Success Requires Savvy Frontline

CUNA’s E-Scan Website
August 5, 2010 | COMMENTS

Fifty-four percent of large U.S. businesses that reduced staff in the past year intend to rebuild within the next two years—but senior executives and human resource professionals are concerned about a shortage of high-quality skills. This is particularly true in the areas of sales and service, according to results of a workforce study from management consulting firm Accenture.

“The outlook is improving, but as companies grow their staff it's more critical than ever that they understand their skills needs and approach the expansion of their workforces strategically,” says David Smith, a managing director with Accenture.

Market growth could be hampered by lack of important skills.

“Companies need to rethink how they equip employees with the skills required to be competitive today,” says Smith. He recommends firms also consider new strategies for hiring and developing untapped talent currently available in the market.

Survey respondents identified sales and customer-service employees as the most important employee groups, but these employees are often deficient in critical skills. Respondents validating the importance of these groups claim that only:

• 23% of sales employees are high performers, and
• 34% of customer service workers earn that distinction.

“Organizations can't afford to have employees with outdated skills on their front lines,” adds Smith, pointing to the opportunity for companies to outperform competitors by elevating the skill levels of their employees.

The current economy has presented credit unions with just such an opportunity for membership growth among frustrated bank customers. Reaping that opportunity requires that frontline staff become—and remain—well versed in credit union offerings, advantages, and the qualities of stellar service.

Survey findings also indicate that:

• Among executives surveyed, only 14% feel their workforce is “extremely well prepared to adapt to and manage change through periods of economic uncertainty.”
• Three in 10 firms in the past year have decided to forego campus recruitment, incentive pay, and recognition programs.
• Leadership development may also be an issue as only one-fourth of survey respondents strongly agreed their company's leadership is sufficient to manage further economic strife.
• Thirty-nine percent of companies that added employees in the last year chose to do so because of the high quality of applicants available—a condition that's not necessarily present during better economic times.

This article originally appeared on CUNA's E-Scan Online Research & Advice Portal. Reprinted with permission.