Are You Ready for the Return of a Job-Seekers Market?
From Business and Legal Reports

Happy days are – almost – here again…so how do you prepare?

After long last, it appears as if the economy might, just possibly, be at the smallest beginnings of an upswing. And although the job market doesn’t seem to be following that gradual climb as of yet, it’s bound to happen eventually. And a booming job market spells trouble for employers used to the current employer-favored climate, where hundreds of workers jockey for each open position, and employed workers are relieved to have any job at all. Such a competitive market, in such tight economic times, has led in some cases to employee neglect and some employers have been all but forced by the poor economy to cut benefits or forego raises. In turn, employee loyalty has all but been eliminated. Many employees have one eye on the door, waiting for the first opportunity to bid you adieu. So what will you do when jobs are once again plentiful…and your top talent bolts for another employer?

The one thing you can’t do is ignore the problem. Human resources professionals believe the employment revival will start within the next six to twelve months, according to a new Job Recovery Survey conducted by the Society of Human Resources Management (SHRM) and CareerJournal.com, part of The Wall Street Journal. And according to the survey results, HR professionals and their employees have vastly different views on what will happen when the job market expands. Only 12 percent of HR professionals polled felt that it was "extremely likely" that voluntary turnover would increase in their workplace. In fact, one in ten HR professionals reported that it was "extremely unlikely" that their organization’s voluntary turnover would increase once the job market picked up. In contrast, 64 percent of employees responding to the survey stated that it was "extremely likely" that they would begin or increase the intensity of their job search, and another 19 percent said that they would be "somewhat likely" to do so.

The survey then asked employees who stated that they were extremely or somewhat likely to begin/intensify a job search why they would want to leave their current job. The number one reason (53 percent) was for better compensation and benefits, a not unexpected result. However, 35 percent of employee respondents indicated that they were dissatisfied with their current potential career development, and 32 percent said they were ready for a new experience.

Don’t panic! There is a solution!
This wide difference in perception between HR personnel and employees may spell trouble for overly optimistic employers, blind to the potential mass migration ahead. But how can employers lay the groundwork for retaining talented employees now, and avoid waving them goodbye in a year’s time? Interestingly, the survey notes that the top three reasons employees are planning on beginning a job search – compensation and benefits, dissatisfaction with development opportunities, and readiness for a new experience – can be addressed by employers now. While increasing salaries or adding costly benefits may not be an option for some employers during this slow growth period, other, more creative solutions may do the trick. Employers and HR personnel should think concretely about the needs of their particular workers, and think creatively about how to meet those needs. Often, a little effort can go a long way to making employees feel valued and appreciated – which in turn might make an employee a little less eager to leave the company once the economy picks up.

It’s not all about the money
It may be surprising to many employers, but it’s not only money and benefits that keep employees happy, hardworking, and loyal. A positive and open work environment can be the key to retaining your workforce. Clear channels of communication, interesting work, growth opportunities, and a general sense of respect, appreciation, and support are other important – and too often overlooked – ways to retain good workers. Too often employees are only noticed when they do a poor job or make a mistake. Taking the opportunity to regularly recognize an employee’s good work, successful initiative, or positive attitude can help lay the foundation for long-term loyalty. After all, if an employer can make an employee feel like an integral part of the company when times are hard, it’ll be that much more difficult for the employee to leave once the job market is booming.

More tangible options include allowing flextime schedules, providing tuition reimbursement or other educational opportunities, "pizza days," where the company picks up the tab, or enacting a more generous vacation day policy. It may take a little creativity and a lot of thought, but when your employees choose to stick with you once the job market improves, it will be worth the effort.

The Job Recovery Survey was conducted in July 2003 by SHRM and CareerJournal.com via e-mail and a website pop-up. To find out more, visit http://www.shrm.org, or http://www.CareerJournal.com.