More and more companies are reducing the amount of dollars spent on relocating employees. This coupled with the poor housing market, impacting the ability for employees to sell their home has created the lowest number of relocations in recent history.
The problem impacts a company’s ability to staff and develop talent as it hopes to grow and recover. Internal development is hindered and in lieu of internal moves, high potential employees will seek developmental moves outside of their current employer. Talent normally recruited on a broad, nation-wide basis is especially impacted.
The job market is expected to continue the pattern of slow but sustained growth however if the housing market does not improve, the inability of employees to relocate will become a major obstacle to talent development and possibly job creation.
Percentage of Job Seekers Relocating
1986 – 2010
|
Q1 |
Q2 |
Q3 |
Q4 |
ANN AVG |
| 1986 |
45.0% |
43.0% |
40.0% |
39.0% |
41.8% |
| 1987 |
37.0% |
32.0% |
34.0% |
35.0% |
34.5% |
| 1998 |
37.0% |
36.0% |
34.0% |
36.0% |
35.8% |
| 1989 |
35.0% |
36.0% |
31.0% |
32.0% |
33.5% |
| 1990 |
30.0% |
34.0% |
31.0% |
27.0% |
30.5% |
| 1991 |
30.0% |
28.0% |
26.3% |
21.0% |
26.3% |
| 1992 |
30.2% |
28.3% |
28.2% |
20.5% |
26.8% |
| 1993 |
36.4% |
49.2% |
30.5% |
25.0% |
35.3% |
| 1994 |
20.5% |
21.3% |
15.5% |
24.7% |
20.5% |
| 1995 |
17.1% |
17.2% |
20.4% |
24.1% |
19.7% |
| 1996 |
19.4% |
20.5% |
29.1% |
24.1% |
23.3% |
| 1997 |
19.8% |
21.5% |
18.7% |
20.1% |
20.0% |
| 1998 |
18.3% |
27.1% |
23.3% |
23.7% |
23.1% |
| 1999 |
25.5% |
25.3% |
22.4% |
25.9% |
24.8% |
| 2000 |
20.4% |
21.6% |
23.5% |
26.2% |
22.9% |
| 2001 |
17.1% |
16.6% |
17.3% |
17.0% |
17.0% |
| 2002 |
14.0% |
12.1% |
15.8% |
15.2% |
14.3% |
| 2003 |
15.1% |
14.9% |
12.9% |
12.7% |
13.9% |
| 2004 |
13.2% |
16.5% |
14.9% |
14.2% |
14.7% |
| 2005 |
16.0% |
16.4% |
16.2% |
15.2% |
16.0% |
| 2006 |
16.4% |
18.2% |
16.1% |
15.4% |
16.5% |
| 2007 |
16.6% |
15.4% |
15.6% |
11.0% |
14.7% |
| 2008 |
8.9% |
11.4% |
13.4% |
12.6% |
11.6% |
| 2009 |
14.4% |
18.2% |
13.4% |
7.3% |
13.3% |
| 2010 |
7.4% |
7.7% |
6.9% |
|
7.3% |
Source: Challenger, Gray & Christmas, Inc. October, 2010
For more: contact Steve Lodis at steven.lodis@gmail.com
FA7SRCBV2D74
Will good employees leave en masse once the labor market turns? The current economic times have caused many hardships with companies and employees alike. Fewer pay increases, 401k losses, benefit reductions, layoffs, more work for fewer people, etc.
Retaining good workers is something companies should begin to address before it is too late. Today’s data indicates that many employees are feeling a sense of discontent with their current leaders and companies. Loyalties have been disrupted and many are waiting for “greener pastures”, even if it is only a perception that leaving would be an improvement.
A recent study indicates that roughly 20% of all employees do not believe the management team makes effective decisions and more believe management does not regard employees in their business decisions.
Many believe that with the improvement in the economy, employees will look outside their current employer to “make up” for lost wages, benefits and as important employee trust and engagement.
Employers need to develop strategies now that can attempt to re-capture the hearts and minds of our employees.
Actions such as:
- Up to date communications on the state of the business, explaining the conditions and rationale for actions taken. What is the forecasted recovery plan?
- Develop employee empowerment and engagement. Consider teambuilding skills, organization design and pay plans.
- Design performance management processes that clearly show employees what their role impacts the outcome of the business. Focused Objectives.
- The need to promote a climate of respect, fairness and sense of meaning and self worth.
Companies need to take action today to minimize the pending changes from an economic turnaround.
For more: contact Steve Lodis at steven.lodis@gmail.com
Very insightful reading for all Human Resource professionals.
“Get Rid of the Performance Review!”
By Samuel A. Culbert with Lawrence Rout
www.performancepreview.com/index.html
The Human Resources audit involves an objective look at the effectiveness of your current HR policies, practices, procedures and strategies to help protect your company and improve employee effectiveness as well as employee satisfaction. With a changing work environment and improving economy, the level of employee satisfaction will preclude the risk of key employee retention.
The initial elements of an HR audit include the obvious legal requirements. Is your business in compliance with all of the recent changes in legislation?
The next step is to review for Best Practices. Are you current with the HR programs to maintain a competitive advantage in the market?
Are you utilizing your “people resources” to their maximum effectiveness?
Is the HR department in alignment with your company strategy and objectives? You would be surprised to see how many are not.
How well are your HR policies “connected” to your employees? How many even know the expectations?
Finally and perhaps most important, what do your employees think and feel about how you treat or respect their issues? What are their issues? Are they satisfied with the current state?
For help: Contact Steven Lodis at steven.lodis@gmail.com
The recent economic downturn/recession has caused many changes to our business landscape. While most employees today are grateful to have jobs, experts warn that there is a potential backlash when the economy turns. Employee cutbacks, more work for fewer people, long hours, less pay, fewer benefits…sound familiar? Employees will look for methods to take back what was lost. Many will leave to find “greener pastures” and retention will become a major business issue.
Others that are not as mobile may turn to union organizing. Promises of pay back…and more.
Legislation on union organizing is making the process much easier for unions to have authority to represent your workers.
What you should do now:
- Open communications on business conditions and projections.
- Make it clear you do not believe there is a need for a union. (Be careful as unions can promise almost anything and employers are much more restricted)
- Fair and consistent HR policies and practices.
- Open employee/management dialogue
- Competitive pay & benefits. Trickier today as economic conditions fluctuate.
- Trust
- Understand the current employee climate. What are the issues? Positives as well as negatives.
So what can you do if the union comes knocking on your door?
Be careful not to engage in any dialogue without advice as you may unintentionally approve a union without an election.
Below are the standard actions (TIPS) that cannot be taken by employers:
- Threaten. Never threaten to retaliate employees for their union organizing actions.
- Interrogate. Do not interrogate employees about their actions.
- Promise. Never promise to do something like improving pay, benefits, working conditions. Unfortunately union organizers can promise anything and employers cannot.
- Spy. Never spy on union activities.
For more contact: Steven Lodis at steven.lodis@gmail.com
