The financial crisis of 2008 has not only been a catalyst for organisation and individual introspection, it has also put the spotlight on how organisations manage their business and human capital. Asia appears to be moving into 2010 with a promising outlook, and whilst a return to previous prosperity will be welcomed by all, it also signals the return of the war for talent. Employers will be, once again, precariously balanced on a wire.
The unfavourable economic environment and job insecurity that fueled the recent spike in employee loyalty, compelling many employees to put their job search temporarily on hold, is now rapidly improving. It is inevitable that good talent will quickly start to be more open to career changes as soon as they perceive that market conditions are recovering. There are already indications that the number of active job seekers will swell dramatically when the economy turns. It is therefore crucial for businesses, now more than ever before, to take a long-term view of their talent management strategies and take proactive steps to set retention plans in place.
The strains of the recent environment have highlighted, and most likely exacerbated, the divide between management and employees. Employers have consistently overestimated the mood of their employees and this lack of understanding now needs to be addressed at a grass roots level of any organisation seeking the levels of trust and collaboration required to overcome difficult times.
A critical starting point for employers is to consider which employees or groups are most at risk of resigning, by being fully tapped into the mood of their workforce. Businesses should encourage their managers to prioritise employee needs, sentiments and aspirations to not only retain their talent but further prepare them for ongoing change. Indeed, our experience reveals that many managers are out of touch with their employees or lack the skills to effectively lead them through change. Reviewing selection processes for leaders and ensuring there is appropriate emphasis on people leadership, change management and empathy must take precedence.
Organisations should also identify the business critical roles that will help drive recovery, review existing profiles for these roles and look to develop these skills internally, or establish a plan to upgrade their talent by ensuring the external talent pipeline is geared to meet demand.
Our business environment has changed substantially and, along with it, people’s needs and attitudes. Do not assume previous selection criteria and recruitment processes still apply.
Organisations need to establish more robust selection criteria and meet the demand for more efficient candidate management processes. Candidate prioritisation, responsiveness, transparency of information, and communication that clearly manages the expectations of the applicant pool are key. Jobseekers will equate these actions with a respectful, high-trust environment.
Organisations should also reevaluate their Employee Value Propositions and consider how they can emphasise job security, training and development. Employers can reinforce these messages by leveraging the stories of how their business has managed people though the downturn to sell to future employees. Chances are many job seekers will be dissatisfied with these aspects of their current employer.