Businesses have learned the lessons of past recessions, with the need to shed staff balanced by an increasing focus on talent management, according to recruitment and talent management consultancy Hudson.

This was the key conclusion of a survey of more than 500 HR and business leaders in more than 30 countires conducted by Hudson in March.

According to the findings of the survey, business better understands there is a balance between the need for cost-cutting by shedding staff, and losing vital talent, which will take substantial time and money to replace. 

Marc Timmerman, executive director of talent management of Hudson Europe, says: “Organisations must consider the balance between immediate impact on cost and long-term talent needs, as their decisions are likely to have a major long-term impact on the capability and competitiveness of the organisation.”

 “We are seeing a learning effect from past crises: organisations now realise that talent engagement is key and the challenge is the retention of their key people. These are as important as the right-sizing exercises,”  says Timmerman.

The survey found that businesses in Europe increasingly use assessment programmes to identify talent (61% now versus 39% in 2008).  Similarly, two thirds now incorporate talent development programmes into their HR strategy compared to a third in 2008.