The leadership specialist is urging leaders to take action now to prevent their most valuable employees from moving on to new positions due to their lack of confidence in job security, and says that ‘this is one of the effect’s of country’s mass cull of jobs, and it will continue to ripple through organisations for at least the next 12-18 months”.

“The inherent danger in a credit crunch situation is that the good employees get enticed away in their search for job security, leaving the organisation in a very vulnerable position when it comes to driving the business forward”, explains Germain, a former Head of HR with over a decade of experience in managing the strategic and operational running of the businesses in a number of industries.

“With so much negativity in the air, employees often feel like they are going to be the last one’s to know what’s going on within their organisation, and so try to predict what is going to happen, often making assumptions based on inaccurate or irrelevant information. When there has been internal redundancies, good employees are even more likely to come to the conclusion that they’d better hedge their bets by leave before they are pushed”, says Germain.

Dynamic Transitions has devised a simple 6 point plan for leaders looking to drive employees forward during the credit crunch, suggesting that a very simple internal communications delivered by good managers who can empathise and engage with their employees, whilst continuing to provide valuable and morale enhancing training, will be the making of many organisations over the coming 12-18 months.

“Employees just need to know what is going on and feel like they are involved in the future of the business. Leaders need to think of this period as a time for reflection and focus. Employees need to see that the organisation isn’t just sitting back and admitting defeat but is fighting to build its position in the marketplace and that the team is a core part of the organisation’s future. If employees know that the business wants to survive, and they can see their role in determining its future, they are more likely to want to do all they can to save it”, says Germain.

You can download your free ‘six point plan to keeping talented employees during the credit crunch’ from www.developing-leadership.com/leadership-whitepapers.html. For further information or to find out more about Dynamic Transitions visit www.developing-leadership.com.