Picture this leader. She has lots of people wanting to leave her team, she recently lost a couple of good people to a competitor and she neglects her high-potentials. Meet the new great leader of talent!
Whilst the list above might seem like a total talent disaster, it all depends on how you look at it. Many of our traditional views on how to manage talent are out of step with a disrupted and fast-moving world. We need a fresh perspective on what ‘good and bad’ talent management looks like. Here are six aspects of talent management, that would previously have been seen as a negative, that ought to be reappraised.
1. Lots of people in your team say they’re looking for a move.
Now clearly, if your team are wanting to abandon you because you’re a nightmare to work for, then that’s not a good sign. But if you’ve created a culture where it’s ok, or even desirable for your people to express their ambition and acknowledge that they’re interested in opportunities outside the team, then good for you. The consumer research organisation Nielsen has won recognition for its “Ready to Rotate” initiative whereby all staff were encouraged to flag their interest in new roles or stretch projects. Good people are likely to move on if they’re not growing, so encouraging your people to leave to enable that growth may keep them in the company, even if they’re not in your team.
Do you make sure your team know you want them to show interest in other roles outside of the team – that it’s not a betrayal, but something you welcome?
2. You’ve lost some great people to a competitor
I’ve seen leaders dragged across hot coals for this by CEO’s. But the potential damage really depends on how you handle it. Some leaders take this defection as a personal insult and make the exit as uncomfortable as possible. LinkedIn took a different approach. They invited ex-employees, who’d gone on to great new roles, to come back and share how their career had progressed with current LinkedIn employees. They celebrated the fact that, as a result of their time at LinkedIn, they’d accelerated their career. The US healthcare company DaVita make a conscious effort to keep in touch with ex-employees, with a view to re-hiring them at some stage. In fact, around 15% of their “new hires” have worked there before. Given that many of us are likely to move roles within our sector, great leaders can turn losing talent to a competitor into a positive.
How do you react when your great people leave you? Do you make it a positive experience and keep the door open for a return?
3. You lose more talent than you keep
Running a talent review with senior leaders can be so painful. Their desire to hang onto their best talent rather than see them move to another Division is palpably obvious. I’ve heard them complaining that “it’s not quite the right time” or worse still, even talking down their team member’s ability to make them less desirable to their colleagues. It’s understandable given the way they are themselves are rewarded and recognised but also short-sighted. Leaders who proactively encourage their best employees to move across divisional lines are not only doing the company a favour, they become recognised as net exporters of talent and so will find being a magnet for future talent easier.
Are you a net exporter of talent? Shout it from the rooftops!
4. You don’t look after your team like a family
We have a tendency to value “parental leaders”. Their motives are often admirable. They want to protect their people from an uncertain world, keep them safe, not upset them and above all, retain them in role and within the team. I have worked in some very parental cultures and I’m convinced that this ‘kindness’ is damaging for our people. Being over-protective means that we prevent our people from developing their ability to use their judgement and the resourcefulness that’s essential for succeeding in a disrupted world. The pace of change means that leaders cannot possibly map out career-path certainty for their staff. By retaining them in role for so long that they weaken their ability to secure stretching employment elsewhere is surely abdicating our responsibility as leaders? Great talent leaders avoid the parenting and instead of creating a ‘family’ with themselves at the head, they work together with their people as adults. In talent terms this requires leaders to make an honest appraisal about which roles in their team may need to be refreshed within say, 12 months. It means putting career management responsibilities into the hands of the employees themselves. It means encouraging their people to become increasingly employable and attractive to the outside world and avoiding any misguided (and occasionally selfish) temptation to let them stay in role for too long.
Are you parenting your people or are you treating them as adults? Take our free diagnostic to find out.
5. You neglect your high-potentials
Ok, so not ‘neglect’ exactly, but our almost obsessive fixation on focusing on the needs and ambitions of the elite is out of touch with today’s world. The fact that 73% of high-potential programmes show no ROI hasn’t stopped them being implemented. The issues with placing our leadership bets on a favoured few are two-fold. Firstly, as a leader, you are going to struggle to identify high potential with any real accuracy. It’s not because you’re stupid, it’s just that we suffer from “rater bias” and so our assessment of who’s going to be great in the future and who isn’t, is always going to be somewhat flawed. Secondly, potential is always contextual and we have an increasingly limited understanding of what will be required in the future. No matter how good the instructions on the 9-box grid that your HR partner gives you, trying to identify and invest in a small group of people who will be the next generation of leaders is a fairly futile exercise. Great talent leaders of the future will steer clear of hi-po programmes and will instead think about how they create environments where the majority of their people can stretch, can play to their strengths and take advantage of opportunity.
Do you focus your talent efforts on the many or the few? (to borrow a current phrase …)
6. You don’t find your successors from within your team
Once seen as admirable, the concept of only recruiting from a narrow internal pool feels increasingly risky for today’s leader. When I was involved in creating leadership succession plans, the interjection of an external was either seen as a failing of the leader to produce an heir, or the need for a ‘benchmark’ candidate to make sure the internal nominee was up to scratch. But now, we would have to question the desirability of any succession plan with only current team members on it. With increasingly flat leadership structures, it is often really tough for the next tier to get the experience they need to take the top job. Only drawing from the names you know and trust results in a lack of diversity and ignores a wealth of talent with fresh perspectives. Of course it’s important to grow your own, but equally, great leaders of tomorrow will take a broader view of potential successors and will build a community of future talent that extends beyond the borders of their team and their company.
How are you fostering relationships with potential successors outside of your immediate team and outside of your company?
We need to cast off some of our misconceptions of what a great talent leader is and does. We need to let go of the idea that good leaders should be judged by how many people they retain and how long people stay with them. Retention and length of tenure will not necessarily equip our organisations for the future and the better leaders will be brave enough to acknowledge it.
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Duration: 27 minutes Lucy talks to Founder of Wow Accountants, Paul Bulpitt, about how to ensure your people live up to your brand.