By Emilyn Yap

DEMAND for talent is recession-proof, and companies with a strong workforce will have a competitive advantage amid the market turmoil today, the Singapore Human Capital Summit heard yesterday.

Speaking at the conference was Michele Burns, chairman and chief executive of global consulting firm Mercer. According to her, companies should pay close attention to optimising their human resources in this period of economic distress.

'An effective, efficient and engaged workforce is the single most competitive advantage a company can have during these unprecedented times,' she said.

However, feedback from firms in Asia indicates a shortage of highly skilled employees, especially at the management and leadership levels, Ms Burns said. This could pose a threat to companies' growth.

Therefore, the demand for talent with the right combination of technical knowledge, management competency and leadership capability is 'recession-proof', she noted.

In attracting, retaining and engaging talent, however, Ms Burns highlighted that paying high salaries alone is not sustainable.

'Instead, companies are investing in a total value proposition,' she said. Such a package would include more career planning and leadership development opportunities for employees.

That, of course, does not mean that pay levels are no longer important. Sharing his thoughts in a separate session, OCBC Bank's chief executive David Conner pointed out that salaries have to be 'market-competitive'.

Still, leadership development is key, said Ms Burns. Companies will need such programmes to ensure clear lines of succession at the senior levels.

As Unilever's president for Asia, Africa, Central and Eastern Europe Harish Manwani said to laughter from the audience: 'All leaders need followers ... If you want to be a leader, make sure you spend time with your followers. Otherwise, you'll be just taking a walk.'

More than 700 delegates are attending the first Singapore Human Capital Summit to discuss trends, ideas and practices in effective people strategies for Asia.

This article was first published in The Business Times on October 23, 2008.