Employee relations - back to the future?

In the go-go 90's, the chase for talented workers saw companies diligently upgrading their compensation packages, programs and perks in order to attract and keep 'stars.'

But before corporate leaders, recruiters and HR departments decide that we've entered an era when employers again have the upper hand, they should think again.

A rude awakening awaits anyone dreaming of a return to the good old days.

Granted, signs indicate that the job market will get tighter and more competitive. And it's likely that many employees will no longer have the bargaining power to demand ever-higher salaries or outrageous perks - especially the average performers.

But even if we're witnessing a shift in power, there are several reasons why things never will go back to the days where employers could call all the shots.

1. Most 'under-30' workers only know one way of operating. They will continue to believe in a transient work environment where free agency is the norm and job changes are taken for granted - even encouraged. Notwithstanding the change in the economic and employment climate, these young workers will never exhibit the kind of 'nesting' behavior prevalent in previous recessions.

2. Employee expectations created in the booming 90's will not suddenly disappear. Though adjustments will certainly occur, it will be very difficult for companies to downscale or
eliminate their programs and benefits to pre-boom levels.

3. Despite all the talk of recession and job cuts, unemployment is still at historically low levels, and many companies still face a dearth of talented employees. As during the boom years, companies will face the unfortunate reality that the best workers are typically the most likely to jump ship.

4. Even companies making massive workforce cuts (General Electric, Daimler Chrysler) will have to focus more than ever on their retained employees - working to foster morale and commitment, so that the surviving employees remain focused, committed and productive.

5. Finally, intellectual capital will continue to be a driving force in the emerging economy, where people and ideas remain key assets for many companies.

Regardless what happens to the economy, it's unlikely that the employee/employer pact will return to the pre-boom era of 'company knows best' (just as it's unlikely the business sector will go back to the slower, more predictable days that pre-date the emergence of the internet). In fact, as the economy continues to struggle, solid employee relations will play a key role in overall company success. Indeed, Fortune Magazine recently noted that 'getting the best people and making them better' will continue to be a key prerequisite for success. A very true sentiment.

To succeed, companies must sustain - or even expand - efforts to engage workers through proactive, two-way communication and progressive employee programs and policies. As companies reduce their workforces, the focus must simply shift from hiring new people to retaining key players and ensuring they're productive. It is precisely during periods of economic turmoil, therefore, that companies should expand their focus on employees and seek to keep their top performers by promoting progressive, worker-friendly programs and policies. For PR agencies and consulting firms, this suggests that companies will continue to seek guidance and support in the field of employee relations and internal communications.


excerpt...published in April 16, 2001 PRWeek

Bernie Charland leads Golin/Harris International's employee communications consulting group, specialising in internal communications, change management and corporate reputation. Bernie has assisted a wide range of clients, across several industries, with a variety of internal communications needs - including mergers and acquisitions, announcements, layoffs, labour negotiations, re-engineering efforts and internal branding.