More With Less For How Long?

Things on the economic reports have been getting better yet there is one big item that is not, employment. Companies are doing more with less people. Worker productivity, the output per hour of all individuals rose at a seasonally adjusted rate of 6.4% in the nonfarm business sector during the second quarter of 2009, following a pace of 0.3% during the first three months of the year, according to a report released in August by the Bureau of Labor Statistics. This increase in productivity is the largest increase in almost six years.

In manufacturing, productivity increased 5.3% according to the report. The increase in productivity in manufacturing is the result of hours falling faster than the output.

Historically, productivity climbs sharply as the economy begins to turn from recession to recovery.

Will companies respond to the productivity gains and start to rehire employees, thereby alleviating some of the pressure of their current staffs?

When asked how companies plan to meet the quality needs that exceed in-house capacity, the majority of companies, 62%, work overtime, 27% outsource the work to a third party and 23% hire temporary workers. Still, another 18% of respondents said, “We don’t. The work simply will not get done.”

This is not true at all companies. During the past year, 43% of companies have maintained the number of employees, while another 20% of companies have increased the number of employees.

Some analysts are predicting that this will be a jobless recovery where businesses will learn to do more with fewer people, meaning the economy grows but employment does not. Other analysts argue that as corporate profits climb, company investments will increase including investments in new employees.

How is your company poised to deal with the recovery? Are they looking to hire full-time, part-time or temporary workers? Will they keep plugging along with the employees that are already in place? What solutions do you have in place?

Larson note: How are you handling the recession and the challenges and opportunities that are out there for all of us? He you been positioning yourself of this opportunity? Employees? How do you know if you need some, more? Set goals and guidelines to let you know if achieved your ready to advance to the next level. If you not out there positioning yourself you will be pushed aside.

Howard Larson
Larson & Associates
Target Marketing & Telesales Professionals for new account acquisition
Making good businesses great and great businesses even better
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