SHRM data from its human capital database indicates that the recession influenced hiring, turnover and profits. The data show that hiring plummeted by 30% from 33 to 23 as a median number of positions filled, while revenue per FTE declined from $200,000 in 2006 to $126, 984 in 2008 and net income declined by more than half -- from $1,648,000 to $800,000 -- during the same period. The data also revealed a decline in turnover, most likely because the scale of the downturn hit all areas of the job market, leaving few job openings for which to apply, even for educated and skilled job seekers. As such, employee turnover dropped from 16% in 2007 to a low of 8% in 2009.
If the job market begins to recover, organizations are likely to see their turnover rates begin to climb. This is causing some organizations to consider what they can do to avoid losing their most valued employees.
Concern about the impact that the long recession has had on employee morale and engagement will influence HR decisions throughout 2010. In the early part of the year, employers may be relying strongly on their current workforce, at a time when many may be reaching burnout or looking for opportunities elsewhere. Not only has the recession been a long one, with employees dealing with significantly heavier workloads for extended periods as their organizations have attempted to make do with leaner operations, but many organizations have implemented additional measures such as salary freezes, furloughs, reduced retirement and health benefits, and reductions in working hours.
For more analysis of turnover trends in post-recessionary economy, see the full version of Workplace Visions, available from the SHRM web site.