Change is Really in the Air!

We all know that there is significant political change in the air, but there also appears to be some notable changes in how companies in the U.S. are approaching human capital management during the recent economic downturn.

Towers Perrin recently released the results of their “Compensation in Crisis” pulse survey, which features responses from more than 450 U.S. organizations. The survey was conducted in October 2008 and the companies surveyed are from a wide range of industries and sizes.

Towers Perrin’s Ravin Jesuthasan explains that the surveyed firms’ “commitment to the retention of key talent is a significant shift from past national recessionary periods, when a slash-and-burn mentality reigned. Companies are entering this period with leaner workforces and the knowledge that across-the-board mass layoffs can create significant long-term problems.” 66% of respondents believe a significant organizational headcount reduction is somewhat or very unlikely, while 46% think a more targeted head-count reduction is probable.

Most importantly, 54% polled stated that they are somewhat to very concerned about turnover of their high-performing and business-critical employees as a result of the way their company handles the economic crisis. As a result, many firms are taking a more proactive approach (including cash retention awards and targeted salary increases to help retain and motivate top performers).

To read more about this very interesting and suprising survey (from WSJ.com’s Market Watch), click here.

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