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"Changing the Employment
Standard" Brent Longnecker, Executive VP/Human Capital Services Resources Connection All companies, including emerging companies, are victims of a new employment phenomenon sweeping the world that is changing the corporate employment standard of "paying your dues." Given the high cost of attracting, training and retaining employees, companies must face this new employment standard with their eyes wide open. It's well known that highly talented employees can become quickly frustrated with the tenure and seniority-based reward and recognition plans of the past. Today, the highly talented are finding that they can be recognized and rewarded in a new way. The new equity compensation model, where a 25-year-old can become a multimillionaire virtually overnight, is becoming the new standard against which all other employment opportunities are being measured. Even though only a small portion of new emerging businesses ever succeed, the perception that all are successful has overtaken reality and, in its path, the employment model of yesterday is being trampled. It's because of this change to highly leveraged equity compensation packages that the attraction and retention issues facing today's leaders are more complex than ever. Shortages of talent are placing a large constraint on corporate growth, requiring business leaders to evaluate alternatives to acquire talent. Leaders have to make hiring decisions that are in the best interest of the company and its shareholders for both the short- and long-term. As a result, decisions centered around whether to hire a consultant, outsource a function, utilize a project professional and/or hire a permanent employee are more crucial than ever before. Once the talent has been hired, retaining the talent becomes the next challenge. Reward and recognition programs are one of the best human resources tools used to retain top people. If individuals feel valued for their contributions and are adequately rewarded, they will be more inclined to stay at an organization for the long-term. The ability to attract and retain employees has bottom-line impact, increasing an organization's ability to achieve a sound Return on Investment (ROI) on its "human capital investment." As you review your reward and recognition plans to evaluate their effectiveness, keep in mind:
There are an incredible amount of strategic and tactical activities that go into successfully attracting, motivating and retaining the type of top talent needed in today's competitive environment. It is a miracle that today's leaders can maintain a semblance of sanity. With the new employment phenomenon "sucking out" talent like an enormous black hole, it should come as no surprise that most of today's leaders sleep with their eyes wide open! (Brent Longnecker, CCP, CBP, has more than 17 years of experience in the analysis, design, and implementation of innovative performance, productivity enhancement, and cost savings programs. Resources Connection is a project-based professional services firm specializing in accounting/finance, information technology, and human resources. Resources employs over 1250 employees and project professionals and has 37 offices in major U.S. cities and global offices in Canada, Taipei, Hong Kong and New Zealand.)
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