We would all like to see the U.S. economy move out of recession and into growth as soon as possible. Our administration and economic pundits spout conflicting messages as to whether the economy is on the upswing, stagnant, or possibly facing another slowdown. A few labor statistics seem to indicate we are slowly creeping out of the recession. Crawling out of the recession, our clients are starting to feel the pinch of talent scarcity in key areas. Whatever the case, corporate leaders need to be prepared for what we call the wrath of economic prosperity: the fight for talent.
Over the past three years, employees have remained faithful and loyal to the company and voluntary turnover has been at an all-time low. Some would say that this is due to outstanding corporate leadership. Balderdash! The reality is that your best and brightest are secretly plotting to make their break as soon as the economic sun rises. How do we know this? They sent us their resumes last week!
Six months ago, employees were deathly afraid of sending out a resume for fear of exposure and termination. Today, employees are starting to see the sun rise and are getting bold. Social media makes it even easier. Employees can let thousands of your competitors know of their talents in one or two clicks. What does this mean? The best and brightest can find another job in a matter of days. They'll be gone before you know it!
Organizations need to take action now or lose valuable talent. Let's not forget, no talent translates to no company. Two simple steps can help combat the impending talent war.
The first step is identifying your high performers. Start with your high potentials since they are the future of your company and the first to leave when opportunities arise. I know what you're thinking: this guy is going to say, "Give them a raise and they'll stay.” Sorry, that's way too easy and compensation is generally not the primary reason high potential employees leave. The solution boils down to a cultural leadership shift in your organization.
The real question is, what is leadership doing to let high performers know, day in and day out, that they're valued and considered the future of the organization? It requires more than the "I love you, man" speech. It shows up in actions, not words. What are you doing to empower your high potential employees to put their ideas into action? While not easy, organizations must empower the high potentials to implement their ideas. Organizations will need to step outside the box and consider new ideas that aren't comfortable or “normal.”
Empowerment starts with listening to your employee’s ideas and taking time to brainstorm new and sometimes crazy concepts with them. During brainstorming, let your staff do most of the talking, ask questions, and do not interrupt. After brainstorming with them, give your staff time to implement or prototype their ideas. After the prototype, the best and brightest will decide whether the concept is really a good or bad idea. For the really good ideas, let your staff take credit and present their ideas to upper management. Recognize and accept that there will be failures along with successes.
I realize this takes time and your team is busy. Make the time! Think about the alternative—the best and brightest leave and you're stuck holding the bag.
More good news: Complacent middle management will become frustrated with all the new ideas floating around and may even request early retirement packages. This allows space for your high potentials to grow.
The second step is recruiting your competitors’ high performers to acquire experience and best practices. This is how you can benefit from the fury of social media as it creates a complete shift in the corporate recruiting process. Big, expensive search firms hired under the cloak of secrecy are no longer required.
Put some of your best and brightest on their own recruiting searches. Offer them referral bonuses. Nothing is better for retention than allowing a friend to refer a friend, particularly if they are high potentials. As they say, "birds of a feather..."
Neither of these steps are easy. For a large organization, the first step is daunting and requires significant effort to create a cultural shift. In this case, identify small pockets of the organization where high potential employees are critical and start there.
For a small organization, the second step is difficult because there are a limited number of people to spread the word. However, social media allows the smallest of the small to greatly extend their reach.
Start implementing both steps today. Every day you wait is a lost battle in the war for talent.
