TM - August 2007 - (Page 41) performance will find it increasingly difficult to keep top talent, particularly young talent. A variable compensation plan that differentiates pay based on performance will promote excellence — rigid plans tend to lead to an average workforce. • A flexible culture. A casual dress code, flexible schedules and the opportunity to telecommute are just a few ways companies can give hardworking employees added freedom to perform their jobs. • Opportunities for ownership. Allowing highpotential employees to have full responsibility for an area of the business, small or large, is key to personal development. It also builds strong ties to the company. •Retraining or terminating employees whose performance does not meet performance standards. Tolerating substandard performance can negatively affect the retention of high-potential employees. Step 3: Focus on Execution time with high-potential employees, engage them in brainstorming sessions and ask them for ideas. 2. Tailor communication styles to the employee’s preferences. Millennials might prefer electronic messaging or e-mails as a means for staying in touch, and members of Generation X might like face-to-face meetings or a phone conversation. 3. Don’t keep high-potentials programs a secret. Reveal selection criteria and provide others with a score board to measure their performance against as a way to build trust in leadership and encourage the development of prospective highpotential employees. 4. Create customized and achievable development plans. Once high-potential employees are identified, develop customized development plans that will create opportunities for them to thrive. Also keep them abreast of their progress and what they need to do on a continual basis to remain high-potential employees. Many companies have found this to be a crucial retention tool because it is difficult for other organizations to replicate. 5. Make high-potential employees aware of the company’s long-term commitment to them. Human assets should be managed like financial assets with a long-term perspective. Acknowledge that change is a part of both home and work and openly discuss both business and personal aspirations that might affect performance (e.g., raising a child, caring for an elderly parent, taking a leave of absence, etc.) 6. Celebrate the program and provide both formal and informal recognition. Recognition and rewards should be personal, establishing a positive and tighter bond among an employee, the manager and the company. To develop such a bond, recognition should be given on a routine basis, not just at the annual employee-appreciation event. Creating an environment in which people feel valued will make it that much harder for high-potential employees to leave if opportunity knocks at another company. Society as a whole celebrates talented individuals and encourages them to receive additional training and development to achieve greater results. The same should be true in business. The results a company gains from developing a high-potential employee far outweigh the risk and cost of continually hiring individuals from the outside. These types of programs require time, commitment and money to be effective, but companies enjoy the returns from such investments for years to come. Norman Schippers is the Southwest region managing director of consulting firm Capital H Group LLC. He can be reached at editor@TalentMgt.com. As with any new or revamped program, there is always the fear that a high-potentials program will fail or at least not generate a high return on investment. Although many factors can affect the overall success of such a program, one in particular seems to rise consistently to the top of the list: execution. Some of the main reasons why programs fail include: • Companies confuse high performance with high potential. A person can be a high performer and not be a high-potential employee. Understanding this balance is critical. Performance measures how employees achieve results in their position. Potential measures employees’ capability to perform at a higher level within the organization. Many times, companies assume the best performers make the best leaders, but this is not always the case. • The program is perceived as a secret society for management’s “friends:” The criteria and objectives of the high-potentials program must be welldefined and communicated openly to gain employee buy in. • Human resources becomes the designated champion. The champion for the program should be the CEO or a visible business leader. • The lack of results. If the high-potential employee pool is not used to fill leadership positions within the organization, the program is not satisfying the company’s needs, and confidence will be lost. Improving Execution and Boosting Retention A high-potentials program can be complex to implement and maintain, particularly in industries facing a highly competitive market for talent. Here are a few ways to ensure your program effectively develops and retains your high-potential employees: 1. Make a personal connection, as well as a professional one. Executives should spend one-on-one talent management magazine www.TalentMgt.com 41 August 2007 http://www.TalentMgt.com
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