December 5, 2011

2012 advice: Hold your ground on benefits

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The Great Recession has been over, technically, for more than two years now, but everyone knows that it's "over" only in the minds of economists. In the real working world, where talented, qualified job seekers often take a year or more to find new work, the global financial crisis is still being felt acutely. While it's important to take on a job search by acknowledging the sober reality of the economic climate, it's also crucial to make sure that employers not take advantage of the situation by eroding pay and benefits in the name of belt-tightening.

That's why I was a bit dismayed by the results from a recent national report by staffing and human resources firm Randstad. In the company's Employee Attachment Index, more than 1,000 employers and nearly 7,500 full-time employees were interviewed about their expectations for career and job prospects for 2012. According to the survey responses, many of today's employees are confused about their ability to find a new job and may be too willing to give up critical benefits to make sure they stay employed.

On the one hand, many of the respondents in the Randstad survey had a rosier-than-expected view of the future. About three-quarters of the employees said that the companies they worked for have a "good future," and that 69 percent said they enjoyed their work.

However, the ongoing anxiety about the Great Recession became evident when they were asked about job security. Almost half said they expected to see a reduction in their benefits by the end of this year and 41 percent said they think their employer will lay off more co-workers in 2012. As a result, many of them are wisely taking precautions, including cutting back on expenses (40 percent), increasing savings (34 percent), checking job listing services (24 percent) and doing more networking (13 percent).

Most disturbingly, about a quarter of respondents were so nervous about losing their jobs that they were willing to make deep concessions, such as foregoing annual bonuses, working longer hours without extra pay, reducing certain benefits and receiving fewer vacation days. A smaller number were even willing to relocate, take a pay cut or suffer a demotion to avoid getting sacked.

This study reveals attitudes that sound depressingly like a continuation of the same predatory job market from 2009, in which many employers used the threat of massive layoffs to frighten workers into taking less pay and giving up most of the their benefits. However, savvy human resources people realize that this study should be a wake-up call for employers to step up their worker retention programs for 2012. As the unemployment rate begins to wane and economic indicators for 2012 improve, many of today's best employees may be ready to bolt at the first sign of greener pastures.

"Our research shows that 33 percent of highly engaged employees are likely to leave their companies next year if offered an enticing job," said Joanie Ruge, senior vice president and chief employment analyst for Randstad Holding US. "These are the employees that are the most valuable and the most beneficial to a company. As jobs start to open up, these employers will need to find ways to hold on to these valuable assets."

The Attachment Index also showed that about three out of four respondents think they will not be promoted in their current jobs next year. Rather than just accept such a fate, however, nearly half of the respondents said they would explore other opportunities as soon as the job market picks up, which they expect to see in 2012. Roughly a quarter of these highly engaged respondents said they would seek new positions in the next six months.

"Employers right now are looking for those employees that are going to make an impact on their business in 2012," Ruge said. "In the Northwest in particular, we're seeing increased job demand in the technology, aerospace and food manufacturing industries. These types of companies are looking for talented employees and making new hires."

So job seekers, remember this as you continue your networking efforts and interviews: The fact that jobs are scarce doesn't mean that workers must give up hard-won benefits that match their experience levels.

Employers are having just as much trouble filling positions with qualified candidates as you are having finding a suitable position for your interests. As the economy slowly improves, companies will realize that the overworked employees they do have will begin bolting unless benefits and pay improves. When this happens, they will have to scramble to fill those jobs and will be less picky when it comes to screening new candidates.

In the poker game of today's job search, 2012 will likely be the time to call employers' bluff about their ability to afford raises, benefits and vacation pay. Don't make the mistake so many Randstad survey respondents are willing to consider by negotiating away these basic perks. In the end, if your skills fit the employers' needs, it is the employers who'll be sweetening the pot to keep you playing at the table.

Randy Woods writes about job-search tools, networking techniques and other tips to help you land your dream job.

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benefits, economy, HR trends, negotiating

2 Comments

laurel keating on December 7, 2011 8:24 AM | Reply

Benefits are so important, when my husband died, my kids were able to still stay on my plan after they were of age, so that was good, I am sharing cause lots of people do not know this

Jennifer Olsen on December 7, 2011 6:11 PM | Reply

Benefits are an attractive part of a job so if you have to cut benefits or increase prices to your employees, you may want to consider adding inexpensive or non-cash incentives to “sweeten the pot” and keep your employees engaged.

When considering the benefits package you will offer to your employees in 2012 it is important to stay informed about and evaluate developments that affect what you are required to or able to offer.

We wrote about recent and upcoming developments in our recent article http://hosted-p0.vresp.com/415335/1374143935/ARCHIVE which can be found on www.resourcefulhr.com.

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