Talent management in high tech – Part 2: Management development, succession planning, culture

In the high tech industry, the manager’s role is impacted by how high the skill level of the workforce is. Close monitoring and supervising only alienates employees who are used to a more self directed style. Managers must balance between the need to develop their employees and get the deliverables out the door. Many managers get promoted from individual contributor roles and don’t necessarily have any formal education in management. However, having worked in a team based environment, almost every manager has had opportunities to lead a team without the reporting authority, which is a great way to gain leadership experience. Management and leadership development is an area where high tech companies invest their training dollars.

When it comes to grooming senior leaders, succession planning is a process that is typically in place only in larger high tech companies, although it is equally important for smaller companies, who may be even more vulnerable for gaps when a key contributor leaves the organization. Succession planning basically serves two purposes; It manages the risk and proactively prepares for having choices of good candidates when positions open. It also systematically clears the path for high performers who company wants to invest in. In high tech, where the right mix of domain expertise and functional knowledge is sometimes elusive, succession planning takes a hard look at the best talent for the long haul. As high tech companies go global fairly early, international assignments are not rare.

There is something distinct about the high tech culture. We see comics about the software engineers in their loafers and shorts. The high tech industry is certainly more casual than, say, the banking industry. The employees have come to expect a more comfortable setting, and for some it is quite important. Autonomy and low bureaucracy are sought after cultural dimensions. Heavy manuals, helicopter managers and long policies are not too welcome. In exchange for flexibility, the employees accept and sometimes expect a fast pace and long hours, especially around product releases. However, as the generational  mix changes, and the talent war and need for innovation force the companies to reach out to more diverse candidates, work/life balance is becoming a higher priority even in the high tech industry.

High turnover is not the hallmark problem of the high tech industry. Employees come to stay in the company, as long as they get challenged at work and the work environment stays positive. Engagement and productivity may be tougher nuts to crack. With high paying jobs, it is critical that the employees feel compelled to give their 100% at work. The high tech companies that find the key to the hearts and minds of their employees gain sustainable competitive advantage.

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Talent management in high tech – Part 1: Talent acquisition, rewards and performance

 

Source: Bersin & Associates

 

Bersin and Associates just released their new framework for talent management. In my opinion, it’s an excellent illustration of what’s involved in building a high performing workforce. You start with the workforce strategy. You attract the right talent that fits your plan. You manage performance, select the rewards that fit your strategy, and develop your employees. You create the right environment to engage your employees. You develop managers and groom leaders. You shape your culture to win. When you optimize each building block, just listen to your organization humming. Each industry has its own challenges and advantages. In today’s and next week’s blog I will examine high tech.

High tech is characterized by its highly skilled workforce. Often the entry level expectation is at least a bachelor’s degree. In engineering, there is fierce competition for some specialized talent, whether it is a certain engineering field, or a rare combination of software language skills. In marketing and sales, the companies are looking for the sweet spot of technical background and functional expertise, trying to find the right balance between the two. In many instances, a complex sales process is involved, which requires business acumen, seasoned opportunity management and the account management skills of the sales people. As in many other industries, if the high tech company manufactures it products, its logistics function, support staff and managers must be increasingly familiar with outsourcing and off shoring. As the applicants are tech savvy, more and more recruiters are turning to social media to source the candidates.

As the applicants are screened, a high IQ is just table stakes. What differentiates candidates is their EQ – emotional intelligence. High tech companies develop new products in a team based environment with tight schedules. Hitting the market window is critical for revenue and profit targets. The employees must be collaborative and able to adapt to change and a fast pace.

When it comes to rewards, most high tech companies’ reward philosophy is pay for performance. Merit increases, bonuses and equity are distributed based on the performance levels of the employees. This creates some requirements on the performance management process and management skills. The stakes are higher for a fair performance evaluation, when the employee’s compensation is linked to the manager’s assessment. Many companies use some type of forced or guided distribution to be able to manage their rewards budget – not everyone can get the highest rating and richest reward package. Manager training and guidance on consistent performance standards is another way to get the ratings closer to a normal curve. When forced distribution processes are not managed and communicated well, they pose challenges in creating a competitive culture and a perception of internal politics, and some high tech companies have faced employee lash out on this practice.

Next week: Talent management in high tech – Part 2: Management development, succession planning, culture

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Don’t be so sure your employees will stay forever

Gallup’s recent survey reveals that 70% of American employees are disengaged at work, 18% of them actively disengaged, in other words actively resisting company efforts and recruiting other employees on their side. The other 52% are going through the motions, not really excited about the vision of their employer. The recession has kept them from leaving, but as the economy is turning around, the grass is getting greener and fast.

Obviously, the key to retention is to have the basics in place:

• Opportunities to grow and learn.
• A supportive supervisor that provides clear expectations, feedback and coaching
• Good relationships with coworkers
• Clear and inspiring company vision that ties to daily work
• Recognition for good work
• Tools and resources to do a good job

Smart companies get their employee feedback on these elements frequently and act fast to correct any gaps. Depending on the size of your company, you can use focus groups, surveys or a combination of both. Good talent management processes, investment in management and leadership skills result in improved retention.

Short term, your first priority should be your actively engaged employees and high performers. Schedule ‘stay interviews’ with them to discuss what keeps them engaged, and to identify any potential obstacles that might turn into attrition triggers. Take time to share your appreciation for their contribution and energy. Be mindful that one of the typical mistakes managers make is to keep on piling more work on the star performers, because they keep delivering – until one day it’s just too much and they leave.

For the whole team, it is important to see a clear vision of a brighter future. They have been through some tough times, and other companies may seem more attractive just because they are a change of scene. Be a transformational leader and paint a picture they can all see. Set clear milestones they can believe in.

Pay special attention to growth opportunities. If you can’t afford training, you can certainly afford stretch assignments, coaching and mentoring. Talk about career aspirations beyond the grim today. Be creative.

Facilitate deeper connections at work. It doesn’t have to be an expensive party. Maybe you will take some time in the beginning your team meetings to talk about some unique details about each person you didn’t know before. Start by sharing something about yourself. Close work relationships improve retention and engagement.

What other things have you done to keep your employees?

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Copyright 2010 Liisa Pursiheimo-Marcks, all rights reserved. SVPGMGDX8TEC

Do we need performance reviews?

If you believe research, we don’t need performance reviews to improve performance. Reviews seem to have no impact on individual performance. But hold off, before you jump and hit the delete button, read a bit further. Performance reviews serve another purpose. When they are done well, they improve retention. Performance reviews are a great opportunity to rerecruit your good performers and spend some quality time together talking about their future aspirations. So don’t stop doing reviews, just do them differently.

Performance reviews usually cause apprehension in employees and create hectic scurrying around for managers. For evaluation purposes, the review should be just a summary of the feedback the employee has already heard throughout the year. It should never include any surprises. It’s a good chance to look back and recognize the best accomplishments. It pays to focus on the positive. In a study on performance management approach, a strengths-based approach to management resulted in a 36% increase in performance, as contrasted with a 27% decrease associated with a weakness focus.

But hey, what do you do with low performers? You certainly shouldn’t wait until the review time to address their performance issues. If you use annual reviews to force your managers to deal with low performance once a year, you have a bigger problem than mind-numbing performance reviews.

As many companies use performance rating system that feeds into many other processes, such as rewards planning and succession planning, the performance review is a natural opportunity to be transparent about the implications of the performance rating and the employee’s standing in the talent pool. The manager’s job is easier if the rating process and its link to the other processes are objective and logical. Contact Forte Consulting if you need help with this.

The performance review should be forward looking. As you discuss the goals and results of the past year, probe for what the employee learned and wished they had known. When you give behavioral feedback, turn it into concrete development goals.

Many companies combine the performance review and the goal setting dialogue, as they easily flow together. As you plan next year’s goals together, look at them from a development perspective as well. What will your employee learn from each goal? Could there be an assignment that would be especially beneficial on their career path? What skill development and coaching will the employee need to be truly successful in accomplishing the goals?

Don’t miss the opportunity to ask questions about what keeps your employee engaged in your company. Ask about what makes them stay. Ask about obstacles. Talk about their long term career aspirations. Performance reviews just might turn into valuable dialogues that provide insight to both you and your employee.

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Copyright 2010 Liisa Pursiheimo-Marcks, all rights reserved. SVPGMGDX8TEC