Talent Management and the Bottom Line

For years enlightened business leaders have recognized the obvious: Hire great people, treat them well, and your business will flourish. For those leaders who haven’t recognized this yet, there may be a new motivation to get on the bandwagon.

Moody’s Corporation, the bond rating service, has started recognizing “a direct connection between financial performance and success in recruiting and retention.” Knowing this, they are now starting to use talent management as a factor in the process of rating companies. In addition, Watson Wyatt has developed a “human capital index” and has found that good people practices can increase a company’s value by as much as 30%.

What does this mean to you? Picture the CEO of a publicly traded company explaining what he plans to do to improve the retention of employees at a shareholder meeting, right after he explains his plans to grow revenue. Suddenly those employee relations activities that are often delegated to the lowest levels of the organization are now in the limelight.

This doesn’t mean that my humorous attempt to improve employee morale by including a wet bar, hot tub, and masseuse in my department budget proposal years ago is any more likely to get approved now than it was then. However, there should be more scrutiny of those items that truly do impact the selection and retention of a company’s most valuable asset.

HRM Innovations, LLC is available to help with any questions you may have on HR or Management related topics and can be contacted at: Kevin@HRMInnovationsllc.com or 269-615-4821.

How Do You Get Good Employees to Stay?

In a completely scientific non-random sampling, 2 of my 3 sisters have gotten new jobs in the past two weeks. In both cases, they were frustrated with their roles at their employers and were able to move on to jobs/environments that were a better fit.

Many organizations had to cut back during the recession leaving employees with more work and fewer resources. That makes the timing ripe for turnover in those organizations now that the economy is improving.

Some turnover is inevitable and there are times when good people leave an organization for reasons beyond your control. Those are the times to break out the cake and balloons and wish them well with a nice send off. But what about that star employee that you should have been able to keep? Wouldn’t you rather know what he or she has to say about the organization and what you could do to keep him around?

There’s a not so new concept called a “stay interview” that is a great tool to use. The idea is simple; you interview your good employees and ask what it would take to get them to stay, before they give their notice. This is also a great time to let them know they are appreciated and that you value the work that they do.

As our economy continues to pick back up, we’ll have more opportunities for our organizations to grow, but that also means more opportunities for our employees to leave. That’s why this is an ideal time to ask them how they view their future with us.

Curious about my third sister? She was recently promoted. I didn’t ask if her boss did a “stay interview”, but it’s entirely possible. In any case, she’s going to stay.