After years of staying in one place due to a weak economy, employees are starting to get antsy.
A weak labor market associated with the economic downturn may have held down turnover rates in many organizations, but things may now be changing. A recent roundtable discussion at the NeuGroup’s Global Cash & Banking Group looked at the ways member companies are retaining top talent and how they are fostering individual growth and development.
One of the key takeaways of the session was the concept of “removing square pegs from round holes.” Members discussed ranking employees based on their potential and assessing the relationship between what employees is doing and what they should be doing. Not being afraid to move people around is both a strategic move for the company and a step toward employees feeling like they are appreciated and have a strong future with a solid plan for growth. One member’s supervisors assess all staff based on education, most recent two external and two internal jobs, potential next job and ultimate potential. When this comes back, it is discussed with the team. While not easy, it can be enlightening and can ensure that supervisors and staff are on the same page.
Another strategy was to stay internal; the idea being that institutional knowledge is still very valuable. At one member firm, a privately held construction company, the treasury team aims to hire internal candidates because they believe it’s easier to teach treasury to someone who already knows the company’s way of doing things. It’s been found to be easier than teaching the specifics of the company to someone who already has just the treasury experience.
Another member said her company’s treasury group has people who have been with the company for more than 15 years, and who will be prepared to move up and fill the roles of senior employees who are retiring soon. Younger employees hoping for fast advancement don’t have the depth of knowledge that only comes from experience. However, there is a challenge: several members noted that many of these same young employees, just when they are starting to gain the experience needed to be more valuable, are being recruited away for better titles and salaries. In some cases this is due to increased expectations inspired by Silicon Valley compensation packages.
Speaking of compensation
The group discussed compensation as being one of the most common reasons for people leaving. Members discussed ways to combat this challenge, with one member describing how they will sometimes pay new hires above-market just to compete with local companies in the same applicant pool. However, after the initial hire is made, she described how the compensation trajectory is altered to be more in line with market rates. So, they are overpaid to join and then slow to get the next salary increase. Salary bands vary from company to company and some members expressed a real challenge in getting high caliber talent within particular salary ranges. Some organizations take the stance that it is “an honor and a privilege” for employees to have the opportunity to work for them, and this mentality often times leads to further challenges when high caliber employees want to grow and advance faster than the corporate timeline might allow.
Sometimes there’s nothing to be done about this. People can’t always be promoted or given a raise, but there are other means of keeping employees engaged and happy. It’s important to figure out what your staff values and allow them to pursue that. Things like holding meetings outside or off campus, allowing for flexible schedules and opportunities to volunteer or undertake new projects can make a big difference.
In the end, if an employee feels valued, they are more likely to produce better work and stick around. Even the hokiest of team-building exercises can increase morale. Not everyone is in a position of, say, an entertainment company that can treat employees to a day at a resort, studio or theme park, but nonetheless, some of their more creative activities that employees like, including volunteer days, golf outings, happy hours, even karaoke, can have an impact. One member also mentioned seminars that help people learn about their personality “colors” in Meyers-Briggs fashion, thus both identifying each person’s strengths and demonstrating how each is valuable to the team. These types of special programs can positively contribute to employee morale and camaraderie.
As the labor market begins to unthaw, members are at greater risk of losing their high potential employees to other organizations. A robust talent management program is critical to proactively identify and retain these high performers. It’s not always just about the money; often there are a variety of non-monetary strategies that can be utilized to keep top talent engaged, including flexible work schedules, rotational programs and high-profile special assignments.