That makes top employees vulnerable to poaching by other firms. Recruiter Bruce Allen, of Point B Search in Wakefield, recently lured a 26-year-old Boston sales executive into a new sales job that came with a higher earnings potential, more career advancement opportunities, and a shorter commute. At his old company, he was putting in extra hours and not getting the bonuses he had been promised.
“They kind of took advantage of the economy,’’ he said, “paying lower salaries and blaming it on the economy, and the company was still growing substantially.’’
But a year ago, he wouldn’t have considered leaving: “I felt insecure about what was going on out there. If I was going to jump into something, is it going to be there in a month or two?’’
Hiring and training new employees is a major expense, but disgruntled workers who don’t quit can also cost a company money. Disengaged workers cost US employers about $460 billion a year in lost productivity, according to Gallup research.
But keeping employees happy doesn’t necessarily require a big investment, said head hunter Joe Madden of Harbor Legal Search in Boston. It can be as simple as ordering in lunch on Fridays or reinstating the company picnic. “Surprisingly enough, it’s the smaller things that keep people in the door,’’ he said.
Even a simple “Thank you’’ goes a long way. A former human resources director said he was grateful to be laid off late last year because the environment at the 600-employee Boston nonprofit where he worked had become toxic. After the institution started struggling financially, raises diminished and workloads increased after about 50 people were let go.
One laid-off employee was an organizational development trainer, which meant fewer opportunities to learn new management skills after he left. On top of that, the president started pushing employees to launch new initiatives, but didn’t recognize their extra efforts.
“People said to me, ‘You know, a thank you would be nice,’ ’’ said the man, 64, who is still looking for work. “It’s so much easier to manage when things are going well.’’
K atie Johnston Chase can be reached at johnstonchase@globe.com
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