But Are They The Right People?

By: William O’Donnell - Director of Graduate Programs, Butler University, College of Business

Categories: Human Resources, Indiana CEO Survey

The 2009 "State of Our Business" survey contained interesting information on how CEOs view Indiana's economy in the midst of the current recession. Particularly noteworthy was the viewpoint that there is an oversupply of qualified workers out there, waiting to be called back to work when the economy improves. In addition, when asked to rate their level of concern with several issues related to their organization and its workforce, the executives showed a general decline in concern from a year ago. One can see the logic behind these opinions.

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We continue to read daily of plant closings, layoffs and the continued rise in unemployment. Logic would tell us that there must be a pretty good stockpile of talented people out there and that when the economy turns around, they will be there for the choosing. But are they the right people?

If there is a constant theme in the press regarding this economic period, it is that things will probably be dramatically different during and as a result of the recovery. For that reason, thinking that you will need the same kinds of skills in your workers, or for that matter the same number of them, may be a mistake. If the financial markets, the regulatory process, the energy market and our healthcare system all end up being dramatically different, there is an excellent chance that many businesses will also have to change. That change may mean an entirely different set of skills and competencies in their workforce. That could mean different people, or at least the retraining of current employees.

Of course, some may want to view the current economic disruption as an opportunity to get a jump on their competitors or look for new markets or product/service offerings. The bottom line is that those who act now to create a vision of what their business will look like after this mess is cleaned up will be in a better position to bring in employees with the appropriate background, skills and knowledge to operate in the new business model. More importantly, by taking steps now to envision your post-recovery business model, you will have the time to retrain your existing employees to match your needs and keep them out of the clutches of your competitors.

Here are steps every business owner should take now to prepare themselves and their workforce for the recovery:

• Evaluate your business model – Talk to your customers and suppliers to find out what’s missing. What products or services would they like to see you offer? What new ideas have you or your employees been kicking around for a while, but never got around to implementing? Maybe it’s time to be creative and take a chance.

• Evaluate your workforce – How well do the knowledge, skills and competencies of your current workforce support the changes you envision? Are there key spots that need to be filled? Are there employees with outdated skills that need to be retrained? Are there some positions that the “new business model” doesn’t need?

• Develop a total staffing plan - No one in their right mind would recommend that anyone go out now on a hiring binge. It’s early yet. What you need, though, is to write out a plan that matches the evolution of your business changes to your need for new skills. Determine what training programs you will need and either start drawing them up or find help to develop them. Put together a flow chart that shows what kind of people you want and when you expect to need them. This will give you a template to guide the “rebuilding” of your employee skill base.

• Execute your plan – No one can accurately predict the bottom or the top of the market or the economy. Most business people, however, start sensing major shifts, long before the press does. Take advantage of those instincts and be ready to implement your new staffing plan as soon as you sense a turn. Don’t let this plan gather dust on your shelf.

The recovered economy will hold many challenges and opportunities for those ready to meet them head on. The only way to ensure success is to be ready with the right people at the right time. Don’t wait for others to get the jump on you.

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