Timing is everything.
 
Success does not just come from some clairvoyant ability to pick the right time; it comes more often by being willing to go against conventional wisdom to take advantage of predictable swings in the business climate. In 2006 and 2007, when global business was booming, most companies added capacity, headcount, debt, pay raises and many other costly items—decisions for which they are paying a heavy price today. Conversely, now that times are bad, they are slashing away at cost and resisting any big moves…maybe necessary responses, but a little late.
 
The counter-intuitive tenet of success—preparing for the next cycle rather than trying to manage the one you are in—applies more than ever to the ability to compete for and win the best leadership talent. Based on my experience working with successful CEOs, I believe there are three critical concepts to embrace to win the war on talent before the recession recedes.
 
I.               Retain your high potential talent. Key executive talent doesn’t leave you for better pay. They leave you because they didn’t know you had a plan for them—and someone else did! 
 
Pay is secondary to the challenge for any superstar worth their salt. Lock in your superstars now by defining the next career challenge for them and tell them when it will happen. Don’t fall into the trap of believing you can’t be specific or predict what their career path might be. If you hedge, they will hedge. If you don’t have a plan for where a top talent should go next in your organization or what training you are prepared to invest in them, you are not managing that asset well. The plan may evolve and change with performance and circumstances—everybody knows this—but you still need a plan. As long as you have a plan and the superstar knows it, they are much less likely to entertain calls from search firms, and you will retain them when the market recovers.
 
II.             Deal with weak players. Upgrading your team today will give you the advantage when the market improves. 
 
Let’s face it, in down economic cycles it’s natural to think you have made all the tough calls on people and that your team remaining is only the “best of the best.” But, there is a danger in this thinking. You should always look to upgrade your team wherever possible to improve. It is too easy to put up with a weak player or someone who is blocking other talent from advancing because he/she is doing “ok” today.  But, what happens tomorrow when your business picks up? If you have an individual who doesn’t have the horsepower to get you where you need to be in the future, you have an obligation to do something about it. And, if you know it, there is a high probability that your top performers know there is a weakness on the team as well. If you tolerate those who are not able to scale with the business, what are you saying to the others on your team? In its own way, relieving the organization of weaker players is like a bonus to your top talent—they feel they have set a standard and they know their peers on the team are the best as well. When the economy turns, you need a team that is ready to respond on all cylinders. Assess your team and make the tough calls now while the market conditions are in your favor.
 
III.           Recruit top talent now. Top talent is available at a value you won’t see for a long while.
 
Right now, you can search in the market for top talent and successfully land an “A” player for your team at a great value. Why? First, obviously, there are some top performers who simply lost their jobs because of bigger issues in their industry—just look at financial services, manufacturing or automotive. Even among the survivors, people are tired, wary and uncertain. Every company is hurting to a degree, has had layoffs and management restructurings, and many executives work for a different boss or with a different team. Very few companies have the foresight to ensure that career development plans are still in place for their top talent. Under today’s unique conditions, superstar executives want to hear about high potential opportunities with good companies. Now is the perfect time to look for top talent. Any executive you hire today will take several months to learn the company and get up to speed. By bringing on this new talent now, you have time for them to be ready for the improvement in the economy. If you wait until the market improves, the competition for talent will be fierce and the value proposition will go away. 
 
 
Written by Peter Olmsted, President of Partner Executive Search
 
Peter Olmsted, a recognized leader in developing executive management teams for corporations in his career, heads Partners' Executive Search practice. He offers unique expertise in recruiting, development, coaching and integration of leaders, with a focus on matching high-performing executives with businesses that offer attractive and challenging opportunities for growth.