Arguably the foremost tool for hanging on to a company’s talent is putting in place proactive systems that allow leadership to close the gap between what they think is going on versus what is actually happening in the minds of their employees, an expert says.
Debbie Goodman-Bhyat, CEO of Jack Hammer Executive Headhunters, says often companies are lulled into a false sense of security when their core talent performs well, produces results and appears motivated and happy with the status quo.
“Just because your top performers are great at their jobs, does not mean they will want to do them for you forever,” she says. “Not recognising this reality makes your company vulnerable and opens the door for talent searchers to have the conversation with your people – the conversation you should be having instead.”
According to findings contained in the latest Jack Hammer Executive Report, a whopping 50% of respondents said they would leave their company if they did not receive a promotion within a specified period of time.
Asked how long they would be happy to stay in a role before being offered a promotion, 84% said they would expect to be offered a promotion within three years. Of these, 10% of the respondents would want a promotion within a year, and 34% within two years. Only 16% would wait four or more years.
“What this shows is that companies who spend a lot of time and money searching for the right candidate must put as much effort into retaining those individuals. The great thing about the retention part is that it costs very little, other than time and attention, and some good communication. No surveys, no ‘culture audits’. Just plain, old-fashioned conversation.
“Having no strategy in place, and getting caught up in the day-to-day demands of a job without taking a step back and assessing where you and your team are at, could find you losing your valuable resources within as short a time as two years after appointment,” says Goodman-Bhyat.
The recently-released report, entitled “Executive Talent: Get them, Keep them”, investigated the challenges faced by businesses in attracting and retaining top executives while ensuring continued transformation.
The survey was conducted for Jack Hammer by independent research consultancy EIGHTY20, and questioned hundreds of mid-to-high level executives across several categories, including remuneration, role, expectations and company culture.
Goodman-Bhyat says respondents made it clear that they want their relationship with their company to mirror the best practice in any relationship: they want openness, trust, honesty and clear communication from the organisation they work for. Stagnation at work and in the current role should be viewed as major red flags by companies, it emerged, and should be addressed as soon as such issues are identified.
“The issue here is to find a mechanism or strategy whereby problems are identified timeously, and not only after one of your leaders lets you know he is looking elsewhere. As Richard Branson rightly pointed out, foresight is important in business. You can’t wait until an employee comes to you and says he is ready to leave before you start thinking about what his goals are and what keeps him happy.”
Goodman-Bhyat says there are five ways companies can ensure that expensive talent doesn’t take flight prematurely:
* Do not over-promise;
* Align the promise with reality;
* Ensure the original vision is carried through to the role and responsibilities of the executive;
* Check back regularly; and
* Constantly communicate the future vision.
“Top talent want – at all times – to know where they stand and what they can expect from their future. They want to feel fully actualised in their environment,” says Goodman-Bhyat. “Regular appraisals and open, honest conversations about packages and promotion, as well as future career opportunities are non-negotiable.”
If left undone, top appointments may stew in silence, or even keep up chirpy appearances, wondering whether they are being paid what they are worth, whether they are being discriminated against, and whether they truly have a future with the company.
“This leaves them exposed and open to persuasion to leave your organisation for a place where they imagine their contribution will be better recognised,” she says. “And this puts your organisation at risk. Knowing that 94% of people are likely to be lured to a new company where the package is more competitive, to not place top priority on having an open an honest discussion with your key people makes little common- and even less business sense.
“Have the conversation regularly. Understanding the facts as well as the opinions and perceptions of your most valuable appointments allows you to understand what needs to be addressed. Ultimately, this old-fashioned practice is the most important tool in your retention arsenal.”
