Labour market beginning to strengthen?

Last week's release of the ANZ job advertisements data for August and the announcement that the unemployment rate was steady at 5.8% was better news than even Employment Minister Julia Gillard was expecting. The economic news suggests that stronger economic conditions are starting to flow through to the labour market.

Job advertisements jumped 4.1%last month which was the first monthly rise since April 2008, although the result is still 48.1% lower than the same time a year ago.

And the unemployment rate remained at 5.8% as newspaper ads improved 5.5% and online job ads rose 4%. Earlier in the week Julia Gillard had expected the rate to increase.

So the labour market could be on the mend sooner than expected. The banks and financial sectors are expected to start employing first and later, professional service organisations. And this means that there will be other organisations wanting to employ your staff and you need to make sure that you are better at keeping your staff than competitors are at poaching them.

What are you doing about keeping your staff that may have become disengaged through the GFC because of overwork, fellow colleagues being retrenched, uncertainty?

People don't leave a happy marriage

The other day we were asked by an organisation we work with to provide a list of the top 10 reasons why people leave organisations, based on the last 9 years of our research into Australian employees. The organisation was using the list as evidence for their managers that people aren't just leaving for more money, which is a common perception amounst managers in all organisations.

And the fact is that people usually don't leave a happy marriage - or a job where they are happy.

Something triggers an employee to start looking for a better offer and we call that a 'disconnection event' which can include a disagreement with a colleague or feeling undervalued by a manager or any change that makes the employee think 'I need more money to put up with this'.

So the top reasons why people leave are;

1. Manager practices (lack support/feedback/career help, over-managing, under-managing, incompetence)
2. Lack of career opportunities (actual or perceived)
3. Lack of challenge or variety (including lack of learning)
4. Pull factors (change of career, spouse relocation, travel, parenthood)
5. Task issues (dislike role component, repetitive tasks, too low skill level)
6. Conflict with a colleague or client
7. Remuneration (perceived internal inequity, commission structures)
8. End of a project/uncertain future
9. Lack of flexibility
10. Fellow employee leaving (that they enjoy working with)

Note: This list is based on over 6,000 interviews across many sectors over the last 9 years.

Do your managers know that they are the main reason why people will leave? Our Retention Agents Program is coming up for managers in October. Which of your managers would benefit from knowing how to keep their team longer and performing better?

Uh oh.... the economy is picking up

The raft of positive economic data released lately and the generally better than expected reporting season from Australian companies has boosted expectations for a recovery, just around the corner. What does this change in sentiment mean for Australian employees and the talent market?

This week's Business Review Weekly had a really interesting article about professional services firms and the effects of the GFC on their talent. KPMG's HR chief, James Allt-Graham, said that the professional services sector has endured the downturn by increasing the work load of employees and introducing initiatives like flexible work programs, nine day fortnights and leave without pay, etc. However, these initiatives have also lead to a disengaged workforce.

He also said that because the banking sector will pick up before the professional services sector, the banks and financial sector organisations will be able to throw more money at disengaged employees in the professional services sector.

So the challenge is now on engaging and retaining high value employees and making them what we call 'poach proof'. How do you do that?

Firstly, managers need to be equipped to deal with a disengaged team and understand how they can have conversations that will engage and retain the high performers. See here for how we facilitate conversations with High Value Employees.

Secondly, collecting data from former employees using high quality exit interviewing techniques and then analysing the results to extract specific issues will allow you to understand the real reason people are leaving. Yes, people may take another job because of more money but there is always another reason why people start LOOKING for other opportunities. See information here about how we collect high quality data from former employees.

Thirdly, the organisation needs to implement proactive policy and communication initiatives to re-engage the workforce and address the reasons why people will leave. This is easy once the data shows the specific reasons and can be the basis for your retention strategy.

What percentage of your workforce is disengaged and how many high value employees would leave you if they could? List them: that list needs to be your biggest retention priority.