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10/16/09
Post-Recession Productivity Perils
The US Federal Reserve announcement and many leading economists recently have provided hints of consensus that the worldwide recession is over. However, there are disturbing talent trends emerging that deserve detailed observation and action.
Two admonitions that fall squarely within the realm of talent management strategy and practices are included in The Corporate Executive Board’s Executive Guidance for 2010 “Confronting Six Enemies of Post-Recession Performance”:
• Productivity Losses Due to Top Talent Disengagement and Flight
• Productivity Losses Due to Misplaced Leaders
In an outstanding teleconference—available in replay—these and four other perils for future organizational performance are described. Among the research findings:
The average organization faces an imminent 7% productivity loss from the combination of departing top talent and undermanaged recruiting pipelines.
Surprisingly, 25% of high-potential employees are looking for a new employer, up dramatically over pre-recession levels.

• Only 21% of employees are fully productive; the rest are not fully mobilized against the right goals.
The analysis supports the caveat: Recoveries are not restorations. Pre-recession plans and assumptions may no longer be relevant in the “new normal”; failure to distinguish between cyclical and structural shifts may permanently derail growth.
At Taleo we concur and explain further in New Solutions for a New Economy.
Taleo Blog - Talent Management Solutions
Taleo's Talent Management Solutions Blog is about developments in Talent Management - from its definition and practices - to the latest research in the field.
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| Alice Snell Vice President, Taleo Research Send a comment to the author at research@taleo.com |
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