Is Talent the silver lining for companies struggling in the recession?

A new research report published today by the Chartered Institute of Personnel and Development (CIPD) has found that despite the downturn, the war to keep top talent remains a priority for most organisations. The War on Talent? is the first in a two part series looking specifically at talent management in a downturn.

Of the 705 respondents, the majority (74%) have not changed their talent strategy at all. Of the 26% that have revisited and changed their strategy, almost one in five (18%) are actually 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%) and focusing on essential development (45%).

While a quarter of respondents have had to downsize, they have consciously preserved key talent throughout this process. Just 3% of those that are downsizing are having to let go of key talent while 11% are taking the opportunity to recruit talent discarded by competitors.

Claire McCartney, Organisation and Resourcing Adviser at the CIPD says:

ìIt is essential that organisations avoid knee-jerk reactions and cost-cutting in the very areas that will make the biggest difference. 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.

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

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

Claire McCartney continues:

ìItís essential that organisations support and empower managers to manage and motivate employees in a downturn. Organisations need to change this mindset if talent strategies are to thrive in this downturn.î