“Talentism”, the new capital

“Talentism”, the new capital

HR is focusing on supporting business objectives and this might mean reorganization, restructuring, cost reduction and increase of efficiency.

The local market is heading towards a certain level of maturity compared to previous years and different processes and practices such as retention or career development, performance management are becoming more and more common and widely spread in organizations, irrespective of their size or industry. This doesn’t contradict the focus on maintaining costs under control, but retention is a far more complex concept and shouldn’t only mean offering more money to employees who want to leave the company.

Looking for innovation

Innovation is the investment different companies make in local Research and Development Centers, as well as for supporting higher education of their employees and attracting talent from academic environment or from top organizations. The incentives system rewarding innovation is not easy to estimate, as we speak of very different situations from one company to another and for each specific employee. Sometimes, a single employee’s work or a team’s effort might result in obtaining a certain patent or revolutionary solution or technology which impacts the entire industry and the market at global level.

Temporary staffing – solution for flexibility

Temporary work, also known as leasing or staffing, is a great solution for increased flexibility. Companies benefit of having the right talent on board when they need it most – either on projects or for temporary replacements, activity peaks or when they start a new business unit where they are not present yet with an entity etc. It is cost-effective if you think that the full service including recruitment, selection and payrolling for the respective employees is covered by a monthly commission payable starting after the 1st month of activity. Otherwise, if you compare the regular cost of having an internal employee and a temporary one who is outsourced, the last one has slightly higher monthly cost.

“Talentism” to meet the competitiveness agenda 

Companies should become more aware of the competitive environment they are operating in and realize that “talentism” is the new capital which can help them to differentiate and win. We acknowledge that we have significant headcount reductions in the market this year, but it doesn’t mean we’re not short on talent and this increases pressure on recruiting and attracting the best for each organizational and business environment. It seems contradictory, but more candidates available for jobs don’t necessarily mean it’s easier to find the right ones to fit companies requirements.

Unemployment – scary or under control?

Current legislation is showing more flexibility to employers – there are still many issues to be addressed in response to companies and employees’ expectations.

For Romania, unemployment should not increase significantly compared to previous year, so 7-8% at national level would be our estimate. In Europe, there are huge differences between different markets and overall unemployment is increasing, as is aging population. Most critical levels in Europe have been seen in Spain with figures over 20% , especially as the market has the higher unemployment among fresh graduates and younger people.