Workforce Management Survey Results: Doís and Doníts in a Down Economy

Taleo and Human Capital Institute Publish Best Global Insights from Leading Companies and Management Experts

Taleo Corporation, the leading provider of on-demand talent management solutions, today announced findings from a global survey of 345 corporate executives and respected talent management leaders: ìRecessionary Management: The Top Doís and Doníts for Managing Talent in the Current Downturn.î The survey was conducted in December by Taleo Research and the Human Capital Institute.

The research was based on the premise that this recession is different than any experienced by those in todayís leadership and HR management positions. Therefore, recognising that workforce expenses usually account for as much as 70% of a businessí overall cost, the research sought to distill the best – and worst – practices in staffing management for making better cost-cutting and productivity-impacting decisions, regardless of geography.
Following is a synopsis of Doís and Doníts from business leaders around the globe that can also be accessed in more detail via an accompanying white paper - www.taleo.com/research/research.php

Best Practices in Downsizing:

1. Identify the work that is core to retaining business (Not just the work that is being done well). 56% of companies look at core and critical positions first to prioritise where headcount can be cut, if necessary.

2. Identify competencies needed to meet business goals. Use scenario-based workforce planning and performance management to make better decisions.

3. Protect your bottom line and your brand. When making downsizing decisions, consider that poor execution and planning has long-term brand effects and instant Internet scrutiny.

4. Communicate constantly. Let staff know what you know, when you know it and provide them the dignity they deserve.

5. Pay attention to survivors. Let them know why they were kept, or bear the consequences ranging from low engagement and productivity to leaving of their own volition. Voluntary turnover of key performers has gone from 10% to 25% in the past 12 months, according to Herman Trends.

Worst Practices in Downsizing:

1. Donít cut with a hatchet, use a scalpel. Or, you may be understaffed for the recovery.

2. Donít commit ìdeath by a thousand cuts.î Plan for it well and do it all at once.

3. Donít plan a layoff on a Friday or right before a holiday. Primarily for the survivors: they need reaffirmation and connection.

4. Donít shoot from the hip. Have solid justifications, and consider legal ramifications in your plans.

5. Donít keep employees guessing. Be forthright, honest and as detailed as possible.
Todayís talent management technology provides the tools and the platforms for HR and management to make the right decisions about their workforce. Utilising the best information about corporate goals and individual performance enables organisations to optimise the engagement and productivity of their employees while protecting the corporate brand ó even in the face of layoffs.