We saw some small improvement in the job market. A recent survey conductive by Insight Performance and the Small Business Association of New England also indicates some positive signs of recovery:
- 69% of those companies being surveyed stated that 2010 was a better year than 2009.
- 78% predicted that 2011 will be even better than 2010.
- 38% plan to offer base pay raise.
- 58% plan to add staff.
- 93% plan to retain or increase staff level.
It is nice to hear some positive news, but good news also comes with new challenges. Companies need a long term sustainable plan to attract and retain the best human capitals. During recession, everyone operates with a minimum budget in a “leanest-possible” organization. Chances are companies may end up keeping their A players and laying off most C or B players. When the economy is bouncing back, more companies are hiring, which requires companies to pay more attention to their existing A players because these top performers may go work for a competitor for a better offer. Retention management becomes a big challenge. A base pay raise will certainly help in some degree. In addition, what other tactics can help companies keep their A players? How do those reward or recognition programs work? What role does open communication between top management and employees play in retention management? What other tactics can a company use in retention management?
Another possible challenge is to manage employee relationships. Imagine that a company just laid off some A players’ “close friends” or “buddies” half a year ago but is now hiring new employees, what may those tenured associates feel about the company and the new hires? What can a company do to address this potential issue of employee relationships?
References:
Mobley, N. (2011, January 7). 2011 human resource small business outlook. Inc.com. Retrieved February 12, 2011 from http://t.co/wGb51y4
Picture was downloaded from GetEntrepreneurial.com via http://tinyurl.com/linchikwok02122011P
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