Job and people-cost cuts may save cash in the short term, but do not necessarily create a winning platform for the future. Organisations succeed when they are known for creating a workplace that attracts highly-skilled professionals, supports their development and places them in pivotal roles.


Silas YangWhen times are good and the economy is buoyant, it is easy for organisations to talk about the importance of their people and their commitment to professional development. However, when the business cycle turns downwards and the economic temperature drops sharply, it is a different story. The people agenda that once seemed so important seems to lose a lot of its significance when sales are in freefall, the flow of credit has slowed to a trickle and the future of the organisation itself is in doubt.

To say the least, the past 12 months have been challenging for our clients and for PwC. We have done our share of cost-cutting and belt-tightening. We have delayed or scaled back several human capital programmes. Some member firms have made the painful decision to shrink their workforces. Put simply, it has been tough.

We would not claim to have a crystal ball for predicting the future, but one thing we do know is that every recession does ultimately come to an end. Then business picks up, confidence returns and opportunities arise for those who are ready and able to seize them. One of the lessons we have learned from past business downturns is the importance of keeping the pipeline of new talent flowing, and of maintaining growth and development opportunities for top performers. Our main piece of advice to clients―and one that we also try to keep in mind for ourselves―is that organisations should think twice about cutting back on their professional development programmes. The calculation here is a simple one: a workforce cannot be kept in suspended animation. If it is not continuously renewed, then it will inevitably enter a slow but steady state of decline. That is why in good times―and, perhaps more importantly, in bad ones―the professional growth of a company’s people should be one of management’s highest priorities.

Admittedly, professional development programmes do not come cheap. But neither do top performers. Whether the economic conditions are good or bad, these talented individuals expect their employers to provide them with attractive development opportunities―and have the will and means to go elsewhere if these opportunities do not materialise. From that perspective, investing in professional development is a lot less expensive than replacing A-list performers.

But the reasons for keeping a robust professional development programme in place do not begin and end with your best employees. Economic downturns often demand a more flexible workforce and a more flexible approach to managing people. During the past year, we at PwC have introduced a number of sabbatical and furlough programmes, providing our people with opportunities to pursue other personal developmental interests―whether these be educational, vocational, or recreational―while maintaining their employment at PwC.

By sustaining its professional development programmes in the headwinds of a recession, an organisation also says a lot about itself. In particular, it transmits a powerful message about its confidence in the future and the high value it places on employee engagement and growth. As we have pointed out, recessions do not last forever. But the choices an organisation makes during a rough patch leave a lasting impression on the minds of its employees and other stakeholders.

At PwC, we operate a broad range of technical training, industry knowledge, and leadership development programmes for our people at every stage of their careers. Also, because we believe that learning is inextricably linked with doing, we offer our people ample opportunities to live and work outside their home country. These overseas assignments provide our people with an unrivalled means of gaining professional experience, while simultaneously enabling them to build personal relationships that can last a lifetime.

PwC has a deeply-held belief that an important determinant of an organisation’s corporate responsibility lies in its commitment to helping its people achieve their full potential.
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