We all know that the downturns in the economy affect the entire country. For organizational leaders and operational managers, it makes their already difficult roles even more complicated.

Keeping staff members motivated and managing the organization’s talent pool are particularly tough when over 60% of US firms have taken four or more cost saving actions. This statistic comes from a survey by the professional services firm, Towers Watson, that they conducted during the Great Recession. It points out the value of firms using flexible talent management and employee engagement programs. As noted in their survey, a flexible program allows the firm to engage and manage its talent effectively throughout economic cycles–including recruiting for critical skill positions.

After surveying 1,176 global companies, here’s what Towers Watson found as the top concerns of employees considering an employment opportunity during the recession:

1. Competitive base pay

2. Challenging work

3. Convenient work location

4. Career advancement opportunities

5. Vacation/holiday/paid time off

6. Reputation as great place to work

7. Flexible schedule

These key findings are interesting to me.  They are not new. (See top five employee motivators). The survey findings validate what we know already.  They also provide some insights on new millennium trends for motivating employees.  Employees continue to want fair pay, challenging work and growth potential. They want these work elements with work/life balance and schedule flexibility however.

Gen Y and Gen X workers do not want to follow the example of Boomers in giving too much to the job to further their careers.  Increasingly, Boomers, too, want work/life balance as many have elder care responsibilities and face the reality of having to work longer because of the Great Recession. The uncertain future is changing how everyone views the workplace.

The survey also had some recommendations for business leaders and managers.  Three key findings of the survey that caught my attention were the following:

1.  Rewards need to be differentiated based on performance.

2. Organizations need to ensure consistency in how rewards and talent management programs are implemented.

3.  Leadership, performance management, and employee learning and development need greater emphasis.

These key findings are also not new.  Organizations that effectively engage and manage their talent do this already. When rewards are not differentiated, their ability to impact performance lessens.  Top performers are irritated when marginal performers receive the same reward that they do.  Also, the organization sends the message that you only need to be an average performer to be rewarded.  This is a costly message in this time when innovation is critical to an organization’s survival.

Having started as a “numbers manager,” I like to see some numerical validation for good management practices.  An important element of effective research is that the results can be repeated.  The Towers Watson survey findings are an important reminder of what managers and leaders can do now to engage, retain, and manage their organizational talent.  These various findings will become even more important as the economy improves and the employment advantage becomes more balanced in favor of the employee.