Fighting the War For Talent During the Recession

At first blush, it would seem that the current recession, accompanied by layoffs, company downsizing and closures, and rising unemployment would freeze the war for talent and recruitment. No so.

Why?

First of all the current economic recession has masked the shortage of workers for two reasons--layoffs have created a ready supply of good workers, and would be job changers are holding onto the jobs they have. But this won't last. Why? Demographics. The number of 65 year olds will surpass the number of 18 year olds in five years. Smart companies are quietly preparing for the next round of talent warfare.

What are some of these companies doing?

* They develop a rehiring strategy. According to research conducted by Watson Wyatt Worldwide, and HR consulting firm, in all past recessions, almost 60% of American companies rehired a significant number of their former employees who had been laid off. Other companies such as Cisco implemented a community program, which placed laid-off employees in a reduced salary outplacement program to assist them to finding another job before they're laid off.

* They overhauled their recruitment and hiring systems. Everything from interviewing, employee orientation and training is reviewed and revised to make it leaner a meaner. The motivation for this rarely takes place during good times.

* They conduct a talent inventory in the organization. This includes creating or revising the company's succession plans and developing bench strength.

* They review and revise their leadership development programs. Survey after survey indicate that people who quit their jobs do so because of their relationship with the boss, not because of dissatisfaction with their job. A recession is a perfect time to take a hard look at leadership style and training to increase employee satisfaction with management.

According to Jobfox Inc., a company providing employment research and consulting, there are three recessionary fallacies when it comes to talent management during recessions:
Fallacy 1: Weak economic activity results in weak recruitment for talent. Not true. Layoffs and downsizing results in reorganizations, reallocation of responsibilities and new positions with different kinds of talent are created.

Fallacy 2: Employers only hire when they are growing. Not true. There is little correlation between economic growth and hiring. The reality is that all hiring is a function of what is called "churn" in the workforce. Workers quit, get fired or laid off, find new jobs or go back to school. There is constant movement. And today, every year, the average professional remains in his or her job three years before they move on.

Fallacy 3: Job hopping freezes during a recession. No true. Top performers invariably leave troubled companies during tough times, and stay during good times.

In summary, recessions cause more, not less churn.
So this recession provides different dynamics for companies in the war for talent. The smart companies recognize that and are already implementing smart strategies to take advantage of that.