Talent Management During Recession

With a deep recession sweeping across the globe,most of the organizations are feverishly executing cost cutting exercise, to maintain profitability and competitiveness.

Even in India ,despite strong immunity to the crisis, millions of jobs have vanished in few months and a salary cut of 10%-20% across the level in most of the segments are not talk of the town.

However, while reducing the head count or employee cost, organizations must keep in mind,it's impact on their brand Equity as an employer.

Recession or Boom , talent shortage will continue to haunt the corporate world and a long term strategy should be devised, to maintain both internal and external reputation, through intelligent strengthening of the value proposition being offered to current and potential employees.

Cost cutting is essential , primarily for for survival during an economic down turn but a rational approach calls for  continuing with selective hiring along with emphasis on training and development programs.

Organizations should focus aggressively on redefining employees/positions "Domain of Responsibility" & "Span of Control", through effective performance management initiatives.

A balanced approach in improving the productivity level to counter the negative impact of down turn, shall maintain the morale of existing employees, there by reducing the out-flow of valuable contributor ,which is an unavoidable element of any downsizing exercise.

Management must remember that, it’s difficult to re-establish brand strength as a potential employer, if the efficiency, morale, and motivation level of the existing employees are decreased drastically ,ultimately spoiling the work culture of the organization.

Today 'Cultural Fitment Analysis' and Referral Checks Exercise" are religiously done not only by potential employers but also by potential employees ,before closing the deal and the information is spread through word of mouth.Hence, even during down turn also,organizations should focus on maintaining brand equity as a potential employer and continue with selective hiring to ensure a steady induction of the right talent.

Retention and Induction of right talent is a continuous process, through out the business cycle, consisting of both Boom and Recession



Author : Abhijit Kar

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