Archive for April, 2008

What’s your business “Plunder rate”

Most managers believe that their people leave the business for more money because that’s what their departing talent tells them. (It saves having to burn bridges and spoil relationships with the employer and is always believable).

The plunder rate is defined as the actual cost above the current job salary that a competitor would have to pay in order to plunder your talent from you. Understanding your “plunder rate” can be a good indication whether your departing talent is telling the truth about their reasons for leaving.

If your competitors are having to increase pay by 25% to attract your talent to join them then your plunder rate reveals that your talent very content and difficult to dislodge.

However, if your talent is prepared to be plundered for an increase that’s less than 10% of salary then one can assume that the reason “Ain’t for the money, mate!”.

At a time when far sighted businesses are looking for top talent to ride out a financial downturn any reasons for a low plunder rate in our business needs to be investigated and changed.

The reasons, other than money, for a low plunder rate could include discontent with career prospects, management decisions, lack of personal development or a host of other reasons.

In any event there is a need to implement some changes in management style before the very best talent is working for the competition.


Financial services firms “At risk”

Why is it that only 18% of financial services firms are able to describe themselves as very successful at retaining talent?

This should worry firms who fear that their key executives will be easy prey for competitors with the need to maintain sales during s financial downturn.

Throwing money at the problem is recognised as a blunt tool for recruitment and retention that can too easily be beaten by competitors eager to lure talent away. Few firms are confident that they are genuinely engaging and motivating their talented executives.

No comments