The major focus now is to overcome the negatives of last year’s recession

By Christopher Van Mossevelde 

HR professionals are positive about the economic outlook for 2010, according to a recent global survey conducted by employer branding company Universum. Nearly half of the respondents, from Europe, the US, and Asia, said that the promotion of their employer brand will be higher in 2010 than in 2009. One fourth indicate an increase in the amount invested for next year – an encouraging sign that employers will be active for 2010 after a rather dismal year!

The figures show that 60 per cent are positive, 35 per cent are uncertain and only four per cent are negative about next year’s economic situation. Although a certain number of HR professionals remain uncertain, and this reflects the caution that some companies may adopt for next year, employers will be recruiting again.

In comparison to 2009, the recruitment of recent graduates and experienced professionals is anticipated to increase next year. In the UK alone, 37 per cent of those interviewed said that graduate recruitment will increase, and 46 per cent said that the recruitment of experienced professionals will also rise.

Due to an eventual recovery of employment markets, employers also forecast an increase in employee turnover in 2010. Results show that the average expected attrition rate for next year is expected to be around 8.3 per cent. In comparison to 2009, the average is 7.8 per cent. In the UK market specifically, employers expect 13 per cent of employees to leave by personal choice this year. Their forecast for next year is 16 per cent.

On a regional level, the highest attrition rate to be experienced was noted for Western Europe at 10.9 per cent and the lowest rate for Central Europe at 6.5 per cent. For other regions, the forecast from highest to lowest is 10.1 per cent for the US, 9.7 per cent for Asia and finally 6.8 per cent for Nordics.

“Emerging from recession, it is important for every employer to evaluate its employer brand – both internally and externally,” said Anne Margrethe Mannerfelt, market unit manager Western Europe at Universum. “We have observed a false level of retention this past year, since professionals have not been eager to leave secure employment. However, there is a large risk that cut backs and layoffs have negatively influenced employee’s perception of their employer. At the same time, external competition for talent will become fierce once the economy turns around. In order to have a successful recruitment strategy, employers are realising that they need to focus on aspects of their employer brand – internally and externally, and across markets,” Mannerfelt continued.

Regarding the main employer branding challenges for 2010, open answers revealed concerns about dissolving the negative effects of recession. HR professionals are also greatly aware that acquiring talent will be even more difficult in the competitive business environment.

For all those that work in HR, employee turnover is expected to rise as the economy recovers. For this reason, employers will focus on two things: 1) the promotion of their employer brand and 2) on recruiting for 2010.