Is talent the silver lining for firms struggling in recession?

A recent report published by the Chartered Institute of Personnel and Development (CIPD) has found that despite the ongoing economic downturn, the war to keep talented employees remains a priority for most organisations.

In the survey, which looks specifically at talent management in a downturn, the majority (74 per cent) of the 705 respondents had not changed their talent strategy at all. Of the 26 per cent that have revisited and changed their strategy, almost one in five (18 per cent) are placing more emphasis on identifying, developing and retaining talent.

In light of the downturn, talent strategies have been revisited, reworked and streamlined to improve their cost effectiveness, with organisations looking for internal options to retain talent – the most popular positive practices include developing more talent in-house (55 per cent) and focusing on essential development (45 per cent).

While a quarter of respondents have had to downsize, they have consciously tried to preserve key talent throughout the process. Only 3 per cent of those that are downsizing are having to let key talent go, while 11 per cent are taking the opportunity to recruit talented workers that have been discarded by competitors.

“It is essential that organisations avoid knee-jerk reactions and cost-cutting in the very areas that will make the biggest difference,” said Claire McCartney, organisation and resourcing adviser at the CIPD.

“Now is not the time to halt employee development nor is it the time to postpone or scale back talent management strategies. However, more cost-effective solutions need to be found as return on investment will come under greater scrutiny.”

Ms McCartney said that managing, developing and motivating talented employees had become even more important because it is the one thing that can differentiate organisations and ensure they not only survive the short-term, but thrive in the long term.

Despite innovative methods already being put in place, the research did highlight that managers as a whole are not well equipped to manage talent in a downturn. While half (51 per cent) feel that managers have the necessary skills to some extent, only 6 per cent suggest that they are equipped to a great extent and 13 per cent feel that they are not equipped at all.