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Downsizing is a “perfect” occasion to get rid of the mediocre seniors in a business – not the young. It believes professor Roger Martin at the University of Toronto.
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– When you are in a situation where you need to downsize, you should look at it as an opportunity to reduce the number of mediocre and unproductive seniors, says the canadian professor Roger Martin of the DN.
He is head of department and former dean of the businesskolen Rotman School of Management at the University of Toronto. In 2013, he was ranked as number three on the so-called Thinkers50 list, which every two years awards the most influential “businesstenkerne” in the world. Large companies such as Procter & Gamble, Lego and Verizon swears to strategiråd from Martins.
Recently was a professor in Norway, and lectured for several major næringslivsaktører.
Roger Martin believes that it is unfortunate that employers often disposes of the youngest when the workforce to slankes.
Not only is it wrong to do with respect to the development of a company, it is also the wrong approach to employing the future workforce, ” he says.
Older willing to go
- Traditionally, it is often the young who must go first in nedbemanningsprosesser, confirms senior advisor John Sørbø in Nav.
Since 2014 has the unemployment rate in Norway has risen from 3.5 per cent to 4.9 per cent in this year’s third quarter. That DN wrote on Friday, is now young employees on temporary contracts at the highest level in ten years.
Deputy chairman Hans-Kristian Gabrielsen of LO does not like the development, and draws in the DN-case before an OECD report points out that the risk of being unemployed is six times as high for those temporary employees as for those with fixed job.
A study from the Norwegian Seniorpolitisk barometer, however, shows that one of three employees over 60 years are ready to retire to let younger forces. It writes NRK on Friday.
“Lazy and stupid”
To let the youngest go is not necessarily the most cost-effective solution, according to professor Martin, although the young often costs the company less in severance pay.
He compares the structure of a company with a pyramid, where the director stands on the top. Below are the employees and managers.
If you remove one mediocre, unproductive mellomleder, it could equal the same as to remove five of the workers on the bottom level, according to Martin.
the Effect will be stronger the higher up in the pyramid one such leader is located. This is because all the employees under a poor manager of time will perform worse.
- Is the senior executive bad, will the whole business “die”, said Martin.
Companies that entirely follows ansiennitetsprinsippet, are therefore both “lazy and stupid”, he believes.
They can get away with doing it now, because young workers without a long tenure don’t get a big severance pay. But they forget that this is a “multiperiodespill” and not just a “enkeltperiodespill”, he explains.
Problems with recruitment
Employers dropping the youngest will in addition be able to experience to struggle with access to new labour when they are older to embark on retirement. Large parts of the career choice will be based on what they have heard from others, according to the professor.
In the course of his 15 years as dean of the businesskolen in Toronto, he has followed with a lot of students out in the workplace.
- What they worry about most, is that something horrible to happen before they have been given the opportunity to establish themselves and shown the employer what they can. Everything they have when they get their first job, CV and hope, ” explains Martin.
Companies that are “known” to downsize the youngest, will thus still weaker than the other, which bet more on the young workforce, he believes.
Different development
Senior advisor John Sørbø in the Nav got an eye on anything unusual in arbeidsledighetsstatistikken its now:
Usually we have seen that unemployment has increased most among persons in the 20-years in difficult times. In this downturn, however, has the development been different, ” says Sørbø and add:
- Also this time, it is more difficult for young people to get into the labour market, and we see that more people are choosing to study more. But the unemployment rate has increased most for the older age groups.
the Explanation is probably that the downturn has primarily affected the sector.
- Here are many in the 40-, 50 – and 60-years lost job. In the former nedgangskonjunkturer we have like to seen a larger increase in unemployment within including construction and wholesale and retail trade. These are industries where more young people like to work, ” says Sørbø.
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