THE inevitability of an economic recession is all too apparent in our minds, given the daily onslaught of bad news from around the world. Although it is easy to become demoralised, there are people among us who are already thinking about the opportunities that are there for the taking.
These individuals have accepted the coming downturn and see current market conditions as an opportunity to make long-term strategic investments in preparation for the inevitable upturn that the future will bring.
Extending this logic to the corporate world means organisations have a unique opportunity to make investments in leadership talent. Instinct would tell us this is absurd in the midst of cost cutting, potential job losses and future economic uncertainty. However, it is exactly in such times that high-quality talent is most available and far-sighted leaders seize the opportunity to recruit for the future.
Uncertain economic conditions have put talent under pressure and created a buyer's market for executives, making more accomplished individuals available today than a year ago. It is very important to note that 'available' does not mean unemployed. It means that people's willingness and propensity to change jobs has increased.
Reasons for change can vary. For example, some people may find they are not challenged enough while companies are in cost-cutting mode. Others may be nervous in the face of forced mergers and acquisitions. And some just use the economic conditions to bring change into their own lives. Whatever the reasons, the fact remains that people who would not have considered making a change a few months ago are now starting to entertain the idea.
The flip side of this means that existing talent in one's own organisation is equally at risk of being poached. Many organisations mistakenly take their talent for granted during lean times by assuming that senior executives and employees have nowhere to go. This assumption is a mistake and it can create vulnerability in an organisation.
Through our work, we help entrepreneurs and corporate leaders optimise times like these by making strategic investments in top talent. While the return on investment is not immediate, ultimately these organisations find that they are better equipped during the downturn and far better prepared for the upturn.
It is critical that corporations adopt a pro-active approach to taking care of top talent and finding ways to keep them engaged in the business.
Simply understanding these dynamics is not enough for business leaders. They are often scared by the prospect of having to convince their boards, investors, analysts and existing employees of the timing of strategic hires.
However, it is exactly in these circumstances that leaders are called into decisive action, not only to 'hunker down' but rather to convince the various stakeholders of the importance of making strategic hires. If this is managed well, the current economic climate can be transformed into a great opportunity to prepare for good times ahead.
Rohit Ambekar is the managing director of J Robert Scott Singapore.
This article was first published in The Business Times on November 28, 2008.
