Effective leadership doesn't just happen. You have to happen into it!

Tuesday, September 05, 2006

When the BEST leaves....

Retaining top performers in an organization was never easy. People managers will tell you that it just got more difficult today. Some organizations that I know of have 40% employee turnover and; they are in industries where a stable staff strength is needed for the business unlike the fast-food business where high staff turnover is almost always expected.

When a top performer leaves an organization, he/she takes more than just himself; he takes with him the money-can't-buy knowledge and insights into how a certain aspect of his job functions are carried out. Now, things get more 'expensive' when the top performer leaves under less than satisfactory circumstances as weeks before he leaves he will lay a carefully planned groundwork among his co-workers as to the 'real' reasons for his decision to leave and trust me when I say that such reasons will have nothing to do with how good the management has been to him. Whether knowlingly or otherwise, a top perfomer who leaves will always be able to bring the motivation of his co-workers a notch down. Lets also not forget that when a top performer gives a two-month notice to the management; he has invariably given himself at least another 2 months notice prior to informing the management. Under most circumstances, what the organization now has on its payrol is an employee who is going to only perform at 50% (or less) of his capacity for 4 months. People managers shoud calculate the cost of this to the organization! This is the reason why somethimes I wonder why companies insist on 2 months notice!

As costly as all these are, they are actually not inevitable. People managers can retain their top performers. Lets be honest here and admit that there is no way under the heavens how anybody can retain ALL their top performers ALL the time. There will always be those who leave. There will always be others who make better offers and provide more attractive perks. Besides, as I recently ponted out to a manager, a long serving employee could mean loyalty OR a no hoper anywhere else! So, whats important is to have systems and strategies in place to ensure that at the least our top performers do not jump the boat at the first sign of trouble or better offers.

People managers must come to the realization that it is the nature of the 21st century workforce not to show any loyalty to the organization. Their loyalty is only to their career or their expertise. The old pep-talks glorifying loyalty to the organization will not cut it with the young kids coming out of our universities. They need to be told how by staying on with us, they can develop themselves and; oh yes! the organization too. They need to be told how the organization will appreciate and reward their talents and contributions. People managers must be able to provide an attractive picture of career development and professional enhancement.

Once a top performer has been identified, there needs to be a serious attempt by the organization to lay the groundwork on how to retain him or her. I would suggest that there should be a general framework to retain top performers AND a more individual-specific strategy. A commitee should be set up to track and develop the career development aspects of a top performer. This commitee should comprise of among others the General Manager,HR manager and the head of department and the said top performer. He or she must be kept in the loop at all times. There is no point in saying on the day a resignation notice is given that the organization "...had great plans for you".

Keep your BEST to be the BEST. There is no other way.

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