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No Luxury or Fad

1/4/2013

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On January 9, The Conference Board announced findings from its’ CEO Challenge 2013 – a survey of CEO’s, presidents, and chairmen from over 700 companies worldwide.

The leading challenge named was:  human capital — how best to develop, engage, manage, and retain talent. The Conference Board concluded, “In an environment of slow economic growth and limited opportunity for double digit business expansion, continuous improvement of internal capabilities is no luxury or fad. It’s a prerequisite for organizational survival.”

For many years, companies have focused on Talent Management.  The focus has been on three foundational elements – attract, develop, and retain.  I believe they missed a critical ‘integration ingredient’ to maximize performance – Employee Engagement.  Let me illustrate.
  • If an organization wants to attract the best talent, then engagement is critical.  It’s not the engagement of the potential new hire but the engagement of the existing workforce.  When current workers commitment, effort, and loyalty (engagement) is low, then they are not great advocates to potential new hires.  The defining moment is when a potential new hire asks an existing employee – “how is working in this organization”?  High engagement increases the chances of a favorable response.  People want to join organizations that others thrive in.
  • If an organization wants to develop the best talent, then critical people processes like performance management, career development, and succession planning must be a leadership priority and executed with excellence.  These “develop” processes are also critical in engagement.  Employees want to improve themselves and their resume – for advancement either inside or outside your organization.  
  • According to a survey by AMA Enterprise, a division of American Management Association, one in three employers expect turnover to rise at their organization in 2013.  Not all turnover is a bad thing. Keeping disengaged employees who just show up – put in minimal effort - are restless and distracted – do not represent your products and services well to customers – is not the answer.  Your objective is to retain engaged employees.  Their skills, experience, and company “know how” will give your organization a competitive edge.

Increase and improve your internal capabilities by successfully integrating employee engagement into your efforts to attract, develop, and retain talent.  It will help you crack the code to Human Capital Excellence!
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