Competitive Edge: It's the Talent, Stupid!
Despite an economic slowdown and widespread layoffs, companies cannot afford to lose the talent war. In a knowledge-based, talent-centric global economy driven by ideas, the company with the best talent wins. Period. Jettisoning employees in financial tough times can very well result in losing industrious producers, top talent, longtime workers, and top managers. Such shortsightedness can be costly on many fronts. The cost of recruiting talented workers typically runs 70-200% of their annual salaries. A loss of sales staff can hurt a company's bottom line. Lose productive people and the customer might be penalized. And the resulting morale decline can take a toll on employee engagement-being fully connected with producing great results for an organization. A company doesn't make profits. People do. So here's the operative question: are job eliminations, workforce realignments strategically driven, designed to foster long-term growth? Do these practices allow organizations to reposition themselves competitively and take advantage of new opportunities? If so, than this is the message that must be spoken, written, lived from the top down. And retention-re-engagement-efforts become imperative. It's too late to undo the layoffs that have already happened. Let's focus on how to rebuild the broken communities that are left behind.