Hi! Managers: Appreciate your real assets - people
We often hear companies say that "our people are our assets" or even our "most important assets". Yet, many companies do not handle the human capital they manage in a way that reflects this sentiment.
Most companies would agree that their growth and competitiveness depend on attracting qualified, smart, committed, adaptable employees and ensuring that they work together effectively in an organisation so that the companies' strategic objectives can be achieved. However, many companies do not appear to put people management at the core of their business strategy. Management of financial capital, production facilities and other tangible and intangible assets seems to attract more management time and resources, and be more integrated into a company's business strategy, than management of human capital. When the message and actions do not match, this undermines the credibility of the company's leaders. Further, under-appreciated employees may become frustrated and perform sub-optimally.
Each employee has a role to play for the company to succeed. Therefore, each employee should understand the relevance and impact that his/her job, talents and skills have in relation to the company's objectives, and should be treated with respect. The company's leaders are responsible for managing employees so that their talents/skills are used to the company's best advantage. They must also put together a workforce that is a portfolio of talent segments required to achieve a company's goals; manage, develop and maintain such assets so that they appreciate; and ensure that they work together effectively. Prof John Boudreau (Centre for Effective Organisations, University of Southern California's Marshall School of Business, cited in "A Talent for Talent" by Rawlinson, McFarland and Post) suggests a "portfolio approach" to managing human capital. He advocates the identification of "pivotal" talent segments in the portfolio, and focusing learning and development efforts accordingly.
Each talent segment of the portfolio is important. Employees in different talent segments (and even within one talent segment) are motivated by different aspirations and concerns. They may need different training and development. Different employee value propositions attract and retain them. This is particularly true in the global business environment in which most companies now operate. The diversity of workforces in terms of gender, age, nationality, background, experience, family and personal situations results in a variety of individual expectations requiring a range of career alternatives and effective HR solutions.
Some companies focus their talent-management strategy solely on top performers on the basis that they contribute most to the achievement of the company's goals, and therefore deserve a significantly higher proportion of management attention, resources, training and compensation than average employees. This "Chosen Few" approach can be damaging to the effectiveness of the company as top performers (and potentials) do not operate in isolation but work within an organisation that is filled with valuable, competent, reliable performers that make strong contributions. These "Vital Many" (a term used in "Making Talent a Strategic Priority" by Guthridge, Komm and Lawson) also deserve appreciation in the form of motivation, development, attention and recognition if the organisation as a whole is to operate effectively. Myopic focus on top performers/potentials alone may de-motivate and frustrate the other employees, and late-developing talent may be missed.
Ramalinga Raju of Satyam (cited in "A Talent for Talent") talks about enabling "ordinary people to achieve extraordinary results". This noble goal requires a strong talent-management strategy that truly reflects the concept that employees are a company's most important assets. A talent-management strategy designed with genuine appreciation for the diverse and valuable talents and contributions of a company's workforce will go a long way to realise the value of such human capital and help it appreciate.
Celina Chew is senior Bayer representative for the Country Group North Asean and managing director of Bayer Thai. Follow her article every second Monday of the month.
