WITH the general shortage of skilled people in the market and the difficulties organisations face in finding the right people for their business needs, finding and retaining talent has become a priority for many organisations. In an environment where people have many job offers to choose from and where loyalty has become secondary to compensation and higher positions, retaining people has become a real challenge.

It is clear though, that even if salary levels and other monetary benefits play an important role in people's choice of employment, it is not the only factor to guide their decision of staying or leaving an organisation. The feeling of belonging to the organisation they work for is far more important for people's loyalty.

So what can organisations do to retain their people? There may not be one single answer to that question, but one of the best solutions is to engage the people in the business and make them feel they are 'part of a team'. It is about making people confident in their roles and to feel appreciated for their work. There are different ways of achieving this depending on the type of the business, the corporate culture, the profile of the people including age groups, etc, but it should lead to the same solution of people feeling 'at home'.

Key strategies in retaining talent

Affirmation and trust in employees

One key element of people interaction is affirmation. People continuously need confirmation that they are appreciated for what they do and employers need to continuously demonstrate their trust in their people, not only in words but also in the behaviour of the management. A starting point for management to build a 'platform of trust' with the people is to involve them in the plans and objectives of the business. This will potentially release the creativity of the people, for when they understand what the business plans and objectives are, they are more likely to actively participate in the fulfilment of these plans and objectives. It also contributes to a more positive attitude among the people, which in turn brings about a more creative working environment overall.

Communication of the organisation's mission

What business understanding should then be conveyed to the people? The most basic is to understand the organisation's mission - that is, what the organisation wants with its business in the market. It is surprising how often employees do not know exactly what business their employers are in, and this is more likely to be the case when the organisation is bigger or the business is more diverse. If the employees cannot fully relate to the business, how can we expect them to feel attached to the organisation?

It may seem obvious what business an organisation is in and many organisations take for granted that their people know, but an active communication by the management to its people on what they see as the organisation's role in the market is critical. The communication will clarify what aims the management has with the business and it makes the people feel involved when management shares this information with them. All of this should be incorporated into a mission statement, which should be shared with all levels of people within the organisation.

Communication of the organisation's vision

But communicating the mission is not enough. Once the people understand what the management's aims with the business are, they also need to be made fully aware of what the management vision for the business is - that is, what the long term business direction is and what aspirations the management has for the business for the future. The vision plays a key role in unlocking the potential of the people and to building the foundation for them to proactively be able to take responsibility for their job performance in the context of the organisation's business developments. The vision serves as the glue between the organisation and the people, setting focus on the people working together for one and the same objective, to the benefit of both the organisation and its people.

Communication of the organisation's short- and long-term goals

While the vision identifies where the organisation wants to be positioned in the marketplace in the future, there is also a need to share what intermediate goals the organisation aims to achieve in the short term. These goals serve as 'milestones' in the organisation's development progress towards the vision. Though the vision can be something not necessarily achievable, the goals must be perceived by the people as reasonable, realistic and measurable. Sharing the goals with the people will make it easier for them to monitor and associate themselves with the progress of the organisation's business, and it will help them better understand what needs to be done - 'as of now' - for the organisation to meet its long term-objectives. If the vision is the glue between the organisation and the people, the goals are the fixtures that keep up the vision.

Communication of the organisation's business strategy

Though it is important to share the mission, vision and goals with the people for them to fully understand the direction of the business, it is only when they get actively involved in the business strategy that they will be able to proactively participate in the business developments and constructively contribute to achieving the goals and objectives of the business. The purpose of the business strategy is to identify and explain these activities and actions, including how the management aims to achieve the goals and the vision, with a focus on its priorities, timelines, allocated budgets, and how people and departments are to be engaged to carry them out.

Employee involvement through personal development plans

Nevertheless, people will normally not take proactive initiatives even if they understand the business objectives unless they also have the confidence that management will support their initiatives. They need the confirmation that their interpretation of what they can contribute is correct, not the least from a business environment perspective. This confirmation should come through the creation of 'personal development plans', which are followed up upon with each employee on a continuous, on-the-job coaching basis. The main purpose of the personal development plans and the coaching is to make sure that management and the individual employee are in agreement with respect to the employee's job focus, career progression and future opportunities.

The overall purpose of involving people in the business objectives and aligning their personal plans with the business strategy is to create a platform for unlocking their potential and focus their skills and creativity on business developments within their immediate work environment. The importance of making people feel attached to the organisation they work for to keep them motivated and committed cannot be emphasised enough and should be a people management priority for all organisations.

Organisations which manage to unlock the potential of their people at all levels and across all grades will earn the loyalty of their people, and they will progress faster towards their business vision. However, this will only be achieved if the management is passionate about their people and truly care for their development.

The writer is a partner with PricewaterhouseCoopers, International Assignment Services

This article was first published in The Business Times on April 29, 2008.