Employers beware: Change is coming

There are definite stages of change before, during, and after an economic recession when it comes to the employment industry. In 2008, we had talked and read about the leading indicators that an economic collapse was on its way. There certainly were signs everywhere that a severe crash was going to take place, however, most people decided to ignore these signs. People continued to spend, demand the world, and planned for the money trees to keep producing never ending cash.

Everything we wanted, we got, which is what propelled us into the actual recession. We crashed, hard! Employees were laid off, companies went bankrupt, and regular people had to learn to scale back. No more raises, bonuses, or gym memberships for those employees lucky enough to have kept their jobs during the last year. It takes about a year for a recession to really impact the employment world. Laid off employees usually have about a year’s worth of employment insurance, and even though the benefits can be quite a bit less than a regular wage, it is generally enough to cover basic human needs.

Change is never easy, so it takes some time to settle into collecting employment insurance, not going to work every day, finding other things to do, and associating with new people. Eventually, people get used to this new way of life, but the benefits do run out! About a year later, uh oh, no more money coming in, benefits are getting cut off, and the panic sets in. The unemployed need to find jobs.

This all started a few months ago, as the beginning of the second stage that follows the recession kicked in. It’s a time of economic recovery, when companies are beginning to rehire, but at a lower wage, and job seekers are willing to accept anything, because they are desperate. But employers beware, because we’ll soon be into the third stage following the recession, where employees who settled for anything and the employers who paid too little will clash, and frustrations are going to mount!

Employees will start flipping jobs for as little as 25 cents more an hour! Yikes, here we go again. Employers are going to get very upset when their employees who committed when in need, will soon be in demand and will leave their jobs for the smallest pay increases.

Be prepared employers, this time is quickly approaching. Employees be ready, and give your employers reasonable notice. Does anyone remember the pickle we got into before, where there were too many jobs, not enough job seekers, and benefits and payroll got way out of control? Did we learn anything in the last couple of years? Let’s hope.