With the unsettling sound of Lehman Brothersí collapse still ringing loudly in our ears, a recent study by PDI has reassuringly revealed that where possible, CEOs are desperate to hang onto their employees in order to weather the storm of the current financial crisis.
PDIís study, which surveyed 530 human resources professionals and other business leaders around the globe, revealed that extra effort is put into retaining key employees during an economic downturn.
ìIt may seem counterintuitive that rganization are more concerned with retaining key employees in a down economy. But, when the economy is tight, company leaders realize that the best and brightest talent can give the rganization a competitive advantage,î said Simon Callow, Managing Direcor PDI UK. ìUnfortunately, with fewer resources, many employees are overworked and worried about the future and look outside the company for other opportunities. Thatís why focusing on the right retention tools is more important than ever.î
Leaders acknowledge that training and development is the most successful strategy in retaining employees. However, they admit to often failing to put it in to practice. Instead,
the research shows that most rganization appear to take a shotgun approach offering employees instant cash incentives, instead of focusing resources on training and development.
ìWe advise companies to prioritize their retention strategies, identify key talent pools, and make strategic choices that help keep high-performing employees engaged and committed,î Simon continued, ìEven in a tight economy, there are steps that companies can take that make a big impact without costing money. For example, senior leaders can make the effort to speak one-on-one with key employees to communicate how the rganization values their contributions. Leaders can ask key employees to participate in strategy discussions that make the employee feel more invested in the company and more involved in developing company solutions.î
In order to retain top talent successfully, PDI UK recommends:
Identifying top performers and high-potential employees
Tracking turnover rates of these key employees separately from overall turnover figures
Having senior executives talk individually with key employees to communicate the employeeís value to the company
Investing in proven retention practices including developmental opportunities for key employees
Keeping good talent during bad times
What is the best way to retain key employees during an economic downturn?
