subject: The Cost of the Economy on Your Employee Turnover [print this page] The current economy has seen a huge drop in the number of roles available to job-seekers. As a result, more people are staying within their current roles. But, what is going to happen when the number of roles available does increase?
The answer is massive loss of talent for some organisations. The loss of key people will not make things any easier for organisations. Which is why NOW is the time to start thinking about when the economy picks up and how this will affect your business.
Those organisations who have maintained, or even improved, levels of motivation and engagement recently will be the winners in the employment battle. These organisations will keep hold of the people that make their business what it is, who strive to perform to their highest ability and who generate large amounts of revenue for their employer. They will also build reputation to attract the highest level of talent into their organisation and away from their competitors. They will emerge strongest from the economic downturn with heads held high and workplaces seeping over with high potential and talented individuals.
Those who have disengaged their employees through the downturn, who have seen a drop in morale levels and who have ignored the views of their employees will be left behind. There will be massive talent flight from the organisation, and a drop in reputation leading to lack of new talent in.
Now is the time to be thinking about how your organisation has moved through the downturn. Have you communicated effectively with your employees throughout? Have you been open and honest about the effect the downturn has had on the organisation? Have you kept your employees in the loop at all times? Do you know the views of your employees and how the downturn is affecting them? Have you dealt with any issues that have arisen quickly and effectively? Have you ensured that development has continued, despite budget slashing? Have you maintained a work/life balance for your employees? Have you managed difficulties, such as redundancies or pay freezes, effectively to minimise the effect on employee morale? Have you created an environment of fun and enjoyment?
If you have answered no to any of the above, you need to overcome this, and quickly. Talk to your employees. Run a survey to find out their views. You may find they differ completely from your expectations. Create actions to overcome issues and negative responses. Deal with these quickly and effectively. Discuss ways forward with all employees and gain their future commitment to you by outlining how you see the business moving forward with them. Note changes in employee turnover and address these issues immediately, such as through the use of exit surveys, to outline the reasons people have for leaving the organisation.
If the issue of low morale, motivation and engagement is not addressed now, you may find your organisation being left behind when the upturn comes.
