There are many new risks to the companies that need to be identified post Covid-19. Some of these risks are obvious strategic, operational and institutionalized risks and others are not as obvious human capital risks. These human capital risks are unusual and emerging risks making it hard to identify, quantify and de-risk leaving any size organization exposed to profit loss potentially risking bankruptcy.
As a response to the Covid-19 crisis, many companies have been forced to downsize their workforce and put a hold on talent development and building capabilities for the future. This shift into crisis mode has made companies vulnerable for more non-obvious risk than known risk.
With the right internal and external strategic talent investments, companies survive and thrive. Visionary leaders will seize this opportunity and build new talent strategies to successfully emerge from this crisis and build long-term sustainable growth.
When a company builds a long-term talent strategy while in crisis mode, key leaders need to be smart and intentional on internal and external talent investments. There are 4 key workforce de-risk tactics guaranteed to reduce risks and lay the foundation for long-term growth to gain the competitive advantage.
IDENTIFY SKILLS & CAPABILITIES REQUIRED POST COVID-19
The skills and capabilities required before the Covid-19 crisis are not necessarily the ones required post Covid-19. Many jobs will need to be adapted, eliminated or added based on the shift in a company’s strategy and goals. Identify key leaders to work with your HR team to identify the skills and capabilities required for future state success and how current skills and capabilities can transfer.
As companies continue to emerge from unprecedented change and uncertainty, it is important to give more weight on the soft skills such as inspirational leadership, collaboration, influencing and change managed. Investing in talent with these competencies, companies will produce leaders that are curious, insightful, engaged and determined.
ASSESS CURRENT WORKFORCE FOR LONG-TERM GROWTH
People are reevaluating their personal purpose and family priorities. What once motivated people is not necessarily what motivates them now. Before you can start investing in new talent, take a deep dive to understand who your key talent is, what is their current mindset, have their professional goals shifted and are their strengths aligned with your organization’s shift in long-term strategic intent. Assess your team using future state not current state.
Your existing team has something extremely valuable that new talent does not – institutionalized knowledge, relationships and passion for the organization. The assessment of your existing team will be the starting point for building a plan for up-skilling, re-skilling and professional development.
BUILD A FINANCIAL PLAN FOR TALENT INVESTMENTS
It can be very hard to fathom investing money during a time of limited cash flows and financial stress. However, this is the time to take a few smart investments. Successful companies reallocate resources to areas of high-growth and return and divest in lower return areas. Do more with less – less is more. This approach provides your team clarity of purpose and what is important to the organization. Do not make operational cuts across the board with the expectation of the same work. When making strategic cuts, it is important that your investments are placed in areas where you have the most growth and divestments in areas of minimal growth.
ENGAGE YOUR TEAM DURING THIS TIME OF UNCERTAINTY & CHANGE
Many workers are very sensitive to changes with the work they do. Will they have a job? Is there stability with the company? These are questions many ask. When bringing on new talent, your teams can feel uneasy and threatened causing them to work from a defensive mindset vs. growth mindset. How you bring your team along the journey will determine the overall success of seizing the opportunity of building your business for the long-term.
Although companies can never completely eliminate business risk, proactively planning for known and unusual/emerging risks can mitigate financial impact. Awareness is key to increase profits while protecting the trust, reputation and customer base you have worked so hard to achieve. Stay close to your teams, be clear on their purpose and keep the lines of communication open.
CWL Consulting Group is ready to work with you to develop & implement your post covid-19 risk strategy. Contact us today for a free consultation on how we can help navigate post Covid-19 complexities.