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 Are you likely to crash and burn if a recession is likely to hit? Or are you on course to ride the storm and use it as an opportunity to clear out the driftwood, pursue a different course, and continue to test the strength of your top talent? Taleo, talent management software provider, says it's time to get smart.
Plan of action
Chris Phillips, Taleo's international marketing director, based in EMEA, and Al Campa, senior marketing officer, based in the US, both argue that while there are likely to be challenging times ahead in the coming months, HR needs to act now and start putting together a plan of action rather than sticking their heads in the sand. Campa comments: "In a buoyant economy, a high tide can support all boats, however, in a low tide, some boats may struggle to keep afloat."
While Phillips and Campa admit they cannot predict what's going to happen or forecast whether a recession is going to hit, they argue that it's worth preparing for when there's an economy squeeze. It's also worth remembering that in the last recession in the United States, total turnover of staff only fell by 3% from an average of 25% down to 22% so you still need to focus on your talent pool. You still need to think, where's the growth going to come from in a tougher market and part of that process is to look ahead and take a proactive approach in developing your talent pool well ahead of time rather than being reactive.
Weathering the storm
"Any good CEO will have a strategy to weather the storm. However, HR needs to find out what that strategy is and help manage it, especially if it involves slashing jobs," says Campa. To explain, he says that HR has to make sure that if there are going to be job cuts, and although it's tough, you have to think; who are the weakest links in the organisation and ensure your CEO is not getting rid of future or top talent.
Once, you've made the cuts, it's then up to HR to keep up the spirits of the remaining workforce by not allowing employees to get scared that they are going to lose their jobs in the next round. An HR leader has to make sure the CEO is not going to bring down employee morale by making them feel disillusioned, but instead get them onboard by communicating the company's overall objectives for business as well as personal growth.
Phillips further argues that you have to think of smart ways to move your talent around the organisation and to strengthen that talent by upgrading your teams rather than let it diminish so that when the gloom lifts, you are still left standing strong.
New markets and future growth
Phillips and Campa reveal that savvy employers are looking beyond the gloomy forecasts and diversifying into new markets such as India and China where there are lots of exciting developments.
So, take stock of your business and look to where you can spread out, by thinking globally. For example, one of Taleo's clients, in the hotel trade, is planning on opening up 100 hotels in China in the next year and will be going through massive expansion. Don’t be affected by the credit crunch. Think about the set of skills you will need and develop your talent accordingly.
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