Engaged employees = high-performing organizations: disengaged employees have been found to be I of the biggest threats 10 successful businesses, whereas engagement--building a mutual commitment between employer and employee--results in just the opposite.

• Author: Kelleher, Bob
• Position: Human Resources

Many business leaders and chief financial officers have acknowledged the tough times driven by (he economy these past two years, while expressing relief that their employees are "hanging in there," as they note voluntary turnover numbers stand at record lows. But beware--these turnover metrics might change. There is a high probability the company's work environment may not sustain itself when economics improve.

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The past two-plus years have taken their toll on many organizations. Training budgets have been slashed, wages frozen and promotions delayed as employees were asked to do more with less. With companies in survival mode, employees had no place to go so they stayed put. This lack of mobility, coupled with fear and insecurity, has resulted in historic low staff turnover in all industries.

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Workforce experts are reporting that most companies reduced their voluntary turnover by two-thirds (a "normal" rate of turnover per year that was previously 15 percent is now 5 percent). However, contrary to statements in December 2010 by Federal Reserve Chairman Ben Bernanke on the television show 60 Minutes--during which he predicted that the current high unemployment rate will remain for the next four years--significant activity is being observed in the job market.

At the same time, the recent economic travails have left many angry, disengaged employees who are now reenergized to start looking for a new opportunity--elsewhere. Employees are gaining confidence and looking for new jobs. This, in turn, should rejuvenate the job market, creating the necessary churn to jump-start the economy.

Signs of a Recovery

The Dow Jones Industrial Average had its best December in 20 years, as the market reached 11,700 and continued its upsurge through February to more than 12,000. There is growing optimism that the economic turnaround is solid. The Corporate Leadership Council reported in its HR Quarterly News and Trends (Q2 2010) that only 25 percent of employees are displaying high levels of "intent to stay."

And, as survey results reported in December by the Economic Intelligence Unit note, 84 percent of C-suite executives who responded to its survey said that "disengaged employees" are one of the biggest threats to their business.

Evidence is growing that significant job movement is anticipated this year, at which time many companies will unfortunately realize there is a price to pay after the era of layoffs, salary...