Compared to other developed economies, the Global Financial Crisis (GFC) has been kinder to Australia.
Nevertheless, it seems the GFC has profoundly affected HR practices and talent management in organisations across Australia. A new study by AHRI sheds new light on how companies are coping. Downsizing is popular, even though it’s a difficult decision for most companies. Not surprisingly maximising value from the current workforce is top priority with 69.67% of respondents using performance review and providing extra support to top performers. 45% are still hiring top talent.
Some other interesting findings:
- Only one in five (20.49%) had a CEO with a tenure of more than 10 years. The vast majority of CEOs had a job tenure between 2-5 years.
- Approximately six out of 10 respondents (61.48%) report their organisations have downsized or are planning to do so, with nearly nine out of 10 respondents (88%) believing downsizing was necessary.
- Nearly two thirds of respondents (64.48%) believe that organisations will more actively pursue Corporate Social Responsibility (CSR)
and ethics policies in the wake of the GFC.
Will the GFC change talent management practices and the HR function in the future? Respondents are divided in their opinion. It seems to me the current turmoil has a lot to do with age-old workforce problems (e.g. engagement, retention, training) ingrained within organisations. The GFC merely amplifies the problems.