By Ridhima Khanduja, Partner and Market Leader at Kincentric Malaysia
Today, much about the way we work, where and how, is vastly different from what it used to be. The advent of technology, coupled with significant global events, has shifted priorities and expectations, and with it, increased demands on organizations and employers.
The tipping point of the pandemic has accelerated the urgency for businesses worldwide to re-examine their purpose, objectives, and expectations to determine the best way to operate, especially in their approach towards talent. For Malaysia, a survey on Global Employee Engagement levels (2019-2021) conducted by Kincentric revealed that only 5 in 10 employees feel that their organizations are attracting or retaining the people they need to achieve business goals [1].
Moreover, a survey conducted by the Institute of Corporate Directors Malaysia (ICDM) showed 36% of 250 respondents’ (comprising senior managers from various ASEAN countries) key boardroom priorities include building and managing talent pipeline, followed by succession planning for CEOs and the leadership team (30%) as well as managing corporate culture and ethics (20%) [2]. From the analysis, it is evident that boards are aware of the importance of talent management and culture as industries and sectors transform.
As such, it is crucial for decision-makers and influencers, from boards, and directors to senior leadership to recognize and appreciate the business implications of culture and leadership in today’s context. Gone are the days where the primary criteria for employees are remuneration – they now have significantly different expectations in terms of employee experiences. Leaders need to step up to fulfil their role as culture stewards by aligning these expectations with strategic goals to ensure their organizations adapt, pivot and ultimately succeed.
To guide the decision-making process, here are a few key indicators for assessing the state of the organization, its readiness and steps needed to achieve organizational resilience:
- Organizations must invest in shaping a culture that drives performance. Culture is a combination of beliefs, behaviors, and decisions and can be demonstrated through the decision-making processes by the management team. Kincentric’s research identified that employees are ten (10) times more likely to quit their jobs if they are not aligned with the firm’s culture and values. Organizations can attract and retain talent by having a clear articulation of their values and purpose and aligning those with their business strategy [3].
- One of the key differentiators for successful organizations is how their leaders communicate and demonstrate progress and growth. Leaders are now tracking employee engagement levels regularly and championing action plans to manage and sustain those levels. As evidenced through a recent meta-analysis study shows, employee engagement levels have the greatest impact on business results during and in the wake of economic disruption. Hence, it is crucial for all leaders to step up and show up as engaging leaders for the future of the organization.
- Effective succession planning is crucial to create an engaging environment for employees. The risk of doing nothing will create internal uncertainty and even strife among employees, leading to poor engagement levels, impacting business performance and reputation in the market. Establishing a process to assess and grow future leaders should be a priority for organizations as they continue on their growth journey. When solutions for succession planning, keep it simple, rely on strong and objective data to fuel important conversations and incorporate the process into the cadence of the organization so it becomes a natural part of doing business [5].
Leadership at all levels plays a significant role in embedding culture and purpose into the organization. A top-down approach where policies are implemented will slowly but surely change the way organizations are run. Though there is the perception of this being the work scope for senior management, the expectations are slowly shifting towards boards and directors to play a more active role in driving conversations in the management team. With this, there are three (3) areas for senior executives to consider in their approach to leading talent conversations [6]:
- Directors have to assume a larger role to ensure top executives are focusing on talent development, especially when there is a shortage of the right talent. Long-term initiatives such as creating a pipeline of suitable talent and upskilling current employees tend to be side- tracked by short-term results such as profitability. Boards must ensure that talent development and retention is and will remain, one of the main agendas.
- Review the organization’s culture and philosophy to decide if it supports business goals. Boards ought to have conversations with the management team on key organizational attributes and behaviors critical in executing business strategy and work in tandem to address the challenges that arise from the application of the chosen culture. The right organizational culture and philosophy will attract and retain the best talent, which will eventually contribute to the organization’s resilience.
- Encourage inclusivity principles such as diversity, equity, and inclusion (DEI) in the organization’s culture to create a diverse workforce. Organizations that lack inclusivity in their workforces are unable to tap the potential of diverse talent pools and that might result in a myopic approach in their overall decision-making.
In short, organizations that do not change or adapt the way they operate will run the risk of losing its appeal among talent, investors, and clients, leading to the inevitable demise of the organization. On that note, it is crucial to reflect on how you can play a more active role in initiating conversations and taking actions to future-proof the organization’s business continuity and sustainability.
Total no. of words: 900
References
- Khanduja, R. (May 2022). Talent Uprising: How Boards Should Rethink Their Talent Strategy in this Era of Opportunity. Retrieved from: https://pulse.icdm.com.my/icdm_event/talent-uprising-2022/?utm_source=on-demand+video&utm_medium=email
- Institute of Corporate Directors Malaysia (ICDM). (2022). 2022 ASEAN Board Trends. Retrieved from: https://pulse.icdm.com.my/wp-content/uploads/2022/02/ICDM-ABT-REPORT-2022-FA.SMALLLATEST.pdf
- Kincentric. (January 2020). Getting Real About Creating a High-Performance Culture. Retrieved from: https://www.kincentric.com/-/media/kincentric/2020/january/getting-real-about-creating-high-performance-culture.pdf
- Adler, S. (February 2021). The Corrosive Impact of Disengaging Leaders. Retrieved from: https://www.kincentric.com/insights/the-corrosive-impact-of-disengaging-leaders
- Adler, S. (January 2020). Why Succession Planning Can’t Wait: Four Steps for Building a Leadership Pipeline. Retrieved from: https://www.kincentric.com/insights/why-succession-planning-cant-wait
- Denicola, P. (August 2021). A Deeper Dive into Talent Management: The New Board Imperative. Retrieved from: https://corpgov.law.harvard.edu/2021/08/12/a-deeper-dive-into-talent-management-the-new-board-imperative/
