Every two years, the Society for Human Resource Management (SHRM) surveys HR professionals on a wide range of topics to find out what issues they believe will have the biggest impact on organizations in the years ahead. This year’s survey was completed by over 1200 professionals. Some findings are consistent with previous year’s reports and were not a surprise. For example, healthcare cost is the number one concern of human resource professionals looking forward. And, concern number ten is the fear of the United States entering into a recession. As we write this in early December, the media officially confirms that our economy has been in a recession for the past year.

What is new in this year’s HR survey is that six of the top ten trends are related to finding and retaining talent:

1. Large number of baby boomers (1945-1964) retiring at the same time
2. Aging population
3. Growing need to develop retention strategies for current and future workforce
4. Preparing organizations for an older workforce and the next wave of retirement
5. Labor shortages at all skill levels
6. Demographic shifts leading to a shortage of highly skilled workers

It only makes sense that 60% of the HR professionals are concerned about workforce retention and employee engagement. These survey respondents are clearly attuned to the world that is about to become. When there is a shortage of workers, you want to keep the best ones you have and become an employer of choice for the top talent in your industry.

The next question on the survey asked what actions organizations were taking to prepare for these trends. We found it quite puzzling that six of the top ten actions cited had absolutely nothing to do with engagement and retention, and focused instead on technology improvements in the organization. Actions recommended included identity theft safeguards, non-disclosure and non-compete agreements, technology disaster recovery efforts and IT training. The final three of the top ten actions were a bit more “engagement/retention” focused with actions like tuition reimbursement, training and preventative health programs.

If HR professionals understand that the number one concern on the horizon is employee engagement/retention, how can it be that their organizations are not currently taking more actions to address this concern? Attention to employee engagement, in particular, is critical in this recession soaked environment where 99% of what we hear or read is negative and frightening.

Although technology will help our organizations and employees be more efficient and productive, the bigger challenge facing us is that when the recession lifts some six to nine months from now, employees will have more choices about where they work. They will be in a position to demand better benefits, higher salary and most importantly, a culture where they want to “belong.”

Our twenty years of analyzing employee opinion survey data has us convinced that when employees are not fully engaged with both their heads and hearts, they are going to leave. And, when they do leave and find an organization committed to a culture where employees love to come to work, no amount of technology will lure them back.

Currently, the recession has most employees scared and concerned for their job security. Employees are focused on doing whatever they need to do to maintain their jobs. In other words, right now, we might have a tendency to focus less on creating cultures of excellence, because we’re experiencing greater stability in our employee ranks. Historically, though, we know that this situation won’t last forever, and when the economy changes, all the challenges identified by the HR professionals will once again be concerns.

Despite the unfolding economic crisis and its impact on our businesses, workplace culture is critical. You are still tasked with keeping employees motivated, production levels up and customers happy. These are not easy goals, given the backdrop of the recession.

As we end the year, best wishes to each of you for a terrific holiday season and a bright, optimistic 2009. We value our partnership with you! Happy Holidays.
 

Strive for excellence, not perfection,

Peter B. Stark and Jane S. Flaherty

1. Model Confidence and Optimism

During these uncertain times, it is critical that you listen to employees, address their concerns honestly and answer their questions to the best of your ability. When addressing employee concerns, however, it is important to portray confidence and a positive vision of the eventual outcome. Although the immediate outlook may appear bleak, to foster motivation in your team, it is critical that you remain positive, upbeat, supportive and focused on solutions. While talking real, also speak the language of optimism. For example, you could say, “It’s true. We’ve lost some important business due to a poor economy. Not all businesses are experiencing the same slow down, though. Where else should we be looking for business? What actions can we take to position ourselves positively?"

2. Focus on What is Going Right

Times are tough, but it’s not all bad. Focus on what is going well. Post a list of “Positives” and have team members add their thoughts about what is going well. Identify your strengths, or positives, and use them as a springboard to brainstorm ideas about solutions to current challenges.

3. Replace Negative Thoughts with Positive Actions

In down times, it is easy to get caught up in a cycle of misery . . .if you think today is bad, just wait until tomorrow . . . Here’s what I’ve heard. Break that cycle by asking team members to go for what they want, or what could be, not the negatives. For example, if employees are voicing concerns about a possible layoff due to a decline in business, redirect the conversation by asking them, “What can we do to demonstrate that our team contributions are critical to the success of our company?” Our experience proves that the fastest way to blast away the negatives is to focus on action. Do something positive. You’ll notice an immediate shift in both energy levels and team morale.

4. Start New Traditions

If the budget demands you trim back on company festivities this year, don’t eliminate them altogether. Ask your team what they want to do to celebrate the holidays. They may suggest a potluck lunch, gift exchange, games, secret Santa program or other low, or no cost ideas. Or, sponsor a less-fortunate family, sharing with them the true spirit of the season. Take your team to a Soup Kitchen to volunteer. Do something different this year. Start a new tradition.

5. Accomplish Something Significant

There’s an old saying . . .”When the going gets tough, the tough get going.” As we end what has been a challenging year, now’s the time to set your personal and professional goals for 2009. Whether you take this time to set your goals, or use the poor economy to wallow in your misfortune, you are writing your own ticket for the future. Those leaders that are now taking the time to revisit, revise, and reorient what they do as a leader are positioning themselves for a huge jump on the competition when the economy shifts. If you’re reading this, we’re betting that you are a future focused, goal setting leader that has created a work environment focused on employee engagement and retention.

Need help? Peter Barron Stark & Associates has been building organizations where employees love to come to work and customers love to do business for more than twenty years.

Our Services Include:

• Leadership Engagement (Leadership Training, 360° Evaluations, Coaching)

• Employee Engagement (Surveys, Training, Coaching)

• Executive Engagement ( Strategic Planning, Meeting Facilitation)

• Customer Engagement (Surveys, Training)

• Negotiation  and Persuasion Training

Please visit our website, www.pbsconsulting.com, contact us via email, peter@pbsconsulting.com or call us toll free, 877.727.6468.

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