What Happens to Valued Employees During an Economic Upturn?

In a stagnant economy, employers may take their ability to retain seasoned employees for granted, not realizing that an economic turnaround can translate into a mass exodus of talent. Many on Wall Street are not implementing non-financial inducements (when giving sizeable bonuses is not possible) that inspire loyalty and organizational commitment. “It's the 20% of employees who do 80% of the work that bosses should worry about. Just as the most productive workers are needed now to keep businesses afloat, they'll be key to a company's transition back to a busier, more competitive economic environment,” according to Samantha Marshall. Demoralized employees that remained after mass lay-offs may be apt to leave a company that froze their wages and increased their workload when the economy improves and job prospects increase. For information link to: www.crainsny.com.

Source: Marshall, Samantha (9 September 2002). Urge to jump ship grows among employees; Just having a job is not enough when pay increases, positive feedback falls short. Crain’s New York Business, 18(36), page 27.