Amidst generally gloomy economic news, the latest Business Confidence Survey of owners and managers of US small and medium-sized businesses is not so dire: more than 37 percent of owners and managers of small and medium-sized businesses expect a higher rate of growth for their operations in 2009, and 38 percent anticipate the same level of growth as 2008.

The business owners’ five biggest concerns:
1. The economy
2. Controlling costs
3. Rising health care costs
4. Retaining their most valued employees
5. Hiring the right people

Retention strategies include improving employee engagement through specially designed performance management practices. Quality of hire is driven by a fast and effective recruitment process. Business owners know that higher retention and hiring top talent link directly to business results.

Improving talent management practices and solutions is a timely and welcome approach for small and mid-sized businesses. Effective talent management practices supported by web-based robust technology solutions directly address some of the biggest concerns of small and medium-sized businesses—and help drive their performance.

Thanksgiving in the US is an opportunity to take time off, visit with family, and reflect on the positives in our lives while we enjoy our feasts. It’s also a fine time to remind ourselves that it’s good to talk turkey with your talent about how their efforts drive business performance, and to maintain a focus on policies that encourage retention of top talent.

In a downturn economy some low-cost perks can go a long way to boosting morale. A Challenger, Gray & Christmas, Inc. survey reveals that
• 57% of companies have been able to retain their existing perks.
• Only 20% of companies have had to cut or eliminate perks as part of their cost-containment measures. About 35% of these companies were compelled to cut perks in order to save jobs.
• In fact, 35% of the human resource executives surveyed who said that their companies were not cutting perks indicated that they utilized low-cost perks, which precluded the need for cutbacks.

Open communication was valued more than raises in terms of employee retention by nearly a factor of two, according to MAP’s Quarterly CEO Survey conducted by Vantage Research.

White Water Strategies actually quantified “The Power of Thank You” in the UK. Their “analysis shows that acknowledging staff achievements properly has the equivalent perceived value of a 1% pay rise. Looking at current employment figures, that translates to £5.2bn saving for UK business.”

And Companies embrace praise offers low cost but high value communication as a way to let your people know how important they are to your success. According to the cited survey of 10,000 people, lack of recognition was the employment deal breaker.

So prompting your managers to say a simple thank you for Thanksgiving Day—and every day—is a no-cost/high payback talent management strategy worth practicing.

Although most corporations think in terms of globalization, countries think more about how their national economies fit into the global scheme. Examining national competitiveness now and in the future provides important insights for many countries.

The US for instance continues to raise the alarm about student math and science ill-preparedness and that relationship to driving future technology innovations and American prosperity. The National Academy of Sciences, National Academy of Engineering, and Institute of Medicine published a lengthy examination in Rising Above The Gathering Storm: Energizing and Employing America for a Brighter Economic Future.

“The next generation of Americans must be better educated in math and science -- or they won’t be able to keep up in the new global economy,” said Tom Luce, CEO of the National Math and Science Initiative, which was created as a result of the “Gathering Storm” report.

The Canadian Chamber of Commerce outlines 14 suggestions in its report Prosperity without Borders: Statement on Canadian Competitiveness. Its key points include:
• People and their skills play an important role in a nation’s productivity performance and are essential to businesses’ ability to grow and succeed.
• Developing talent and supporting innovation within Canada is critical.

Finland is starting an Innovation University with the goal of being a leading institution in the world in terms of research and education in the field of technology, business studies and art and design. China and Singapore are embarking on similar initiatives.

It seems you can substitute or make generic nearly any of the country names in the quotes and stories above. What’s the common thread? Talent – talent drives performance.

The Heidrick & Struggles/Economist Intelligence Unit report Mapping Global Talent: Essays and Insights opens with “Talent is the new oil and just like oil, demand far outstrips supply.” An accompanying video on the Global Talent Index provides additional perspective.

Countries—like companies—need to acknowledge talent as their key to competitive advantage and path into the future. Top talent drives performance in companies worldwide and in countries globally. Therefore, successful talent management is a fit both nationally and internationally.

In past recessions, corporate layoffs were announced in press releases that were strategically positioned as cost reductions for Wall Street. As an HR professional and steward of your employment brand, you should be equally interested in how your company is perceived by current employees, potential candidates, and consumers on Main Street.

Today, organizations are not in sole control of the published information and responses to their actions. This economic downturn is different. The article Blogs put new spin on layoffs offers insights into how all your workforce practices are now out in the open, making them transparent and critical for both your employment and corporate brands. Some smart companies like Taleo customer Tesla choose to strategically pre-empt the coverage by delivering the news on corporate blogs to proactively control the message.

So, although it may not be profitable to lose your head when you tighten your belt, know that how your organization handles workforce reductions will be a public discussion.

Over the past week in the US, we’ve witnessed a major advantage of political democracies over other kinds of government: the peaceful transfer of power. This form of elective and collaborative succession planning is the law of the land, but how formalized is the process in your organization?

With the current economic crisis looming as a backdrop, leadership has come into question on many fronts. Scores of incumbent elected officials were stripped of responsibility on November 4, 2008. An unprecedented number of CEOs have lost their positions. In USA Today, 'Leadership vacuum' sucks up public's faith details some startling business statistics:
• 1,132 CEOs had departed their jobs as of Q3 2008 according to Challenger Gray & Christmas.
• Worldwide confidence in business leaders is the lowest in 10 years according to DDI.

Successful succession planning offers organizations a winning strategy to identify best fits using a complete view of available and qualified talent for a position—be it from your team, other departments, external channels, or personal networks. With barely a third of surveyed organizations prepared for succession planning, it’s time to take action to ensure peaceful—and effective—transfers of power inside your organization.