The war for talent is in a temporary cease-fire

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The economic recession has masked the shortage of workers for two reasons—layoffs have created a ready supply of good workers, and would be job changers are holding on to the jobs they have. But make no mistake. This will not last.

The Bureau of Labor Statistics reports that the picture for employers will get worse during the next fifteen years, when the annual growth rate of the labor force is expected to be a skimpy 1 percent. In roughly five years, the number of 65 year-olds will surpass the number of 18 year-olds.

Are you thinking what I’m thinking? Where on earth will we get qualified employees to fill new jobs and how will we be able to keep good employees from jumping ship to get a fat signing bonus somewhere else? We experienced some of this during the dot com era but many organizations have lapsed back into complacency now that good employees are available again.

The smart companies are quietly retrenching and preparing for the next round of battle. If your organization is simply holding it’s breath rather than mobilizing its forces, here are some strategies to implement:

• Don’t just layoff employees, develop a rehire strategy.

The April issue of HR Magazine reports that research by Watson Wyatt Worldwide, an HR consulting firm in Washington D.C., shows that during recovery from past recessions, 57 percent of 831 American companies rehired at least some of their former employees who had been laid off.

Hire-back deals are springing up among companies who don’t want to hire raw recruits and lose their training investment in past employees. HR Magazine reports, "Charles Schwab Corp., which had two rounds of layoffs during 2001, offered $7500 rehire bonus to any former employee hired back within 18 months of termination."

Another creative approach was taken by Cisco Systems, Inc. "The Cisco Community Fellowship Program placed [80] former employees in yearlong positions with 20 non-profits across the nation to help organizations develop Internet technology." The employees were given a reduced salary but continued benefits. If they aren’t rehired, they have 60 days to find employment before they are cut from the Cisco payroll. Talk about a win/win!

• Audit your recruiting and hiring process.

Use the lull to shorten and streamline your hiring process. Interview new applicants who have joined your organization during the last three years and ask them for input. Measure the time it takes from job posting to job offer and work to shorten it. Invest in online systems that can cut steps out of the paper-pushing process. Train your managers how to do legal, behavioral interviews. Make improvements to the new employee orientation and training programs, so they are lively and relevant. Build relationships with schools so that co-op programs and internship programs are humming when the economy bounces back.

• Conduct a talent inventory.

Who are your strongest performers and where are they working in your organization? What kind of bench strength does the company have, if one of those stars decides to leave? Are your most creative performers toiling in the trenches, under the watchful eyes of old guard middle managers? Use a 360-degree process or less formal method to figure out who your "A"-players are. Once you know who your talented employees are, make sure they are in key roles with enough authority to take action.

• Provide enough formal and informal leadership development.

75 percent of people who leave their jobs are really leaving their boss. A wise investment in the skills of your supervisory and management employees will be friendly weapons in your retention arsenal. The battle has just begun.

Based on an in-depth study of the most innovative ideas in recruiting and retaining employees, our recruiting & retention tools have all the secrets you will need to find and keep the best employees.

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