Business, Business Insider, employee engagement, employee tenure, Human Resources, Leadership, Management, Michael Watkins, Payscale, Recruitment, SHRM, Surveymonkey, talent intake, talent management, US Department of Labor
Most leaders would agree that having the right talent on their teams is essential for success, and recently Build Network has confirmed this hunch in a leadership survey. The goal of this post is to provide some structure to the talent cycle and help leaders get the most from their talent by segmenting the tenure of any employee into four phases: Intake, Development, Delivery, and Transition. While similar to the four stroke engine cycle, we’ll try to limit the amount of compression and ignition we put our employees through.
Except for the stereotypical Japanese salarymen, very few employers expect to need more than one hand to count the average tenure of staff. And while the US Department of Labor’s 2012 data showed average tenure across all industries has increased to 4.6 years from 4.4 in 2010, data compiled earlier in 2013 by Payscale showed employers in retail and IT companies should expect closer to 2, as reported by Business Insider. And based on the bankrupt and bailed out companies at the other end of the Payscale list, and the bankrupt and bailed out countries in the OECD data set from 2011, seeing tenure rise above 10 years should be a warning sign (especially when long tenure comes along with unsustainable pension obligations).
So let’s make the math easy and propose you’ll get 2 years of contribution, on average, from your employees. I’m defining the Intake phase as the period from the first touch during recruiting through the first 90 days of employment. Take off the last month before exit for Transition, and we are left with 20 months. So if the goal is to maximize the contribution to the business from each employee, it’s important to “compress” the Development period, which I’m defining as the length of time required for an employee to become fully competent in role.
- Intake: starts with first contact with a prospect during recruiting, ends at day 90 of employment. Recruiting, onboarding, and orientation are key processes. Coordination between HR, Facilities, IT, Finance, and hiring managers is essential to establish new employees with high engagement and reduce early exits.
- Development: from day 91 through the point at which an employee is fully competent in role. Coaching, training, and peer support will help ensure employees can contribute high quality work, independently, as quickly as possible.
- Delivery: could be as short as a few months for organizations with low overall tenure and long intake and development periods.
- Transition: allowing for knowledge transfer from an outgoing staffer to the incoming hire. Internal promotions will allow for longer transition periods, but most US employment agreements expect only 2 weeks notice.
An upcoming series of posts (linked in the list above) will look at the key metrics to track in each of these phases of the talent cycle, along with the most important processes to streamline in your organization to ensure your team is happy, developing, and delivering at each phase of the cycle.