This is all about having square pegs in square holes.

How is this achieved ?

 

Lets start with the people, quite often a CEO will either be new to the job, want to implement change or maybe have change forced upon him by external events.
Whatever the reason , managing and leading people ( we will use these terms interchangeably) is key to the successful implementation of plans.
If we take the example of leadership and describe it, as we have done elsewhere as supporting and enabling people to maximise their potential , then Employee Management is crucial.

CEOs will pronounce that one of their Competitive advantages accrues from their Human Resources, finding the right person for the job is paramount.

Strategic talent management and high performance employment policies underpin this Competitive advantage. This is not a strategy focusing on top performers, rather it a holistic view of the organisation as a dynamic organism fed by the skills and energy of it’s employees.

CEOs can blame themselves for the lack of skill in the organisation and cutting costs  through lack of training or incorrect appreciation of job description and employee expectations can lead to false economies.

Talented individuals feed off each other, they radiate energy and add value, getting the right mix of people in the organisation can lead to synergies .

It starts at recruitment, the CEO should ask himself why a technically able and highly motivated individual would want to work with the organisation.
Failure to correctly identify the match of needs can be costly.A strong culture of Employee  support is essential to the Corporate well being, the recruitment and personnel strategies must mirror this culture

 

Recruitment
There are several forces at work competing for skilled workers. Firstly, the firm itself, this will have a set of principles that define it’s culture, these may be explicit, i.e. mission statements, budgetary controls or implicit, values, ethical behaviour, social responsibilities.  Given that the technical capabilities of the person being recruited is the ‘ fit’  for the purpose, the skill of the CEO, or indeed the HR department if he is lucky to have one is in identifying the line of best fit for the ‘softer side’ of the skill and ability set of the recruit.
 

How many times have people been turned down because of the ‘chemistry’ of  the personality, and them not fitting in. These statements bear  unconscious witness to desire o f the company not to have a toxic mix of personalities that will hamper progress or impede change.

 

Secondly, there is a supply side to this, firms with high performance recruitment policies tend to attract the best people, word does get round that not only are` the visible pay and conditions right, but the ethics and morals of the organisation are deemed to be sound. Managing the source of supply and by definition attracting the best gives you that market edge when attracting talent.

 

Thirdly , there are the usual budgetary controls to consider and the amount of investment required to keep the talent technically competent and committed, to use a car analogy, whilst you may have ,made a decision to employ a BMW rather than a Ferrari, there are still costs of servicing the car irrespective of make,  employing high maintenance individuals may not be possible within the existing finances.

 

Forthly, training, similarly this is an ongoing cost, it is the old conundrum as to whether to go for youth or experience, and you may decide to train up an individual and run the risk of departure and your competitors getting the benefits.

And finally, progression, employing talent is not without it’s downside, you have to be clear you can meet the employees aspirations for personal growth, Failure to meet these needs leads to dissonance, disruptive behaviour and the very opposite of what you want to achieve.

Managing peoples aspirations is crucial to a healthy retention policy (unless of course you are budgeting for turnover rates, in which case you had better make sure there is an ample supply of younger talent coming through the ranks.

 

 The SME perspective

So how do these principle apply to SMEs?

The general principle will be that the larger companies can out muscle the smaller ones when it comes to pay and reward, that is certainly true.

The recruitment process therefore needs to concentrate on how the SME is different from it’s larger counterparts

It is precisely the smallness of the SME that is unique, concentration on being a larger fish in as proportionately smaller pond will have it’s attractions to either the young who are willing to take risks in a relatively safer environment, or the more mature individual who has become disillusioned with large Corporate environment.

The social interaction at every level is much more open in the smaller business where it is possible to know everyone and their background.

Indeed even the Office environment can be more personalised than the Corporate cubicle.
Having you own car parking space and being recognised by the Boss is something more easily achieved in an SME

Working closely with CEOs and seeing the Board in action is invaluable experience, being up close and personal with Entrepreneurs is a good grounding in business knowledge, you will not get the ability to see main board PLc directors behave under stress.

 

More importantly the breadth of knowledge and experience is wider in an SME. There are no large functional departments whereby each personal fiefdom is protected  and outsiders wont get a look in if there are staff shortages or special projects.  On a smaller scale the whole business will know of new initiatives and quite often ask for volunteers to help out , whatever their original discipline, this will suit the naturally inquisitive.
Such experience is priceless, to rise to the challenge and maybe to have that unexpected bonus is much more satisfying than the annual appraisal done by the HR department and the promise of a move from grade 24 to grade 23. The Organisation gets a much more flexible attitude in return and when that BIG change comes along the whole organisation is  ‘change’ ready.

 

Other non tangible benefits include a willingness to grant flexi time, overtime or tele-working  as individual’s circumstances change.The SME then is a better breeding ground for all round talent management than the larger organisations, the challenge is to retain talented individuals.

With a bit of luck, talent management becomes a two way street, the very talents employed in the firm help the firm grow successfully and meet new challenges which in turn can feed the talent base and further improve the skill set.

 

Author: Len Jones