We are beginning to see glimmers of positive economic news shimmering behind the clouds. Businesses have cut costs, re-set strategic initiatives and improved performance.  Some companies have reported improved financial results for the last quarter. The Bank of Canada declared the recession has ended.

Yet, individual workers are still in the trenches struggling with job losses, pay cuts and new economic realities. Microsoft CEO Steve Balmer describes the situation this way  “I think we have reset at a lower level.” He goes on to explain how he expects growth, but that the starting place will be lower than previous levels.  

Amidst the news of recovery, experts remind us that recovery is not real until unemployment drops.  According to CBC “For many Canadians, "it's not a recovery until they start getting their jobs back. And on that score, we could still be in for a long wait," Avery Shenfeld, CIBC economist, said in a report." The New York Times reported that President Obama said,  “new hiring is among the last things to improve during an economic recovery.”  And, Wharton experts warn that  “positive growth may not be here yet, and that even when it does arrive, it will probably take several years for employment rates to return to so-called normal levels.”

Just as talent management processes were critical when companies were deciding where to make cuts, these processes remain critical during the downturn.  Alice Snell of Taleo cites research that shows companies with top-notch talent management processes in place do better during a recession. Looking to the future, Alan Schweyer reminds companies “It would appear that even in the best-case scenario, many workers will jump ship as soon as the job market rebounds.”

To cope with economic conditions, is your company currently investing less, more or the same amount of time and resources as before in talent management?

References:

Davenport, Tom. “Executive concern for employee well-being drives engagement” Towers Perrin [www.towersperrin.com]. July 24, 2009.

“Economic Recovery: Are Happy Days Here Again?” Knowledge@Wharton [www.knowledge.wharton.upenn.edu]. June 10, 2009.

“Obama: Hiring Will Be Among Last Things to Improve.” The New York Times [Associated Press] [www.nytimes.com]. July 22, 2009.

“Ontario businesses more optimistic, survey finds” The Toronto Star  [The Canadian Press]  [www.thestar.com]. July 10, 2009.

“Recession over Bank of Canada says” CBCnews.ca [www.cbc.ca]. July 23, 2009.

Schweyer, Alan. “The impact of this Great Recession on the US workforce.” Human Resources Leader [www.hrleader.com]. July 21, 2009, pp. 14-15.

Sellers, Patricia. “Balmer: Economy has reset.” Fortune CNN Money.com [www.money.cnn.com]. June 29, 2009.

Snell, Alice. “Talent Management Correlations.” Taleo Talent Management blog [www.taleo.com]. July 24, 2009.