Archive for the 'Retaining Top Talent' Category
Why most organisations don’t have the right people
Hay Management Consulting, the CIPD have produced a report that states that:
If the objective of talent management is to ensure that organisations have the right people in the right roles then it’s probably safe to say that for many the process is falling short.
The problem is that many organisations lack the dedicated resources to understand what their organisation will demand from their people in the future.
The result is that they focus on generally enhancing talent without a clear definition of future needs.
As can be seen from my website having a company filled with top talent creates competitive advantage for a business. If talent management (attraction and retention) is becoming an vital differentiator that distinguishes one company from another shouldn’t companies pay more attention to their future talent needs?
What is The Future in The War for Talent…
The article below is a synopsis of the Keynote address given by Stephen Harvard Davis to the SumTotal Systems Users Conference held at BAFTA, London 3rd October 2007
“People are NOT your most valuable asset…The right people are”
Let me share with you two comments from Government reports earlier this year:
“The most important resource over the next twenty years will be talent: Smart, sophisticated business people who are technologically literate, globally astute and operationally agile”
US State Dep’t Report
The second comment concluded a report by stating: “CEO’s that fail to make talent management, the aquisition, groth and retention a strategic imperative NOW could find themselves and their companies casualties of an increasingly competitive and global environment”
UK Leitch Review
We can understand the shortage of global talent by focussing on just one reason, amongst others, for a shortage and what I know as the CHINDIA phenomenon.
The working population in the UK is 38 million,
in India it’s 670 million.
If we focus on relative salaries:
US $34,870
UK $33,630
China $ 8,144
India $ 520 (2006)
We can then understand why the Indian share of the global outsourcing market, currently at $13billion will grow by 2010 to $30billion and why much of this growth will be in business consultancy.
The growth in China is is equally as impressive. Harvard University estimate that by 2008 it is highly likely that China will generate intellectual property on a par with developed countries and that by 2010 will exceed it. (Other countries such as Russia, Brazil and Argentina and creating their own economic powerhouses).
Harvard University also estimate that by 2010 there will be more English speakers in China (based upon competance and understanding that English speakers in the USA.
The one thing, however, that all of these economic blocks require is talent in order to suppliment their own and maintain their level of growth. As a result they are buying in talent, particularly management and sales talent from wherever it can be found. So in this war for talent we have to accept that talent knows how valuable it is and is adept at finding a job and a lifestyle it seeks.
So in this war we need a strategy:
That’s why I get asked so often
a) How do we attract top talent to our company?
b) How do we retain it? To develop a strategy we need to start with a definition of Top Talent. Thedefinition that BRC uses is: “The top ten percent of those available in terms of qualifications, experience, attitude and determination and ho are prepared to work for the rewards offered”
This means that top talent can exist at all levels of an organisation and that it is possible to have a business filled with top talent. The one thing, however, is to avoid all of your talent being concentrated in one area.
So when is talent “at risk”
Universally it’s when top talent feels that its employers:
- Are not engaged with the talent
- Aren’t working for their development
- Are not appreciated
- See no chance of promotion
- employment doesn’t meet personal needs
But it’s specifically after organisational change or restructure, such as new management or an M&A that head-hunters and search companies will be contacting your top people.
BRC’s research has also identified that when a business loses one person who is top talent leaves then the risk of losing more increases by 50%.
So how can we retain our talent?
The starting point is to recognise that that talent is looking for more than a pay cheque and as a result won’t all be flying off to India and China. That said we can all agree that different types of talent will look for different things which is why talent can’t all be treated in the same way with a “one fix meets all” solution. This makes it difficult for HR but in the war for talent flexibility is going to be essential.
- Have an audit of your talent’s needs and keep them up to date
- Audit past talent to see what they say about you as an employer
- Identify the cost of replacement (include opportunity costs)
- Detail the benefits of working for your organisation
- Manage the talent’s career and development effectively
- Train managers in managing top talent
- Monitor and reward line managers for retaining talent
- Identify talent for promotion
- Have a good internal and external “E-image” to attract talent
So what are the future trends in the war for talent?
- The CHINDIA factor and other economic blocks will mean that Top Talent will become even scarcer in the future
- Talent movement is likely to become increasingly global
- Companies will develop talent management strategies and those that don’t (no matter what their size) will lose out to their competitors
- Having a process to identify, develop and retain talent will be vital for success
- The organisation will need to share information on talent with HR, Line Managers, Trainers.
- Having a good internal and external “e-image” will be vital to attract and retain top people
Will Jobs Survive in Debt-Ridden Britain?
The long-awaited credit crunch has arrived.
Whilst many media commentators suggest that the effects will be increased re-posessions and defaulters (although being smaller than in the USA) the effects on the UK economy may be huge. Queues oustide Northern Rock offices to withdraw savings?will only heighten the more hysterical tabloid headlines and increase concern, despite?the fact that the UK economy is sounder than most of the other G7 countries.
However, the squeeze on credit is likely to cause layoffs and “Hiring freeze”. In fact, this has already begun with Lehaman Bros announcing job cuts and much of the UK’s financial square mile halting recruitment. The effect is likely to be increasing unemployment?that will ripple from the City’s square mile as other business prepare for hard times.
But actually halting recruitment altogether might not be a sensible strategic move. A company wanting to exit the downturn faster that its competitors might well use the opportunity to re-inforce its “Top Talent”.??
I’m not?not saying that?companies should?not downsize at all. Just that, if the business can afford it and most banks?and many other companies can, NOW might be the time to attract that “Top?Talent” required to weather the storm. The?talent that companies should consider as good investments?are?Grade “A” strategists, marketeers and salesteams.
Attracting “Top Talent”?at this time should be particularly easy when people in other companies feel pressured by staff cuts and a halt on recruitment. The result could reduce the time that most companies will feel current pain and create a springboard for increased competitiveness.
But one has to wonder how many will be brave enough!
Accountant Firms experience talent crisis in 2007
Research indicates that 81% of Accountancy and finance firms say they are likely to find recruiting talent difficult during 2007 and that this situation is likely to get worse over the foreseeable future.Further research from Manpower UK reveals that 71% of employers feel that retaining talent will be the number one priority over the next few years. As a result HR management are being asked to increase their skills in reward management and retention strategies. The survey also reveals that the most common strategy being adopted by firms is to throw money at the problem by matching competitor’s salaries.However?in my?experience such a tactic is bound to fail. The reason is that the firms at most risk are SME’s and as a result there will always be someone else with more money. Another reason is talent rarely moves just for money and in addition a “one size fits all” retention policy is proved not to work. Dealing with Top Talent is more complicated that that. Instead BRC recommends the following:
- Audit what attracts talent to the business
- Audit individual talent to discover what they value about the business
- Review recruitment and retention policies
- Train managers in retention strategies
- Reward managers for retaining talent
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Ten Tips on How to Retain Top Talent
1) Don’t presume that Top Talent will always be available. There’s a world shortage of Top Talent in most business?sectors and that’s likely to become more acute.
2) Decide on the skills, attitude, aptitude and motivation that you require from your talent and then search for it using that criteria.
3) Look at how your competitors attract top talent and seek ways of improving what they do. Review this often as they will seek to copy your strategy.
4) Resist the temptation to “Throw Money at Top Talent”. Remember that talent doesn’t always look for money and in any event there will always be someone who will have more money?than you. Consider other strategies.
5) Identify why talent would be attracted to your firm.
6) Identify why talent stays with you or is leaving.
7) Different types of talent will look for different things. So be flexible in how you develop your talent strategy. One size won’t fit all.
8) Don’t vest all your energy into one small section of talent (such as a graduate programme). The ideal solution is to have talent from top to bottom in the organisation.
9) If your business is a SME consider having a talent strategy for your associates or even suppliers and review this regularly.
10) Remember that if one talented person leaves your business then the risk of losing further talent increases by 50%.?If you can attract top talent to you then your chances of attracting more increases by 50%
How TESCO hangs onto its Top Talent
It’s been reported that Tesco has found an ingenious way of holding onto its Top Talent. Under headhunting rules search companies and consultants will always sign an “off limits” agreement with clients. In effect this restricts anyone from poaching people from their clients when engaged by a rival company to fill a job vacancy. Tesco, it is alleged by some parts of the media, have engaged every headhunter it knows in a move to prevent Top talent being headhunted to Sainsbury or Marks & Spencer.This is all very well but if Tesco’s competitors also use this strategy then staff could well be “locked in” to their current firm and with little movement at all.
Well we doubt that, in reality, staff will not be moving from one superstore to another it but it’s an amusing thought to consider all that talent in Tesco’s, Sainsbury and M&Ss head office wondering why their phones don’t ring with job offers anymore!!
Is a positive E-image important to attracting Top Talent?
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Research shows that Top Talent all over the world is adept at identifying companies that they wish to join and for lifestyles they want to enjoy.
- In Malaysia 47% of Top Talent is looking for a new job
- In singapore the figure is 40%
- Australia 33%
- Thailand 32%
- China 31%
- UK 40%
Much of this talent identifies companies thay wish to work for by surfing the internet. They are looking for companies that will look good on their resume and for lifestyles that they will find attractive. As such the company website will often be the first gateway to attracting Top Talent
A positive E-image is, therefore, important to attracting and retaining Top Talent in a business.
What should this image look like and which companies do you know that have a positive e-image?
Pay and Rewards for Top Talent
Do companies that recruit top talent?need to?pay more to attract and retain the top talent?
There are many reasons why top talent is attracted to a company and pay is often lower down on the list than we might expect. Firstly top talent tends to be hungry for knowledge, it’s often what makes them top talent in the first place. So if our business can offer learning and development opportunities then it will attract and retain top talent.
If there is a culture of training and development, coaching and mentoring opportunities with people that the top talent?respects, the prospect of promotion and development, working with other top talent and being part of a growing and successful company then top talent will want to join, even if this means compromising substantially on salary.
Secondly top talent will be attracted to a business that’s recognised as being (or will be) a market leader. Often top talent will delay rewards such as pay as these people will look for opportunities to grow and develop their skills and experience.
Companies that are serious about attracting and retaining top talent will pay a competitive salary and ensure that it remains competitive.
However it’s the non-pay actions that attracts and retains the top talent in the first place.
(44) 0 1727 838321
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How To Attract and Retain Top Talent
In my regular discussions with CEO’s and the leaders of large multi-national businesses about the value of top talent to their business we will often conclude that:
- A top talent company means having top talent in all areas of the business. A business can’t survive with top talent at the top or in specific areas of the business whilst having little top talentin all the other parts of the business.
- Many organisations fail to recognise that they may already have top talent within their business. As a result they will often seek to recruit expensive outsiders. This is because they don’t have a system for identifying their top talent at an early stage in the employment cycle.
- Top talent is often attracted to the prospect of personal development as opposed to a high salary.
- A company filled with top talent will always attract other top talent to it
- A company filled wwith top talent will grow faster, be seen as a market leader and produce more profits than its competition.
When describing how the above impacts upon a business I will often make the analogy to a highly successful restaurant. Any restaurant that fills all of its tables every night and has a full diary of forward bookings will have acapable, stable and motivated team of chefs in the kitchen. However having a team of top talent creating the product, in this case food, is not enough. To provide a great customer eating experience there must be a team of professional front of house and waiting staff to meet, greet and serve the customers. Otrher aspects such as decor, entertainment value and ease of access may play a part but the main criteria are the people and the product.
However if that top talent leaves the restaurant this is often immediately noticeable by regular customers. Either the food or the service will suffer and customers immediately will stay away in droves.
Why top talent is attracted to a business:
- The work is interesting and challenging
- There are promotion opportunities
- The company will look good on the CV
- High performers are recruited and looked after
- There is a boss or mentor that is admired
- The company has a good reputation and is a strong performer
- There is long-term commitment to top talent
- Culture and values are liked
- There is trust in the senior management
- Top talent is recognised and rewarded for their individual and team contribution
Why top talent leaves a business
- There is change in the management that does not appreciate the top talent
- There is conflict with immediate superiors
- Close friends (other top talent) leaves
- There are no further learning opportunities
- Another company will look better on the resume (CV)
Stephen?Harvard Davis is described as the UK’s leading authority on job transition and is the author of “Why do 40% of Executives Fail?”. He also advises companies on transion managment and attracting and retaining top talent within a business. He is also a sought after speaker at high level conferences and business meetings.
Tel: 44 (0) 1727 838321
email: stephen@busrelcon.com?www.stephenharvarddavis.com
Why gamble with your top talent?
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by Stephen Harvard Davis
Top talent can get a new job tomorrow. With computers, the Internet and mobile phones at their disposal top talent doesn?t even have to leave their desk. All they need to do is to connect with someone that sees them as fresh, smart and keen. And when top talent starts to leave other top talent tends to follow. If too much top talent disappears then it?s possible to have a business filled with people that should go but don?t. Yet too many companies gamble that their top talent will stay but do little to prevent the loss.
Replacing top talent can be costly and often as much as twice the salary in hard cash terms. Yet recent studies from the USA suggest that the opportunity costs when top talent leaving a company can be as much as twenty-four times the salary (Based on a salary of ?62,000).
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Most companies try to retain their top talent by throwing money at the situation.? This reliance on financial rewards because it?s one of the few things the company feels they can exercise control over. So high salaries, share options and other rewards are used as a motivator. However as we all know this thinking is at odds with all the research done on the subject. The fact is that money only buys time and talent scouts are always on the look out for top talent and are always able to pay more.
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There are six steps to retaining top talent:
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Step one is to recognise that top talent can be found at all levels within an organisation. It?s not, and never has been, confined to the boardroom, top tiers of management or graduates. Once identified, however, top talent needs to be nurtured, developed and encouraged otherwise it walks. Managers, therefore, should be rewarded for identifying top talent, developing and nurturing it.
Step two is to understand the reasons for top talent leaving. This means learning what individual?s want from the job. Many companies view this as difficult because of the complexity of analysing human relationships. It also makes developing a one size fits all package of benefits difficult.
The result is that most companies ignore the real reasons for talent loss and blame attractive salaries and benefits on offer from competitors. As such companies seem to be content with allowing top talent to leave whilst pretending that nothing can be done about it. Yet the fact is that top talent tends to be hungry for knowledge and experience and seek out the companies that can offer them this.
Certain top talent can be therefore be categorised in three ways ?Knowledge nomads? moving from one company to another seeking information that adds to their abilities. Then there are the ?Prospectors?, those that are looking for better career expectations and finally the ?Relationship Migrant? who seeks out a particular type of boss as a teacher and mentor.
Step three is to engage with top talent. Top talent tends to be attracted by retention drivers such as, mentoring, coaching, training programes and particularly by discussion groups where the top talent is asked to contribute to the company?s vision, direction and future. However paying lip-service to this communication will only go to create resentment. The engagement must be real and allow the top talent the opportunity to contribute effectively.
Step four is to provide constant feedback and stimulation. There is little point in having groups of top talent look at the future of the business if senior management pays lip service to the process and are not prepared to enter into the discussion, try out some of the ideas that top talent comes up with or allow top talent to make their own mistakes.
Encouragement should also be given to top talent wishing to move laterally within the business. Such ?talent swap? encourages learning and reduces a feeling of being ?trapped? in one specialist area.
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Step five is recognising that line managers have the greatest influence over retaining top talent. Managers should be encouraged to develop a relationship and losing a top talent should be regarded as a ?management failure? and viewed with concern. When losing top talent there should always be an exit interview as well a debriefing for the line manager. This is essential if mistakes aren?t to be repeated time and again.
Step six is to assume that when top talent gives notice to quit that they aren?t out of the door until it?s firmly closed behind them. Early meetings to discuss why they are leaving and what could be done to bring about a turnaround are often successful.
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Stephen Harvard Davis is recognised as the UK?s leading authority on job transition and retaining top talent and the author of ?Why do 40% of Executives Fail?? A regular speaker at high profile conferences and business meetings. Contact Stephen on (44) 01727 838321 or www.stephenharvarddavis.com