Mumbai: The companies which took harsh measures such as layoffs and pay cuts during the economic slowdown should be prepared to face major difficulties in hiring and retaining staff as growth gets back on track, reports The Economic Times.

Employee churn has picked up in the past three months in several businesses and Human Resource (HR) experts said how companies treated staff during the tough times would be a key determinant of attrition levels and the base of employer employee relationships

Among those who were left sadder, wiser and bitter because of the experience with an employer during the downturn is a senior official who left a top Fast Moving Consumer Goods (FMCG) company to join a leading retailer on a 50 percent higher salary. Within nine months, the retail firm scaled down expansion plans and transferred him to a remote location without any warning. He had then rejoined his former company.

"I will be a lifer at this company now. It stood true to its values and ethics. As for my other employer, I have been warning my friends and colleagues against joining even a group company at that place," he said requesting anonymity.

Anup Kumar is among the thousands who have been left feeling betrayed. Once hired by a top IT firm from the campus of a Mumbai institute, he received a terse email few months ago saying his recruitment had been put on hold. He has found a new job, but the memory of his unpleasant experience with the IT company will last long.

Radhakrishnan B Menon, Founder and Managing Director of corporate leadership consulting provider Leadership in Business Worldwide, says candidates have been keeping a close watch on the attitude of companies towards their employees during the downturn.

"Organisations that recruited at campuses and stuck to promises made have earned the respect of job seekers. At the end of the day, jobs are psychological contracts and an organization's integrity and values determine the success of the contracts," said Menon.

As the job market is improving, the candidates are taking a little longer to decide before joining a new company and are giving close attention to their long term interests.

"Now, they spend more time asking about the company culture, its financial health and how it has treated employees in the past, before going ahead. They ask a lot of questions, probe the company, take their time and then go ahead. Previously, a big brand or an MNC tag was enough," said Kamal Karanth, Managing Director, Kelly Services India.

The downturn has created significant value for employer culture and the employer brand, observes Deepak Mohla, Managing Director, InspireOne, a HR training and consulting firm, that has worked closely with corporates in managing layoffs.

"Individuals tell us that they are looking at going for much lesser money to organisations that are more employee-friendly," said Mohla.

Even though the slowdown was a great opportunity for organizations to build the employer's brand, the next six months will see employee attrition levels rise, especially in those organizations that did not think of the long term consequences of the manner in which they dealt with staff, according to Prasenjit Bhattacharya, CEO, The Great Place to Work Institute.

Several corporates resorted to cost cutting at the expense of employees without paying heed to the long term implications on the culture. But there are also several companies that are now quickly taking steps to make up for mistakes and many also focused on investing in employees to prepare them for the future.

"There was immense pressure on employees to perform, as companies laid off people and expected their existing staff to do the same amount of work without any expectation of raise, bonus, even inflation-adjusted hikes. That meant real income went down many notches. Surely, they would leave the company the moment they get a good option," said A Sudhakar, Executive Vice President-HR, Dabur.