Worried about retention? Some news about millennials

Millennials and careers

 A recent article from Reuters provided some insights into why millennials quit their jobs and just how many of them plan on doing so in the next 2-4 years. First, the numbers:

  • Sixty percent of millennials, those people who are 22-32, have changed jobs 1-4 times in the past 5 years, according to State Street Global Advisors. Could be some of the younger millennials in the survey population were moving from part-time or ‘I needed a job’ jobs, but that numbers should give you pause.
  • If given the choice, 44% would leave their job in the next two years and 66% expect to change their employers in the next 4 years. Not would if they could. They expect to change.

Why? As we’ve all heard, millennials want work that aligns with their values. Old news.  What was interesting is how important it is even to those who are what they call ‘senior millennials’ — those with high-level job titles. Sixty-one percent of them say they’ve chosen not to undertake a task at work because it conflicts with their values. So much for work is not personal.

However, this article points out that isn’t the whole story. Turns out money does matter. A woman quoted in the article only chose to change to a career she thought she would like better when she figured out it was lucrative in the market where she lives. It also notes how often millennials are developing additional revenue streams outside of their jobs. Sounds pretty entrepreneurial to me.

What can you do to keep your millennials around.  Most likely, they will leave you at some point but you can probably extend that timeframe by focusing on three things:
  • Know what your millennials, as individuals, value and integrate that into their work.
  • Give them the opportunity to generate business ideas and be entrepreneurial. Their doing it on the side.  Why not as part of their regular job?
  • Don’t think that all of this takes the place of money.  They want financial rewards for their effort.  What may be different from others is that the rewards need to be aligned with their values, how they are making a difference and the ability to be entrepreneurial at work.
Cheers!
Edith

The Leadership Multiplier Effect

A third of all CEO’s surveyed by The Conference Board say the most pressing issue they have is attracting, developing and retaining the right talent. Two of the biggest factors in engagement and retention are trust in senior leadership and the relationship people have with their managers. With 75% of employees in a recent Gallup Organization survey reporting that they are unengaged or actively disengaged at work, leadership is not successfully addressing this issue.

Leadership excellence has a multiplier effect on organizations. Investing in developing leaders, increasing the leadership multiplier effect, is a short-term and long-term strategy that allows your organization to adapt and thrive in various economic circumstances by attracting, retaining and engaging your human capital.

What is the Leadership Multiplier Effect?

Resources spent on leadership development have a cascading effect throughout the organization. The effective leader creates exponential value for the organization through his or her influence on the strategy, people and processes in the organization. One leader’s effective decisions and actions has a ripple effect that can impact dozens or hundreds of employees, positively changing business performance for the entire department or business unit. Likewise, the impact of poor leadership decisions and actions can lead to the decreased ability to attract, develop and retain the right talent.

In addition, effective senior leaders model behaviors and skills for other leaders in the organization. They set the tone for the leadership practices that define the organization and its culture. They demonstrate the business skills that address business issues and create innovation. They define and operationalize high performance through their interactions with each other and the entire organization.

As others mature in their leadership roles, their effectiveness is increased for having been effectively developed and for the role-models presented by senior leadership. A cascade is created. With more effective leadership focused on the right things at all levels in the organization, factors impacting business performance improve. Groups led by effective leaders are more engaged resulting in higher productivity rates, increased willingness to give extra effort, and greater acceptance of change. In other words, effective leadership creates an environment that attracts and retains high quality talent.

Ensuring the effectiveness of your leaders is critical whether your business is expanding or contracting. When your business is expanding, bringing on new people, introducing new products, serving new customers, leaders need to integrate and assimilate the growth. They need to plan strategically for growth, effectively develop their teams, establish business practices and maintain the engagement people feel in those initial few months on the job.

When business is contracting, leaders need to manage the change brought on by staff reductions, reduced revenue streams and increased cost constraints. They need to maintain the remaining staff’s focus and morale. Need to maintain customer service levels, identify how to do more with less.

Optimizing the Leadership Multiplier Effect

For the leadership multiplier effect have its maximum impact, leaders must be developed effectively. Effective development includes:

1.  Identifying the core of effective leadership. What makes leaders effective? One way to start thinking about leadership effectiveness is to identify what results you want the leader to achieve and use this to identify behaviors that are effective in achieving those results.

2.   Communicating what is expected of a leader. This communication is not always in words. It’s important to understand that how you select, how you assign resources, what people are held accountable for and how you recognize and reward say a great deal about your expectations of leaders.

3.   Assessing your leaders against your model of effectiveness. If some are less effective than you need, identify a strategy for addressing it. It may be development, assignment changes, or an exit strategy. No matter what strategy seems most appropriate, it should start with a frank conversation with the leader.

4.   Identifying potential leaders within your organization and outside your organization. Do you have the bench strength you need? Also remember that leaders aren’t just those with formal titles but also those in roles that are pivotal to business success.

5.   Developing leadership effectively. Formal learning experiences, business-driven assignments and projects, coaching, mentoring and other leadership development experiences need to align with the business strategy and the expectations you’ve communicated about leadership within your organization. Utilize a suite of development activities that build leaders throughout their careers. Developing leaders is process not an event. You must take a planned approach to leadership development, not one that only addresses obvious flash points that may be ignoring underlying causes.

By taking advantage of the Leadership Multiplier Effect, you will optimize talent and create competitive advantage.

Getting Real is Now an E-book

Getting Real Front Cover

It finally happened…Getting Real is available as an e-book.  

Get one for yourself. Share this with a friend or colleague. Don’t miss what Marshall Goldsmith calls “instrumental in taking your personal leadership strategy to new heights.”
Available on Amazon.
Cheers!
Edith

About Edith Onderick-Harvey

Edith Onderick-Harvey is a highly regarded consultant, leadership and talent expert, and speaker. She is the author of the Amazon bests seller Getting Real:  Strategies for Leadership in Today’s Innovation-Hungry, Multi-Tasking, Time-Strapped World of Work. Edith is frequently quoted in the media including The New York Times, CNN.com, HR Executive, and American Executive.  As the President of Factor In Talent,  Edith works with leaders to take performance — their own, their team’s and their organization’s — to the next level.

What’s Your Talent Investment Plan?

Knowledge Investment

“Knowledge and skills have become the global currency of 21st-century economies, but there is no central bank that prints this currency. Everyone has to decide on their own how much they will print.”

–Andreas Schleicher, Organization for Economic Cooperation and Development

Schleicher’s quote is from Pass the Books. Hold the Oil by Tom Friedman in the March 10 New York Times. The piece talks about how performance on Program for International Student Assessment, or PISA, exam is correlated with how few natural resources a country has. The fewer the natural resources the better the performance on the exam. As another contributor to the article, K.R. Sridhar, founder of a fuel cell energy company in Silicon Valley says, “When you don’t have resources, you become resourceful.”

Those countries with the least natural resources have learned that in order to compete over the long term on a world stage they need to invest in educating their student populations.

Over the past few years, most businesses would say they’ve learned a difficult lesson of what it is like to live in a resource constrained environment. And the ones that will achieve continued success are those who have continued to invest in developing the skills and capabilities that will bring the biggest return on investment for their business. There’s no one perfect solution for every business. It needs to work in your business and in your business environment.

In the 21st century, competitive advantage comes from the strength of the people you have. As Schleicher argues “the only sustainable way is to grow our way out (of the recession) by giving more people the knowledge and skills to compete, collaborate and connect in a way that drives our countries forward,”

What is your talent investment plan?

The Journey to Excellence

Tom PetersBack in 1982, Tom Peters went In Search of Excellence and profiled 40+ companies who were examples of excellence.  If we look back at that book some of the companies are gone now or are not what we would hold up as examples of excellence.  That’s because excellence is not an end state.  It’s an organizational state of being that’s characterized by continuous movement in pursuit of ever-higher achievement.  In a culture of excellence, you are never done or…you never quite arrive.

The drive for excellence — for continually improving on even our most outstanding achievement —  when paired with the compelling clarity I spoke about in my last newsletter sets the stage for achieving or even exceeding the goals defined in the strategy.  The question is how do you create a culture of excellence and performance?

Excellence is about self reflection:  Without knowing who and where you are in your journey, it is difficult to continually pursue ever higher levels of personal or organizational achievement.  What values are of core importance to me?  How do I add value? What values are core to the organization?  How do we add value for our customers? Am I clear where I am taking my organization?  Am I communicating a standard of excellence?

Excellence is about continual, personal growth: Without professional growth, our performance, and that of our organization, will not be characterized by excellence.  Leaders need to be a role model for their teams.  They should ask “how can I use my strengths more fully to achieve the results we need to be successful?” It’s equally important to ask yourself and others,  “what do I, as a leader, not know and need to learn?  What skill do I need to develop and how should I apply them?”

Excellence is about setting the expectation for excellence: In environments that achieve excellence, the standard for it is communicated broadly throughout the organization.  The communication isn’t just verbal.  It’s communicated in goals and objectives.  It’s communicated in everyday actions.  It’s communicated in the quality of anything that’s produced, from emails and meeting agendas to products and services. It’s communicated in processes that focus on continual improvement.

Excellence is about creating a culture that looks at behaviors and results: Cultures that only look at results can become toxic.  It can be too easy to turn a blind eye to unacceptable behavior because “hey, he/she gets results.”  Leaders need to be as concerned with how people achieve results as with the results they are achieving. How do we meet our customer’s expectations, meet our business goals and behave ethically and with excellence? What behavior do we hold up as the gold standard in the pursuit of results?  What behaviors are completely unacceptable?

Excellence is about tapping into each person’s drive for excellence: The neuroscience of excellence tells us that higher and higher performance comes from the need to direct our own lives, to create new things and to improve ourselves and our world.  In his book, Drive, Daniel Pink talks about tapping into the third drive — the drive produced from engagement in the task itself when the task allows us to experience autonomy, mastery and purpose. Too many of our organizations are using what Pink calls the second drive – the carrot and the stick – to try to create higher levels of achievement. What we know is that this only takes achievement to the level of what one needs to do to get a reward and to avoid a negative consequence.  It doesn’t lead us to excellence.

Excellence is about improving those around you and managing performance: As the saying goes, the tide lifts all boats.  In order to instill a culture of excellence, leaders need to manage performance and development proactively by praising excellence and having the difficult discussions that are needed to improve performance.  Too often we short circuit the ability to achieve excellence because we are unable to give the difficult feedback that allows others to build their capacity to contribute.  Unfortunately, many of our performance management practices also drive a trend towards mediocrity by relying too much on the carrot and stick.

As Tom Peters did almost 30 years ago, go in search of excellence in your organization.  Model it, practice it, celebrate it and watch the impact on performance

Transform from the Start

TransformationAs you know, I work with clients who are going through some type of transformation — changing their business strategy, operating model, organization structure, etc. Whatever the change, you have to start at the beginning. Sounds obvious, right? The first most critical step of any change is having a compelling, clear vision. That’s not the beginning I’m talking about today. The beginning that I’m talking about is the beginning of the talent life cycle — how you are hiring. Hiring for the future needs to be a well thought out and executed part of transformation.

In my experience, purposeful hiring is one of the most neglected business processes in many organizations. There is usually a process for posting resumes and identifying candidates. After that, it becomes haphazard. A few people meet the candidate. The hiring manager and HR (if it is involved) get some feedback. Someone is hired and you hope it works out.

Powerful, purposeful hiring processes include:

  • Identifying the critical success factors for the role — focusing on the future without neglecting the now
  • Putting together a team that can effectively assess the candidate against those success factors
  • Purposefully focusing each interview
  • Determining which questions will help you assess the candidate against the success factors. These include not just technical or professional skills but also cultural fit.
  • Debriefing the results of the interviews in a structured way.
  • Having a decision process that will allow you to rapidly move ahead.

 

 

About Edith Onderick-Harvey

Edith Onderick-Harvey is a highly regarded consultant, leadership and talent expert, and speaker. Edith is frequently quoted in the media including The New York Times, CNN.com, HR Executive, and American Executive. As the President of Factor In Talent, Edith works with leaders to take performance — their own, their team’s and their organization’s — to the next level.

Talent shortage? Afraid of power? This week’s random musings

Here are a few things I’m thinking about this week. I’d love to hear your thoughts and experiences.

Talent shortage continues. Manpower recently completed a survey of 41,700 hiring managers across 42 countries. 38% reported they are unable to find the talent they need. That’s the highest percentage in this annual survey since 2007. The top 10 hardest jobs to fill include sales reps, engineers, IT staff, accounting and finance, and managers/executives. Are you having a tough time finding the talent you need? If so, which jobs are you having the hardest time filling? Click here to see the NBCNews article.

Are we afraid of power? In several of my recent conversations with emerging female executives, many are still expressing concerns about their ability to effectively use their power. They are concerned about delegating appropriately, how they are perceived by emerging male executives, or by the people who work for them, even how to give feedback that gets a difficult message across when need be. If you’re a female leader, have you had similar concerns? If so, how did you deal with it? What advice would you have for women who seem to be afraid of power?

Productivity-boosters. This coming Sunday, November 1st daylight savings comes to an end and lighter mornings and darker evenings remind us that winter will soon be upon us. Remaining productive during the winter months can be a challenge for some.  What are your favorite tricks for boosting your personal productivity? What works like a charm every time?

daylight savings

 

Create a Sustainable Leadership Pipeline: 7 Core Principles

Leadership Sustainability

Leadership Sustainability

Sustainability is a word that is heard often these days, usually in regards to the environment or development or cultures. As leaders, part of our mission is to create sustainability within our organizations. The talent of our future leaders is critical to our future success. The question is, “how do I create a sustainable pipeline of leaders and manage talent in an ever-changing business and economic environment?”

The business case for top-tier leadership quality is solid. A Corporate Leadership Council 2003 Succession Management Survey showed that top tier leadership organizations are much more likely to outperform their peers in the marketplace, which translates into substantial financial gains. Market capitalization relative to peers was $384 million higher for top-tier leadership organizations compared with a $232 million lower for bottom-tier leadership organizations.

Creating a sustainable pipeline of top-tier leadership needs an integrated, systemic approach to talent management. Current leaders in the organization need to be accountable for creating a talent management culture. Keeping your eye on the talent will allow you to survive, and even thrive, during times of change and come out stronger on the other side.

To create sustainable leadership pipelines, seven core principles make the difference.

The 7 Core Principles

Core Principle #1: Recognize talent management is a core business process with impact on overall business and financial success for the enterprise. Actively engage leadership throughout the organization on an ongoing basis to assure a nimble, functioning and robust process is in place. Create accountabilities for leaders, just as they are for the financial and operational success of the organization.

Core Principle #2: It starts with the business strategy and talent pipelines are developed to support the strategy. Base the pipelines on where the business is currently and also prepare for future scenarios. As Marshall Goldsmith said, “what got you here, won’t get you there.” Leadership needs will vary based on the strategic needs of the organization. The necessary leadership qualities, the identification, development and review of key talent should be linked to the strategy to assure the bench strength meets the organization needs.

Identify linchpin roles to assure you are developing leadership talent for those roles that have significant impact on the organization’s ability to achieve short and long-term results. Look at the drivers of you business – is it sales? Research and development? Manufacturing? How are you creating a sustained talent pipeline in those parts of the business?

Core Principle #3: Measure it and know if it’s making a difference. Sustainability is created by knowing what will create success now and in the future and focusing resources on those areas. Put measures in place to reflect the goals of talent management and the effectiveness of leadership development. As was stated in principle #1, make it a key accountability for the executive team.

Core Principle #4: Identify, develop and talk about leadership talent throughout the organization. The leadership talent conversation should be ongoing among your senior leadership teams. Until they take root in the culture, overt processes should be put in place to cause these conversations to occur. These topics need to be agenda items or the topics of meetings in their entirety.

Create communication mechanisms to ensure a resilient information-sharing process. Intranet- based tools with the ability to allow varying levels of access to critical information are vital. They allow for the dynamic management of the information.

Core Principle #5: The process clearly differentiates leadership talent. All high performers are not high potential. However, high potentials are high performers. Sustainable talent management systems identify the difference.

High potential performers have the capability to continue to take on larger, more complex levels of responsibility and often do it quickly. High potential employees are often voracious learners. They take on new tasks and are able to master them quickly. What they most often need is the ability to gain wisdom; the ability to integrate what they have learned and to apply it in varied settings.

Core Principle #6: Address gaps between strategic needs and current leadership capabilities through focused internal development or recruitment of external resources. In sustainable talent management processes, development comes from a variety of sources – coaching, programs, experiences, new assignments within the organization, mentoring, etc. With the application of each type of development there is clarity about what the individual is supposed to be developing from each experience or assignment. Measure the progress. Frequent conversations about the development experience provide feedback to the organization about the potential leadership talent and to the individual.

To drive integration of talent management into the culture, integrate it with critical processes like selection, performance management, rewards and compensation. At the individual level, let people know where they stand (e.g., A, B, C talent) and the implications. These components can be facilitated through Human Resources, Leadership Development, or consultants. They need to be owned by the executive team and leaders/managers across the organization.

Core Principle #7: Talent and the needs for talent are re-evaluated regularly. Your business changes. So does the talent. Sustainable systems identify and proactively address the dynamics of change and the impact on talent needs.

Performance=14% Leaders, 86% Followers

High PerformanceI’d like to share a couple of great pieces on leadership philosophy from 2011 that remain as important and relevant today as they did then.

The first one is a Harvard Business School research study which shows that 14% of a firm’s performance is dependent on its leaders, 86% on the ‘followers’.  This statistic is in an I4CP report about the 5-domains of high performance.  Click here to download the report. It’s an easy read and reinforces a great deal of what our philosophy has been for years — performance comes from the combination of consistent, clearly communicated strategies, leadership that is talent- oriented and committed to the right talent working in an effective, strong culture with a strong market-focus.

Another great piece from McKinsey is about the importance of organizational health on performance. The author’s  central message is that focusing on organizational health -the ability of your organization to align, execute, and renew itself faster than your competitors can -is just as important as focusing on the traditional drivers of business performance. Organizational health is about adapting to the present and shaping the future faster and better than the competition. Healthy organizations don’t merely learn to adjust themselves to their current context or to challenges that lie just ahead; they create a capacity to learn and keep changing over time.  To read the article in its entirety, click here.

Looking to Hire? Make the Sale.

top talentI was asked recently about how to put your company’s best foot forward when hiring in a competitive market. The first thing to think about is why someone would want to work for you.

Recruiting and hiring is a sales process. We usually think that it’s the candidate doing the selling. You and your company need to be selling, too. The best candidates have options so you have to show them why your opportunity is a great one. Show your candidates the WIIFM — what’s in it for me.

Position yourself as a top choice by having the answers to these frequent questions from top performers. They may not always ask them but they are thinking about them.

  • Why would someone want to work here? If you can’t answer this question, how can your possibly attract great people?
  • What’s different about your organization versus where the person is now? How does this opportunity give him more of what he’s looking for and less of what he doesn’t want?
  • What is the culture like and how is it unique? Top performers want to be part of something special. What’s special about your culture?
  • Who works here? People want to work with people they like and respect. Strong performers want to work with other strong performers.
  • What’s it like to work for you? Do you involve people in interesting work? Do you coach and provide feedback? Do you provide development opportunities? Do you help increase people’s visibility in the organization?
  • What will my day look like at work? This is where realism is key.
  • What might my career look like? Is this job the end of the road or are there opportunities to grow with and within the organization?