Resistance to Change, Budget Constraints and Cost-Cutting Delay New Technologies Into the Workplace
KANSAS CITY, MO, (PRNewswire-USNewswire), December 11, 2009 - A resistance to adopt virtual workforce tools and methods, along with budget constraints and prevailing cost-cutting strategies, are the major reasons companies are not providing employees with new workplace technologies, according to a new online poll conducted by Deloitte.
More than 40 percent of 750 technology executives across multiple industries surveyed during Deloitte's webcast, "Technology and People: Understanding the Workplace of Tomorrow," cited organizational resistance as the primary roadblock to new workplace technologies. Additionally, nearly 28 percent of the respondents, ranging from upper management to managerial level, pointed to budget and cost constraints as the main deterrents.
"The polling results indicate that corporate leaders should devote as much interest and investment into where and how the work is performed as they do into the nature of the work itself. The recent realities of a changing workforce and evolving worker demands are driving-up the need for new workplace technologies," said Hope Hughes, director, Deloitte Consulting LLP and a webcast presenter.
"However, our polling indicated that some companies are still slow in adopting 'workplace of tomorrow' type strategies that could help improve agility and effectiveness, as well as respond to workforce changes in a cost-effective manner."
Seth Siegel, director, Deloitte Consulting LLP, who also presented on the webcast added, "A hiring surge can result in a significant increase in the real estate and facility costs required to provide a physical workspace for the new personnel. Similarly, a workforce reduction might result in a significant increase in vacant, unused space. Effective workplace of tomorrow strategies and technologies can help de-link physical workspace consumption from headcount and align technology investments with business demands and workforce patterns."
Highlights from the poll included:
- Almost half (44.7 percent) of respondents said their companies have
begun workplace of tomorrow initiatives, including alternative work
policies, workforce mobility, virtual technologies, telecommuting, and
increased collaborative spaces.
- Nearly 30 percent of respondents' companies are not using Web 2.0
tools, increasing shared workplace areas, or developing real estate
strategies to improve workplace utilization.
- Blogs, wikis, podcasts, instant messaging, social networks and other
Web 2.0 tools are the mobile technologies most companies are
considering, according to roughly 29 percent of respondents.
Hughes and Siegel also noted the following factors companies ought to consider in their efforts to design and implement effective workplace of tomorrow initiatives:
-- Strong stakeholder engagement by top executives
-- Effective workplace analysis
-- Cross-functional integration between the real estate, technology and
other offices in a company
-- Commitment to invest in mobile technologies, Web 2.0 tools and
workspace management systems solutions
-- Incorporation of enterprise-wide sustainability and greening
initiatives
November Jobs Report Shows Employers Face Continued Challenges
ST. LOUIS (PRNewswire-FirstCall), December 11, 2009 - Unemployment data released by the U.S. Department of Labor indicates that although job losses have slowed significantly, the economy continues to face challenges, noted the Retail Industry Leaders Association (RILA).
According to the report the U.S. economy shed 11,000 jobs in November, the smallest decline since the recession began in December 2007. The unemployment rate edged down to 10.0 percent. Retail job losses slowed to 14,500, compared to the more than 44,000 jobs lost in October.
"Today's unemployment report gives hope to consumers and retailers that a recovery may not be far off. However, it is also a reminder that employers seeking to grow their workforces continue to face challenges," said RILA President Sandy Kennedy. "Policymakers intent on stimulating job growth and the economy must focus on reducing the challenges employers face rather than erecting new barriers to job creation - which elements of the health care legislation under consideration threaten to do."
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The average of 87,000 jobs lost per month in the overall economy over the past three months is down considerably from the 700,000 per month pace of job loss at the depth of the recession.
The retail industry shed 14,500 jobs last month, an improvement over the more than 44,000 retail jobs lost in October and considerably better than the 90,800 jobs lost in November 2008. The retail industry averaged 33,000 job losses over the past three months, compared to an average of 70,000 over the same period last year.
Other economic data likewise show that the economy has begun to recover. Initial claims for unemployment insurance have fallen back to the level of last September before the worst part of the financial crisis, while increases in personal income and spending in October suggest improved prospects for families. The housing market remains weak but has stabilized, with home prices up over the past two quarters, and rising home sales whittling down the elevated inventory of homes for sale.
"Today's data confirm that the labor market is beginning to heal," said Donald B. Marron, visiting professor at the Georgetown Public Policy Institute and RILA outside economist. "Layoffs have slowed dramatically in recent months, but new hiring remains restrained. Employers are adding hours but not yet jobs, though employment has increased in a few sectors, including temporary help services and department stores. We have a long way to go to get back to the strong economic performance that Americans have come to expect, but the economy and the job market are turning up."
Health Care Reform and Jobs
RILA has been a proponent of health care reform that expands coverage to more Americans and addresses the unsustainable cost increases faced today. However, the costly burdens, such as those imposed by the health care reform legislation passed in the U.S. House of Representatives, and the legislation currently under consideration in the U.S. Senate, could undermine economic recovery and cost more jobs for the retail industry, while also pushing insured retail employees from the health care plans they currently have and like.
"Congress simply should not pursue major initiatives that could add significantly to the cost and regulatory burdens faced by the retail industry, thus providing a disincentive to the hiring and business investment critical to ongoing economic recovery efforts," said Kennedy.
Of specific concern to RILA and its members are provisions within the Senate bill that would shift costs on to employers to pay for a public plan, reduce benefit-design flexibility and innovation, or not take into account the unique needs of the retail workforce such as separate treatment of part-time and holiday hires. Without significant changes RILA will be left with no choice but to oppose the legislation.
The Retail Industry Leaders Association is the trade association of the world's largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and operate more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.
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