December 12, 2012

Productivity Must Increase in 2013 to Offset Decline in Hiring

Flipping magazineAdvisory company CEB, in its newly released Executive Guidance report, has shown that most executives are searching for ways to improve performance by 20 percent from its existing employees in order to reach their business goals for 2013. Discouragingly, only 5 percent of their current employees actually have the combination of core skills and competencies to perform at the required level. With the report finding that only about one-third of executives are planning to hire in order to meet next year’s goals, all other companies will need to develop their existing workforces to meet higher performance benchmarks.

CEB has determined that the workplace has been fundamentally changed by the forces of globalization and a weak national economy. Employees work differently now that organizations change more frequently, require increased collaboration, and knowledge work. In order to meet the changing needs of modern companies, employees must become more adaptable, capable of working with a broad range of people, and develop keep judgment skills.

“Organizations must understand the dramatic shifts underway in the new work environment and equip employees with the skills and competencies that enable them to be successful,” said Conrad Schmidt, global research officer at CEB. “With 67 percent of executives reporting continued pressure to lower costs despite increasing revenue expectations, the corporate bottom line is increasingly dependent on achieving greater labor efficiencies. In order to overcome new workplace challenges and facilitate increased employee productivity, executives will need to organize and manage their workforce differently.”

CEB recommends executives looking to transform their employee bases to accelerate skill development through promoting on-the-job learning through stretch roles, adjusting employee roles to collaborative needs, reorient managers to empower knowledge workers, and target investements in technology to evolve the needs of collaborative teams.

Read more news in Economic Numbers

Joshua Bjerke, from Savannah, Georgia, focuses on articles involving the labor force, economy, and HR topics including new technology and workplace news. Joshua has a B.A. in Political Science with a Minor in International Studies and is currently pursuing his M.A. in International Security.