01:56
Faizan
Most leaders recognise that people are the key to business success. In fact, research by the Hay Group has shown that engaging and enabling employees boosts performance by 15-30%. So that makes leaders even more concerned about how they retain their most talented employees now that there is hope that the economy is recovering.
A recent report by the Chartered Management Institute showed that in the majority of cases employee morale has worsened over the last 6 months and job insecurity is at record levels with 44% of managers feeling insecure or very insecure in their current jobs. As the economy improves and more jobs become available, there is the risk that talented but disillusioned employees will move to a new organisation.
Think about how much it costs you when you lose an employee. There are the costs of lost business performance, reduced customer satisfaction, costs of recruitment, and the cost of developing new employees to the level of performance of their predecessors. Typically, the total cost of losing an employee can range from one to five times their annual salary.
Retention and management of talent is more important than ever. The key to retaining talented individuals is to help them manage their careers in a way that develops their skills, realises their full potential and satisfies their aspirations.
And it is those last three words - satisfies their aspirations - that often get forgotten. Leaders sometimes focus so much on what the high potential employee needs to do to meet the business's needs that they lose sight of what they need to do to meet the employee's needs. And this is crucial if you are going to be effective in engaging and managing the talent within your organisation.
Let's face it, if you don't help your high potential employees manage their careers within your organisation, they will manage their own careers by moving to a different one.
Many managers and leaders worry that asking about career intentions may unsettle staff or even make them leave. But the evidence shows that discussing and attending to career issues makes staff more committed to the organisation and more productive.
Key things to remember are:
1) Don't assume you know your employees' career aspirations unless you have explicitly discussed them. A number of leaders have come unstuck thinking that their high potential employee will be delighted with a promotion only to discover that they don't want the additional responsibility or their personal life does not lend itself to a relocation.
A recent report by the Chartered Management Institute showed that in the majority of cases employee morale has worsened over the last 6 months and job insecurity is at record levels with 44% of managers feeling insecure or very insecure in their current jobs. As the economy improves and more jobs become available, there is the risk that talented but disillusioned employees will move to a new organisation.
Think about how much it costs you when you lose an employee. There are the costs of lost business performance, reduced customer satisfaction, costs of recruitment, and the cost of developing new employees to the level of performance of their predecessors. Typically, the total cost of losing an employee can range from one to five times their annual salary.
Retention and management of talent is more important than ever. The key to retaining talented individuals is to help them manage their careers in a way that develops their skills, realises their full potential and satisfies their aspirations.
And it is those last three words - satisfies their aspirations - that often get forgotten. Leaders sometimes focus so much on what the high potential employee needs to do to meet the business's needs that they lose sight of what they need to do to meet the employee's needs. And this is crucial if you are going to be effective in engaging and managing the talent within your organisation.
Let's face it, if you don't help your high potential employees manage their careers within your organisation, they will manage their own careers by moving to a different one.
Many managers and leaders worry that asking about career intentions may unsettle staff or even make them leave. But the evidence shows that discussing and attending to career issues makes staff more committed to the organisation and more productive.
Key things to remember are:
1) Don't assume you know your employees' career aspirations unless you have explicitly discussed them. A number of leaders have come unstuck thinking that their high potential employee will be delighted with a promotion only to discover that they don't want the additional responsibility or their personal life does not lend itself to a relocation.
Posted in: business
