Light a fire

As a result of the worst economic crisis in recent history, workers across the country have, undoubtedly, been shaken. When layoffs, pay and benefit reductions, salary freezes and restructuring first began to occur, employees everywhere seemed to understand the magnitude of the crisis and were happy to just have a job. Indeed, the phrase "job security" took on an entirely new meaning for many—both the employed and the unemployed alike. Unfortunately, these newfound feelings of job appreciation have now given way to feelings of burn-out, recession fatigue, and self-preservation. This has led to declining levels of motivation, pride and trust in many workplaces.

And employees are beginning to take a close look at their work life and asking themselves if they really want to stay with their current employer. Although you may be blameless in the economic crisis and although you may have made wise moves to maintain the health of your organization, your employees may still want to jump ship. Why? Because it's human nature for people to want to disassociate themselves with bad memories. Unfortunately, if you found it necessary to deploy traditional belt-tightening labor practices to cope with your business challenges, your company may be that bad memory.
 

Reasons for leaving
Several recent surveys conducted by reputable firms suggest that anywhere between 40-60 percent of Americans plan to look for a job once the economy rebounds. The younger generations—the Gen Xers and Yers—are reportedly the most likely to abscond. How do you know if your employees are among the percentage wanting to bolt? Well, the risk increases if one or more of these occurred at your company during the recession:

• Leaders failed to communicate what was going on strategically
• Employees have had to work double-time to make up for a slimmer workforce
• Wages were cut and cannot be or are not restored
• Permanent organizational changes were made, limiting future growth potential
• Employees perceive that they were treated poorly
• Employees lost trust in the organization as a result of how it handled cost cuts
• Employees are stressed out about money

So what can you do now to re-engage your employees and to minimize the temptation for talented employees to find a new job as conditions improve? The answer lies in first understanding what factors make work gratifying today. A recent nationwide SHRM job satisfaction survey listed among top factors the following very important aspects of job satisfaction:

• Job security
• Benefits
• Compensation/pay
• Opportunities to use skills and abilities
• Relationship with immediate supervisor
• Management recognition of employee job performance
• Communication between senior management and employees.

Two things stand out on this list: First, job security rules. Of course, it's not surprising that during an economic downturn employees selected job security as a very important aspect of job satisfaction. This is actually good news for small businesses since the perception among workers (and, frankly, the reality) is that mass layoffs occur more readily at large companies. Secondly, three of the job satisfaction factors are directly related to management. This tells us that in the current climate, leaders play a vital role in the job satisfaction of employees. Indeed, to your employees, the boss IS the company and the ability of your leadership team to encourage the development of your people through trusting relationships will impact retention. No doubt about it, as the market improves it will become even more important for managers and leaders to hone performance development skills and to enhance trust.
 

Most important ingredient
As the economy rebounds, the most important ingredient in retention will be the strength of your leadership team. Don't wait to find out if your talented employees are among the 40-60 percent who leave. Now is the time to assess the interpersonal skills of your management team and to make necessary adjustments. Employees want and need leaders who can connect with them emotionally; leaders who are highly visible, who care about the well being of others, who encourage the development of talent in the organization and, most importantly, who are trustworthy. According to a research study conducted by Linda Stroh, a professor at Loyola University Chicago Graduate School of Business, these are the qualities of a trustworthy person:

• Is likely to respond in a healthy way when things go wrong.
• Admits and learns from mistakes.
• Is aware of how his or her behavior affects others.
• Admits when he or she doesn't know something.
• Tells me when I do something wrong.
• Helps me be a better person.
• Sticks by others in tough times.
• Speaks the same of everyone whether in their presence or not.

And I would add one more trait: Keeps commitments. This includes the small ones. For example, if you promise an employee that you will call him or her back before the end of the day, do it. Failure to keep even the smallest of commitments can erode trust.

The bottom line
Retaining talent in the future is going to depend in large part on the skills and abilities of your leadership team today. You must ensure that your management team can build relationships with your people on more than just money. As the economy rebounds, regardless of your industry or the size of your company, the best formula for successfully retaining talent combines trustworthy leaders with a motivating work environment and a culture that recognizes and engages employees.

Jean L. Seawright is president of Seawright & Associates, an HR management consulting firm in Winter Park, Florida; jseawright@seawright.com.