Strategies to Stop Talent Hoarding

Enhance Employee Retention and Career Mobility Through Effective Use of HR Metrics and OrgChart Software

At the time of writing, U.S. unemployment is at a favorable 3.7 percent, a figure often regarded as full employment. Yet, workforce challenges such as worker quality, job satisfaction, and employee retention remain prevalent. Indeed, in the face of stiff competition for talent, some companies find themselves so desperate for help that they neglect essential elements such as employee development, leading to a phenomenon known as “talent hoarding.”

What Is Talent Hoarding?

Talent hoarding is when managers concentrate so heavily on retaining their employees that they overlook their professional growth. The solution to this issue lies in promoting a culture that values and supports employee development, with leadership championing cross-functional opportunities and emphasizing continuous learning. Reviewing employees’ roles and responsibilities ensures management does not miss growth and development opportunities.

Strategies to Stop Talent Hoarding

Nevertheless, companies need to encourage or even permit employees’ internal movement to avoid losing valuable talent. Lack of career progress is the top reason employees cite for leaving their positions, as highlighted in Gallup’s 2017 State of the American Workplace report. It revealed 51 percent of currently employed adults actively or passively seek new job opportunities. This suggests companies that fail to prioritize career mobility are most vulnerable to losing talent.

The Effect of Talent Hoarding on Employee Engagement & Retention

The Effect of Talent Hoarding on Employee Engagement

Employees may feel trapped, undervalued, and unfulfilled without opportunities to expand their skills or rise in the organization. This can lead to detrimental consequences:

• Decreased Motivation and Productivity: Without growth prospects, employees’ motivation to excel at their jobs diminishes. This decrease in motivation often translates into lowered productivity, leading to a decline in the team’s overall performance and, eventually, the company.
• Increased Employee Disengagement: Talent hoarding often results in employee disengagement. Disengaged employees are less likely to contribute to the team’s success and may even spread negativity within the group, further hampering productivity.
• Heightened Employee Turnover: High turnover is a common symptom of talent hoarding. Employees seek opportunities elsewhere if they believe their organization does not value their career progression.
• Diminished Team Morale: When talent hoarding is prevalent, it can lead to a general decrease in team morale. A stagnated career path affects the employees directly involved and can demotivate other team members who witness their colleagues’ frustrations.

The Effect of Talent Hoarding on Employee Retention

The lack of career mobility and the resulting employee dissatisfaction often result in an organization losing its most valuable resource — its people. Here’s how talent hoarding can lead to poor retention:

• Lack of Job Satisfaction: Job satisfaction plummets when employees feel stuck in their current roles and need more room for growth. Unhappy employees are more likely to leave an organization for better opportunities.
• Reduced Loyalty: Employees who see their managers hoarding talent may feel less loyal to the organization. They may believe the company needs to care about their personal and professional growth, which drives them to move on when that need is unmet.
• Lowered Employee Engagement: Talent hoarding can lead to decreased engagement, which impacts retention. Engaged employees are likelier to stay with an organization, whereas disengaged employees are likelier to seek other job opportunities.
• Attrition of High-Potential Employees: Talent hoarding can be particularly damaging when companies lose high-potential employees. These individuals are often the ones most eager to grow, and if they see no opportunity for advancement within the company, they’re likely to leave.

It’s clear talent hoarding poses a significant threat to employee engagement and retention. It’s a concern that organizations must address promptly to maintain a healthy and productive workforce. Implementing strategies to combat talent hoarding, encouraging career mobility, and leveraging HR metrics through tools like OrgChart automation software can improve employee satisfaction, engagement, and retention.

Improving Career Mobility for Better Employee Retention

Fostering career mobility within an organization is a proven method for improving employee retention. By encouraging internal movement and personal growth, businesses can build a culture that keeps employees engaged and motivated. This strategy includes offering continuous training and development programs, identifying potential leaders for mentorship, and rewarding employees who take on new challenges or roles.

Holding back your star players from new roles leads to low employee retention and adversely affects market success. Prioritizing talent mobility directly correlates to higher profitability, customer satisfaction, and market share performance. In its Talent Mobility Matters study, the Institute for Corporate Productivity found 74 percent of the companies characterized as bottom performers admitted to hoarding. Moreover, the study found prioritizing talent mobility directly correlates to higher profitability, customer satisfaction, market share, and more market performance.

Thus, mobilizing stars into diverse roles and instilling a big-picture mindset are crucial to address talent hoarding. Bain & Company found top-performing companies (those in the top quartile surveyed) had nearly the same percentage of “stars” in their workforce as the other companies surveyed. In other words, the most successful companies don’t house more star talent than low-performing ones. The difference? They invest in their key players wisely.

The Role of OrgChart Software in Identifying Talent Hoarding

OrgChart software can be instrumental in identifying talent hoarding and problem areas by offering a visual representation of the company’s structure. It enables efficient HR data analysis, including metrics that indicate talent hoarding, such as turnover ratio, bench strength, and performance. A free demo of OrgChart software demonstrates how to leverage data you already maintain to get clear insights into such key HR metrics.

Understanding HR Metrics to Counteract Talent Hoarding

Metrics such as turnover ratio, bench strength, and performance rating can provide a clear picture of workforce dynamics, enabling companies to detect trends, foresee issues, and take proactive measures. Efficient use of these metrics contributes to an organization’s overall health and success.

While encouraging worker mobility might seem disruptive or counterproductive to some managers, evidence suggests it is beneficial for the long-term health of your business. Remember, investing in talent development is a continuous effort that boosts your bottom line and ensures your best talent continues to contribute positively to your organization’s growth.

Take Action Against Talent Hoarding With OrgChart

The potential adverse effects of talent hoarding — decreased motivation, increased disengagement, high turnover, and low morale — underline organizations’ critical need for a proactive strategy. Efficiently using HR metrics and the right software tools counters talent hoarding, improves job satisfaction, enhances loyalty, and retains high-potential employees.

OrgChart helps you visualize your organization’s structure, providing clear insights into workforce dynamics. With powerful features that enable the analysis of key HR metrics, OrgChart can support your efforts to promote career mobility, employee engagement, and, ultimately, a healthier and more successful business.

Don’t let talent hoarding undermine your organization’s potential. Request a quote today, and explore how OrgChart can equip you with the tools you need to manage your talent and drive your company’s success effectively. Your employees are your greatest asset — let us help you optimize their potential for the benefit of your entire organization.