The credit crisis and subsequent global recession has forced many companies to cut their workforce and reduce their expenditure on people. It has also raised fundamental questions about the institutions and practices of modern business life. Belief in a self-regulating financial system has been shaken, confidence in the foundations of business has been eroded and a new generation of workers are reassessing the relationship between employer and employee.
This latest report from PwC, looks at the impact of the downturn on people management, exploring how the actions of businesses as a result of the crisis determines their readiness for the upturn and their ability to compete in the second decade. PwC present three possible business models which they believe will co-exist in the future:
Green World - demands for greater transparency and social responsibility in business have been magnified by the crisis and combine with the call for environmental responsibility already present in the green agenda. This will impact many areas of people management, particularly in relation to how people are rewarded.
Blue World - Increased focus on hard people metrics to measure performance and productivity as companies look at a long-term reality of having to do more with less. The Blue World scenario imagines the performance and efficiency culture necessary for global companies (some larger than many individual countries) to succeed within a new order of economic superpowers.
Orange World - the opportunity for radical new ways of working will emerge. PwC take the concept of outsourcing and globalisation of the workforce to an extreme portfolio working model where people organise their working lives like individual businesses in a highly networked world.
The global economic downturn has forced many companies to make important and difficult choices about how they manage and motivate people, with both immediate and long-term consequences.
The full report can be downloaded from the PricewaterhouseCoopers website