Talent: the upside of the downturn

More on the issue of companies retaining their talent through a downturn ? an issue we last looked at a mere two days ago.

We don't know where they found the time, but some folks at Deloitte have apparently been having themselves a bit of a debate over the issue of whether people really are a company's most important asset or whether cash is, in fact, king.

Being Deloitte, the debate wasn't something that was ever going to be contained to mere chat around the water cooler; the firm has produced this handy summary of both sides of the argument, complete with points, counterpoints and opinions from no less than four of its human capital specialists.

In the end, the debate seems to make a pretty strong case for being highly selective in the layoff process. The point/counterpoint section, for example, draws the distinction between being able to find talent and bodies when unemployment is high, and points out that "real talent is always in short supply." And in warning against going too far in making cuts to deal with the downturn, the following point arises: "If you lose your key talent now there may not be an upside later. You may not have the products you need, or be able to retain the customers you want when the market comes back." Not only does that approach seem eminently sensible, it's also hearteningly optimistic to hear that someone out there has faith in the market!

Still, a consultancy wouldn't be a consultancy if it didn't take immediate reality into account, and the reality facing many companies just now is that layoffs are going to be necessary. So, while people may be crucial to a firm's success, "that doesn't mean you need to treat every single person like a precious asset." Instead, Deloitte recommends that companies "identify your most talented people and take care of them."

One final, interesting point raised in the debate is over what happened to the talent crisis that was looming not so long ago. You know the one: Baby boomers retiring en masse and leaving a huge skills and knowledge gap in their wake. Well, it seems like that's no longer a problem, and employers have the stock market and plummeting 401(k) values to thank. Or, as Deloitte puts it, "This might sound harsh, but the recent market crash may actually ease the talent crunch by forcing workers to put off retirement for a few years." Now that's the kind of looking on the bright side even Monty Python would be proud of!

--Posted by Phil Stott