Did you know that the Australian Stock market has just experienced its biggest 3 week gain in 21 years? #2

While I'm not suggesting this increase or the quote above made in the White house last Friday means the end of the Global Financial Crisis, they are reminders that life does go on and that we will eventually come out of the recession. While many companies are adopting a ‘wait and see' or ‘just survive' approach to today's environment, others are being proactive and using history to prepare their business for the future.

"McKinsey & Co.'s research shows of the companies that actually came out stronger from the 1990's recession, 83% increased their investment in people, while of those that came out weaker only 21% invested in their people" #3.  Employers should be planning now for an economic recovery.  Those who focus only on fixing today's problems and ignore tomorrow's, are at risk of not having the viable, productive workforce they will need for the future.

What does this mean for your company?

Companies with foresight will be investing now and planning where they want to be after the financial crisis is over.  They will be attempting to define what business and people strategies they will need to have in place to move in that direction. They will then be taking the necessary steps to ensure that they have developed and refined the tactical capabilities required to make those strategies come to life.

For example, companies who see training their employees as just a ‘cost' will be reducing training budgets.  However, companies that recognise the importance of an engaged workforce will value training and the personal development of key employees as an investment that will give them a future competitive advantage.  They might review the impact and delivery of their training to ensure the right skills are developed and retention strategies are working, but their expenditure in these areas will be maintained or even increased.

Smart companies will have learnt from past recessions that now is the time to focus on getting key business and talent management processes developed and operating effectively. This includes having:

• A clear process for providing Performance Feedback and Management
• Effective Learning & Development strategies and processes
• Defined Career Development strategy and process for staff at all levels
• A comprehensive Succession Planning strategy and processes for key roles in the firm
• An active recruitment plan to upgrade your talent in areas where current staff are not delivering

Where does your company currently sit in these areas? As we come out of the recession will your business be one that has made the necessary investment in people needed to emerge stronger?

If not, Trak Recruiting can assist you by providing highly qualified, experienced senior consultants and coaches  - on either a short term or permanent basis - who understand the retail industry and can work with you to identify, develop and implement the strategies and processes your business needs. For a confidential, no obligation discussion on the quality and quantity of your current people investment needs and whether they are delivering the results you deserve, contact Garry Connell on 02 9232 1710.

#1 . The Australian, March 30 2009, page 24. Kelly Evans quotes The Wall Street Journal.

#2. as at March 27, 2009.

#3. The Australian, March 27 2009, page 26. Adam Lewis - Director McKinsey & Co.