Perhaps it’s safe to say, for the most part, corporate downsizing has slowed and in theory only the A players are left standing.  If you’re a business leader navigating today’s tough economic climate you need to stop and think about the impact of retaining your best and brightest. 

Many businesses tend to be shortsighted and assume their employees will remain loyal and ride out the challenging times, believing that the scarcity of opportunities and the high risk of change will deter people from leaving their current jobs.  Another assumption is that in better times companies will be able to attract additional talent.

These assumptions are far from reality. In these uncertain times, top executives are feeling unappreciated and they are often susceptible to listening to your competitors offers. Companies who see this environment as an opportunity for growth are on the lookout for your top performers.  And it won’t take a big salary increase to attract talented people.

In the fight for talent, the most attractive companies will be those that have shown commitment and have continually focused on employee development and building future leaders. While compensation rewards are less of an option, in what ways can your company rebuild trust and motivate and retain your valuable employee base?

There are many ways to harness productivity and bolster commitment and increase job satisfaction even in this economy.  Some of our clients have shared their successes in creating a more productive workforce with the following initiatives:

• Ask employees what they value most in these economic times, what motivates them and how best to invest in their future. There is no single strategy but rather different priorities and expectations that drive the different generations of Baby Boomers, Gen Xer’s and Gen-Y’s.
• Consider ‘total rewards’ that include benefits, additional flexibility, telecommuting, time off and job sharing. Recognize the need for balance between professional commitment and personal desires and obligations.
• Show that employees are valued while reinforcing advancement as a priority of the Company.
• Invest in career and skill development, career pathing, executive coaching and skill and management training.
• Communicate, communicate and communicate. When possible, share short and long term goals so employees understand where they fit in the overall direction of the company.
• Develop ways to recognize and reward top performers and high potential employees that include spot bonuses for meeting specific performance, remembering that targets are most impactful rewarded on a timely basis.
• Re-energize the workforce through increasing job responsibilities, and providing additional challenge while filling skill gaps created by the downsizing.
• Reward creative ideas and involve employees in decision making.
• Demonstrate how individual and team accomplishments impact the bottom line.

Companies cannot afford to ignore their talent needs.  Executive leadership’s approach to people initiatives must dovetail financial goals and be woven into the fabric of the company.  The importance of retaining and developing top talent is paramount, and companies cannot afford to take the risk of ignoring retention issues.  We need to look at talent as our most valuable resource - for the short term and long term health of business.

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