Organisations throughout the world invest lots of resources, money and time in Talent Management to retain High Potentials (HIPOTs). These would 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 very long?
Visualize a goldfish in a tank with lots of fighter fish. A formula1 car on a high-traffic road. Shoe polish just beside fruit racks in the retail outlet. How repulsive are these images? That's simply how hipots will feel in case they have to work in an environment that doesn't suit their culture, aspirations, and capabilities. They will 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's low on general intelligence. The manager would likely spend more time concluding a brainstorming session. The hipot may see this additional time as waste and incapability of her manager. The hipot may 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 to be directed always, they usually love to be challenged cognitively. Typically they would prefer guidance only after trying out things on their own. An environment where the organisation or even 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 would be to manage somehow and stay put for the promotions to happen. A hipot might find being employed in such an environment insulting. Hipots anticipate to grow according to 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 pay attention to 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 purchase it from the market? You will see these are two different things. Chances are if your organisation is attracting talent, you are sure to always have a talent surplus situation, no matter what the market condition is. When you are buying talent from the market, you may consider the following thoughts:
• Increased salary is not going to keep the hipot motivated all the way
• A Deputy Assistant VP grade won't 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 as well as an increased amount of employee churn
Some pointers that will help in making informed decisions about attracting, recruiting, and retaining the talent pool:
• Define the DNA of hipots for your organisation
• Define the strategy to recruit hipots. You would have to make certain that they work with managers who can provide them with the right environment
• Conduct surveys to check if your organisation's culture is conducive for nurturing the talent pool. In case there are 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 right 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 develop
• Make the promotion criteria objective and transparent
• It is definitely ok to not recruit hipots for your organisation, but this decision must be based on talent pool bench-marking