As employers report the first positive signs in the recruitment market, they are on the verge of suffering a mass exodus of talent with staff poised to move jobs - or even sectors - when the upturn comes. According to exclusive research for HR magazine by FreshMinds Talent, 24% of staff are dissatisfied in their jobs, almosthalf (45%) regret having chosen their current sector and 64% said the recession had made them think about moving sector. These findings arebacked up by financial recruitment specialist Parkside, which found 26% of accountants will ' definitely' move after the market improves and 29 % are considering moving.

The news comes as recruitment firm Manpower predicted a 2% rise in recruitment between October and December this year, with 80% of firms saying no more redundancies are planned during this period.

Stephen Bevan, managing director of The Work Foundation, explains: "Unemployment is still going up and it will take longer for the j ob market to recover than the economy. So firms will not see any real exodus for ayear or 18 months."But, he adds: " Talented employees have more labour market power, so if they want to change jobs, they will experience demand however the job market is faring."

Last month in his address to the TUC Congress, the prime minister, Gordon Brown, said spending cuts would be needed in the public sector to bolster the economy.

Richard Crouch (pictured), head of HR at Somerset County Council and lead officer for leadership and organisational development at the Public Sector People Managers Association, says the situation could be "dire" and the sector is under direat of losing talent. He adds: "The private sector will experience an upturn as the public sector finds itself clamouring to save money. I think staff in the public sector- including some who have moved from the private sector during recession -will jump to where the grass is greener."

According to Bevan the best way for employers to retain this volatile contingent of staff is not through increasing pay but providing autonomy and development opportunities. "Pay will not improve loyalty. Golden handcuffs are not going to work now,"he adds.

Copyright Haymarket Business Publications Ltd. Oct 2009

(c) 2009 Human Resources. Provided by ProQuest LLC. All rights Reserved.

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