The most recent turnover information from the U.S. Bureau of Labor Statistics is very telling. As the economy continues to run at a new normal, employers need to be aware of a wide range of factors waiting to sabotage productivity.
One of the most startling stories is the proportion of Quits to Layoffs & Discharges. Back in October of 2009, a full 50% of private sector separations were due to Layoffs & Discharges, with 42% attributed to Quits. For October 2010, those figures had flipped almost completely: 50% of separations where due to Quits and 43% were due to Layoffs & Discharges. In other words, the exodus has begun. People know they have new opportunities, and they are leaving the employers who have kept them captive for the last few years.
Exhaustion — Many companies took advantage of the economy to preemptively cut labor costs by reducing staff more dramatically than business required. In many cases across the country, remaining employees were left with a greater workload than before, with fewer acknowledgments of the need for work-life balance. In addition, fear of losing a job during a recession drove many employees to be less assertive in insisting upon reasonable work limits.
Pay & Disillusionment — Citing reduced profits, companies around the country froze pay rates and halted promotions. While in many cases these actions kept companies afloat, it was the rare organization that asserted with management the need to ensure employees continued to be recognized and commended for their work. In many cases, the tenor of management during these rough years has seemed more corrective than appreciative.
Retirement — In the years leading up to the recession, fears abounded regarding an impending shortage of qualified workers. But better health, longer lives, and less physically demanding jobs plus a major hit to retirement funds thanks to the recession have delayed the much anticipated mass exodus from the workplace. But improvements in the stock market as well as an improved job market for family members (spouses and children) that Baby Boomers have been supporting, individuals who delayed leaving work will again start to plan to retire soon, leaving gaps in staff as well as in knowledge.
Return-to-Home Parents — One surprise group of “heroes” who kept families afloat during the recession was the At-Home Parents set. Many at-home moms and dads dusted off their resumes and returned to the workforce as their spouses and partners were laid off or were forced to accept reduced hours or salaries. Some of these newly re-engaged employees may happily remain in the workforce going forward. However, in many cases, before the recession these families considered a number of factors — salary being only one of many — to decide which adult would remain at home with the children, and as the original working spouse or partner becomes able to support the family again, the original at-home parent may return to his or her preferred place of work: the home.
The coming return to a solid economy is positive, without question. The unemployment rate will start to go back down as jobs become available, and then the upward spiral — the antithesis of the downward spiral of the last couple of years — will begin. Those who are employed and who are more secure will spend more money, creating greater demand, thus prompting companies to produce more products and provide more services. The greater work volume will require more staff, driving up job openings, creating more employment opportunities and more security for those who are employed. And yet, companies that have taken advantage of their employees over the past few years should be concerned. Their challenges — in the form of voluntary turnover — are only just beginning.
Adapted from a post at ERE. Click here to read the original article.
This is a very interesting story, a must-read for every employer who does not know the trends.
Posted by: Brad Fallon | January 20, 2011 at 06:12 PM