TALENT MANAGEMENT TEMPORARY STAFFING
Singapore - As a result of the economic downturn, companies in the United States are more likely to make fewer employer promises to young workers. They will also prefer contract and temporary staffing positions within the next few years as well.
According to Edward E. Lawler III, director of the Centre for Effective Organizations at the University of Southern California says companies will now opt for what he describes as a "travel light" talent management strategy. Driven by the changing business landscape, companies that adopt this strategy will not make a permanent or lifetime commitment to their employees and will only work with an employee as long as it benefits both parties.
As such, these companies would systematically and regularly update and redefine their relationship between the both parties. And in some cases, Lawler adds that this may mean letting the employee go.
Citing Apple as an extreme example, he says the company has hires top graduates from schools such as Stanford for software engineering positions for a lifespan of five years before "discarding" these employees.
"If [Apple] is really trying to move technology ahead, and they want the newest, the best and the brightest. [And] because there's not a big advantage of having a long-term relationship with people, then this may be a valid and potentially competitive advantage to talent management."
However, Lawler adds that emulating Apple may not be for all companies and employees.For companies that use this 'travel light' strategy well, companies would need solid good performance measurement tools, a clear definition of job competencies and a market position and reputation that supports such strategies. "Otherwise you may end up with a group of uncommitted, disaffected employees who do nothing for you," he adds.
And in light of the economic recession, Lawler says companies in the US are now becoming more conservative with their employee promises as they choose temporary and contract staff over hiring permanent ones.
However, Lawler says the irony is that graduates coming out from universities and MBA programmes are now looking for jobs that would give them greater security. "All of the sudden, we are seeing students coming out and saying, 'This is a scary job market, I want some security and some stability.' This is a complete reversal of what each side is saying to each other," Lawler adds.
Lawler was speaking at a breakfast seminar titled 'The New Normal' - Cold Reality or Flight of Fancy?', organised this morning by Linkage_Asia.
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