Talent is the Silver Lining for Companies Struggling in the Recession

A new research report published by the Chartered Institute of Personnel and Development (CIPD) has found that, despite the downturn, the war to keep top talent remains a priority for most organizations. “The War on Talent?” is the first in a two-part series looking specifically at talent management in a downturn.

Of the 705 respondents, the majority (74 percent) have not changed their talent strategy at all. Of the 26 percent that have revisited and changed their strategy, almost one-in-five (18 percent) are actually placing more emphasis on identifying, developing and retaining talent.

In light of the downturn, talent strategies have been revisited, reworked and streamlined to improve their cost effectiveness, with organizations looking for internal options to retain talent. The most popular positive practices include developing more talent in-house (55 percent) and focusing on essential development (45 percent).

While a quarter of respondents have had to downsize, they have consciously preserved key talent throughout this process. Just 3 percent of those who are downsizing are having to let go of key talent while 11 percent are taking the opportunity to recruit talent discarded by competitors. “It is essential that organizations avoid knee-jerk reactions and cost-cutting in the very areas that will make the biggest difference,” said Claire McCartney, organization and resourcing adviser with the CIPD. “Now is not the time to halt employee development nor is it the time to postpone or scale back talent management strategies. However, more cost effective solutions need to be found as return on investment will come under greater scrutiny.

“Managing, developing and motivating talented employees is even more important because it is the one thing that can differentiate organizations and ensure that they not only survive the short-term but thrive in the long term.”

Despite methods already being put into place, the research did highlight that managers are not, as a whole, well-equipped to manage talent in a downturn. While half (51 percent) feel managers have the necessary skills to some extent, only 6 percent suggest they are equipped to a great extent; and 13 percent feel they are not equipped at all.

“It’s essential that organizations support and empower managers to manage and motivate employees in a downturn,” McCartney said. “Organizations need to change this mindset if talent strategies are to thrive in this downturn.”


Source: Talent Management