Preparing Today For The Future Scarce Labor Market - Retaining Current Employees, Part 1

This is the first of a series of four articles addressing strategies for setting up your business for success in 2010

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There are four overriding strategies that we will develop in these articles: 1) Retaining current employees, 2) Attracting new employees, 3) Optimizing employee performance, and 4) Sustaining high levels of performance.

With the unemployment rate at 10.2 percent in October 2009, on the surface, retaining current employees doesnt appear to qualify as a key overriding strategy for 2010; however, the unemployment rate, which is a lagging indicator, dropped to 10% in November 2009.

In addition, a host of economic indicators provide compelling empirical data that the devastating economic conditions of 2009 and the resulting high unemployment are starting to trend toward a reasonable level. After enduring over 700,000 job losses per month during the peak months of 2009, job loss has appeared to bottom out with 11,000 job loses in November 2009.

As the economy continues to improve, job recovery will begin to reduce the unemployment rate toward a more normal 5%. This increase in job demand will create new employment opportunities for Americas workforce. This alone, is not particularly troubling, but combined with a frustrated, overworked, underappreciated and underpaid workforce, it is highly likely that some of our best employees will leave their current employment in search of greener pastures!

Before you say, this doesnt apply to me because my employees are happy, consider this: in the Power of Recognition, Doug Bender wrote;

A New York Times study revealed that 25% of employees reported being driven to tears in the workplace

50% of those individuals called their place of work a place of verbal abuse and yelling

30% say that they are regularly given unrealistic deadlines

50% indicate that they have to work 12 hour days just to get all the work done

The Harvard business review estimates preseenteeism (present at work, but not actively working) costs in the United States are $150 billion annually

The Gallup organization has conducted studies that say, as much as 30% of the average workforce is actively disengaged. That means these employees are not working to fulfill the organizations agenda, but rather their own.

As a human resources consulting firm working with commercial companies, public agencies, Federal government, municipalities and non-profits; the empirical data supports these study findings. In employee surveys, exit interviews, training courses and informal conversations during other employee interactions, we are constantly reminded by Americas workforce and, how frustrated and unhappy they are with their work environment.

Given this level of frustration and unhappiness, there is a pent up demand among many of our current employees to change jobs. Taking the leap is only held back by the abysmal economic climate. As the economy recovers, the flood gates will open.

This combined with the retirement of the baby-boomers, the aging workforce, and a shortage of highly skilled workers will reward employers that retain and leverage their current workforce, which should be your primary objective in 2010. But how do you accomplish this? By maintaining a viably business, understanding the needs of your workforce and addressing, as best you can, their concerns.

The 2009 employee job satisfaction Survey Report conducted by the Society for Human Resource Management, indicated the top reasons for employee job satisfaction of the 26 reasons surveyed were:

1.Job security

2.Benefits

3.Compensation

4.Opportunities to use skills and abilities

5.Personal safety while performing their job

6.Relationship with immediate supervisor

Our research at Onyx Global HR indicates:

The top reasons for seeking alternative employment were;

1.Retirement

2.Health reasons

3.Personal reasons

4.Job dissatisfaction

5.Relocating from area

6.Lack of personal development

Top reasons for job dissatisfaction include:

1.Ineffective senior management leadership

2.Irregular hours

3.Unrealistic performance expectations

4.Unrealistic workload

5.Issues with my immediate supervisor

Below are specific objectives you should consider to retain your current employees during our 2010 economic recovery.

Survey your workforce to determine what is or is not working for them

Conduct exit interviews to receive candid feedback on organization performance

Feedback the results of the above to your workforce and communicate your plans to address any issues

Review your performance management systems and compensation levels

Review your employee job classifications. Are employees properly categorized as exempt or non-exempt?

Review your organizations vision, mission and goals to ensure appropriateness and alignment with lower level goals

Review your workloads and ensure the work being performed is absolutely required and aligned with the mission

Consider a more flexible work schedule, including telecommuting

Develop creative ways to keep retirement aged workers in your workforce at lower costs e.g., job sharing or telecommuting

Develop manager and supervisory employee relations skills

Address workforce conflict and individual performance issues

In the power of recognition, Doug Bender wrote; Only 4% of 90,000 applicants annually at Southwest Airlines are actually hired. That's only 3,600 lucky people! What makes Southwest Airlines so popular that 90,000 people would choose to compete for 3,600 jobs? I contend that Southwest Airlines is a great place to work. Implementing the recommendations above will place your organization on a similar track.

by: Onyx Global HR

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