Growth Matters – Supply Side Thoughts

Most posts on the topic of growth strategies tend to focus on the business development angle; having the right people and the right processes and having the right brand promise. I recently attended a panel discussion that included some of the most respected CEOs in the Philadelphia region. The topic was on attracting top talent, and I was reminded of the importance of having top notch recruiting and retention programs.

In marketing, we are always looking to differentiate our products and services from our competitors. To try to win on price alone is to play in commodity land. In attracting and retaining talent, it’s much the same dynamic. How do we differentiate ourselves to be the employer of choice? In many cases, we can’t win the talent war with dollars alone. Compensation may help you retain top talent, but you may not be getting the best out of them. If you’re one of the many, many business owners that claim that their employees are their “number one asset,” are you fostering the type of culture in which they can flourish? In so many cases, businesses have success in attracting top talent but struggle to retain it.

Abraham Maslow’s breakthrough writings on the hierarchy of needs provides valuable insights on what talented employees want out of their work experience. More than anything, they want to be autonomous and exercise a certain level of creativity. Years ago, GM learned the hard way that employees given dull and redundant tasks will exercise their creativity by sabotaging cars on the assembly line. Car owners found beer bottles in the door panels! GM had automated their assembly line so much that workers got bored and needed something to entertain themselves.

Similarly, management pioneer Douglas McGregor writes of two distinct management paradigms – Theory X and Theory Y in his groundbreaking book “The Human Side Of Enterprise.” The Theory X manager believes that motivation comes from discipline and to a certain extent, fear - fear of getting reprimanded, fear of getting demoted or fear of getting fired. They assume that employees inherently don’t want to think for themselves but rather take direction and collect a paycheck. Yes, I know we all know people like this, but do you want to count on them to help you grow?

The Theory Y manager understands employees’ needs for “self actualization” and fosters a creative atmosphere to get the most out of their talents. Yes, money is important, but it is is more of a “maintainer” rather than a real motivator. In the GM example above, GM engaged its workers at its Lordstown, Ohio plant and realized they had reduced their employees to human robots. They made sweeping changes to redesign the manufacturing process and made them partners in the quality management process.

Having a sound understanding of what makes your talented employees “tick” will go a long way in assuring you are recognized as an employer committed to its employees growth; both professionally and personally.

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