The War for Talent is Far from Over

I read two great blog posts this week, both of which took the time to point out that the “war for talent” is far from over. The posts from Eva Rykr and Brian Sommers both point out that now is not the time to radically go off course with talent management programs, but rather take the opportunity to build for the future. This is a topic we’ve discussed before on this blog, but given the current state of the economy, and the projected timeline for economic recovery, it’s worth examining.

As Rykr, an organizational psychologist, so astutely points out:

The downturn didn’t take us back to the Industrial Age. Managerial and executive skills are still just as important and, arguably, even more crucial during this time of stress. The generational numbers gap isn’t changing so the need and competition for talent will still exist. Job hopping may require more creativity from the job hopper’s perspective, but unplanned attrition will still affect organizations negatively– again, possibly even more so now, when key team members have increased influence. So what is up with the hiring freeze? Why the cut in L&D funding?

While I think it’s well understood that companies need to watch the bottom line in the current economy, smart organizations recognize that certain competitive opportunities exist right now. It’s an opportunity to build a stronger focus on achieving strategic business objectives, and ready the organization for the future. If the current talent management strategy is to reduce headcount across the board regardless of performance, or freeze training and development activities, or put strategic HR planning on hold, where are you going to be in 18 months? How can you be successful when you don’t have the talent or plan in place to ramp up your business as the economy recovers and demand increases? It’s important not to be lulled into thinking “I’ll deal with it when it happens.” All that’s going to do is leave you scrambling to find the right people, with the right skills, as every other company in your sector rushes to do the same thing.

Sommers’ blog is focused on “doing something bold now”, and what he suggests to address this problem is bold, but incredibly bright too:

Today, firms should be doing more than just cutting back their workforce. They should be upgrading the talent within their firm. They should be getting the very best and brightest from colleges, trade schools, offshore sources and competitors and using them to create the post-recovery team.

I agree with the idea of taking this time to build for the future, and upgrading talent within the firm. While other organizations execute hiring freezes and cut headcount, yet another opportunity is available which is to hire the talent your organization may not otherwise be able to successfully hire in “war for talent” time conditions.

Rykr concludes her article with this thought, which nicely sums up why organizations can’t afford to put talent management on-hold for the time being:

But my belief is that operating in survival mode is an admission of defeat. In no way is that a strategic move, and in no way does that set you up for long-term success. This is true at both the organization and individual level. But with a little thought, and a focus on the primary drivers of success, there can be both a cost savings and a long-term advantage.

If you want to read more about talent management in a downturn, I’d suggest you read this whitepaper.

How does your organization recognize that the “war for talent” is not over, but merely in the midst of a ceasefire during the downturn? What are you doing to maximize the potential of your talent now? Comment below to share your story.