Staff Retention

Human Resources constitute a unique asset, because unlike money and physical units, you cannot turn it up at will, even with better prices! There is a widespread notion in some stock market circles that better pay can bring in top management talent in droves. Perhaps this used to be the case decades ago, but extended economic growth in all sizeable markets can changed the demand supply equation for ever!

Many holding companies have begun to realize that they are limited by their abilities to find people for all their expansion plans, especially at middle and top executive levels. Personnel function heads have nightmares of holding on to staff numbers, arresting turnover of key people, and of delaying project implementation due to recruitment and training delays. Stock market professionals used to think that all this is none of their business, but now learn at their cost that companies with headless positions in organization structures cannot sustain productivity.

A trend of distinction in all companies listed on any stock market is the drive to recruit people with qualifications in Business Management. Indeed, the best financial institutions which preside over the stock market world are replete with recruits from the best business schools. Manufacturing and Service sectors have begun to follow suit, though the vast premiums which alumni from top schools command are unaffordable for most companies! Faculty members from renowned institutions have begun to win lucrative consultancies though many of them have no track records of success in real-life industries. Many new business schools have sprouted to cater to burgeoning demand, but stock market heavyweights continue to rely exclusively on well established Universities and centers of learning.

One area with relatively more elbow room for the best companies on a stock market is to develop holistic and effective training and development programs. Only large corporations can afford their own comprehensive facilities, and even they rely in part on external resources. Therefore, corporate trainers are in such heavy demand that they are the first to open new agendas for the coming year!

However, a more pressing concern for stock market investors is the aspect of people leaving to join the competition after extensive training inputs. Some employment contracts have safeguards against this, but it is nearly impossible at ground zero to make people work against their will! Therefore, while you may celebrate the growth of top and bottom lines, the turnover of key personnel is something to keep stagnant as far as possible!

back to Management