In today’s world of ever-increasing competition across a range of market sectors, how might companies maintain their competitive edge? Is it the products, technology, marketing/brand/strategy, service, pricing or the employees that contributes most to the organisation’s success? The answer is likely to be a mixture of all the above, but it’s widely acknowledged that a company’s staff remain its most valuable asset.
Aside from the company logo, product or service, it’s the people who underpin everything, in turn providing an extremely influential and powerful addition to the brand. Indeed, some would say a company’s people are the brand.
Looking inside your organisation, ask yourself a few questions. Do you have talented people on board? Do you have a sufficient talent pool from which to dip, or a ‘pipeline’ feeding talented individuals to the organisation? Do you have a problem either attracting or retaining talented people? Is there a Talent Management scheme or strategy in place at your company?
Everyone has some form of talent. Talent Management programmes or schemes need not just be aimed at ‘Talent for the Top’, grooming high flyers and senior management. In truth, it can be a hugely beneficial tool for maximising and facilitating individuals’ potential at all levels of the business. In short, Talent Management – otherwise referred to as ‘People Excellence’ – is something that should involve everyone who works for your organisation every step of the way.
Sourcing quality candidates
According to the latest Recruitment Confidence Index published by the Cranfield School of Management, the labour market is tightening to its highest point in six years, with eight-in-ten organisations (82%, in fact) anticipating trouble ahead in terms of being able to find quality candidates to fill vacancies.
Speaking about the situation, Dr Emma Parry states: “As the talent war worsens, so employers are responding by planning to spend more on recruitment in a bid to attract suitable candidates for their companies. Nearly four-in-ten (39%) respondents to our survey expect to increase their recruitment expenditure over the next six months.”
Dr Parry has emphasised the need for employers to be more strategic about Talent Management rather than just simply spending more money on recruitment. Organisations need to look at their employer brand and differentiate themselves from their competitors in some way.
“Employers need to take a structured approach to staff development and retention, enabling them to grow their own talent and have a competitive edge,” concludes Dr Parry.
How, then, should you go about identifying and tapping into the resource pool that already lies within your company? Of course, there are many consultancies to whom you might outsource this process. However, in conjunction with your Human Resources Department or the general management team, you probably have access to annual or bi-annual reviews, regular business updates, , general individual and team meetings and out-of-hours events. All are opportunities that may be used to tap into an individual’s knowledge, experience and aspirations.
How would your business look if the previous appointment of all your internal promotions were subsequently filled by another internal promotion? Aside from the obvious financial benefits – over external recruiting, etc – what a powerful message and marketing opportunity this would provide?
A positive employee brand would increase the number of high achievers aligned to the culture. A company that values and develops its members of staff and promotes People Excellence in the pursuit of both collective and individual success can only increase its competitive advantage.
Substance behind the rhetoric
How often do you hear the phrase: “Our people are our greatest asset”? A fantastic and impressive statement, but at times this can have little or no real substance behind it. On occasion, it’s just hollow rhetoric. Typically, talent as an asset is not something that’s shown on a balance sheet. However, those readers who are disciples of Knowledge Management – or whose organisations include Intellectual Capital Reports – will understand the real value of talent on the balance sheets.
Individuals rarely leave a company purely for more money. This was highlighted in the Chartered Institute of Personnel and Development’s annual Recruitment, Retention and Turnover Report for 2006, where level of pay ranked third in the list of key reasons for employee turnover. The most important reason was a change of career. People leave for a variety of reasons, including lack of development and/or career opportunities, hours worked, little support from line managers (who may be inexperienced, ineffective or both) or lack of recognition and acknowledgement for a job well done.
In the aforementioned Recruitment Confidence Index, it was found that less than half of UK businesses implement Talent Management programmes. While 60% of those organisations surveyed said that Talent Management – the strategies and practices needed to define, identify, develop, attract and retain those deemed to have skills valuable to an organisation – is essential to a business’ bottom line, only just over 40% strategically manage their ‘star pupils’.
Retention, not replacement
According to a 2005 McKinsey survey of 9,345 executives, the supply of talented workers was rated the most significant management concern, with the cost of these people seen as being most likely to constrain company growth.
That being the case, retaining your people talent rather than replacing them would seem to be the obvious choice. Develop and look after your own people and they, in turn, will look after the business. If you don’t adopt that philosophy, do not be surprised if they leave or are poached by your competitors.
Facilitate employee needs and aspirations where possible. Nurture and mentor talent. Create a culture of opportunity for all, a culture wherein leaders are neither afraid nor threatened by the thought of someone becoming better than them. Make your people your priority.
Ultimately, this will be the culture which is unique to you, your people and your business – one that cannot be copied, because it is your own creation. As a famous politician once said: “You need only three things in life to be successful. One is to surround yourself with good people. Forget about two and three!”
