Talent Management – A headache for employers
Engaging talent and reducing turnover has always been a challenge for companies. The old theory was that higher salary attracts and retains workforce. But then the question started looming in minds of many human resource managers that then why do people join start-ups with a pay cut? Top reasons for mid-level managers quitting jobs are summarized as “LOUD” – Lack of professionalism displayed by supervisors, Overburdened employees, feeling of Unappreciated and too much Deadweight in upper management.
Recent surveys revealed that project manager’s lack of professionalism instigates people to quit. Moreover, experts now believe that most lower to middle level management employees leave jobs because they don’t feel valued enough. Restless employees quit because they are pessimistic about their future in the company. They realize that their chance of growth within the company is limited.
In other companies, supervisors find it easier to manage top-performing employees than improving poor performers. They start relying on top performing employees rather than less productive ones. As a result, workload for top-performing employees increases exponentially. If amount of workload is appropriately rewarded with bonus, then it is not a big problem. In many companies, this is not the case. These overburdened employees start feeling that they are being penalized for being productive. They feel cheated in the name of “teamwork” – their less productive counterparts survive without delivering enough.
The worst reason why employees quit is attributed to too much deadweight on upper management. Oops! That’s really sad, because it is comprehensible that supervisors try to change others. But how can they change themselves? While subordinates toil, supervisors don’t do anything. It is not difficult to guess who gets rewarded though.
Any solution to LOUD?
Employers need to understand that each employee is unique. They should value each of them and provide enough incentive for them to keep them in the company. It is not necessary that they always have to reward them by cash, but other forms, depending on the situation. If an employee and a mother want more flexible hours, it is advisable to give her that. If long commute is proving economic hardship for someone, allow the person to work-from- home. This way they can build an emotional connection with employees and engage them in a long-lasting relationship with the company.
Moreover, employees want to become a part of management, a little nudge from the supervisors in taking their decisions seriously and giving them a chance to become a part of the management will go a long way. Deadweight might be difficult to remove, but at least, supervisors can share their rewards with the employees who helped them. Well. Not necessarily with cash, but the least they can do is acknowledging their contributions. Employees really hate when the employer underestimates their intelligence and tries to act smart.
Well, the solution, in most cases is in the hands of the employers, but most of the time, they try to shrug off. It’s time to wake up! Be genuine in trying to connect with employees. They will respond.
ephemeralthinking.com acknowledges that many of the views and opinions are based on studies published by the Harvard Business Review, Watson Wyatt Worldwide and Mercer Human Resource Consulting. For more information, please refer to:
http://www.watsonwyatt.com/topics/htrender.asp?ID=16371
http://www.mercer.com/home.htm
Edward E. Lawler III, “Why are we losing all our good people?” Harvard Business Review, June 2008.
Other related links:
http://www.taleo.com/talent-management-blog.php
Economic recovery is still a long way!
So it’s official now that the economy is yet to recover. As many economists were speculating that the unemployment rate will be around 9.9 percent for October 2009, the Bureau of Labor Statistics(BLS) today confirmed that it was a double-digit 10.2 percent, the highest since April 1983. Earlier this week, the market was beaming with the news that the economy has grown at an annual rate of 3.5 percent in the third quarter after declining for past several months. The rosy picture was also painted by the Institute for Supply Management reports, claiming that economic activity expanded for both manufacturing and also non-manufacturing sectors in October.
So now we have a positive GDP growth and high unemployment. The GDP growth was probably fueled by “cash for clunkers” and better trade situation. Since retail sales (excluding motor vehicles and parts dealers) was around $250 billion in September, the picture changes if we consider sales for motor vehicles and parts dealers, which spiked in July. So, this GDP growth is probably a one-time phenomenon and not going to prevail. In order to have a sustain growth, consumer spending should rise. With the holiday season round the corner, but with so high unemployment situation, the sales is not going to get a boost in this season. Rise in consumer sentiments and more job creations are important right now. It seems that it will be a while before we see any of these improving.
