Maybe it is time to rethink business and strategy. Given the world economy and the current rates of unemploment across developed countries and the fact that the recession surprised most business leader, maybe it is time to rethink what we do and how we do it.
This is the start of what will become a series of posts that will focus on the changing business environment that we live in.
Today, we can focus on the workforce.
We have seen layoffs in big corporations and small companies. People are trying their hands at starting their own companies. The workforce has expressed their dismay at their treatment (especially those that were long-term employees) during the economic distress. They have had salary and benefit cuts. Finally, they have been dismissed and laid off.
So, while those that were laid off start their own companies, the current employees are being asked to do more with less.
I believe this is the trend that we will see even as the economy bounces back. Companies will not replace what they have deemed to be fat, they will be more prudent with their hiring of middle management and want to keep their revenue per headcount at its highest.
This means there will be less jobs available and competition will be high. (This is the same trend we saw after the burst of the dot-coms).
It will mean that companies (by and large) will be prudent in investing in their future growth, in order to protect profitability.
Outsourcing will continue to be a trend. This will mean even fewer jobs in the US and even in Israel, but more in India and China.
It is always difficult to see what is coming around the corner. But, these are a few of my predictions for human resources.
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