Since August, there have been fragile signs that the world’s major economies are starting to move in the right direction again. Yet most forecasters agree that any recovery will be slow, making investment decisions difficult for listed companies and traders alike.
So – how can forward-thinking firms balance their need to be prudent in today’s current recession, whilst still investing in their employees for future growth when conditions improve ?
One example is the UBS graduate deferral program. Originally dreamed up during the 2001 recession, UBS reinstated it in 2008. The initiative gives new hires the option of postponing their arrival for a year and devoting the interim period to community service or the acquisition of new skills. The twist is that, where UBS considers the activity worthy, it offers to pay half the base salary associated with the accepted position, whilst holding the promised job open for the individual’s return. Some students spent gap years in India with a nonprofit organizations that trains paramedics, whilst others used the year to learn Spanish in Argentina, work on an offshore oil rig, and rebuild houses destroyed by Hurricane Katrina.
From both a financial and HR standpoint, this initiative stacks up. UBS trims its payroll costs in the near term, while keeping hold of talent that it invested in finding and recruiting and that will be needed as the economy starts to turn.
But it’s the employee engagement perspective that appeals to me the most. Its implicit message to new graduate hires is that “we value your growth as an individual, not just an investment banker, even when economic times are tough”. The scheme will not suit everyone, but for the 43 graduates who took up the offer, and the communities who benefitted from their efforts, this is surely a smart and worthwhile enterprise.
Related articles:
- Consumer Day 2010 – Leuven, Belgium The Consumer Day 2010 conference explored the opportunities and challenges faced by consumers and businesses in tomorrow’s retail market. It brought together decision-makers of the European institutions, business and consumer...
- Playing the Percentages in Baggage Roulette We can all relate to that slightly nervy feeling, when you sense you’ve been waiting at the airport baggage carousel just a bit too long, right ? Perhaps part of the...
- Consumer Lag – Toyota’s Hidden Millstone At first glance, it might seem things could hardly get worse for Toyota – up to 8m cars being recalled globally on safety concerns, new sales predicted to be as...
