Welcome to AFR BOSS

SUMMER issue out now!

Are you part of the disgruntled underbelly? Or are you stumbling while trying to motivate and manage them? After the short-lived shock of the downturn many are nursing pent-up grudges, and end of year is often the time things come to a head.

Companies that imposed blanket cuts in hours and wages when in survival mode are now trying to figure out how to navigate their way back to something like normal in the face of ebbing enthusiasm of their teams. Engagement levels have plunged for many. Key execs who played it safe and stayed on while their pay and bonuses were cut are now eager for the siren call of the headhunter. Some sectors barely missed a beat and the skills shortage barely retreated.

There is another effect. Under-employment is an unforeseen outcome of the downturn, according to a recent research paper by the Donington Group. To get the true picture you need to add the unemployment rate to the under-employment rate (essentially, those who are working less than they'd like). In the US, this comprises about 17 per cent. Roy Morgan research estimates that in Australia it's about 14 per cent.

As the economy improves, not all employers will be willing to reinstate hours and other conditions. And many employees who have adapted to the change will be reluctant to return to the five-day grind. But what of the consequences for organisational productivity if we have a workforce that is content to work less, rather than more? What impact will these changing habits have on the engagement and productivity of an organisation, and on the appetite for increasing shareholder return?

This - our summer BOSS - aims to help with some space for reflection. We return on February 12 and in 2010, AFR BOSS also celebrates its tenth anniversary.

Narelle Hooper
Editor

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