Interesting survey result: one in four high-potential employees believe they will be working for another employer in a year.  This statistic is from a survey done by the Corporate Executive Board of the Corporate Leadership Council.  An article in the Harvard Business Review , May 2010 summarizes results and ideas for resolving some of these issues. 
The survey, done in September 2009, found that one in three high-potential employees (rising stars and high achievers) admit they don’t put all their effort into the job, and one in five believe that their personal aspirations are different from what the employer has in mind for them.  This in spite of the fact that most companies have some form of program designed to nurture future leaders, and with good reason, as these individuals have major impact on business results. 
The survey also found that the sense of disengagement of these employees has been remarkably high since the start of the recession.  Results suggest that as the economy rebounds and the labor market warms up, companies may see the best employees leaving in large numbers. 
Working with HR departments the Corporate Executive Board studied more than 20,000 employees that were considered high-potential at 100 organizations worldwide.  Findings show clearly that management teams stumble when trying to develop the next generation of leaders. 

Mistakes noted:
- Assuming that high potentials are highly engaged.  Disenchantment has increased since the economic downturn began, and so renewed efforts to engage these employees as well as regularly checking in with them is important.
- Equating current high performance with future potential.  The survey showed that 70% of the high performers lacked critical attributes important to handling future roles
- Delegating down the management of top talent.  If you leave the selection of future leaders primarily to line managers, the selection will be based heavily on current performance.  Suggestions are to develop a leadership program handled by the executive level to help both candidate and managers to understand future potential.
- Shielding rising stars from early derailment.  Just as in the education system where there’s a halo effect if you are perceived as a good student, rising stars are given more help along the way rather than being tested more rigorously.  
- Expecting star employees to share the pain.   Research indicates that under normal circumstances the star employee puts in 20% more effort than others in the same role.  Therefore, when salary freezes and layoffs occur, it is important to find a way to shield the top employees from that pain.  Bear in mind that other companies are scoping out your stars and may lure them away.
- Failing to link your stars to your corporate strategy.  On the other hand, don’t hide the pain from your high potentials.  Keeping them engaged means keeping them involved in the process.  Find ways to share future strategies on a privileged basis with your stars.

Finally, always make these high potentials aware that the designation is mainly an assessment of future contribution.  Don’t just celebrate current achievement.

Tags: candidates, change management, employee morale, Executive jobs, performance management

Being flexible and prepared for the changes that are a part of this new economy is a real challenge for the organization, especially if management can’t lead the process. The skill level and flexibility of the C-level group will determine how well the company handles future growth or future declines.

Many of today’s leaders had their learning period in a growing economy, and the pains of layoffs and decreased business are new to them. So how does a leader keep everyone tuned in and prepared for what comes next? An article in the Society for Human Resource Management, “Studies Highlight Recession’s Impact On Employee Relations” summarized some of the issues employees have in their interactions with management. At a time when the recession is affecting all, management stress levels are high, and executives aren’t anxious to deal with employee emotional issues. In part this may be because they are uncomfortable with the changes being made and so avoid discussing them. This is the time, however, when employees need a lot of feedback and information as to the company’s plans and problems.

Not really news, but most employees (50-60% according to the SHRM article) feel that the feedback they get, good or bad, from their supervisors is too vague to be useful, and therefore isn’t effective in managing the workforce. Giving clear information on performance takes thought and effort in a time where management may be stretched thin – but it is really important for success. Examples of the good or bad performance need to be part of the dialogue, as well as information on current company performance and future plans. In one well-managed tech company the CEO printed out the financial summary for the month and shared it with staff and management.

How can leadership develop better techniques for communicating with the rest of the company? First, think about what they would want from an interaction with their bosses. Focus on how to get the facts out in a reassuring but effective manner. “Highly effective communicators measure to see exactly what they are accomplishing at each step,” said John Finney, senior communication consultant for Watson Wyatt, in a statement. “Communication does not exist in a vacuum—it always serves a larger business purpose. The best-performing companies plan communication strategically, like any other business area.”

With all that said, the SHRM article found that most employees (9 out of 10) believed their company was going in the right direction, and were very loyal to their employer. However, once businesses starts to expand again and present more employment opportunities, that may change. This is why building a strong communication system within the company is key- now!

Tags: change management, employee feedback, employee morale, performance management

The economic news is that the decline is slowing, and we may be stable and looking for improvement in the overall economy next year…but who knows? The most important sector of the economy for most people is the job market, and the news isn’t comforting.

According to a survey conducted by the Society for Human Resource Management, one third of HR professionals have some level of concern about the job market in the U.S. for the last of 2009, and other sources don’t expect it to be any better in 2010. The National Association of Business Economics survey found that more than half of the 44 economists surveyed don’t expect the lost American jobs to be recovered fully until 2012.

The SHRM Survey found that white-collar employees have particular cause for concern. With one in seven U.S. organizations planning to reduce staff, they are targeting a higher percentage of managers and professionals (double the percentage of any other employee group). These people represent a lot of talent and experience, and hopefully will be able to hang on until things improve – as their skills will surely be needed. There is a tendency among employers not to add jobs even though there might be a short term need, to prevent having to lay off again in the uncertain economy.

In New Mexico the government sector has taken an economic hit and consequently is cutting staff and tightening the budget. Some companies are laying off, and many are reducing their work week in order to avoid layoffs. Benefits are being cut in almost all sectors in the coming year which has huge long term effects, especially for those nearing retirement age. Ironically one of the difficulties new and growing businesses in New Mexico have faced in the past has been the need for an experienced workforce. Now there’s an abundance of talent looking for employment and not enough opportunity. We’re a fairly creative state, so let’s get to work and get these good people back on the job.

Tags: employee morale, hiring talent, Hiring Trends, job seeker, recruiting

Use your dirt to start a company garden. The reward is twofold-improving employee health and improving morale. The concept isn’t new, but there is a new interest in community-sponsored agriculture because of the economic situation in the country and the new emphasis on health in the U.S. It can’t hurt to cut down on prepackaged food in the lunchroom!

The orthopedic office where I once worked had a small garden plot outside the back door, where we grew chard and lettuce. Everyone used the fresh vegetables as a side dish for their sack lunches and appreciated the novelty-this was in 1988! Now big corporations are getting on the bandwagon. According to an article in HR News (Nov. 18, 2009) Pepsico opened an organic garden at headquarters in May of this year. The Haberman PR firm in Minneapolis started a “Dude Ranch” at about the same time. CEO Fred Haberman believed that the company garden lead to a healthier, more productive workforce – and by extension lower health care costs.

If you don’t have space around your workplace, you can rent a plot nearby, or try window boxes. In a time when small perks can have great impact, you are encouraging healthy living and healthy attitudes. If any of you have gardens you are aware of the satisfaction they bring. Share your thoughts and experiences!

Tags: employee benefits, employee morale, team building