Even in Hard Times, Retention's Not Easy

12 January 2009:

A CFO charged with the grim task of slashing head count might be excused for grasping at a silver lining, such as: "At least our top performers will be here, because in this downturn they won't get other offers." Even if it happens to not be true.

The best talent will always be in demand, in bull or bear markets, talent management experts agree. In fact, the risk of losing vital human capital is high right now, because so many people, even stellar performers, are developing career contingency plans — and once one is in place, there may be a temptation to execute it sooner than later.

That risk is especially acute within finance and accounting departments. They generally have suffered disproportionately few layoffs compared to other areas of companies, because of a talent undersupply that prevailed for years before the current economic crisis set in. That means your cream is craved by others.

To keep your star accountants and money managers, or any valuable employees, communication is key during the tough times. In an October survey of 514 U.S. workers by global public relations firm Weber Shandwick, 71 percent said they felt their company's leadership should be communicating more about current economic problems, and 54 percent had not heard from company leaders at all on the crisis.