In response to the recent recession, companies are slashing spending on talent—but this comes at a cost.

In fact, now is the time these firms need their star performers most.  But there is a way to make the most of your top players without breaking the bank, argues bestselling author Sylvia Ann Hewlett in TOP TALENT (Harvard Business Press).
 
Hewlett is the President of the Center for Work Life Policy, whose latest data shows that:
 
* Compared to a year ago, the percentage of top talent who feel loyalty to their firm has dropped from 95% to 53%; the percent of those who feel engaged has fallen from 91% to 79%.
* 90% of top talent report having heavier workloads, 89% report high levels of anxiety, 74% feel paralyzed, 73% feel demoralized, and 64% feel demotivated.
* After a reduction-in-force (RIF), a company is particularly vulnerable to losing their stars.  In one study, 31% of survivors walked out the door after a RIF - most of them top performers.
 
Nurturing and retaining talent during difficult times calls for pragmatic interventions, including:
 
* Restructure with care. If you’re forced to cut jobs, make the process humane. Many firms immediately escort laid-off employees out of the building, but at Bloomberg Business News, people were encouraged to say goodbye to their colleagues and leave with dignity.
* Create a “no-spin” zone of clear and copious communication. At Google, managers are encouraged to act like a pilot whose airplane is stuck on the tarmac: Share what you’re told by the control tower, broadcast regular updates, and apologize for the inconvenience.
* Use time as currency. Flexible work arrangements, including mini-sabbaticals, working at home and guilt-free exercise breaks, have been proven to boost employee productivity and cut employer costs. For example, Citigroup saves money and attracts millennials with its new Alternative Workplace Strategy that encourages remote working and hoteling.
 
There's never been a better time for proactive efforts like these. Being known as a “stand out” employer during a prolonged downturn has an enduring impact on a company’s reputation, enabling it to attract and retain the best and the brightest over the long haul. Ironically, talent initiatives don't have to be expensive—and today's recession may be an unexpected opportunity.

The author: Economist Sylvia Ann Hewlett is founder and president of the Center for Work Life Policy. She directs the Gender and Policy Program at Columbia University’s School of International and Public Affairs and is a member of the World Economic Forum Council on the Gender Gap. She is the author of nine books including When the Bough Breaks (winner of a Robert F. Kennedy Memorial Book Prize), and, most recently, Off-Ramps and On-Ramps. Sylvia lives in New York.
 
The book: Top Talent: Keeping performance up when business is down, by Sylvia Ann Hewlett is published by Harvard Business Press and distributed by McGraw-Hill in Europe ISBN: 9781422140420