Recession is over. Hold on to your employees…

The recession might be over, however, it doesn’t mean that employers can now relax and enjoy their mojito. Researchers in the job market are predicting upticks in job churn as the employment market improves. Many businesses, especially in the IT industry, can attest that the days of sorting through the stacks of high-quality resumes fighting for a lower salary position are over.

Employers everywhere, you are now officially on notice —your workers are increasingly confident that they can find jobs elsewhere, and turnover rates may be about to increase. A survey from Glassdoor.com (http://bit.ly/jB3xBo) shows growing confidence about the job market, even as companies continue to squeeze their people on compensation. All of which will be another disruptive and costly outcome of the recession for those who don’t prepare. The key is hanging onto those team members now that the job market is opening up.

And losing people is really easy. Here’s the usual scenario: The manager runs their department with crisis management, throws work on his team members at the last minute and expects the work to be finished yesterday. As you can imagine, this results in a high stress environment, and extremely long hours. This formula of “short term gain for long term pain”, usually results in high turnover.

Another very serious factor that is changing workforce dynamics is the latest wave of employees – Generation “Y” or “Millennial” as they’re sometimes referred to. Generation Y presents real challenges to the management who are used to working with Baby Boomers or the previous wave – Generation X.

The new young talent has a completely different attitude towards work: they expect to get promoted quickly; they don’t really trust in the “9 to 5” schedule, preferring to work the hours when they’re more effective; they want to be treated as partners rather than just follow the orders. According to a survey by Kendall Tarranet Worldwide, “Generation Y graduates are likely to be more loyal to their lifestyle than their job.”  They can leave the workplace by simply being bored with their job.

From a financial perspective, the price you pay when you lose an employee is staggering. The cost to advertise, interview, train, and get the person up to an adequate level of productivity is enormous. To do this over and over again, is just pure pain.

And who is to blame that these people are leaving? The president or the CEO – that’s who! Why? Because he or she is ultimately responsible for what happens in the company. Not to be aware or to simply ignore this type of work place dysfunction is a recipe for disaster.

As usual, prevention is a much cheaper strategy.  While salary plays a critical role in recruiting individuals to join an organization, other workplace factors appear to weigh more heavily in retaining them. It’s no secret that engaged employees are highly motivated, excited and enthusiastic about their jobs. They resist distractions, tend to forget about time and routinely produce significantly more than the job requires. They enjoy searching for ways to improve circumstances and volunteer for difficult assignments. They are proud to be involved with their organization and are more likely to stay with the company long term.

One of the tools that can help accomplish this would be a project management system that helps employees realize themselves, empowers them and lets them be fully engaged and take complete ownership of their assignments.

In this situation the old-fashioned “Top to Bottom”, “Here is a task – do it” approach simply won’t cut it anymore. Employees who grew up with computers, instant messaging, and social networks will simply sabotage any project management software that is not intuitive, fun or easy to use.

A good project management tool will help managers and employees understand the similarities and differences between them and how it impacts their communication — a key step in reducing conflict. A fun and easy to use and effective system combines insight into situations that can arise between team members, as well as provide actionable information on how they can improve the way they work together.

Low number of customer complaints, top-notch quality and high morale is a testament to the success of a project management system that people actually enjoy using. Ask yourself: If something as simple as good software could make the difference between a joyful team or a not-so-joyful team – which would you rather have?”

Improving working relationships with project management tools enable you to:

  • Receive specific guidance on how the manager and employee interact;
  • Increase productivity;
  • Improve communications between manager and employee;
  • Identify and avoid potential management conflicts;
  • Resolve ineffective working relationships.

In the end, there are more benefits and advantages to keeping team members happier, engaged and productive. And a simply thing like a fun and intuitive project management system can do wonders for your organization, preventing unnecessary turnover where everyone wins – team members, the company — and most importantly – customers.

3 Responses to “Recession is over. Hold on to your employees…”

  1. [...] is another metric you could use to measure collaboration software ROI. It’s directly linked to employee satisfaction and the savings of not having to re-train new hires can be quite [...]

  2. [...] is another metric you could use to measure collaboration software ROI. It’s directly linked to employee satisfaction and the savings of not having to re-train new hires can be quite [...]

  3. Michael Basecamp…

    [...]Recession is over. Hold on to your employees… « Birdview Projects Blog[...]…

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