FreshMinds’ World of Work 2009: as featured in HR Magazine this morning

In the current economic climate, you might think that your employees are a safe bet. With a competitive job market and a last-in, first- out policy at work in many firms, they’re unlikely to jump ship into those shark-infested waters, aren’t they? You might want to think again…

FreshMinds and HR Magazine’s newly published research into the impact of the recession on employees makes grim reading for employers. The picture that emerges is one of an unhappy workforce biding its time until the job market picks up. But we see this as a great opportunity for companies to reengage their staff and share a vision for their organisation as we move into a recovery phase. It’s not too late to reenergise your team and reduce churn in 2010.

Today FreshMinds Talent and HR Magazine publish an in-depth, high-impact research piece into the world of work in the UK as the recession starts to ease. It’s just over a year to the day that the Lehman Brothers collapse triggered a worldwide economic crisis. However, the threat of redundancy has been hanging over employees for over two years, and the study shows that this has taken its toll, leading to widespread dissatisfaction. We expect to see some significant changes in the workplace as employees stop moaning about their jobs and start to look to new opportunities – and interestingly new sectors. We would suggest that as the job market starts to improve in Q1 2010, the ‘power pendulum’ that has swung towards managers in the last 12 months will swing back to employees. This will change the landscape of employer/employee relations dramatically, and employers must adapt to survive - and grow - through this step change.

Key findings of the survey:

• 64% of employees across five different sectors (retail, financial services, public sector, professional services, and TMT - technology, media and telecommunications) say the recession has specifically prompted them to think about changing their career. (In the financial sector this is as high as 75%; in the retail sector: 73%)

• 45% of employees say they regret their chosen career path (in the financial and retail sectors: 50%)

The research finds significant appetite amongst workers to change sectors completely:

• 15% of staff say they now want to work in a completely different sector. (In the retail sector 20% want to work in a different sector)

• 25% of those in the financial and retail sectors believe the recession has caused their skills to become outdated

But it may be a case of wishful thinking - most sectors believe other sectors are better than their own:

Peter Crush, deputy editor on HR Magazine, said: “This survey is the first definitive proof that the recession is causing employees to radically rethink their entire choice of career, with many regretting their chosen jobs, and a quarter of employees believing they need to reassess their skills to succeed in a post-recession world.”

He adds: “What’s worrying is the fact workers from all sectors believe anything other than their sector is more secure. This obviously cannot be possible. This survey shows workers really do think the grass is greener, especially in the public sector – which has largely escaped job cuts. Three out of the five sectors we surveyed most wanted to work there. The problem is that the public sector is one of the most likely sectors to suffer hitherto un-experienced job cuts in the next six months.”

Other findings

• Britain is working harder in the recession. 47% of employees across the five sectors say they are working harder than six months ago.

• 60% of people are worried about being made redundant as job satisfaction plummets under the constant pressure of the current economic climate.

• These largely unexpected ramifications of the recession are threatening to curtail entrepreneurship and innovation in the UK.

Now is the time to hold on to the brightest and best

We argue that now is time for employers to work harder than ever before at retaining and reengaging their employees. Listening and understanding their feelings and ambitions is an important part of this. So, too, is painting a picture of what your company or organisation will look like after the recession. This will give them a sense of the exciting ways in which their career can develop when Britain slowly moves back into growth.

If you would like a copy of the survey or would like to come to a breakfast briefing with FreshMinds Talent and HR Magazine please email us with you name and company and we will email you a copy.

 To read the feature in HR magazine, click here.

If you have any comments or would like any more information about the research or improving employee retention, please give us a call on 020 7692 4300.