Talent Management during a Recession
So you think your Succession Planning tool is only helpful to fill the upcoming gaps created by the departure of the Baby Boomers from your company? Think again.
For the sake of this discussion, let's assume that the US has already entered a recessionary period. If you're in an industry tied closely to consumer demand or the housing market, you're probably already feeling the pain. For some of you, it's time to start considering temporary reductions in your workforce. Here are some of the ways you can leverage the information in your Talent Management System (TMS) to assist you in the process.
1. The most obvious way your Talent Management system can help you during times of layoffs, is to identify your marginal performers. Although Executives will rarely admit it, layoffs are a great time to "clean house" and get rid of your employees that may be "on the left side of the bell curve..."
2. On the flip side, your TMS can help you identify the employees that are critical for you to keep during a reduction in force (RIF.) Once you've established the list of critical positions that need filled, the TMS can identify the best candidate for each position.
3. During a RIF, it's critical to have to flexible and multi-skilled workforce. This allows you to shift resources around the company, based on the changing needs during a recession.
Recessions are a fact of life. Those that ignore them, are destined to fail. Those that recognize them, and react accordingly, weather them just fine.