We've Known This Was Coming — What Do You Do Now?

A number of companies have been keeping a close eye on recent events and attitudes surrounding job satisfaction and the activities of employed workers who are beginning to explore other work possibilities.

Tracking changes in employee satisfaction and the job-hunting activity level for the fully employed helps predict the amount of "employment churn" that may lie ahead as the job market improves.

For some time we have been predicting that a "musical chairs" of sorts would take place within the HR community for HR jobs, but the concept applies across the enterprise for nearly all positions and levels. Typically some leave to improve their situations and then others follow suit not to be left behind. Have you detected the possibility of this queuing up in your business?

It has happened before following the collapse of "bubbles", and while the overall national job picture won't be improved by the churn, in terms of new jobs added, it definitely will put significant pressure on companies required to replace top performers and others looking for better opportunities.

The question is not will there be churn — but rather how prepared are you for it when it hits your organization?

First it is important to understand today what may be coming in terms of future losses and do what you can to prevent them. Keeping the lines of communications open, inviting feedback, talking with employees and understanding what they are thinking can prevent surprises and minimize unexpected departures.

During uncertain times organizations often pull back and communicate little, rather than opening up and ensuring employees know how the business is doing, demonstrating concern for their well-being and helping them get through it. Not sharing information can lead to employee dissatisfaction and a perception that the company doesn't value them — the perfect catalyst of "churn." Determining what employees need to remain engaged, dedicated and contributing and trying to meet those needs can significantly impact satisfaction ratings.

In any case — some moves between jobs and companies are going to take place as employment conditions improve and possibly sooner than many anticipate. With that as a possibility here are some thoughts to keep in mind.

• Ultimately regular fulltime hiring of replacements will be on the rise, but before merely replacing talent you've lost, be sure that the skills you are about to bring on board are what you need to be successful today, as your business or customer needs may have shifted during the down time; determine whether resources are required in the short term or indefinitely.
• Continued uncertainty about business levels makes turning to contract talent first a viable option and a hedge against volatile business volumes and fluctuating customer needs in the near term.
• Contract-to-hire approaches not only help with uncertainty but they provide an excellent opportunity for both the talent and business to experience each other's work and style before regular hiring decisions are discussed.
• Encourage retention and satisfaction among those you still have by considering promotions of current, top performers into vacancies and hiring to replace at the lower level.
• Review your compensation strategy. Most employees have understood past needs to reduce overhead expense, but improving conditions will change expectations. Effectively communicating on this subject is critical.
• Consider getting help reviewing resumes, screening the best candidates and helping make sound hiring decisions through firms that specialize in contract employment staff including, recruiters, screening specialists and interviewers to save you both time and money.

If you have any questions about options available for dealing with churn or making flexible staffing approaches work for you, call us at 925-867-4400 or 408-501-8863. Or send us an email to share your experiences with these issues. We'd be happy to hear from you.

The reality is that most HR professionals have fewer resources available to meet increasing expectations. Contact us — we can help!