The best ways to reward and retain top talent when money is tight?

Ingrid Kast, CEO at DAV - September 2010

We have interviewed and spoken with thousands of top candidates over the last 35 years. We've discovered that more often than not, compensation isn't the only reason we are able to get top talent interested in a new opportunity. This is not to say compensation isn't important but most of the time it's a secondary concern.

The clincher is more often environment, culture and opportunities for growth. People make decisions based on what will make them happy, and offer scope for development that brings a sense of accomplishment.

The same is true when we speak to potential candidates, especially on search assignments, to gauge whether they are ready for new opportunities. It's usually quite clear that when a person has a great relationship with their employer and loves the corporate environment, it usually doesn't matter what salary is offered - they prefer not to move.

After listening to many top candidates it's been confirmed to us again and again that it's all about the way people feel recognised and are engaged with their company. Their level of engagement becomes their level of loyalty.

After listening to many top candidates it's been confirmed to us again and again that it's all about the way people feel recognised and are engaged with their company. Their level of engagement becomes their level of loyalty.

Looking for impactful and meaningful work is the main reason top talent contacts DAV. People usually want to contribute to something big and have an impact on the results of a company, and under these circumstances people can more fully engage. When direction is lacking, employees become frustrated and disengage. They want to know what is expected of their role and be constantly challenged.

Giving your best people additional challenges doesn't mean you have to constantly expand their responsibilities. By example challenge can be through a special project, which stretches strategic thinking, or perhaps an involvement with an inter-department project. We find that it doesn't take much of a good persons time focused on impactful and meaningful work - as little as 5% - to make a difference.

With younger generations entering the workplace we are seeing the emergence of new trends. One is that companies are starting to give their best talent space to work on personal projects. Hired because they are smart, their minds are constantly working on all kinds of subjects, some directly related to your business and others only marginally.

The motivational value of giving talented people some space to work on personal projects - even partly on company time - will increase their commitment to the job for which they have been hired. And often ends up contributing return value to your company.

The motivational value of giving talented people some space to work on personal projects - even partly on company time - will increase their commitment to the job for which they have been hired. And often ends up contributing return value to your company.

At DAV one of our consultants writes and publishes a high quality magazine. Although we know this takes some of her time, we realise that as it grows so does her motivation and her loyalty. What she learns reflects in her performance for DAV.

Learning and development are essential for top performers. Give some time off to attend classes, bring a topic expert in to speak to a group, provide opportunities to participate in workshops, offer an online training programme or encourage involvement in professional and trade associations. These types of opportunities can often be performed outside of working hours and the ROI to the company can be huge.

Helping people plan their career paths provides a deeper involvement in the workings of the business. I've always found that a personal career development process works well for top talent. Too many organisations are fearful of developing top talent to the point of potentially losing them. In fact, the truth is that if an employee feels trusted enough to have their career developed they will be loyal.

Recognise people, show respect, trust them… and communicate. These are the least expensive and most often overlooked ways of retaining top talent.

So many times we've heard from candidates: "No matter how much I contributed, how many times I went above and beyond, or how many times I missed my kids activities, it always seemed just part of the job. Never even a thanks or a small pat on the back." Yes, it is part of the job, but people will work far better for a manager who shows appreciation.

Value your talent. As trite as it sounds, people like to know they are valued for their contribution. Top talent does not want to be taken for granted.

Value your talent. As trite as it sounds, people like to know they are valued for their contribution. Top talent does not want to be taken for granted.

Most meaningful actions involve showing respect, trust, and confidence. Some examples, from candidates, include:

• My boss stops by my desk each day, just to say hi.
• I was given a difficult customer to assist. The message I heard was, I trust you.
• My boss asked me to participate in a panel discussion on his behalf.

Company wide attention is a step up. It is great to be recognised by one's boss, however when it is by the CEO or at a company level it is a completely different experience. Examples include recognition in the company newsletter, on its website or at the annual staff meeting, the up front parking space or a picture on the Wall of Fame.

Offering Feedback and encouragement seems so obvious but many leaders and managers don't make the time to do it. This is not the "good job" feedback discussed earlier, it's at a much higher level, the level that all top talent wants and few get. Actually sitting down and giving complete focus, listening to needs (even if you can't meet them), taking an interest in their career and building a shared bond.

These sessions can be once a month only and focus on their growth, on improvement and on building rapport. In our experience, when a manager takes the opportunity to do this on a regular basis, the employee truly feels part of the company. The opportunity to be involved in the department, to give and get feedback, participate, and be heard by their supervisor is deeply appreciated.

This can be one of the most enjoyed experiences for both a leader and an employee and it doesn't have to take long

At DAV I've just started something new: Open Door Monday with the CEO.

All my people are hugely encouraged to come and chat to me about anything on their minds or hearts, no appointment needed. About anything that I should know or that needs to change; anything at all that possibly feels like a weight they are carrying, whatever it may be.

All my people are hugely encouraged to come and chat to me about anything on their minds or hearts, no appointment needed. About anything that I should know or that needs to change; anything at all that possibly feels like a weight they are carrying, whatever it may be.

The first Open Door Monday I spent the morning feeling a little despondent because no one showed up. But then in the afternoon, person after person came through my door. It was enjoyed by us all and I feel, deeply, that this time spent gives a great sense of connection to one another, which I know will translate into mutual loyalty at DAV.

It is often small things that will have the most lasting impact and cement the loyalty of your employees to you and your company. Then people will stand by you in difficult times and excel in great times.

Please if you are looking for top performers.

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Tags: Talent Retention, Compensation, Leadership
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