As the world slides into recession, the pressure is on banks and financial services institutions to overhaul their people management practices and get ready for the eventual rebound. But to keep afloat and remain profitable, they need to cut costs and staff. It is a double-edged problem. As Ken Gilbert, the head of Mercer’s human capital business says: “Aside from the need to survive, one of the biggest challenges organisations will face in 2009 is managing competing workforce pressures – the need to contain employment costs versus the ability to maintain levels of engagement and productivity for when the market upswings.” In other words, banks and financial services firms need to reduce costs and numbers but at the same time, nurture and attract talent so that they can be out in front when the market recovers. Doing both simultaneously is the new challenge. For their HR managers, most of whom have never experienced a downturn, it is uncharted territory.