Dangers of relying on recession to retain staff

Employers shouldn’t rely on the recession as a way of retaining staff. And employees who worked for organisations that rely on the ’you should be grateful to have a job approach’ were, in fact, biding their time and would leave when better opportunities arose.

These were two of the key messages to emerge from a breakfast seminar held by Kelly Services in the City of London last week.

Drawing on the results of Kelly Services Global Workforce Index survey, which found that following the recession, more than one in four (28%) of UK employees felt more loyal to their organisation, Calvin Cox, marketing manager at manager at Kelly Services, said the reality was more complex. “There is a big difference between those who feel loyal and those who are trapped,” he said.

The survey found that those workers who are less loyal to their employer following the economic downturn cited as reasons: poor management; low company morale; and poor communication.

Lisa Blinkhorne, head of HR at contact centre company Converso, said that competitors were enticing some staff with higher salaries.

However, the grass wasn’t always greener, she said, as the staff found they weren’t getting the same level of responsibility as they enjoyed at Converso. “Offering more money is often covering the cracks,” added Shane Green, UK operations manager at Kelly Services.

Gerry Peyton, director of HRplus at law firm Hammonds, said that line mangers were often afraid to discuss salaries with employees who might be wanting to move because they lacked detailed information about salary levels. They also lacked detailed information about jobs, which might pay more than the staff member’s current job, but actually involved working longer hours or involved a greater commute or other lifestyle changes. Peyton said it was important to understand what motivated individuals to apply to and to remain with your organisation, as different groups held different attitudes.

The survey found that in the UK, for example, following the recession, 30% of ’Gen Y’ said they were more loyal, compared to 25% of Gen X and just 22% of Baby Boomers.

APPOINTMENTS: 14-18 APRIL 2025

This week’s appointments include: Eventus Recruitment Group, Matrix, SPG Resourcing

People 14 April 2025

Californian master plan calls for new statewide collaborative to align education, training and hiring needs

In the US, the state of California is proposing to launch digital career passports for the labour market.

Legislation 14 April 2025

Recruiter Searchability transitions to employee-owned

Tech recruitment firm Searchability has announced its transition to employee ownership via an Employee Ownership Trust (EOT).

Contracts 8 April 2025

FINANCIALS: Staffline results exceed market expectations

Recruitment group Staffline has announced a strong performance for the year ended 31 December 2024.

Financials 8 April 2025
Top