More Than Just Automating Performance Reviews: Shifting Talent Management Priorities October 5th, 2009

Sean Conrad

I came across a solid article recently, referenced on the blog entitled, that focuses on trends related to the Millennial generation. The blog pointed out a piece from strategy + business magazine that explores how generational differences in the workforce are necessitating new and emerging talent management strategies. It discusses how to engage and retain employees in these tough economic times. I was particularly interested in this observation:

The commitment of employees is most needed in a crunch, and that commitment is all too easy to lose… after a round of layoffs, voluntary attrition spikes by as much as 31 percent, and precisely the wrong people - those who have the strongest track records and brightest employment prospects even in a recession - are most likely to leave.

I was at first surprised to see that turnover of good employees spikes after a round of layoffs but upon further reflection, it made perfect sense. Good employees will find work in any economic conditions - period. So if an employer is sending out signals not only that it’s downsizing, but also perhaps that it’s faltering in its big-picture mission, or that it’s unable to invest appropriately in remaining employees, these superstar workers won’t hesitate to find an employer who will.

The article outlines the new paradigm for positioning an organization as a “good” employer, in the eyes of all three generations of workers, based on shifting priorities and preferences of workers:

All three cohorts have made clear their desire for greater flexibility. They no longer want (or have given up hope of finding) the “organization man” model of lifetime employment and rigid hierarchies. They are interested in striking “talent deals” with their employers to balance their work obligations and private lives. They thus seek modularized work arrangements such as seasonal leave and flexible time. But they also expect to be part of high-impact teams that generate meaningful and valued results — within their companies and, if possible, in the world at large.

So how do we in HR adjust our policies and procedures to meet these desires, while working with limited resources in lean times? I’m not sure of the exact answer, but I know we need to be more creative, more strategic, and more focused on getting feedback directly from our employees about what they need and want from us. The article sums it up best:

This new talent management model allows a much broader group of people to assume positions of responsibility. It promotes innovation, growth, and breakthrough performance by integrating the needs of the business with those of individuals. And when aligned with a clear and focused corporate strategy, it allows top management to optimize compensation, training, and other expenses; maximize the productivity and performance of the workforce; and gain competitive advantage.

These are just preliminary musings, so let me know what you think by commenting below.

Tags: employee engagement, Generation Y, performance management, talent management