The FINANCIAL -- A new research report from Deloitte U.S. reveals surveyed executives believe the worst of the economic crisis has passed. While many of these leaders look to adopt talent strategies to prevent key employees from leaving for better opportunities, others may be at risk for not implementing talent or innovation strategies needed to seize the opportunities presented by a recovering economy.
“Companies may soon find themselves in a fight for talent as the recovery takes hold,” said Jeff Schwartz, Deloitte Touche Tohmatsu Global Organization and Change Leader. “A defensive strategy of hunkering down with cost cutting and headcount reductions may very well prove to be a losing strategy for weathering the impending resume tsunami. To excel during changing times and the economic recovery, organizations must take an ‘offensive’ approach, implementing talent strategies dedicated to driving innovation.”
A global survey of 325 employees at large organizations (annual revenues of more than US$500 million) revealed the following key findings:
The worst may be behind us
For the first time since this study was launched in January 2009, more surveyed executives now believe the worst of the economic downturn is over as opposed to impending — 31 percent to 7 percent margin.
Reducing headcount is secondary to training and retention as a top talent priority
Less than half (48 percent) of surveyed executives reported layoffs in the last quarter, down from 61 percent in May.
When asked to rank top talent priorities three months from now, for the first time, survey participants pushed headcount reductions down to a clear third, with just 22 percent ranking it highest, behind both training and development (32 percent) and retention (30 percent).
Surveyed executives are ramping up retention initiatives to keep key leaders and high-potential employees on board
Nearly one in three executives surveyed (31 percent) reported they are increasing career path opportunities — a jump of 11 percent from January (20 percent).
After nearly a year of austerity, even compensation is back on the table, with 28 percent reporting they plan to increase compensation levels over the next 12 months, up from 15 percent in January.
Talent managers also see flexible work arrangements as an effective retention tactic; 35 percent of those surveyed plan to increase their focus on this area.
Surveyed executives clearly understand innovation will help navigate today’s difficult economy, but they are not prepared
Executives surveyed responded that innovation is either very important or important to their company now (84 percent) and will continue to be important one year after the recession ends (82 percent) and three years in the future (85 percent).
More than six out of ten survey participants (61 percent) acknowledged they either had no talent strategy currently in place to drive innovation or did not know if they had one.
An overwhelming majority of surveyed executives (88 percent) fear they will not have the necessary talent to lead their innovation programs after the recession ends.
A copy of the report and latest information about talent strategies and innovative talent and work solutions are available on the Talent Management website. The report is also on the Forbes Insights website. The fifth edition in Deloitte U.S.’s longitudinal survey will be published in January 2010, completing a year-long study tracking talent trends and attitudes from the depths of the recession through the emerging economic recovery.
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