By Anna-Marie Detert, Talent Proposition Lead Director
Last year, people issues didn't even figure as a top five priority for global business leaders; this year they rank in fifth place.
Who would have thought that companies would be so concerned about managing and retaining people when a global downturn is underway?
The fact is that they cannot afford to lose good people. Their major challenges, as our survey proves, are cost efficiencies, improving cash management and finding new avenues for growth. And each of these hinges on identifying new people capabilities to deliver on revised business models.
No wonder that talent management and development is a top priority for almost one-third (30 percent) of our respondents.
Clearly, lessons have been learned from past recessions. Without high-potential future leaders and individuals with business critical skills, you simply cannot drive through important initiatives that could restore or improve your company's economic status. This is further validated by the 90 percent of business leaders who do not prioritize cutting the cost of the workforce.
When there is no budget to recruit from outside, management is looking for talent from within, both potential leaders and those with critical skills. They are looking at the internal capabilities of their people; their capacity to be stretched intellectually; and opportunities to re-skill in line with evolving business models. They offer incentives in respect of new career opportunities and greater employability.
However, the issue of incentives is a concern. There are proven linkages between employee engagement, profitability and revenue performance, yet while 43 percent of our survey respondents claim that motivating key people is their top priority, 12 percent continue to use pay and reward to tempt them to stay. This is an outdated approach. Money, as research proves, is a short-term sweetener that does not translate into greater motivation, contribution or loyalty.
While promotion plays a role in retention because it indicates progression, what people value most is career development, training and raw experience. A combination of these factors will help to keep companies afloat in difficult times. In return, people want recognition for the work they do, not just a publicly invisible increase in take-home pay. It is puzzling then that just five percent consider non-financial rewards as important.
My own experience of working alongside corporates on motivation and retention issues has proven the difference that non-financial rewards can make. It may rank last for respondents, but on my priority list, it would be a definite second after talent management and development.
It is that client experience that prompts me to look at two theme results outside the top five: growth in emerging markets and innovation through product development.
Both link directly to talent development. My automotive clients, for instance, are experiencing the value of transferring skills to the emerging markets by seconding home-based talent to bring local workers up to speed. Meanwhile, telecommunications clients are spotting innovative people within their organizations to work in incubator-like environments on future product development.
Organizations like these, which recognize the importance of investing in learning and development to enrich the capabilities of staff to meet the up-and-coming requirements of the business, will be best placed for the upturn when it arrives.
