Creating and Retaining ‘Best Brains’ and Human Assets

Blog

Back to Blog
Posted by: Dr Wilson Tay

While we wish our friends or colleagues well at their office farewell or retirement parties and toast to their future success and well being, some of us in the management fraternity might quietly worry about ‘the intangible capital’ that is leaving the company along with these talented  ex-colleagues  or retirees.  This  concern signifies the dread that an incredible amount of institutional history, memory, professional knowledge, competence and expertise is walking out of the company’s doors or worst still, leaving the country. As management leaders, we know that it is our ultimate accountability to leave the place better than when we first found it or were entrusted with it. As we cannot remain in the corporate driving seat forever, the challenge and dilemma of management leadership is to build and retain the talent capacity and leave the organization stronger than before. This requires deliberate transition management which involves knowledge, talent and succession management.

Does our organization implement a formal workforce planning process (knowledge and talent management system) in place to capture employees’ knowledge and experience? What are we doing to anticipate the exodus of our best brains and talents, deal with key vacancies and capture the critical information, knowledge and expertise that exit our gates? Do we have an effective knowledge and  talent  management  system  to  retain  and  enhance  the intellectual capital that we have already built to allow us to survive and compete effectively in the fast changing business environment?

Brain Drain

‘Brain drain’ or ‘human capital flight’ is the emigration of trained and talented individual human capital to other nations or jurisdictions, due to conflicts, lack of opportunity, health hazards where they are living or other compelling reasons. It parallels the term ‘capital flight’ which refers to financial capital that is no longer invested in the country where its owner lived and earned it. Investment in higher education is lost when a trained individual leaves and does not return to the home country to contribute to its national development.

Brain Gain

The counterpart of brain drain is ‘brain gain’. Most nations are now striving to formulate their own brain gain strategy, enticement programmes and initiatives to draw the best brains and talents to their respective countries. They will devise offerings of attractive remuneration packages, research and business opportunities, family benefits, tax incentives and exemptions to attract the best to come to their countries.

Talent is Mobile

This phenomenon of brain drain or talent migration is perhaps most problematic for developing nations where it is widespread. This talent mobility will be accelerated with globalisation, war for talent and free movement of people. In these countries, higher education and professional certification are often viewed as their ‘passport to migration’ and is the surest route of escape from a troubled economy or difficult political situation.

Management Insight #1: Identify and provide talents with better job incentives, remuneration packages, engagement to attract and retain these talented people.

Organisations must not only identify their internal talents but also attract external talents but also engage, review and remunerate these employees’ salary to match the amount of work and personal contribution, compensating according to the employee’s expertise, knowledge and taking cognizance of market rates. It is vital to keep these employees motivated as they will leave the organisation if the organisation does not provide for their personal development and a conducive, growing environment.

A survey done by Gallup Organisation has shown that engaged employees are more productive employees. It also proves that engaged employees are more profitable, more customer-focused and more likely to withstand temptations to leave if they are rewarded and recognised appropriately. Talented people know they are in demand and the manager of these key resources need to have the management competency to manage, engage and coach these high potential and high performing people. There is a general saying that employees often leave their employment because of their managers rather than the company. Hence, management leadership is crucial in managing your talented people.

Management Insight #2: Create the right environment and new business opportunities that can put the talent’s skills to good use.

The economy is doing well, so there is a better chance of creating the right environment and generating new business opportunities that can attract both local and foreign talents to Malaysia. This provides an impetus for the development of skills and job opportunities to attract both highly skilled and unskilled workers.

Talented people should be given the opportunity to have a stake in the organisation that they help to build, whether through bonus, profit sharing, stock options or share partnership. People are more committed and loyal to a company in which they have a stake or sense of ownership, and will work and invest for their own growth and future wealth. Why would an employee leave if the company can fulfil most of their expectations and needs?

Management Insight #3: Inculcate a culture of diversity, meritocracy, excellence and recognition.

The Government and industry need to fill key positions with the best talents based on diversity, meritocracy and ability to deliver high performance and excellent service. This would encourage a high performing, exacting maintenance, achievement and quest-for-excellence culture while culling fears of favouritism and cronyism. A diverse culture and workforce is the ‘nest bed’ for innovation and performance excellence.

Management Insight #4: Increase opportunities and benefits for women and retirees to stay longer in the workforce.

Provide the opportunity for the women and the experienced and aging workforce, which include both the men and women to stay in the workforce longer. These people can continue to contribute and stay in the workforce on short-term working contracts which allow flexibility on both sides.

Management Insight #5: Government and companies must collaborate to look for ways to ensure staff satisfaction at the workplace such as providing amenities and balancing work with social life.

Employees in a company need to feel appreciated and be given opportunities  for  continuous  learning  and  development  of important competencies and skills that boost career advancement. People at work must feel that they are improving their competency and hence their marketability. An integrated talent management and succession planning framework in the organisation will greatly help to engage and fulfil both employers and employee aspirations. As part of their corporate social responsibility to long-serving employees, companies should be required to have pre-retirement programmes early to prepare these employees with the necessary competencies for retirement, lifelong learning and life enrichment.

Management Insight #6: Government must step up its training expectation and compel companies to use their Human Resource Development Fund allocation to upgrade their employees’ skills and long-term organisational investment in human capital.

Human capital is now recognised as the key to future national growth, productivity and competitive success. Hence, training and development is important as people need to be competent in their own discipline, keep abreast of global trends and upgrade their skills to excel in their career and be relevant today. Many companies contribute  to  the  statutory  Human  Resource  Development Fund (HRDF) but are reluctant to send their people for training and development. Their main reason is that they may lose their people after they have sent them for training. As a nation we must develop the culture of continuous training and development. Every company must train and even if there is ‘people poaching’ or job hopping – despite the inter-organisational swing and roundabout of employees, the country will benefit as a whole, leading to a more competent workforce ultimately. Therefore companies must be compelled to develop their people.

Management Insight #7: Allocate more funds for education, training, research and development in targeted fields and industries that are commercially viable.

An education hub which promotes ‘elite’ or apex universities in Malaysia can be created and promoted, which can train, develop and prepare graduates to be ready for the ever-changing business environment amid globalisation and technology advancement which have changed the way we work, learn and play. The triple helix synergies of government, industry and academia need to be harnessed to play a significant role for national economic growth through closer and more effective collaboration which need to be market and industry driven.

Share this post

Back to Blog
Need help?
Hi, how can i help you?