Are organisations responding to today’s difficult economic conditions by cutting back or even abandoning their talent management strategies? Has the ‘war for talent’ turned into a ‘war on talent’? That was the question behind this November 2008 survey of approximately 700 CIPD members.
The findings make surprising reading. Just 26% reported a change in their organisation’s approach to talent management. In fact many businesses continue to see talent management as a key survival strategy to differentiate them from competitors and position them to benefit from the eventual upturn.
Many organisations are also responding to the downturn by adopting positive talent management practices: 55% are developing more in-house talent, 45% are focusing on essential development, 43% are continuing to recruit key talent and 35% are increasing their focus on employee retention. However, only 51% felt that managers are equipped to tackle the challenges of managing talent in a downturn.
The research argues that now is not the time to cut development activity or to renege on carefully conceived talent management plans. However, more cost-effective solutions may need to be found and return on investment will certainly come under greater scrutiny.
Part 2 of this research is now available. It includes case study snapshots highlighting the creative and innovative approaches that ten organisations are taking to talent management in the recession.