It has been interesting to notice that one of the consequences of the Recession is the growing discrepancy between traditional management practices during belt-tightening times and the changing nature of talent acquisition. Recessions naturally cause a thinning out of businesses. Typically, we think of it as a Darwinian consequence of the weak giving way to the strong. However, it is worth noting that some of the survivors may have made it through this round of business closures but could be setting themselves for a loss of competitiveness in the longer term.
Businesses throughout all sectors are looking for ways to do more with less. Layoffs, furloughs, and redundancies are resulting in a leaner workforce. Added responsibilities being given to the employees who remain, coupled with their fear and uncertainty about job security are beginning to compromise employee performance.
Of course, there are ways to streamline processes, but in general reducing staff usually means diminishing productivity. How can management cope? One tactic being used is to double up positions. That is, taking two job positions, laying off one of the employees and giving the remaining employee much of the workload of the laid off employee.
Money may be saved, but from a performance improvement perspective it is a disaster. At best, it is a short-term fix, but not a long-term productivity solution. And since there do not appear to be plans for mass hiring anytime soon, even with an improving economy, employers will be trying to do more with less for some time to come.
Meanwhile, workers are receiving a harsh lesson in employment economics simultaneous with the ongoing information revolution. The Recession is accelerating the career development phenomena of workers relying less on organizations for full time employment and security. The Internet is providing increased opportunities for online training, research, and the means to enhance exposure and networking.
Technology is making it easier for the ambitious to become entrepreneurial. This combination of a sour economy with a growing robust web is pushing the American workforce closer toward becoming a free-lance nation.
Is management prepared to take advantage of this shift in workforce dynamics? This is what may separate the best performing companies of the future from the too-slow-to-change failures.
I think it could very well be likely that the following scenario becomes commonplace: Optimizing employee performance and productivity will increasingly be focused on outsourcing by businesses to match the highest quality talent for the right job. Full time employees, who have been squeezed in with too many on-the-job responsibilities, will be replaced by targeted, on-demand, just-in-time contracted resources who will provide better performance in accomplishing specific tasks.
As needs change, so does the specialized talent. Entrepreneurism grows and becomes increasingly focused in niche areas. Together, businesses and the new entrepreneurial class find each other through ever more sophisticated job boards and social network media tools. Innovative management and concentrated expertise forge a workplace that becomes more nimble, adaptable, and clever.
Change is occurring. Which companies will be leveraging it for success, and which will not start becoming clear soon.
