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SINGAPORE: As the global economy shows signs it could be emerging from recession, companies around the world are looking to hire again.
But even as these firms contemplate possible expansion plans, some experts said they may be in for a nasty surprise. They said sectors which have been worse-hit by the financial crisis could face an exodus of staff as things pick up.
Many companies around the world have cut pay and staff in a bid to survive the economic downturn. But observers said such measures may result in a loss of attachment and loyalty from employees even after the economy begins to recover.
Alison Baird, client director, Asia Pacific, Alexander Mann Solutions, said: "I think there is a real risk for a lot of organisations. I think those who are very talented, there is certainly a risk for those organisations. We are already seeing an exodus in employees from organisations and those that are fairing better are certainly gaining even as we speak.
"There is some movement and we expect that to continue. I guess employee engagement that employers need to do becomes important when you're trying to retain your top talent."
This loss of staff could be costly. Market watchers estimate that replacing each employee can cost firms almost 2.5 times their monthly salary. And there is also the impact on staff morale as colleagues leave.
Experts said firms should ramp up communication to create greater affinity with staff as the job market improves. This could take the form of management blogs and other communication tools.
Tim Hird, director, Robert Half International, said: "One thing this difficult environment has created is that the expectation of employees is much broader then pure compensation. Job seekers are not just looking for a competitive salary and financial stability and accelerated career opportunities.
"They are looking for very strong leadership and managerial skills from the bosses that they are working for so companies really need to challenge themselves."
In the last six months experts said companies have been hiring mostly critical hires when replacing staff. But for the first time in recent weeks, organisations are starting to make strategic hires, creating new positions for business growth. - CNA/vm
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