In the September edition of Forbes Insights, research suggests that as the recovery continues, many corporate senior leaders may be blindsided by an unparalled employee exodus in their respective firms. Many of these leaders have misread the high retention rates during the recession as a sign of employee satisfaction. The truer picture is that large numbers of employees are dissatisfied and disillusioned by the bottom line, maximization of profit over people, short-term thinking demonstrated by many corporate leaders during the recession. In a period where employees lack employment options, time will reveal that many are biding time silently until economic recovery is in full gear.
This will be particularly true among GenX and Gen Y employees. Why? Because they place a premium upon working in corporate environments that stress non-financial incentives to engage them. While all three of the most prevelent generations in today’s workforce (Boomers, Xer’s, and Yer’s) indicate that compensation is the highest priority for remaining in their current companies, both Xer’s and Yer’s stated other priorities that ranked closely behind in importance. Their four highest priorities were the need for strong leadership, job security, effective leader communication during the recession, and providing them with growth and advancement opportunities. In other words, employees noted a desire for their leaders to invest in their own development and to provide an environment of respect through communication, and long-term people growth opportunities.
As a leader, are you skeptical of these findings? Consider then Forbes reported that 49% of all employees surveyed are considering bolting from their jobs when the talent market heats up. An astounding 76% of these potential company changers reported low morale (They don’t dare tell their boss.) as the reason why they intend to leave their compnay while 62% cited dissillusionment in how their leaders’ communicated poorly with them during the recession as their prevailing reason for leaving.
While corporate leaders have struggled to walk the fine balance between corporate profitability and maintaining long term commitment to their people, the fact is that many leaders have won short term profitability while cutting so deeply that they have lost the trust of their people. The bill for that type of thinking is about to come due! It will be an expensive lesson for some!
To minimize the fallout of the “resume tsunami”, corporate leaders should begin prioritizing investment into development opportunities for their employees and paying very close attention to understanding issues creating plummeting morale AND THEN AGGRESSIVELY FIX THEM. THE TIME TO DO THIS IS NOW! Waiting until the company has returned to more normal levels of profitability will be too little too late! Remember an undeniable law of leadership: If leaders see their people as expendable resources, in time they will make themselves expendable. If leaders show deep value in their people, those people will value their leaders. Take care of your people and they will take care of you!! It’s all about the people!!
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