Making the Most of the Static Job Market
While media and government attention has rightly been focused on people who have lost their jobs and are unable to find work in the current economy, the job market has also had the impact of decreasing satisfaction among those who have so far retained their jobs.
People with jobs in most industries have witnessed layoffs happen around them. They are likely grateful that they have been spared, so far, but can’t be certain that they won’t be next. This creates a sense of anxiety that can spread like a bad cold through an office. As soon as one person starts updating his résumé, the rest of the office is not far behind. In addition, while the workforce has shrunk considerably, the amount of work to be done, in most industries, has not decreased in equal proportions. This means that the employees who remain are often asked to take on additional duties and responsibilities while retaining the same paycheck, leading to a disconnect between the rewards that person is receiving and what she might think her contribution is worth.
Adding to all of this is employees’ decreased mobility in a bad job market. When times are good, talented employees have options. They can interview with other companies, negotiate salaries and benefits and move on when they feel undervalued. At the moment, there is very little for these employees to move on to. Salaries are stagnant across industries and job seekers have significantly less bargaining power when there are 100 other talented workers vying for the same position. All of this means that unsatisfied employees are staying put.
This last element can be looked at as yet another downside to the poor job market, but it may also be the key to improving worklife. Employee turnover is actually a bad thing. It is bad for employers who have to spend resources finding and training new employees, it is a bad thing for work environments as people are less invested in each other when they don’t believe the relationship will last for long, and it is a bad thing for individual employees who frequently leave jobs and therefore never get the chance to maintain a real connection to a workplace.
The question is, how can employers capitalize on this hopefully temporary reprieve from the threat of turnover, and can they do it in such a way as to decrease turnover when employees have more options? One answer surely lies in reinforcing employees’ perception of their value to their employers while decreasing uncertainty about the future of individual employees and the company. The current job market makes employees feel expendable. People know that their jobs could be filled at the drop of the hat, so it is essential to convey the sentiment that managers and executives care about employees as individuals. While monetary rewards are hard to come by these days, it is important that businesses do not forget about decency and fairness. The more that employers can acknowledge the contributions of their employees and cultivate them when times are tough, instead of only when they are competing for talented workers, the more likely it is that people will stay when they are given the choice to move on.
Subscribe to this comment's feedwritten by a guest , January 26, 2010
Thanks for your insight on the impact of satisfaction. Productivity certainly does not diminish in importance in a slow economy. Quite the opposite. We have to help companies find their business case for supporting employees effectively.
written by a guest , January 26, 2010
You are so right, unsatisfied employees are staying put and they are impacting their companies bottom line in more ways than one. In my experience employees that are not satisfied now were probably not satisfied before the economic downturn. They just weren't as motivated to move on because the job was good enough. Now that they are being asked to do more with less that dissatisfaction has only grown deeper.
Keeping turnover low is just as important in good times as it is in bad times. Filling seats with bodies is not going to get the job done. And looking the other way when performance slips along with satisfaction hurts the employee, the team, the company and the customers. It's up to the leaders in the organization to make sure they have the right people in the right place at the right time. Only then are they prepared to take on the challenges facing their business.
written by a guest , January 26, 2010
Thanks for this excellent point. The cost to employers and to their customers of unnecessary turnover is an important element in building a business case to build a high quality worklife.
written by a guest , January 26, 2010
"The more that employers can acknowledge the contributions of their employees and cultivate them when times are tough, instead of only when they are competing for talented workers, the more likely it is that people will stay when they are given the choice to move on."
Well said. I've seen figures recently that indicate that 60% of American workers are keen to move jobs, and just waiting for an upturn to implement. Whilst I haven't seen comparative info for the UK or Europe, I do wonder whether massive churn - and indeed the cost of it to businesses - will be a force in making companies change their mindset on the value of their people.
