Hey, you don't suppose they really are our greatest assets, do you?
Remember last March, when Circuit City fired 3,400 salespeople with the intention of replacing them with lower-paid workers? As it turns out, that wasn't a very good business strategy. The consumer-electronics retailer has struggled ever since and senior officials are expecting the company to lose money this year. This week, analysts downgraded Circuit City's stock and blamed the company's weakened sales performance on management's decision to fire its most experienced employees.
Now, in an act even more impudent than the March firings, Circuit City is asking those former employees to come back and help revive the company's sales. Circuit City spokesperson Bill Cimino told Reuters, "In a lot of cases, we've completely changed how our stores operate. We've got a better career path now for associates."
I don't know how many workers aspire to a path where the company fires you to save 51 cents an hour and then, with its back against the wall, asks you to forgive and forget the eight-month interruption they imposed in your career. As one analyst put it, at Circuit City, "execution remains a significant concern."
Now, in an act even more impudent than the March firings, Circuit City is asking those former employees to come back and help revive the company's sales. Circuit City spokesperson Bill Cimino told Reuters, "In a lot of cases, we've completely changed how our stores operate. We've got a better career path now for associates."
I don't know how many workers aspire to a path where the company fires you to save 51 cents an hour and then, with its back against the wall, asks you to forgive and forget the eight-month interruption they imposed in your career. As one analyst put it, at Circuit City, "execution remains a significant concern."
Labels: credibility, integrity, values
Bookmark this post on del.icio.us166,000 New Reasons to Focus on Retention
If you're still clinging to the where-else-can-they-go attitude toward employee retention, here's some news that deserves your attention: The U.S. economy added 166,000 new jobs in October, more than twice the number of jobs that analysts had forecasted. That marks fifty consecutive months of job growth. In fact, employers have added 8.3 million jobs since August 2003.
To be sure, if your organization makes automobiles or peddles subprime mortgages, it's unlikely that you've added jobs recently. But bad news in a few sectors should not leave managers feeling invincible when it comes to keeping their workers. Consider these numbers from the Bureau of Labor Statistics: This year, employment in professional and business services has increased by 368,000 jobs; the health care industry has added 400,000 jobs; and the leisure and hospitality field grew by 365,000 jobs. If you're in these industries, you're vulnerable to employee desertion.
All this job growth makes it easy for workers to shop for new employers, and many are taking advantage of the opportunities to jump around. According to the Bureau of Labor Statistics, 25 percent of workers have worked for their present employer for less than a year. What's more, only half of all employees have worked for their current employers for at least five years.
Don't let reports of mass layoffs at companies like Chrysler and Countrywide Financial make you think that retention will take care of itself. Retention matters now more than ever before, and strong leadership is vital to hanging on to your employees.
To be sure, if your organization makes automobiles or peddles subprime mortgages, it's unlikely that you've added jobs recently. But bad news in a few sectors should not leave managers feeling invincible when it comes to keeping their workers. Consider these numbers from the Bureau of Labor Statistics: This year, employment in professional and business services has increased by 368,000 jobs; the health care industry has added 400,000 jobs; and the leisure and hospitality field grew by 365,000 jobs. If you're in these industries, you're vulnerable to employee desertion.
All this job growth makes it easy for workers to shop for new employers, and many are taking advantage of the opportunities to jump around. According to the Bureau of Labor Statistics, 25 percent of workers have worked for their present employer for less than a year. What's more, only half of all employees have worked for their current employers for at least five years.
Don't let reports of mass layoffs at companies like Chrysler and Countrywide Financial make you think that retention will take care of itself. Retention matters now more than ever before, and strong leadership is vital to hanging on to your employees.
Labels: employees, leadership
Bookmark this post on del.icio.us
Author George Brymer's comments about the leaders who get it, and those who never will.
