By Geri Westphal
In these days of lean treasuries doing more with less, managing the talents at hand is more critical than ever.
How can you make sure, to borrow a con cept from Benjamin Franklin, the sundials in your employ are in the sun and not the shade? This is a good question when it comes to talent management, which is al ways a high-priority topic for treasurers. At several recent NeuGroup peer group meetings, managing talent in the age of lean treasury was part of several discus sions. The upshot is that treasurers are still challenged by talent management and continually look to better understand best practices in their talent manage ment programs in order to attract, hire and retain top talent. This is consistent with findings of a recent survey by Towers Watson, which revealed that 54 percent of the companies surveyed reported problems attracting critical-skill workers, while 37 percent reported difficulty hiring top-performing employees. But the good news in the survey is that hiring freezes put in place during the economic reces sion are thawing, which adds to treasur ers’ arsenals when it comes to keeping top workers, many of whom have gone without a salary increase in a few years.
And as these compensation structures begin to unthaw—and the need for glob al treasury expertise increases—treasur ers may soon see the “perfect storm” in the area of talent management—that is, an improved economy meeting pent-up demand for a salary increases and promo tion. So retention of critical talent can be key to a company’s continued success. Executive management teams should ensure their recruitment and talent management programs properly address these key issues.
Open Communication
In sharing best practices in talent management, NeuGroup peer group members agreed that a robust talent management program must encourage open communication between employee and manager and should provide a clearly defined development path. This is so that each employee feels engaged and satis fied in the future direction of his or her ca reer. The ultimate responsibility for career development sits with the employee, but it is up to the employer to provide a solid set of tools to work with.
According to some statistics, less than 44 percent of organizations are satisfied with their career management programs, and many have identified “career pathing” as an effective tool in increasing the over all satisfaction. Defining an appropriate career path is unique to each individual depending on their aspirations, innate and learned abilities, and their level of commitment to themselves and to the organization.
No one roadmap will work for every one, but many organizations follow a formalized, annual process of employee evaluation for the primary purpose of allocating salary increases or company bonuses. A robust talent management program should take advantage of this annual review process and incorporate feedback and development recommen dations to assist the employee in defin ing an appropriate career path for them. Senior managers should discuss career goals and effectively communicate ways the employee can work to meet those goals. Open and honest feedback is critical for the success of an organization’s talent management program.
Here are some ideas gleaned from recent NeuGroup meetings:
Career Pathing. Career pathing is a best practice tool that just about every talent management program should include. According to the Corporate Executive Board, career pathing is a pro cess that includes the full talent manage ment cycle from attraction to retention. Performance management, employee development and succession planning are steps along the talent management path that can significantly improve employee performance and overall job satisfaction. By aligning employee inter ests and strengths, employers allow the employees to develop themselves in a meaningful way, which can improve em ployee performance significantly.
Not everyone has the same career aspirations and a successful talent manage ment program should allow for career development of both specialists and generalists. One member of The NeuGroup’s Treasurers Group of Thirty-2 (T30-2) de scribed how his team utilizes a categorization process to best fill job openings. By understanding an employee’s strengths and weaknesses, this member is able to best define a career track that includes analyst, functional specialist, functional generalist and business generalist.
Job rotation. Job rotation is another best-practice tool for talent management and can be a popular way for treasurers to “strengthen the bench,” while at the same time allowing staff to learn new things.
According to best practice, length of rotational programs varies from six months to three years, depending on individual organization’s needs. Job rota tion is used by many of the members and most have found it to be an effective way to develop the skills of their top perform ers. Rotations may be just within treasury, or, depending on the skills and career aspirations of the individual, they could include corporate finance or other func tional groups within the company. But job rotation may not be for everyone. Those employees in very technical positions are not usually considered to be part of an organization’s rotational process.
For many NeuGroup peer group members, rotational programs are either by invitation or by application, with membership reserved for the “high potential” employees. These are defined as someone capable of rising to, and succeeding at, a more senior critical role. Many organizations utilize some form of the 9-box grid to assess employee potential. The basic
9-box grid shows a sliding scale of performance and potential to help identify employee strengths and development needs. Members agreed this tool is basic to the general talent review process and helps to form the broader discussion of employee development and talent management.
Mentor Programs. Many NeuGroup peer group members described mentoring as another effective tool within the overall talent management program. In most mentor programs, the employee takes primary responsibility for the suc cess of their individual mentoring relationship. Individual roles are carefully outlined for both mentor and mentee and the mentoring timeline usually lasts six months to one year. The mentee completes a strategy document and identi fies developmental needs and interests so that the mentor/mentee relationship can be as effective as possible. The men- tee is tasked with scheduling face-to-face meetings and completing a goal setting worksheet.
noT AlwAyS ABouT The Money
It may be surprising to learn that retain ing top talent isn’t always just about the money. A recent study done by PDI Ninth House showed only 10 percent of work ing professionals say that traditional compensation and career advancement opportunities are critical aspects of their job. More often, these profession als were interested in the “softer side” of talent management and had greater interest in obtaining non-monetary incentives as part of their overall compensation package.
The peer groups discussed popular non-monetary incentives used within their organizations to help boost employ ee satisfaction. Some of the most popular offerings include a flex-work schedule, telecommuting, executive education programs, company sponsored treasury certification reimbursement, company discounts, spontaneous celebrations, per sonal thank-you’s, and formal recognition awards. These non-monetary perks were seen as an important complement to the organization’s overall talent manage ment program and were highly valued in their effectiveness to boost or increase employee satisfaction. Here are a few non-monetary ideas gleaned from NeuGroup peer group members:
1. Flexible work schedule. Many of today’s working adults with families are looking for better balance as they be come busier with family commitments. Allowing individuals to work a modified schedule can significantly increase their overall job satisfaction.
2. Telecommuting. This incentive ad dresses the issue of long commute times and as mentioned above, busy family schedules. Allowing those with long com mutes to work from home would likely re duce stress and increase job satisfaction.
3. Challenging work. The notion of “challenging work” often is overlooked by managements worried about getting the job done on time. Of course everyone understands there is always a part of the job that is mundane or routine but allow ing employees to periodically engage in the big, high profile projects can give that extra boost to morale.
4. Fitness program membership. This incentive sends a message that lets employees know you care about their overall health and well being.
5. Executive education program or company sponsored treasury certifications. These programs are less structured than the rotational program and are usu ally dealt with on a case-by-case basis. Their purpose is to allow the employee to continue their professional development by reimbursing them for fees associated with certified programs such as the CPA, CTP and others.
PerilS oF wAiTinG
Don’t wait for the results of the annual HR employee satisfaction survey to understand employee sentiment. By then, it may be too late. Stay in touch with employees and watch for signs of dis engagement, which may include an in crease in employee complaints, increased absenteeism, productivity declines or increased conflict within and between work groups.
If you recognize one or more of these signs, take immediate action to under stand the situation. Re-energizing an employee and breathing new life into a work group starts at the top and employees look to their leaders for motivation and encouragement; attitudes and emotions can be contagious. If they sense an undercurrent of discontent, they may shift their emotions in this direction and their allegiance to a new company.