The Employment Churn
by Doug Coley
Rewind to 2009 thru 2011 – the Great Recession. Our economy was suffering. Companies were laying off people, downsizing, even asking their associates to take pay cuts to keep them employed. People that were employed were often doing the jobs of three people.
Corporate America became “lean and mean” to weather the economic storms. If a company had an opening, it was able to easily find someone within the unemployed ranks to fill the job. Many great people were unemployed.
The baby boomers’ retirement accounts took a big hit and those that had been considering retirement chose to put those retirement plans on hold and remain in the workforce. They were “sitting tight” until the economic storms passed and their retirement accounts improved.
Now, return to today’s marketplace. Companies have weathered the storms and the Great Recession. Companies are again flush with business. Their sales are growing and many are investing in new capital equipment, growing new divisions and acquiring new companies.
However, many companies have retained their scaled-down, “lean and mean” workforces. Many people in corporate America today are still doing the jobs of two or three. Companies have resisted the urge to increase staff and, now, the U.S. workforce is being taxed and asked to do more work with fewer people.
Our U.S. labor market for middle to senior level management has changed. Many baby boomers have seen their retirement accounts recover and are now setting dates for retirement. They are leaving the workforce and retiring.
We now have the “employment churn.” The employment churn is when one company loses a person and hires someone from another organization to fill that opening. Then, that opening will be filled with someone that is also employed and the “hiring snowball” continues.
People are leaving jobs to take new roles with companies today. Fewer people are unemployed. Jobs are being filled by employed people. Companies are having difficulty finding middle to senior management talent. So, within the ranks of corporate America, middle to senior management associates are able to find much better opportunities. Employed people feel more secure and safe to join a new company and make a change today.
If companies today do not offer a good culture and positive work-life balance, their associates will join another company offering a much more positive environment. Companies must realize that their associates have many more job opportunities than in recent past years since the great recession.
Stay turned for our next post about employee retention.