Doing more than simply surviving in a crisis

In drastic times like these, there definitely arises a strong, urgent need for rethinking one’s talent acquisition strategies, especially for impacted businesses. Somewhere in the middle of 2022, at least 47% of CFOs reported that it was challenging to identify and hire talent. In 2023, this talent crisis has only deepened due to the growing economic challenges. In my previous blog, we looked at the serious impact of rising inflation and geopolitical tensions on global businesses, especially tech companies (both emerging and established). Of course, a recession impacts everyone albeit in different ways. However, an HBR study conducted after the 2007-2008 crisis pointed out that companies that cut costs faster and deeper than their competitors do not necessarily flourish once things improve. In fact, they have a 21% (one of the lowest) probability of getting ahead of the competition when things get better. So, who has a better chance of succeeding after an economic crisis? The answer is businesses with thoughtful strategies. Companies that have carefully built strategies that strike a balance between cutting costs to survive through this financial rough patch and investing boldly to thrive in the future will always be in a stronger position post-recession.

There is no one formula for the ‘right’ talent strategy that leaders can simply pick and apply to their organizations. However, one thing seems to be universal. The foundation of any such strategy must be rooted in agility. It is not the survival of the fittest or the sharpest but of the most resilient and agile. How quickly and effectively one adapts to the changing environment determines the success of a business. Leaders must be familiar that in a crisis, the impact of every decision and action is amplified. Factors like poor leadership response to the reduced workforce, absence of empathy when dealing with employees, hiring managers not re-evaluating job requirements and employee skills, and employees feeling disconnected from the new strategy, all play a tremendous role in deciding the future of a business. So how can business and HR leaders ensure that their talent aka the employees become beacons of growth for the organization?

Becoming skills-based

As a company’s budget strings tighten and HR teams are urged to take various cost-cutting measures, including hiring freezes, leaders need to think of ways to strategically utilize skills across the organization. Prioritizing critical skills becomes essential during such a phase. While existing employees with relevant knowledge can use their experience and expertise to further a project or reach a business goal, organizations can also benefit from tapping into the talent marketplace and leveraging gig workers with key capabilities. At the same time, upskilling of employees must also be adopted into employee engagement practices to ensure better readiness for the future of work.

Prioritize people

Organizational culture, performance, and success all hinge on the health of a company’s workforce. It is important during these times that there exists a collective sense of purpose—one that drives employees to bring their best, be ready to innovate, and move forward even when times are hard. Remember, retention still matters. While a collective purpose forms the backbone, reward & recognition initiatives are at the heart of employee retention. With employee benefits being cut down, one will also have to get creative with rewarding and recognizing top talent. Having said that, it is essential to remember that in the midst of a crisis, people who are rising to the challenge and helping their company optimize resources must be shown the appreciation they deserve.

Keep investing in tech

One important takeaway from the pandemic is that technology is a critical enabler of agility and resilience. In the future of work, emerging technologies will be vital for the survival of a business. Embracing tech-led practices and processes will help businesses act with better insights, be more efficient when managing costs, and develop new approaches & strategies to meet evolving environments, customer demand, and employee needs.

The bottom line

To successfully navigate through this period of turbulence, businesses and leaders must ensure that agility is at the core of their talent strategy and meets their long-term business goals. Focusing on cost-cutting alone can be dangerous in the long run. While difficult decisions need to be executed, leaders must spend time identifying mindful ways of doing so. At the same time, strategies must be in place to strengthen employer branding. Regardless of the present scenario, business leaders must always keep their eyes on the future.