As indicated by my last post—titled “Global workforce beset by uncertainty, skeptical about the prospect of upward mobility”—according to polls, the so-called Great Recession has left a lasting mark on the psyche of the global workforce. Such that there has been somewhat of a value-shift among workers, whose preference for stability and security has, for the moment, superseded their long-felt desire for professional advancement (of course, this does not mean that workers have altogether stopped thinking about upward mobility or advancing their careers). Like the newly skeptical workforce, pioneers of business have both observed and felt the effects of the global economic downturn and have had to refocus the lens through which they view the global marketplace, and in turn, their own respective businesses.
A March Wall Street Journal article, “Companies Map Routes to Recovery: For Corporate America, Growth is Likely to Come at a Slow, Steady Pace,” observed that while many businesses have experienced a spike in fourth quarter earnings, that this growth, in many instances, is more a function of cost-cutting measures than a rejuvenated economy or an influx of new revenue. Yet, according to a Young Presidents’ Organization Global survey, some CEO’s see real growth on the horizon, as approximately 30% of the 1,000 CEO’s surveyed expect their workforce to increase a year from now, and 60% expect their numbers to remain constant. In addition, almost 60% of respondents expect to see an increase in sales in 12 months, while only 7.5 % of those surveyed expect there to be a drop-off in sales numbers a year from now. So what does this mean for you?
While growth is likely to occur in fits and starts, cost-cutting measures have made many businesses leaner, and as a result, has ostensibly put them in a better position to achieve growth in the coming quarters and years. Like a tree or shrub that must be occasionally pruned, many businesses have cut back their branches and overgrowth in the hope that such pruning might allow for future growth. Although the topography of the economic landscape remains somewhat uninviting, businesses (in various sectors of the economy) have begun to put away their pruning shears and seem to be gearing up for multiple seasons of growth. Whether this growth can be sustained and, furthermore, will continue to translate into new jobs, however, are questions that remain fundamentally unanswered.
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