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December’s employment numbers

 blew analysts expectations out of 

the water. Perhaps the news rustled

the moat around the corporate

kingdom’s C-Suite. (Ok, maybe just

a ripple) We’re certainly not out of 

the waters of a struggling economy.

But with unemployment falling for

the fourth month in a row, talent

retention concerns might make

more of an appearance.

Most employees are glad to have a

ob these days. There’s this

unwritten mandate that has reigned

since the recession; corporate is

king, companies are doing more with less and underlings just have to deal

 with it and eat porridge. But if the C-Suite ignores improving economic data,

might they be dethroned in a workers rebellion?

“I think 2012 is the year of the payback, meaning that all the slashing and

 burning of the workforce has severely wounded the ability to motivate

employees,” says Irwin Kellner, Chief Economist for Marketwatch.com.

 While corporate profits are doing well, Kellner says the numbers can’t grow at

the same rate if companies let go or use fewer workers. He warns there will be

consequences, such as lower productivity, less engagement and talent fleeing

to competition, if management doesn’t launch incentives to retain skilled

 workers and take the 24/7 stress down a notch.

“Workers are afraid but it doesn’t mean they are going to work their tails off to

come up with the next I-phone,” adds Kellner.

The Numbers

If current economic data is a harbinger of things to come, perhaps corporate

 America might be a bit more concerned about retention, instead of burning

 workers to a crisp. Let’s break down the numbers:

 

FORBESWOMAN  |  1/06/2012 @ 10:58AM | 6,827 views

C-Suite Beware: This Could BeThe Year Of The Employee

BacklashJudy Martin, Co ntributor

 Work in ProgressCAREER TALK FOR WOMEN

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Unemployment fell for a fourth time in a row to 8.5%, it’s lowest point in nearly 

three years.

There’s been an uptick in the number of Americans quitting their jobs since the

recession began in December of 2007, according to the Labor Department.

The BNA Annual Economic Forecast, (BNA tracks and analyzes legal, regulatory 

and business information) shows the U.S. economy improving, albeit with limited

 job creation, expected to increase in the second half. Also, modest gains in private

sector workers’ hourly compensation.

The rate of layoffs is lower than anytime before the recession.

The Uncertain Economy 

 While conditions remain tenuous due to the European debt crisis, the

mortgage meltdown, wages not keeping up with inflation and the unknowns

of numerous political footballs, including the payroll tax cut debate – it is an

election year. A factor that Kellner says is cyclically positive in nature. Election

 years are generally good for the economy. Both camps tend to play better

together in Washington.

 While there’s a cautious air of optimism, more than 13 million people are still

unemployed and more than half of them have been out of work for more than

six months. Kellner says uncertainty across the board can sway the economy either way in 2012 as he writes in his Marketwatch.com column,  New year’s

surprise for the economy? But the slight uptick in the “quit” rate is very much

on Kellner’s radar as he says it’s an indication that employees are gaining

more confidence that they can find a job elsewhere.

“The rising quit rate may be the first sign that the balance of power is changing

in corporate America between the executives and the underlings,” says

Kellner who adds, “The grandiose plans that the corner office has in terms of 

creativity might have reached a limit.”

Incentives to the Rescue?

Fringe benefits like work-life initiatives, retraining, education or wellness

programs (like stress-reduction), are already on the radar of more progressive

companies. But perhaps such incentives should be shouted from the

corporate kingdom’s bell tower in a call for better employee engagement and

 wellness in a stressed-out working culture.

“In the final analysis, it doesn’t matter how much technology you have, if 

 workers are exhausted and hanging on to their jobs by their fingernails,” says

Kellner.

Is all this economic news indeed a harbinger of things to come? Kellner says

it’s the job of the prognosticators to figure that out. But where there’s smokethere just might be fire. The C-suite might do well to wake up and smell the

coffee. If they don’t, it might be the smell of their employees burning out

instead.

re the numbers a fluke or a harbinger of things to come? Will the C-Suite’s

interest be piqued? 

Please check out my personal blog at WorkLifeNation.com and friend me up

on Twitter: @JudyMartin8

This article is available online at:http://www.forbes.com/sites/work-in-progress/2012/01/06/c-suite-might-wake-up-to-smell-their-employees-burning-in-wake-of-new-jobs-data/