The economy is improving. The stock market is hot. Business is picking up in many sectors. Most importantly, unemployment numbers are finally starting to decline, albeit slowly. That is all good news! But beware. Just as companies start to breathe a collective sigh of relief, a very different problem may lie ahead.

Years of economic stagnation caused many companies to reduce staff, lay off less productive workers and keep only top producers and performers. In turn, employees were squeezed to do more and earn less. Raises and promotions disappeared. For many, job satisfaction eroded. Still, the thought of finding a new job during the worst economy in nearly a century forced many to stand pat and put up with less than favorable work conditions. That was then. This is now. As the economy recovers, companies may find themselves in the odd predicament of losing their key performers just when business is revving up. Sales and management superstars, who have been wearing multiple hats and working long hours waiting for market conditions to improve, may be tempted by offers to join competitors, start new businesses or head up expansion opportunities for growing businesses.

Nurture Your Rainmakers and Linchpins

Every company has people that make things happen. Some are sales gurus, also known as rainmakers. These are the people who were able to generate sales precipitation even during the Dust Bowl recession. Some are top managers, the linchpins of an organization. In agriculture, a linchpin is a fastener used to prevent a wheel or other rotating part from sliding off its axle so that the wheel keeps rolling. In a company, the linchpins are those managers who keep all the projects and staff moving and producing.

The rainmakers and linchpins of each organization are pivotal to the company’s success. These are the people hardest to replace and most likely to be recruited away. A brain drain could leave businesses that survived the recession in worse shape than ever. There are ways to keep that from happening. While some attrition is bound to happen, savvy leaders can stave off major defections.

Strategies For Keeping Top Talent

1. Increase Compensation.
As the saying goes, money talks. People work to earn a living. It is as simple as that. Cold, hard cash is a guaranteed motivator, as long as it doesn’t come too little, too late. A raise offered to a key employee after a letter of resignation is tendered is unlikely to sway a pivotal producer and sets a bad precedent for both the leadership and the employee. The trick is to offer financial compensation before one foot is out the door. Companies that are still a little worried about profit margins should tie compensation increases to measurable results.

2. Provide Stability.
Money may talk, but job security and the promise of long-term employment is what keeps top talent from jumping ship. A company that rewards employee loyalty with company loyalty is likely to have less staff turnover than companies that treat staff as expendable. Some ways to communicate to key staff that they have job security are through measures such as performance reviews, senior titles, and promotions. In addition to money, these strategies let preferred personnel know that they are valued employees that the organization wants to keep.

3. Acknowledge Milestones and Benchmarks.
Smart organizations make it a point to remember, recognize and reward career milestones and individual benchmarks. For example, Google gives awards to those engineers and developers who come up with the most inventive, useful or financially beneficial tools developed each year. Top sales organizations will reward the top producers. Many companies reward milestones such as 10 years of service, closing a certain number of deals, or revolutionizing a key process.

4. Give Praise.
If raises, promotions, and increases are not an option or don’t work (which, frankly, doesn’t happen often), then there is something that sharp leaders can do which does not affect the bottom line: give praise. A pat on the back recognizing a job well done is something that every employee will appreciate. It is easy to do. It costs nothing. And it may give a key employee a feeling of camaraderie that will keep them a part of the team. A departmental e-mail or a public acknowledgment during a meeting often goes a long way to foster loyalty. Unlike most other rewards, praise is it not only recognizes talent but also a job well done, which will also motivate other employees to try harder.

5. Embrace Employees.
Recruiters often talk about whether an applicant would be a “good fit” for their company. That type of thinking goes both ways. While every company has its own unique culture, employees want to feel that they are accepted and respected in that environment. Those who feel that they and their ideas are respected and their opinion counts are more likely to stay put and pass up other opportunities. This is especially true of top talent who are more likely to be pursued by recruiters.

6. Provide Opportunities.
Rainmakers, linchpins and other top tier talent are more likely to remain loyal if they are afforded work opportunities that they value. Such mavericks thrive on being successful and soaring to new heights. If they are boxed into a corner, doing work that neither challenges nor stimulates, they will eventually look for a position that is more dynamic. Good leaders should seek ways to give the company’s key producers a way to continue to grow, learn and expand their careers.

As the economy rebounds and sales picks up, it is equally important for companies to ensure that staff turnover of top talent stays low. Losing top producers and performers at this juncture could be a huge setback. In addition to the cost to recruit and hire staff who are hard-to-replace (which is estimated to be $55K for a top-level manager), there is also a cost to train new hires and time lost on the learning curve until they are up-to-speed on the company’s products, services and processes. Most importantly, there is no guarantee that new talent will be as good as those they are replacing.

QUOTE OF THE WEEK
“Start with good people, lay out the rules, communicate with your employees, motivate them and reward them. If you do all those things effectively, you can’t miss.” Lee Iacocca

© 2011 – 2012, Keren Peters-Atkinson. All rights reserved.