By Mike Hoban
As the economy shows signs of slow resurgence and companies cautiously begin to hire again - and yes, they will hire again – it could trigger the start of a disruptive revolving door in many organizations. Why? There’s evidence that talented employees and managers will exercise their “free agent” status and trade employers after clinging to jobs they tolerated primarily because they paid the bills during these tough times.
It seems there are a lot of folks out there who, while glad to have a job in this downturn, are likely to invoke the old Johnny Paycheck anthem (“Take this job and shove it!”) once better options present themselves. We could be in store for a talent exodus of the best and the brightest from companies, people who are feeling overworked, under appreciated, or under engaged. Or maybe all of the above. They’ve been in survival mode and they’ve been working for bosses and companies who have also been in survival mode these last 18 months and as the economic storm clouds go away and the sun peaks through, many will seek new opportunities.
Voluntary turnover in the U.S. has historically been about 20% on an annualized basis but that has slowed dramatically in the recession. Employees - especially younger ones - who would otherwise have been inclined to move on or move up have put their preferences and their ambitions on hold. But that could end along with the hiring freezes.
It’s that familiar old Maslow Hierarchy of Needs at work. During the downturn, survival and security were paramount. Employees’ needs for engagement or “self-actualization” in the workplace got put on hold until those more basic needs were met. When hiring ticks up, they could be, as they say on Wall Street, rushing for the exits.
Of course, with unemployment currently approaching 10% it might seem that employment musical chairs would be a good problem to have.
Mike Hoban is a senior consultant for Development Dimensions International (DDI).
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