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Resources

Create a Talent Retention Environment™
 August 2009
Jennifer Churchill, M.B.A., Ph.D. 

Resources

The Talent Advantage:  How to Attract and Retain the Best and the Brightest by Alan Weiss and Nancy MacKay

 

"Leaders in the Crisis: McKinsey Global Survey Results", August 2009. Source: Organization Practice; http://www.mckinseyquarterly.com

 
"We can't solve problems by using the same kind of thinking we used when we created them"
Albert Einstein
 
The Competition for Talent in the Face of Rising Unemployment
Although it is reported daily that unemployment is still rising, economists and sophisticated leaders caution organizations to not wait until the economy rebounds to adjust their staffing and talent mapping for their future strategies.  The talent currently employed during this volatile economic time may not be the talent organizations need in the upturn and waiting to identify who these key players will be for rebound success would put organizations at a disadvantage against their competitors. This notion is supported by a recent survey where it was reported that middle managers are less committed to staying with their companies in two years due to low satisfaction with their performance and low enthusiasm for their work at their current company (McKinsey Quarterly, August 2009).  While companies are still addressing redundancies, they need to message to their employees that they are committed to being a successful organization and are positioning themselves for growth.  This can appear to be a conflicting message to their organization.  This perceived inconsistency can cause the current employees to feel disengaged, mistrustful, and wary of their current employer and the organization's ability to be successful during these uncertain times.   Additionally, the recession is likely disguising true retention rates.   Despite the downturn, even high performers can find a more engaging culture and be recruited by other organizations for their proven performance and people who are not engaged will leave once they believe the economy has recovered.  Further evidence reports that senior managers are satisfied with their ability to create and implement strategy, but they are less satisfied with their ability to retain and attract talent and develop their leaders (McKinsey Quarterly, August 2009).  To address this dissatisfaction, leaders need to learn to create a Talent Retention Environment™, a culture that fosters individual and team commitment, growth, performance and productivity.  Further, leaders can then link their ability to create and implement strategy with their ability to develop the right talent and culture to ensure desired business performance. 
How to Create a Talent Retention Environment™
  1. Senior Leaders MUST be involved in talent assessment and development.  Do not rely solely on the expertise of Human Resources.  Senior leaders know their business and the short and long-term strategic initiatives and should match these initiatives with the required technical skills and leadership competencies needed to effectively run the business.  
  2. Conduct a gap analysis of the talent. 
    Identify the skills and leadership capabilities needed for the current and future key leader positions.  
    Assess your current leadership talent and determine what developmental needs are apparent.  Determine both short-term and long-term development needs. 
    Prepare for attrition and ensure adequate succession plans are in place. 
    Design and implement leadership development programs for current employees who have the potential to execute towards the short and long term strategies
  3. Strong Leaders attract Strong Talent.  Leaders who self-assess and develop their own leadership abilities are driven to subsequently motivate and develop their organization and its talent.  Examples of how to increase retention and attract new talent include:  
    Conduct an organizational assessment to determine the drivers and factors that promote a culture of engagement and business success
    Invest in leadership development for high potentials and current senior managers
    Create a process to integrate leaders into new roles  to accelerate and ensure success in their new positions
    Involve the board in strategic talent planning for the future.  Have a comprehensive succession plan for each key leader position in the organization
     

It is certain that change in the business world is constant and here to stay.  Leaders and managers must strategically plan what talent will ensure their company's success in an uncertain world.  Creating a Talent Retention Environment™ will provide insurance that their company will thrive despite continued change by identifying the best talent for the right roles that will meet their strategic objectives.