As seen on Mainebiz
 Labor
pains
Star performers are eyeing greener pastures in the budding economic
turnaround
By Rick Dacri
Advice Squad is written by members of the Maine
chapter of the Association for Consulting Expertise, a trade
organization of 88 consultants around the state. This issue's column is
written by Rick Dacri, owner of Dacri & Associates and a
management consultant and author of the book "Uncomplicating
Management: Focus On Your Stars & Your Company Will Soar."
Here comes the recovery. Employment, sales and
capital expenditures are expected to increase over the next six months,
according to the Business Roundtable survey. CEOs of the nation's
leading companies expressed economic optimism in the CEO Economic
Outlook survey. The national unemployment rate dropped from 9% to 8.9%
in February, the lowest level in two years, while Maine's rate in
January held steady at 7.5%.
Some 80% of the CEOs in the Roundtable survey
expect their company's sales to increase and 45% expect more hiring in
the next six months. While we aren't in the clear yet, there is reason
for optimism. All signs point to a strengthening economy, though growth
will be slow.
Yet not all this news is promising for employers.
As some employees gain confidence in an improving economy, many others
will bail in 2011. Frustrated at cuts in pay and benefits, watching
fellow employees lose their jobs, and fatigued due to working more with
less will push workers to begin searching for better jobs. At the same
time, external recruiters will target employers' star performers for
poaching. As business improves, key staff will be in high demand, and
those who are unprotected and unappreciated will be vulnerable and open
to a recruiter's pitch.
The news about employees is alarming. A recent
CareerBuilder.com survey paints a disturbing picture: 20% of
respondents plan to quit their job this year; 25% are dissatisfied with
their current career advancement and training opportunities; 90% are
unhappy about not getting pay increases; and 23% rate their bosses as
poor. While last year most employees were simply happy to have a job,
the tide has turned. Workers now believe they have options and plan to
make their feelings known by walking.
So what should Maine employers do to protect their
work force? If one-fifth of them plan to quit this year — and you can
bet the best workers will find new opportunities elsewhere — then
employers must take steps now.
Taking action It's time to mend fences. The
downturn required tough economic decisions. Many employers moved
quickly into survival mode and made moves that badly hurt their
workers. Some took a slash-and-burn approach to protect their bottom
line, not thinking about its impact on their work force. Those who did
will likely suffer the consequences. On the other hand, those who took
a strategic approach, focused on surviving the downturn while managing
and preserving their work force and positioning themselves for the
future, will find themselves in a strong position.
A group of Lewiston-Auburn employers told me that,
though affected by the recession, they used the time to position their
companies for recovery. They emphasized three themes: 1) the need for
flexibility; 2) the urgency of improving efficiency while eliminating
waste; and 3) the importance of a well-trained work force. They talked
repeatedly about keeping their operations and employees agile to
respond to a changing environment and demanding customers. That meant
investing heavily in their work force — in training, communicating and
recruiting the top talent that became available during the downturn.
As other organizations cut costs and people while
hanging on until the recovery set in, those Lewiston-Auburn executives
took advantage of the downturn, gaining new customers and upgrading
talent. The recession was hard on everyone, but, as one executive told
me, "We are a better company because of it."
Employers must take steps now to retain their star
performers. Workers consistently report that they want to work for
employers who offer competitive pay and benefits; good career
advancement opportunities; a positive work culture; and a company that
is stable and growing. In that same CareerBuilder survey, employees
said they also want flexible work arrangements; a sense of ownership in
their positions so they can make a difference; and camaraderie, where
they can enjoy a family-like work environment.
Focus on your best employees. Tell them they are
important to you and your organization. That will be a powerful
conversation and one most employees never experience in their careers.
Retaining workers requires meeting their specific needs. It also means
managers must develop a management style that inspires respect, loyalty
and appreciation. Employees quit bosses, not jobs.
Turnover does not have to happen. Strategies
focused on growing the business while taking care of your employees
will ensure that 2011 is a good year. Your success is dependent on an
engaged work force.
There is reason to feel confident. Employers and
employees, working together, can feel optimistic again.
Dacri is the president and founder of Dacri
& Associates.
Rick Dacri is a management consultant and author
of the book "Uncomplicating
Management: Focus On Your Stars & Your Company Will
Soar." He can be reached at 207-967-0837, rick@dacri.com.
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