People and talent 

Talent management is a key item on the agenda of senior executives, with good reason.  Whilst executives are facing unprecedented cost challenges, they also must meet stiff targets for revenue growth in key areas, so they can’t afford to let up on capability development and investment in future talent.  They know that talent is key to competitive advantage: they have to get and keep the best people in their industry to survive.

Managing and retaining the right people within the organization:

Who would have thought that companies would be so concerned about managing and retaining people when a global downturn is underway?

 

The fact is that they cannot afford to lose good people. Their major challenges, as our survey shows, are cost efficiencies, improving cash management and finding new avenues for growth. Each of these hinges on identifying new people capabilities to deliver on revised business models.

 

Clearly, lessons have been learned from past recessions. Without high-potential future leaders and individuals with business critical skills, you simply cannot drive through important initiatives that could restore or improve your company's economic status.

 

Our survey also highlights incentives continually used as a retention tool. While 43 percent of our survey respondents claim that motivating key people is their top priority, 12 percent prioritise pay and reward tools to tempt them to stay – this reflects the confusion in the marketplace about how best to motivate and retain staff.

 

While long-term incentives have some impact on retention, short-term incentives to retain have limited success.  Money is often a short-term sweetener that does not translate into greater motivation, contribution or loyalty - it is often used to improve the person’s negotiation position for the next job!

 

While promotion plays a role in retention because it can indicate future-oriented career progression, longer-term activities such as learning and  development, coaching from respected leaders and challenging roles are the greatest motivators. Whilst they may be harder to create, a combination of these elements will help to keep companies afloat in difficult times.

 

In return, people want recognition for the work they do, not just an invisible increase in take-home pay. It is puzzling then that just five percent  of our survey respondents consider non-financial rewards as important.

 

My own experience of tackling motivation and retention issues has shown the difference that non-financial rewards can make. They may rank last as a priority for managing and retaining the right people, but on my list, they would be a definite second after talent management and development.

Our view is that companies don’t necessarily have to spend more on talent and capability development to achieve value. They need to reallocate the spend they have towards those with critical skills, as well as potential future leaders. They can rethink their portfolio of activity to build capability in practical ways that involve business area leads and engage those with the ‘must have’ skills. Then those responsible for capability development can show real value to the business and build the case for future investment as outcomes are demonstrated.

 

We help clients achieve value from their talent investment by designing and implementing approaches, programs and systems to choose the right people, tap their potential, and support and guide them through their development. We focus on connecting skill and behavior requirements to business strategy, on leveraging people through the right structures, processes and technologies. We work to translate knowledge, collaboration and creativity into high performance and value, as defined by the business.

 

Clients use our services to:

 

  • identify key insights about their talent base, both internal and external
  • create competency and career frameworks to recruit and retain key capabilities 
  • rethink learning and development operating models, offering and mix of channels 
  • develop new behaviors, roles and capabilities
  • implement human capital management systems.

Report on jobs

Permanent placements rise for first time in four months.  Read more (press release).

 

Talent Management