Top
Ten Reasons Why Large Companies Fail To Keep Their Best
Talent
Whether it’s a
high-profile tech company like Yahoo!,
or a more established conglomerate like GE or Home
Depot, large companies have a hard time keeping their best and
brightest in house. Recently, GigaOM discussed the troubles at Yahoo! with a
flat stock price, vested options for some of their best people, and the apparent
free flow of VC dollars luring away some of their best people to do the start-up
thing again.
Yet, Yahoo!, GE, Home
Depot, and other large established companies have a tremendous advantage in
retaining their top
talent and don’t. I’ve seen
the good and the bad things that large companies do in relation to talent management.
Here’s my Top
Ten list of what large companies do to lose their top
talent :
1.
Big Company Bureaucracy. This is probably the #1
reason we hear after the fact fromdisenchanted
employees. However, it’s usually a reason that masks the real reason.
No one likes rules that make no sense. But, when top talent is complaining along
these lines, it’s usually a sign that they didn’t feel as if they had a say in
these rules. They were simply told to follow along and get with the program. No
voice in the process and reallytalented
people say “check please.”
2.
Failing to Find a Project for the Talent that Ignites Their
Passion. Big companies have many
moving parts — by definition. Therefore, they usually don’t have people going
around to their best and brightest asking them if they’re enjoying
their current projects or if
they want to work on something new that they’re really interested in which would
help the company. HR people are usually too busy keeping up with other things to
get into this. The bosses are also usually tapped out on time and this becomes a
“nice to have” rather than “must have” conversation. However, unless you see it
as a “must have,” say adios to some of your best people. Top talent isn’t driven
by money and power, but by the opportunity to be a part of something huge, that
will change the world, and for which they are really
passionate. Big companies usually never spend the time to figure this
out with those people.
3.
Poor Annual Performance Reviews. You would be amazed at
how many companies do not do a very effective job at annual performance reviews.
Or, if they have them, they are rushed through, with a form quickly filled out
and sent off to HR, and back to real work. The impression this leaves with the
employee is that my boss — and, therefore, the company — isn’t really interested
in my long-term future here. If you’re talented enough, why stay? This one leads
into #4….
4.
No Discussion around Career Development. Here’s a secret for most
bosses: most employees don’t know what they’ll be doing in 5 years. In our
experience, about less than 5% of people could tell you if you asked. However,
everyone wants to have a discussion with you about their
future. Most bosses never engage with their employees about where they want to
go in their careers — even the top talent. This represents a huge opportunity
for you and your organization if you do bring it up. Our best clients have separate
annual discussions with their employees — apart from their annual or bi-annual
performance review meetings — to discuss succession
planning or career development. If your best people know that you
think there’s a path for them going forward, they’ll be more likely to hang
around.
5.
Shifting Whims/Strategic Priorities. I applaud companies
trying to build an incubator or “brickhouse” around their talent, by giving them
new exciting projects to work on. The challenge for most organizations is not
setting up a strategic priority, like establishing an incubator, but sticking
with it a year or two from now. Top talent hates to be “jerked around.” If you
commit to a project that they will be heading up, you’ve got to give them enough
opportunity to deliver what they’ve promised.
6.
Lack of Accountability and/or telling them how to do their
Jobs.Although you can’t “jerk around”
top talent, it’s a mistake to treat top talent leading a project as
“untouchable.” We’re not saying that you need to get into anyone’s business or
telling them what to do. However, top talent demands accountability from others
and doesn’t mind being held accountable for their projects. Therefore, have
regular touch points with your best people as they work through their projects.
They’ll appreciate your insights/observations/suggestions — as long as they
don’t spillover into preaching.
7. Top Talent likes other Top
Talent. What are the rest of the
people around your top talent like? Many organizations keep some people on the
payroll that rationally shouldn’t be there. You’ll get a litany of rationales
explaining why when you ask. “It’s too hard to find a replacement for him/her….”
“Now’s not the time….” However, doing exit interviews with the best people
leaving big companies you often hear how they were turned off by some of their
former “team mates.” If you want to keep your best people, make sure they’re
surrounded by other great people.
8.
The Missing Vision Thing. This might sound
obvious, but is the future of your organization exciting? What strategy are you
executing? What is the vision you want this talented person to fulfill? Did they
have a say/input into this vision? If the answer is no, there’s work to do — and
fast.
9.
Lack of Open-Mindedness. The best people want to
share their ideas and have them listened to. However, a lot of companies have a
vision/strategy which they are trying to execute against — and, often find
opposing voices to this strategy as an annoyance and a sign that someone’s not a
“team player.” If all the best people are leaving and disagreeing with the
strategy, you’re left with a bunch of “yes” people saying the same things to
each other. You’ve got to be able to listen to others’ points of view — always
incorporating the best parts of these new suggestions.
10. Who’s the Boss? If a few people have
recently quit at your company who report to the same boss, it’s likely not a
coincidence. We’ll often get asked to come in and “fix” someone who’s a great
sales person, engineer, or is a founder, but who is driving everyone around them
“nuts.” We can try, but unfortunately, executive coaching usually only works 33%
of the time in these cases. You’re better off trying to find another spot for
them in the organization — or, at the very least, not overseeing your
high-potential talent that you want to keep.
It’s never a one-way
street. Top talent has to assume some responsibility as much as the
organization. However, with the scarcity of talent — which will only increase in
the next 5 years — Smart Organizations are ones who get out in front of these
ten things, rather than wait for their people to come to them, asking to
implement this list.
