How Can Companies Best Manage Talent During the Economic Downturn? (Part One)

by TMT Editor

For talent management professionals, this is the prevailing concern; nobody wants an unmanageable payroll when times are lean, and nobody wants to be short on staff when times get fat again (and they will). That means managing the laying off and retention of the workforce during the interim in an effective manner.

Much of the process is intuitive: Lay off the poor performers and be sure to retain the most productive employees. Oh, and make sure those who get to stay feel good about that (and their employer's intentions), because any workforce cutback runs the risk of engendering cynicism and seriously demoralizing even the most cheerful employees.

This intuition to do these things occasionally loses its sway among management types, especially when it's needed most -- e.g., when companies scramble in short order to weather recessionary economic circumstances. Recently, I blogged on research from TalentDrive, which not only suggests that hiring is bound to return later this year (see link above), but also that investments in talent management technology is failing to keep pace with the predicted reality.

Yet technology is an indispensable tool for any firm that wants to manage its talent effectively in turbulent economic times. "The investments in technology should be now, no matter when the uptick in hiring will be," says Taleo's Director of Solutions Marketing Chris Tratar. "Screening and selection technology are important right now, as is the ability to align your talent with drastically shifting, cascading goals within the organization."

In an effort to help companies retain not only their best employees, but also their very bearings during an economic downturn, Taleo Research and the Human Capital Institute (HCI) in fact recently issued Recessionary Management: The Top DOs and DON'Ts for Managing Talent in the Current Downturn, a white paper on the subject. The related news release, on TalentManagementTech.com, provides top-line "findings from a global survey of 345 corporate executives and respected talent management leaders," the announcement states.

Observing that this recession is shaping out to be different and farther-reaching than past economic downturns, Taleo and HCI nevertheless note that a recovery will be inevitable; they therefore provide readers with best and worst practices for managing talent during the interim. For instance, top among best practices, according to the survey's findings, is to "identify the work that is core to retaining business" itself, and top among worst practices is cutting with a "hatchet," and not a "scalpel."

A recording of the accompanying webcast is available.