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Investing in human capital during volatile financial times may be perceived as a gratuitous luxury; especially as many local companies have been pushed to curtail expansion and spend in an effort to ride out the global economic crisis. While many businesses struggle to cope by implementing short-term business and human resource planning, it's those businesses who forge through and successfully adopt medium to long term planning strategies who will be competing as market leaders in years to come. Striking a balance between short term survival and long term competitive advantage - particularly in the fiercely battled talent acquisition and retention climate - is a difficult task; one that requires a link to be forged between high level business strategy and HR practices. This will ensure that your business has the ability to recover and expand more rapidly than competitors when the economic climate improves.

Talent Management as a Sustainable Strategy

Given the current turbulent economic climate - where companies are challenged to remain competitive whilst remaining sustainable - talent management presents numerous tangible benefits, including:

- Reduction in recruitment rates: Turnover among white collar employees can cost companies up to 150% of base salary; including training, lost productivity, lost business and sourcing costs
- Creating a competitive advantage: having the right talent available when economic conditions improve
- Overall employee satisfaction: Resulting in increased productivity, employee morale and retention
- Fostering a mentorship environment: Including skills and knowledge transfer
- Maintaining adequate capacity: the ability to maintain operations, even in tough economic climates
- Greater social impact: Through the intergenerational transfer of literacy, knowledge and skills from parent to child / employee to community

In light of this, corporate South Africa is fast becoming wise to the fact that it is far better to focus on the human capital they have by investing in upskilling and training initiatives to cover any current or anticipated skills shortages. In this way, companies will not be left high and dry in terms of productivity and service-delivery levels once the economy picks up, as has happened so many times in the past. This is the perfect time for human resources departments to have a long, hard look at their employees, in conjunction with their skills-gaps, and isolate which employees may be steered in the direction of filling these gaps in preparation for the future.

Where to begin?

A review of existing and potential talent is crucial, as unnecessary staff reductions could prove to be an expensive tactic, given the costs of recruitment and loss of productivity and expertise. Whilst many organisations and companies acknowledge that their staff is their biggest asset, many are ineffective in leveraging this talent and maximising their potential. The lack of a globally defined structure for the implementation of such a programme is an identified shortfall in the inclusion of such measures in business planning, as is the misunderstanding of what a talent management programme should involve.

Simply put, a talent management strategy would align the best people with the right jobs at the right time. When approached holistically, the successful integration of a talent management programme should align with your company's targets, individual areas of expertise and envisioned market expectations. There are no set standards, no ‘how to' guides and certainly no one-size-fits-all answers; the development and practice of a talent management strategy falls solely on the organisation, its HR department and the staff it wishes to develop and refine.

One of the common factors across many talent management strategies in any industry is the upskilling and training of key staff members who are identified as important elements in the future successes of the business. While a costly exercise, there are solid overlap benefits to upskilling: not only do companies efficiently narrow their skills-gaps; it has been shown that levels of employee-loyalty are noticeably increased by virtue of companies providing upskilling and assistance to deserving employees, leading to a decrease in workplace boredom and absenteeism and concurrent increase in workplace morale, productivity and profit.

Developing local talent

Obtaining assistance in conceptualising and implementing a successful talent management programme would be a wise and profitable move for any company in the long run. The Wits Business School's Leadership Development Centre recently ran a talent management programme specific to the current human resource and economic activity landscape in South Africa. According to Natalie Withuhn, Director of the programme, recent research revealed that:

• 54% of corporates cite an inability to develop people into great executives as a major obstacle in strengthening their talent pool;
• 57% of managers believe their company does not develop people quickly and effectively enough;
• managers who feel that their company develops them poorly are five times more likely to leave than people who feel their company develops them well; and
• 57% of managers who intend to leave their current employer in the next two years cite insufficient learning opportunities as a critical or very important reason for leaving.

In light of this, it is vital for companies to find ways to develop and manage their talent, both professionally and personally, in order to keep them happy and keep them with the company. A climate that fosters mentorship, coaching, feedback and development and alignment of strengths will ensure the company's values are reflected from the inside out and that people are doing the work optimal for their and the company's success and are able to continually develop into strong leaders able to withstand, meet and transmute any challenges.

Employers exploring education assistance for their employees in 2010 should act quickly now so that the process is streamlined and their students are registered from the beginning of the New Year. For more information call Eduloan's Client Services Department on 0860-55-55-44.

About the author: Johan Wasserfall is the CEO of Eduloan, South Africa's exclusive education fund enabler and a company committed to contributing meaningfully to the social and economic upliftment of South Africa through education.

Editorial Contact:
Jessica Wheeler
Kezi Communications (Pty) Ltd
Tel: 011 616 1860
jess@kezi.co.za
www.kezi.co.za

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