Forward-thinking organizations are opportunistically acquiring top talent (Deloitte Debates)

http://www.hreonline.com/pdfs/01012009Extra_DeloitteDebate.pdf >

Cash or People - Are people really your most important asset? >

Forward-thinking organizations are opportunistically acquiring top talent.

Deloitte Debates, 01/01/2009 >

CEOs often say that “people are their company’s most important asset,” and that it is the strength of their workforce that will carry the company through tough times. On the other hand, executives are taught that “cash is king” — especially in a business downturn. So what should business leaders do in the face of the current economic crisis? Should they focus on maintaining cash or people? What should they make their top priority?

Abstract: >

In Particulr Regards To the Insurance Industry:

Before the current economic meltdown, insurance companies already had been battling to close growing significant talent gaps in parts of their workforce.

Over the past few years, older workers have been retiring in droves, and there weren’t enough young workers to replace them. At the same time, increasing competition and growth in the retirement market put insurers under intense pressure to innovate, enhance their service offerings, improve the customer experience, and ramp up their sales engine. All of these forces have increased the demands for new skills and greater capacity in an increasingly competitive talent market.

The question is: How do insurers manage short-term business challenges at the same time as setting a framework for the future? What is the impact on the current business climate on how companies should move forward? How can they take advantage of the market to position themselves for the future?

Re-brand your talent image. Gen Y views the insurance industry as unattractive and boring, with limited growth potential. Yet amid the current economic uncertainty, the stability and security of the insurance industry may be viewed in a new light. Gen Y places a strong priority on social responsibility and corporate mission. The insurance industry long has been a standout in this regard but has done little to tell the story. This is an excellent opportunity for insurers to re-shape their image at a time when it will resonate strongly in the talent marketplace.

Best Practices With Regard To A Variety Of Industries:

Take advantage of competitors’ mistakes. Companies making wholesale workforce reductions may inadvertently lose some of their most talented people. This is particularly true in industries facing bankruptcies or massive layoffs. Although it might seem odd to be looking for new talent while cutting staff, this could be a perfect time to recruit people who might otherwise be out of reach. >

Companies are [still] expected to “thread the needle” on talent. When it comes to cost cutting, preserving talent, and improving talent management capabilities, CEOs expect HR and talent leaders to do it all. That’s one of the lessons of the past several years. Talent is a crown jewel for most companies. That means boards and CEOs expect cost cutting to be done in a manner that deliberately reviews and ranks talent so high performers and critical talent across the enterprise are clearly identified and treated well. We expect there will be little tolerance for throwing the baby out with the bath water when it comes to headcount reductions. >

[Employment] Branding remains key. Many companies have been painstakingly building their brands as employers in key talent markets: on campus, and across their own industries. Despite the downturn, CEOs expect to maintain or improve this brand by protecting their positions with key campuses and recruitment pools. Although the recruiting targets might be lower, only shortsighted companies will pull out of campus and key recruitment markets.

Forward-thinking organizations are opportunistically acquiring top talent. The downturn presents a rare opportunity to recruit hard-to-find leaders and critical talent. Although the numbers will be small, CEOs expect surefootedness in going after highly select talent. They also expect talent leaders to use this time to reinforce the company’s commitment to key markets, products and services, and customers. Competitor missteps can lead to significant opportunities.
Top businesses are positioning for the rebound. Great companies make the most of a downturn—planning new services and products and building capabilities for the next business cycle. Of course, these efforts must be highly targeted. A clear, long-term commitment to critical and emerging sectors inspires confidence both for customers and employees.


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This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.