EMPLOYERS WHO promote those employees who are the most effective at marketing their own achievements risk failing to advance those with the greatest potential or even “promoting incompetence”, a provider of psychometric assessment tools has warned.
EMPLOYERS WHO promote those employees who are the most effective at marketing their own achievements risk failing to advance those with the greatest potential or even “promoting incompetence”, a provider of psychometric assessment tools has warned.
A workplace survey last year by Mercer found a sea change had occurred in the way pay increases are awarded. Previously the pay increase budget was distributed across the board, with a small amount left over for bonuses for high performers; now, high performers receive the budget and what is left over is distributed across the board. With the attraction and retention of the best talent topping the list of challenges for HR professionals, pressure to reward high performers looks set only to increase.
Employers who promote those who are the most able at promoting themselves, however, are making biased and maybe flawed decisions, according to Sarah Kearney, managing director of SHL. “Making a decision to either select or promote someone based on an employee’s ability to market their own achievements is fraught with danger,” Kearney said. “Just because you like someone does not mean they are the employee most deserving of a promotion.
“Overlooking [more deserving] employees not only impacts the organisation financially, it affects the employee’s morale and motivation” she said. “Not only are the chosen ones resented, the employee’s respect and trust for the boss goes out the window.”
The Mercer survey found that while in 2005, Australian companies increased wages well ahead of inflation, only the top performers received huge increases while a majority of employees had to make do with what was left.
Retaining top talent increasingly forces employers to be as creative as possible in offering incentives to high performers and, as Kearney notes, remuneration is only one way in which to reward employees. “Employers need to be more discerning in their assumptions regarding financial rewards” she said. “Providing financial reward is adequate; however, employees can often be highly motivated by excellent working conditions, recognition schemes, effective team environments and flexible work arrangements.
“By exploring alternatives to financial rewards, employers are catering to the intrinsic motivators of individuals and thus promotions are not based solely on how to distribute the limited amount of money in the pot.”
