EVEN as firms are emerging from the recession, they face a potential problem - unhappy workers who are frustrated with their pay cuts and headcount freezes over the past year.

Management consultancy Hay Group warns that 'sweat debt' - a human resources term used to describe the extra effort put in by employees - could pose a threat to bosses if employees get disgruntled enough to vote with their feet.

Hay Group surveyed 25,000 employees in Singapore-based companies last month. The findings reveal that 29 per cent of employees feel frustrated in their jobs while 35 per cent feel detached. Hay Group describes this 'detached' group as employees who are physically present but have their minds and hearts somewhere else.

Only 16 per cent feel effective, indicating that companies are not realising the full potential of their workforce.

One-third of those indicating frustration said they planned to quit in a year, citing a lack of empowerment and a desire for better working conditions and more effective superiors.

Hay Group insight regional director Steven Choo said these findings indicate that some employees may be feeling stretched in helping their firms overcome the downturn. He warned: 'Companies may soon face a talent exodus as soon as the economy strengthens if nothing is done to reward and recognise the sweat debt that employees have accumulated over the last year.'

Read the full story in Tuesday's edition of The Straits Times.