What is Talent Hoarding?

Leaders are once more facing a new retention challenge. 2022 started high in talent demand, but has come to a point where companies have started taking stock of their resources.

Although this is far from new, it comes after a couple of unusual years where the labour market has been heavily affected, first with low job offer, then with unprecedented highs that led it to be candidate driven once more. Recruitment has increased more between 2021 and 2022 than any other time in the last 20 years, which means at least half of current leaders have never faced anything like this.

However, since April we begin to see a reduction that's coming at a faster pace than the increase we've seen mid-pandemic:

While the current offer is still 54% higher than pre-COVID, there is a distinct downward trend that warns the market is far from stabilising.

With less job offers out-there, there is less risk for attrition. However, it also means that talent will be looking for opportunities internally. In turn, companies will look at their human capital to fill roles that would have been opened externally.

This creates a fantastic opportunity for career advancement, providing employees with the chance to focus on their strengths, whether through job crafting, stretch assignments or direct promotions.

Leaders are put on a critical spot that would likely define them with their existing team: do they support their team's development or do they talent hoard?

As much as the answer might seem very clear to many, in practice it's very common to see some leaders holding on to the talent in their teams for dear life. Great and standard performers alike might be kept in their roles as replacing them would mean entering a potentially lengthy process of recruiting, hiring and onboarding. Managers close the door to development outside of their teams, sometimes to the promise of potential opportunities within, that may never come.

Let me say this plain: talent hoarding is NEVER a good idea. Not being able to promote somebody that's ready to move on has a critical impact on their engagement and dramatically increases their risk of leaving the company altogether. Employees might be looking for a change for different reasons, and denying this chance can never bring a good outcome.

So, how can leaders work through this without falling in talent hoarding?

1. Act, don't react: Good managers know where their employees are standing as they follow their progression closely. Learn to identify when someone in your team is ready for a next step (a good example of this is to perform 9-box exercises at least twice a year). Keep regular conversations building up to that point so your team can see it's top of mind for you. In turn, it will become easier for you to identify potential stretch assignments or promotion opportunities the more you bring this to your attention.
2. Work together: Make sure your talent knows the opportunities they have within your team and also within the company. Be very open and clear about expectations, and encourage them to be vocal about their wants and needs with regards to their motivation for growth. By providing them with a safe space where they can be honest with you and in return get your support, not only will you be more likely to avoid surprises, but they will also follow your lead, perform better during potential transitions and be eternally grateful for your support.
3. Elevate your team: broadcast your team's talents and potential to your peers. Find opportunities to use your team's strengths on stretch assignments or special projects that will further enhance performance. When you work to your team's strengths, you are investing in succession planning, further talent for your company and bigger opportunities for your portfolio.

Our next challenge as leaders will be internal retention. Better to face it proactively and plan around it. If you think of it as an opportunity instead of a risk, the sky is the limit!