Make Good Use of Down Time

Toyota Keeps Idled Workers Busy Honing Their Skills Wall Street Journal (10/13/08) Linebaugh, Kate
Toyota's production line is taking a hit from the economic downturn and rising gas prices, but rather than lay off workers, the company is sending the idle ones into training courses to improve their skills and to find new and improved ways to make cars. Plants in Indiana and Texas stopped making pickup trucks in August; while about 2,000 workers are expected to start up again in November, another 2,000 will not be needed until April at the earliest. GM, Ford, and Chrysler are bound by union contracts to pay their workers even when they are idle. Toyota's workers are non-union and the company has vowed to never lay off full-time employees, which is why it is using the down time for quality-control and productivity training. Laying off employees for three months and then having to rehire and retrain new workers would be much more costly in the long run, the company says. Princeton plant manager Norm Bafunno says the training is already paying off, as one employee has designed a Teflon ring that prevents paint damage when electrical switches are installed on a car door. These kinds of improvements are what the company is hoping to gain from the training efforts, so that when production resumes, things will run even more smoothly.

The New Work Force of 'Generation Y' or 'Millenials' Need Special Handling Mass High Tech

(09/05/08) Botelho, Bridget
The influx of Generation Y (Gen Y) employees, generally those born between 1980 and 1994, into the work force has led to changes in company training. According to Jeff Kristick, senior vice president of marketing at Plateau Systems Ltd., the older generation reacts better to classroom instruction, while Gen Y-ers prefer online learning and videos available at their convenience. Having grown up with the Internet, the younger generation is full of multitaskers who expect more from technology and are generally more impatient. John Ambrose, senior vice president of strategy, corporate development, and emerging business for SkillSoft Corp., recommends that companies adopt a multi-model training approach, using interesting graphics, podcasts, and online courses. While faster and more versatile in finding solutions, Gen Y-ers also expect a lot from their employers and are quick to switch jobs when they find a better opportunity, according to Shafiq Lokhandwala, CEO of NuView Systems, Inc. Jackie Breslin, director of human capital consulting for TriNet Group, Inc., says that, in response to this employee retention challenge, many companies have increased their flexibility regarding telecommuting, scheduling, and continuing education, focusing efforts on offering good benefits and a welcoming workplace culture.

Many U.S. Firms Lack Long-Term Talent Strategy

Workforce Management (08/08) Marquez, Jessica

Approximately 33 percent of U.S. companies do not have a workforce contingency plan, according to a recent Watson Wyatt Worldwide survey. Out of companies that do have contingency plans in place, over 50 percent base their plans around layoffs. Very few companies take steps to protect their talent during an economic downturn, according to the survey results. Experts predict companies failing to protect their workforce now will have to pay a higher premium for talent once the economy recovers. "Maybe some companies are thinking they can't anticipate what's going to happen, so they will just address issues as they arise. But it's hard for me to believe that any business could think that they would not be subject to the volatility of the market," said Laura Sejen of Watson Wyatt Worldwide. The lack of contingency planning will put many companies at a competitive disadvantage with their competitors in Asia and Europe, say experts, because more than 80 percent of employers in Europe and in Asia have workforce contingency plans in place.

Recession Proof Your Company

When times turn tough there are two things leaders of companies have on their mind: creating revenue and driving down costs. Unfortunately many companies make the mistake of cutting training budgets when that is where the best ROI can be made. Today there is no question that having the right product and the latest technology are vital business practices. However, it is less likely that having the right product and the latest technology are going to provide a company with sustainable advantage. Employees and their ability to perform, share knowledge, and solve problems are the difference between a successful company and one that is not. Companies must reexamine their attitudes and practices relating to employees and their development. In today's fast-paced, knowledge-driven and competitive economy, employees are the biggest asset companies have and need to invest their dollars in.

Employee Development Training Critical for Retention

Companies that stay ahead of challenging economic times invest in their employees. The most successful organizations know that it is highly important to develop and to tap the knowledge of their employees. When employees are given the opportunity to learn and to develop creative ways to solve the organization's problems, exceed customer expectations, and increase productivity the company benefits as a whole.

There is no question that having the right technology benefits most companies but a sustainable competitive company will invest in employee development equal to if not more than technology. Employees are the biggest asset a company has and without them there is no business. The Society of Human Resource Management revealed in their 2006 U.S. Job Retention Poll that 52% of employees cite that career development is the most effective tool for job retention.

An issue that is looming in the near future is worker shortage. According to the U.S. Bureau of Labor Statistics, an estimated 22 million workers will leave the workforce by 2008 due to baby boomer retirements. The generation that follows isn't large enough to make up the loss which makes employee retention increasingly important. Older employees that intend to stay in the workforce want more training and companies that are smart will offer it to them.

Employee development training can lower turnover and groom future leaders. Companies that define a clear growth path and offer the opportunity for their employees to experience and be trained in multiple domains of the business will do well in employee retention.