Talent Management - January 2009 - (Page 4)

[from the editor] by Mike Prokopeak One for the Books Well, it’s ﬁnally ofﬁcial. Last month, a group of leading economists conﬁrmed what most of us in the working world already knew: We’re in a recession. Working folks greeted the announcement with a collective sigh. and home equity dry up. That realization is making its way to the kitchen table as more and more households are hit with job losses and shrinking retirement savings. While broader economic issues continue to dominate the news cycle, does that leave us? The same place we were before. Sure, we’ve all got to buckle down and weather the storm, but as painful as it is in the short term, it’s just a reprieve from a larger, longterm workforce issue. People make all the difference in a knowledge economy, and organizations that weather the economic downturn with talent intact will have the advantage. Beyond short-term cost pressures, successful organizations must remain focused on their ability to manage talent for the long haul. According to recent surveys, our work is still cut out for us. Research by McKinsey & Co. indicates few companies have made managing talent an integral part of their long-term strategy, and cutting talent investments often is seen as a quick way to boost short-term earnings. In part, this breakdown is due to perceptions of the HR function. Sixty percent of line managers surveyed said HR is an administrative department and not a strategic partner, and 58 percent said HR lacked the capability to develop talent strategy aligned to business objectives. There’s no better time than right now to change that perception. The current economy is a challenge, but it’s also an opportunity for talent managers to more closely align themselves with their business partners and hone in on core objectives. Economies bounce back. They always do, sooner or later. Talent managers can take advantage of this time to take stock of new business priorities, refocus HR on managing talent and emerge stronger than ever to do battle once again. Beyond short-term cost pressures, successful organizations must remain focused on their ability to manage talent for the long haul. Using economic data, experts pegged the start of the current U.S. economic downturn sometime in December 2007. That means while many of us were popping champagne at our 2008 New Year’s celebrations, the economy was rapidly taking the life out of the party. While the party gradually wound down throughout the year, guests really started heading for the exits in the last quarter of 2008. Starting in September, stocks slid precipitously and market watchers could be forgiven for complaining of motion sickness as they watched stock indices drop, rise, then drop dramatically again. Job numbers added to the downer vibe. According the U.S. Bureau of Labor Statistics, the U.S. economy shed 533,000 jobs in November 2008, the most in the last 34 years, bringing the annual job loss ﬁgures to 1.9 million for the year. Nearly two-thirds of those took place since September. Fallout from a downturn in housing prices, the collapse of subprime mortgages and overly leveraged banks are listed as the main culprits. In the 2008 election cycle, politicians found a new villain to blame: Wall Street. That’s not entirely fair, as American consumers bear some responsibility, too. We spent our way further and further into debt even as we watched income I haven’t seen much analysis of the economy’s impact on workforce talent. Sure, we all know layoffs are happening at an alarming rate and companies are downsizing, outsourcing, insourcing and turning to any and all alternatives to keep costs in check. But what about the long term? For more than a decade, we’ve been talking about the impending war for talent brought on by increased global competition and dramatic demographic shifts. Starting last year, baby boomers were set to exit the workforce, kicking off a silver tsunami of retirements that promised to reshape the organizational culture and kick off a competitive free-for-all for critical leadership talent. Market conditions have reframed that scenario. After all, when your investments drop like a lead balloon, hitting the links in retirement is more than a chip shot away. Early indicators show critical talent may just be sticking around a while longer. There’s been an involuntary cease ﬁre called in the war for talent, and the implications for talent managers aren’t yet clear. Many of us have spent the past few years positioning ourselves as the leaders in the ongoing battle for talent. All’s quiet on that front now, so where Mike Prokopeak Editorial Director mikep@talentmgt.com January 2009 4 talent management magazine www.talentmgt.com http://www.talentmgt.com

Table of Contents Feed for the Digital Edition of Talent Management - January 2009

Talent Management - January 2009 Editor’s Letter Contents Human Performance Leading Edge Learning Connections Integrate Web 2.0 Into the On-Boarding Experience Show ’Em the Money: Compensation Trends 2009 Transition at the Top How Hollywood Manages Talent and What You Can Learn Get the Most Bang With Limited Training Bucks Life After Layoffs Attract Specific Talent Groups Performance Management: Its Time Is Now Helping the Helpers Advertisers’ Index Editorial Resources Full Potential

Talent Management - January 2009

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