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Gary D. Burnison, Korn/Ferry CEO, on his believe that companies are adding fewer employees because they have become more efficient.
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-- -- guess -- look the economy added just 69000.
Jobs last month of my next guest says it's because companies are becoming efficient.
And that's -- need fewer new employees joining me now Gary -- CEO of Korn Ferry International.
Also also of the twelve absolutes of leadership Gary thank you for joining us on a day.
When the markets down over 200 points.
Dismal jobs report.
But that's a good point.
Companies are just getting used to doing the same as they did before the recession -- less workers what's gonna entice them to start hiring people back.
Well there clearly asking more you know with less people there's no doubt about -- you know CEOs are not looking.
-- higher than innovate they're looking to innovate event higher.
And I think that this jobs report I mean this is reality.
Whether we like it or not.
This is of the great readjustment for the United States.
Are they looking elsewhere for their -- -- we talk a lot about outsourcing.
We actually had to -- yesterday -- said -- that -- is actually reversing some companies are coming back to the US but there's no doubt we've lost a lot of jobs overseas.
Yeah we we have a mean long term -- bullish on the -- us obviously but I lived last summer lived in China for three months and the costs there were rising twenty to 30% a year turnover was twenty to 30% a year.
And so I think what you're gonna see a -- -- for awhile is in sourcing.
And I think you're gonna see that over over the next five years.
Would you agree -- the world has become flat as far as labor costs of those advantages of going.
Somewhere else to get the cheap labor and not so cheap anymore and that may help.
Create more jobs back in the US.
Well that's it that's exactly right -- -- the world is flat and there's a fight right now there's a real fight if you're CEO like I -- for growth and relevancy.
And the traditional levers that you had namely conspicuous consumption.
In the west and in particular the United States that lever is not there.
And actually even the lever of looking to the east and is a little cloudy I I actually think China.
Is the biggest risk to that to the global economy but CEOs are borderless.
There -- trying to tap consumerism there's seven billion people in this world.
In the United States is a small fraction of that.
With that in mind where -- -- hot areas with regard to jobs I mean what what should people -- guess is too -- for people get him to school now they've made that choice but.
Where other jobs gonna come from.
Well in the US you know we're becoming a nation of fixtures advisors in treating our own illness rates if you just think about the economy.
20% of the economy is gonna be in health -- guess what there's ton of money.
Being poured into obamacare.
A lot of dollars around technology so health care health services would be a great place.
The look for the next decade.
As well as something that's obvious fill -- that's technology but in particular.
Social media and companies that are trying to sell more products again around the world.
Through the Internet.
So how long is -- gonna take to turn this around area mean that if the Fed to say it is going to be weak at least through the end of this year.
Before we see any.
Sort of improvement -- what's your take on it.
God this is a long haul you know look this country overspent for you know twenty years this is.
This is a decade of readjustment it's -- Nike swoosh.
You've got to transition in China of leadership you've obviously got one here.
I would expect more of the -- Very quickly I see -- going to be a living in Europe for a couple of months -- headed.
I'm headed to London and then we'll all you know we'll go to Italy and and Germany and France Spain and you know it's a great way to to see the culture and -- clients and -- -- Are people very good indeed lucky -- They are all right Gary venison and of Korn Ferry International Gary thank you very much actually -- the Euro -- when it 123.
From 132 since I was standing there.
This will be doing our show next week from.
