Come and Get Your Free Toaster!
It used to be a big promotion – come on down to our bank and if you open an account with us you get a brand new toaster! This wasn’t a bad marketing strategy – in fact, it was in response to regulations against paying interest on a checking account. This was the only way a bank could reward and incentivize its customers.
Are you trying to give away toasters in your organization? That is to say – have you really examined your rewards and retention program for your high potential employees? Some organizations are convinced that the elite classification of high potential is reward enough. But research shows that the best organizations consider a variety of reward strategies.
Financial incentives are certainly beneficial, and need not be excessive. These incentives should be carefully aligned with the objective of serving the organization long-term. Equally important are internal strategies that focus on an individual’s need tor recognition and achievement. Such incentives and strategies must be in place to attract and retain high potentials, but also not so excessive as to de-motivate those employees who are the mid-level producers.
This is our final blog in the series based upon Fernandez-Araoz, Groysberg, and Nohria’s research on retaining and developing your high potential employees. We have looked at identifying those employees, aligning your development program with your organization’s strategy, and constructing that development program. We hope this has gotten you to analyze your high potential candidates and scrutinize your program so that you are maximizing your human capital and resources. Let us know if you’d like us to evaluate or structure a program for you – we’d be happy to assist you.