One in three employees is ready to walk

"Hello, I must be going." With employee loyalty hitting a three-year low, this might be the rallying cry of more and more employees in the coming months.

In its 9th Annual Study of Employee Benefits Trends, MetLife reports that one in three workers hopes to find a new job in the next 12 months. And they're confident they'll be successful in their search. According to another study (this time a survey by Glassdoor.com),  four in 10 self-employed, full-time and part-time workers believe it's "likely" they will secure a job that matches their experience and salary in the next six months.

Many factors are to blame for the morale free-fall, including stagnant wages, busted bonuses, longer hours and heavy workloads. The combination is stressing employees out and testing their loyalty to their current employers.

"Businesses are understandably focused on expenses," says Ronald Leopold, vice president of MetLife's U.S. business."But they're taking their eye off the ball with human capital issues, notably what drives employee satisfaction and loyalty."

So now what? Do you resign yourself to the situation at hand -- or get serious about boosting employee satisfaction? Are you ready to tip the balances in favor of your employees, especially those you'd hate to see leave?

Let's dip into the HR Forum vault for some great ways to boost employee morale no matter how tight the budget:

First, give 'em what you can. Even if it's a 1% raise or a one-time bonus, let the hard-working double-duty working employees you still have know you are stretching the limits to give them SOMETHING. Remember, a flat wage means your employees are actually losing money year after year. (A caveat -- make sure your pay increases for senior management are just as flat as those in the rank-and-file. They will find out, no matter how closely you try to guard that secret!)

Second, reward them with cost-free pats on the back. Let them take some time (during work hours, and of course, paid) to learn a new software, take a personal interest class at a local college or community center, or volunteer for a favorite charity. For the parents, make school assemblies, musical productions and end-of-the-year award ceremonies something they can attend without using their leave time. Boost their paid vacation time by one day, or declare their birthdays (or the next working day after it) a paid holiday for each employee.
   
Next, work on what they're called. Give them a title that honors all that they do, even if the pay isn't there just yet. Of course you have to make sure the titles don't get your business into trouble with FLSA rules, but even within those guidelines, there is plenty of room for more impressive (and morale boosting) job labeling.

One in three employees is ready to walk

Private-sector jobs took a robust turn in February

It’s up. It’s down. It’s up again. Tracking the U.S. employment climate can be a little bit like following a Hollywood celebrity’s career. But for today, the news is good.

Private-sector employment jumped 217,000 in February – with medium businesses adding 104,000 jobs; small businesses, 100,000 jobs; and large businesses, 13,000 jobs.

The speed of gains is accelerating, too. From December 2010 through February 2011, the average gain was more than 200,000 – compared with an average gain of just over 60,000 during the previous six months.

"Looking at the ADP numbers over the last five or six months, the trend is clearly toward stronger private sector employment and we should see that trend going forward," said Steve Blitz, senior economist for ITG Investment Research in New York.

Private-sector jobs took a robust turn in February

Will they stay ... or will they go?

Lose 10 pounds … cut back on caffeine … learn a new language … get a new job. With the lifting of the recession and the ringing in of the new year, many employees are taking a long, hard look at their careers and planning their exit strategy. And a big reason for their departure may surprise you: lack of trust.

According to Deloitte LLP’s fourth annual Ethics & Workplace Survey, one-third of the nation’s employees will renew their job search as the economy revives. Approximately 48 percent of the respondents cite a loss of trust in their employers as a motivator for seeking a new job. At the same time, 46 percent blame a lack of transparent communication from their company’s leadership as a reason for looking elsewhere.

What’s going on here? And more important, what can management do to regain employee trust and pull back the curtain on the major decisions affecting the workplace?

While you can’t eliminate the economic uncertainties that linger even in the new year, you can invest in the mental well-being of your employees. Here are some steps in the right direction:

1. Create a clear sense of purpose. When budgets get cut and staffs downsized, employees often wonder when a pink slip is coming their way. Managers can allay fears by meeting with employees after a layoff or restructuring to revisit corporate and departmental goals. Remaining employees must understand they are critical to the ongoing success and profitability of your company. Meet regularly to share revised goals and expectations. Clearly define roles and responsibilities. And most of all, let employees know that “we’re all in this together.” Getting through challenging times is easier when everyone is working toward a common objective.

2. Get employees involved in what’s next. Once employees understand they are important to the ongoing viability of your company, encourage them to uncover and share ways to improve efficiency – to find a better way. If employees believe their ideas will be heard and implemented, they are more likely to go above and beyond. Attaching rewards to great ideas and sharing them corporate wide also cultivates an environment of value and security.

3. Dole out “thank yous” and compliments. When raises aren’t possible in tough economic times, it is imperative that leaders and managers increase their efforts to bestow positive praise on a regular basis. Heartfelt words of recognition and encouragement have a way of immediately lifting spirits. Look for ways to call out a job well done, whether it’s submitting an error-free report, staying on task with a high-profile project or working well with others on a team initiative. For most employees, being valued and praised for their hard work is just as important as a paycheck.

Previous posts:
Through thick and thin, it’s the people who matter most

Why it’s just as important to dole out the praise as it is the pay

Will they stay ... or will they go?

What's up with downsizing?

The recession-battered economy has experts wondering what’s next for the job market. Are companies stabilizing – and can employees rest easier that their jobs will still be there tomorrow? Well, that depends on who you talk to.

According to a recent online poll by Right Management, half of the 426 senior HR executives who responded expect their organizations to restructure in the next six months. One in five executives anticipates a change in leadership.

Other changes the HR professionals foresee in the near future include:

Acquisition or merger – 13%
New product launch – 10%
New technology – 6%

While not all of these changes mean job cuts for employees who live in fear of the dreaded “pink slip,” they certainly don’t point to smooth sailing in the coming months, either.

“Although the economy shows certain signs of improvement, it seems likely that more corporate upheaval is ahead,” says Michael Haid, senior vice president of global solutions at Right Management. “The current atmosphere remains unsteady and anxiety is still widespread.”

At the same time, however, employees are much more tuned into what’s happening around them. Their radar is up, and they’re not naïve about how quickly things can change in corporate America.

“Employees are surely listening carefully to what their top management is saying, how the company is performing and the kind of announcements being made,” says Haid.

What's up with downsizing?

It's a good Friday for job growth, too

On this sunny Friday afternoon, I thought I’d pass along some equally cheery news from the job front:

The U.S. economy posted its largest job gain in three years in March.

More specifically, the Department of Labor said employers added 162,000 jobs last month – 123,000 of those by private employers.

"It's just the beginning of a rise in private hiring that will help sustain the recovery," said Stuart Hoffman, chief economist at PNC Financial Services Group."They're not big numbers, but they're welcome numbers."

And although some of the news in the report was mixed, I’d like to sustain your good mood with only these additional, upbeat details:

=> Manufacturers added 17,000 jobs, the third straight month of gains
=> Temporary help services added 40,000 jobs, while health care added 37,000
=> Leisure and hospitality added 22,000 jobs
=> Even the beaten-up construction industry added 15,000 positions
=> Plus, the average work week increased to 34 hours from 33.9

This recent report comes on the heels of data earlier this week that showed consumers are stepping up their spending, and manufacturing activity is growing at its fastest pace in more than five years. As they keep a close eye on the numbers, economists are hopeful that the nation will steer clear of a "double-dip" recession, where growth slows after a short burst.

"The stars are starting to align here," said Brian Bethune, chief U.S. financial economist at IHS Global Insight.

It's a good Friday for job growth, too

They're back! Employee benefits slo-o-o-o-wly returning as economy rebounds

Like a slumbering bear awakening from his long winter’s hibernation, the economy is showing signs of life again. It’s still a little sluggish, but it’s stirring and has stepped into the light of day.

That’s good news, as is the fact that more employers are bringing back the benefits they were forced to freeze during the worst of the recession. During tough times, many companies slashed 401(k) matches, merit-based raises and bonuses, and other employee perks to help cut costs. A recent USA today article, however, shares some encouraging results from a report from human resources consultancy Towers Perrin:

=> Nearly two-thirds of firms that locked in salaries last year will start offering raises again in 2010

=> Approximately one-third of firms that dropped 401(k) matches will increase or restart those company contributions next year

And many of these companies are reinstating these benefits for the best of reasons: To motivate and retain their most valuable employees, so they don’t walk out the door as the economy (and job market) strengthens.

"When you start coming out of a recession, people remember how they were
treated," says Fred Crandall, a Watson Wyatt senior human resource consultant. "Some people who feel like they've been given a raw deal will jump ship." USA Today

Yet many of these benefits won’t be as robust as they once were. Gone are the days of the usual 401(k) match of 50 cents on the dollar, up to 6% of pay. Many companies, like FedEx, will offer smaller matches. Other companies will look at certain factors when adjusting benefits, such as tying 401(k) matches to quarterly or annual financial performance.

And what about raises? They may return in 2010, but not in an across-the-board, one-size-fits-all fashion. Four in 10 employers in the Towers Perrin report stated that they will differentiate among employees when considering salary increases, doling out the highest raises to only the highest achievers. A weak employee may see no raise at all.

While these re-emerging benefits will be a welcome change to employees in the new year, employees shouldn’t assume it’s business as usual in 2010. Most employers will be extremely cautious when reinstating benefits, keeping a close eye on the economy’s recovery.

“More organizations are being much more clear that benefits such as 401(k) matches are discretionary,” says Brad Kimler, executive vice president of Fidelity’s Consulting Services business.

What about your company? Are you in a position to start bringing back some of the benefits you placed on the back burner in 2009? Do you see the economy - and your business - rebounding enough in 2010 to reinstate 401(k) matches, raises and other benefits? We'd love to hear what's happening in your corner of the world!

They're back! Employee benefits slo-o-o-o-wly returning as economy rebounds

Recession is lifting - competition for jobs isn't

While most economists believe the recession is over and recovery has begun, unemployment rates remain alarmingly high. As a result, the number of U.S. job seekers competing for a single opening has reached the highest point since the recession began.

“There are about 6.3 unemployed workers competing, on average, for each job
opening, a Labor Department report shows. That's the most since the department
began tracking job openings nine years ago, and up from only 1.7 workers when
the recession began in December 2007.” (msnbc.mns.com)

The msnbc article states that the employment crisis will most likely get worse as companies remain sluggish to hire. In fact, many economists expect a “jobless recovery,” which will lead to added pressure on President Barack Obama and congressional Democrats to stimulate job creation.

"Fewer people are facing job loss," said Heidi Shierholz, an economist at Economic Policy Institute in Washington, "but once you have lost your job, you are in serious trouble.”

Shierholz says the economy faces a "jobs gap" of almost 10 million — the 7.2 million jobs lost plus the roughly 125,000 per month that would have been needed since the recession began just to keep up with population growth.

To close that gap and get back to pre-recession levels in two years would require more than 500,000 new jobs per month, a pace of job creation that hasn't been seen since 1950-51, Shierholz adds.

What about your business? How much of your workforce did you have to cut during the recessionary downturn? And are you feeling enough of an economic boost to start replenishing those positions – or even adding new positions? Or are you sitting tight and not hiring until the recovery is more robust?

Recession is lifting - competition for jobs isn't