Singapore - Talent management has always been one of CEOs' top concerns. But with the current economic crisis, what else has been keeping these leaders awake at night?

Failing to design a strong people-centric business strategy and not keeping communication lines transparent during this crunch time are some of the things CEOs worry about. Speaking at the Watson Wyatt's CEO forum last Friday, Lai Chong Meng, executive chairman of Cleanaway-KLC Group of Companies, Taiwan, believes companies would be better positioned to handle the downturn if they include human capital development in their business model. "If a CEO has not been driving human capital development, those companies would be less equipped to face current crises."

Lai adds having a continuous system in terms of human capital development will also help put companies ahead of the competition. 

It is equally vital to keep communication channels between US-based headquarters and Asia offices transparent, says Ajay Kumar, regional director for Rockwell Automation South Asia. For him, filtering information from his US offices is especially challenging as sometimes not all the communication are meant for Asia-based employees. "What we realised is that it is better to be upfront, transparent and talk about that, and logically explain why the situation in Asia is different. It is how you get these people motivated."

This is where HR has a role to play, suggests Kumar. "What is becoming more and more important is having HR being more of a business partner, which means they start understanding some business aspects, start understanding the roles and responsibility more clearly."

This is particularly more important when the company is a matrix organisation operating in a complex environment, he adds.

Once the human capital strategy is aligned to the business objectives, HR professionals will do well to keep the workforce engaged through both financial rewards and career development. Lai says, "I found that by rewarding a person in the career path, you give him a bigger portfolio, you find that this person will expand leaps and bounds way beyond the financial rewards you give him."

"That is a dramatic impact on your organisation on the whole because you are walking the talk about human capital development and at the same time, sustainable rewards," adds Lai.