Mpower: An action-learning approach to leadership development in SMB companiesBrowne & Mohan
Leadership development, unlike management development, is preparing the next line to embrace complex tasks and decision making and build process that enshrine the team to work and deliver higher productivity. In this article, Browne & Mohan consultants share Mpower progragm, an action learning leadership development program that can be effectively deployed in learning by doing and resource considerate SMB environments.
Browne & Mohan consultants conducted a survey on what factors constitutes the best workplace or a place where employees would love to work. Findings show three aspects which influence an organisation to move towards being a 'lovable workplace'.
Align HR with Evolution of Company: An SME PerspectiveBrowne & Mohan
In this paper Ms. Indupriya S brings her insights on how to align your Human resources as your company grows and transforms from a SME to a larger company.
The main recommendation is an accessible (and inexpensive) overview of the topic from the Harvard Business Essentials line of brief paperbacks; the alternative, a multidimensional case on mentoring.
Nowadays, HRM has become an important function in the company and a strategic dimension which led many companies to include in their plans and policies. This importance has gone crescendo since the pressure of external environment is hardly strange to the outbreak of HRM and its conspicuous metamorphosis. Hence, more and more companies are implementing HR practices that can boost their organizational performance. Nevertheless, the link between HR practices and performance is not fully explained due to apparently little empirical research. The concern of the current pape r is to highlight this relationship through seeking to select HR practices that promote performance based on the adopted business strategy. The objective of this research is to explain how the application of HRM practices can increase organizational performance. To answer our research question, we chose the case study of a Tunisian company that has employed over 600 people specialized in metal construction and boilermaking. Methedologically, to understand the company's practices and its business strategy, we conducted two interviews that concerned the HR manager of the company and the head of operations. The interviews that we conducted revealed that the company recorded a substantial difficulty in aligning HRM practices with business strategy and organizational objectives and it invests very little in the development of skills although it offers a product respecting the highest quality standards. The last deficiency shows that there is lack of strategic planning and lack of shared organizational vision that cause constraints to the identification of objectives and management practices to be implemented.
India prison reforms 2020 & State Industry Jail Board Browne & Mohan
Reformation and rehabilitation of jail inmates is a principle laid down in the UN Standard Minimum Rules, 1955, and is the corner-stone of the correctional policy of the Government of India. Most Jails in India offer skill development, work, entrepreneurship and empowerment programmes to the inmates. Most of these initiatives are targeted at creating small manufacturing or agri-based programs with majority of produce for self consumption. In this paper we analyse current programs and suggest setting up of a state level industry Board. The paper desrcibes the structural arrangements and how scale and sustainability can be achieved.
Employee Profile & Perception of Talent Management in Indian Organizationsiosrjce
IOSR Journal of Humanities and Social Science is a double blind peer reviewed International Journal edited by International Organization of Scientific Research (IOSR).The Journal provides a common forum where all aspects of humanities and social sciences are presented. IOSR-JHSS publishes original papers, review papers, conceptual framework, analytical and simulation models, case studies, empirical research, technical notes etc.
Due to skill-shortages the world is in a war for talent. Companies and countries alike want to attract, develop and keep the most talented individuals. This is a trend OPRA first commented on back in 2007. While the situation has only gotten worse since then, the messages in this presentation are as poignant as ever.
The Impact of Key Performance Indicators (KPIs) on Talent Developmentpaperpublications3
Abstract: This Paper is one of the most important papers which focus on Key Performance Indicators in relation with talent development which start to be the main focus of all companies and countries and most researchers start working on the same subject to give more insights on it. This paper aim to explore the importance of Key Performance Indicators and its impact on Talent development and the advantages of using the performance management system especially in the large companies where there are difficulties in assessing employees’ performance. The importance of this research is the well develop and design comprehensive framework about the establishment, use and evolution of key performance indicators and how specialists can use the tools and implement process step by step with the highlighting of all challenges and limitations. The challenge is in the KPIs more than calculate the human capital ROI and Talent Development because it’s the hardest part where implementing such techniques can restructure all the organization from the bottom line. This level of extensiveness is the place the test exists much of the time, and where the profit of having a decent strategic plan is not completely figured it out. In short, it is a long between joined affix that needs to be concentrated on nearly part by part.
Mpower: An action-learning approach to leadership development in SMB companiesBrowne & Mohan
Leadership development, unlike management development, is preparing the next line to embrace complex tasks and decision making and build process that enshrine the team to work and deliver higher productivity. In this article, Browne & Mohan consultants share Mpower progragm, an action learning leadership development program that can be effectively deployed in learning by doing and resource considerate SMB environments.
Browne & Mohan consultants conducted a survey on what factors constitutes the best workplace or a place where employees would love to work. Findings show three aspects which influence an organisation to move towards being a 'lovable workplace'.
Align HR with Evolution of Company: An SME PerspectiveBrowne & Mohan
In this paper Ms. Indupriya S brings her insights on how to align your Human resources as your company grows and transforms from a SME to a larger company.
The main recommendation is an accessible (and inexpensive) overview of the topic from the Harvard Business Essentials line of brief paperbacks; the alternative, a multidimensional case on mentoring.
Nowadays, HRM has become an important function in the company and a strategic dimension which led many companies to include in their plans and policies. This importance has gone crescendo since the pressure of external environment is hardly strange to the outbreak of HRM and its conspicuous metamorphosis. Hence, more and more companies are implementing HR practices that can boost their organizational performance. Nevertheless, the link between HR practices and performance is not fully explained due to apparently little empirical research. The concern of the current pape r is to highlight this relationship through seeking to select HR practices that promote performance based on the adopted business strategy. The objective of this research is to explain how the application of HRM practices can increase organizational performance. To answer our research question, we chose the case study of a Tunisian company that has employed over 600 people specialized in metal construction and boilermaking. Methedologically, to understand the company's practices and its business strategy, we conducted two interviews that concerned the HR manager of the company and the head of operations. The interviews that we conducted revealed that the company recorded a substantial difficulty in aligning HRM practices with business strategy and organizational objectives and it invests very little in the development of skills although it offers a product respecting the highest quality standards. The last deficiency shows that there is lack of strategic planning and lack of shared organizational vision that cause constraints to the identification of objectives and management practices to be implemented.
India prison reforms 2020 & State Industry Jail Board Browne & Mohan
Reformation and rehabilitation of jail inmates is a principle laid down in the UN Standard Minimum Rules, 1955, and is the corner-stone of the correctional policy of the Government of India. Most Jails in India offer skill development, work, entrepreneurship and empowerment programmes to the inmates. Most of these initiatives are targeted at creating small manufacturing or agri-based programs with majority of produce for self consumption. In this paper we analyse current programs and suggest setting up of a state level industry Board. The paper desrcibes the structural arrangements and how scale and sustainability can be achieved.
Employee Profile & Perception of Talent Management in Indian Organizationsiosrjce
IOSR Journal of Humanities and Social Science is a double blind peer reviewed International Journal edited by International Organization of Scientific Research (IOSR).The Journal provides a common forum where all aspects of humanities and social sciences are presented. IOSR-JHSS publishes original papers, review papers, conceptual framework, analytical and simulation models, case studies, empirical research, technical notes etc.
Due to skill-shortages the world is in a war for talent. Companies and countries alike want to attract, develop and keep the most talented individuals. This is a trend OPRA first commented on back in 2007. While the situation has only gotten worse since then, the messages in this presentation are as poignant as ever.
The Impact of Key Performance Indicators (KPIs) on Talent Developmentpaperpublications3
Abstract: This Paper is one of the most important papers which focus on Key Performance Indicators in relation with talent development which start to be the main focus of all companies and countries and most researchers start working on the same subject to give more insights on it. This paper aim to explore the importance of Key Performance Indicators and its impact on Talent development and the advantages of using the performance management system especially in the large companies where there are difficulties in assessing employees’ performance. The importance of this research is the well develop and design comprehensive framework about the establishment, use and evolution of key performance indicators and how specialists can use the tools and implement process step by step with the highlighting of all challenges and limitations. The challenge is in the KPIs more than calculate the human capital ROI and Talent Development because it’s the hardest part where implementing such techniques can restructure all the organization from the bottom line. This level of extensiveness is the place the test exists much of the time, and where the profit of having a decent strategic plan is not completely figured it out. In short, it is a long between joined affix that needs to be concentrated on nearly part by part.
This presentation is very useful for Civil Engineers who are willing to shift to Oil and Gas domain and those engineers who recently entered into the domain
Deze presentatie is gebruikt voor bij mijn blog op StorytellingMatters
Storytelling en social media. Het zijn twee termen die we maar wat graag met elkaar willen verbinden. Juist omdat ze op het eerste oog zo goed op elkaar lijken aan te sluiten. Helaas is dat in de praktijk echter lang niet altijd het geval. Sterker nog, het is zelfs uitzonderlijk moeilijk om je verhaal via social media te uiten. Vooral omdat het vaak uitmondt in eenzijdig zenden.
We transform a company statement into a compelling story.
During this workshop you develop skills on the following:
1. Learn to think visual
2. Develop your creativity
3. Communicate more concise
References:
HvA, DNB, Gemeente Texel, Evides, HS Inholland
Feel free to contact me for any (new) business opportunity and/or mutual benefit: thierry@thinkifirm.eu
www.thinkfirm.eu
Gastcollege aan studenten CMD van Hogeschool Utrecht. Over wat, waarom en hoe van het kijken naar trends en eigen ervaringen bij het opzetten van M-engaged. Welke trends onderken ik in mijn werk.
Bij deze Bex*stage, in het Schiller theater in Utrecht, hebben Noëlle Aarts, Theo Hendriks en Ruud Kessels gekeken naar de rol van verhalen als versterker van vertrouwen en over de rol van storytelling bij het versterken van dit vertrouwen. Je leert hoe verhalen leiders helpen vertrouwen uit te stralen. Waarom werken verhalen? Wat is een goed verhaal? Hoe vertel je zo'n verhaal? Hoe creëer je online impact met verhalen?
Deze presentatie gaat over digital storytelling. Over hoe je in die virtuele wereld, zonder dat er sprake is van non-verbale communicatie en waar iedereen spreker en luisteraar tegenlijk is, tóch op een succesvolle manier de conversatie kunt voeren en vasthouden.
Lezing voor het Rijksbreed Kennisnetwerk Social Media & Webcare over de geschiedenis van visual history, bedoeld om deelnemers te inspireren in hun gebruik van visueel materiaal.
Power of Visual Storytelling: A Picture or Twitvid is Worth a Thousand WordsJacki Halas
In today’s fast-paced, over-networked world, your brand’s content is vying for eyes. Stand out by telling your story through visuals. With the advent of popular websites like Instagram, Pinterest, Tumblr and YouTube, the emphasis on visual storytelling is heavier and more important than ever. Learn how investing in and sharing compelling images and video can help your company quickly tell its story, drive traffic to your website and help you rank higher in search engine results.
How to Address HR Challenges Through 2015KamelionWorld
From the survey “Creating People Advantage” conducted by BCG and WFPMA in 83 different countries and markets, HR and other executives throughout the world identified the top future challenges. It appears that managing corporate and cultural change becomes a critical capability. Corporations that can meet these challenges will build and sustain competitive advantage.
We can help you build your intercultural challenges visit www.kamelionworld.com
Which Way Should You Downsize in a CrisisF A L L 2 0 0.docxalanfhall8953
Which Way Should You
Downsize in a Crisis?
F A L L 2 0 0 9 V O L . 5 1 N O . 1
R E P R I N T N U M B E R 5 1 1 1 8
Christopher D. Zatzick, Mitchell L. Marks and
Roderick D. Iverson
FALL 2009 MIT SLOAN MANAGEMENT REVIEW 79COURTESY OF SOUTHWEST AIRLINES
THE GLOBAL economic downturn has
forced many companies to make deep cuts
to their work forces. Numerous retailers
like Mervyn’s and Circuit City Stores Inc.
closed locations, filed for bankruptcy or
shut down altogether. Even companies like
Yahoo!, Google, American Express and
Motorola have had to cut their work forces.
The dramatic downturn in the economy
left many organizations in a quandary. Sev-
eral years ago, the major issue was winning
the so-called war for talent: how to attract
and retain the best and brightest. So compa-
nies implemented r igorous selection
mechanisms, internal promotion ladders,
extensive training and development, flexible
work scheduling and group incentive
schemes, all in hopes of developing a work
force that would confer a sustainable com-
petitive advantage. But then the recession
turned that thinking upside down. Many
organizations have been scrambling to fig-
ure out how best to restructure and cut costs
without jeopardizing the valuable human
capital that they had built.
To help such companies, we have devel-
oped a framework that integrates the
seemingly paradoxical practices of talent
management and downsizing. The frame-
work looks at two important variables: the
Managers have been inundated with advice on the dos and don’ts of laying off employees.
But the truth is that there is no ‘one size fits all’ approach to downsizing.
BY CHRISTOPHER D. ZATZICK, MITCHELL L. MARKS AND RODERICK D. IVERSON
Which Way Should You
Downsize in a Crisis?
P E O P L E & S T R A T E G Y
THE LEADING
QUESTION
When crisis
forces down-
sizing, is there
a best way to
do it?
FINDINGS
! Downsizing
initiatives must
align with talent
management
strategy.
! Is the downsizing
reactive or proac-
tive? Is your
organization
control oriented
or commitment
oriented?
! Sometimes core
and support work-
ers are managed
differently.
Since its launch 30 years ago, Southwest Airlines
has pursued a no-involuntary-layoffs policy
consistent with its talent culture. But it has
found ways to reduce staffing when necessary.
80 MIT SLOAN MANAGEMENT REVIEW FALL 2009 SLOANREVIEW.MIT.EDU
P E O P L E & S T R A T E G Y
type of downsizing (reactive versus proactive) and
the company’s approach to managing employees
(control oriented versus commitment oriented). By
first understanding an organization’s position with
respect to those two dimensions, managers can de-
vise an optimal strategy for downsizing.
Two Important Dimensions
Of course, downsizing is not a new phenomenon. In
fact, over the past two decades it has become a wide-
spread tool for cutting costs and achieving operating
effic.
55 Experts discuss simple methods to overcome skill shortagesmaziarforoudian1
In this episode of let's talk, 55 Australia's leading executives share ideas on how we can alleviate the pressures of the skills shortage.
Helpful tips were shared across the board, touching on areas of culture, secondments, a clear vision, outsourcing, upskilling and many more insights that can help when talent is scarce.
Financial Services Employer Branding Research - Blu IvyBluIvy
The latest employer brand research from thousands of survey respondents in the Financial Services sector. Conducted by the leading employer branding agency, Blu Ivy.
Prof Sattar Bawany, CEO of Centre for Executive Education - CEE Global and Strategic Advisor of International Professional Managers Association (IPMA) is one of the Speakers at the marcus evans 3rd Annual Global HR Excellence Conference on 13-15 October 2014 to be held in Singapore. H will be delivering a plenary session on Leading and Engaging Today’s Multigenerational Workforce.
For Transcript of his Interview on this Conference, please visit: http://goo.gl/2Ukb5e
12 Chapter 5 • Forecasting and Planning 127
Chapter 5 • Forecasting and Planning 127
The competition for good employees is particularly fierce for smaller companies, who, despite providing the majority of new jobs in the United States,8 have a more difficult time hiring in general. Forecasting and planning let firms better manage talent shortages and surpluses. By understanding business cycles, the business needs of their firms, the current talent in their firms, and the pipelines for finding future talent, HR professionals can proactively reduce the impact the greater competition for talent will have.
Workforce planning is a strategic process that allows an organization to predict and manage its talent supply and demand. The goal of this process is to enable the organization to attain its business goals and execute its strategy. Because business leader input is as important as HR input, workforce planning is an organizational initiative, not something solely done by HR.
Despite the clear advantages of forecasting and planning, many organizations respond to their staffing needs reactively rather than proactively. In other words, they do little planning and simply work to fill positions as they open up. Jim Robbins, the former president and CEO of Cox Communications, put it this way: "We spend four months per year on the budget process, but we hardly spend any time talking about our talent, our strengths and how to leverage them, our talent needs and how to build them. Everyone is held accountable for their budget. But no one is held accountable for the strength of their talent pool. Isn't it the talent we have in each unit that drives our results? Aren't we missing something?"
At Corning, a leader in specialty glass and ceramics, talent planning is the "bridge that translates business strategy into talent strategy."10 Corning knows that its talent portfolio influences its success. Over- or understaffed units affect the company's cost structure, cash flow, and ability to deliver its products. The wrong skill mix can mean missed market opportunities if the workforce is underskilled or, if the workforce is overskilled, cost structures that undermine profitability. To keep its skill mix optimized, every spring Corning models its future talent needs across multiple scenarios and then analyzes strategies to close any gaps.11
In this chapter, we discuss the importance of understanding the organization's business strategy, goals, and competitive environment to identify what talents the firm will need. Ensuring that the right people are in place at the right time requires forecasting the firm's labor demand and maintaining an awareness of the relevant pipelines for its labor supply. Action plans can then be developed to address any gaps between the two. After reading this chapter, you will have a good understanding of the workforce forecasting and planning process.
THE WORKFORCE PLANNING PROCESS
The workforce planning process, which is illustrated.
CHAPTER 2
BUILDING COMPETITIVE ADVANTAGE THROUGH
INTEGRATED TALENT MANAGEMENT
Marcia J. Avedon, Gillian Scholes
The business world is more dynamic today than ever before with an
accelerating pace of new technologies, increasing globalization of markets
and competition, changing regulatory requirements, and increasingly
commonplace mergers, acquisitions, and divestitures. In this tumultuous
environment, organizations must continually renew their organizational
capability to achieve competitive advantage. However, it is increasingly
challenging to find the talent needed to compete in this dynamic business
environment.
The availability of educated, working-age talent is shrinking in many of
the world’s labor markets (Zolli, 2007). Multinational companies are
moving work to developing lower-cost countries, only to find the talent
wars and wages subsequently escalating in those countries (Qihan &
Denmat, 2006). Skilled leaders and other professionals, with the
capabilities to enter new markets, create new business models, and
innovate new technologies, are highly sought after (Michaels, Handfield-
Jones, & Axelrod, 2001). Consequently, the demand for talent is
outstripping the supply. As a result, top performers in key talent pools
typically have multiple employment opportunities at any point in time. In
addition, senior leaders, including CEOs, are in their jobs for shorter
periods of time (Lucier, Kocourek, & Habbel, 2006), and employees
generally no longer expect lifetime employment with one company.
Leadership and employee development, through experience and
education, still takes considerable time and effort and will never be a
quick fix. This set of complex, changing business and talent realities
creates the imperative for companies to focus on talent in a strategic,
systemic, and customized manner.
The ability for a firm to create an integrated system that yields a continual
flow of talent ready to address specific strategic and operational
opportunities may be the single-most enduring competitive advantage.
While organizations often find that their strategies, products, services, or
markets require change, the need to have relevant, differentiated talent to
achieve these business goals remains constant. However, the specific
talent strategies need to adapt accordingly. Several recent surveys of both
chief executive officers and chief human resource officers confirm that
attracting, developing, and retaining talent is a top concern (Donlon,
2007; HR Policy Association, 2007). One CEO identified the point well
(Donlon, 2007): “We are the most highly regulated industry in the world,
and we have the most compliance issues in the world. So, those are risks,
but our single biggest issue is human capital. We are losing it really fast
and that is really scary.”
This chapter provides definitions, models, and examples for creating a
dynamic, customized, and integrated talent management system. We do
not .
Page 2809.1Strategic Human Resource ManagementMAJOR QUESTION.docxhoney690131
Page 280
9.1
Strategic Human Resource Management
MAJOR QUESTIONHow do effective managers view the role of people in their organization’s success?
THE BIG PICTURE
Human resource management consists of the activities managers perform to plan for, attract, develop, and retain an effective workforce. Planning the human resources needed consists of understanding current employee needs and predicting future employee needs.
How do you get hired by one of the companies on Fortune magazine’s annual “100 Best Companies to Work For” list—companies such as Google, SAS Institute, Boston Consulting Group, Edward Jones, and Genentech, which are on the 2016 list?12
You try to get to know someone in the company, suggests one guide.13 You play up volunteer work on your resume. You get ready to interview and interview and interview. And you do extensive research on the company—far more than just online research, as by talking to customers.
And what kinds of things does an employee of a Fortune “Best” company get? At Google (now part of Alphabet), the Mountain View, California, search engine company (ranked No. 1 Best Company seven times in the last 10 years), you’re entitled to eat in 1 of 11 free gourmet cafeterias, take your dog to work, get haircuts on-site, work out at the gym, study Mandarin or other languages, have your laundry done free, and get virtual doctor visits. You may also be a candidate for millions of dollars in compensation incentives, special bonuses, and founders’ awards.14
The reason for this exceptional treatment? “Happy people are more productive,” says Eric Schmidt, former Google CEO, now executive chairman of Alphabet.15 That productivity has made the company an earnings powerhouse; for 2015, for example, it reported a 14% growth in revenue and 38% growth in profits for its core Internet businesses.16 Google has discovered, in other words, that its biggest competitive advantage lies in its human resources—its people.
Human Resource Management: Managing an Organization’s Most Important Resource
Human resource (HR) managementconsists of the activities managers perform to plan for, attract, develop, and retain an effective workforce. Whether it’s McKenzie looking for entry-level business consultants, the U.S. Navy trying to fill its ranks, or churches trying to recruit priests and ministers, all organizations must deal with staffing.
The fact that the old personnel department is now called the human resources department is not just a cosmetic change. It is intended to suggest the importance of staffing to a company’s success. Although talking about people as “resources” might seem to downgrade them to the same level as financial resources and material resources, in fact, people are an organization’s most important resource.
Indeed, companies ranked No.1 on Fortune magazine’s Best Companies list in the past—which, besides Google, include SAS, NetApp, Genentech, Wegmans Food Markets, J. M. Smucker, Edward Jones, and The Container Store—have.
1. organization
DECEMBER 2008
Upgrading talent
A downturn can give smart companies a chance to upgrade
their talent.
Matthew Guthridge, John R. McPherson, and William J. Wolf
2. Downturns place companies’ talent strategies at risk. As deteriorating
performance forces increasingly aggressive head count reductions, it’s easy to
lose valuable contributors inadvertently, damage morale or the company’s
external reputation among potential employees, or drop the ball on important
training and staff-development programs. But there is a better way. By
emphasizing talent in cost-cutting efforts, employers can intelligently
strengthen the value proposition they offer current and potential employees and
position themselves strongly for growth when economic conditions improve.
Companies can maintain their attractiveness to internal and external talent by
using cost-cutting efforts as an opportunity to redesign jobs so that they
become more engaging for the people undertaking them. A job’s level of
responsibility, degree of autonomy, and span of control all contribute to
employee satisfaction. Head count reductions provide a powerful incentive to
use existing resources better by breaking down silos and increasing the span of
control for challenging managerial roles—thus improving the odds of engaging
key talent in the redesigned jobs.
Consider Cisco Systems’ approach to downsizing during the last recession. In
2001, as deteriorating financial performance forced the elimination of 8,500
jobs, Cisco redesigned roles and responsibilities to improve cross-functional
alignment and reduce duplication.1 The more collaborative environment
fostered by such moves increased workplace satisfaction and productivity for
many employees. Initiatives like Cisco’s succeed when companies focus on
redesigning jobs and retaining talent at the outset of downsizing efforts.
In addition to redesigning roles, companies cutting jobs should carefully
protect training and development programs. These are not only essential to
maintaining workplace morale and increasing long-term productivity, but they
also give people the skills necessary to carry out redesigned jobs that have
greater spans of control. During the last recession, International Paper
continued offering classes at its leadership institute by replacing external
facilitators with the company’s senior leaders.2 This approach not only reduced
the cost of delivery but also, thanks to the involvement of senior leaders,
redirected the content of the leadership program by tying it more closely to
decisions and skills affecting the company’s current performance. Similarly,
IBM retained its employee-development programs during its major
performance challenges in the mid- to late 1980s. It took the arrival of Lou
Gerstner as CEO and a new strategy to turn the company around, but the
historical investments IBM had made in developing its people helped achieve a
successful turnaround.
1
3. Before undertaking widespread layoffs, companies should use their
performance-management processes to help identify strong employees.
Companies that conduct disciplined, meritocratic assessments of performance
and potential are well placed to make good personnel decisions. These
companies should also bring additional strategic considerations to the
decisions. They should assess which types of talent drive business value today
and which will drive it three years from now, as well as which talent segments
are currently available and which will be in the future—keeping in mind, for
example, that new MBAs will be equally available in two years. They should also
look at which types of talent would take years to replace or develop—for
instance, skilled electric utility engineers in an environment where retirements
are dramatically reducing supply. Performance management well informed by
key strategic questions can minimize the negative cultural impact of
downsizing, improve the bottom line, and help identify talented people the
company should try to retain.
Companies that are reducing staff must focus relentlessly on the internal
cultural and external reputational implications of cost-cutting efforts.
Although strong employer brands are resilient, it’s difficult to reestablish brand
strength once the culture has been damaged. The way many companies conduct
large-scale downsizing decreases efficiency, morale, and motivation on the part
of remaining employees. It also increases voluntary turnover among high
performers and compromises a company’s ability to attract strong talent in
the future, as potential employees wonder how risky it is to take a job there.
Counteracting these tendencies requires creativity. In 2001, Cisco gave
generous severance packages and assistance with job searches to the workers it
laid off and launched a program that paid one-third of salary, plus benefits and
stock options, to ex-employees who agreed to work for a local charity or
community organization. Steps like these protected Cisco’s employer brand by
attempting to make departing employees feel better about Cisco and
underscored the company’s commitment to its people for those who remained.
The results were measurable: employee satisfaction remained high, and Cisco
retained a prominent spot on Fortune magazine’s “Best Companies to Work
For” list.
A strong employer brand is also important for companies undertaking selective
recruitment even as they cut personnel costs elsewhere. Using slowdowns to
uncover and hire displaced talent is often fruitful. Studies have shown that
although overall levels of recruitment may level off or even fall, the quality of
workers hired rises in recessions.3 And opportunities to find and hire displaced
talent may be particularly valuable during this downturn, as massive
downsizing in the financial-services sector makes available to nonfinancial
2