Organisations around the world invest a lot of resources, money and time in Talent Management to retain High Potentials (HIPOTs). These are highly capable, intelligent, and quick learning resources that we are referring to. Would a hike in salary package, grade, or designation place them motivated for long?
Visualize a goldfish inside a tank with lots of fighter fish. A formula1 car on any heavy traffic road. Shoe polish adjacent to fruit racks in the retail outlet. How repulsive are these images? That's precisely how hipots will feel if they've got to work in an environment that does not suit their culture, aspirations, and capabilities. They are going to feel suffocated and what follows next is the hipot going in search of fresh air.
Think about it as a situation where your hipot has to report to a supervisor who is low on general intelligence. The manager would most likely spend more time concluding a brainstorming session. The hipot may see this extra time as waste and incapability of their manager. The hipot might not find enough motivation to sit through the future meetings with the manager or not really look forward to gaining knowledge from the manager.
Everybody knows that adults simply don't like to be told. A hipot would hate for being directed at all times, they usually love to be challenged cognitively. They'd prefer guidance only after trying out things on their own. An environment where the organisation and the managers are less tolerant towards learning through experiments and failures will not likely support nurturing a talent pool. ‘Telling approach' is considered one indicator of an organisation that lacks a high-performance culture.
Tenure-based promotion is a good enough ground repel the talent pool farther from organisation. All it takes in such a situation will be to manage somehow and stay put for the promotions to happen. A hipot may find working in such an environment insulting. Hipots expect to grow based on performance, effort and demonstrated capability.
Organisations can't expect hipots to wait patiently for their turn of promotion. The irony is that the organisations don't carefully consider their patience while recruiting them. The talent management strategy must be in line with the intent to nurture and retain the talent pool.
“At companies with very effective talent management, respondents are six times more likely than those with very ineffective talent management to report higher 'Total Returns to Shareholders' than competitors.”
“Only 5 per cent of respondents say their organizations' talent management has been very effective at improving company performance”.
Source - https://www.mckinsey.com/business-functions/organization/our-insights/winning-with-your-talent-management-strategy
ATTRACTING VS BUYING TALENT:
Does your organisation attracts talent or get it from the market? These generally are two different things. But if your organisation is attracting talent, you might always have a talent surplus situation, no matter what the market condition is. In case you are buying talent from the market, you may consider the following thoughts:
• Increased wages are not going to keep the hipot motivated lastingly
• A Deputy Assistant VP grade will likely not mean much for a longer duration
• If there is a mismatch between expectations and reality, the hipot may regress in performance after joining your organisation
• Recruiting hipots may cause interpersonal challenges and an increase in employee churn
Some pointers that can assist in making informed decisions about attracting, recruiting, and retaining the talent pool:
• Define the DNA of hipots for the organisation
• Define the strategy to recruit hipots. You may have to make certain that they work with managers who can present the right environment
• Conduct surveys to check if your organisation's culture is conducive for nurturing the talent pool. Should there be shortcomings, including organisational culture and practices, address them through a robust learning architecture
• Make leaders answerable for talent management and review them regularly
• Define a career path for all roles in the organisation. The employee should enter, get promoted, and exit the organisation at the correct time
• Make people development a default competency for managers and leaders. Organisations should give talent management competency enough weightage for making their promotions decisions
• Provide equal opportunity for all employees to learn and grow
• Make the promotion criteria objective and transparent
• It is completely ok not to recruit hipots for your organisation, but this decision need to be based on talent pool bench-marking