As The Economy Turns

The stock market is rebounding, corporate profits are on the upswing (possibly due to the millions of people cut from the employment rolls), the financial services industry is stable (though credit, surprisingly, remains tight) and a number of economists have declared that the recession is over. Cautious optimism is beginning to find its way into business conversations.

So is it any wonder that many talented people who are currently gainfully employed are beginning to think seriously about bolting to another company? No, it's no surprise at all -- especially when you consider what many people have been put through by their employers during this difficult economic period.

Here are just a few things we hear in high volume:

• There's significantly more work for the same or less pay. As companies cut employees, little or no effort has been made to make commensurate reductions in the work load. As a result, survivors have been forced to pick up the slack. It's not at all uncommon to hear stories about the work week growing from 50 hours to 70 hours -- often with salaries frozen or reduced and bonus potentials cut or even fully eliminated.

• I have an idea about how to improve our processes and procedures, but don't think it's the right time to bring it up. When times get tough and companies cut staff, people often stop talking. Ideas -- especially those that might be seen to challenge the status quo or that might be seen as criticism -- may be withheld. As many employees see it, it's 'safer to keep one's head down' than it is to offer ideas. And when companies are in a staff reduction mode, many employees seek safety. Is it any wonder then that process improvements desperately needed in these times are typically unachieved?

• My company has been behaving badly. Inadequate communication, ineffective leadership and excessive 'contradictions' in the workplace (e.g., new policies not consistently applied, leadership not 'walking the talk', visible issues with accountability, etc.) have led many, especially top performing, high potential employees, to wonder aloud -- but not while at work -- about the integrity, ethics and values of their employer.

• Career growth opportunities have shrunk or vanished. Workforce reductions have resulted in significantly fewer promotions. Developmental assignments have also been impacted. The result: Far fewer opportunities to learn new skills and a curtailment of career advancement. Another result: Top performers wondering if their company is really the place for them long-term.

• I'm thankful to have a job, but I won't forget what my company has done to us. This, indeed, appears to be the bottom line for many employees: An understanding of the times, but a strong belief that cost-cutting and job loss could and should have been handled much differently.

What we're seeing, in sum, is the disenfranchisement of many in the workforce. This is a serious development, one that will have long-term implications for a large number of companies.

Indeed, there are two things we'll bet heavily on:

1. Your people won't soon forget; and,

2. Your top people -- those most able to find employment elsewhere -- are already beginning to think about opportunities elsewhere.

This is a bet we know, sadly, we'll win. Just one piece of anecdotal data to confirm this: The volume of mail we've received about job opportunities throughout the country has dramatically increased in the last few weeks alone. These inquiries are all from people with jobs. All are top people. Some are executives. And they all say about the same thing: "I've had it."

Next week: What actions to take to regain your people's hearts and, hopefully, they're willingness to continue to work for you.

Until then, a very happy and healthy New Year to those of you who know what I'm talking about.