Organisations globally invest a great deal of resources, money and time in Talent Management to retain High Potentials (HIPOTs). These are generally highly capable, intelligent, and quick learning resources that we are talking about. Would a hike in salary package, grade, or designation keep them motivated all the way?
Visualize a goldfish inside a tank with lots of fighter fish. A formula1 car on any heavy traffic road. Shoe polish alongside fruit racks in a retail outlet. How repulsive are these images? This is simply how hipots will feel if they've got 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.
Take into consideration a situation where your hipot has to report to a manager who is 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 really look forward to learning from the manager.
Everyone knows that adults don't want to be told. A hipot would hate being directed repeatedly, they usually like to be challenged cognitively. They might prefer guidance only after trying out things on their own. An environment where the organisation or the managers are less tolerant towards learning through experiments and failures cannot 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 popular enough a way to repel the talent pool from your organisation. All it takes in such a situation will be to manage somehow and stay put for the promotions to happen. A hipot could find operating in such an environment insulting. Hipots expect 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 check 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 purchase it from the market? These generally are two different things. In case your organisation is attracting talent, you may always have a talent surplus situation, no matter what the market condition is. If you're buying talent from the market, you may consider the following thoughts:
• Increased wages are not going to keep the hipot motivated permanently
• A Deputy Assistant VP grade will likely not 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 may cause interpersonal challenges as well as an increase in employee churn
Some pointers which 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 might have to make certain that they work with managers who can offer them the right environment
• Conduct surveys to see 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 accountable 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 certainly ok not to recruit hipots for your organisation, but this decision needs to be based on talent pool bench-marking