christmas we have ever had, we are going to break all records". 

So what does it all mean for you and your business? It is highly likely that a large percentage of your workforce may currently feel a bit neglected, not properly recognised and inadequately rewarded   having put in (or at least thought they put in) a big effort during the tough times in 2009. There may also be a large contingent who have put up with things throughout the year who would normally have resigned or would have been active in the job market but are waiting until early 2010 to make a move. What happens when you add to this the predictions of companies having their biggest Christmas ever and the record number of companies who will be hiring for new staff next quarter? The short answer is that the opportunities for your staff to be tempted and in fact targeted to enter the job market will be plentiful (and maybe also a record)! 

We all know the Christmas period is hectic with further strains and pressures on you and your staff, but now is the time to separate the sheep from the goats.  Ensure that your executive team all know who the superstars in your organisation are. Also visualize your solid performers who underpin your company culture and day to day success. Most importantly make time over the next eight weeks to give all of them a pat on the back. Tell them loud and clear that they are part of the company’s plans for 2010. Tell them that their efforts throughout the last year are very much appreciated and that they will be rewarded (financially, promotionally and by personal development) as the economy continues to improve.  

Finally, be ready for a spike in resignations (hopefully only from the “ordinary” members of your team). Take time to review your succession plans and retention strategies. Also ensure that your choice of recruitment partner and sourcing practices enable you to replace those leaving with superior talent, resulting in a continuing upgrading of  the “average calibre” of your company.