I do not often review current articles in this blog but this one truly caught my attention. As a former human resources executive and now as an executive recruiter, I often think about the conflict between trying to create a highly engaged workforce and needing to manage labor costs.

The Wall Street Journal, July 27, 2011, carried several articles on the the lack of hiring in the current economy. Not only is the governmental / political party mess to blame, but the need to stay flexible with labor costs also has a significant impact on hiring and retention. But the following comment really struck me as a concern when trying to maintain a highly engaged employee workforce:

"Executives call it "structural cost reduction" or "flexibility." Northwestern University economist Robert Gordon calls it the rise of "the disposable worker," shorthand for a push by businesses to cut labor costs wherever they can, to an almost unprecedented degree."

The disposable worker -- What a difficult balance - between labor cost management and ensuing loyalty and engagement with the workforce.