The Conundrum: Succeeding in a Post-Recession Economy with a Recession-Worn Workforce

Creativity and leadership are critical for organizations to compete as the economy improves. Unfortunately, 85 percent of employers say they can’t find workers in today’s workforce who have the ingenuity and self-direction needed to accomplish organizational goals, according to a study by the Conference Board and Americans for the Arts in partnership with the American Association of School Administrators.

Too many task-oriented workers won’t cut it. At a time when global competition is stiff, we need all the innovation and creativity we can get. During the transition to a thriving economy, people who can gather diverse internal and external ideas and devise big-picture strategies are the most valuable to organizations.

Facing a lack of creative thinkers, some organizations will invest in training programs to boost innovation or devise massive recruiting campaigns to hire the best and brightest. However, with job satisfaction at an all-time low, training and hiring will be mere Band-Aids on deep lacerations in the worker psyche. The Conference Board reports that 45 percent of Americans were happy with their positions in 2009 — the lowest level since 1987, which is the first year the survey was conducted. That means more than half of your workforce is coming to work each day disengaged and unmotivated.

Less money in people’s pockets is a factor in employee dissatisfaction, says the Conference Board. Stagnant or declining wages, dwindling retirement accounts and a bigger hit to paychecks from healthcare costs have taken a toll. In addition, increasing commute times and ineffective managers have beaten down spirits.

If a lack of critical skills within your workforce isn’t enough, recent research says that the best people you have may leave for greener pastures. A recent CareerBuilder survey found that 20 percent of workers are looking to switch jobs in the next two years. As always, skilled workers recognize their value and potential and are the first to pursue opportunities when they arise.

Organizations that don’t prepare now for an improving economy will lose. HR has a major role to play in that outcome. Albeit a challenging one.

Share This Content on Facebook

Covet Thy Neighbor's HR Skills

While many of us were shopping and planning holiday festivities, corporate boards have been wooing HR executives. Last month, The Wall Street Journal reported in “HR Executives Suddenly Get Hot,” that the number of HR professionals serving as outside directors rose significantly over the past decade. The trend isn’t likely to subside. Issues such as exorbitant executive pay and concerns about succession planning are making workforce expertise a coveted skill at the highest levels of corporate management. Executives who worked long and hard to meld HR practices with corporations’ business needs are reaping the rewards. Now, businesses can’t get enough of their input.

What’s next for these sought-after workforce professionals? Could the CEO position be waiting? That may be a foregone conclusion if pay equity and business ethics remain in the limelight. Here are a few educated guesses on the profile of an “HR-educated” CEO:

• The CEO is likely to be a woman. With a large population of female HR executives currently in the ranks, it’s a safe bet that the new-found value and respect for HR skills will drive more women into the top job.
• The CEO would emphasize the connection between workforce skills and business goals. Ultimately the business strategy must drive workforce decisions. However, you don’t have to read too many business case studies to find examples of disastrous results when senior management teams forged ahead on initiatives without the proper people in place.
• The CEO would emphasize training. Related to the previous bullet, you can’t prepare your workforce without a relevant training program. Too much training has been relegated to “learning on-the-job,” which some also refer to as “winging it.” Online training offered a low-cost, efficient method for training during the economic downturn. However, it is time for businesses to invest again in substantive person-to-person training that teaches the nuances of a job.

A few other traits to add to an "HR CEO" profile were shared by Don Matthews, CEO of SCA Hygiene, who came up through the HR ranks. He mentions excellent collaboration and influencing skills, and the ability to build business cases for new initiatives. Matthews also notes that stints in other areas of an organization are critical for success in the top position.

We may be experiencing the dawn of a new senior executive model or a fleeting interest in workforce issues. Either way, HR should seize the moment and demonstrate how people management can make or break an organization.

Share This Content on Facebook