“The Unnecessary War for Talent” in PRWeek
July 7th, 2010 by Matt WestIf you haven’t picked up the July 2010 issue of PRWeek yet, now’s the time. Not only does Insidedge have an attractive ad (is that biased?) on page 22, but the issue features a thought-provoking op-ed piece by our president, Keith Burton, about the accelerated rate of employee turnover in American companies. If you have a subscription to PRWeek, you can read the article online at www.prweekus.com in the Editorial section. Otherwise, here’s the full piece for your reading pleasure:
The Unnecessary War for Talent
The year was 1835. Charles Darwin, aboard the S.S. Beagle, witnessed an 8.5-magnitude temblor that struck the coast of Chile. When Darwin went ashore, he noticed how the region had been forced up, leading the evolutionist to speculate that the Andes Mountains could have been created by a series of quakes. His observation became one of the most important geologic insights in our history.
The signs are always there. The trick is observing them and learning what they mean.
In the spring of 2008, reengineering guru Michael Hammer told us how a major food company was running a global unit with fewer managers – one for every 56 front-line workers. Everything we learned about organizational effectiveness this past decade told us that a front-line manager should optimally oversee no more than 12 employees to facilitate strong engagement and communications. Yet these food industry workers, once they were briefed on the company’s plans and processes, would be expected to act as self-directed teams.
When our economy collapsed in 2008, companies did what they invariably do when times are tough – slashing jobs, freezing pay and eliminating training and development programs. They cranked up the overtime rather than hiring new workers to bolster the sagging energies and morale of those who had wrenched their way through the downturn. And they asked those beleaguered managers who had taken on ever-larger numbers of direct reports to press on.
If ever there was a recipe for disaster, you’ve just tasted it.
Fast forward to February 2010, when the number of employees voluntarily quitting surpassed the number being fired for the first time since 2008, according to the Bureau of Labor Statistics. Right Management reported that 60 percent of the workers they polled in 2009 said they would quit their jobs when the economy improved – an alarming number.
With the economy improving, our leaders are troubled. They tell us they’ve been hunkered down, worried about profits and operations, without time for mingling with their employees. Only now have they resumed the long march among staff, asking how they’re feeling, what they’re thinking and how conditions can be made better. What they’re hearing is, “You’re too late,” and, “Pay me significantly more if you expect me to stay.” We should expect attrition to grow dramatically in the days ahead.
Why do we always return to fight the unnecessary war for talent? Because employees speak but leaders don’t listen. Because we take up management models that force front-line leaders to choose between certain failure or a new employer that values employee engagement. Because companies slash and burn what employees value most — programs designed to manage, retain, develop and advance high performers.
The signs are always there.