Retaining Your Talented Staff
With CEOs worldwide indicating that retaining their "Talent" [staff] in 2011 was a critical success factor we felt it is important that our clients are aware of the terminology and trends in Talent Management. The phrase "Talent Management" came into use between 30 and 40 years ago when it was mainly used by Human Resource (when that term changed from Personnel) professionals also at a time of major technology changes.
The meaning of the phrase has evolved, and whilst changing, today when the term is used it includes
Succession Planning
Potential Rating
Career Planning
Talent Pooling
Talent Search
So in today’s highly competitive market for employing and retaining talented employees it is useful to understand what employees expect from their employers. Research has indicated that the top 3 reasons given why an employee leaves an organisation are:
1. "I was not appreciated"
2. "I was not developed"
3. "There was no career plan"
Being appreciated
According to research conducted by PeopleStreme in 2009, 62% of employees surveyed said their performance reviews were conducted annually, and 9% said they had never had a review. Performance reviews enable employers to give and receive feedback. It is generally considered that 6-monthly reviews are the most beneficial. Ensuring that both staff and managers retain on-going notes so that all issues that have arisen, whether positive or negative, are remembered, not just those that have recently occurred. Whilst performance management systems will not necessarily eliminate bad management practices they enable regular feedback for ongoing performance and assist an employee to feel they are appreciated. Of course, staff "fun" functions, bonuses etc can also play an important part in portraying worth and in employees feeling appreciated and valued..
Being developed
Don’t make the mistake that staff development has to be expensive. Ongoing training is both necessary and meaningful for employees and can be carried out on a daily basis… Understanding processes and culture, who does what and when are as important to an employees development as are external expensive training courses. PeopleStreme in their research found that 54% of staff had no formal development plan – perhaps not surprising as they are normally created following performance reviews. A performance management process enables managers and employees to set and agree meaningful development plans. Without a plan this process becomes ad hoc, on the run, reactive rather than proactive or worse -totally ignored.
Having a career plan
Again a career plan is better agreed as part of performance management so that an employer or manager has input and understands what an employee’s career ambitions are rather than an employee totally deciding their own career path. Many larger organisations have distinct career plans which are tied to their development plans and those of the organisation. In these organisations individuals are constantly developed and measured against their plans and this in turn addresses succession plans.
Performance Management
By having a performance management system in place (whether manual or electronically driven) enables more than one person to offer input into an employee’s performance. Having the opportunity for a manager from another department to comment on an occurrence (whether good or bad) broadens the organisation’s knowledge of the individual. Feedback given in a positive manner will always make an employee feel valued. Part of an individual’s training should be how to give and receive feedback, and knowing an employee and their personality traits can only assist an employer or manager. By and large positive reinforcement, rather than a stick process, gives better results.
It is also necessary to ensure that Managers know how to set performance objectives and how to measure them. The ability to define clear and valid measurements is critical to effective performance management.
Staff retention is a direct correlation of employee reviews, their positive training and development and career planning. It is far more valuable, and of course cost effective, for an organisation to retain good staff than to lose and replace them.
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