People Management
Becoming a Lightning Rod for Talent
Attracting and retaining people is a critical success factor for any size business – but the smaller you are the more damage the loss of a good team member or failure to attract good team players can do.
Ron Baker explores the issues facing the management of talent in his white paper ‘Human Capital (not Cattle)’ and what to consider in attracting andretaining good people. In his view, critical to the success of any firm is its ability tounderstand the following:
People – are they assets, resources, costs or investors? Do your own litmus test and determine what your employee is to your firm. Ron explodes the myths of what people think?.’people are this firm’s greatest asset’ is now replaced with ‘people are this firm’s greatest investor’ – their knowledge and resource are the means of production for your business. If your teammembers decide not to invest or stay invested in your business then you do not have enough critical human capital.
Good Versus Great – does your organisation attract good people and turn them into great people, or does it attract good people and turn them into average – or worse – poor performers. As an investor your people expect a return on their investment – salary is perceived as a dividend, but how are you dealing with the capital growth they expect? If they feel like they are static or worse going backwards in their capital value (skills level and opportunities for personal growth) but still receiving a dividend then they will hang in there until they find a better dividend (salary). And there are certainly plenty of competitors willing to offer better salaries.
Loyalty Given or Demanded – Ron suggests that ‘Loyalty is not dead in the business world, but a reason to be loyal may be fading’. It is easier for human capital to move on – certainly 20 years ago this wasn’t the case. But this is actually positive from society’s point of view. No longer do people have to suffer a job – they have choices and opportunities to ensure they are happy and engaged at work. Is your business designed to encourage people to be loyal or is it assumed that a salary pays for labour and loyalty?
In the end, there’s really only one test you need to apply to your business. You might call it the reality test - Ron Baker refers to it as the one-dimensional test – ‘Would you want your son or daughter to work in your business?’ Your challenge is to make this assessment objectively. One of the ways you can really discover the ‘vibe’ of your team and determine if you have the right environment to attract and retain talent is to conduct a Team Advisory Board. This process allows you to tap into the opinions of your team – if you would like to learn more about how to run this type of event give us a call to discuss.
