Employee dictated marketplace

Some recent reports and predictions may have us believing that the Australian economy is regaining significant momentum - notwithstanding recent floods, cyclone and bushfire. This in turn could cause a tighter labour market over the coming months – essentially creating a skills shortage.

In times of skills shortage or perceived skills shortage employers have to be very careful not to get sucked into an ‘employee dictated market place’.

This phenomenon was very apparent before the GFC where the labour market showed little loyalty and employees were quick to move and try new opportunities. With the GFC and the instability and economic uncertainty of the last couple of years, employees have been less inclined to move.

With the economic upturn comes consumer confidence, but also ‘work force confidence’. A more stable economy makes for a more transient workforce as workers gain more confidence to move into new roles with new companies – simply put, they are willing to take more risks!

Employers should start to look at their attraction and retention strategies now to make sure that they are not left high and dry when they can least afford it. Reaction is always more expensive than preparation.