Why Companies Should Bring Back Development Programs
Many chief executives are looking to hire again, but cautiously according to Dana Mattioli's article in The Wall Street Journal titled, CEO's Hiring Again, But Cautiously.
Defense conglomerate ITT Corp. is hiring workers for nine new plants in emerging markets, but is limiting hiring at home. General Mills Inc. is hiring, but more slowly than pre-recession. Accounting firm Plante & Moran is hiring more auditors and tax staffers, but fewer consultants. Ninety-two percent of U.S. companies plan to hire in 2010, but half plan to do so more slowly than in pre-recession years, according to a January study by human resources consultancy Towers Watson. Friday's jobless report underlined that caution, as the unemployment rate held steady at 9.7%.
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hat nowhere in Ms Manttioli's article was it mentioned that companies are beginning to rehire training and development professionals, one of the hardest hit professions of this recession. The downturn has caused many companies to ease their focus on developing their employees which is unfortunate because there will be negative long-term implications for failing to do so. Why?
The cutbacks have resulted in a large number of disengaged employees who are not being developed and are not as productive as they could be. Once the economy improves, these employees will jump ship for greener pastures. How companies treat people in down times will determine their success retaining these individuals when the recession is over. Now is the time to invest in what companies often refer to as "their most important resource" by bringing back development programs.
