Thursday, May 21, 2009

The first to go...

It's a problem that everyone is facing--in a recession, with receding budgets and steady or growing expenses, what is the first to go? What programs can be eliminated, without dramatically altering the composition of an entity?

Law firms and government offices are asking those tough questions, and a lot of times those answers force institutions to dramatic solutions, such as layoffs. Most can acknowledge that we'd like almost anything cut before lay offs are considered.

But, as we start getting to the grayer areas of what should be cut, a certain degree of vigilance is required so that when the economy comes around again, we aren't back to square one on diversity and leadership gains.

Recent media attention to this top articles have signals that red flags are going up: first, the National Law Journal reports on the number of institutions that have cut both their leadership programs and diversity budgets.

One consultant estimates that 60% of the law firms that were seriously committed to leadership development before the recession have cut back on their leadership spending. The other 40% have either maintained or stepped up their efforts. But ultimately, as budgets get tighter, a lot of the more "long term" goals are giving way to "short term" needs.

Some similar speculation is found in an article from the Daily Business Review, which speculates whether diversity is suffering from the current economy because of the job marken. This article takes an interesting approach, noting that now that so many new lawyers are looking for a job, all kinds of diversity--gender, racial, socioeconomic--may be being impacted as all employers can pick from the top schools, which might not have as diverse of a student body. Cuts to recruiting budgets might also impact the diversity of new hires.

No comments: