In a recent study conducted by OI Partners, the data indicated that 54% of the companies surveyed do not have enough leadership successors in place and 14% of the companies are not sure if they have enough leadership successors in place. These findings confirm that many organizations are not prepared for the future, which means their organizations are not as sustainable as current management may believe. Closing the knowledge and talent gap needs to be a management strategy during good or interesting times in business.
The benefit of investing and growing employees for the future provides staggering long-term results for the entire organization. Some of the outcomes of employee development management should never lose sight of include:
• Maintaining or growing competiveness in the market
• Sustaining or increasing overall employee and organizational performance
• Building capabilities required to win when business circumstances change
• Sustaining the organization’s culture
• Shortening the time needed for an employee to make an important role transition
• Building strong leaders breeds sustainability
• Creating strategic alignment between the strategy, the employees, and the internal processes
• Innovation
• Creating loyal employees which in turn helps create a loyal customer base
The last point listed is particularly important. Revenue and profitability, albeit critical, are predictors of past decisions. Creating and growing a loyal customer base is a predictor of future success and sustainability. A key to creating and growing a loyal customer base is creating loyal employees. An employee’s loyalty to the organization is enhanced by working with each individual to create a personal development plan. Tim Shoonover, Chairman of OI Partners, said in a recent article “To sustain growth in your company, there must be a path to leadership. If an employee doesn’t have a leadership development plan in place and isn’t able to see her career progression she is less likely to be engaged or to expend discretionary effort.”
Right now organizations have a bit of an advantage, as employees are not as quick to pursue new career opportunities. But as economic conditions improve, disengaged employees will begin comparing and perhaps looking for new career opportunities. Therefore, creating and committing to an employee leadership and development plan is not only critical to organizational success it also plays a significant role limiting employee turnover to a minimum.
Employees who see a commitment to their growth and development are employees who give the organization 110%. That extra 10% is where innovative ideas come from that could propel your organization to new heights. What is creating an employee development process worth to your company?
Here are some questions that may be useful as you review your company’s employee development strategy.
1. If you had to fill a key leadership position in your company tomorrow, is there someone ready and able to fill the position? Are you confident hi/she has the right skills, knowledge, and attitude or are you guessing?
2. Does your organization have a published employee development plan?
3. Do you or your team of managers have a documented development plan for each employee they manage?
If any of your answers to the questions listed above cause you concern or you just do not know the answer, then perhaps it is time to make employee development a priority. The sustainability and success of your organization depend, on it!