While we are supposed to be recovering from the “Great Recession”, most of us have not felt the positive effects yet. Unemployment still remains around 10% and while employers may not be laying any more employees off in large numbers, they are still cutting back on expenses. These cutbacks include furlough days, reduced benefits, frozen salaries, hiring freezes and the list goes on. Companies continue to be cautious and risk adverse.
Many employees are happy to have a job but the resentment may be building. Approximately 25% of employees have lost their engagement to their companies and will be a flight risk when the job market picks up. Now is the time to focus on talent so that when the economy improves, you will not lose your best employees.
Many business and human resource consultants recommend creating an Employee Value Proposition to align your workforce with your mission and brand, differentiate your organization to attract and retain talent and get the most out of investing in rewards programs.
Employers should begin to focus on a rewards program, opportunities for career advancement and increasing the availablity of virtual workplace opportunities. In order to be engaged and loyal to their employers, employees must feel connected, valued, respected and supported.
The economy will improve and at some point, we will have a shortage of well trained, high performing talent. The tme too focus is now!
Source: Towers Watson 2009-2010 rewards study