Human Capital and the Road Ahead

When budget reductions stretch corporate resources, cost is often placed before value in many operational areas, even when it comes to a critical item such as a company’s employees. As a short-term gain, HR and hiring managers may look to trim the salaries of the talent they hire, a tactic that often results in attracting only candidates of average to below-average caliber. In the end, the costs of turnover far outweigh the longer-term investment in attracting the best talent—a far higher price than many companies had originally bargained for.