Winning the War for Talent
Wally Schmader
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If you’re paying attention to the experts, you know we are in the first inning of what will be a sustained talent war for U.S. employers. Some would argue that it had started pre-Covid, but everyone seems to agree that finding and keeping smart, talented, high-potential players is going to become a LOT more challenging in the coming months and (possibly) years.
So what should you be doing now to prepare for, and get ahead of, what’s going to be happening in the job and hiring markets? Here’s a short list of seven “musts” if you want to be a winner in the war for talent:
?? Scrutinize your current paid compensation
The most valuable person available is the one who’s already on your team. Think through everyone: department by department, person by person. Where is your paid compensation vs. your market? Look especially closely at the comp for your high-potential people… they have options, and they know it. Make sure the job they have with you is a good one. I recommend making a simple red/yellow/green org chart map of who may be under-paid, over-paid and about right. Look closely at who is in the “under” and “about right” categories. Can you afford to lose them? If not, make some adjustments soon.
?? Lean in on your retention strategies
How are you paying attention to your current team? Are you investing in them? Are you recognizing their hard work? Do they know how valuable they are to you? The experts tells us that the all-in replacement cost of a great employee is between 100-200% of their salary. When you think about those numbers, retention initiatives seem very affordable.
?? Launch a nurture campaign to build bench strength
You know all of those people you’ve interviewed and engaged with over the years? They should be in your nurture group of people to stay in contact with. Send them company updates and position openings. This is your bench full of future potential contributors. The time may have not been right to bring them aboard initially, but it may be soon.
? Make inside opportunities clear for your team
The career ladder is dead, and it’s been replaced by a career chessboard. Do you want to earn more money or responsibility? Learn some new moves. Make it clear to your employees that you will happily pay more money for higher-value contributions.
?? Leverage all forms of compensation
Today’s employees have three key forms of compensation: (1) money, (2) schedule flexibility, and (3) work presence type (live, virtual or mixed). Employers that are willing to flex and be creative with all three will attract and retain the best people.
?? Expect your employees to help source new talent
The employee referral is a powerful way to grow your team. The odds of finding and keeping smart and talented new people go up drastically when you leverage existing relationships. Best practice: a branded employee referral program that pays the referring employee a split referral bonus when the new person starts and and after six months of contribution.
?? Remember that culture is your primary differentiator
Developing an inclusive, high-performance culture pays off in a lot of ways… and attraction and retention are at the top of the list. Think of culture from the employee’s point of view; the compensation differences between companies will usually be in the 5-15% range, while the cultural differences can be astronomical. One company presents a purpose-focused, fun, inclusive, flexible, high-engagement culture, while the other presents a typical punch-the-clock employment experience. The choice is easy.
Consider those seven active strategies for gaining an advantage in finding and retaining smart and talent people. Your company runs and grows on people-power and leaders need to do everything they can to prepare and react to the changing marketplace for talent. We're strongly recommending that you get ahead of the trend to avoid losses and missed opportunities. The great news is that the people-forward decisions you make will still be paying off when the employment market normalizes.
Wally Schmader | May 13, 2021
I find innovative solutions to cut operating costs without layoffs with direct impact on the bottom line | Expense Reduction | Business Consulting and Systems | Trusted Advisor | Cost Management | Strategy |
3 年When considering more money for higher value contributions prior behavior needs to be the key consideration. Employees who go above and beyond under current comp are likely to continue the trend given empowerment and broader responsibilties.
Outsourced Sales VP @ James River Sales Advisors | Sales, Leadership
3 年Very timely article Wally. I concur with you last point about culture being your primary differentiator This is especially true with the sales teams with the SMB businesses I work with since they often can't compete with larger company comp packages.