Growing Your Own Talent

by Robert Sher

Midsized companies spend a lot of effort on external recruitment but often fail to recognize raw talent already within their company. Often times, they lack staff training departments and don’t devote the time and effort required to develop staff and plan challenging development programs to bring out their best.

When fresh needs do arise, it is too late to build up an existing member of the team, so they look outside, with all the costs and risks that entails. It is a continuing cycle: underdeveloped staff stagnating or departing for fresh opportunities, new personnel coming in, and the sad story repeats.

Some companies try internal promotions when staffing needs arise, but they are not planned out well. Even if your staff is dedicated, parachuting them into demanding positions they are not ready for only creates a new problem. The new role may overwhelm them or may not suit them. Either way, the move can reinforce self-doubts, undermine their confidence and detract from company outcomes.

Planning a Pathway

Companies must identify talent with management potential and plan a strategy to challenge them continually with new responsibilities, mentoring and cross training – all with an eye towards promotion over time. Commonly called career pathing, the approach focuses on “high-potential” employees and can bring out the best in personnel and performance, with minimal risk.

“We’ve developed a number of staff internally, and it has been effective and really rewarding,” says the CEO of a home-building firm in Canada. “When you are able as we have to see a receptionist grow, over the years, into an effective operations manager, you get true commitment, a knowledge of the nuts and bolts of the company and terrific results.”

Here’s how you can develop from within:

• Watch a new or existing employee for at least six months and make a note if they are eager and fit into the company well. Hold a series of conversations with them about their work interests, ambitions and professional plan. Validate that they are up for a challenge. Document your thoughts in their personnel file and share it with them.
• In discussion with the employee, choose a direction for professional growth and development and outline a few projects or new responsibilities that will come their way when appropriate. Pace the plan based on their eagerness as well as their abilities. Some will want new opportunities quarterly; others will prefer a slower pace.
• If the growth isn’t fast enough, make fresh opportunities by pushing leaders above them to delegate more (and focus on more strategic work), and if necessary, by dismissing sub-optimal employees and reassigning their work to ones that are thriving.
• Not every spotlighted candidate will reach their potential or last the course. But keep the numbers manageable, and emphasize quality mentoring, planning and projects, so that the effort is worthwhile for both sides and progress can be tracked and noted. Working with only a handful of employees at one time is probably best, if that is what you can manage well.
• High-potential employees should have a mentor in the company, often their boss. Growing inside a company can be an emotional journey, at times frustrating, scary and rewarding. Having someone who the employee feels cares about them is crucial. Always make sure to give constructive feedback on performance, positive or negative, to help the employee learn.

It is important to select high-potential employees with care. Making the effort to develop people who turn out not to be a good fit is a big waste of time. Just because an employee has been with the company for a long time doesn’t necessarily mean they have the desire or ability to develop. Being part of the family, or friends of an employee or the owner doesn’t qualify them either. The employee must be fully engaged and doing great at their current job to qualify for this opportunity.

Building the Backbone

Aside from high-growth companies, it’s nearly impossible to tell when a company will need to harness more talent. Growing talent can be nearly cost free. The excitement generated employees getting new opportunities usually more than pays for the cost of supporting them and helps ensure that quality personnel are on hand for when openings do arise. It is a slow process requiring regular attention. Yet over 10-30 years, such mentored talent can form the backbone of many operations. Each new position filled from within confirms a successful journey for both employee and the company and is a moment of real celebration.

“The process can stretch over decades, so it requires time and real commitment,” says the home-building firm’s CEO. “We have a vice-president of operations who started with us as a framer on building sites. There were some areas where he needed backstopping, and we’ve been able to help him focus on his strengths. Now he’s a great leader for us. It shows how effective and gratifying the process can be.”

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