Written by: Jeffin Johnson
My last Blog post is based on an article published on Forbes.com on April 10th 2012. This article titled “Top Ten Reasons Why Large Companies Fail To Keep Their Best Talent” is written by Eric Jackson. Jackson is the Founder and Managing Member of Ironfire Capital LLC. He completed his Ph.D. in the Management Department at the Columbia University Graduate School of Business in New York, with a specialization in Strategic Management.
As the title states, Jackson covers the top ten reasons why large companies fail to keep their top talent. In this blog post I will summarize the ten reasons he illustrates in his article. Jackson states that the number one reason why top talent quit is due to “Big Company Bureaucracy”. No one likes rules that make no sense. Employees feel more attached to their employer when they have a chance to voice their opinion and impact the decisions made in the organization.
The second reason for departure is that top talent cannot find a project that ignites their passion. Having meetings with employees to find out if they are enjoying what they do is vital to retention. Jackson states that “Top talent isn’t driven by money and power, but by the opportunity to be a part of something huge, that will change the world, and for which they are really passionate.”
The third and fourth reasons run hand in hand. The third reason is poor annual performance reviews and the fourth reason includes not discussion career development. Poorly conducted annual performance reviews and a lack of discussing about career development leave top talents wondering if the company even cares about his or her long-term future at the organization. Jackson states that “If your best people know that you think there’s a path for them going forward, they’ll be more likely to hang around.“
The fifth and sixth reasons are also related. The fifth reason is a lack of support or consistency from organizations on individual projects, and the sixth reason is a lack of accountability. Jackson states “top talent demands accountability from others and doesn’t mind being held accountable for their projects...they’ll appreciate your insights/observations/suggestions — as long as they don’t spillover into preaching.”
The seventh reason argues that you should surround top talent with other top talents. Incompetent employees are a very frustrating factor for top talents. The eighth reason is the fact the organization lacks a vision, this ties in with the fourth reason. A vision for the organization is a future and purpose for the top talent.
Reason number nine (A lack of open-mindedness) is closely related to reason number one. Top talent “want to share their ideas and have them listened to.” Narrow minded organizations are unattractive to Top talents.
Bad bosses are the last reason why top talent leave. Jackson states that “If a few people have recently quit at your company who report to the same boss, it’s likely not a coincidence.” He concludes by saying that if you have a leader in your organization that is not getting along with others, it’s better to move them to another part of the organization. If this is not possible, it is a good idea to move your top talents that you want to keep to another part of the organization under the authority of another leader. Taking these reasons in account can help you become a better leader in the future.
Jackson, E. (2011, December 14). Top ten reasons why large companies fail to keep their best talent. Retrieved from http://www.forbes.com/sites/ericjackson/2011/12/14/top-ten-reasons-why-large-companies-fail-to-keep-their-best-talent/2/
I took a job in another department once just to get away from a bad boss. She was the classic "Do as I say, not as I do" type of manager. I was not the only employee who left the department because of her. The mass exodus of good talent got upper management's attention and she eventually lost her job because of her incompetence.
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