A valued workforce is a well-positioned workforce

Author John Taya Published 11 December 2009

As governments announce major infrastructure projects to support billion-dollar resource sector developments, and banks increase their interest rates beyond the Reserve Bank benchmark, employees start to get increasingly de-motivated and stressed.

During the economic downturn employees were told that their jobs were linked to the organisation's survival. Draconian working arrangements ensued: reduced working hours, enforced leave, unpaid leave and wage reductions. And employees were told that they should be grateful they were still working.

But now that the indicators show an upturn in economies across the world, employees find that managers are slow to reverse the reductions in their conditions of employment. Employee surveys show that there is a far greater proportion of the workforce than ever before who are looking for jobs outside of their current organisations. If this movement of employees eventuates there will be a significant disruption to the operations of organisations.

Smart employers used the economic downturn to build stronger relationships with their employees. They acknowledged the cyclical nature of the economy and knew that times would improve – particularly with growth in China and India and their reliance on resources exporters. These employers focussed their energies during the quiet period on attracting and retaining employees, developing their internal capabilities and positioning themselves to take advantage of the better times they had forecasted. They had made some very clever investments for the future.

The challenge for organisations today is to work out the type of workforce they have. Are they highly motivated, with the right skills and development to take full advantage of the opportunities ahead? Or will they be faced with the dire prospects of skills shortages as they lose employees to competitors? Unfortunately, organisations in the latter category have very little to look forward to as it is highly unlikely they will be able to attract the talent they need. They may also find that the boom times ahead cause greater problems than the recession they left behind.

Organisations need to have people management as a strategic initiative alongside its product development, market segmentation and financial management. Managers have to recognise that one of their key roles is motivating, engaging and supporting their employees. They have to look at some of the untapped components of their workforce such as women and young people, and design their work around these invaluable resources accordingly. Working arrangements are a good starting point: greater flexibility in working hours, staggered hours, periodic or project employment, and so on. Offering incentives such as child-care facilities and travel allowances also play a big part in gaining employee loyalty.

Above all, employees must feel respected and valued. No amount of incentives or initiatives can persuade an employee to stay with an organisation as much as this.