Demand

Embryonic Growth Shakeout Maturity Decline

Time

HR Activities Embryonic Growth Shakeout Maturity Decline

Staffing Recruit and retain Respond to escalating Internal movement and Retaining key per- Retaining key
highly capable people. need for qualified job shifts as formers while limited employees while
workers in numerous organizational advancement oppor- eliminating some jobs
fields. restructuring occurs. tunities exist. and creating others.

Compensation Lower base pay with Mid-market competi- Control compensation Higher base wages, Tight cost control and
some broad-based, tive pay, increased expenses while expanded annual pay reduction.
longer-term incentives use of annual perfor- maintaining market- incentives, lucrative Short-term cash and
for risk-taking mance incentives, competitive pay, short- executive stock op- long-term stock and
employees, and and expanded and longer-term tions, and compre- scaled-back
limited benefits. benefits. incentives. hensive benefit plans. benefits.

HR Development Limited training and Identification of Review of employee Extensive internal Retraining and career
development using competencies and capabilities and HR training and transition planning
external resources. career growth needs development needs for development programs through external
and addition of some high-potential, scare- and use of big-name training and
internal HR develop- skilled employees using external training development
ment resources. external and internal resources. activities.
resources.