Is Talent the Silver Lining for Companies Struggling in the Recession?

Friday February 13, 2009 
www.talentmgmt.com

In tough economic times, it becomes more than just an opportunity, but a necessity for talent managers to provide strategic leadership to their businesses. Regardless of industry, size of company or type of business, talent managers will be challenged in the upcoming year to get the most productivity out of fewer employees, retain key talent and continue attracting valuable employees despite recessionary financial constraints.

In the upcoming year, talent managers should plan for changes, invest in strengths and take advantage of the weak economy to position their companies for future growth. Here are a few tips talent managers can use to help successfully steer their companies through both good times and bad:

• Build and maintain a strong employer brand.

Employers who are serious about attracting and retaining the best talent should take time to build their employer brands to differentiate themselves from competitors. Educating job seekers and employees about the company during the economic downturn will help make it easier to attract high-quality talent when the economy picks up.

• Keep up with industry trends.

Now more than ever, it is important for talent leaders to continue to closely monitor job and candidate activity across various industries to identify and predict marketplace fluctuations and opportunities occurring in the job market. By understanding the trends affecting their industries, talent managers will be able to make more informed business decisions and capitalize on the soft job market to attract new talent.

• Cherry-pick top talent from competitors.

Although hiring in a recession may seem to go against common logic, it actually is the perfect time to look for great hires typically unavailable under normal circumstances. Many companies have been forced to or have made the decision to downsize their organizations. That means some of the most talented professionals likely will be looking for jobs in 2009. Think of this as an opportunity to enhance the organization and build a workforce with a proven ability to be successful.

• Identify sources that produce high-quality hires.

As a result of the weak economy, recruitment budgets likely will be reduced, and fewer employers will be willing to pay large sums of money for a recruiter, especially when so many talented professionals are looking for jobs online. Talent managers are realizing the need for a targeted recruitment strategy and are turning to niche job boards to find quality and relevant candidates at a reduced cost.

Further, more companies will begin utilizing social networking sites in their recruitment programs to help promote the company and identify potential candidates for the business.

• Communicate the plan of action to employees.

In a time of economic uncertainty, employees will look to management for leadership and guidance. Employers should be honest with their workers and clearly explain any plans the company has to build to survive the recession. It is better this information comes from management rather than from peers talking around the office water cooler. If employees understand the company's goals, they can put rumours to rest and focus on strengthening their performance and individual contributions to help position the company for growth.

• Reward talent with strategic employee recognition.

It is important for employers to ensure employee engagement and reward high performers, which will help increase workforce morale. Although budgets may be tight, talent managers should look for creative ways to reward staff in the upcoming year by offering programs such as summer flex hours, increased numbers of holiday days and stock options.

Team-building activities also are a great way to encourage innovative idea generation and brainstorm ways to be more efficient. Investing in talent will help ensure a company can retain the employees it can't afford to lose, while also helping the business become more competitive when the economy bounces back.

Although a recession is not an ideal situation for any business, it presents new opportunities for talent managers that would not exist otherwise. As a result of the shrinking economy and job market, the number of qualified candidates available has increased dramatically, allowing employers to renew their focus on quality of hire.

Challenging times are also encouraging many talent managers to enhance their employer branding and get more creative with recruiting and talent management strategies. Businesses that learn how to turn the current economy crisis to their benefit will have the best chance of surviving the recession and may even come out ahead in 2009.