It’s pretty rare to find a product or service that is truly unique. In my opinion, the only two ways to truly differentiate your business from the competition are through people and company culture. So let’s talk about people. Every leader with whom I’ve consulted says they only want to hire top talent. They say they have pride in their people and mediocrity is not an option. So why do they end up with a bunch of “C” players on their team? They don’t have a solid strategy for the management of human capital, and they ignore the following signs of mediocrity:
- People picking up the slack of others who don’t do their job.
- Positions are created to fit existing employees instead of hiring the right person for a position created to fit the company strategy.
- Managers tolerating the same mistake by an individual over and over again.
- Persistent complaints from co-workers about a particular employee.
- People waiting around to be told what to do instead of taking initiative.
- No innovation.
- High turnover in key positions.
- Higher overall turnover than best-in-class competitor.
- Managers spend more time “doing” instead of coaching, mentoring, recruiting and evaluating performance.
- Employees who aren’t held to the same standard because of their long tenure. i.e. their job is theirs forever.
At their core, these problems are human capital management issues that result in lost revenue, increased costs and lower margins. Ironically, some leaders find it easier to deal with revenue issues and their consequences than to learn how to build the right organizational structure and manage their human capital. By taking the time up front to do it right, they would grow faster, have more time, reduce costs, and expand margins. Instead, they choose what is comfortable.
Howard Shore is an expert in human capital management who works with companies that need help with recruiting, hiring and developing the best talent. To learn more about AGI’s executive coaching, management consulting, and leadership training, please visit his website at activategroupinc.com or contact Howard Shore at (305) 722-7216 or email him.