“It is not how much you do, but how much love you put in the doing.â€
Mother Teresa
The topic of engaging and retaining talent seems to be even hotter.Â
By now you have purchased and read the best selling book by my colleague and friend Beverly Kaye (Love em or lose em)Â and know all the strategies for keeping your best talent.
However, a recent study by ClearRock, an executive coaching firm located in Boston found that holding onto high performing talent is challenging–whether you love em or not.
Their recent survey of 94 worldwide organizations suggested that almost one-third reported an increase in high potential talent leaving the organization. As a result 56% of the organizations instituted some specific retention strategy to help onto the key talent of the future.
These findings were consistent across industries with the following the most difficult to retain top talent:
- Operations/Production
- Computer
- Sales/Marketing
- Customer Service
ClearRock’s study also highlighted the ways organizations are tying to hold onto their best and brightest:
- Improving selection 63%
- Improved Training 61%
- Coaching 54%
- Onboarding/Better Orientation 51%
- Mentoring 53%
- Flexible Work Schedules 42%
- Retention Bonuses 27%
- Health Insurance 20%
In today’s globally competitive climate, turnover is important and losing your best is a critical issue both from a financial and productivity perspective. Latest estimates have nearly seven out of ten employers noting the cost (of recruitment, training, severance and productivity) of replacing a bad hire at two to three times an employee’s annual salary ((Right Management. “Lower Employee Morale & Decreased Productivity Are Biggest Consequences of Bad Hires & Promotions.†Press release www.corporate-ir.net, April 11, 2006.)).
In a recent ASTD International conference presentation by Booz Allen Hamilton identifying the top organizational objectives for executive development, it was very clear that the main goal was to keep the best of the best. Their study indicated the top reasons (percent responding to High or Very High Degree):
- Engage and retain individuals with high potential 79%
- Improve general strength/pipeline 74%
- Succession planning for specific positions 66%
- Increase ability to translate organizational strategy 60%
- Increase ability to meet changing market needs 60%
- Foster a “talent magnet” mindset among executives.
It still pays to be nice though….Our own research suggests that leaders who are rated low on management practices create a psychologically disengaging culture ((Nowack, K. (2006). Emotional intelligence: Leaders Make a Difference. HR Trends, 17, 40-42)). In our study, poor leadership resulted in statistically significantly lower job satisfaction, increased perceptions of work/life stress and increased likelihood of leaving the organization within the next 12 moinths.
In today’s free market, talent can and do go when and where they want. But treating them better just might delay their departure a bit longer….Be well…
[tags] envisia learning, retention strategies, turnover, coaching, mentoring, leadership, talent management, kenneth nowack, ken nowack, nowack[/tags]
Ken Nowack
Kenneth Nowack, Ph.D. is a licensed psychologist (PSY13758) and President & Chief Research Officer/Co-Founder of Envisia Learning, is a member of the Consortium for Research on Emotional Intelligence in Organizations. Ken also serves as the Associate Editor of Consulting Psychology Journal: Practice and Research. His recent book Clueless: Coaching People Who Just Don’t Get It is available for free for a limited time by signing up for free blog updates (Learn more at our website)
I like your article. We have observed a strong onboard process will support top performers and accelerate their transition into the company as a Top Performer. One of our client’s employees engineers that have recently graduated from college. The on board process and mentoring program have strong appeal to these new graduates. The mentoring program is a two year process. The new employee is placed in a department for three months and is then moved to a new department every three months. During the three month stay in any department the supervisor and other Top Performers work closely with the new hire.
Congratulations! This post was selected as one of the five best business blog posts of the week in my Three Star Leadership Midweek Review of the Business Blogs.
http://blog.threestarleadership.com/2008/08/27/82708-a-midweek-look-at-the-business-blogs.aspx
Wally Bock