Some of the best talent in the industry is being needlessly lost through broad cost-cutting measures. We all know that savings need to be made but for those who wish to be left in healthy shape when the upturn comes, performance management and not the wholesale elimination of cost centres is the answer.

The inherent risk lies in the destabilising effect on the workforce that remains. We’ve all heard the stories of recruiters returning from lunch to find their desks locked and their possessions outside. We all know because they’ve told us… including their ex-colleagues fortunate enough to remain employed. The result is severe. It’s not just the natural stress of cut backs. It’s the lack of communication, the lack of perceived fairness and, in the case of some, the thought that no matter how much you consistently bill you could still be for the chop.

With top performers in such high demand throughout the industry, no recruitment business can afford to unsettle the people they are relying on to weather the storm. One action to take is to prevent a communications vacuum forming; this allows dissenting voices to be more easily heard, which can irreparably damage confidence in management ability. Performance management combined with clear communication provides a fairer and more transparent approach to a lean and sustainable business. True, this tactic requires more work, but the rewards are not just in the short term — it retains the best talent, enhances recruiter engagement and nurtures future growth and profit.

Within this, HR has a key role to play as the glue in maintaining relations between management and staff. There’s a temptation to believe that HR is simply there for disciplinary procedures and transactional requirements but it can have a far greater influence. We hear from clients about the importance of their employer brand, but have we truly understood what is required in defending our own?

Boyd Kershaw HR director, Practicus