Entrepreneurs and managers who panic during the downturn and drive away their best staff away will face savage skills shortages when superannuation returns improve and baby boomers retire, according to a recruitment expert.
David Jones, managing director of recruitment firm Robert Half Asia-Pacific, says there has been a sharp increase in the number of candidates reporting problems with their managers since the fourth quarter of 2008, when the downturn really started to bite.
“Their managers are panicking. They’re so worried about their own job security that they’re cutting staff pay and benefits without good reason, and in some cases without any justification as to why,” Jones says.
“Nine months ago it was all about personal development, emotional intelligence and value-added training. Now there is nothing.”
A recent survey by Robert Half of 3556 workers (including 394 in Australia) revealed 23% of staff in specialist areas of accounting and finance intend to stay in their current role in the next five years.
But Jones says managers who fail to communicate properly with their staff in the coming months risk driving these loyal staff away.
This could lead to big problems when the economy recovers and superannuation returns improve, allowing many baby boomers to retire.
“There are many long-term business issues that haven’t changed, despite the downturn. Managers can’t afford to be too short sighted. The fact is 5% of the working population is going to leave the workforce as soon as super funds bounce back. The war for talent is going to be even more intense.”
Jones says managers and company owners need to ensure they communicate with staff properly during the downturn, confronting rumours where necessary, praising top-performing staff, and explaining the company’s position where necessary.
He warns against falling into the trap of telling staff they are lucky to have a job.
“True, many people feel fortunate to have a stable position in this economy, but your most talented employees always have options.”
A bit of extra attention to Generation-Y staff might also be in order. Jones says they often establish more emotional relationships with their managers and will be parituclarly jolted if this relationship is strained by the downturn.
“They like a lot of mentoring and coaching, and particularly they like relationships with the veterans who have been there and done it.”
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
