What people choices do you make in your talent management processes?
Employers make one of three choices when it comes to people choices in talent management. Leaders in South African organisations tend to favour one type of choice when it comes to people; however, this isn't the most effective.
Choice 1 – People as a cost to the organisation
People are seen as an unavoidable cost to be used - even exploited – to the organisation's maximum benefit with minimal training, definitely no development and zero investment in well-being. Any talent management practice is legalistic and is only used to satisfy a minimum acceptable degree of labour law compliance. This choice is - what Ricardo Semler describes as - "buying the grudging compliance of your people" or "compliant loyalty". The type of psycho-social contract in this instance is one of coercion, in other words a relationship based on force to drive performance.
Choice 2 – People as an asset to the organisation
People are seen as an asset in the organisation - even the most important asset. People are acquired, used, traded, accounted for and cared for like any other physical asset. However, in this choice organisations have a sense of "owning this asset"; it's a case of right people, right time, and right place and able to perform optimally.
Choice 3 – People as value unlockers and wealth creators
People are seen as genuine partners in the organisation taking co-responsibility for its longer-term success. People are given a real stake in the organisation and share significantly in the wealth they create. More importantly, this choice is about people willing to perform, wanting to perform and being allowed to perform. In contrast to the psycho-social contract in choice 1, this choice provides a relationship based on meaning and meaningful work.
How do you engage your employees' hearts and minds?
The need is for organisations to go for option 3 given how central people are to the knowledge society. I believe - from my interaction and observation of South African organisations – that:
- They talk option 2, but
- Their decisions and actions reflect option 1.
Because of this gap in talent management, the leadership credibility is under severe threat. It's better to be honest and forthright. Talk and walk your choice as a leader, even if it is option 1.
Within today's knowledge society, it's estimated that 85% of an organisation's assets are intangible. I would venture to say that 70%, plus, of these intangible resources are in the organisation's people in the form of creativity, innovation, expertise, knowledge, skills and experience.
This means that you, as an employer, are intimately entangled with your employees so the people choices you make are vital for the health of your business. In our society, people have become the predominant value unlockers of the potential contained in your organisation's assets. So make sure that your employees are the right keys to unlock these assets.
