Changes in hiring and job-seeking behaviours are pointing to flashes of activity in the economy. Yet with downsizing a major focus in 2009, employers might not be able to take full advantage of growth opportunities.
The concerns come from Sydney-based recruitment expert Simon Boulton, director of Aequalis Consulting, and also from Hudson's latest HR Insights report. "Compared with May, in July we've noticed a 60% increase in employer vacancies. At the same time, the number of candidates seeking work through Aequalis has been consistent - but it's people in jobs seeking jobs. Six months ago, employees were too cautious to move," Boulton said.
Hudson's HR Insights report, released last week following a survey of 4,930 employers, indicated that the major concern for organisations is the anticipated exodus of leaders from organisations. The report warned that organisations must have a sound plan in place to ensure a continuity of available, engaged people.
"Organisations must prepare for the departure of key leadership talent when the employment market improves with a sound succession plan and an external talent pipeline," said Simon Moylan, general manager of Hudson Talent Management
Well over half of employers surveyed (60%) said they have no strategy in place to recruit leaders with the competencies required to lead through adverse and challenging economic times.
"It's clear that organisations need to adjust the definitions and emphasis of their leadership recruitment profiles to suit the changed operating environment," said Moylan. "Now is the time to not only provide existing leaders with support, but also to identify, retain and develop organisational leadership capability."
Boulton added that these behavioural changes are a major concern, as recent statistics show that while the main focus for employers in 2009 has been downsizing staff, employees are now disgruntled.
An Aequalis survey of 220 employers earlier this year showed that 72% planned to take advantage of the current market and replace underperforming or sub-par staff members in 2009.
This month, however, an Aequalis survey of 280 job-seekers showed that 45% now lack trust in senior management, 62% are experiencing lower morale, and only 22% have said they are not moving at the first signs of an economic recovery.
"Many employers have taken advantage of the economic conditions, but at what cost?" Boulton said. "Human capital is key to a business's ability to grow, yet it's clear a significant number of existing staff are not happy."
Boulton recommended that employers start reassessing their HR strategies, as greater demand for skills will accompany the thawing of hiring conditions in the market. "Changes in sentiment are among the first signs of changes in economic conditions. Our results show that businesses are at risk of losing their core people - and top performers can be the first to seek work elsewhere. If employers don't have their core people in place, maximising opportunity through an upswing will be significantly more challenging."
Boulton predicts that many employees may be looking to move in January - traditionally a time when many seek change, and as the market is at its height in the first half of the year. "Often these quick shifts lead to a 'herd mentality', and the delicate balance of job seekers and vacancies may well begin to swing the other way," he said.