When the going gets tough...

The media are convinced about it and the Liberal Party is too. Australia is experiencing a downturn. Interest rates are up, house sales are stagnant, petrol prices are high, retailers are taking out second mortgages, tunnel operators are going broke, tourists are staying away in droves, Macquarie Bank and B&B aren’t as vocal as they used to be and even Harvey Norman’s getting worried. So, as we cringe when the ‘empty’ light on the petrol gauge suddenly illuminates, scrutinise the small car ads, scowl at the price of vegetables for the family dinner and plan a nice holiday in a caravan park close to home... let’s look at what’s happening in the world of employment.

A skills shortage still remains. If you can operate a bulldozer in a quarry or help engineer a new mineshaft, you’ve got it made. For the rest of the country though, the good times are rapidly disappearing about as fast as our ability to beat the All Blacks on their home turf. When things get tough with the economy, companies batten down the hatches, relieve themselves of poor performers and misfits, and job ads start to disappear.

Employers’ focus is now on keeping their top employees engaged and happy. Replacing good employees who leave is going to become much harder. This is where employer branding comes to the fore.

When things start getting tough in the jobs market, employees tend to stay put. Moving becomes more of a risk. The trend will be for employers to take stock of who in the company is performing and who isn’t. Guess what’s going to happen to those who aren’t performing? They’re the ones who are going to be out there looking for new jobs. And if you’re not careful, you’ll be the employer who they finish up with! One thing is certain, the good employees will still be asking for more money. And they’re going to be more confident that they will be harder to replace in the current climate.

So where does that leave you as a responsible and concerned employer? The strength of your employer brand is going to be under greater scrutiny. More than ever will you need to demonstrate that you are differentiated by having a strong employment proposition based around a solid reputation, values, vision and messages that you are communicating effectively both internally and to the marketplace.

Those companies with strong employer brands will gain significant advantage by being able to keep in place high performing talent. How strong is yours? In these changing times, it is now critical to invest in your company’s future by protecting your most important asset – your employees.

Tony Heywood is a Fellow of the Design Institute of Australia, founder of Heywood Innovation in Sydney Australia and joint founder of BrandSynergy in Singapore.
tony@heywood.com.au
www.heywood.com.au
www.brandsynergy.com.sg