As local companies are starting to emerge from the declared economic slump in the last few years, they are finding that 2011 is going to bring tough challenges when it comes to managing employees. With turnover rates and hiring trend rising, a large and over-qualified pool of potential applicants and an employee base that has been silently suffering through the impact of the recession, local consultant , anticipates that many companies will find 2011 heralding a period of dramatic employee shifts.
Working with PI, a global leader in human capital analytics, Predictive Results has identified three questions companies need to be considering as they begin the recovery process and plan for success in the New Year.
“Coming out of a recession, many companies are not fully in sync with their employees anymore and are likely overlooking some significant risks and opportunities,” notes . “At a time like this, it is critical not to assume you’ve got all the answers. This is where tools like personality assessments are key, offering tangible data to map out individual and team dynamics in a way that, in my experience, has led to surprisingly successful results.”
Based on local success with local companies, Steve Waterhouse and his team advises companies looking to set a strong foundation for growth in 2011 to focus on the following three questions:
1. Who’s at risk of leaving – and what will it really take to keep them? In a rebound environment, companies risk rapidly losing the high-potential talent they will need for future growth. Impact on future growth aside, the cost of losing an employee can have a major impact on your bottom line. The U.S. Department of Labor (DOL) estimates it costs a company $370K to replace one employee with a base salary of $90K per year.
“Employees who are more likely to leave can be reliably identified via combinations of factors including career direction, motivation and job fit. Find a way to learn more about what motivates each employee – you’ll be surprised at the variety of answers,” adds .
2. How can I reset my team without derailing our progress? When faced with tight budgets, smaller staffs and market turmoil, an “all hands on deck” approach is often required, but it is not an environment that can be sustained. Instead of trying to put things back the way they once were, take advantage of the opportunity to rebuild teams and roles, tailoring responsibilities based on natural employee behaviors. Not only will your employees immediately see the difference, but you’ll find it easier to foster innovation, engagement and employee commitment.
3. Who or where are your future leaders? Leadership development is registering at the top of executive and manager priority lists in companies of all sizes, but can be an area of missed opportunity when decisions are made without the benefit of practical insight or direction. Only those companies that can clearly define and articulate the skills needed for future leaders can best identify the candidates best suited to these roles.
“Too often companies overlook employees from within their ranks because they couldn’t see their qualities beyond their current role. Combined with a highly-skilled and competitive talent pool created by the downturn competing for the few open positions, it makes it more difficult to clearly delineate who is best suited to lead in two, five or ten years,” concluded Mr. Waterhouse.
Companies looking to learn more about new ways to approach 2011 and how companies in their industry are managing new challenges can view case studies, expert video discussions on this site and to learn more about how tools like the Predictive Index personality assessment can help.