Steps For Recruiting And Retaining Talent
October 12, 2007
One of the greatest challenges for companies, from SME’s to the Fortune 500, is recruiting and retaining talent. With turnover rates pushing 80% in some Asian markets, this challenge has taken the center-stage in strategic planning from Bangalore to Beijing.
Offering financial incentives to motivate employees and executives has been a common management practice for decades. Real estate brokers get higher commissions for selling more homes. Teachers get bonuses when their students score higher on standardized tests. Executives get generous stock options for boosting the company’s stock price.
Money Alone Isn’t Enough
In today’s global market, throwing money at employees just doesn’t cut it anymore. While this approach may have short-term positive effects, it distorts behavior within an organization. In some cases, it leads to unscrupulous behavior because it places value on the reward rather than the organization. Hence, when another company can offer a larger financial reward the talent will leave.
It is much more challenging to align people’s mindsets with the company’s vision, but over time, and with the correct training, development programs, effective management, and support at all levels, an organization can create a team that’s truly geared for long-term success.
5 Motivational Hot Buttons
A 2006 study conducted by The Washington Institute, involving 700 participants from various levels and countries, revealed the top 5 “Hot Buttons” that motivate employees:
- Work that is both challenging and interesting
- A clear career path
- An open, communicative corporate culture
- Appropriate recognition and reward system
- A global presence
What this study showed is that employees want careers, not just jobs and not just money. While appropriate compensation is important, an attractive corporate culture and consistent "mantra" play a more exigent role in the long-term success of an organization.
For more information, see our other articles about organizational development.