‘Quiet hiring’ will dominate the U.S. in 2023, says HR expert—and you need to prepare for it

Natasha Piñon

A new year is here, and with it, a new workplace phenomenon that bosses and employees should prepare for: quiet hiring. 

Quiet hiring is when an organization acquires new skills without actually hiring new full-time employees, says Emily Rose McRae, who has led Gartner's future of work research team since its 2019 inception, focusing on HR practices.

Sometimes, it means hiring short-termcontractors. Other times, it means encouraging current employees to temporarily move into new roles within the organization, McRae says.

"The reality for the next year is — whether or not we go into a recession — everyone's a little nervous," she says. "In a lot of cases, organizations are not necessarily doing a hiring freeze, or layoffs, but maybe slowing down a little bit on their hiring." 

But every employer still has financial goals to meet — often, ambitious ones.

"The talent shortage that we talked about throughout 2022 hasn't gone away," McRae says. "So, you're in a situation where it's harder to get head count, and you have a desperate need for talent."

Why quiet hiring is on the horizon

Hiring usually falls into one of three categories: backfilling old roles, creating new ones to help the company grow or addressing an acute, immediate need.

Quiet hiring is all about that third category, even if it doesn't technically involve any new hiring at all. The idea is to prioritize the most crucial business functions at a given time, which could mean temporarily mixing up the roles of current employees.

McRae refers to that as "internal quiet hiring." She cites a recent example: Australian airline Qantas, which asked executives to address a labor shortage last year, in part, by rotating in as baggage handlers. 

"The executives are doing it in part because it's the right thing to do to keep the company going, but it's also just a rotation that makes sense for a lot of people," McRae says, noting that they also gained a deeper understanding of how their operations work.

There's some inherent tension here: If you're temporarily reassigned to a different part of your company, you might interpret that as being told that your regular job isn't particularly important. After all, nobody's getting hired to backfill your old responsibilities.

Bosses can help address that by clearly articulating why the specific project or business division is so crucial to the company's success. It'll help the employee feel valued, and less likely to see the move as a sign that they need to start looking for jobs elsewhere.

Alternatively, companies with few movable employees can hire short-term contractors to help keep things afloat throughout the year. McRae calls that "external quiet hiring."

"We have to deploy our employees against the priorities that matter the most," she says.

How to take advantage of quiet hiring

No one wants to get thrown into an entirely new role if they already like their job. Nobody wants to work for a crumbling business, either — and McRae says plenty of companies could crumble without quiet hiring this year.

With that in mind, an effective quiet hiring process rests in how it's framed to employees. "If you're asking a bunch of people to make this move, you should be able to articulate: What does this mean for them?" McRae says.

If your boss suggests a new set of tasks for you, they'll have more luck motivating you if they can express how much it'll help move your career forward — whether you're more interested in climbing the corporate ladder or improving your work-life balance.

"If you're just saying, 'OK, this is where we need people.' Great, but that's not enough of a reason for people to want to move," McRae says. 

Plus, if your company makes an announcement about needing employees to pivot roles, and you're interested, you can use it as an opportunity to discuss your long-term goals. You might even wrangle a promotion for yourself, McRae adds.

"This is a really good chance for employees to sit down and say to their managers, their HR people and to the company as a whole, 'Yeah, I'm willing to do this. Let's talk about what this means for my career,'" she says.

5 Facts of Conscious Communication

AMA

In all aspects of life but especially in the workplace, effective communication is about much more than choosing your words. Along with what you say, how you say it—your tone of voice, inflection, volume and rate of speech—and how you look when you’re saying it routinely affect whether your message gets heard in the way that you intended. To avoid misunderstandings and to build better working relationships, every manager needs to be a conscious communicator. 

Becoming a conscious communicator starts with self-awareness. Do you tend to speak at a pace that people generally find comfortable and easily to understand, or do you talk so fast that they struggle to keep up? Do you regularly pause to reflect and gauge your listener’s attention and receptiveness? Do you talk with your hands and, if so, do your gestures complement and reinforce your words, or are they excessive and distracting? What about your posture and your facial expressions? Being aware of your communication style and its impact encompasses all of these factors and more. A conscious communicator also identifies any potential stumbling blocks and accepts personal and professional responsibility for communicating well—clearly and respectfully. Finally, a conscious communicator analyzes their interactions with others and takes appropriate actions to maintain relationships while achieving goals and business results.
          
To help you excel as a communicator with your team members, your colleagues, and key decision makers and stakeholders, the experts at American Management Association (AMA) highlight five axioms of conscious communication. As you work to improve your effectiveness, both in formal presentations and casual conversations, keep these crucial facts of communication in mind:    

Axiom #1: When two (or more) people are together, communication naturally happens—it’s impossible not to communicate. Each person will read and interpret some behavior of the other person—whether it’s eye contact, arm motions, an offhand remark or even the positive energy someone gives off—regardless of whether they engage in an actual conversation. 

Axiom #2: Each message contains both some content and some statement about the relationship between the two people. Even when it’s not explicitly spoken, communication typically conveys whether the communicators know one another or are strangers, and feel comfortable with each other or have some sort of tension between them.   

Axiom #3: While content messages are usually delivered through words, relationship messages are most often nonverbal.Consequently, communicators have to consider both the content and relational aspects of a message, and both what’s said and what’s conveyed through body language, to achieve a full, clear and accurate understanding of its meaning. 

Axiom #4: In an ongoing relationship, the messaging from one interaction can affect how the next interaction is perceived and processed. Among co-workers who frequently communicate, “relationship residue” can occur. Impressions from previous interactions carry over, impacting the meaning attached to the message. For instance, if a person tends to be critical and dismissive in early encounters, their messages might be seen and heard in a negative light going forward—even when what they mean to convey is encouraging and positive.     

Axiom #5: The real or perceived power of the communicators impacts how meaning is assigned to messages. In any workplace relationship, the role and authority of people with whom we communicate affects how we respond to what they say. Even if the message is similar in content, your response is likely to be different to that message if it’s delivered by your boss than if it comes from your assistant.    
 
Being aware of these aspects of conscious communication will help you improve your skills as a communicator with your team members and throughout the organization.  

It’s time to prioritize humane, thriving work environments even if it means slightly less productivity, Stanford scholar says

BY MELISSA DE WITTE

The global pandemic is an opportunity to make fundamental changes to how society approaches work by creating working environments centered around creativity, problem-solving and equity, says Adina Sterling.

Adina Sterling(Image credit: Nancy Rothstein)

When it comes to pandemic-related job losses, the National Women’s Law Center found a dramatic difference between the numbers of men and women returning to the labor market, with women trailing behind men by about 1.1 million jobs. What can be done to bring women back into the labor market?

As a society, we need to use the pandemic as a way to pause and reconfigure our priorities. This means companies need to treat women and men and gender non-binary people, as whole human beings, with lives and loved ones outside of work. What the pandemic has surfaced is what was there all along: Too many people are living and have been living on a tightrope, trying to balance multiple and competing demands. We should stop pushing productivity in the workplace at all costs, and begin to push humane, thriving environments. We need to stop allowing shareholders to have the loudest voices. These voices have led to high levels of efficiency increases in the U.S. workforce over the last four decades to the tune of almost 70 percent, and yet almost none of that has gone to the bottom 80 percent of the income distribution. This is not a new statistic.

We need to redesign companies to center problem-solving, equity, collaboration and creativity so that people can live balanced work lives. We need to move away from an efficiency and the bottom-line model, give workers more power and design better jobs. People are really tired, whether they are retail workers that have to do shift work for 50 to 60 hours a week or executives that are dealing with the 24/7 workweek. If we saw the problem as similar across these groups that are rarely in the same room together, we would make progress.

But we can’t expect companies to shift from centering productivity to prioritizing creativity, problem-solving and equity within the employment relationship on their own. Broad collaborations across multiple stakeholders, including governments, corporations and academic institutions, are needed.

I want to talk also about the role of social networks and careers – one of your areas of study. With the pandemic disrupting the workplace and co-workers no longer networking with colleagues like they used to, how are networks changing? What risks do these changes pose for women in particular?

The thing to remember about networks and careers is that networks cut both ways with respect to inequality. Some studies show the pandemic has likely truncated networks or led us all to have smaller networks because we have fewer opportunities to connect, including serendipitously, like we have been able to in the past. I would also expect it has led to greater entrenchment or the deepening of our relationships with our close contacts, and we are therefore getting less “new” information or ideas that we might get from weaker connections that we now see less often than previously. This can all be bad from a social network standpoint.

On the flip side, though, it means that perhaps companies have had to figure out other means for doing a lot of what they do – i.e., they have had to have more formal processes in lieu of informal, network-based ones.

Take hiring for instance. Over the 2020-2021 recruitment cycle, it was impossible for companies to send their employees to travel to college campuses to recruit early-stage workers. As a result, it’s possible that instead of social networks – e.g., alumni networks – surfacing as a main way companies staffed positions, they had to go through formal means, like advertising their job openings to evaluate candidates even though they might not have come through social networks. Generally speaking, this can be a good thing – whenever companies move beyond using old-style networks to recruit, it tends to open up doors, including for women. So, as long as we can get what I call substitution effects – the replacement of networks for more formal, transparent and open processes to hire and promote workers, for instance, we are likely making some progress. I am finding some early evidence that this is what occurred in my research on the pandemic’s effects on hiring over the last year.

You have also examined the social inequality of networks. Is there anything in what you’ve just described that might exacerbate existing inequalities or biases towards women in the workplace? 

It is likely that after the last few years, because we have all had our networks shrink somewhat, they have become more homophilous than what they were previously. Homophily is the idea that “birds of a feather stick together,” so to speak, or that people are more likely to interact when they are of similar backgrounds. As we come out of the pandemic, we all should take a look at ways to diversify our networks. Institutions are a big part of that. They play a role in bringing people together, around projects, initiatives and goals. When people have shared responsibilities and are working across differences, it turns out that this is a really good way to help networks grow. It allows people to have “roles,” which is a great way to get people to interact and develop their networks.

8 Skills to Become More Culturally Adept at Work

AMA

In a global business world and any organization where people of various nationalities, ethnicities, races, genders, and generations work together, cultural competency is a vital skill. Whether you’re the CEO of a multinational corporation, a shop floor manager at a factory, or a team leader within a small or mid-level company just about anywhere across the USA, it’s imperative to develop the ability to recognize and respond effectively and appropriately to cultural differences in perspectives, practices, values, behavior, and norms. When you’re sensitive to and respectful of how people from other cultural groups think and act, you’ll be able to adapt your communication and behavior style as needed to avoid misunderstandings, mitigate conflict, build trust, support collaboration, and, ultimately, improve performance and results.

Improving your cultural competency, like every core business competency, requires a combination of commitment, effort, and education. To get you started on a firm foundation, the experts at American Management Association (AMA) have identified eight related skills that need to be well-developed. Here’s an overview:

Self-Knowledge. Everyone has biases based on our own background, experiences, and preferences. Having a cultural bias doesn’t make you a bad person, let alone a bigot. But it’s important to be able to identify and recognize your own deep-rooted feelings about and reactions to different ethnic, racial, or other cultural groups—and understand how those emotions impact your thoughts and behavior. To prevent a bias from determining how you judge or treat an employee from a different group, self-knowledge is crucial.

Self-Regulation. Becoming aware of your biases isn’t enough. You have to be able to manage the feelings and emotions those biases might trigger. Self-regulation is the ability to consciously choose how you respond to employees from different races, ethnicities, genders, religions, and age groups as opposed to reacting based on unconscious biases and the negative stereotypes attached to them.

Interpersonal Sensitivity. Everyone is their own person, regardless of their group affiliation, and deserves to be seen, heard, and valued as an individual. Interpersonal sensitivity is the ability to accurately assess the abilities, states, and traits of each unique employee from verbal and nonverbal cues—and adjust your behavior as needed.

Cultural Sensitivity. While everyone should be viewed as an individual, it’s important to also acknowledge and validate the influence of larger group ties. Cultural sensitivity is the ability to respond appropriately to the feelings of others who share a common racial, national, religious, linguistic, or cultural heritage. This includes taking care to avoid cultural appropriation. When someone from a dominant culture adopts the dress, mannerisms, slang, or other practices of a culture that is not their own and has been historically marginalized or oppressed, it often reinforces an imbalance of power that still exists and thwarts productive cultural exchange.

Empathy. Despite our cultural and personal differences, we’re all human beings with the same core human emotions. In the workplace, an empathetic leader is sensitive to each employee’s feelings, on a human level. Practicing empathy also means having the ability to take into account others’ perspectives and circumstances, even when they’re vastly different from your own.

Flexibility. Being flexible goes beyond responding to your company’s changing circumstances and expectations with deftness and ease. In terms of diversity and inclusion, flexibility means staying open to and embracing the perspectives that all employees bring to the table, encouraging others to share views that may differ from your own, and respecting others’ opinions and ideas.

Curiosity. Being curious is a wonderful quality for bridging gaps and building bonds among diverse employees. Curiosity is not just being willing to learn about different cultures. In the workplace, curious leaders seek out opportunities to interact with diverse individuals and express a genuine, respectful interest in discovering their culture and its distinctive qualities.

Tolerance for Ambiguity. It’s not unlike being a foreigner struggling to navigate an unfamiliar country. When managing a multicultural workforce, uncertainty, unpredictability, misunderstandings, and tensions come with the territory. A healthy tolerance for ambiguity can help you handle it all with calm and confidence. What’s more, when you understand the dynamics behind cultural clashes, you’ll be better equipped to use conflict as a constructive process to exchange ideas and bring about resolution.

Keeping these skills in mind and practicing them whenever possible is the first step to cultural competency and sensitivity. The payoff: a more productive and happier workplace for everyone.

How managers' time spiralled out of control-

Journal of Business Management

In recent years, enterprises around the world have carried out intelligent transformation, smart factory, intelligent workshop construction boom surging, some places even appeared "work quickly," "no conditions to create conditions to go" situation, this is happy or sad? What is the root cause behind the wide demand for intelligent transformation? What is the relationship between man and machine? Is intelligence more important, or transparency?

The smart factory is "playing bad"?

From the dozens of smart factories and smart workshop cases, the author found that they exist several relatively common phenomenon.

1. The input and output of smart factory is better in industries with large production volumes.For example, in the chemical fiber, cotton spinning, medicine, electronics industries, from the investment to the finished product process, less and less manual work, through the intelligent transition of production equipment, enterprises have won a reliable scale advantage.

A well-known cotton spinning enterprise in Jiangsu has successfully built a smart factory in 2018-2019. The number of workers in the same spindle is only one fifth of the traditional factory. The overall performance is far superior to the local counterparts, and the competitive advantage is significant. Now the investment has been basically recovered.

2. The construction of smart factory in discrete manufacturing industry is easy to focus on hardware, light software and neglect system.This situation is common in machining, food and other industries.

On the one hand, hardware visible, but also relatively good price, procurement, installation will be smooth. On the other hand, the software mainly involves production management, material management and the docking of equipment control system and production planning system, etc. It is difficult to fully consider the situation after normal operation in the construction period, so there are a lot of mismatch in the late.

And systematicness includes not only information system, but also the mutual adaptation of upstream and downstream collaboration mechanism and smart factory. Basically, the problem is solved only after formal use.

There is a home floor enterprise, in the cutting section to achieve intelligent, However, due to the problem of industrial agreement, before the execution of each production task, it takes a long time to adjust the design parameters, and manually input the machine terminal, resulting in low efficiency, no two or three days of batch life, generally not easily arranged here. As a result, the factory "reduced" to a tourist attraction, and rarely turn on.

3. Planning is out of sync.Some enterprises attach great importance to the construction of smart factories, but they are sloppy in planning the new factory, lack of sufficient research and study, often difficult to imagine how to make each station work in a specific space, what will be the conflict and so on.

It was like a family suddenly moving from their accustomed bungalow to a building. There is an enterprise in the layout of a new factory, after the processing center is installed, It was found that AGV car logistics routes and fire channel design conflict, the solution is either hit the wall, or remove a processing center, the enterprise is very distressed.

The planning of smart factory, in fact, involves a lot of fields, including water and electricity pipelines, the spatial layout of production equipment, the shortest logistics route, robot working environment, the convenience of workers' operation, personnel moving line, fire protection and so on.

Usually, the understanding of the smart factory is to carry out the infrastructure work first, and then to consider how to place the equipment and plan the space more carefully after the construction is completed, but it is not effective to realize the setup in advance.

Overall, these phenomena reflect the following problems:

First, the law of scale economy is ignored, and the investment in intelligent factories is not well prepared.

Second, as an innovative container for factory construction, the smart factory has some processes and modes that are completely different from the traditional infrastructure construction. However, enterprises lack foresight in human-machine collaboration, functional space collaboration, upstream and downstream business collaboration.

Third, under normal business conditions, enterprises lack foresight on the allocation of resources, capabilities and external conditions needed to operate a smart factory, leading to an increase in new irreversible costs.

In a sense, the smart factory has been "played bad" in recent years. A considerable portion of the input becomes the "bubble" under these labels of industrial Internet and smart manufacturing. Some enterprises become "martyrs" on the road of innovation. Likewise, more companies are watching, increasingly fearful of the failures they see around them.

So what are the top considerations when making decisions, building and operating a smart factory?

Respect the law of scale economy

The law of scale economy is still the basic law of economy, especially in the field of microeconomics. Unlike in the past, economies of scale now allow for the production of products that are not identical, allowing "no" change-over during continuous production.

The scale economy of the digital era is based on the calculation of the operating share cost. The production changeover has the conditions to achieve completely different products can also be low-frequency changeovers. In order to win the scale, such as 3D printers, as well as CNC drilling machine drill bit in the preset can be automatically replaced according to the needs of the workpiece.

In the industrial scenario, scale is embodied in the efficient "reuse" of industrial capabilities. The higher the frequency of reuse, the stronger the economic value and the better its sustainability. The scale of the industrial scene requires the full socialization of industrial capabilities. In a single, closed value network, industrial capabilities are not often called by other management units (market players).

But through the online way of socialization, industrial capabilities can be more industrial scene "see," this is an interactive process. The scale of the industrial scene produces the order "siphon," bringing the industrial siphon. Keeping the scale means that the processing cost and purchasing cost of a single product can be lower, resulting in a "value depression" and a siphon effect. Scale economy is not the scale of real products, but with the same kind of production process longer, the same capacity structure reuse frequency higher, which brings the time value of scale benefits.

From the above, we can see that the size of the smart factory is limited in two ways:

First, the time cost of smart factory changeover is high, which often comes from the constraints of upstream and downstream industry environment; Second, the coupling between intelligent factory equipment is too strong, order matching cost is relatively high. When the production task is not saturated, the socialization of production capacity is greatly constrained.

Therefore, some entrepreneurs believe that smart factories do not need to develop in the direction of "black light" factories and fully automatic factories. Enterprises also need to proceed from the actual, breakthrough to improve the capacity of bottleneck equipment, and gradually improve the coordination between equipment, as well as between equipment and business order fulfillment.

A pragmatic approach:

1. In some areas of production with more repetitive work and relatively perfect norms and standards, we can make more use of digital technology to improve the level of machine automation, and even use robots.For example, for assembly, painting, handling and other work, workers as long as the monitoring machine status, timely adjustment can be. In the case of uniform working standards, the advantages of machines are more obvious.

For example, a force of one newton is applied to press the first part into the hole of the second part. It is easy for the worker to grasp the magnitude of a newtonian force by his own feeling and experience. Different people, even the same person at different times will have different feelings, the actual work delivery can only be "big difference." But robots do a good job of solving this problem.

With the help of the sensor, the force of a Newton is always that large, ensuring the same standard every time. If there is an abnormal situation, the robot will also make mistakes, for example, there is a foreign object in the hole of the part, but the machine can not sense it, it will still follow the fixed procedure. At this time, the need for human intervention, at any time to monitor the running state of the robot, eliminate hidden dangers. With some sensor settings, this type of problem is not difficult to solve.

Robots and workers have different characteristics, cooperate with each other in specific scenarios, perform their respective duties, and finally complete the delivery, which should be a more appropriate mainstream state.

Should human intervention be necessary in exceptional cases of robotic work? Can we develop new coping strategies, eliminate them independently and restore normal order? This issue may need to be further analyzed in different industries and scenarios, and belongs to the category of continuous iteration.

2. In the field of accessories and tools consumption, digital technology can be used to upgrade.There is a steel processing plant, in the steel cutting workshop, every day to consume more than 200 saw blade, is a high cost. Every day there are more than a dozen reasons for the saw blade aging, saw blade broken in the steel situation, increased the cost of maintenance, rework and other motor burn out.

How to decisively change before the saw blade life advent?

Electrical and energy engineers based on historical data, set a different operating conditions saw blade life of the basic data. At the same time, through the current sensor to detect the changes in current, saw blade aging, the motor working current will slowly increase.

When the current is detected for 3 minutes (different working conditions have different time) more than the rated value, timely with the working conditions of the saw blade life comparison, and through the alarm prompt manual intervention.

Half a month after the implementation of this technical improvement project, the consumption of saw blades in the cutting workshop was reduced by 20% and no additional losses occurred. Surprisingly, energy consumption has also decreased, saving the overall cost of more than 10,000 yuan.

This is a very significant example of "small change and small change" through digital technology, which is actually upgrading the enterprise value chain, saving costs and ensuring better production order. This does not require an immediate introduction of high-end sawing equipment.

Which is more important, transparency or intelligence?

One of the constraints of the smart factory mentioned earlier is that the standard smart factory is more suited to socialization as a whole, that is, for use by other peer enterprises, because it is highly coupled in terms of its components and environment. This is a limitation in areas where agile collaboration is required, particularly in the project manufacturing business.

There are some project manufacturing companies in China, they pay attention to the efficiency of a single equipment, but also pay more attention to how to maximize the benefits of existing production capacity through the transparency of the upstream and downstream of the industrial chain. In fact, it is to open the dynamic information of the working conditions of its single equipment and equipment combination to the industrial partners through digital technology.

Here is a fictional story based on actual business situations.

In August 2023, Li Ming entered the steel pipe processing workshop of Guangdong Henghong Metal Products Co., Ltd. as the representative of Ardmore Shipping Company in the UAE. He will work here for 3 months, responsible for 22 batches, 16 specifications of the pipeline welding process site verification.

September 5, 9: 00 am, after the regular online briefing, He came to the steel pipe processing workshop, the day's work is the number of C05D 30 steel pipe surfacing, this number of steel pipe diameter 115 cm and below from 260mm to 210mm. Previously and 3 #, 5 #, 6 #, 8 # surfacing machine operator Huang Xuanyu confirmed the process parameters and drawings. According to the plan, 9: 30 Huang Xuanyu test machine, and again in the welding workshop to confirm the processing technology.

Huang Xuanyu is adjusting the machine, as a skilled, he quickly adjusted the three machine parameters, and in the 3 # test machine, all goes well! Li Ming was about to swipe his card to confirm on the terminal in the workshop when a barrage of bullets suddenly appeared on the work app and he also received a text message. It was originally the quality director of Ardmore Shipping Company who requested to adjust the thickness of the inner wall surfacing from 2.5mm to 3.5mm for the parts below 115cm. The specific requirements and reasons for change are in the update package of the system, requiring on-site supervision and immediate disposal.

Li Ming opened the link of the message sent by the quality director on the APP, and immediately entered the process change release page. After clicking on the release, the project manager, technical director and dispatching room of Su Heng company were aware of it for the first time, and the system updated the version of the material surfacing processing parameters involved at the same time. Less than 2 minutes, HuangXuanYu APP also sounded a rapid bell, at the same time 3 # machine has stopped working, its terminal flashing red light in prompt revision of operating parameters, but he can not operate.

Huang Xuanyu rarely contact this situation, after Li Ming tips, he in the workshop terminal card, confirmed the process change. The 3 # terminal adjusted the parameters immediately. Li Ming confirmed that 3 # can work normally, 5 #, 6 #, 8 # welding machine also automatically use the same parameters preparation.

The site quality inspector Chu Chunyan synchronizes the process change on her APP and office PC, and updates the inspection requirements in real time. The parameters were updated in the template for the test report. The inspector's first item inspection work list shows the need for coordination at Huang's workstation at 9: 20 a day in advance.

Huang also confirmed the process parameters of 5 #, 6 # and 8 #. After testing and comparison, the thickness and density of surfacing welding machine meet the requirements, and the current is stable. Li Ming, Chu Chunyan and Huang Xuanyu successively brushed the card at the terminal of the surfacing workshop, and the surmounting operation of the project officially began on this day.

At 11: 12, Li Ming got the same screen interface of the terminal of 4 welding machines in the office. With the help of the system, the parameter check is normal. 8 # work progress slightly behind other machines, he saw Huang Xuanyu over there to confirm the barrage, the reason is that the train sent a new batch of steel 3 minutes late.

In the afternoon, Li Ming went to the workshop again and exchanged views with Huang Xuanyu and Chu Chunyan on the processing technology of a batch of steel pipes the next day. They looked at the inventory and found that the material had been locked in the warehouse, waiting for the process to be confirmed before it could be "ready to go" into the driver's job list.

The three people also connected the big screen to the terminal machine in the workshop. They checked the process change record after May 2022 about the change of surfacing thickness, and found that it was mainly caused by the change in the specific location of the prefabricated parts. They made a knowledge label for this finding, the thickness change scenario, that can be used later by designers.

At 17: 20, the system pushed all the production records, quality inspection reports and electrode consumption reports. Li Ming read, signed an electronic signature.

At 17: 30, Li Ming saw the next day's specific operation plan, which included the detailed time of the substrate (steel pipe) and consumables (welding rod) to arrive in batches. He found that Huang Xuanyu, Chu Chunyan have seen this plan, and confirmed the specific work node. He also refreshes the next day's work nodes, as suggested by the system, where he needs to coordinate with other partners. At this point, the individual's daily work system has also been generated, he signed the electronic signature. There are no more tasks on the to-do list for the day.

This deductive story vividly illustrates how the internal and external roles of an enterprise can collaborate in real-time manufacturing based on a unified system and transparent mechanism.

Factory intelligent transformation priority, or transparent transformation priority? Different companies have different choices. In terms of ultimate business benefits and market competitiveness, it is mutually reinforcing to enhance transparency in the production method dimension and intelligence in the productivity dimension.

Shanghai Chip Company Vegetable Package Award! In this epidemic, vegetables are worth more than chips!

Electronic Engineering World

Recently, the local government has taken strict "blockade" measures due to the persistence of the Covid-19 epidemic in Shanghai, which has also led to the supply of living materials in some areas being blocked. As the blockade continued, many residents had been facing the problem of food running out and began to appear food shortages, it’s a little difficult to buy vegetables" and other stuff.

In response, many semiconductor companies have begun to support the employees and even some companies sent a rich "epidemic gift package." As the domestic semiconductor talent has been extremely scarce, at this time the major semiconductor companies have urgent staff needs, Timely "feeding," them can win over a lot of old staff's heart, and attract more talent's attention. Thus, the Shanghai semiconductor companies "epidemic package" competition officially kicked off.

Let's take a look at each semiconductor manufacturer's "epidemic gift package" in the end what?

1. Nvidia

Nvidia sent 1,500 pieces of "Epidemic Package" to all employees in Shanghai, covering 6 kinds of vegetables about 5kg and pork about 3kg.

2, Texas Instruments

Texas Instruments' "epidemic gift package" is mainly vegetable based, relatively rich varieties.

3. Qualcomm

Qualcomm's "epidemic package" provides a "three choose one" program, the price of about 500 yuan (including shipping).

4. NXP

NXP's "Outbreak Package" offers a "Choose from Three" option.

5. ST

ST's "epidemic package" is also very rich.

Image

6、ADI

ADI's "epidemic package" is also a combination of vegetables, eggs, meat and fruits.

.……

Some Aspects of Corporate Social Responsibility and Company Reputation

Evidence from Serbian Business Environment

Biljana Chroneos KrasavacUniversity of Belgrade, Faculty of Economics, Serbia http://orcid.org/0000-0002-1486-4825

• Ema KaramataUniversity of Belgrade, Faculty of Economics, Serbia http://orcid.org/0000-0002-3301-1094

• Jasna Soldić-AleksićUniversity of Belgrade, Faculty of Economics, Serbia

• Katica RadosavljevićUniversity of Belgrade, Faculty of Economics, Serbia

Abstract

Research question: This paper examines some aspects of corporate social responsibility (CSR) and company reputation (CR) in the Serbian business environment during the COVID-19 pandemic. Motivation: The survival, growth and development of companies in the current business environment are conditioned by their capability to reach socially responsible decisions and carry out activities that meet the expectations of different stakeholders. The main motive for this research has stemmed from the current global corona virus pandemic and the way this state of affairs has affected socially responsible behaviour of companies. The research of activities Serbian companies carried out in the time of crisis prompted us to explore the possible relationship between corporate social responsibility and its effects on corporate reputation, and consequently business results. Research idea:An empirical research has been conducted with the view to investigate the position of the public on the importance and impact of CSR on corporate reputation, and also to determine the key factors that guide the decisions of people living in the Republic of Serbia to shop, bearing in mind the socially responsible behaviour of companies. Data: The sample included 173 respondents, the number that allowed valid conclusions. The questionnaire was anonymous; all the respondents were residents of Serbia with access to the internet and willing to fill in the questionnaire, either by following the link advertised on social media or replying to the e-mail. Tools: The gathered data were processed and analysed using descriptive and explorative statistics. Research hypotheses were tested by: Frequency tables, Crosstable procedures, Paired Samples t-test, Spearman`s coefficient of correlation, Chi-square test, and Phi coefficient of correlation, resulting in conclusions and corresponding suggestions. Findings: Respondents perceive companies as social actors driven not only by profit, but by the interest of the community and their business environment. They believe companies can assume their responsibilities through different aspects of doing business, especially by contributing to the improvement of their consumer’s lifestyle. The majority of respondents tend to buy from companies they perceive as socially responsible from the point of view of further development of the society and their ethical behaviour towards the community.  Contribution:The findings can encourage the company’s management to direct their financial and organizational resources into the better management of the CSR, especially during the crisis, because solidarity and care for the most vulnerable part of the population lead to an improvement in the reputation and business results of a company.

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9 Key Roles of Change Leaders

American Management Association

From adopting new technologies to adapting to meet increased customer expectations, change is essential to business survival. Change management—a systematic approach to keeping change under control—supports employees throughout the transition period and prevents chaos. Yet, beyond change management, driving and steering significant change within an organization demands change leadership.

What is change leadership? It’s more than being responsible for planning and managing change. A change leader influences others to re-think what they’re accustomed to doing and embrace the possibility of doing something that’s completely unfamiliar. Along with offering an inspiring vision of bold transformation, a change leader empowers others to step outside of their comfort zone and start doing something new and radically different with confidence.

Effective change leaders are crucial to business and desperately needed during times of rapid advancement and rampant uncertainty. As the experts at American Management Association (AMA) know, change leaders are not born but made. For those embarking on this path of professional development, following are nine key roles of a change leader that you might be called upon to perform:

1. Understand the need for change. To convince others to reject the status quo and welcome change, you need to fully understand why your organization is undertaking this critical initiative. If the change doesn’t make sense to you, how can you expect others to see its value?

2. Assess readiness for change. Are your team members ready for this change? If they’re already overwhelmed with job responsibilities and pressures, prepare for resistance.

3. Increase readiness for change. Find a way to make the proposed change more appealing and doable for your team. Consider providing additional training or delivering a presentation on how this change will streamline a work process or solve a common problem.

4. Manage scope and speed of change. Is the change initiative too ambitious? Is the timeline for implementation too tight? Take steps to narrow the focus and slow the pace for your team. Consider breaking a large-scale change down into smaller increments.

5. Understand stakeholders’ responses to change. Make an effort to see the change initiative from the perspective of your team members and others affected, such as customers and suppliers. Acknowledge and consider their emotional as well as their intellectual responses.

6. Communicate change management plans. Build commitment to change by communicating the change management plan. Remember: Change is difficult for most people. Clear and consistent communication can help make accepting change easier.

7. Connect change initiatives to strategy. To make change meaningful and worth the effort, reinforce the connection between the change initiative and the strategic direction in which your organization is heading.

8. Help people learn from the change. How has the change improved a work process or result? Document and share what your team has learned from the change with regular follow-up and evaluation. Call attention to how the change has benefited the entire organization.

9. Keep initiatives on track. Change must be sustainable. Monitor your team’s progress and the outcomes to be sure the change is living up to its promise and stays on course.

Being a change leader is a demanding, very visible, high-stakes responsibility. So, be sure to consider all the roles you’re expected to successfully execute before taking on that important change initiative.

New opportunities for scene-based development of banking institutions from the perspective of sinking markets

Yang Delin Operation and management May 11

Abstract: From the perspective of the sinking market, taking the payment and consumption capacity and branch layout capacity of banking institutions and the cooperation with the product capabilities of the same Cheng Yilong travel scene as an example, we propose planning suggestions for banking institutions in the field of business cooperation in the field of travel scenes: establish a mobile phone Bank + travel scenario ecosystem, increase diversified business consumption scenarios, and increase the activity and utilization rate of mobile banking client users of banking institutions; based on the capabilities of mobile banking and WeChat payment, use the travel scenarios of Tongcheng Yilong to create new joint credit cards and other new products, establish consumption growth target for long-term co-operations; relying on the network layout capabilities and technological innovation with the way eLong banking institutions, customers "come in" pro forma adjustments to account manager "going out" joint marketing mode , to dig deep The consumer's consumption potential of the sinking market .

I. Introduction

As of  March 2020 , the number of mobile Internet users in China has reached 897 million, an increase of 79.92 million from the end of 2018 . In 2019, more users in Tier 3, 4 and 5 cities and rural areas will enter the mobile Internet , and the sinking of the market economy has become a new opportunity for the development of the mobile Internet economy.

During the 2020 epidemic, Tongcheng Yilong, represented by the travel platform , based on the marketing capabilities of the WeChat payment platform , accelerated its penetration into the sinking market, and achieved new growth in traffic. At the same time, under the impact of the Internet development wave, the online and offline businesses of banking institutions have been affected and adjusted to varying degrees. Banking institutions should seize new opportunities as soon as sinking market development, banking institutions should be recommended and with Cheng Yi Long depth cooperation , product and service iterative upgrade , in order to meet consumer needs, enhance business efficiency .

2. On the status quo and characteristics of the sinking market

(1) The definition of sinking markets: markets in cities, counties and rural areas below the third tier. It includes about 200 prefecture-level cities, 3,000 counties, and 40,000 townships. The sinking market population accounts for 72% of the population, with a population of 1.004 billion.

(2) The growth rate of the sinking market: 2017-2019 China's online and rural online retail sales growth rate comparison, as  shown in Figure 1:

Figure 1 2017 - Retail sales growth comparison of our network and rural network in 2019

( Data source: " 2020 Sinking Market New Consumption Research Report " by Yibang Power Research Institute )

From the chart we can see 1 , in the three years 2017-2019 year, the overall growth of online retail downward trend , but our network of rural retail sales growth rate is higher than the national growth rate of overall retail sales network. The future growth opportunity of my country's online retail sales requires great attention to the development and consumption scenarios of rural online retail.

In 2020,Q2, the number of monthly active net increase in mobile Internet users in different city levels in China is  shown in Figure 2:

Figure  2 The scale of monthly active net additions of mobile Internet users in different cities in China in Q2 2020

Note: The scale of monthly active net additions = the  average MAU of the target user group from April to June 2020-the average MAU from April to June 2019

(Data source: QuestMobile "China Mobile Internet 2020 Semi-Annual Report")

According to Figure 2 the data found , leading the growth rate of China's retail sales network , thanks to the expansion of the sinking gauge the scale of the user market . Among them, from the perspective of cities , third- and fourth-tier cities are the main source of net increase in users.

(3) Characteristics of the sinking market

Sinking two characteristics of the market: First, the potential of sinking market size and growth of the large total of the following third-tier cities and rural areas, 1 billion people; second is the lack of quality of supply, not fully meet the needs of residents , sinking market There is still a big gap in the supply of goods and services compared with first- and second-tier cities .

Third, Tongcheng Yilong's sinking market development status

According to Tongcheng Yilong’s financial report for the third quarter of 2020, Tongcheng Yilong’s total transaction volume in the quarter was 39.7 billion yuan, achieving total revenue of 1.915 billion yuan, and total revenue increased by 59.5% from the previous quarter . Under the influence of the epidemic, Tongcheng Yilong achieved three consecutive quarters of profit .

An important factor for Tongcheng Yilong to achieve business growth in the third quarter of 2020 is its strategic layout in the sinking market in China. As of 30 September 2020 , registered users with Cheng Yi Long living in first-tier cities in China's non-registered users of the total 86.1%. The third quarter payment with Cheng Yi Long added on the micro-channel platform users about 67.2% from the domestic third-tier cities and less , and 63.3% compared to the same period in 2019 increased by 3.9%. At the transaction level, in the third quarter of 2020, Tongcheng Yilong's operation and development in low-tier cities will see a year-on-year increase of nearly 30% in hotel room nights.

Tongcheng Yilong leads the full recovery of the tourism industry , and through continuous innovation and improvement of its own technology and services , it provides consumers and users in the sinking market with a simpler and happier travel consumption experience.

4. Planning suggestions for the development of banking institutions in the sinking market travel scenario

(1) Establish an ecosystem based on "mobile banking + travel" scenarios

As soon as possible, establish an ecosystem based on the “mobile banking + travel” scenario to increase the activity and utilization rate of mobile client users of banking institutions. Banking institutions should actively embrace the digital technology capabilities of the Internet, deeply integrate the beneficial resources of their partners, and become the creators of the ecosystem. Banking institutions conform to the development trend of scenarios, seek new development opportunities through innovative cooperation with enterprises, and create a new type of cooperation and win-win financial ecosystem .

Banking institutions in the mobile banking client in, you can increase the same way eLong's travel scene goods and services, such as hotel reservation, air ticket booking, ticket, book bus tickets, etc. , both rich mobile banking itself the scene of goods and services , but also can make use of the same Cheng Yilong's strategic goal of sinking the market has created more market growth space and development opportunities for bank business operations. Mobile banking and cooperation with Cheng Yi Long product value model , shown in Figure 3:

Figure 3 The value model of product cooperation between mobile banking and Tongcheng Yilong

At the same time, the third-party payment platform is a market-oriented enterprise , and a large number of users' capital transactions and fund deposits are collected by the third-party payment platform , which may bring great risks and hidden dangers to the stability of the national financial system. But in the future to promote the use of digital currency, but they can solve the security problems caused by third-party payment platform , digital RMB applications for banking institutions in the field of payment and settlement also brings significant new opportunities.

      ( 2) Based on mobile banking and WeChat payment capabilities , jointly design and promote new products such as travel co-branded credit cards

With mobile banking and micro-travel scene letter ability to pay, jointly design and promote travel scene joint credit cards and other new products, establish long term of business objectives . When both mobile banking and WeChat payment are connected to travel products and services, users can increase their choice of payment consumption scenarios . Mobile banking also has a payment function . Users can use mobile banking to realize diversified services such as hotel booking, air ticket booking, balance checking, and transfer according to their own preferences.

According to business cooperation, a joint card marketing cooperation model in the mobile banking and WeChat payment scenarios is constructed, as shown in Figure 4:

Figure 4 Co-branded card marketing cooperation model in mobile banking and WeChat payment scenarios

Taking hotel reservation service cooperation as an example, banking institutions and Tongcheng Yilong can jointly design travel scenarios co-branded credit card products in two ways . The Mobile Banking entrance (micro-channel pay entrance) and hotel reservation service scenarios are summarized in the scene layer and function of ecological services layer , also unified service layer called the user's needs. 

The mobile banking payments can force (micro-channel ability to pay) and co-branded cards offer pay equity into the marketing operations layer, it can be collectively called the user's payment consumer level. When the demand service layer improves user demand is triggered , the convenience of the hotel reservation portal is beneficial to the full satisfaction of users' multi-scenario demand plan , and the payment consumer layer uses joint marketing activities to enhance users' desire for consumption and lower the threshold of user consumption.

(3) A joint promotion model that transforms from "coming in" to "going out"

Relying on the branch layout ability of banking institutions and the technological innovation ability of Tongcheng Yilong, the form of customer "walking in" is adjusted to the joint marketing model of customer manager " going out " to deeply tap the consumption potential of China's sinking market. 

The outlets of banking institutions are the "most expensive" channel resources of banks . Therefore , various banking institutions are also striving to seek business transformation opportunities for traditional outlets and quickly find new competitive advantages for their own development . However, the branch resources of banking institutions are irreplaceable in three aspects: one is that services such as audit nature need to be handled at the branch of the banking institution; the other is that compared with online services, the branch of banking institution can improve customer service experience. It is more deeply rooted in the hearts of the people; thirdly, the branches of banking institutions have the role of image display , which can establish bank brand information, convey brand ideas and values, and fully win the trust and satisfaction of customers.

It has a strong ability to develop the economy and user consumption potential, based at sinking the perspective of banking institutions can own network layout capabilities and team resources under line of external business cooperation and opening up , by means of scientific and technological innovation with the way eLong product enabling and development by the public Welcome new products. Outlets of the bank account manager can "go out" promotion strategy , for consumers and businesses within the network coverage to provide a wide range of goods and services, to enhance the breadth and depth of banking institutions customer service , increase user of banking institutions and with the way eLong Common brand recognition.

In order to reflect the value of marketing and banking institutions with Cheng Yi Long sinking market-based cooperation, design marketing scene with banking institutions grew Union model, as shown in  5:

Figure  5 Market growth model of banking institutions and Tongcheng Yilong marketing alliance

The "going out" marketing alliance is essentially a process of division of labor and cooperation between the two parties, through customer service and product value to obtain opportunities for sinking market growth, and the ultimate goal is to achieve a win-win alliance and cooperation . Only by deepening the value of the cooperation goals , can the cooperation energy of the marketing alliance be better utilized.

V. Conclusion

Sinking market has a huge potential for economic growth, both for the development of banking institutions , or to operate the same way in terms of eLong , should seize the opportunities and challenges of sinking market development. Through various forms of in-depth cooperation , we will continue to provide customers with high-quality products and services, combined with the country's expansion of domestic demand to drive economic growth , open up new markets together , and finely manage shared customers , so as to achieve a win-win situation for both parties. The goal.

The value of the highly collaborative innovation cooperation between banking institutions and Tong Cheng Yilong can provide a strong innovation driving capability for the economic recovery of the tourism industry, become a model of cross-industry cooperation , and ultimately aim to achieve high-quality economic development in China.

Complete Guide to Performance Marketing for eCommerce in 2021

Stephanie Farrell

Let’s face the facts, marketing in the DTC and eCommerce space is difficult. Ads are getting more and more expensive. Customer acquisition costs are rising and the unit economics are...

Let’s face the facts, marketing in the DTC and eCommerce space is difficult. Ads are getting more and more expensive. Customer acquisition costs are rising and the unit economics are not looking so good.
Simply put, managing all this can give even the most experienced marketers headaches. With so many choices, brands and companies fighting to get noticed, the question is: 
What can I do in 2021 to grow my eCommerce business?  Performance Marketing might just be the answer!
 
Nowadays we track and optimize everything from our steps and calorie intake to our sleep patterns and location. So it only makes sense that you are tracking and optimizing marketing results for your eCommerce business. Performance marketing will leverage tactics to understand the how, when, why, and where for all of your marketing efforts.
 
In this complete guide to performance marketing for eCommerce, you’ll learn all the steps you need to launch your own effective performance marketing strategy. If this is your first introduction to performance marketing, you are in for a treat!
 
Please reference our marketing glossary as often as you need.
 
You can skip ahead using any of the links below.

What is performance marketing?
What is performance marketing for eCommerce?
Step 1: Make sure your site is ready
Step 2: Set real goals and stick to them
Step 3: Define your target customer
Step 4: Define your value props
Step 5: Find the right channels for your target customer
Step 6: Find the right channels for your budget
Step 7: Write ad copy that converts
Step 8: Optimize
Ready to kick off performance marketing for your eCommerce business?
Performance Marketing Glossary
 

What is Performance Marketing?

To put it simply, performance marketing is digital advertising that can be clearly measured and evaluated in real-time. This means leveraging channels like Google Ads, Facebook, Instagram, and others to create trackable marketing that allows you to make effective decisions based on concrete data gathered from your actual market.
 
Performance marketing at its core is made of 2 parts: acquisition and optimization. Keep reading and we’ll tell you how to effectively use both.
 

“What gets measured, gets improved.” – Peter Drucker

What is Performance Marketing for eCommerce?

Performance marketing for eCommerce is using strategic digital advertising tactics to drive online sales. It is especially critical to use performance marketing strategies because the customer is already online. This means that the barrier to get them to click over to your site is greatly decreased.
 
You can then leverage the data to determine where and when your customers are hanging out online and how to effectively reach them. For example, if your eCommerce business sells basketballs and you know that your target customer is in their 20’s, lives in the US, is a frequent online shopper, and is part of a basketball league – you could set up Facebook ads to target them specifically. From this, you can determine other attributes shared by customers who purchase and then optimize your ads to get even closer to the people you know will convert to customers.
 
A DNVB (digitally native vertical brand) cannot go without this type of performance marketing because they sell online. Their customers are online, their brand is online, and their marketing should be as well. Just look at the most popular sites in the US based on a study done by Statista. The clear winners are Google and Facebook. If the majority of people in the US are on these sites, chances are your customers are too.
 

Most popular websites in the US as of Feb 2016

© Statista 2019

 
What makes performance marketing different than other types of marketing?
The ability to pay per action and only for results is what sets performance marketing apart from other more traditional advertising channels. You can take out an ad in a newspaper and assume that you will reach everyone in their audience, but you will never know for certain. Some companies have attempted to make up for the lack of measurement tools by including a unique coupon code in their ads. You may get close to knowing how many coupon codes were used, but you will never get the same finite data that you would from the calculated approach of performance marketing.
 
Knowing exactly where your marketing dollars are going and what ROAS (return on ad spend) they are driving is expected by most advertisers and it should be by you as well.
 
Our tried and true approach
Below you’ll learn the exact steps we take when we start mapping out a performance marketing strategy. Follow the steps as closely as you can and you will be able to create your very own effective performance marketing plan.
 

Step 1: Making Sure Your Site Is Ready

You can drive all the traffic in the world to your site, but if you don’t have a clear buy button how do you expect to make any sales? Before allocating your budget to the performance marketing tactics we’re about to share; spend some time cleaning up your site.
 
Is your checkout easy to navigate? Is every call to action clear and accessible? Also, consider what will happen post-purchase. Do you have an email drip campaign set up to follow up with email subscribers, cart-abandoners, or buyers?
 
Ensuring your site is prepared to handle all the conversions send to it is the first step in setting yourself up for performance marketing success.
 

Step 2: Set Real Goals and Stick To Them

Performance marketing for eCommerce is extremely methodical. The first step is to create a plan and to set clear goals. The most obvious goal is sales, but other types of goals include email sign-ups, LTV (life-time value), avg. session duration, clicks, or app downloads.
 
Often people will start their marketing strategy by creating Instagram posts or sponsoring email newsletters. Try not to be distracted by these types of things. While they can definitely be helpful, they are not performance marketing tactics that will drive measurable growth quickly.
 

Step 3: Define Your Target Customer 

Who is most likely to complete the action you set out in your goals above? This doesn’t have to be just one person, define different target personas for people who you believe will convert. Staying with our basketball example, personas may include parents who have kids that play basketball, basketball enthusiasts, and even coaches or schools who represent basketball programs.
 
The goal here is to set defined personas. It would be ideal to use your current customer base to create these personas but the more information you have from the start the better. If you don’t, conduct research and do the best you can. The best part about performance marketing is that you can continuously optimize.
 

Step 4: Define Your Value Propositions

Why should someone buy basketballs from you specifically? How are your basketballs going to improve their lives? It’s really important to get this message across to customers. Don’t just tell your customers that your product is the best, let them know how it is going to solve a problem and improve their lives in some way.
 
A basketball is great, but a basketball that inspires your teenage son to hang out with his dad on a Friday night is better. List some of these defined value props and save them. You can use them as inspiration for your advertisements later.
 

Step 5: Find The Right Channels For Your Target Customer

Look back at the customer personas you created earlier. Do you have a persona that spends their time on Snapchat? Are you trying to reach a professional crowd who scrolls through LinkedIn? The most important part of performance marketing is meeting your audience where they already are! Think about this and research what kind of people are hanging out on each channel, then you can choose the ones that align with your ideal audience.
 
To determine what channels you want to start with, think about your product holistically. Assess your goals and pair personas with channels that make sense. Most people use Google and a lot of people are also on both Facebook and Instagram. These are some of the better channels to start with – not only are they the most popular, but they are able to drive conversions at the lowest CPC (cost per click) when compared to other channels.
 
Keep your goals and target audience in mind when choosing the right channels. Are you trying to drive sales but your eCommerce business is fairly new? Facebook and Instagram are designed to encourage discovery which means that these channels might be a good fit. Google, on the other hand, might be better for people searching for something specific. If your customers don’t know you exist yet and you sell a product that is widely available, this could be a tougher channel for you. However, if you sell a product that people search for, and your brand is new – you might find success with Google.
 
Each channel has its own positives and negatives, and you will need to determine which ones are right for your business. Some of the most popular performance marketing channels are Google Ads, Google Shopping, Facebook, Instagram, YouTube, Pinterest, LinkedIn, Snapchat, Reddit, and Twitter.
 
Here is a list of other channels that may suit your business:
 

ChannelWho should consider testing this channelGoogle Search AdsMost businesses, eCommerce DTC brandsGoogle Shopping AdsMost eCommerce companies selling a physical productInstagram AdsMost eCommerce companiesFacebook AdsMost eCommerce companiesReferralsAll eCommerce companies Ad Networks like Taboola or OutbrainMost eCommerce companies Pinterest AdseCommerce companies targeting women aged 20-45Snapchat AdseCommerce companies targeting people under the age of 30YouTube AdseCommerce companies selling physical products that are highly visual or would benefit from tutorials. Examples of this would be beauty, home goods or even building suppliesBing AdsCompanies targeting a slightly older and wealthier crowd who are frequently womenLinkedIn AdsB2B companies, recruiters, SaaS companies with big budgets. LinkedIn tends to be one of the most expensive channels on a CAC basisTwitter AdsUnless you have a specific reason for testing twitter, most eCommerce businesses should avoid testing itReddit AdsThis channel is designed for and attracts an extremely anti-ad crowd, so while you may read otherwise elsewhere we don’t recommend testing Reddit ads unless you have a very specific reason.Affiliate ProgramsMost eCommerce businessesSearch Engine Optimization (SEO)All eCommerce businesses

Step 6: Find The Right Channels For Your Budget

Not every customer is on every platform, and not every company has the required budget to excel on every channel. Determining the right channels for your business and allocating your budget effectively will be essential. 
Start with your average customer acquisition cost or CAC. Once you determine how much it costs before a customer pays you, you have a better understanding of your budget. If you don’t know how to calculate this, check it out in our glossary. Not all channels cost the same and you will want to start with the lowest hanging fruit (lowest costing channel with the highest rate of conversions).
 

Step 7: Write Ad Copy That Converts 

You don’t need to be Shakespeare to write ad copy that converts to sales. Take a look at this ad copy created by Zendesk:

They have a defined value prop and easy call to action. A customer’s mindset once reading ad copy such as this may be: “Do I want my customers to be more engaged, more satisfied, and more likely to buy what I’m selling? Yes! Does this mean I should try Zendesk chat? Maybe!”
 
Zendesk is also leveraging neuro-marketing through the arrangement of their colors and fonts. If you’re interested in learning more about this, watch our video Neuro-Marketing: Hacking Into Consumers Minds.
 
The most important thing to keep in mind when writing ad copy is defining how your customers will benefit. Don’t go on bragging about every single product feature. Potential customers want to know why they should care. As an example, it’s great that your new clothing line has a jacket with 10 pockets, but why should consumers care? In your ad copy, translate how this feature will create value for your audience. Write concise copy that provides the ultimate solution for customers.
 
An exercise that can help is to write all of the potential problems a customer might have if they shopped at a competitor and what effects this would cause. Try to write out as many as you can.
 
For example, if someone was shopping at a competing basketball eCommerce site, our list would look like this:

ProblemEffectSolutionIf shopping at competitor X, the basketball quality is poor.Basketball won’t last as long, causing them to replace it often and costing them more money. Our basketballs are designed to last up to 5 years. Less money spent, more baskets made.If shopping at competitor X, ship times are very long.Basketball won’t make it in time to play this weekend causing them to miss out on quality family time.Overnight shipping available so that when your kid finally has time for you, you won’t miss your chance to show him what’s up.

Step 8: Optimize and Improve 

Your campaigns are launched, congrats! Now is when you take a good look at the data. Are the results meeting the goals and expectations you set at the beginning? Probably not. It is very unlikely that every part of your strategy will be successful. This is when performance marketing kicks into full gear.Through performance marketing tactics you can optimize and start to improve your results.
 
Determine which channels are performing the best, the worst, and understand why. Are doing things on certain channels that you could leverage in others? Take a look at your budget. Are you spending your budget appropriately? In some cases, you have done everything to improve and optimize a specific ad or campaign but it still fails to do well. In this case, leverage what works and continue to push channels that are effective. Shut down what doesn’t work, but make sure to learn from those failures so you can bring these learnings forward for any other strategy you may create in the future.

Another optimization strategy that often gets overlooked, is managing the days and times in which your ads are being served, or your ad schedule. In both Facebook and Google Ads, you can review what time and day your ads are converting the most. If you’re running your ads 24/7, you may be wasting your budget on clicks that have lower intent. Take a look at the times and days that work best, and then optimize to ensure your ads will show when you need them to.

As mentioned earlier, performance marketing in 2021 is all about measuring, learning, and optimizing.

 

Ready to kick off performance marketing for your eCommerce business? 

You’ve made it to the end of this guide and now you’re ready to implement performance marketing tactics for your eCommerce business! I’m sure you realize the importance of performance marketing and how vital it is for your business. Old traditional marketing tactics simply won’t get you the results you want in 2021.
 
However, we understand that getting traction and implementing a performance marketing strategy is not easy. Perhaps your best course of action in the beginning is partnering with a great agency that can deliver immediate results for you. So if you are a small to medium-sized business generating at least $3M in annual revenue, consider reaching out to our team for a possible partnership.

 

Performance Marketing Glossary

The following are the top acronyms, definitions, and formulas you will need to know to run a successful performance marketing campaign for your eCommerce business.
 
CAC (customer acquisition cost) – This is the overall cost for you to get a new customer. This can be calculated by dividing the total amount spent on acquiring customers by the number of customers you acquired with that spend.
Example: If you spent $5000 acquiring new customers and from that you got 500 new customers, your CAC would be $10.

Channel – A specific platform you can reach customers. 

Conversion – When a customer takes the desired action. A conversion can be a sale, email sign up, button click, etc.

CPC (cost-per-click) – The amount you pay for a click on your ad.

CTA (call to action) – A button or link that tells your customer where to take action on your site.

Customer Persona – A hypothesis of your customer; where they consume content, who they are, and ultimately how they are most likely to take action with your service or product.

eCommerce – electronic + commerce; refers to transactions conducted via the internet.

DNVB (digitally native vertical brand) – A brand born online, which sells and ships its own product.

Drip Campaign – A flow of emails set to deliver to a subscriber after they take a specific action on the site. For eCommerce, this may be after email sign-up, abandoned cart, or purchase.

DTC (direct to consumer) – A direct to consumer company manufactures and sells its own product without the need for a middleman. This is also known as a vertical retailer.

Impression – When your ad has the potential to be seen in front of a user. This is the least expensive action as it often doesn’t lead to a conversion but is often used to promote brand awareness.

LTV (lifetime value) – Can be the estimated profit, revenue, or value a business will achieve throughout the entire relationship with a customer.

Performance Marketing – Any type of marketing that has clear and measurable data such as sales, email sign-ups, pdf downloads, etc.

PPC (pay-per-click) – This is an ad model where you pay only when your ad is clicked on.

ROAS (return on ad spend) – Your return on investment, so to speak.
Example: If you spend $1000 on an ad and it converts to $6000 in sales – you have a 6x ROAS! ($6000/$1000 x 100= 600%) 

Value Propositions – The value that is promised as a result of taking an action.

Content Marketing Strategy: An Expert’s Guide to Content Success

Alek Prus

Content is the backbone of any company. Your website (and the copy on it), blog posts, emails, social media, and pretty much anything that communicates an idea or message to...

Content is the backbone of any company. Your website (and the copy on it), blog posts, emails, social media, and pretty much anything that communicates an idea or message to the outside world is a form of content. When marketers think about content marketing they often only think of a blog, but the most successful companies often leverage content in many different formats, with different goals for different stages of the Buyer’s Journey. Content is a huge investment of time and energy, but when done right the compounding effects of a successful content marketing strategy can pay off in the form of cheap future growth.

Skip to the TLDR and Content Marketing Strategy Guide

The State of Content Marketing 

The internet today is almost inconceivably large and ever-expanding. It’s estimated that there are approximately 600 million blogs currently running, with more than 1.7 billion websites in existence. The explosion of content marketing as a growth strategy began in the late 2000s and has only accelerated since then, making it harder every year to actually break through and drive organic traffic. 

Despite all this growth, there seems to be more noise and lower-quality content than ever before. In every industry, we’ve seen an influx of spending and a massive increase in content creation, but often a lack of a cohesive content marketing strategy to follow suit. Many companies think about content as just keywords and SEO but people and increasingly search engines know the difference between fluff content and real valuable content. 

The Internet as we know it has been around for about 20 years now, and it’s massive. But that doesn’t mean you can’t find a niche or approach to content that sets you apart from your competition. With this guide, we’ll help you develop a strategy to do just that. 

To get the most out of this guide, we recommend reading through it once and then going back through it a second time to really sit down and execute each step. It’s perfectly fine to use materials you’ve created in the past as a starting point, but don’t let that tie you to your current approach or limit your thinking.

If you want to create a great content strategy that actually cuts through the noise in 2021, you need to think outside the box. In the content game, it can be easy to get caught up in a particular routine or strategy and produce so much “content” that it becomes just a task with no purpose.

Creating content that really stands out in such a crowded landscape is no small feat and, at least for now, requires a lot of effort and time. For now, we humans are still ahead because we’re able to connect disparate ideas together in ways that even the most sophisticated AI can’t imagine. That said, GPT3 is just around the corner, and with the right priming and guidance, AI-powered text generators will enable a company or individual to create a full blog following a strategy like the one outlined in this guide in months instead of years.

We’re excited to see how GPT3 and other AI-enabled products will start to reduce the effort involved in content creation in the next few years.

Content is hard.

In many categories, oversaturation makes it difficult to ever break through to the first page of Google, let alone to really stand out and make an impression. Regardless if you’re starting from scratch or working to expand content at a semi-established company, the continual process of producing content takes time, energy, and a lot of effort if you want to do it right. 

Content marketing is a marathon, not a sprint.

We’d be remiss to talk about the difficulties of content without also mentioning SEO, a crucial element in the content puzzle. We only briefly dive into SEO in this guide because it’s already long enough, but we highly recommend this guide as a deep dive and refresher for anyone unsure about the intricacies of search engine optimization. Content marketing strategy is inextricably linked to SEO and one without the other is a recipe for failure.

Given the incredibly competitive organic search landscape for certain industries, traditional content marketing based solely around a blog is notfor every business. Luckily, there are many approaches to content you can take and it really depends on the target audiences and the goals a business is trying to achieve.

When done right, Content Marketing is a much cheaper way to attract new customers, especially if your business is lucky enough to be solving a new problem or working in a new niche or category. 

Content marketing is expensive and can also require a lot of patience. Compounding is a powerful and often overlooked force, but it’s the name of the game when it comes to content, as well as investing, learning, and many of the most important aspects of a successful life.

Content can be a significant investment that can take time to take off and show results, and this is where many B2B companies run into trouble. Paid channels can be easily turned on and off, for whatever reason. Content, on the other hand, takes months, often years, to really build solid momentum. If you’re going to spend that much time working on content, you better have a solid strategy.

Inbound isn’t all it’s hyped up to be

Contrary to what the content marketing “experts” at Hubspot would have you believe, inbound traffic is not always better. When content is created with the sole purpose of ranking in search, we often end up with fluffy, non-meaningful content.

As marketers, we often live in a dichotomy between certain metrics and KPIs like views or likes that don’t necessarily correlate to success at a larger scale. Just because your website is getting more organic traffic doesn’t necessarily mean your business is growing if your content isn’t serving its intended purpose. We’ll get into creating actionable goals and metrics later, but the main takeaway is simple: focus on quality over quantity.

Two very important things to keep in mind: just because content lives and is consumed on the web doesn’t mean it’s SEO. Second, more traffic is not always quality traffic. 

Content and SEO should definitely overlap, but great marketers know that they are ultimately designed to achieve different goals. The two should go hand in hand and work together to drive your overall marketing strategy. Without quality content, you won’t be able to take full advantage of SEO, as relevant and useful content will motivate your visitors to stay on your site longer which will positively impact your search rankings.

The New Paradigm in Content

In the early days of the internet and into the 2000s, search engines were far less sophisticated than they are today, and SEO strategies were able to game the algorithm to create content that would rank regardless of its actual value. 

Google’s goal is to get customers to click on ads to find what they are looking for with the least amount of effort. Today, it is estimated that less than X percent of searchers ever view below the 5th organic result. In order to better achieve this goal, over the past decade, Google has introduced a flood of new features like featured snippets and widgets along with ads that crowd out search results and push organic content deeper down the page. At the same time, Google has begun to give greater weight to engagement factors like bounce rate and time spent on-page, which give a better indication of “value” to the reader.

Old [SEO-Stuffed Content]

• Utilitarian: Looks and reads like a Wikipedia page or a mere how-to guide, no lasting expression of the brand

• Non-expert: Can often be written by someone with zero relevant experience

• No value add: Consolidates existing content without adding new data

• Boring: Often very forgettable content with questionable impact on your business. Boring to write and boring to read

New Approach

• Contrarian: Strong opinions that inspire discussion, social sharing, and backlinks

• Expert: Demonstrates deep industry knowledge and experience

• Value-added: Adds new data, opinions, and analysis to the discourse

• Differentiated: Not just another boring SEO post

The old approach can still be used to rank for a lot of keywords, but that doesn’t always correlate with sales. It’s not enough to just get people to your website, you need to build trust. You need to show expertise and build credibility by bringing new ideas to the table. It’s a large and tedious task to get someone to part with their money, and SEO content is bad at driving sales because it doesn’t give a potential customer any reason to trust you. 

Compare that to the new method: doing the opposite of the old, SEO-crammed utilitarian content. 

If you want to write content that really gets a reader’s attention you need to have an opinion, provide truly thought-provoking ideas, or material that’s fortified with deep insight and expertise. Articles tend to consolidate information available elsewhere on the internet rather than taking a stand of their own, which may save readers a little effort but is unlikely to persuade them to buy anything.

“Information alone is rarely valuable. It’s the expert interpretation of that information that matters.”

Content that focuses on quality and big ideas before SEO can have a much bigger impact on the business itself because it builds that trust. This is the type of content that a potential customer will turn to during a sales call. For a brand just starting out, one or two pieces of content written by a CEO/founder will often do much more than 5-10 SEO-focused articles, assuming you have a funnel that is at least somewhat optimized and some alternative channels to reach customers. It’s never too early to start building an email list so you can take charge of communicating with your customers, and an opinionated expert article that stands out and adds value to the conversation is the way to do it.

High-quality content that fleshes out an argument and takes a stance may not always show up at the top of Google, but it’s far more likely to generate backlinks and organic shares on social media or across the web. These organic shares and subsequent readers will find value in the quality of the ideas, and this expert aura will then be bestowed upon the company itself.

Chaos Needs a Plan

BY BRIAN PORTER

One year into the COVID-19 pandemic, there have been positives and negatives, but managers still need to plan for continued uncertainty.

So, here we are, about one year after a “limited” global shutdown caused governments around the world to close borders, companies to consider their risk profiles, and the Tokyo 2020 games to be shifted to the Tokyo 2021 games. At the time of this writing, the games are still planned for this coming summer.

Let’s consider some of the major changes that have come about in everyday life because of COVID-19 responses:

• Masks required in many or most public places

• Physical distancing recommendations outside the home

• Limited number of people at gatherings

• Videoconferences rather than “in-person” now the norm

• Reduced travel for business and personal purposes

• Less time with extended families

• Delayed weddings, funerals, and other special events

• Soaring and then dropping unemployment, which remains above historic lows

• Significant decline in math and reading skills for children • Mandated curfews in some cities

• Significantly increased domestic violence numbers

• Increase in suicidal thoughts, especially in younger generations

It’s not all bad, though. We have also seen several beneficial aspects to the 2020 isolation period:

• Less business travel, which is good for the individual and families but not for airlines

• Lower fuel prices for those who do have to travel

• Increased focus on health and exercise for some

• Increase in baking, which is good for those who like eating!

When the pandemic restrictions first hit the workplace about a year ago, a general feeling of helplessness seemed to permeate just about every person. The chaos of disrupted business required a varied approach to doing jobs, including WFH (work from home), alternating schedules, and modification of normal processes. So many individuals, employees, and managers took the initial two-week shutdown as a vacation rather than a way to consider risk and improve ways of getting things done.

However, some of the best managers and executives saw an opportunity to modify and thrive, rather than sit back and wait. The rest were confused and didn’t have a clue how to move forward. You may have determined who you were in spring 2020. More important, it’s up to you to decide who you will be during spring 2021 and moving forward. How will you address the unknown in the future?

PROJECT MANAGEMENT TOOLS CAN HELP
“Plans are worthless, but planning is everything.”
—General Dwight D. Eisenhower

Organizations, whether for-profit, nonprofit, or government, just need to plan. There may be those who are on one side or the other of the “predictive” or “agile” argument. Neither approach is correct by itself, especially in a time of chaos. It takes a balance of short-term responses and long-term adjustments, which will require both agile and predictive methods to assess and respond with better results.

Just to be clear, here’s an analogy for understanding how the two methods would be used when taking a trip from New York to California:

• If a 100% predictive method is used, the project manager will focus on details from the very start to the very finish using the IPEMC (initiating, planning, executing, monitoring and controlling, and closing) process groups. They will outline each turn and every stop and calculate estimated fuel efficiency for the entire journey.

• If a 100% agile method is used, the team will only consider the direction they are heading and estimate how far they might travel in a day. Each morning, the team will consider what the plan for the day should be. To this team, an agile daily stand-up meeting includes yesterday’s accomplishments, goals for today, and the challenges blocking these goals.

Both methods require planning, but one assumes a known end and that all details can be calculated. The other addresses the short term with more flexibility.

Let’s use both methods and address this the AMA way!

• Analyze the situation

• Make a plan

• Adapt as needed

ANALYZE THE SITUATION—DON’T FLINCH!

All too often, managers flinch at sudden changes in the market, employee resignations or, in 2020, a pandemic. Those that “flinched” canceled life for two weeks and then came back without a plan. Instead, when faced with a business or personal situation that causes great change, you should pause and consider the situation. Observe all ways the organization, employees, and you as an individual will be affected.

I recall a disaster movie where people saw a meteor coming at them and started to panic, shouting and running in every direction. One “leader” got on a megaphone and yelled “Stop,” causing everyone to look at him. He shouted, “Look where it’s heading!” After a moment they all noted the direction and ran to the side, avoiding running into the peril. They stopped for a moment and decided how to respond.

When chaos or disaster strikes business, you may need to tell yourself “Stop” for a moment and figure out where things are heading, instead of responding by panicking. Consider all the elements that need to be addressed:

• Policy. Consider newly instituted local, state, and federal restrictions. How might some of these restrictions threaten business, but also open opportunities?

• Product. There will be changes in demand for products or services provided by the organization. This could mean a significant drop or a significant increase. Perhaps a portion of the organization will see a drop and the other portion will see a gain.

• Process. There are external forces that can invalidate your current processes. Perhaps you have performed business only in a face-to-face modality for years, but now you have changed to digital or physical delivery. What other factors might force change to your existing processes?

• People. Your employees will have fears and concerns. Unemployment is a big concern, but for others during the 2020 pandemic, the fear was not of losing their job but determining how to do the job effectively with children studying at home.

Sometimes, a proposed change itself is enough to cause panic and fear. Judging the level of anxiety will help a manager determine urgency for a change versus importance of the change

MAKE A PLAN, OR START PLANNING?

After completing a thorough analysis of the situation, the manager can now use some project management tools to focus on planning. I’ve noted that project managers are a lot like NFL football coaches. We spend the majority of our week in planning and just a small portion performing the execution component. Here are some specific ways to help staff and the organization through times of chaos, starting with the people:

For Yourself

• Get your bearings. Just as airlines instruct passengers to put the oxygen mask on themselves first, before helping others, you need to make sure you are ready to face the issue head-on. This means you need to clarify the scope of your efforts. Whether they are projects or process (operations), you need to ensure that you are clear on the scope and vision of your efforts.

• Sleep right. Without sleep, you will not be focused enough to make good decisions.

• Eat right. Eating or drinking excessively will only hamper your health.

• Exercise right. Make sure to take a few minutes every morning to get the circulation flowing and metabolism started. Even a few sit-ups and some jogging in place can really help a person’s mood and metabolic rate.

• Add tools. Consider what you need to monitor the business and marketplace within logical constraints, not emotional triggers. Resource management is one of the 10 knowledge areas in project management, and it gets less attention than scope, schedule, or cost (budget) management. Don’t ignore it! Determine the resources required to be successful, such as a computer, headphones, technology, and so on.

For Employees

• Team meetings. Regular team meetings, including agile daily stand-ups, will help keep people on track and connected. During any “chaos” event, a feeling of helplessness and loneliness is the enemy. Remove the fears and help the team.

• One-on-one check-in. Make sure to have individual conversations, not just group discussions. Certain employees may feel left out because they are too shy to speak up in the group setting. Pay attention to their needs as well.

• Team “fun” exercises. The intent is to build camaraderie beyond the basic interactions while working. Find a way to team build. A few ideas include Dave and Buster events and virtual happy hours (everybody has their own snacks and drinks but shares time chatting with one another).

• Technology needs. During any upset in business, the first thing some managers do is to cut back on resources to avoid unnecessary costs. However, updating technology and looking forward may provide efficiencies and confidence needed to make it through the disaster. More, not less!

For the Organization

Once you have a plan for yourself and employees, now think of the business:

• Policy. What changes to policy will be required? The pandemic changed a lot of company practices requiring individuals to work at the office or onsite. Overnight, something that was prohibited became not only the norm but a requirement. During the next “chaos” event, what policies might be revisited? Even if it is a weather-related or a financial, competitive, health, or other unknown event that causes the change, evaluate and be willing to drop or modify policies for the new reality.

• Product. Perhaps competition is adamant and aggressive about new products, and they disrupt what has been a comfortable position for your organization. Cities replaced rural and agricultural living in the 1870s. Digital media displaced newspapers in the 1990s. Online banking has displaced much of “personal banking” over the past 30 years. Electric cars have and will continue to displace fossil-fuel vehicles in the years to come.

• Process. Consider how many small and large food chains had to change from dine-in to pick-up or delivery modalities during 2020 within a few weeks’ time. Manufacturing lines had to space employees out rather than “maximize” space usage. For some, shortcuts were taken, but that’s not recommended. Instead, re-envision a new process that meets the chaos situation.

ADAPT AS NEEDED

Recognize that every plan needs to be flexible. Whether short-term or long-term planning has occurred, we need to be open to further unexpected surprises. This is where the battle between agile and predictive project management tools can instead be a helpful selection process.

A Guide to the Project Management Body of Knowledge, Seventh Edition, or PMBOK© 7, is scheduled to be released in late March 2021 and is intended to focus on outcomes. Project managers should use the correct tools from any methodology that is appropriate for their project. This means that some managers will need a lot of adaptive or agile tools upfront, but also should think long-term predictive tools for when things settle.

Think of it this way: When you have an emergency, you use an ambulance. If there is no emergency, you use your regular vehicle.

In the short term after “chaos” hits, consider using agile tools because it means that you will get through the day or week providing some form of value. Use 15-minute daily stand-up meetings to get feedback on what has been completed, what will be completed, and roadblocks for each team member. Approach the plan for only a week or two to make sure that every effort is worth the time. If something is not going to bring value in the next couple of weeks, then delay or eliminate that activity.

Once things begin to settle down, you can make the long- term plans such as formal six-month, one-year, two- year, and five-year strategies for operational and project modifications. Use predictive tools such as formal calendars and resource scheduling tools. Proper sequencing will keep you from wasting precious resources during tough times.

Whether the disaster you face is temporary or permanent does not matter. If it is a condition related to financial, resource, scheduling, communication, or scope elements, it does not matter. You can tailor your response to the situation at hand by using AMA: Analyze, Make a Plan, Adapt!

ABOUT THE AUTHOR:

Brian Porter is an adjunct instructor at American Management Association. Porter has handled all aspects of product development and project management, including ideation, development, testing, documentation, NRTL listing, field testing, patent preparation, market rollouts, training, litigation support, and every other aspect of bringing a product to market.

How Post-Pandemic Leaders Can Drive Performance and Innovation

By: Inga Carboni and Rob Cross

Increasingly, organizations rely on networks of agile teams to get work done—a trend that will only intensify as we move into a hybrid, post-COVID world.

This transition will be difficult for leaders in part because they will need to manage collaboration without some of the structures they have grown used to—face-to-face interaction and co-location promoting serendipity, to name a few.

But other trends have also been emerging that require a new look at teams in the post-pandemic world. For example, employees are on many more teams—twice as many as they were five years ago—and teams are larger and more geographically dispersed than in the past. Research reported in Creative Conspiracy indicated that the average team size in U.S. companies in 2013 was 15. And while Katherine Klein of Wharton reported back in 2006 that the ideal team size is five people (and accepted wisdom these days is five to nine people), it is not unusual for individuals at present to find themselves on, or even leading, teams of 20 or more, many of whose members may be in different time zones and accessible mainly through electronic communication.

As people are put into more and bigger teams much more rapidly than ever before, we need new ways of driving results. Increasingly, researchers and practitioners are reconceptualizing teams as networks that need to form rapidly to produce needed results. This research is showing that the structure of internal relationships (social capital) contributes as much to team success as does the composition of the team (human capital).

To better understand the practices that yield performance in today’s teams, we conducted 90-minute interviews with more than 100 high-performing leaders in 20 different organizations. Each individual was identified as having successfully led multiple teams over at least 10 years. The organizations included a wide range of industries (for example, financial services, high tech, consulting, manufacturing, food services, hospitality) and ranged in size from several thousand to hundreds of thousands of employees. Here, we summarize what these leaders did to enable performance through collaboration.

CULTIVATING INTERNAL TEAM COLLABORATION

We found that high-performing team leaders optimize network structures. In contrast to advice based on old models of team development, the leaders in our study did not focus excessively on team-building activities, nor did they limit their efforts to building strong one-on-one relationships with team members. Instead, they assessed and shaped the relationships among team members, purposefully redesigning the network structure to optimize it for team performance. More specifically, they manage the center, integrate the edge, minimize silos, and generate agility.

Manage the center. To manage the center, the leaders in our study took steps to prevent the people who are most centrally connected in the network from becoming overloaded with collaborative demands. Collaborative work (that is, time spent on phone calls, in virtual or face-to-face meetings, and on email or other collaborative technologies) is rarely evenly distributed. Very often, a small set of people— leaders, experts, long-tenured colleagues, or colleagues with whom others enjoy interacting—absorb a much higher volume of collaborative work than do others. Typically, 3% to 5% of the people account for 20% to 35% of the value-added relationships—collaborations that generate sales, efficiency gains, key innovations, or other forms of value.

This means that relatively few employees have a substantial and quantifiable impact on performance, yet, often, they are not managed any differently than those who do not make comparable contributions. All overwhelmed employees suffer due to the volume and diversity of demands; their work quality often falls off, they are at much greater risk for burnout, and they are far more likely to leave the organization.

The leaders in our study engage in three practices and a number of actions to manage the center of their teams. These leaders ensure that individuals, in general, or those in certain roles within the group do not become so overloaded with collaborative demands that they are unable to support their colleagues in a timely fashion; they identify and reward/ acknowledge employees who engage in collaborative behaviors that make their colleagues more effective; and they seek out influential team members to promote alignment and team engagement.

Simple network analysis techniques can quickly reveal people at risk for collaborative overload. Take 10 minutes to draw the network map of your team, and who turns to whom for information to get work done. Have two or three teammates review the diagram and make additions as needed. Use this information to distribute collaborative demand more equitably.

You should publicly acknowledge and celebrate collaborative behaviors to promote engagement and signal the importance of collaboration. For example, set a regular reminder to spend 30 minutes once a week to thank a small number of people for their efforts in the way that means the most to each person, such as a handwritten note, an email with cc’ing of partners, a private conversation, or recognition of that individual’s contribution during a team meeting. And you should invest time to locate and proactively engage negative opinion leaders. Crafting mutual wins early can pay off substantially over time.

Integrate the edge. Integrating the edges of a team’s network structure means pulling in people who are not fully included in the team’s interactions. Frequently this means newcomers and remote workers. But surprisingly, we also find that 20% to 30% of the employees considered as top talent—those on top talent lists or in the top 20% performance category— migrate to the fringe of the network. Often, these are people who have learned how to meet their revenue or other performance management objectives without making much of a contribution to their colleagues’ efforts.

To integrate the edges of their teams, the leaders in our study rapidly integrate newcomers, proactively engage remote and virtual group members to ensure integration, create short forums for serendipitous interactions, and ensure that subject-matter experts and high performers are available to help their colleagues in a timely manner.

To integrate newcomers, assign them a “buddy” who is respected and well connected in the network. One way to engage remote and virtual team members is by instituting events such as “watercooler Wednesdays” in which all team members can join an instant message group, such as WhatsApp, for informal conversations about binge-worthy shows or holiday shopping. And to increase collaborative accessibility to high performers, have them serve as technical consultants.

Minimize silos. A big part of a leader’s work is minimizing silos. Collaborative breakdowns diminish performance and innovation and have various causes. In one case, it might be poor communication technology. In another, it might be that none of the groups that should be working together knows what expertise exists in the other groups or understands how that expertise can support their work. Misaligned incentive schemes also can foster parochial behaviors, as can leaders who do not like each other. Companies often try to minimize silos by launching cultural change programs, formal reorganizations, or new collaborative technologies, but these broad solutions often do not address the issues that impede collaboration at crucial network junctures.

To minimize silos, the leaders in our study facilitated connectivity at specific silos across functional lines, physical distance, hierarchical levels, demographics, or expertise domains where collaboration is critical to performance. They also ensured that cliques or subgroups do not form within the team in ways that diminish alignment, performance, or engagement.

We suggest that leaders locate efficiency losses for targeted action by setting up weekly check-in meetings with people whose role requires them to work across boundaries to help them understand when and how to include others earlier in the process. And to prevent the formation of an “inner circle” subgroup, purposefully invite quieter voices into the conversation and force reluctant but capable members to take on added responsibilities.

Generate agility. Generating agility encourages team members to efficiently and adaptively work together in ways that respond to environmental demands. In a recent Korn Ferry survey that queried more than 750 CEOs worldwide about how their companies could succeed during the pandemic, one in four stated that “breaking down hierarchies and building agility” was paramount. Agility requires team members to collaborate rapidly and to easily share their sometimes differing perspectives on how best to respond to an environmental demand.

To boost their teams’ agility, the leaders in our study assess and streamline collaborative activities within the team to promote efficiency and engagement and cultivate diversity in network interactions to promote team agility and innovation. We suggest that you employ formal or informal approaches to analyzing collaborative time demands, such as plotting a grid of work streams and standing meetings that are employed to coordinate work. Then, reconsider the purpose, agenda, and required participation in each meeting. And you should leverage moments of connection—however brief— with people who represent different subcultures. This can be done by chatting for a minute or two with someone at the company café or asking someone about his or her weekend when a meeting ends early.

Team performance in a post-COVID world will require more intentional cultivation of networks. Rather than leading with available tools—video calls and instant messaging—more successful leaders will necessarily need to reflect on the points in the network they are trying to influence. Taking more targeted actions to promote desired collaboration will both yield performance and keep leaders and employees from burning out.

ABOUT THE AUTHORS

Rob Cross is the Edward A. Madden Professor of Global Leadership at Babson College and a co-founder and research director of the Connected Commons. He is the author of 85 articles and five books, including the upcoming book Beyond Collaborative Overload with Harvard Business Review Press.

Inga Carboni is on faculty at William and Mary and a research associate with the Connected Commons. She has published extensively in both academic and practical outlets on the topic of networks.

How to Lead Through the Pandemic and the Recovery Phase

By: Tomas Chamorro-Premuzic

Among the wide range of fascinating insights from the 100-year-old science of leadership, perhaps none are as uncomfortable as the notion of a significant gap between the qualities that propel people into leadership roles and those that are actually needed to be an effective leader.

As I highlighted in my last book, Why Do So Many Incompetent Men Become Leaders? (And How to Fix It) (Harvard Business Review, 2019), this gap also explains the pervasive gender imbalance in leadership: When we select leaders on the basis of their confidence, charisma, or power hunger, it should not surprise us that we end up with more male than female leaders. By the same token, these parameters explain why leaders are not typically known for their competence, humility, or integrity, and why narcissistic individuals over-index at the top of any organizational hierarchy or system.

If this was a problem before the pandemic, it is now a disturbing reality, one that accounts for the widespread leadership failures around the globe. Too many leaders are out of depth, exposed, and have nowhere to hide. As I observed in my March 15, 2020 article in Forbes, “Why Are Some Leaders Better at Managing a Crisis?”, while many of the key features of the pandemic are not as “unprecedented” as most people think—so yes, the word has been overused in unprecedented ways—there is surely one unique aspect to this crisis: It is a global leadership experiment like we have never seen before. Leaders around the world are being put through the same test, with unparalleled access to the same standardized KPIs, and the world is watching closely.

Furthermore, since we have never dealt with this virus before, let alone a digital-age pandemic, it has been largely impossible for leaders to rely on their past performance and expertise to mitigate this crisis. Instead, every leader has had to start from scratch, with a blank slate, and work out how best to mitigate the damaging consequences of this devastating virus.

THE POSITIVE CHARACTERISTICS OF CRISIS LEADERSHIP

As organizations (and indeed societies) prepare to face the next phases of this pandemic, there is no question that leadership will remain a key focus area. With that, it is important to reflect on what we have learned so far, not just from this crisis but also from the robust body of research derived from solid decades of organizational psychology and an increasingly interdisciplinary science of leadership.

Crisis leadership is just good leadership. There is a long tradition of research around crisis management, which has identified some of the decisive traits and behaviors to predict how some leaders are much better able to manage crises than others. In my talk at the Global Leadership Network’s event in August 2020, “Six Traits Leaders Typically Lack During Crisis,” I outlined that higher levels of intelligence, curiosity, humility, resilience, empathy, and integrity are all critical to improve leaders’ performance during a crisis. And as it turns out, these traits also elevate leaders’ performance during good times—that is, when there is not a crisis. But in a crisis, leadership matters even more: Leaders’ right and wrong decisions will exacerbate effects on their followers, raising the stakes to a matter of life and death. So while mediocre leaders may go unnoticed in good times, we pay a high price for leadership incompetence when the challenge is big.

The good news, however, is that we don’t need to completely revise our leadership models so they are crisis-proof. In fact, all we need to do is select good leaders. Of course, in a logical world, we wouldn’t have needed a pandemic to realize that people are generally better off when their leaders are smart, curious, humble, resilient, empathetic, and honest—or at least show some of these qualities—but in the real world we did. Our only hope is that the crisis reminds us of the importance of picking leaders based on their competence, rather than on their ability to entertain, seem confident, or successfully acquire power irrespective of their intentions or talent. By the same token, we would be suffering a lot less from this crisis if we had made it a habit to pick leaders with these foundational talent attributes, so here’s to learning this lesson and improving things in the future.

Context still matters. Although crisis leadership is in essence just good leadership, the context still matters. Indeed, according to “When and How Team Leaders Matter,” by J. Richard Hackman and Ruth Wageman (Organizational Behavior, 2005) over 60% of well-performing teams could attribute their performance to “someone’s personality or behavior—and that someone frequently was the team leader.”

And as Barbara Kellerman and I noted in our February 16, 2021 article in Fast Company, followers matter. This has been clear during the pandemic, as even in the case of high-performing leaders—such as Jacinda Ardern of New Zealand or Tsai Ing-wen of Taiwan—there were some favorable conditions, such as location, technological infrastructure, healthcare system, and indeed good followers, that enabled them to tackle the pandemic with success. By the same token, one cannot fully blame Donald Trump or Jair Bolsonaro for their country’s poor results, because inequality, size, governance, and the mindset and culture shaping follower behavior independently influenced results. Of course, in the case of the United States we are seeing in real time how much can change when we change the leader, but it is always hard to draw conclusions with an N of 1, and even though Biden’s administration deserves praise for its vaccine rollout, it is also true that the vaccines were produced during his predecessor’s mandate.

Organizations can change. A silver lining from this crisis is that incompetent leaders have been exposed (and in some instances also eliminated), which of course came at a high price. One hope is that organizations learn the lesson and start to take leadership selection more seriously. This will require the willingness and ability to become more datadriven in their assessment of leaders. As Jeffrey Pfeffer points out in his book Leadership BS: Fixing Workplaces and Careers One Truth at a Time (Harper Business, 2015), and as I noted in The Talent Delusion: Why Data, Not Intuition, Is the Key to Unlocking Human Potential (Piatkus, 2017), even before the pandemic there was clear evidence for the idea that leadership competence is the exception rather than the norm. Indeed, if leaders were chosen on talent, Gallup would not report that only about 22% of the global workforce is engaged (this, in mostly large or leading organizations).

In a world where leadership and management roles were assigned on the basis of competence, most people would trust their boss and be inspired by them. Instead, the average experience people have with their bosses is rather more discouraging, if not traumatic. And we continue to see reports of toxic leaders who derail and whose dark side keeps harming their teams and organizations.

Destructive leadership was rampant before the pandemic, and science-based tools could do much to mitigate it. It is noteworthy that the emergence of artificial intelligence and analytics could help, because the only way to evaluate leaders is to actually analyze how they behave and link these data to organizational outcomes. Yet there is clearly a human tendency to distrust AI and campaign against it as a biased tool. Meanwhile, human biases are alive and well, and they will continue to advance people’s careers on the basis of privilege, nepotism, political influence, and “culture fit.”

We’ve all heard it many times: Crises are opportunities to change, as well as traumatic periods of transition where the old is not ready to die, and the new is not ready to emerge. Our big hope is that our old and outdated leadership archetypes, and our tendency to select people based on style rather than substance or confidence rather than competence, will die or at least fade away with this crisis. That way, we can look forward to a future where our lives are not put in the hands of those who are in it for themselves, or have no capacity to make things better for us, but rather are smart, kind, and honest leaders. AQ

ABOUT THE AUTHOR

Tomas Chamorro-Premuzic is the chief talent scientist at ManpowerGroup, a professor of business psychology at University College London and at Columbia University, and an associate at Harvard’s Entrepreneurial Finance Lab.

7 Challenges That New Managers Need to Prepare For

By: American Management Association

Many people work hard for a promotion into management. Unfortunately, many of those same people aren’t prepared for how hard they’ll have to work after they’ve achieved that coveted promotion in order to be perceived as a manager by their staff, peers and senior management. Not surprisingly, the transition from individual contributor to manager can be stressful, as numerous studies have found. According to one study by an HR consultancy, nearly six out of ten managers rated the stress level of being promoted to manager as second only to dealing with a divorce.

Having the title of manager doesn’t automatically confer power, privilege or respect. But the title of manager can secure such recognition and launch a rewarding career for those who are prepared for the challenges that accompany their new role. A world leader in professional development for nearly a century, American Management Association (AMA) has identified seven challenges new managers commonly face and offers tips to help overcome them:

1. Managing expectations
Knowing what your team—and senior management—expects of you is every new manager’s first order of business. Working conscientiously to manage and meet those expectations greatly affects a new manager’s success.

2. Establishing credibility 
Amidst all the stress, it’s easy for new managers to feel insecure and question their own ability. As a new manager, it’s important to remember: You got the promotion because you earned it. Find confidence by taking stock of your past leadership experiences and your outstanding skills. To be seen, heard and believed as a manager, bring your expertise to the job every day.

3. Balancing technical and management expertise 
Being a manager requires a new set of skills. As a manager, you are no longer responsible for producing—now, your job is to get things done through and with other people. Your success isn’t just measured by what you do, but by what your staff is able to achieve. Avoid the pitfall of micromanaging your staff’s work, and instead give them the guidance and space to succeed.

4. Finding rewards in different places 
As a new manager, you might at first miss being recognized for your individual contributions and achievements. You may not always feel the same sense of accomplishment you felt as a staff member. For your own job satisfaction, look for other rewards—perhaps in how you’ve helped your staff work through a conflict or improved your team’s ability to work together.

5. Managing time 
As a new manager, you still have to manage your own time efficiently. But now, you rely on your staff’s ability to make efficient use of their time as well. Be aware of how the demands you place on your staff affect your own time management. Work to make it easier for them to meet deadlines and give you the information you need on time.

6. Managing change 
Yes, change can be stressful. Yet, it’s unavoidable and pervasive. As a manager, one of your new roles will be that of a change agent. So, get comfortable with change. Not only will you be called on to implement change—sometimes exciting, sometimes unsettling—but you must be prepared to help your staff accept change and support them through it.

7. Supporting risk-tasking 
Taking risks is the key to achieving breakthroughs. Be an example by taking risks and taking action to get results—and encourage your team to follow. Recognize that allowing your team to make mistakes can often lead to the most creative solutions.

A new manager’s job is stressful. Being aware of and ready to handle common challenges if and when they arise will help ease that stress and smooth the transition. Above all, do not expect too much too soon. As a new manager, give your staff and upper management time to adjust and see you in a new way. Be patient with yourself too.

6 Ways to Strengthen Collaboration at Work

By: American Management Association

Regardless of changes to how and where we work, team members still need to successfully collaborate to get good results and keep a business running. In a recent survey, American Management Association (AMA) asked its members and seminar participants to rank several capabilities critical to thriving in the post-pandemic workplace. Managing and motivating a remote or hybrid team was among the top three priorities, along with improving virtual communication skills and building and maintaining strong relationships. 

Whether team members work side-by-side in the same office or screen-to-screen from different buildings, neighborhoods, or countries, good results depend on strong collaboration. But that doesn’t always “just happen.” Building effective collaboration starts with establishing a firm foundation. Key components include shared goals, deliverables, products, or services; agreed-upon guiding values, principles, or norms; disciplined processes, roles, and responsibilities; and sufficient resources. Still, even with all of the essential building blocks in place, sometimes a team struggles to work well together because some people aren’t natural collaborators.

How can managers get buy-in for collaboration at work? A world leader in professional development for nearly a century, AMA stresses the importance of making a clear business case for collaboration, setting an example by being collaborative, and encouraging reluctant collaborators through coaching, support, and recognition. Here are six steps for motivating tentative collaborators and improving collaboration team wide:

1. Be an ally. Don’t be a naysayer or, worse, an adversary. To foster collaboration, welcome input from all collaborators, regardless of their experience or comfort level. Simple statements, such as “I like your suggestions” or “That sounds like an interesting idea,” often speak volumes, letting team members know that you value their opinions. 

2. Say what you see or sense. If you observe or pick up on something troubling, say something. For instance, you might say, “You seem a little reluctant to share your opinions.” Do this in a way that’s genuine, caring, and without criticism to avoid making the reluctant collaborator feel singled out and even more uncomfortable.

3. Ask and listen. When someone is having trouble collaborating, take the time to find out why. Ask them to share their concerns or feelings, perhaps starting with, “What can you tell me about that issue?” Then, listen to their response. 

4. Reinforce the benefits of collaboration. Talk up collaboration until it becomes a shared value and an everyday best practice. Offer ongoing encouragement, such as, “The team seems to be getting closer to an answer. Let’s keep going.” 

5. Seek out suggestions for improvement. Your team members are the ones working together after all. You might be missing something. “What would make this whole process work better for you?” might be a question to ask everyone on the team—weak and strong collaborators alike. 

6. Offer choices, not demands. Managers should hold team members accountable when they refuse to collaborate. But when dealing with a person who isn’t a natural collaborator, threats and punitive consequences tend to be counterproductive. Instead, try asking, “Could you give me two or three ideas tomorrow morning?” 

With the right approach, anyone can be a valued collaborator. Everyone has good ideas. All it takes is a little time and care to ensure that your team makes the most of them.

5 Steps for Managing Conflict and Improving Teamwork

By: American Management Association

As every manager knows, a cohesive and smooth-functioning team is crucial to the success of any task or project. In today’s global business world and emerging post-COVID workplace, teams are increasingly virtual or hybrid. Yet, whether they collaborate through technology or work together in an actual office, team members are bound to have different opinions, ideas, work styles and perspectives. Those differences often give rise to conflict. Sometimes, conflict can be creative, an energizing force that leads to innovation. However, when conflict is not productive and not addressed, it can derail teamwork, leading to declines in morale and productivity, misunderstandings, and animosity. At its worst, conflict can become toxic.

To get a handle on conflict before it escalates and does harm to their teams, managers must first know what type of conflict they’re dealing with. There are two basic types of conflict: task- (or process) related and relational. Task-related conflict typically occurs in complex projects where work between team members is interdependent and reciprocal, such as when one person’s ability to begin their task depends on another person’s task first being completed. If left unchecked, this common type of conflict can lead to the second, and potentially more damaging, type. For example, clashing views on how best to execute a task might feed into cultural stereotypes and fuel heated arguments between team members.

Learning how to de-escalate conflict is essential to keep a team on track and work proceeding. From American Management Association (AMA), a world leader in professional development for nearly a century, here are five steps for effectively managing task-related conflict:

Step 1: Identification
First, identify the source of the conflict. Ask the opposing team members to explain their side, clearly and calmly. Have each person involved write a simple statement of what the issue is, either on a whiteboard during a meeting or by posting on a shared site.

Step 2: Response
Second, allow each person involved to respond to the issue and the other side’s position. For virtual and hybrid teams, consider using Chat, Word Comments, or the Word Tracking function. With on-site teams, invite opposing team members to engage in a discussion. Set firm boundaries to ensure respectful communication, with zero-tolerance for name-calling or derisive comments.

Step 3: Resolution
Third, analyze all the facts of the situation. Using a systematic decision-making process, work towards a solution that’s acceptable and do-able for all team members.

Step 4: Enactment 
Fourth, put the agreed upon solution into practice and monitor progress. This step is where any necessary adjustments can be made.

Step 5: Evaluation 
Fifth, evaluate how well the solution worked and whether it’s workable on a long-term basis. Note any changes needed to improve the process moving forward.

Effectively managing task-related conflict minimizes the incidence of relational conflict in the workplace—though it can still creep in. Virtual and hybrid teams can be more vulnerable to relational conflict. Relying on technology as the primary or only means of communication can create difficulties in establishing a shared context, building rapport, and navigating cultural differences. Here are a few tips for avoiding relational conflict in the workplace:

Increase awareness of symptoms. Ignoring a team member’s snide aside or casual use of a demeaning label opens the door to a harmful pattern. Simply commenting on less-than-optimal behaviors immediately sends a clear message about what will not be tolerated.

Set ground rules for conduct. For example, if email responses are expected within 24 hours, ensure this is enforced. In addition to reducing conflict, this helps to maintain consistency, workflow and productivity.

Place a priority on building trust. While leaders establish the culture and set an example, building trust is a team-wide effort. Make sure every team member knows that they’re responsible for building trust and, in turn, managing conflict before it escalates.

Conflict in the workplace happens—it’s natural when people with differences work together. But conflict doesn’t have to deter teamwork and impact results. By keeping AMA’s five-step process and expert tips in mind, conflict is highly manageable and easy to monitor and minimize.

4 Steps for Conducting a Painless Performance Appraisal

By: American Management Association

Nearly everyone dreads them. Performance appraisals are challenging—to both managers and their team members. So, why do companies continue to practice this anxiety-inducing formal exercise and repeat it annually, if not biannually or even quarterly? Despite their notorious reputation, performance appraisals serve an important two-fold purpose: to help the manager determine the value and productivity an employee contributes to the organization, and to help employees overcome their weaknesses, develop their strengths, and progress in their career.

No matter what template or process an organization uses, the difficult work of conducting a performance appraisal falls squarely on the shoulders of the manager. After thoroughly assessing a team member’s overall capabilities and specific results, achievements, and shortfalls over the past year or months, as well as their potential for growth and success moving forward, the manager must then sit down and discuss it all with the employee, one-on-one and face-to-face, whether in person or virtually. It’s no wonder both managers and team members resist or procrastinate when it comes to carrying out this company-mandated process.

A world leader in professional development for nearly a century, American Management Association (AMA) is committed to making those difficult performance appraisal discussions easier for managers and not so dreadful for employees. For starters, here’s a four-step process that every manager can apply to any employee review:

1. Let the employee know what to expect. Open by explaining the purpose and process for the performance appraisal discussion. Place a priority on constructive feedback and strategies to support the employee’s development, rather than harsh criticism and warnings.

2. Start with the problem. First, focus on your concerns about the team member’s weaknesses. It might be something as simple as, “Lately, I’ve noticed you’ve been missing deadlines.” Why begin with a problem? Because it’s uncomfortable—so get it over with and move on. Once the worst is out of the way, the employee’s tensions will be relieved. For example, if the person keeps anticipating criticism, they might not even hear it when you praise them.

3. Come up with a solution together. Ask the employee for their take on the problem. Then help them come up with a workable solution. Talk it through together. Share your insights and highlight the development areas the employee should work on—for example, “Working on your time management skills could help things go more smoothly.” Aim to incorporate goals that are SMART: Specific, Measurable, Achievable, Relevant, and Time-Bound.

4. Recognize their strengths. End the discussion by talking about the team member’s strengths. Give specific examples—for example, “You did an excellent job with the marketing proposal last month.” Acknowledging what the person does well is likely to motivate them to want to do better, instead of leaving them feeling demoralized. Wrap up the performance appraisal on a positive note of praise and encouragement.

This four-step process is meant as a framework. Every manager should develop their own style. Try other approaches and decide what works best for you and your team. Practice makes perfect—and with it, performance appraisals really can be painless. And remember: A performance appraisal discussion provides managers with an opportunity to call attention to a team member’s achievements and affirm their future potential.

The effect of talent management practices on employee retention at the Namibia University of Science and Technology: Middle-level administration staff

Jacobina Amushila, Mark H.R. Bussin

Introduction

Orientation

Talent management (TM) is one of the modern functions of human resource management (HRM) and the most inspiring topics in management (Hatum & Preve, 2015). Talent plays an important role as a part of the HRM function in managing all employees within the organisation that leads to high performance (Tetik, 2016, p. 44). The role of HRM has rapidly changed from only concentrating on hiring, employee benefits and payroll to strategic human resources whereby the focus is on sustaining and driving business strategies. This raises questions about the necessity of re-skilling of HRM functions (Sparrow & Makram, 2015, p. 249). This represents a major shift in how business executives view the value of HRM, as they understand the strategic value of TM and the impact that strong talent can have on financial outcomes (Silzer & Dowell, 2010, p. 3). Silzer and Dowell (2010, p. 3) further state that ‘talent is becoming recognised as a core competitive asset in any business organisation and serves as a currency of business’.

Namibia has been facing major challenges in retaining talent in most key sectors of the economy (Deloitte, 2015, p. 4). According to Letchmiah and Thomas (2017), it is still a major concern for many organisations to retain top-performing employees and thus, leadership strength is negatively affected. Talent management (TM) is the process that ensures an organisation has access to the human capital and helps in attracting, developing, engaging, retaining and utilising talent to the mutual benefit of the business and employees (Bussin, 2014, p. 17). However, employee retention can be defined as ‘an organisation’s ability to hold and keep in the possession and to engage the services of high potentials and value contributors in mission-critical and scarce skills positions’ (Bussin, 2014, p. 26):

Organisations used to view talent as an audience, like fish waiting to be caught and not as a community, an ecosystem or fish swimming all over the global talent pool that are harder to catch. (Frost & Turner, 2016)

Research purpose and objectives

Talent management, as such, is well researched in most parts of the world; however, it is limited in Namibian industries, as it is a fairly new approach in many organisations in Namibia. Therefore, although the shortage of talented workforce has attracted vast attention, the literature gives little recommendations on how to deal with it. The researcher is of the opinion that the problem is that organisations are still attached to the old perception of human resources and thus, there is a lack of understanding on the effects of TM on employee retention. Thus, the Namibia University of Science and Technology (NUST) may continue to face challenges in retaining key employees or absenteeism if TM is not implemented. The institution may extend its recruiting to foreign labour markets. Neither the NUST nor the Ministry of Education has commissioned to research and explore recruitment and retention trials facing NUST and the higher education sector in general to analyse the root causes (Van Hoof, 2020). The institutions of higher learning are vital to the success and growth of the Namibian economy. Retention of highly talented employees appears to be a concern at NUST given a high staff turnover (Deloitte, 2020). Research focused on retaining highly skilled employees might influence the institution’s success and growth, especially employees who are the key drivers in steering the institution in the right direction. If the challenges of retention are not addressed, this will probably negatively affect the university’s overall performance in terms of growth and professional support service to the education sector (Nambira & Enkali, 2019, p. 4). There might be a repeat of the threat in 2012 of employees striking, because of a lack of salary and increment benefits (NUST annual report: 2013). When employees strike, major drawback to the institution are caused because the absence of administration staff hinders service delivery to the students.

The researcher was motivated to undertake this study regarding employee recruitment, turnover and retention of high talent because it is deemed necessary by the fact that high performing and talented employees continue leaving the institution sighting similar reasons for leaving. It is envisaged to propose recommendations that will assist NUST in addressing challenges faced by the institution. The researcher attempted to obtain an understanding and insight into the institution’s recruitment and retention strategies.

To address the scarcity of literature that exists on the relationship between TM and employee retention within NUST and to understand whether implementation of TM can reduce employee retention, the following objectives will be explored:

1. To determine the impact of TM on employee retention at NUST.

2. To find the benefits that the institution can achieve by implementing TM.

3. To formulate the retention strategies adopted by the institution to reduce turnover.

4. To determine the effect that TM has on employee turnover.

5. To explore the relationship between TM and employee retention at NUST.

Literature review

The conceptual clarification of talent

According to Silzer and Dowell (2010):

[T]he term talent dates back to ancient Greeks and biblical times, starting as a measure of weight, then becoming a unit of money and later meaning a person’s value or innate abilities. (p. 13)

We might now refer to a person with innate abilities as a ‘gifted’ individual. There is no universal accepted definition of what talent constitutes, as different organisations and different sectors define talent in a wide range of ways. A few will regard employees who are the current top performers as talent, whilst others also classify those with ‘high potential’ (HIPO) as talent (Bussin, 2014, p. 46). Bussin (2014) further adopted a definition as stated in the Chartered Institute of Personnel and Development (CIPD) (2012) that:

[T]alent consists of those individuals who can make a difference to organisational performance either through their immediate contribution or in the longer term, by demonstrating the highest levels of potential.

Letchmiah and Thomas (2017, p. 3) define a ‘talented employee as the one who drives consistent excellent business performance through competency, commitment and involvement and has shown the potential to move up’. Silzer and Dowell (2010, p. 13) further stated that in an organisation, talent could refer to:

• an individual’s skills and abilities (talents) and what the person can do or contribute to the organisation

• a specific person usually implying she has specific skills and abilities in some area, or

• a group of employees in the organisation impacting superior performance and potential.

Egerova (2014), as cited by Van Zyl, Mathafena and Ras (2017, p. 2), believes that:

[T]he increasing attention to talent is affected by factors such as globalisation, knowledge-based reimbursement, changing the world of labour and also new forms of organisational and demographic changes. In some organisations, talent does not make a great difference about organisational performance. (p. 2)

‘Many bureaucratic organisations have been designed and structured so individuals do not need to perform at a superior level, they simply need to perform at an adequate level’ (Lawler, 2017, p. 10).

Talent management defined and the need for attention

According to Blass (2009, p. 17), cynics argued that ‘TM is just another human resources fad, but few fads seem to have turned themselves into a new trench in the labour market’. The roots of TM can be traced back to the downsizing and outsourcing trends in the 1990s, including the slimming down of graduate recruitment schemes. TM became more popular after McKinsey & Company coined the term ‘War for talent’ in 1997 for their research on TM and practices (Van Zyl et al., 2017, p. 1). Bussin (2014) stated that:

[M]any organisations responded to this ‘wake-up call’ by building methodologies, processes, and talent review mechanisms aiming to attract and retain critical talent and skills required to compete and ‘win the war’. (p. 85)

According to Van Zyl et al. (2017, p. 2), TM has progressed quickly up the corporate agenda in the recent years, which is apparent from the number of research papers published over the last few years. Typically, according to Poisat, Mey and Sharp (2018, p. 2), TM has three mainstream definitions: firstly, it is the description of a new HRM term; secondly, an insinuation of succession planning; and finally, the general management of talented individuals in the organisation. Bussin (2014) further stated that:

[E]ven after many years, organisations are still struggling with ensuring they have the right people, with the right skills, doing the right things, at the right time to achieve business results.

Armstrong (2012, p. 719) defines TM as ‘ensuring that the organisation has talented people it needs to attain its aims and objectives’. The term TM may simply refer to management succession planning or management development activities. Mahlahla (2018) mentioned that TM has three main goals, namely:

• to identify, handpick and develop employees who provide superior performance and stimulate others to perform with the same confidence,

• to find, develop and position highly qualified backup personnel for key positions in the organisation,

• to allocate resources, namely, rewards, training, coaching, job assignments and other inducements to employees based on their genuine or potential contribution to excellence.

Chee’s (2017) study on TM mentioned effective TM planning, leadership, continuous support, organisational unity, work-life balance and other environmental factors where important strengths to retain talented employees in the organisation.

According to Riccio (2010, p. 17), there is a shortage of TM in educational institutions as they spend too little time identifying their future leaders whilst claiming to be institutions for higher learning and training. Several researchers share the same view that there is a need for TM in every organisation and it must be incorporated to create and maintain a strong association of human resources development. Letchmiah and Thomas (2017) mentioned that TM relates to the implementation of integrated strategies that are designed to increase efficiency by developing improved processes for attracting, developing, retaining and utilising individuals with required talents and aptitude to meet existing and future organisational needs. Overall, according to Van Zyl et al. (2017, p. 2), there seems to be a lack of linkage between TM practices and the broader human resources system.

Employee retention

Talent retention is all the activities and practices used by organisations to avoid the departure of talent. ‘Because of the high costs associated with losing talent, it is difficult for organisations to gain and maintain a competitive advantage without retaining their talent’ (Ott, Tolentino, & Michailova, 2018, p. 16). Kibui, Gachunga and Namusonge (2014, p. 421) mentioned that employee engagement and employer–employee relationship should be durable, constant and link the employee to the organisation’s common values and by how the organisation responds to the needs of the employee. However, the South African Board for People Practices found in its annual HRM survey as cited by Erasmus, Grobler and Van Niekerk (2015, p. 34) that a significant 32% of South African organisations do not concern themselves with retention phenomenon, but at least 46% indicated the problem as a concern.

According to Lawler (2017), a major issue in talent development is talent retention. Talent retention as identified by Sparrow and Makram (2015, p. 250) is talent protection and is the process whereby organisations develop isolating implements to protect its talent resources from being lost to other organisations. Turnover is expensive from an administrative and development viewpoint, but its greatest expense often is the opportunity of the talent lost. Arguably, the economic downturn at the start of this decade has caused many employees to stay in jobs that they might have left earlier. As the economy recovers, up to half of the managers could be looking for new jobs as long hours, lower salaries and benefits coupled with their perception of ungrateful and greedy senior leadership, which propels disgruntled employees to leave as more opportunities become available (Blass, 2009, p. 13). The study of Onyango, Nzulwa and Kwena (2017, p. 637) revealed that employee retention involves taking measures to encourage employees to remain in the organisation for the maximum period of time. Onyango et al. (2017, p. 638) further define employee retention as a systematic effort by employers to create and foster an environment that encourages employees to remain with the organisation.

A significant number of employees leave their jobs before they have spent a year with the organisation (Lawler, 2017). Retention strategies should be adopted to strengthen the ability of organisations to attract and retain their workforce. Employee retention is important for building a productive, committed and healthy workforce (Onyango et al., 2017, p. 637). Kibui et al. (2014, p. 422) emphasised that retention is mainly to prevent the loss of competent employees in the organisation, which could cause harm to productivity and service delivery. Remarkably, in understanding challenges faced by organisations to retain staff, it is vital to understand employee turnover (Dhanpat, Modau, Lugisani, Mabojane, & Phiri, 2018).

The talent management strategies to enhance retention in an organisation

A TM strategy according to Armstrong (2012) consists of a view on how the TM processes blend with the organisation’s overall objective to acquire and nurture talent wherever it is. According to Poisat et al. (2018), TM strategies must be adjusted to accommodate the diverse values, features and attitudes towards work and corporate world view of the different generational associates working together. According to Bussin (2014, p. 81), succession management is one tactic to overcome leadership succession risks. Koranteng (2014, p. 23) further suggested that a succession system would be more successful if it is highly formalised, has a system of checks and balances, has adequate resources, has broad information, uses capability rather than governmental criteria for individual selection and has reliable staff. According to Robertson (2015), coaching new employees is important to incorporate coaching into a TM strategy to enable an increase in employee engagement and achieve talent development goals such as problem-solving capabilities and strategic thinking. TM suggests that organisations must be purposeful with their retention techniques to help engaging with newly recruited employees considered top performers. ‘The techniques may include selection techniques, developmental opportunities, and mobility within the organisations and promotion prospects’ (Letchmiah & Thomas, 2017). According to Davis (2016, p. 25), creative assignments is stating that “one cherished resource many organisations overlook is the value of existing employees. Attention on recruiting top talent is a priority for an organisation but so is the talent. Creative assignments is one of the many ways that organisations employ to increase the efforts and abilities of employees whilst performing tasks.

According to Bussin (2014, p. 74), talent development is learning and development of talent and is one of the most important components of a TM strategy and the development needs to be customised and experiential. Developing the right talent and doing so in the correct way is critical to the effectiveness of each organisation (Lawler, 2017). The aim is to use the business strategy to explore the talent attraction and development that may occur. Leadership development according to Armstrong (2012) is rather an unfavourable statement for those who are leaders by birth although there is a saying that leaders are born not made. However, further defines leadership development as a sense to acquire, develop and utilise leadership capabilities or the potential for it. Armstrong (2012) suggested possible conditions for effective leadership development as clear learning objectives, the opportunity for active practice, relevant timely feedback, suitable follow-up activities and a suitable mix of training methods. Employee engagement is one fascinating concept that comes along every few years in the HRM field that is fuelled by an intense business need and introduced into practice so quickly that it creates consternation and confusion in research and academic communities (Silzer & Dowell, 2010, p. 439).

Constructive retention strategies

All organisations are challenged with attracting and retaining a quality workforce to attain operational excellence and competitive advantage (Sparrow & Cooper, 2017, p. 78). Dhanpat et al. (2018) mentioned that it is vital to note that when organisations recruit HIPO individuals, they must develop and implement retention strategies immediately to prevent employees from leaving. According to Turner and Kalman (2014), retention is not only about money but also a universal process that will span most aspects of an individual’s management.

Mentorship programmes: Mentoring plays a key role in helping employees gain awareness into how senior leaders operate (Davies & Kourdi, 2010, p. 66). Organisations having employees mentored is one of the valued and effective professional development prospects they can offer employees. New employees can learn the ropes from an expert through a wealth of guidance, encouragement and support that will provide personal and professional benefits that lead to better performance.

Recognition and rewards system: According to Letchmiah and Thomas (2017), employees who perceive contributions equal to the benefits they receive are less likely to leave their jobs. The appreciation can be as simple as leaving a small note on the employee table, sincere email, a gift card, an extra day off or, as a surprise to a deserving individual, an internal promotion. To succeed in the war for talent, organisations need to clearly understand how numerous reward factors influence whether talented performers stay or leave their jobs (Pregnolato, Bussin, & Schechter, 2017).

Employee compensation: Mahlahla (2018) stated that other researches are on the opinion that the significance of financial compensation strategy on retaining employees varies as per individual and is not necessarily a motivator for everyone. Compensation plays a key role in attracting employees, improves an individual’s organisational commitment and ensures employee retention (Dhanpat et al., 2018).

An ideal package may include a salary, 13th checks, medical aid, pension, and retirement plans, generous paid leave and paid studies.

Communication and feedback: Dhanpat et al. (2018) emphasise that proper and frequent feedback is vital in retaining employees because employees perceive organisational support and increase commitment in the long-term. It is crucial to regularly connect with each employee and not allow issues to build up.

Perform exit interviews: According to Amsbary and Powell (2018):

[S]ome people switch jobs, moving because of a better salary and benefits and working environments while others burn out by working too long and too hard at a single position.

It is very difficult for an organisation to figure out why an employee is leaving unless the employee is asked. That is why Amsbary and Powell (2018) revealed that:

[I]t is vital for an organisation to schedule an exit interview with all employees who decide to resign. Since an exit interview is the last meeting between an employer and an employee, it will give a last chance for the employee to contribute to the organisation’s success. Organisations will be able to form trends and implement an effective change program to reduce or even avoid high turnover and improve retention.

Benefits of talent management

According to Sparrow and Cooper (2017, p. 51), TM has become a burning topic in management over the past few decades. The understanding of the TM topic has progressed in recent times, and the quality of experiential evidence has advanced and has countless benefits that organisations can utilise.

Retaining top talents: According to Letchmiah and Thomas (2017):

[T]op-performing employees are at times unnoticed and seen as organisational assets. As a result, employees become unhappy with and detached from their current employers and begin to look for new job opportunities where they feel more valued and appreciated. (p. 2)

Erasmus et al. (2015, p. 34) highlight that retaining high-quality talent is important to organisations as it eliminates the hiring, selection and onboarding costs otherwise suffered in replacing best professional talent.

Getting the right person for right position: Organisations that attract and retain the right talent and treat it well, reward it, develop it and deploy it correctly perform better than those that simply fill jobs (Lawler, 2017). The right person in the right job will give a better alignment between employee’s interests and job profile that leads to increased job satisfaction and their needs.

Enhanced professional development decisions: Poisat et al. (2018) state that the work environment is important for employee satisfaction and a positive relationship between management and employees. They further indicate that such a relationship needs to be of mutual respect, trust and confidence in employee’s capabilities.

Improved hiring: The success of an organisation’s hiring strategy is determined by an effective TM system that leads to a quality workforce (Van Zyl et al., 2017). As the saying goes, there is no successful talent at the top without bottom talent.

Competitive advantage: Engaged, motivated and skilled employees work in the strategic direction of the organisation’s goals and objectives, which creates a competitive advantage (Ott et al., 2018, p. 17).

Employee motivation and commitment: Poisat et al. (2018) state that that an organisation’s effective TM strategy helps them to keep their employees motivated and committed. A motivated workforce discourages employees to leave the organisation and do their job effectively. Not all employees are driven by money, so they will need to feel engaged and feel safe to be fulfilled.

Employee turnover

Employee turnover is a concern in many worldwide organisations, which decreases the operating costs of organisations, leaving significant effects on talent loss and disruptions in business activities (Dhanpat et al., 2018). Theron, Barkhuizen and Du Plessis (2014) distinguish between avoidable turnover (identified as those employees who express turnover intentions but do not resign) and unavoidable turnover (described as voluntary resignations because of various reasons that organisations have no control over). Narayanan (2016, p. 35) states that over the past few decades, management practitioners have shown more interest in the labour turnover model as it is always a significant concern to many organisations.

Mamun and Hasan (2017, p. 63) blame it on the organisation’s top management as they pay less attention and do not concentrate on this major issue, as they are possibly not capable of recognising the situation on how labour turnover harms the organisation’s overall performance. Ahmed, Sabir and Khoza (2016, p. 89) narrate that employee turnover results in the access and opportunity to enter into new employment. Armstrong (2012) believes that it is necessary to measure labour turnover and calculate its cost to estimate future losses for planning and also to recognise the motives on why people leave their employment. Numerous researchers, including the studies of Ahmed et al. (2016, p. 90), highlight similar factors on why people leave their jobs, such as lack of proper induction and orientation, a mismatch between experience, qualification and salary offered, poor training and development, low-grade working environment, career promotion and bad influence of co-workers. Besides these causes, Silzer and Dowell (2010, p. 240) added that employees also leave because they do not feel appreciated and because management fails to set clear job expectations for prospective employees.

Challenges associated with talent management

According to Sparrow, Scullion and Tarique (2014) ‘there are many debates and criticisms about the way TM is applied in practice and the topic is still lacking a definition and needs theological growth’. TM offers a fresh approach to addressing the hot topic through human resources affluence as many challenges need to be considered, especially the organisational level and employee level challenges (Silzer & Dowell, 2010, p. 753).

The study of Mogwere (2014, p. 23) stipulates that it ‘is important to remember that challenges differ from organisation to organisation even from one continent to another regarding experiencing and a shortage of talent’. Mogwere (2014, p. 23) uses Africa as an example, where organisations lack the ability to hire and retain a qualified workforce and face challenges such as poor salaries, working conditions, proper employee engagement and reduced rewards. Another challenge according to Mogwere (2014, p. 23) emphasises talent shortage resulting from the deteriorating quality of the education system, because of low funding caused by inadequate education and lack of facilities, equipment and tools; the most critical challenge is the lack of qualified academic staff. The studies of Koranteng (2014, p. 30) added that factors such as the current economic crises, hiring and selection, cultural diversities and proper human resources planning are affecting the management of talents.

Research design

This study was performed based on a qualitative research design to understand the effect of TM on employee retention at NUST. According to Bertram and Christiansen (2014, p. 40), ‘research design is a plan of how the researcher intends to methodically collect and analyse the data that is needed to answer the research questions’. The research information was solicited from both primary and secondary data. The researcher made use of a one-on-one interview with semi-structured questions with the study participants.

Research approach

The researcher adopted a qualitative research method by making use of a case study approach because of the complexity and nature of the study. According to Beaudry and Miller (2016):

[A] qualitative research remains constant among other approaches with distinctive features such as, the research focuses on people in their natural settings, samples are small and they are sensitive to setting and purpose, data analysis is inductive, and the researcher was the key instrument for data collection and is engaged with visible players. (p. 39)

Research strategy

The primary source of data for this study was obtained through the semi-structured interviews administered to the participants for both the middle-level administrative employees and the director of HRM.

Research method

Research setting

Interviews were conducted at NUST, which is a Namibian public tertiary educational institution that has recently transformed to a full-fledged university. The institution has grown since its academy years and employed close to 1000 employees, which comprise academic and administrative staff, and enrolled about 13 000 students in 2019. The research was conducted according to ethical rules, procedures and guidelines of NUST obtained from the department of the deputy vice-chancellor of innovation and research.

Entrée and establishing researcher roles

The primary researcher performed the role of interviewer.

Research participants and sampling methods

The 39 potential participants of the study were identified by finding all the names of the individuals that fitted the criteria for the target population. Detailed informed consent forms were e-mailed to participants seeking permission and approval to conduct interviews for gathering responses determining the influence of TM on employee retention of the sample population to address the research questions. An introductory e-mail on the setting up of convenient interview meeting times and venues that ensured confidentiality was sent out to individuals who had by that time consented to participate in the study. Interviews were conducted by first explaining the interview protocol and setting out the aims and objectives of the study. At the end of data collection through the structured interviews, 22 participants were interviewed, which represented a response rate of almost 58%. It was considered sufficient because data saturated well before then.

According to Bertram and Christiansen (2014, p. 59), ‘sampling encompasses making decisions about which people, settings, behaviours, and events will be included in the study by deciding how many individual groups or objects will be observed’. The unit of analysis of this research paper was the administrative middle-level management staff of NUST, because this group of administrative staff is where key activities of NUST revolve.

The researcher approached 39 participants who met the criteria from all 13 administration departments of NUST, meaning it was 3 participants from each department. Of the possible 39 participants approached, 22 were available and able to make the interviews. Data saturated long before all 22 interviews were completed. The sample selected was of the participants in employment for not less than 1 year because they have the knowledge based on the research problem. The participants selected were interviewed and the semi-structured were from the office of the vice-chancellor; office of the deputy vice-chancellor, administration and finance; office of the bursar; office of the registrar; human resources; library; centre for open and lifelong learning; department of auxiliary services; centre for teaching and learning; centre for corporative education unit; dean of students; centre for enterprise development and the department of information and communication technology.

Data collection methods

The data collection method was through semi-structured interviews with the participants selected as the middle-level administration staff members. The respondents answered the interview questions freely according to their ethics and principles without being exposed. The researcher adopted the use of open-ended and closed-ended questions to make it easier for data analysis. Semi-structured interviews lasted from 30 to 45 minutes and the researcher made audio recordings of all the interviews that were later transcribed and analysed.

Data recording

The researcher maintained a file to keep all the handwritten notes of what was said by the respondents because it was easy to lose crucial information if the papers were loose and no respondent would want to be interviewed twice and time was of essence. With the fast-paced technology world, the researcher made use of audio recording that was transcribed before analysis began.

Strategies employed to ensure data quality and integrity

The most cited concept of trustworthiness of quality criteria of this research method is that of Guba and Lincoln of 1985 and thus, this research’s trustworthiness was established by using credibility, transferability, dependability and conformability strategies. To that extent, the researcher ensured that data and data analysis will be credible and trustworthy. The participants were encouraged to support their statements with examples where necessary and the researcher studied the raw data to develop a theory to provide intended insight. Characteristics of data were examined by developing codes and core categories, recording and labelling them. The researcher ensured sending all interview transcripts back to respondents for feedback and correct any misinterpretations through member checking. The researcher made use of good descriptions of the respondent’s answers and the full research process. This enabled the reader to see if findings were in harmony with their experiences and to make transferability judgement decision. To increase dependability, the researcher ensured that the research process is logical, traceable and clearly documented.

The proposed research was conducted according to ethical rules, procedures and guidelines of NUST obtained from the department of the deputy vice-chancellor of innovation and research. Permission to conduct the research was obtained from the registrar, the consent form was developed to safeguard the participants and consent was sought from all participants before starting the interviews. According to Wiley (2013, p. 42), in the research setting, discretion means that identifiable information about individuals, collected during the process of research, will not be disclosed and that the identity of research participants will be protected through a process designed to ensure anonymity, unless they specified to be identified.

Data analysis

According to Beaudry and Miller (2016, p. 45), ‘in qualitative research, data analysis depends on the procedures for organising and reducing data and summarising results’. After collecting the information, the researcher carefully read the handwritten notes and listened to the audios to identify patterns amongst the data collected. Responses differed from the respondent’s different ways of answering the question on how they felt and thought. Thereafter, responses were transcribed into an excel worksheet for data analysis. It is a crucial step for analysing and organising qualitative data to be able to understand, see and allocate codes to sensitive and indirect data collected throughout the study. Responses for each question were assessed and analysed for key words and phrases for which codes were allocated. The codes that were identified were then organised into one dataset applicable to each question. The dataset was then analysed for resemblances, differences and replicate themes and organised order theme bands, categorised patterns and emerging themes for which each theme was named. This report underscored the themes for TM and employee retention, which emerged from the responses utilising thematic analysis technique. Thematic analysis is a search for patterns and themes within a dataset that discovers commonalities of capabilities, thoughts, beliefs, opinions and views, thus addressing the research questions being examined.

Reporting style

The study was reported as per the guidelines of the American Psychological Association (APA).

Ethical considerations

Ethical clearance was obtained from the Southern Business School, SBS-20201-0014-MM.

Results

The results are presented against the objectives of the study.

Research objective 1: To determine the impact of TM on employee retention at the NUST

The encounters of the study showed that NUST is not yet at the phase where it is supposed to be in terms of TM development and employee retention. At this stage, TM has not yet made significant progress and development to where it can influence employee retention. The findings exposed shortcomings in the implementation, such as the lack of overall leadership commitment that was found to be deficient and may impede delivery. The findings showed that the institution has invested in allocating fair salaries although it has not reached a point where non-monetary incentives have satisfied the policy of talent attraction and fulfil employee job satisfaction. Poor employee retention in NUST was also attributed to slow planning of developing a TM programme that could have been implemented ages ago, while others may be from the financial challenges that the institution was facing as a result of slow funding from the government.

Research objective 2: To find the benefits that the institution can achieve by implementing TM

The concept of TM has different meanings for different people, which means that the benefits of implementing a TM programme will differ from organisation to organisation. This is similar to the previous studies as most kinds of literature cited that TM implementation is crucial to recruit and develop talent not just for meeting today’s needs but also keeping in mind the organisation’s future. Thus, developing TM and managing it properly by keeping employees engaged and motivated is beneficial to NUST’s sustainability. To achieve that, the findings expressed that developing a TM strategy in line with the institution’s vision needs to be implemented.

There was a perception that TM improves employee commitment and support to employees throughout their employment and therefore retains top talents. The NUST has made it a priority to complete the implementation of TM to achieve competitive advantage in terms of retaining high performers in administrative operations.

Research objective 3: To formulate the retention strategies adopted by the institution to reduce turnover

This objective was to frame retention strategies that NUST is utilising to minimise employee turnover. This was made by establishing whether there was an understanding of the concept of employee retention and what it seeks to achieve in terms of what level the concept contributes effectively to the TM system. The findings revealed an insignificant percentage of lack of understanding of retention; many understood that retention strategies are necessary and critical for the institution to improve its capacity to retain its high performing employees. The respondents were not keen to identify institutional retention strategies, with individuals emphasising job dissatisfaction because of the institution holding on to traditional HRM practices. However, few respondents commended the strategy of allowing individuals to study with fees waiver options although it was limited compared to the opportunity given to the academics. The majority were rather suggesting strategies that would aid in reducing employee turnover and recommend for exit interviews to be performed to know the reasons behind employees leaving.

Research objective 4: To determine how effective TM is on employee turnover in the NUST

This research objective was to determine the effectiveness of TM process in NUST. The findings concur with the conclusions of various authors and kinds of literature mutually acknowledging that TM as a process ensures that the right skills are acquired, nurtured and retained by the organisations. The findings identified one primary reason that employees leave NUST is the lack of matching non-monetary incentives with that of their competitors. However, career development, job satisfaction and performance management in TM are important factors influencing an individual’s decision to stay. The results show that TM would anticipate HRM activities such as recruitment and selection, coaching, training and development and performance management to minimise employee turnover.

Research objective 5: To explore the relationship between TM and employee retention at the NUST

Many scholars, just like the findings of this study, revealed a positive relationship between the institution’s TM systems and its employees. The findings further showed that employee retention is a major factor in reducing talented employees’ turnover. Therefore, management should give much attention to talented staff to retain their services in the long-term.

It was perceived that talented employees always have high expectations regarding compensation packages but must be include attractive non-monetary benefits in the packages. Career development, job satisfaction and performance management appear to have a close association with low turnover rates maximising the institution’s overall performance. The study concluded that TM cannot be separated from employee retention because they go hand in hand.

Discussion

Outline of the results

The main objective of the research study was to discover the influence of TM on employee retention at NUST. From the qualitative analysis of the results of the interview protocol, the study discovered that TM practices have a significant effect on employee retention at NUST. NUST has gradually benefitted from introducing TM and developing a performance management tool from the analysis yielding several positive outcomes, with the aim to largely benefit after the complete implementation.

The findings also observed the importance of top management playing their key role in the TM programme to ensure the practice of talent retention whilst minimising employee turnover. The results on talent retention strategies showed absent retention strategies except for the old traditional processes in place that helped little in retaining employees. The literature review revealed several retention strategies to challenge the attraction and retention of a talented workforce.

The study findings expect employees to gain more attractive TM benefits that can motivate them to be more loyal to the institution. The study findings state that employees must adjust to change for TM to help them achieve their personal goals and objectives to develop their personal growth. To validate the above findings and finding the way forward, the next step is to address the analysis from the results of the four themes that emerged. The findings from the first theme of talent attraction were to identify and understand the processes of attracting new hires. It was discovered that employees were more attracted to non-monetary incentives compared to monetary incentives. The findings showed the lack of career development is one of the major reasons that employees leave their jobs. In the findings, respondents stated the lack of growth opportunities within administration although the details were not given professionally of exit interviews. Findings noted was increased turnover in the past few years because of burnout and non-monetary incentives offered by other institutions that NUST could not match and now calls for solutions to remain competitive and retain key talent.

The major theme of employee turnover attracted job satisfaction as the sub-theme and findings revealed that employees suffered from job dissatisfaction. The findings suggest that managers do not pay sufficient attention to the performance of employees and ignore the importance of job satisfaction. The study discovered that performance will be emphasised by developing a performance management tool at NUST. The findings concluded that the institution should manage its performance management to strengthen its capabilities and competitiveness in the operating environment. The results of performance management provide a basis for self-development and in TM to ensure the support and guidance that people need to develop and improve.

Practical implications

The findings of this study have important implications for the employers, especially those in the education industry, and the advancement of knowledge in managing and retaining HIPO employees at the institution. The findings of this study help the line and HRM managers in developing and implementing successful TM practices that would help align the core objectives of the institution. The institution should develop retention strategies based on the needs of its top talents and control the strengths that the institutional culture encourages and provides. This allows the institution to have a competitive advantage against other competitors by developing a TM strategy that would be consistent and efficient simultaneously. This study will also provide a vision to the institution as to how TM influences employee retention, so the institution can improve in developing, promoting and retaining talent to meet the existing and future needs.

As compensation of non-monetary incentives, career development, job satisfaction and performance management had the most significance, the institution should pay much attention to these four factors to keep the employee with the institution for a longer time. Line management must assume responsibility and accountability for the outcomes of managing talent in their respective units and departments. Constant communication and feedback are to be carried out continuously by direct management with the employees in a professional, open and honest manner. Finally, the study would also enable us to promote transparency amongst the management and employees in increasing their performance and indirectly help the institution to increase their productivity and ultimately lead to institution profit. The recommended practices for this study will offer the direction to higher educational institutions in determining which of the TM strategies are more effective to retain employees and what urges them to stay and work with the institution on a long-term basis.

Limitations and recommendations

Many interviews were performed via Phone, Zoom or Teams. This limitation was because of the international outbreak of COVID-19 that led to the country’s partial lockdown. The interventions were very strict because of the nature of spreading of the virus and thus led to social distancing and restricted travelling. Many respondents were not willing to risk attracting the virus. The challenge was also that respondents were not willing to provide the completely frank information as regard to the sensitivity of the study subject as they feared victimisation from top management. Another limitation was the lack of reliable responses as some of the data were recorded with cell phones, especially the ones gathered via the Phone app, and thus limited the research and analysis on some questions pertaining to this study.

Regarding empirical knowledge expansion, the study recommends to organisations and/or institutions wishing to restrict the drain of talent, increase job satisfaction to have well-motivated and effective employees and create better business results need to take practical steps to address these challenges. The strategies should increase the value of the organisation and preserve its sustainable competitive advantage.

Regarding organisational recommendations, the following should be practiced by NUST:

• Policymakers should revise and improve the HRM policies, including their TM and retention policy, as HRM policies directly influence employees’ working conditions.

• Implementation and correct application of talent retention strategies by applying the hierarchy of needs theory to understand employees’ needs in the institution by predicting the actions and behaviours of employees under different situations.

• Creating proper rewarding structure to enhance job satisfaction and therefore retention that may include fair benefits from the employee rebate systems for all employees and at all levels.

• Introducing a 360-degree performance appraisal method built in the new developed performance management tool and trying to tap from internal talent pool before a vacancy is advertised to the public.

• Creating an insignificant incentive approach.

Conclusion

The Namibia University of Science and Technology has embraced the development of TM combined with the performance management tool as part of its HRM management operations and practices. From the findings and discussion, majority TM practices that were found to have been adopted by the institution have a relationship with employee retention. Talent management practices to a greater extent determine employee retention; NUST needs to develop other practices such as knowledge management, health and safety and also employee engagement. This research study also established that successful TM is driven by a talent mind-set in which managers in the institution regard TM as their responsibility and not the sole responsibility of the HRM department. Failing to retain high-performing employees in NUST is costly just as for any other organisation because of costs associated with high turnover. Talent management practices can facilitate the development of employees, enhance service delivery and also give NUST an enhanced group image.

ERP Systems: Breaking Down Organizational Readiness and Sustainability Considerations for Implementation

Trish Nguyen from TPG

"If employees don’t feel like the leadership team is behind a transformation, they are not going to be either. This is essential for the change management of implementing an ERP or any other system into an organization and have it be successful over the long term"

What is an ERP and why might an organization need one? How can it make someone’s life/job easier?

An ERP is enterprise resource planning. It’s essentially an integrated management system of a company’s main business processes, through software and technology. Typically, it’s a suite of applications that are integrated or modules that an organization uses to collect, manage, store and use the data for their business activities.

It makes somebody’s life or job easier because it’s designed to track business resources such as cash or materials or production capabilities. And then they balance that out with business commitments. The data from purchase orders, HR, payables and more, is shared across departments, making it a single source of the truth in real-time. This makes all department functions work seamlessly together.

Are there any key considerations that a company should think about before implementing an ERP system? Are there any cautions or pitfalls that are common?

1. Buy-in from leadership

The leadership team must have a willingness to champion the integration, build that organizational support. If employees don’t feel like the leadership team is behind a transformation, they are not going to be either. This is essential for the change management of implementing an ERP or any other system into an organization and have it be successful over the long term.

2. Understanding of the organization’s business process requirements

Before implementing an ERP, companies need to know what the current state of their existing processes is, including how mature they are and how much mature documentation exists around those processes. From a finance perspective, understanding the critical reporting elements and what the information system needs to provide.

3. Clean data

Having clean data, and having a good plan in place to be able to migrate the good data into an ERP is critical. The system is only as good as its data. Does the company have the right team and competencies to undertake an integration? What gaps exist? And what mitigation plan is being put in place?

4. Capacity

Does the organization have enough capacity to undertake the integration? Do your people have the bandwidth to undertake this (and the necessary training hours that come with it) on top of their existing jobs?

How has an integrated ERP system evolved and how will it continue to evolve in a virtual / post-COVID-19 world?

Any system through this pandemic must support increased collaboration. A lot of companies are still on traditional hardware-based ERPs, while some have moved to cloud-based platforms. For those with older systems, when work-from-home orders began in March of 2020, there was a scramble to get new technology integrated to enable remote working. In 2021 and beyond, it is likely that organizations will continue to place more importance on making sure their employee can access everything online.

What trends or innovations are emerging in the space right now. Are there any opportunities that companies should be taking advantage of?

1. Increased use of cloud-based systems

As mentioned above,  one of the benefits of internet-based systems is the accessibility of real-time data and up-to-date software. Any time there is an update or upgrade, it is automatic across the company. This also makes it a lot easier to integrate with other applications. With this, companies will continue to look into what they can integrate together, to make their systems easier to use.

2. Demand for niche systems

There’s a growing demand for more niche solutions to optimize processes for both businesses and vendors. ERP systems started with the big guys (i.e. Oracle, SAP etc.). Now, companies are looking for ERPS that specifically serve their industry or niche business needs with features and functionalities that companies operating in this niche market would use. It’s no longer a generic software.

3.AI Integration

Companies are facing an increase in the number of complex and unstructured data that they’re collecting and that they’re having to analyze. Integrating an ERP with some sort of artificial intelligence platform makes it a lot easier to process that information.