For many organizations, including nonprofits, employees are seen as another cost to be controlled due to the increase in labor costs year after year. It is not unusual for organizations to downsize, merge, eliminate positions, or replace older employees with younger workers in an attempt to control costs; however, this strategy negates the value employees bring to the workplace as they are an important resource to develop, reward, and retain. Trust issues are also created with this strategy because employees feel like easily replaceable commodities instead of cherished resources contributing to the company’s success. Would this strategy be changed if employee value could be listed as an asset on the balance sheet?
Employees bring value to a company through their individual skills, knowledge, talents, and abilities, but to develop their potential and keep them engaged and motivated, employee performance must be effectively managed. Managers need ample time to effectively support their employees in core activities and engage them in on-going conversation. Clear expectations must be set regarding employee behavior and activities undertaken to guide employee performance. When measuring performance, managers should not use vague terms such as dependable, excellent, and reliable; rather, they should focus on more specific behaviors and outcomes such as displaying leadership, meeting deadlines, and achieving goals. The goals they set should be relevant, achievable, and time-restricted as this is what connects rewards that are valuable to the employee with the performance measure being improved upon.
Talent management represents a new way to manage and increase the value of employees as a source of competitive advantage for your organization by focusing on continuous feedback, achievable goals, and accountability. Organizations that make talent management practices a priority achieve higher returns on their investment from their employees. Specific competencies must be developed within a company in order to retain the best people, keep them motivated, guide their performance, and minimize turnover costs. By acknowledging the great value employees bring to the company, you can achieve top-level organizational performance. Are your employees a priority? Make them one today by contacting Marina Barron for more information on helpful talent management practices.