Reducing The Risk Of Talent Wastage During Business Makeover

1. R Re edu duci cin ng g T Th he e R Ri is sk k O Of f T Ta al le en nt t W D Du ur ri in ng g B Bu us si in ne es ss s M Ma ak ke eo ov ve er r Wa as sta tag ge e

2. R Re ed du uc ci ing ng T Th he e R Ri is sk k O Of f T Ta al le ent D Du ur ri ing ng B Bu usin sine ess ss M Ma ake nt W keo ov ve er r Wa as st ta age ge For most organizations feeling the need to cut own the number of their employees, efficient talent management can prove to be a major challenge. Their inability to proactively manage the workforce not only increases the risk of losing in-house talent and valuable resources but also the trust and morale of the employees they might have fought hard to win. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com E Exe xec cut uti iv ve e S Se ea ar rc ch h C CH HI IN NA A – – A AS SI IA A

3. R Re ed du uc ci ing ng T Th he e R Ri is sk k O Of f T Ta al le ent D Du ur ri ing ng B Bu usin sine ess ss M Ma ake nt W keo ov ve er r Wa as st ta age ge However, as the outplacement professionals in China are often informed by their clients, the pressures of limited time along with the need to cut costs and bridging crucial talent gaps, often makes organizations to adapt a reactive approach towards doing things. While they might provide the help and support to their outgoing employees through career transition coaching in China, it might just not be enough to cover the damage. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com E Exe xec cut uti iv ve e S Se ea ar rc ch h C CH HI IN NA A – – A AS SI IA A

4. R Re ed du uc ci ing ng T Th he e R Ri is sk k O Of f T Ta al le ent D Du ur ri ing ng B Bu usin sine ess ss M Ma ake nt W keo ov ve er r Wa as st ta age ge Implementing Change In A Hurry The most important thing that business organizations need to understand about reducing talent waste is that making haste always proves damaging. This is because, with the shorter timeline to implement the necessary change, companies often choose the path of removing employees handling similar tasks. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com E Exe xec cut uti iv ve e S Se ea ar rc ch h C CH HI IN NA A – – A AS SI IA A

5. R Re ed du uc ci ing ng T Th he e R Ri is sk k O Of f T Ta al le ent D Du ur ri ing ng B Bu usin sine ess ss M Ma ake nt W keo ov ve er r Wa as st ta age ge However, doing so without proper planning can result in increasing the overall business operation costs rather than bringing them down. This is because handling redundancy in a poor manner increases the risk of losing good talent significantly besides causing much financial loss to the organization. This loss is in the form of severance payments and outgoing costs for the employees being removed. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com E Exe xec cut uti iv ve e S Se ea ar rc ch h C CH HI IN NA A – – A AS SI IA A

6. R Re ed du uc ci ing ng T Th he e R Ri is sk k O Of f T Ta al le ent D Du ur ri ing ng B Bu usin sine ess ss M Ma ake nt W keo ov ve er r Wa as st ta age ge In addition, it affects the overall confidence and performance level of the remaining employees which can derail the overall business output. Finding The Right Solution When faced with such situation, a leading interim executive search firm in China advices its clients to use the principle of four R’s to manage workforce change. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com E Exe xec cut uti iv ve e S Se ea ar rc ch h C CH HI IN NA A – – A AS SI IA A

7. R Re ed du uc ci ing ng T Th he e R Ri is sk k O Of f T Ta al le ent D Du ur ri ing ng B Bu usin sine ess ss M Ma ake nt W keo ov ve er r Wa as st ta age ge These three R’s are identified as redeployment, retraining and resourcing. Each of these factors is explained in brief as follows.  Redeployment  Retraining  Resourcing Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com E Exe xec cut uti iv ve e S Se ea ar rc ch h C CH HI IN NA A – – A AS SI IA A

8. R Re ed du uc ci ing ng T Th he e R Ri is sk k O Of f T Ta al le ent D Du ur ri ing ng B Bu usin sine ess ss M Ma ake nt W keo ov ve er r Wa as st ta age ge Redeployment : It is important for the business organizations to understand that removing employees will lead them to lose their entire investment in the form of hiring and development of the employees. To avoid suffering this loss, it is advisable for the organizations to consider redeploying the employees to retain their knowledge and skill within the company. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com E Exe xec cut uti iv ve e S Se ea ar rc ch h C CH HI IN NA A – – A AS SI IA A

9. R Re ed du uc ci ing ng T Th he e R Ri is sk k O Of f T Ta al le ent D Du ur ri ing ng B Bu usin sine ess ss M Ma ake nt W keo ov ve er r Wa as st ta age ge For this the organizations need to identify alternate career paths and opportunities for the members of their workforce in accordance with their identified capabilities and interests. Retraining : It is a well known fact that retraining the employees can prove to be a costly option for organizations already looking to cut their costs. However, this can help the companies to win the trust and loyalty of its employees for a lifetime. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com E Exe xec cut uti iv ve e S Se ea ar rc ch h C CH HI IN NA A – – A AS SI IA A

10. R Re ed du uc ci ing ng T Th he e R Ri is sk k O Of f T Ta al le ent D Du ur ri ing ng B Bu usin sine ess ss M Ma ake nt W keo ov ve er r Wa as st ta age ge Such investment assures the employees of the commitment of the company towards its people and their development and motivates them to give their 200% towards its growth. Resourcing : The organizations should invest time and effort in critically evaluating their employees and sourcing strategies to identify the right candidates for fulfilling key roles. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com E Exe xec cut uti iv ve e S Se ea ar rc ch h C CH HI IN NA A – – A AS SI IA A

11. R Re ed du uc ci ing ng T Th he e R Ri is sk k O Of f T Ta al le ent D Du ur ri ing ng B Bu usin sine ess ss M Ma ake nt W keo ov ve er r Wa as st ta age ge This exercise will also help organizations to identify skills and roles that would no longer be required by the organization. This will make it easier for the organizations to provide the most efficient outplacement support for such employees. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com E Exe xec cut uti iv ve e S Se ea ar rc ch h C CH HI IN NA A – – A AS SI IA A