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Talent Management Perspectives

Published July 2009

The Big Problem Facing Talent Managers? The End of the Recession

 

  Deanna Hartley

Organizations may have struggled through hardships and made tough decisions as a result of the recession, but recent research shows one of the biggest issues talent managers will have to face is the end of the economic downturn.

While employees are more prone to making sacrifices to keep their jobs during recessionary times, the majority of employers will be faced with unprecedented turnover rates when the economy bounces back, according to Adecco Group's most recent Workplace Insights Survey.

"Everyone has heard and agrees with [that finding], but very few are actually doing something about it," said Rich Thompson, vice president of training and development for Adecco North America.

For instance, during the recession, companies exercised caution and asked employees to make sacrifices, including pay cuts, to help them navigate through tough times. "What once used to be considered a perk is no longer - a lot of those peripheral things that existed to make a job attractive and make someone want to stay at their job are gone," Thompson said.
 
"In one part of the conversation, we're talking about reductions - in cost, staff - and in the next breath, we're talking about innovation from a talent management perspective to make sure the best of the best are going to be with [the company] when the market changes," he explained.
 
Given the current economic situation, most organizations in the United States are in survival mode instead of thinking long term, Thompson said.

"It's hard for organizations to be forward-thinking because in some cases there needs to be investment - not necessarily financial or economical, but an investment in time, [for example] - that needs to happen to show [that] the best employees in the organization are not just the people who are going to keep [the company] afloat now but are going to help [it] grow in the future," he said.

Currently, the flow of passive candidates - or those already employed who are networking and open to prospective job opportunities elsewhere - is on the rise.

"People are going to start weighing their options, and we predict they're going to jump as soon as they get the opportunity to do that," Thompson said.

Thompson offered three practical steps employers can take to retain their top talent when the economy turns around.

Identify top talent: "Don't be scared of losing the wrong people, but you have to be able to identify who the right people are," he said.

Have talent discussions: Once the high performers are identified, talent managers must find out what their career goals are.

"This would be a great conversation to have right now with an A-player: 'Look, we know times are bad, but we know this [economy] is going to turn. You are a key player in this organization; what can we do to help you when the market comes up?'" Thompson said.

Map talent discussions to action: "From a talent perspective [and] a growth perspective, organizations need to come up with a plan to make sure they're aligned with the needs of an A-player," he said.