Prior to the information revolution, competitive advantage mainly came from cheap, raw materials and labor. This is no longer the case. Today, the value of a company’s products or services is derived largely from knowledge-based activities such as design, technological superiority, customer service, and logistics. Thus, it is imperative to do everything possible to preserve and enhance the source and key to knowledge: the individuals who possess it. This means attracting and retaining top performers. However, hiring and retaining talented individuals capable of performing knowledge-based functions is increasingly difficult, as competition for talent heightens, more complex corporate structures are created, and job mobility continues to rise. Only those companies with the best recruiting and retention policies will succeed in the “talent economy.”
Recruiting and retention are interconnected. When a company is trying to “retain” talent, it is in fact “attracting” talent as well. Thus, recruiting and retention should not be addressed as disparate policies, but rather as one "talent” policy. Important measures to implement when developing effective recruiting and retention policies include:
First, adopting an objective decision making process. Employees leave companies that are unstructured and make ad hoc decisions. Give employees a sense of involvement in the decision – making process. People want to work in organizations where they know that their ideas and opinions matter. The more an individual feels they are making an impact, the more likely they are to stay.
Secondly, emphasizing the importance of personal and professional development. Junior-level employees tend to look at jobs as learning experiences that will increase their market value and prepare them for their next position. Senior level employees should feel they can learn and develop as managers and leaders. Employees value a company’s investment in improving their capabilities and feel that the company is sincerely interested in their development. Additionally, a company that improves the skill set of its current employees will increase its knowledge base and bench strength without having to hire outside talent.
Recruiting and retention are interconnected. When a company is trying to “retain” talent, it is in fact “attracting” talent as well. Thus, recruiting and retention should not be addressed as disparate policies, but rather as one “talent” policy. Important measures to implement when developing effective recruiting and retention policies include:
Making sure employees are fairly compensated. Top performers command salaries commensurate with their abilities. Money alone however is not enough to satisfy talented individuals. They also need to be inspired by their work and motivated to perform. To accomplish this, create incentive systems that link an individual’s productivity and effectiveness to their compensation.
Of course, open and effective communication greatly enhances the success of incentive programs. If employees don’t know the status of their performance or are not sure of how they are being judged, they will not be inspired to work or happy with their working conditions. Therefore, the benchmarks in an incentive program need to be well communicated and a monitoring and review method, which informs individuals of their progress, must be implemented. In this way, employees know how they are performing and when they are deserving of rewards. For an incentive program to succeed in motivating and compensating employees, it is essential to keep the measurement and monitoring process clear and understandable.
Implementing these measures is a good start. Companies with the best talent policies not only adhere to many or all of these strategies, they also implement them the best. This means individualizing talent policies according to the specific needs and desires of top performers. Each company must find its own ways to involve employees in the shaping of the company, to help employees grow, to integrate work with employees’ personal lives, and to design compensation packages with clear, objective appraisal systems. While the creation and customized implementation of a successful talent policy can be time and capital intensive, the only way a company can maintain and improve its knowledge base is by hiring the best talent, motivating performance at peak levels, and keeping talent within the organization.
This article is written by Mr Jonah Levey, CEO & Founder of Navigosgroup.com, email: jonah@navigosgroup.com. Website: www.navigosgroup.com and www.vietnamworks.com. Tel: (08) 404 1373.
