How to retain talent under the new workplace paradigm?

The paradigm of work has changed – how does it affect employees and what can be done to retain them?

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How to retain talent under the new workplace paradigm?

Most of us grew up with a clear understanding of how ‘work’ and ‘careers’ works: As an employee you could generally rely on job security and a pension guarantee for your loyalty and obedience to the employer. Practically, the organization ‘owned’ a human asset in a voluntary symbiosis that would end with retirement.
– This paradigm changed fundamentally and even more so in our turbulent and globalized economy. Since my current work focuses on employee retention and engagement, let’s see what has changed and how it affects employee retention.

The ‘old deal’ is gone!
When it comes to employment today, employees understand that they stand alone (though this awakening may have come only recently to the more established generations). Organizations now hire people for their specific skills only as long as they need them and then move on to hire someone else for the next task.

This may well be the reason talent acquisition is often valued higher than talent retention. However, this approach also comes with losses through attrition and may not make best use of the added value that an individual can give the organization over time with through learning, personal growth, developing networks and gaining experience.

One way or another, the old paradigm no longer holds true. And the GenY streaming into the working world have not even experienced it to start with, so don’t expect them to respect and live the outdated rules!

One-dimensional career paths are out!
Under the old paradigm career paths were fixed and oriented ‘upward’ following a pre-defined and linear course of advancement in the position line-up. Deviations from the laid-out career model were rare exceptions.
More likely, an employee had to leave the organization to break out of the scheme when seeking growth in a new or different dimension of interest, to apply newly acquired or dormant skills or to make ends meet along their personal needs. There was not much room to move sideways out of the fixed career track slot into a career up through a choice of other avenues.

While the fixed model made it easy for HR and management, it neglected the potential of the individual employee who can evolve and grow, who may change interests and who may seek new challenges outside their immediate or next-up job description.

Retention is more than offering money!
Employers who wish to retain their precious talent need to offer more than a paycheck and blanket perks ‑ but this does not mean necessarily that they have to spend more money. A competitive salary is expected, of course, but not the #1 driver. Key drivers for the new workforce are career opportunities and customized benefits – money follows.

What today’s workforce is looking for are choices: flexible career paths that broaden the options and offer development opportunities instead of narrowing them down. They want to take control and influence where they are heading in a multi-dimensional space of opportunities and receive recognition for their achievements – empower them! Set clear goals and allow employees to experiment and learn on the way – don’t micro-manage them!

It becomes crucial for every employee to be ‘employable’ meaning to stay attractive for the current employer as well as the next employer under the new paradigm.

When it comes to benefits the time is over for one-size-fits-all perks! Consider non-monetary benefits that cater to the individual’s needs, preferences and independence: Non-monetary benefits may range from education opportunities over a free trip with family or friends as an incentive to flexibility along the work schedule and venue including remote working options.

This flexibility and consideration of an individual’s lifestyle is becoming even more important with GenY, who entertain closer social ties to families and friends than GenX. Networking and leveraging personal connections come naturally to GenY and extend seamlessly also in their professional world.

Shared values and inclusion
Employees increasingly chose employers by the values they share and reflect what they believe in.

Does your employer talk-the-talk or also walk-the-walk? Management tends to rely on communication channels to communicate to their employees that derived from marketing. These channels were originally developed to promote products to consumers through messages broadcasted one-way in a propaganda-like fashion. This practice was extended using new social media but still following the traditions of the old paradigm and without making use of the potential associated with the ‘social’ aspect, which is the power-engine behind the new media boom.

Give it a reality-check! – If your company has a Twitter account, for example, does your company account have only followers but follows nobody else? Here we are back to broadcasting!
If your company follows others, does it genuinely connect and communicate with its employees as well as with people outside the company? Does it engages in open discussions and learns from it?
How many managers and companies truly use social media tools to their full breadth as a two-way street of communication?

Transparency for talent retention
Retention does not have to be ‘rocket science’ even when the work paradigm changed.
What it takes is a degree of honesty and respect from an organization to treat employees fair and help them to stay ‘employable’. Authentic and open communication goes both ways and forms the basis for building trust, employee inclusion and engagement that result in employee satisfaction, innovative creativity and retention.

There is no need to fear transparency and open communication for an organization; failing to do so though is harmful to the organization’s reputation with word spreading fast and employees avoiding workplaces that do not live up to high standards and authenticity.

‘Complexity’ is the 2015 challenge! – Are leaders prepared for ‘glocal’?

In IBM’s 2010 CEO study, the high-profile interviews revealed a game-changer for the next 5 years: mastering the increasing ‘complexity’. Yet, less than half of all CEOs feel prepared for the challenge! – Read what is meant by ‘complexity’ and what the CEOs look for in successful future leaders!

‘Complexity’ is the 2015 challenge! – Are leaders ready for ‘glocal’?

What is the key challenge in the coming years and how to prepare future leaders.

IBM released its high-profile annual CEO study with interview results from 1,541 CEOs worldwide. The focus is on ‘complexity’ as newly identified challenge that CEOs face increasingly over the coming years.

(Note: the study results are no secret and available in the public domain:  http://www-935.ibm.com/services/us/ceo/ceostudy2010/index.html)

Complexity is what develops when a company tries to make their product and services easier to use for their customers and clients. – Why? Look at what we customers expect of the products that we buy these days:

Example – let’s take cars: New cars these days are highly integrated products that go far beyond only ‘taking you from A to B’. As added features we find WiFi and DVD players installed for entertainment. The radio receives traffic reports feed into the car’s navigation system to guide you around heavy traffic. There are distance sensors that automatically sound alarms and engage the brakes should we get too close to an obstacle too fast. Collision detection systems adjust your seat belt and deploy airbags to keep you safe and then call help through the car’s mobile phone system automatically while directing emergency rescuers to the car’s crash scene.

Integration entails inter-dependencies
These technological marvels in a car are integrated to run smoothly ‘behind the scenes’. They also pose significant challenges for the manufacturer that needs to keep the features as easy to use as possible for the customer or run even completely invisible to the customer. Nonetheless, all these components must work together seamlessly in an integrated way that create complex inter-dependencies among them.

This requires the manufacturer to integrate services and products outside their typical ‘automotive’ spectrum and ability. They need to collaborate with other suppliers that may not even have established ties to the car industry.
Note that the traditional product ‘car’ has undergone change to become an integrated ‘mobility and lifestyle’ product.
This increasing technological complexity at an increasing speed translates into the manufacturer’s organization and challenges its leadership.

Is there a ‘magic bullet’?
“The vast majority of CEOs anticipate even greater complexity in the future, and more than half doubt their ability to manage it.” – This fundamental statement strikes me most IBM’s 2010 CEO Study though it does not hold true though for a minority of outstanding organizations, which found ways to deal with complexity and produce 20% profits over their competitors nonetheless!

The ‘magic bullet’ facing unpredictable uncertainties seems a mix of

  • Creativity (it’s the highest ranked leadership quality by all CEOs!) that allow to react fast to a changing environment
  • Integrating customers into their processes
  • Simplifying what organizations do and produce.

Perspective of CEOs in Life-Sciences
Now, how does this translate into our daily work? Most of my professional life I spent in different areas of the Life-Sciences industry in Germany and the USA that I chose as an example. What caught my eye here are the responses by CEOs from Life-Science organizations in Germany and the USA in comparison. – How do they rate the upcoming complexity challenges, how prepared do they feel and what do they look for in future leaders over the next few years?

The 3 Needs
US CEOs (86%) more than German CEOs (81%) expect higher complexity in the years to come but only 45% (in both countries) feel that they are prepared to cope with this new challenge successfully. This opens a larger-than-ever ‘complexity gap’ reflecting the uncertainty on how to operate in the volatile and murky waters of the new business environment.

1. Creativity
Interestingly, the German CEOs rely confidently on creative leadership making decisions quickly (over thorough decisions) in the future by 18% above all CEOs sampled. The US CEOs, in contrast, seem more pessimistic by relying on quick decisions slightly less that CEOs overall. Both, the German and US CEOs equally make integrating customers to better understand the customers’ needs their highest priority

2. Simplification
The CEOs take different approaches to how and how much to simplify: While the Germans seem more radically simplifying products and operations more than CEOs overall, the US CEOs focus on reducing fixed costs willing to increase variable costs to allow for up-scaling ability as need arises.

3. Focus in Emerging Markets
The study including all CEOs proves that 76% aim at the rapidly developing markets. It is not surprising that market factors is their #1 external focus followed by technological and macro-economic factors.

Key Attributes of Future Leaders
What kind of leadership we need to manage complexity successfully over the next 5 years?

The CEOs agree on the following three attributes:

  • Creativity (60%) ranks highest overall followed by
  • Integrity (52%) and
  • Global thinking (35%).

What CEOs are looking for are leaders that understand and collaborate closely with the customers, show strong people skills and have a deep business insight with intelligence data.

The future leaders are innovators able to think on their feet and open to experiments when speed needs to rule over correctness. The capacity to simplify for the customer is crucial. This entails reducing the resulting complexity by stripping what matters down to the core and focus on that. Sound planning may have to give way to situational yet strategic management to avoid information paralysis and gain competitive advantage.  – The coined term ‘glocal’ means to integrate globally using all resources available worldwide while doing locally only what is necessary.

What do you think – are we ready for the complexity challenge? Any suggestions how to prepare?