Case: Key employees leave due to lack of promotion opportunities
Huiyang is a small pharmaceutical company. The former manager of the sales department, Mr. Wang, was highly regarded by the company president, who often praised him in public for his great contributions to the company. Indeed, Mr. Wang had expanded the company's business through his excellent work abilities, leading to thriving company performance. In return, the company did not neglect him; he quickly rose from a salesperson to a mid-level manager within the company. Due to the president's favor, he also held a significant position among his peers. However, since high-level positions in the company were limited, Mr. Wang's promotion space was almost at its end.
One day, however, the president found a resignation letter on his desk, and Mr. Wang left the company thereafter. The resignation letter stated that he was grateful for the company's cultivation but hoped to pursue his own career growth and decided to leave.
According to informed sources, Mr. Wang had registered his own company, using the customer and social network he built at Huiyang to operate a similar business.
Mr. Wang's departure made the president of Huiyang very angry. But if the company could no longer provide greater opportunities for career growth, was it too much to expect employees to stay? More seriously, because Mr. Wang was a "one-man show" in the company, many clients and key information were under his sole control. After he left, no one else in the company was familiar with this valuable information or could temporarily take over his role as business manager. As a result, the original clients turned to cooperate with Mr. Wang's new company. Huiyang faced a difficult situation! Of course, what was most puzzling was whether there were better ways to retain top-tier backbone employees like Mr. Wang beyond promotions and raises?
In fact, every organization has some employees who have reached their promotion limit, i.e., "employees who cannot be promoted further." These employees are sometimes unable to meet expected standards or fulfill commitments, while others are capable of being promoted but the company cannot satisfy their needs for various reasons. Influenced by the inherent characteristics of the pyramid structure and the increasing flattening of organizational structures, the pace at which employees reach their promotion limits has accelerated. Almost everyone will eventually encounter such structural promotion limits, as higher positions become fewer and fewer. This phenomenon is especially evident in hierarchical organizations, where the pressure to reduce layers is becoming increasingly apparent. These key employees are ambitious and focus on personal growth opportunities, with relatively low demands for compensation. To retain them, alternative methods must be explored.
Developing Growth Plans
Talented individuals highly value learning and growth opportunities. Recognizing this, most companies use career growth prospects and professional training opportunities as important measures to attract and retain top talent. If a company is willing to invest in its employees by providing education, training, and career growth opportunities, it shows that the management values talent, believes in their potential for further development, and hopes they continue to grow. The company plans to select outstanding talents from within in the future and promote them to key leadership positions.
Ask senior personnel about their desires and then develop a plan to achieve them. This is the responsibility of Rosemary Do Wang and her colleagues. Each vice president has one or two opportunities each year to sit down with managerial candidates and discuss in detail what would most help their growth. Then, the managerial candidates will do everything in their power to grow in that direction. "A company may have 50 vice presidents, but only one can serve as the CEO. For them, we will treat them differently. We will seek their opinions and see how they hope we can help them grow," said Dow, the head of the company’s leadership body. "This expresses our sincerity and makes them feel valued."
Typically, the goal is to improve employees' business skills, encourage their innovative spirit, and enhance their initiative and proactivity. This is crucial for businesses. For top employees, only when the company recognizes individual capabilities and finds ways to help them grow can it eliminate the motivation for them to seek other opportunities.
A common scenario is that since vertical promotion opportunities cannot be provided to key employees, companies can offer new opportunities and challenges horizontally by implementing lateral transfers involving different responsibilities and job natures. A person may not be suitable for their current position or find it hard to innovate further, but changing roles might bring out exceptional performance or renewed vitality.
Harriet Wasserstrum, the deputy chairman of Hall Chase Bank in Texas, planned to attend a meeting with other banking giants. She brought along a "summary sheet" listing her direct subordinates and their strongest skills. As one of the three deputy chairmen of Chase Bank in Texas, Wasserstrum knew she might lose some of her best talents after the meeting. But at least they wouldn't leave immediately for other opportunities. At Chase Bank in Texas, senior management discovered that the main reason for high-level executives leaving was the lack of promotion opportunities. Therefore, the bank helped them find suitable directions to showcase their abilities.
Managers, upon meeting, would mention some strong performers and even negotiate talent exchanges. "This isn’t the manager's choice," Wasserstrum said, "Even if you don't want others to know your top talents, you will ultimately lose them." Wasserstrum, who views employees as "company assets," believes that new challenges in unfamiliar fields are excellent for individuals. She said, "This will reignite their passion. If you don't give them opportunities to grow, you harm both the employee and the company." Allowing senior employees to master multiple skills not only gives more options to the bosses of Chase Bank in Texas but also benefits the entire company in the long run. "If an employee has worked in a certain department and is suddenly transferred to another, it promotes experience exchange."
Creating New "Positions"
Companies don't need to cling rigidly to traditional promotions. For employees without promotion opportunities, new positions can be created that allow these employees to fully utilize their excellent skills in new roles, achieving results comparable to promotions.
- Forming short-term project teams. This approach allows employees to assume more responsibilities in a diversified environment and yields surprising results. Although it doesn't involve a formal rank promotion, the positions and challenges associated with them expand significantly. These employees will discover that compared to their very limited individual growth space, the possibilities brought by team operations are almost endless.
- Becoming mentors to younger employees. Employees at the end of their promotion paths generally have been with the company long enough to accumulate the company's spiritual wealth. If these employees pass on their values, corporate spirit, and skills to younger employees, it greatly benefits the younger generation and helps them grow rapidly. This is beneficial for both the company and the individuals.
- Taking on leadership roles in new units. When leading independent new units, employees at the end of their promotion paths act as CEOs. Without formally promoting anyone, this arrangement provides a challenging entrepreneurial opportunity for employees whose promotion paths have ended.
Additionally, letting employees nearing the end of their promotion paths serve as internal consultants or trainers, or act as liaisons between government departments or other organizations, can add value to their work and are quite good choices.
Various Ceremonies and Recognition
If you cannot provide job security to employees, at least meet their psychological need for praise. One of the most powerful promises you can make to employees is to acknowledge their excellence when they perform well.
Honeywell implemented a series of reward systems to boost the morale of its global workforce of 5,000 employees. The company's administrative director, Machael Bondignore, personally awards several Chairman's Achievement Awards each year. Employees can nominate each other, with a prize of $100. Additionally, the company offers an annual Best Manager Award ($3,000), Best Salesperson Award (free vacation), and Best Technical Service Award ($1,000). Machael Bondignore believes, "Salaries can only supplement employees' lives; they cannot buy loyalty. Achievement rewards are an essential part of meeting individual needs and can motivate employees to work enthusiastically."
Such practices can make recipients feel recognized and valued, even in large organizations. However, these rewards should not be given lightly; they must be earned and widely acknowledged so that individual value is fully displayed before everyone. If you are willing to put in the effort, the methods are limitless. For example, providing a romantic dinner for outstanding employees does not cost much money but can create a positive motivational effect for both the individual and their colleagues.