Firms may see talent exodus as economy recovers

The old problem of talent exodus may come to haunt companies once again when the economy recovers, if they do not take steps to attract top talent and retain employees now, a study says.

According to a study by global online employment solution provider Monster.com, a dramatic difference exists in perception of employers and workers about the impact of current downturn and "may potentially lead to employers facing mass talent drains as the labour market begins to turn."

The research report prepared in association with US think-tank Human Capital Institute (HCI) found employers are vastly overrating the morale of their employees with 84 per cent of surveyed indicating a belief that their workforce was content with simply having a job.

In contrast, only 58 per cent of workers feel in the same way as their employers, the report stated.

"While this environment has created a prime opportunity to acquire top talent and increase selective hiring, it is also a time for employers to prepare their workforces strategically for moving forward in a redefined, healthier economy," Monster.com senior vice president and chief knowledge officer Jesse Harriott said.

"However, to do that, they need to better understand the mindset of their employees. As the economy rebounds, those workplaces that have not invested in their people could face a mass exodus of employees, potentially crippling the business," Harriott added.

Further, about 57 per cent of workers believe employers are exploiting the recession to drive longer hours and lower pay from their workforces.

"Today's employers feel that employees are loyal due to the economic times, but the reality is they are not," the report stated.

"Because of this, there is a strong likelihood that when the economy turns for the better, employers could find themselves with valued employees jumping ship. This puts pressure on them to put retention measures in place now," it added.

About 58 per cent of the workers surveyed believe employers are less concerned about employee retention, the Monster.com survey said.

Besides, 43 per cent of workers believe employers are now less tolerant of dissent and challenges to authority.

Meanwhile, only 26 per cent excuse their employers for requiring layoffs and longer hours because they believe their employer's hands were forced by the recession.

About 48 per cent of workers said their productivity had been affected by a fear of being laid-off, it added.