How to captivate your top performers in 2016

By TEC Member Anne Moore, CEO at PlanDo

Engaging your top performersThe Prime Minister might have just announced plans for more people to come to Australia under entrepreneur visas, as part of his ‘Innovation Statement’ but that isn’t going to help the majority of HR professionals looking to hire and engage their best talent next year.

The reality is that if you thought 2015 was tough keeping the energy and attention of your best talent, it’s going to get tougher in 2016. Many companies talk about the benefits they offer their employees, the perks, the flexibility and the competitive remuneration packages, but providing individuals with a clear career path and enabling them fulfill their career goals, aligned to your own, needs to be high, if not top on the list.

For too long the systems and processes that HR professionals use reflect the organisation’s goals, not the individual’s. They present HR professionals with a huge administrative burden and don’t reflect the changing nature of the work environment. How many businesses do you know make decisions on an annual basis anymore? Indeed, HR professionals may be hiring for a role today, but that role could be completely different in a few months’ time.

Together with the changing work environment, the casualisation of labour, the increase in contractors rather than employees and the millennial mindset of wanting to work in a number of different organisations rather than sticking with one over the long-term, HR professionals need new tools to retain talent in 2016.

I’m not talking ‘retention’ here, we’re going far further upstream.  We think the magic happens with how we enable autonomy and the impact of great performance and engagement.

If you want to engage your top performers next year, you need to consider the following:

1.    How often do you or your leaders ‘check-in’ with your team members?
Instead of having to make team members wait for 12 months for their review, smart organisations will provide more feedback more often. This feedback shouldn’t just come from ‘managers’ or ‘leaders’ as they should be known, it should be from more than one person – peers, mentors whomever the individual chooses. That way, a more complete picture can be built of the individual’s progress and a different perspective can be provided.  Recent research shows that peer feedback is particularly effective in motivating team members to consistently perform at their best.

2.    Are the individuals that work for your organisation self-directed?
Has your organisation given your team members an opportunity to talk about their career goals and what they want to do? It’s important for your leaders to set goals and objectives together with individuals. Ask them how they can contribute to achieve the goals your organisation has set. Again, it comes down to ownership and accountability, and if the individual has suggested a goal or objective, they’re much more likely to achieve it, than if they’re given one.  The new world of work demands a responsiveness and agile that’s internally derived.

3.    Does your performance review process need an overhaul?
Is it too long? Too cumbersome? A box ticking exercise? Some organisations such as Accenture and Deloitte are scrapping them altogether. There are cloud based career management systems available, such as PlanDo that are more intuitive, less expensive and really help HR professionals retain their key talent. It’s about HR professionals and leaders across the business having access to the right tools for the changing work environment.

4.    Are you having quality career conversations?
Ask yourself if the tools you’re using today encourage quality conversations between ‘leaders’ and ‘individuals’ in your organisation. Standard performance systems encourage managers to only talk to their people about growth once or twice a year. Most organisations in Australia have invested in expensive outdated ‘talent management’ systems that reflect what the organisation wants from its employees, to ‘manage’ them. Today, this approach simply doesn’t work. ‘Talent’ can’t be managed. With a younger generation of workers coming through, they want to take control of their own career and not have an organisation dictate to them the path they need to take to progress.  Managers are rapidly evolving into leader coaches and as such, they’ll also be wanting easy access to simple and effective tools that facilitate great conversations.

Finally, helping your team members with their career progression is not all down to you. Competition is fierce in many industries in Australia to attract the best talent and then once you have those individuals, it’s a common misconception that it’s down to HR professionals to nurture individuals and outline a path for progression. Wrong. Today, this is a shared responsibility. It’s about co-careering which means aligned values, purpose and goals.  Building strengths, skills and ensuring there’s a great ‘fit’ is was matters more and more.  At the end of the day, the individual is responsible for their own career, ensuring their experience and skills are documented and taken with them to their next employer.

Building an agile company: the case of McDonalds

Every business needs to be able to keep up with market changes in the face of widespread upheaval. Maintaining this organisational agility isn’t easy, especially for large companies with an international outlook.

Building an agile company the case of McDonaldsbWhile there are plenty of examples of industries that have been up-ended as a result of new competitors and changing conditions, there are also many that have managed to respond to these changes.

Among these is McDonald’s – one of the world’s largest and most iconic fast food brands that has reinvented itself in recent months by focusing on agility and innovation.

Meeting the challenge of a competitive marketplace

The food sector, and fast food in particular, has traditionally been one of the most competitive industries. The relatively low barriers to entry and large customer base have seen organisations compete on price, convenience and the shortest possible wait between ordering and eating.

While these factors have traditionally underpinned the industry, evolving market conditions and increasing competition from “fast casual” dining experiences that focus on quality have changed the industry.

For companies like McDonald’s, international economic conditions, such as slow spending in Europe, have affected sales while a generational shift away from fast food has decreased the number of young consumers dining beneath those iconic golden arches.

In the case of McDonald’s, the result has been slumping revenue and profits. The company’s revenue has dropped 11 per cent, resulting in a 30 per cent decline in profit, according to a report in Fortune Magazine.

To address this, the company has embarked on a strategy to become leaner. This year alone, the company will close around 700 under-performing stores around the world – double the original predictions. However, this shift is going much deeper than simply closing stores – the company is moving quickly to redefine its dining experience.

Reimagining the consumer experience

To reinvigorate global sales, McDonald’s has unveiled a number of new dining experiences that aim to reconnect with younger patrons, while also creating a higher-quality and more personalised product.

One such innovation has been the introduction of the Create your Taste experience in Australia, giving diners the opportunity to build their own burger from a range of 30 different ingredients. This new way of ordering uses touch-screens in participating stores that patrons can use to customise their meal.

This innovation is currently available in around 30 stores, but will be rolled out to 700 stores over the next nine months – underscoring how quickly this service is being scaled across the business.

While the Create your Taste product has been adopted across a large number of stores in Australia, other innovations have also been launched.

In Sydney, McDonald’s has launched The Corner, a redesigned McCafe that is styled to resemble an independent cafe rather than a chain. The design plays down traditional McDonald’s branding like the golden arches in favour of gourmet, personalised offerings served with metal cutlery and a range of cafe style hot beverages.

While the company has no plans to roll The Corner out nationally or internationally, it highlights the creative directions the company is pursuing in an attempt to reinvent its dining experience. This isn’t the first time Australia has seen the trial of new experiences from the company either – the first ever McCafe opened in Melbourne back in 1993.

Has this shift worked?

Transforming one of the world’s largest fast food services into an agile company that embraces modern trends is no easy undertaking. For McDonald’s, it’s too early to tell whether these organisational shifts will reverse the company’s financial position.

At an organisational level, there are signs this move is being embraced, with the company’s Australian CEO Andrew Gregory stressing these changes are designed to build a more transparent and responsive dining experience.
For other business leaders, the McDonald’s experience underscores how it is possible for even the very largest enterprises to become more agile and innovative. As market conditions continue to challenge organisations, developing, testing and implementing new strategies across multiple branches and departments will be a defining feature of successful companies.