Organisations throughout the world invest a large amount of resources, time and money in Talent Management to retain High Potentials (HIPOTs). They are highly capable, intelligent, and quick learning resources that we are referring to. Would a hike in salary package, grade, or designation hold them motivated quite a while?
Imagine a goldfish inside a tank full of fighter fish. A formula1 car on any heavy traffic road. Shoe polish close to fruit racks in the retail outlet. How repulsive are these images? That's simply how hipots will feel if they've to work in an environment that does not 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 manager who seems to be low on general intelligence. The manager would most probably take more time concluding a brainstorming session. The hipot may see this extra time as waste and incapability of their manager. The hipot would possibly not find enough motivation to sit through the future meetings with the manager or not look forward to learning from the manager.
We all know that adults don't wish to be told. A hipot would hate for being directed all the time, they usually love to be challenged cognitively. They might 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 do not support nurturing a talent pool. ‘Telling approach' is definitely 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. What is needed in such a situation is usually to manage somehow and stay put for the promotions to happen. A hipot can find operating in such an environment insulting. Hipots expect to grow in accordance 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 look out for 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. If by chance your organisation is attracting talent, you may always have a talent surplus situation, no matter what the market condition is. If you are buying talent from the market, you may consider the following thoughts:
• Increased wages are 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's a mismatch between expectations and reality, the hipot may regress in performance after joining your organisation
• Recruiting hipots can result in interpersonal challenges as well as an increasing 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 the organisation
• Define the strategy to recruit hipots. You may have to make certain that they work with managers who can offer them the right environment
• Conduct surveys to check if your organisation's culture is conducive for nurturing the talent pool. If there are shortcomings, including organisational culture and practices, address them through a robust learning architecture
• Make leaders accountable for talent management and review them regularly
• Define a career path for all roles in the organisation. Employees 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 completely ok not to recruit hipots for your organisation, but this decision should be based on talent pool bench-marking