For an organization to develop, it cannot afford to let the potential of its members remain untapped. In today's highly competitive global environment, resources are becoming increasingly scarce while customer demands continue to rise. To avoid being phased out, organizations must operate at full capacity. This means that leaders need to pay more attention to their employees' needs, respond flexibly, and create a superior working environment to satisfy these needs as much as possible.
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Case: A is the general manager of a growing enterprise. Recently, every time he thinks about hiring employee A, he feels frustrated. A has been with the company for a long time, diligent and dedicated, with commendable work performance—satisfied customers and praised by colleagues. However, in recent years, every year-end salary increase makes A angry and discontented—"I'm depressed." It's understandable; the company is growing rapidly, and everyone receives a significant salary raise except for A, whose raise is embarrassingly small. Meanwhile, newer employees who were once under his guidance have already become responsible for certain business branches, with their "salary situation" surpassing his. He repeatedly questions, "Is there anything unsatisfactory about my work? Is my client evaluation insufficient?" Manager A tells him, "Your salary is the highest among employees performing similar tasks in our company." In reality, Manager A is conflicted: the company has been growing at an exponential rate, expecting employees to quickly expand business in their respective fields, then lead a team to achieve geometric growth. A is an excellent salesperson, but over the years, his position and role have not changed significantly. Although proficient in business, it's impossible to give him too high a salary. Attempts to promote him to managerial positions revealed that he is just an outstanding soldier. Despite no change in his responsibilities, he fails to open up new territories. However, there is no reason to dismiss a qualified employee, so what to do?
"The Lifecycle Has Limits"
The value of an employee in a particular position has a lifecycle. Once at the end of this lifecycle, either a change in position or a change in person is necessary.
A company's development stages can be divided into four phases: startup, growth, maturity, and decline. The growth phase is the stage with the highest employee turnover rate outside of the decline phase. During the growth phase, the company's revenue and profits increase rapidly, personnel expand quickly, and the company's operational mindset, concepts, and corporate culture begin to form, drastically changing from the initial entrepreneurial environment. Both cases presented here are human resource management issues occurring in high-growth enterprises.
For Company A, its tree-like structure implies that if any node does not branch out, it will affect the speed of downward expansion and the replenishment of fresh blood. Under this corporate culture, A's value in the current position within the company has reached its limit. Even though he remains a good soldier, because he cannot handle higher positions, he might block the path for newcomers and restrict the company's business expansion. Therefore, only two choices remain: one, continue doing the same job with low pay, or two, leave. And according to my knowledge, almost no one would choose the former. Thus, for a rapidly growing enterprise operating on this mechanism, the principle of "up or out" can be adopted in human resource management—either a change in position or a change in person. This principle is not new; the Chinese army has long implemented such a policy—if a person does not get promoted after reaching a certain level within a few years, they must switch careers or retire to ensure the team continues to progress and stay vibrant. Here, the reminder for each employee individually is: try to increase your own value through job rotation, learning, etc.
"The lifecycle of employee value varies depending on the nature of the enterprise. In state-owned enterprises, someone might hold a position for ten or even twenty years, or even a lifetime, but such growth speed is unimaginable in private enterprises, especially fast-growing high-tech companies. The lifecycle of different employees within a company also differs. For example, the ability development stage of a university graduate can be longer, but a mid-level manager joining a company needs to show quick results, otherwise, it will be hard to establish authority. Only when the employee lifecycle expected by the enterprise aligns with the actual lifecycle possessed by the employee can resonance occur."
How to Stimulate Employee Potential?
Generally speaking, employees have eight needs that must receive sufficient attention from their leaders for them to perform optimally. If leaders fail to focus on these needs—even ignoring just one—it will inadvertently "brake" the forward momentum of organizational development.
1. Meaning of Work: Employees need to see the significance and value of their work and whether it connects with the larger organizational goals. They need to understand how their work ties into the overall vision, the meaning of organizational culture, and where the company's values lie.
2. Collaborative Atmosphere: Employees desire to work in an encouraging environment, collaborating with others for success.
3. Fairness: Employees want to serve fair and equitable employers, where salaries, benefits, workload are all fair and balanced, and mutual respect exists between employees. Employees hope that the organization and leadership treat them and clients equally fairly. Studies indicate that the primary cause of employee turnover is feeling unfairly treated.
4. Autonomy: Employees wish to independently complete work tasks, having enough capability and information to participate in decision-making related to their work.
5. Recognition: Employees need acknowledgment and praise for their accomplishments.
6. Growth: Having opportunities to learn, grow, and develop skills for career advancement is a key employee need. Employees must feel they are part of the career development planning process.
7. Relationship with Leaders: Employees want leaders to share information and build strong partnerships based on honesty and trust, creating a harmonious work atmosphere where employees are motivated to perform better.
8. Relationship with Colleagues: Similar to the relationship with leaders, good relationships with colleagues encourage employees to work harder.
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