My Prediction for 2010

My Prediction for 2010

I believe that as the economy turns and the job market heats up (I have already seen signs of this happening), there will be a significant uptick in turnover in companies, much higher than what we have seen in recent years.  Companies that will suffer most are those that have cut into the bone and therefore their employees have been doing the work of 2, 3 and more of their former colleagues.  These employees are tired, burned out and over-worked.  They feel under-appreciated and under-valued. The exec teams didn’t walk the walk.  Even if employees were satisfied before, they want a change and a new, fresh start.  Average leadership of the past didn’t impact retention, but this will become a very different story. 

A friend of mine recently met with an HR leader who was working with a nationally recognized out-placement firm.  My friend was coming in to talk to the recently displaced workers about social media and how it can help them in their job search.  She was doing this partly as a business development opportunity (she’s a career coach) and partly at the request of a friend of hers in this same company.  The HR leader told my friend that she didn’t actually care if and when the displaced workers found a job and that is wasn’t her problem.  The only reason she was using outplacement was to mitigate liability for the company.  Now, I didn’t just fall off of the turnip truck.  I know that this is one of the primary reasons that companies use outplacement firms.  But, for this HR leader to say this out loud, publically and in front of both her team and an external person, is shocking and unprofessional to say the least.  It goes to the heart of the fact that this company is not employee oriented, isn’t on the top companies to work for list, and isn’t likely to win any awards in this area anytime soon.  They can expect significant turnover in an up market.  The cost to the business will be significant. 

I read an article recently (written by Shaun Rein- What Sets Great Leaders Apart) that compared the NY Times to the Beth Israel Medical Center in Boston and how the leadership handled the downturn.  Bottom line is that the NY Times laid people off and asked for and received major concessions from their employees, while the top execs, gave themselves significant pay raises.  The exec team at Beth Israel all took pay cuts in order to save jobs and in doing so, will have created loyalty and good will.  I don’t think it takes a rocket scientist to figure out who will keep their best people, attract the best talent, and keep the turnover numbers low in the coming months and years.  Here’s to Beth Israel!  Kudos to the exec team!!

About annspoor
Ann Spoor is the Jerry McGuire to Corporate Executives and Professionals. She is an Executive Talent Agent, Executive Coach, Career Manager, Executive Branding Expert, and Social Media Coach. Ann lives in Denver with her husband Mark and their 2 kids. The Leadership Lattice is an interview series conducted by Ann Spoor CEO & Founder of Executive Lattice. The series focuses on Leadership in the private & public sector. Please subscribe to this blog to follow along in the discussion.

One Response to My Prediction for 2010

  1. annspoor says:

    The WSJ recently wrote about the uptick in resignations, validating this prediction. Cool!

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