Retaining Talent – Crucial in Economic downturn

The desire of organisations to invest in their human capital will be put to the test in the coming months as they enter a period of economic turbulence and possibly sustained weak financial market performance, according to an international management consulting and outsourcing firm.

Several studies released this year suggest that human resources – specifically the need to acquire and retain the best available talent – has become the primary concern among CEO’s and business leaders. Additionally human resources is rapidly replacing financial capital as the growth driver and corporate strategy focus for large businesses.

While some staff reduction my be warranted, companies are urged to appreciate the importance of attracting and retaining top talent regardless of the economic climate. "In economic downturns, even more than at other times, organisations need to focus on how they will continue delivering value to their clients and customers." Said Allan Preiss, a senior consultant in the Melbourne office of Hewitt Associates. "Restructuring is part of this and should be a proactive rather than reactive process that is used to build organisational capability rather than simply shed people."

The message is clear: corporations need to think through their human resource policies carefully before reacting to the winds of market change. Retaining and motivating people will prove critical to maintaining stability in the enterprise and confidence among investors and clients alike.

The ability to retain and keep staff motivated is critical to running a successful business. Discovering People has produced a number of newsletters in the past – covering this very subject. Please feel free to browse our site – go to "employer information" situated on the navigation bar on our home page. www.discoveringpeople.com.au

*Human Resources magazine pg 6 - November 2001

Outplacement services – Benefits company and employee

Being retrenched can often be the catalyst needed to rethink your career. The current market has seen some companies downsize with an increasing provision of outplacement services as part of the total redundancy package, according to a leading outplacement services firm. Outplacement services provided support for retrenched employees by offering them counselling, career guidance, training and help looking for another job, and advice is also offered for those considering a change in career direction.

"Organisations want to be seen, by their current employees, as doing the right thing. The provision of outplacement services as part of the overall redundancy package means it is less likely that any retrenchments will result in a demise of motivation and loyalty for the staff still employed there." He said three months’ outplacement services on top of a standard redundancy payout was generally seen as a decent settlement that ensured retrenched employees leave on good terms with the company.

*Human Resources magazine pg 3 - November 2001

Discovering People offers outplacement services – please feel free to direct any of your enquires to Michelle Novotny – Managing Director.

If you require any assistance filling your vacant positions, please feel free to contact our office on 9570 2411.         

If you have any questions, human resources issues to discuss or would like to give any feedback in regards to this newsletter, please don't hesitate to email me - mnovotny@discoveringpeople.com.au

Michelle Novotny

Managing Director

Discovering People