I was watching YouTube the other night and saw this SNL sketch. It spoofed what sadly is happening right now in corporations across the country.
How can we cut costs? In this economy, companies are scrambling to reduce their expenditures. The "employees" in this sketch come to a consensus: "Cut Human Resources!" I found it hilarious and painfully true, because I have participated in "cost cutting" meetings like this in the past.
There is more than a grain of truth in this video; companies often cut human resources, during periods of economic downturns. Decisions about laying off employees, and other types of cost cutting measures are often made without considering long term consequences. Take a look, for example, at this article concerning oil industry's staffing crisis.
The oil industry is currently suffering a massive labor shortage, as a direct result of neglecting their succession management: "This is an industry [that] didn't hire anybody for the better part of 15 years," said Bruce Bullock, director of the Southern Methodist University Maguire Energy Institute. "With as many people as they have approaching retirement ... they face quite a challenge within the next five years."
Perhaps during this economic crisis we can plan ahead, and make decisions that take into account our talent management plans (The boomers are still retiring). Cost cutting is necessary, of course, but it's still important not to lose sight of your overall company strategies, when these decisions are made.
Or Corporate America could just do it this way:
"Ready, Shoot, Cut – then Aim!"
Post by Dawn Passaro
Labels: economic downturn, human resources, layoff