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Financial services firms, including dealer groups and advice firms, are switching from annual staff performance reviews to one every three or six months, according to employment agencies in the sector.
NSW director for recruiter HAYS Graham Doyle said the trend was being driven by the evaporation of the staff turnover associated with the boom and firms managing their bottom line during the downturn.
“What we are finding is that organisations’ natural levels of employee turnover and attrition have lessened significantly, particularly over the past nine months, and companies are obviously managing their bottom line.
“They are looking for performance from their staff to be at the highest possible level; there is a greater deal of focus and attention being paid to every aspect of the business.”
By contrast, Doyle said annual reviews were a reflection of a booming market. When everything is going swimmingly, everyone leaves things alone, he said.
“I would say it’s a process underway to ensure businesses have got the best people working in their organisation and to ensure people are very clear about the performance expectations required of them.
“This obviously creates a level of concern within the employees, but I think that concern is probably more overtly felt by those who don’t necessarily see themselves as a high performer.”
Rebecca Wallace, director of Launch Recruitment, which specialises in the agribusiness sector, said a “message is being sent through organisations that they are trying to drive best practice and not necessarily reduce headcount”.
“I believe my clients are managing their employees more tightly in the downturn and they are looking for return on investment; they are being more cautious on who they hire and who the keep in their business.
“But I don’t think employers are using this, as has been suggested, to manage out employees rather than having to make them redundant, which would make the cost more expensive for the employers.
“The climate will change and, ultimately, an organisation is only as good as its people, and they obviously want to be able to maintain their integrity in the marketplace,” she said.
