Tuesday, January 14, 2014

The Short sightedness of companies

30 years ago it was routine for large and mid-sized companies to hire university graduates, train them and promote them. A few left, but that merely provided space to promote newer hires. In this way companies built a "bench" of trained, loyal people, who know how the company and industry worked.

Today, more and more companies hire on contract so that even professional ranks are filled with "temp workers." This means that the company is filled with people who do not know it, are not trained and that forces the company to hire from outside for middle and senior management.

From the point of view of the college graduate, a career become a hap-hazard progression, with all the onus for learning on their shoulders. The individual is on their own.

Long-term this means that for a very few innovative self-starters, they may have more opportunities, but for most it means insecurity and little room for career growth. As they hit 50, it will become increasingly difficult to get hired and that, combined with later retirement benefits, will cause financial distress. While the issue of experienced executives over 50 looking for work has been an issue for some time, it will change as those looking for work do not have linear career paths. http://www.optimarketllc.com/pdf/Fired_at-50_GP_1-05-12.pdf