Lessons from SMEs in attracting, retaining, and developing your people

Singaporeans' love or hate relationship with their employers has been written about a lot recently with levels of employee engagement at the lowest in the world and the majority of employees being more confident about their job prospects than they were twelve months ago.

Our Singapore Management Agenda research reported back in April that 63% of managers are considering moving jobs - with reward, lack of appreciation, and poor management topping the lists of reasons why. The challenge of retaining and attracting the best and brightest to your organisation is not going away.

So where to look for inspiration?

We believe that there may be scope to look at the experience of SMEs in tackling retention and attraction. Compared with MNCs, SME organisations may not have the breadth of resources at their disposal to invest in detailed talent management strategies.

This isn't necessarily a hindrance however but rather more an opportunity to throw the rule book out the window and address talent management creatively. Our recent research in Singapore provides some interesting insights into talent management practices among SMEs that all organisations, big or small, would do well to pay attention to. The SME experience represents a potential catalyst for the generation of new ideas.

It’s about people

In a recent blog, Richard Branson said that "business is all about people, people, people". We would concur with this view: knowing your people and what motivates them is key. So having a clear belief that your organisation's success depends on your people is the first step in effective talent management.

This requires someone within the organisation to champion the employee cause asking at all times "what are the implications for our people?" At the same time you can't even begin your talent management without having HR practices underpinning your organisation such as recruitment, reward and recognition practices, workforce planning and succession planning, regular performance appraisals, and providing good working conditions.

Working conditions trump pay and reward

Our research found that organisations with good working conditions had the largest impact on and were the most successful in attracting talent. While this might seem unsurprising to some, the main implication of this is that we absolutely must take a holistic view about the employment value proposition (both from the perspective of incumbent and would-be employees).

Such a holistic approach means that the fundamental isn't just about the working environment but also encompasses flexible working opportunities, opportunities for personal development, a grasp of what appeals to a multi-generational workforce, and a strong sense of values and purpose.

Clearly articulating what it is like to work in your organisation will go a long way to attracting talent, and it needs to be tailored – for example, clear messaging about the technology available for Generation Y candidates and opportunities for flexible working for Generation X and Baby Boomers.

People leave managers and not an organisation

A good manager is instrumental in attracting and retaining talent. Managers who take advantage of opportunities to be closer and have quality conversations with their teams so they can dig deeper into career or development plans will retain their staff.

And those staff will be more energised and productive in contributing towards organisational goals. The implication of this is that manager development itself – to develop and improve people both as managers and leaders – is also a fundamental strategic imperative that sits inside talent management as a whole.

But development isn't just about training

There is no one size fits all approach to talent retention and attraction. Whilst some employees will be attracted to organisations with formal training and promotion prospects, others will see it differently.

Offering opportunities to work on projects or secondments, having a greater exposure to senior leaders, greater autonomy and the chance to innovate and learn, provide alternative options that will be equally as successful. Our research suggests that many SME organisations may have the upper hand here over their MNC counterparts.

Avoid the "easy come, easy go" mantra

Employees will stay in an organisation if they believe their performance is appreciated, recognised, and rewarded. That's easier said than done because it not only places great onus on your managers to review and appraise, but requires everyone to have those courageous conversations that are essential to performance management.

Our research also found a link between good working relationships and lower turnover with many organisations proactively encouraging social events to strengthen relationships and build a sense of community. Having deep centred values and purpose - "why we are here doing what we are doing" is vital in gaining commitment and loyalty.

Reports regularly highlight the strong link between talent management and financial success, and our research on talent management in SME organisations validates this link.

Talented people are scarce, more mobile, and more demanding. Younger people entering the workplace expect an organisation to tailor and adapt to their particular needs. Meanwhile older workers will find their loyalty swayed by different factors as their needs evolve over time.

Organisations need to be restless when it comes to understanding how these needs evolve over time: talent management is always in a state of flux and we need to shape and morph to suit an ever-changing environment. We need to keep our finger on the pulse at all times.

One example is appraisal systems: there is a strengthening undercurrent of opinion which says that traditional appraisal systems are no longer fit-for-purpose – suggesting that they are tired, flogged to death, boring, tedious, and of ever-diminishing value.

It is likely therefore that we will see technology kicking in to change the nature of appraisals forever. Singaporean organisations need to be aware of these impending – and radical – changes.

We would strongly suggest therefore that organisations with a clear belief in a tailored approach to talent management and the courage to make radical changes - are more likely to have higher productivity and profitability – areas that the Singapore government has identified as key to maintaining Singapore’s overall competitiveness.

So whilst at times it may seem like an uphill effort to attract, retain, and motivate your employees, it's a struggle well worth taking on.