While the economy is not going to turn around overnight, sooner or later it will shift back into higher gear. When it does, employers are apt to find their skilled talent walking out the door.

Contrary to conventional wisdom, despite the global recession and rapidly rising unemployment levels, employers are already facing a scarcity of skilled talent. Consider this surprising statistic: in the midst of the worst recession in a generation or more, with 13 million people unemployed, there are approximately 3 million jobs that employers are actively recruiting for, but so far have been unable to fill. Those job openings are greater than the entire population of Mississippi. (Business Week, “Help Wanted: Why That Sign's Bad” 4/30/09).

As part of its May 2009 survey, Managing Talent in a Turbulent Economy, Deloitte shined a spotlight on talent retention. They found that in looking ahead to the end of the current recession, 52 percent of 319 executives surveyed worldwide predict an increase in voluntary turnover at their companies, while just 13 percent predict a decrease. Executives were most concerned about losing “high-potential talent and leadership” and “critical talent.” Specifically, 65 percent of executives report they have a “high” or “very high” concern about retaining high-potential talent and leadership in the year after the recession ends, and an identical number are either” highly” or “very highly” concerned about losing critical talent.

These studies are a clear indication that, once the economy starts to rebound, employers will find it even harder to recruit and retain the skilled talent they need. We are already seeing employees starting to question commitment to their current employer. In April 2009, Hewitt Associates surveyed HR executives at 518 U.S.-based companies and found that 47 percent believe that employee trust has declined as a result of the way their company has managed its recession-induced cost reductions; 37 percent feel that their organization’s handling of the economic downtown will make talented employees “much more” or “somewhat more” likely to leave.

So what do these findings mean? Employees have held tight during tough times and have taken on additional work to support cost cutting measures. They’re stressed about keeping their jobs, holding onto their house, and saving for their parents’ healthcare costs, their children's education, their retirement, and more. Cautious of the evolving landscape, they’re taking a deep breath and looking closely at their current work situation. They're asking themselves: is this really where I want to work? Do I ever want to go through this again?

For an alarming number of workers, the answer to these questions is “no.”

The disquieting
These questions aren’t pie-in-the-sky academic issues for a theoretical “what if” discussion. The statistics tell the disquieting changes in workers’ attitudes.

For example, in 2006, the Towers Perrin Global Engagement Study of 86,000 employees revealed that, while 58 percent were keeping their options open, only 15 percent of workers surveyed were actually looking to change jobs. This small number actually improved more than a year later in November of 2007 when the Gallop organization, which also gathers and tracks engagement and retention information, reported 46 percent of workers surveyed were completely satisfied with their jobs, 48 percent were somewhat satisfied, and just 6 percent were dissatisfied.

As the recession began to run full tilt in early 2009, things changed.

• In July, 2009 a Chartered Institute of Personnel Development in the UK survey of 3,000 employees suggested that 33 percent of workers wanted to change jobs and careers after the recession was over, with those in the banking, finance and construction sectors most likely to jump ship.
  
  
• Adecco Group’s latest Workplace Insights Survey confirmed that that 54 percent of employed Americans plan to look for a new job once the economy rebounds. The sentiment is even stronger among younger workers with nearly 75 percent of those between ages 18 and 29 reported likely to look for new jobs once the economy turns around.
  
  
• In May, 2009 Robert Half International and CareerBuilder surveyed more than 500 full-time employees and found that 55 percent plan to make a career change, seek out new employers or go back to school once the economy recovery is underway.
  

Where will you be when the economy improves? Will your organization have retained the best talent to compete in the better economy or will you be sitting in a conference room with disgruntled leftovers and lackluster talent?

Start having career conversations now.
In a company press release, Matt Ferguson, CEO of CareerBuilder talked recently about how best to retain the 55 percent of workers who plan to leave their jobs when the economy picks up. As he states, “In addition to competitive pay and benefits, showing a commitment investment in the professional development of employees will play a key part in retaining critical talent.”

I could not agree more. There’s no doubt that skilled workforce segments are likely to walk out the door for better opportunities. And, while a certain level of voluntary turnover is expected, organizations need to take steps now to retain their skilled talent. The first step? Engaging in meaningful, honest, and proactive career conversations.

To drive retention and have employees and managers who are meaningfully engaged, leaders need to initiate honest and ongoing career conversations with them – now! The sooner leaders begin a meaningful dialogue with employees and managers, the more effective they will be at retaining the skilled talent they need for the future.

This starts with taking the time to ask the right questions. Focusing on a few carefully crafted questions will generate a wealth of valuable information upon which to build career conversations with employees and managers. The answers will provide meaningful material for conversations about how employees and managers view their jobs, see their futures, and see their careers. Questions to explore include:

• How do they view their managers?
• How do they fit the organization's vision and values?
• What are their aspirations?
• What would they like and need to learn?
• What do they want to contribute to the organization in the future?
• How do they see their working environment?
• How would they describe their confidence in their leaders?

Leaders must know their managers and managers should know each direct report and what motivates them. By listening carefully to the answers to these questions, you’ll have a clearer understanding of how they see their relationship with the organization and what will motivate them to stay.

After all, to retain skilled employees and managers, you need to give them more reasons to stay than to leave. You need to tell them that you have seen their hard work and contributions over the past few months. They need to feel appreciated and valued throughout the organization. By engaging in face-to-face career development conversations, you can make sure employees and managers have a roadmap to the future and see how their contributions directly help the organization achieve its goals.

Take a look inward.
There are also several questions leaders need to ask themselves about their organizations to get a better look at what they’re doing now – and therefore what they need to do better in the future – to engage and retain their talent.

Short of gathering up your strategic talent, locking them in a room, and throwing away the key, you are well advised to focus on boosting employee engagement now in order to retain their services before the economy recovers, the job market expands, and more attractive employment opportunities emerge elsewhere.

Economic recovery is not going to happen overnight, but when the turnaround comes, many companies will find it challenging to retain their top performers. Leaders need to be looking carefully at the workforce needed for future organization strategies. You need to have conversations now with those people essential for future success. Let them know that you care, that you see how they pitched in and that you value what they’ve done during the past few months to help the organization. Discuss how best to keep them meaningfully engaged.

Dr. Caela Farren is the President and founder of MasteryWorks, Inc. - a leading Career Development solutions company for over 35 years. Dr. Farren is the author of "Designing Career Development Systems" and “Who is Running Your Career: Creating Stable Work in Unstable Times”. MasteryWorks, Inc. has been in a strategic partnership with Lee Hecht Harrison for over 15 years.

To learn more about how to engage and retain employees through innovative career development solutions, contact LHH today at 1.800.611.4LHH or visit www.lhh.com.