Strategies for Retaining Talented Employees During Downsizing

Nonexistent talent management strategies can negatively impact retention levels of talented employees during downsizing. Human resource managers who struggle to retain talented employees are at risk of not maintaining a competitive advantage and business sustainability. Grounded in the institutional theory of downsizing, the purpose of this qualitative multiple case study was to explore strategies human resource managers use to retain talented employees during downsizing. Participants included 6 human resource leaders from Fortune 500 service industry corporations in metropolitan Atlanta, Georgia, who used talent management retention strategies to retain talented employees during downsizing. Data were collected from semistructured face-to-face interviews and organizational artifacts. Thematic phase analysis consisted of compiling, disassembling, coding, and reassembling the data; interpreting the meaning; and developing themes and patterns. Three central themes emerged: transparent communication, performance standards, and succession planning. Key recommendations for leaders are to identify the talented employees using an equitable performance review process, use transparent communication throughout each phase of downsizing to minimize employee anxiety, and include in their strategy a process similar to one for succession planning. The implications for positive social change include the potential for business and human resources leaders to eliminate personal bias and promote workplace equality, thereby sustaining talented employees’ labor market participation in their respective communities