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| Photo: Salvatore Vuono_FreeDigitalPhotos_dot_net |
The organizational performance is dependent on having the right person doing the right job. Many factors are critical to successful staffing in organization. In enterprises that are hit by the phantom ceiling, it is seen that the old team that got you to the current level of success does not work out any more. New challenges require new competencies. You will play small if your support system doesn’t play a bigger game than you. Holding back having a new team, when you really want to generate bigger success is holding yourself back from growing big. Common mistake business owners make is to hire less expensive people to keep expense low. This is short-term thinking that leads to long-term growth being stifled. You need experts who can take ownership of their roles and even the task-doers that you recruit must have high levels of commitment and initiative.
Adequate staffing
It is common for entrepreneurs to cut corners and recruit fewer people than you would actually need. Such cost cutting is, in fact, costly. It is important to have adequate staff to ensure that what needs to be done gets done.
Staff Competence
There are 4 components to staff competence – Talent, Attitude, Skill and Knowledge. All four components are relevant to a well rounded competence.
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| Photo: renjith krishnan_FreeDigitalPhotos_dot_net |
Most entrepreneurs have struggled with staffing; getting the right persons to fill your vacancies is always difficult. The most important reason for this is that they look for people who can plug and play into the roles they are recruited for. Such ready well prepared individuals are not easy to get, for a small business, at salaries that don’t cause a big hole in the enterprise’s pocket. Then what can we do. First thing to do is to begin recruitment in a planned manner, much earlier than the time when the role becomes ‘critical-to-fill’ for the company. Second, recruit for talent and attitude rather than look for ready knowledge and skill. Be prepared to train and develop individuals for knowledge and skills for important roles that the enterprise needs to fill. Talent is inborn and cannot be taught; attitude is shaped over an individual’s developing years and is difficult to alter quickly. These are two qualities that we should give maximum importance to while recruiting. Where is the time to train and develop people? Well this is one of the most important things a growing organization must get right and the Chief Entrepreneurial Officer must focus on. A right person for the right role is very important to beat the phantom ceiling effect. First define the role, then we define the talent, attitude, skill and knowledge required for each role or position in the organizational structure, then we recruit people to match these requirements and lastly, have and implement a well thought out training and development plan. For each part above there is expertise required, and the CEO must be deeply involved in the whole process. Even if the CEO has the expertise to execute this, he must look for external expertise of a qualified consultant to achieve the desired goal. The CEO must think and manage this, but avoid the doing these parts, so the he can be free to think and manage the other activities that are also critical to the success of the enterprise.
Staff Compensation
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| Photo: renjith krishnan_FreeDigitalPhotos_dot_net |
If we were to follow the above scheme for recruitment, we are hiring talent that are yet to reach their potential and therefore will come at lower costs. However, we will have to invest in their training and development. The compensation needs to be structured with lower fixed pays, reasonable variable pays, good benefits and welfare schemes, and a challenging and energizing working environment. Providing a great work environment makes it hard for individual to look elsewhere for their professional growth, even if the pay is lower than the industry average. It is said that people don’t quit companies, they divorce their bosses. You the CEO are the important reason for employees to remain or exit from your company. If you are a good mentor and care for your employees’ growth, you will have fewer people turnover. You must nurture and build an organization that is continuously learning and growing.
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