Costly Churning of Talent Ahead for American Business

Comments Off on Costly Churning of Talent Ahead for American Business
Costly Churning of Talent Ahead for American Business

Now that the Great Recession is ending and a recovery is underway, people are scrambling to reposition themselves in the best jobs.  There will be big opportunities out there, and in the long run, it will be a seller's market for those employees with the most valuable skills as a new growth era dawns. 

We're just now beginning to get some idea of what's ahead, and that may give some employers an opportunity to get prepared.  Employment, of course, is always the last indicator to recover after a recession, since it takes the economy some time to pick up the momentum required to stimulate hiring.  So, while many employees are dissatisfied, they aren't ready to "jump ship" just yet

The 2009 Employment Dynamics and Growth Expectations (EDGE)1 depicts the "lay of the land."  Not surprisingly, it shows that there are still a lot more people seeking jobs today than there are open positions at firms.  But, it also shows what may not be as obvious:  Almost half the managers surveyed can't find qualified applicants.  So while it's difficult for the average person to find a job, there are plenty of jobs going unfilled because the people with the skill sets that are in the highest demand are already employed, and they are reluctant to change jobs in an uncertain market. 

Companies that have been cutting staff and optimizing operations are now poised for the turnaround, and they are ready to hire so that they can benefit from the growth that the economic recovery will deliver.  A primary focus of this new hiring will be the customer service jobs that are critical to success in expanding sales and retaining customers.  The most important skills cited in the survey were sales, marketing, creativity, and technological knowledge.  Public relations, communications, business development, and accounting or finance skills were also high on the list.

In fact, employers are already anticipating a full recovery for the economy in the next year or two and considering what areas of their businesses will benefit most from investments in human resources. 

DailyFinance.com2 cited a recent survey by Watson Wyatt consultants showing that half the companies are easing hiring freezes already, and they are pumping money into 401(k) plans once again.  Lost benefits are coming back.  Although the recovery is still uneven, looking ahead to next spring, we can expect it to be fully underway, with the emphasis on hiring and keeping highly skilled white-collar workers.

As highlighted in a recent Herman Trend Alert,

Subscribe for as low as $195/year

  • Get 12 months of Trends that will impact your business and your life
  • Gain access to the entire Trends Research Library
  • Optional Trends monthly CDs in addition to your On-Line access
  • Receive our exclusive "Trends Investor Forecast 2015" as a free online gift
  • If you do not like what you see, you can cancel anytime and receive a 100% full refund