Economic Uncertainty is Boosting Worker Stability

June 1st, 2012

The global economy is made of a continuous cycle of booms and busts. Though key economic indicators hint at a strong economy ahead, the downturn in some industries has left an atmosphere of uncertainty in its wake. This feeling is held especially by workers, who have dealt with an array of negativity. That included a weak hiring market, stagnant salaries and increased workload, in addition to the threat of layoffs or being restructured out of a job.

Fear of the unknown

You’ve heard the old saying, the devil you know is better than the devil you don’t know. That phrase describes the way that some workers feel about moving on to a new opportunity. There is a reluctance to jump ship, so to speak, and workers have been willing to remain in place for the simple reason that the familiar and the known was more comfortable in a time of uncertainty.

Relying on seniority

Another factor that relates to worker stability is that employees who have long experience with a company are not willing to start in a new position at the bottom of the seniority ladder in a new business. In many industries, the last person hired is the first to be let go.  The more stable the economy becomes, a new phrase might come into play for employees, which is the grass is always greener on the other side of the fence. As consumer and worker confidence improves, they will be willing to take on more risk in the form of new positions, or even in entirely new career paths.

Stagnant skills

Even as the economy picks up, remnants of the downturn may linger in relation to worker stability. In an effort to cut costs, many companies have eliminated or greatly reduced educational benefits and job training opportunities. It doesn’t mean that these workers are behind the times, but it brings attention to the fact that some worker skills need updating. Once training and certifications are again a viable option, employees will find it easier to move up and move on in their careers.

Does the uncertain economy still have you concerned about the state of your workforce? Call on Olympic Staffing for its experience in managing your workforce through every stage of the economic cycle.