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As many employees return from their summer break this week, a new survey from Chandler Macleod Group (CMG) has revealed a contrast between business optimism and employee disillusionment post GFC.
According to CMG's Post GFC Candidate Study Report, there is an underlying lack of trust among those surveyed towards their employers. A good proportion of those who stayed and endured tough times feel they were not sufficiently supported and are now tired and disillusioned. As a result, businesses need to be careful not to lose critical talent as the post-GFC environment unfolds in 2010, particularly as numerous organisations' workforces have already been cut through to the muscle.
CMG's survey of over 930 candidates reveals that 95% are looking for work, of which 73% are actively looking and 22% are passive or open to offers, with most candidates (57%) optimistic they will find a role in the next three months (32% of which are very optimistic).
David Reynolds, executive general manager consulting for CMG (pictured), said a number of employers are likely to see a mass exodus of staff in February or early March as businesses look to secure good talent unsettled by current pressures and expectations of their current role following the downturn. There is also likely to be a second round of job departures towards the end of April or early May.
"The fact that 72% of candidates are looking for work outside their current (or most recent) industry and 62% are looking for work outside their current specialty will come as a shock to many employers and reflects, in part, the level of disengagement experienced by many employees. Now the crisis is easing there is a perception the job market has improved and employees are looking for opportunities that better suit their needs," he said.
"When the GFC hit most organisations were completely unprepared and simply went into survival mode - many failed to show leadership and concern for their employees because they didn't know what to do.
"As their employees return to work in January, I strongly counsel employers to talk openly with their workforce. What used to work in terms of employee engagement and motivation many not work anymore and, therefore, it's vital to speak with individuals to understand what drives them and what they need to be productive as well as the career development and reward systems that will work best post GFC," Reynolds said.
He added: "Roles, organisations and industries have changed. As a starting point businesses should identify their key talent. Also, clarity of roles will be essential to ensure employees are comfortable with their working arrangements. Equally, providing the necessary skills and training and adequate succession planning will add to the long-term success of the business."
Top reasons given by candidates for seeking new jobs were limited career opportunities (41%), feeling undervalued (24%) and losing faith in the current organisation (18%). These are all issues that employers can easily address through communication to minimise staff turnover.
One important way that employers can re-engage their workforce is to revisit and revise their Employer Value Proposition (EVP) and rewards and recognition programs so they better address the new motivations and goals of the employees and the business.
The most important characteristics candidates are looking for in a new role are: job security (91%); and work-life balance (86%). Overseas posting opportunities (25%) and bonus structure (48%) are the least likely to be rated as important.
CMG's executive general manager professional & executive recruitment, Peter Gleeson, said employees may not fully appreciate the long-term ramifications the GFC has had on the workplace.
"The GFC was a catalyst for change in workforce composition, which was also prompted by new industrial relations laws. What we are seeing is an increase in freelance and temporary roles and a slow decline in permanent positions over the next two to three years. I see this as permanent, and something to which employees will need to acclimatise.
"For instance, job security is now seen as an important role characteristic for candidates following the GFC though this was more common in the 50s, 60s and 70s. However, businesses are looking at alternative ways of constructing their workforce, such as part-time and contracting, which will be at odds with this employee need for security," he said.
Gleeson suggests the definition of job security needs to change beyond full-time employment with one employer to include full-time and part-time contracting, starting a consultancy and working part-time across a multitude of employers and freelancing.
"Flexibility, up-skilling and specialising will be key to making employees attractive to employers and this is what will provide the new kind of job security in this work environment," Gleeson said.
The report reflected a growing trend towards flexibility in candidates, with 88% stating the current economic environment had forced them to be more flexible and less selective in the roles for which they apply.
Re-engaging the workforce
The brutal economic downturn has prompted more companies to create what is being referred to as 'just-in-time labour forces' that can be turned on and off like a tap. The consequence of 'just-in-time labour' however is that companies can wind up with an alienated, dispirited workforce.
CMG has identified critical steps companies need to address to re-engage employees and minimise staff turnover in early 2010:
- Communicate where the company has been, where it is going and how employees fit within this plan
- Assess the skills needed to grow your workforce now and beyond recovery
- Identify what sills you have in your workforce and where the talent gaps are and what talent you will need to attract - talent skills mapping is critical at this time
- Identify at risk roles and employees that may be considering leaving
- Develop talent attraction strategy, including revisiting the organisation's culture to ensure it aligns not only with the revised business strategy but also the type of talent you are retaining and attracting
- Learn what motivates your employees and what their future goals are
- Reconfirm career development and employee engagement strategies
- It is easier to retain than recruit - identify and develop key talent and future leaders internally
- Revisit and articulate the EVP in line with the changing values and needs of the employee and the company
- Revisit and update succession planning strategies
- Be open and transparent about staffing needs and career development capability