Continuing the series on the four stages of the talent cycle, once the hard work has been done to bring new talent into your organization, it’s time for them to deliver value before transitioning to a new role. These metrics will help ensure a mutually beneficial and productive working relationship between employees and employers.
For the delivery phase of the talent cycle, the two most important aspects to manage are performance and engagement. Although the latest trend is to reject the bell curve (i.e., normal distribution) for a power function, any organization with a team size larger than 2 has to address performance management in both absolute and relative terms. Ensure that your performance management system–which could range from a piece of paper to an enterprise application–can help you answer the following questions in dialogue between leaders and employees:
- Absolute performance: how is each employee performing relative to his/her potential? What is he/she doing well, and should do more? What is he/she struggling to do, and what support can the company provide? What are the employee’s career goals, and how is his/her current position aligned with them?
- Relative performance: does the employee “raise the gene pool” of the organization? is the employee negatively impacting the quality and enjoyment of other employee’s work experience? What capabilities can the employee role model for the rest of the team?
Performance reviews (I recommend every 6 months rather than annually, to keep the feedback fresh) naturally lead to transitions. Some employees will be ready for more responsibility and promotion, others no longer fit the organization and need to rotate out. Succession planning and attrition will be the subject of an upcoming post.
Engagement is the most broadly applicable metric, providing insight across all phases of the talent cycle. The most straightforward and pragmatic way to gauge engagement is with a 2 question survey:
- How likely are you to recommend working at this company to a friend or colleague? Answer on a scale of 1-10, with 10 being most likely.
- What one thing would need to change for you to give a higher rating? Open text response.
Gallup’s method to capturing engagement data is another statistically validated, relatively brief (12 questions) survey.
As the modern economy shifts more towards services and technology, managing the talent cycle is an increasingly important skill for leaders to master in order to maintain a competitive advantage. While it will always be a subjective, personal experience, the intent of setting out these metrics across the talent cycle is to help reduce the complexity of the process by introducing some standardization and objectivity.