I don’t like putting people in categories…………Gen Y, Gen X, Baby Boomers, Superstars, Top Talent, Solid Group etc. etc. Why not see the talent, experience, knowledge in all of your people – unleash that potential! To give you a controversial example, let me pose a question. If all of your top 5% (top right-hand corner on the 9 box grid) walk tomorrow – would your business collapse? Odds are that it would not, and probably the day to day operation wouldn’t notice. But if a large chunk of your solid performers left (the middle box, no great ambition but good contributors, maybe a little older) your business definitely would collapse. These are the ones ‘keeping the lights on’.
Now let me ask you another question. Where does the greatest amount, pro-rata, of your salary budget go? Let me guess, the ‘top 5%’? Why? If you are not careful you’ll lose the engagement (maybe not the headcount) of the ‘solid’ people who do the work. So you keep the cost and lose the productivity. In my experience, this approach has, in the past, been routinely adopted by many medium sized international companies with limited salary review budget. It’s a false economy. You’re also not utilising all that knowledge and experience. So why do I do 9 box-grids? Easy, it is the foundation of a discussion about people with Business Unit Leaders. People normally make up 50%+ of an organisation’s cost. I also hear so many times ‘we’re a people business’. So why wouldn’t you spend time talking about your company’s biggest asset and its biggest cost? Seems like a good commercial thing to do. Getting your people wrong is a very, very costly mistake.
In my experience, I’ve found that Business Leaders look forward to the quarterly people review meeting if they get great information, and excellent HR value input (or coaching – because that is what it is). Here’s an idea – why not use some people from that ‘solid’ group and partner them up with employees from the ‘top 5%’. The purpose could be to achieve any number of outcomes e.g. mentoring (could be in life skills, company experience, technical skills etc.), coaching, training etc…….in groups or individually, over the phone or in person etc. etc. The employees from the ‘solid’ group start to feel valued and recognised for what they can give or pass on, the ‘top 5%’ feel that they’re receiving invaluable development (especially if pitched to them properly and followed up in 121 meetings with their Business Leader). The net result is better retention rates of solid, good and key employees (less recruitment & training costs), acquisition of key knowledge by the ‘top 5%’, increased engagement and therefore improved productivity = positive impact on the bottom line. And ultimately you are building a collaborative, happier, culture. And that’s without spending any of the salary review budget (or training budget).
Sound too simple to be true? The best people strategies normally do. The hard work is in the execution – this is where most Business Leaders go wrong. They let the day-to-day get in the way of managing people & leading the business. Execution!
Bio
Mel Missen has specialised for over 20 years in helping to shape and restructure international businesses across Europe, the US, Asia-Pacific and the Middle East, with a specific focus on HR and Operations. Business growth, off-shoring, centralisation, acquisition and disposals have been a core output of Mel’s work, though he is also a true HR Generalist, with a passion for inspiring success through Leadership acquisition and development. Mel has often created or grown his own HR Teams across various geographies, though believes a small, focused, commercially oriented, business astute team adds more value and less cost in the small to mid-size geographically dispersed business he has supported – as long as the HR basics are first in place. In Mel’s view “it’s no good having ‘strategic HR’ if you don’t know anything about the people you employ and/or payroll isn’t working properly.” Mel is very commercially focused, and believes HR is integral to successful business strategy. ‘Does it make money or save money’ is Mel’s first question when confronted with an HR or business issue. Whether it’s part of a longer-term cultural change, part of an overarching strategy, or just a day to day tactical issue – whatever it is we do must be about running a more successful company. Success in turn helps breed culture, behaviour and engagement. And the reverse is also true – culture, behaviour and engagement, breeds success. This is what Mel does – but he’s quick to point out that “it’s not easy – though having great Business Leaders in place does make it a lot easier!”
This article was written by Melvin Missen
