The Towers Watson Global Talent Management and Rewards Survey, which covered a total of 1,637 companies from around the world showed that there has been a significant increase in the recruitment industry activities. Almost half of the participating companies said that the hiring activity has increase a lot in comparison to the previous year. 65% of the participants said they are having trouble finding top performers for their companies, and 54% told about their difficulties regarding retaining high-potential employees.
While it has been a while since the survey mentioned above was conducted, the numbers have been increasing since. In other words- the problem with the recruitment and management of good talent is not going anywhere. If anything, it is going to become more and more difficult for the future companies to handle the problem. However, by understanding the gravity of the situation and taking action accordingly, the problem can be controlled.
In order to tackle talent related problems, the leaders must devise a strategy for their workforce to anticipate their needs and priorities. Smart hiring and improved talent management are some of the proactive measures that can be incredibly helpful in that enterprise.
- Understanding The Corporate Tribal Culture
Dave Logan, a professor in Management and Organization, USC Marshall School of Business, did a comprehensive study on 30,000 people from 30 different organizations from around the world and learnt how the culture followed by business organizations of today is akin to a tribal culture. According to Logan, a tribe is a group of few dozen people who are so comfortable with each other that if one saw another walking down the street, they would stop and say hello.
What Logan and his team wanted to learn was why leadership is so effective in some situations, and completely powerless in others. He came to the conclusion, that what really makes a tribe powerful is its culture. The culture a certain tribe has, leads its members to adopt a certain behaviour, which in turn affects their actions.
Using the tribal culture analogy for modern companies, Logan explains how the “tribal leaders” care about their tribe, and do everything in their capacity to take their tribe to the next level. They bring the members close to each other by instilling within them a common purpose, a sense of belongingness. This works as a powerful magnet which attracts new talent, which wants to be a part of this amazing tribe.
- How Potential Surpasses All the Other Qualities
Why is that so many talented corporate leaders fail at their job, while many less-skilled show remarkable abilities? The reason is that talent may not always be the best parameter for gauging someone’s leadership skills. It is someone’s potential, their ability to adapt and take the best actions in complicated situations, that make them a terrific leader.
The author of Itâ€™s Not the How or the What but the Who, Claudio FernĂˇndez-ArĂˇoz, who is aslo the senior adviser at Egon Zehnder is one of the best people to get insight about leadership from. After all, he has spent over 30 years studying and evaluating the performance of employees. He believes that one’s potential is their most important predictor of success. As businesses today go through a lot of market fluctuations, marketing strategies, uncertain environments, and business model changes, only those leaders who are able to grow and transform themselves accordingly will be able to succeed.
A leader who is knowledgeable about their line of work and possesses high acumen may do a great job today. However, if the corporate strategy changes tomorrow, there is no telling if their performance will stay the same. Thus, the right question to ask yourself when hiring a new talent is not that whether they have the right skills today, but whether they will be able to learn new skills tomorrow if need be. The former President and CEO of Porsche, Peter Schutz, puts it aptly- â€śHire character. Train for skill.â€ť
- Importance of Non-Financial Incentives
Gone are the days when employees just cared about the monetary perks. A number of reports have concluded that talented employees of today who get a decent salary prefer benefits in terms of purpose, flexibility, and ethics more than any other kind of financial perks.
Today’s talents have learnt that money isn’t everything. What they want is a sense of satisfactory in their work, and a routine that doesn’t affect their peace of mind. While they do want to make good money, they also want to be happy with their work.
However, a lot of companies are headed in the wrong direction by increasing workload on their employees and trying to balance it with a slight increase in the pay. In order to be successful in not just hiring good talent but also retaining it, companies need to strike a healthy work-life balance. They also need to ensure the employees get a flexible working environment, where they don’t have to toil for pay checks, but rather enjoy working on something that makes them happy.
â€śThe competition to hire the best will increase in the years ahead. Companies that give extra flexibility to their employees will have the edge in this area.â€ť- Bill Gates
Hiring and retaining good talent has always been a problem and is becoming even bigger lately. Thus, in order to avoid losing their entire talented workforce, companies must take action now. Employees don’t think twice before switching jobs today, especially when they are able to entertain more than a few good options.
By ensuring that your company provides non-financial incentives, ones that bear meaning to individual employees, and offers a work-environment where the employees can work with a sense of purpose and enjoyment, you can keep your employees from going away.