Employers More Worried About Keeping Employees In a Slumping Economy

Highlights

  • Just about every leader reported that their concern for retaining key employees in today's economic climate has increased.
  • At 32 percent, accelerating the development of key employees was the number one strategy that worked with retaining top contributors.
Virtually every day, the news reports a drop on Wall Street, the demise of yet another financial institution, and/or thousands of layoffs. One would think that in these tough times, employers would feel fairly certain that their employees would hunker down and leave their resumes to collect dust, at least until the market picks up. Not true says a new Personnel Decisions International (PDI) Pulse on Leaders study. Just about every leader reported that their concern for retaining key employees in today's economic climate has increased. PDI found that employers' concerns about retaining employees have heightened.

With organizations having fewer resources, many employees may feel overworked and worried about their future. This disengagement can lead employees to look to other companies for opportunities, according to PDI. 'It may seem counterintuitive that organizations are more concerned with retaining key employees in a down economy. But, when the economy is tight, company leaders realize that the best and brightest talent can give the organization a competitive advantage,' said Tommy Daniel, Ph.D., senior vice president, PDI. PDI surveyed more than 500 human resources professionals and other business leaders around the world to learn their best practices in keeping their key contributors in a slow economy.

At 32 percent, accelerating the development of key employees was the number one strategy that worked with retaining top contributors. Twenty-two percent of employers have offered competitive pay and benefits successfully. 'We advise companies to prioritize their retention strategies, identify key talent pools, and make strategic choices that help keep high-performing employees engaged and committed,' continued Daniel. 'Even in a tight economy, there are steps that companies can take that make a big impact without costing money. For example, senior leaders can make the effort to speak one-on-one with key employees to communicate how the organization values their contributions. Leaders can ask key employees to participate in strategy discussions that make the employee feel more invested in the company and more involved in developing company solutions.' 

Learn more about PDI by clicking here.

Written by: Bright Horizons Blog Editor

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