For many Canadian businesses any renewed sense of optimism is tempered by the doom and gloom of the current economic landscape. But despite the uncertainty, most would agree that the global economy is cyclical – it will inevitably rebound and, within a few years, organizations will be competing even more intensely for talent. The company, therefore, that is able to successfully weather a potential economic storm will be the one agile enough to recognize the strength of its current talent pool and better assess how to leverage employees as a strategic asset. This also includes the ability to maintain a high quality of hire within a low growth economy.
But what can today’s organizations do right now to ride out the storm while positioning the business for the next economic boom? By taking a deeper look at workforce management challenges in 2009, HR departments should not only be equipped for a tightening economy but be better able to prepare for the expected boom times ahead. In fact, past economic shifts have also been viewed as opportunities to drive growth and capitalize on incremental business opportunities.
According to a recent Canadian Unified Talent Management study conducted by Taleo Research and the Human Capital Institute, 58 percent of respondents noted that enhanced talent management is essential for business success. While companies used to focus on the efficiency of transactional HR operations, today’s organizations are more concerned with variables such as leadership, performance and increasing retention and productivity.
Indeed, talent management – best practices around recruiting, onboarding, internal mobility, performance and goals management, career and succession planning, and compensation – should be seen as a huge competitive driver in 2009. This means adopting a more forward-looking approach to acknowledging and understanding your talent and staying abreast of key employee trends and issues. It also means looking to further develop or extend the current talent management tools within the organization. The companies that succeed will be the ones that improve employee retention, boost national competitiveness and leverage social networking tools.
Enhanced employee engagement
Even as companies shift economic gears in 2009, a successful talent management strategy will be the one that focuses on a lean, finely tuned workforce with an emphasis on strong employee retention. Particularly within a tightening economy, enhancing employee retention of top performers can have a direct impact on the bottom line in terms of revenue generation and earnings potential. According to industry consulting firm MAP's Quarterly CEO Survey, open communication is valued more than salary raises by nearly a factor of two. And in a slowing economy – where stakes are high and morale is low – low-cost perks can go a long way. This could also entail something as simple as a thank you; recent analysis from UK-based White Water Strategies reveals that consistently acknowledging staff achievements can have the equivalent perceived value of a one percent pay increase.
However, talent management is more than just succession planning; it upholds employee engagement as the platform for improving staff motivation and productivity. This means that managers need to encourage an ongoing dialogue about performance – including solid career pathing strategies and a clear indication that an employee's career development is critical. In addition, investing in existing staff can be essential for companies to be better positioned for recovery. Simply showing that the company has a stake in the growth of its workers can make a considerable difference in the long run.
Standing tall on a global stage
Although most corporations think in terms of globalization, countries think more about how their national economies fit into the global scheme. In addition, closely reviewing national competitiveness now and in the future delivers important insights for many countries. A report from The Canadian Chamber of Commerce reveals that worker skills play a vital role in a nation's productivity performance and are essential to businesses' ability to grow and succeed.
When it comes to workforce management, many organizations still operate within fragmented applications. Data is not shared and reporting is disjointed and siloed. A talent management system that closely aligns staff activities and performance with specific business goals allows for a more strategic organization – one that can thrive within an economic downturn and is better positioned to develop a competitive edge.
Specifically, the report notes that Canadian businesses of all sizes are facing challenges in finding skilled workers to help them grow and prosper. Talent management becomes an even more important priority with the overall global economy. What this means for HR is that a talent management strategy should ensure that talent closely aligns with current country standards for best success, and that there are opportunities for continuing innovation. To boost productivity and reduce costs, adopting a comprehensive talent management application can create a foundation for more agile HR processes. An optimized recruiting solution, for example, can mean the difference between sifting through thousands of resumes and rapidly hiring the best candidate available.
In an economic downturn, companies typically receive high volumes of resumes as an increased supply of candidates applies for vacant positions.Talent management in a low growth economy offers new opportunities to deliver significant business performance benefits in the face of economic constraints—especially internal mobility, performance management and quality of hire. It also reinforces the popular idea that large international companies need a consistent global approach to talent management and local flexibility to meet regional talent challenges effectively.
This includes increased labour mobility and improved access to career development opportunities. It also means being more strategic, specifically around capitalizing on opportunities to upgrade talent and boost your employment brand during an economic downturn when top talent becomes available.
Transparency is the new black
The current economic landscape also presents a strategic opportunity to adopt alternate or non-traditional methods such as social networks. Businesses need to understand that organizations are not in sole control of their published information and responses to their actions. Social media tools such as blogs and social networking sites are putting a new spin on employee communications.Although many organizations currently do not allow access to social networking sites such as Facebook, MySpace, and LinkedIn, social network usage is a reality.
Many HR departments are already reporting that there is a higher rate of new hire turnover among Millennials. Not only is making legitimate social network job connections beneficial to the recruiting process, it can be a great tool for mentoring and retaining talent as well. Online social networks allow workers to stay connected with colleagues and can be a source of referral for passive jobseekers.
Simply put, as socially networked community expands across generational and geographic lines to redefine the concept of connected, it has become essential to an updated employment brand and making the right connections.
Lower costs, higher productivity
It's no secret that this year is fraught with economic uncertainty. Particularly in light of current economic events, 2009 will be a time for strong talent management practices —including career and succession planning—with an eye on retaining and motivating talent. Successful talent management strategies allow companies to benefit from lowered internal costs and increased productivity—which are especially welcome in a constrained business climate.
Organizations need to incorporate a holistic and integrated approach to talent management in order to improve employee retention and keep workers happy and productive at all levels. While the objective is to deliver a sustainable and competitive industry edge, developing a successful HR and talent management strategy involves a solid commitment to managing and motivating workers while supporting the underlying business operations. Implementing a strong unified talent management solution to support these goals, therefore, can deliver deeper visibility into a workforce. This includes the ability to reveal top performers, identify skill sets and be better positioned for future growth. Instead of waiting for an uptick in the business cycle, savvy organizations should view an economic downturn as an opportunity to upgrade talent and emerge stronger.
