AUGUST 2006
Commitment to excellence in staff matters

by Randal Godden, Chairman and CEO, at TEC South Africa
This article was first published in Real Business, a supplement to Business Day which appears on the third Monday of every month.

Each month our professionally chaired groups of Chief Executives and owners/operators meet to discuss and critique the difficult issues facing our businesses. One topic that emerges consistently is the challenge of recruiting, developing and retaining good employees in today’s competitive business environment.

The task is increasing in difficulty and made more challenging due to many factors, including:

1. A shortage of skilled workers generally.
2. The BEE skill shortage and competition.
3. Two major workforce elements: the 50+ age group and generation “x” and “y”. (Generation x and y have a different work philosophy to the “older regime”.)
4. High performers can and do regularly change jobs.
5. Many employees complain of stress and burnout.
6. Many companies do not have planned programmes to aid retention.
7. Many employers still manage time and task rather than agreed measurable outcomes.
8. Increasingly for employees, life balance and fulfillment are key career priorities.
9. Fundamentally, there is a “war” for talented staff.

To help us analyse and understand this critical issue, we engaged a resource speaker - Sandy Asch, from the US. Her philosophy is that to be successful in a quest for talent, organisations must create an environment that provides more than just good reward systems and incentives.

Talented staff want to work for organisations with talented people, where managers are enlightened, leadership is respected and employees enjoy a positive experience. The idea is to become an Employer of Choice, which embodies the following key elements:

1. A commitment to excellence in all aspects.
2. Constantly striving for high productivity.
3. Ensuring full engagement of your people.
4. Providing inspired leadership
5. Developing Managers of Choice (ie: managers we would choose to work with).
6. Relentlessly focusing on matters of importance
7. Ensuring a constant balance between the needs of the organisation and the individual.

In particular, Leaders or Managers of Choice should embrace a number of characteristics nicely couched in the following mnemonic:
                                                                                                                                   
C ourageous
A uthentic
S ervice Oriented
T ruthful/Honest and open
L oving/Caring
E ffective/outcomes driven.

When we create an Employer of Choice environment there are significant advantages, which include:

1. The ability to attract quality talent more easily.
2. Enhanced talent optimises performance.
3. Enhanced talent retention.
4. Increased employer loyalty.
5. Reduced employment cost.
6. Lower stress levels and improved workflow.
7. Customers and stakeholders attracted by positive image and culture.
8. Enhanced financial performance.

With regard to financial performance, a Fortune magazine study of Best Companies found that, compared to S & P 500, stet results were up by a factor of three, and that staff turnover was reduced by at least 50%

The core element is to develop Managers of Choice in your organisation. Too often, managers are selected because they are the most skilled individual in that field, without due regard for their people management capability or potential. The Manager of Choice will care about their staff and be empathetic (not sympathetic), and will, at the same time, delegate effectively, involve staff in decision making but, none the less, hold people accountable for their agreed area of responsibility. The outcome will be staff that are loyal, dedicated, committed, involved, engaged and effective. 

In most organisations people are one of the most significant cost elements - if not the most - and should be your most important asset. As managers and leaders, the task of locating, recruiting, developing and retaining talented staff is one of the most crucial. Creating an environment of excellence and striving to become an employer of choice will make the task simpler and more effective. Importantly, it also brings a host of advantages, which makes adoption of the strategy very compelling.

Ends