With 2010 approaching and signs that the economy is starting to recover, Richard Doherty from Jobpartners looks to what the future has in store for talent management.
Against the backdrop of recession, 2009 was undoubtedly one of the most difficult years in recent times for HR and talent management. With preditions of an upturn and a likelihood of many thinking about pastures new after a long period of insecurity, the war for talent looks to re-emerge with a vengence. So what are the trends likely to be, and how can you go into the battle fully armed and prepared to win the best people for your organisation?
Social recruiting becomes mainstream
Social media will play an increasingly important role in attracting and engaging with top talent. In 2009, it was the early adopters who were using social networking sites, such as Facebook, LinkedIn and Twitter as recruitment tools. Very few companies had actual strategies and were taking a ‘suck it and see approach’ towards social recruiting.
In 2010, there will be significant investment from brands into social recruiting. Corporate recruiters will be following what many recruitment agencies are already doing and using social networks to provide company information and set up interest groups to source candidates. This means that organisations will be more proactive in attracting both active and passive candidates and sourcing referrals in the future.
Key to the success of social recruiting will be to ensure that it is aligned and integrated with an organisation’s existing recruitment processes and technology. For example, existing applicant tracking systems can be extended to search through social networks.
Generation Y is here and now
2010 will be the year that businesses start to take Generation Y seriously. With employers facing the reality of older talent moving on or retiring over the next five years, companies will need to ensure that they are properly equipped to engage with Generation Y so that they aren’t left with a talent shortfall in years to come.
Generation Y is adaptable and quick to learn new skills, so companies should look to harness such talent and enthusiasm to benefit their business. In order to attract and engage Generation Y, employers need to ensure that their application processes reflect the fast-changing online environment. Generation Y expects to be able to apply for jobs – in the first instance online – and then receive prompt feedback from employers about their application meaning renewed pressure on delivering the best possible candidate experience. This should not be deemed as ‘bending to the needs’ of Generation Y, but instead as modernising and automating the application process in line with social and technological advancement.
Increased career development budgets
Most HR managers would agree that in a downturn one of the most difficult and important tasks is to keep up staff motivation levels. This is easier said than done when many staff have been asked to take pay cuts or work four day weeks in order to keep their job but achieve the cost savings the business requires in such a challenging climate. As we come out of the downturn and the job market becomes more buoyant, employees may feel the need to look elsewhere for the career progression and development they require if they cannot see potential at their current employer.
With this in mind, 2010 will be the year when companies will look to spend more time and budget on employee development as they look to counter employees’ disengagement, and avoid a damaging exodus of talent.
Talent management becomes a board-level issue
In 2010, as the economy recovers, HR and talent management will become an increasingly strategic issue for many businesses, as their future success will be based on the success of their people. Companies tried to listen to their customers during the economic downturn in order to retain them, and the same principle should now apply to employees.
Successful businesses are all about good products/services and motivated/aligned employees. You can’t have one without the other, so HR and talent management needs to step up and be counted, engage the executive board, sell the vision of an engaged workforce and the bottom line benefits they will bring the business.
HR software becomes more personal and self sufficient
Software as a Service (SaaS) will continue to grow in popularity in 2010 as it reaches the level of maturity where large organisations are comfortable using it and can see the benefits. Traditional ERP talent management modules can be expensive and time consuming to deploy, whereas SaaS is much more economically viable, as its service-based pricing means that your entry costs and implementation times are much lower.
Additionally, software solutions will begin to adapt to allow companies to become increasingly self sufficient when it comes to managing HR software. Managers will soon be able to customise and configure their own existing solutions to meet both their technological and employer brand requirements.
Reward schemes become truly ‘transparent’
2010 will be the year companies start to no longer simply pay ‘lip service’ to greater transparency in their reward schemes. The recent economic climate has highlighted the overwhelming need for reward strategies to correlate to business performance and demonstrate value.
With this in mind we will see more organisations looking to align performance management and rewards. By aligning the two and showing greater transparency, organisations can develop effective and justifiable remuneration policies that are consistent with compliance and risk management.
Richard Doherty is Group Vice President of Solutions at Jobpartners.
