Attending the Vistage Speakers Reception at Ashdown Park this week, reminded me of the many tips and ideas which we take away from our speak...
Sunday, 23 March 2014
Are Your Good People Being Poached? You Need to Make Them Want to Stay!
An excellent and entertaining presentation at my Vistage CEO group this week
from Adrian Furnham, Professor of Psychology at University College, London
whose topic was Assessing People at Work led me to look more closely at the
topic of good employee retention especially in an environment where the economy
is growing and good people are hard to find.
It has been said that an unsuccessful appointment costs, by
rule of thumb, double the salary of the appointee and I would think that this
can be on the low side.
When we consider all the factors which apply such as
management time, disruption, reduction in performance, the need for training of
the new incumbent and much more, then the cost can be horrendous especially at
a senior level in the business.
The fact is that the whole recruitment subject is full of
traps and side issues none of which really contribute to the success of the
appointment and the conventional interview is probably the least effective.
It usually consists of the two parties telling lies to each
other in the vain hope that neither will be found out.Add to that the elegantly and usually
inaccurately crafted CV in reply to an advertisement which has little or no
relevance to reality and you can see how successful the appointment is likely
Kenneth and Will Hopper in their grate book, The Puritan
Gift, suggest strongly that promotion from inside the business is usually far
more effective than parachuting someone into the business from outside with all
the consequent potential issues.
These can include lack of domain knowledge about the
business, lack of existing relationships in the business and, worst of all,
some hidden baggage which wasn’t made apparent at the interview.
We all know that some people are exceptionally able
interviewees and subsequently poor employees which is not normally the desired
Oddly the downturn in the economy over the past few years
has thrown up a scheme which can go a long way to mitigating this problem
and it is that of the appointment of interns.Add to that the growth or in fact the rebirth of apprenticeship schemes
and many recruitment problems dissipate.
I started my business career as an engineering apprentice in
the aircraft industry at the princely sum of £1.2s.6d a week (£1.125p) although
that was increased within three months to £1.5s so I must have been doing
It was an excellent scheme starting with six months of
formal training in the apprentice school and then experience in most
significant departments of the business for the next four years finishing with
a period in the department of choice for the future.
In addition we were expected to expand our learning by day release throughout the five years.
The success of the system is demonstrated by the fact that a
majority of the apprentices reached high positions in technical, commercial and
management roles.Indeed I can’t recall
may people at all joining the company from outside.
Trialling the on-the-job abilities of potential employees is
by far the best way forward and both the intern who is generally unpaid apart
from expenses, and the apprentice, which is a paid position, give the employer
time to get to know the abilities and the drive to succeed in each case.
Ideally management should instigate a regular examination of the talent
in the business and given some courage on the part of the leadership, promotion
of the really competent people irrespective of their current role and the grade
of the new appointment.
There is always hidden talent in a business. Take time to
seek it out, cherish it, develop it, and promote it so that the dance of death
at the interview can be a thing of the past.
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