By Derek Irvine
Recognize This! – Changes in the business world are rapidly accelerating. To keep up, companies will need to recognize more of potential and creativity, and less past performance.
Keeping up with the changing world of work is becoming more and more difficult. No longer just about the pace of change, leaders must now also react and respond to the complexity of interacting and overlapping changes.
As I wrote in a recent piece on Compensation Café, the profile of competencies required of all employees – and how organizations recognize and reward them – needs to change in order to keep pace. What follows is an excerpt from the original post.
The imperative for leaders is in the creation of a compelling vision and how to motivate employees around that vision. Unfortunately, those seem to be the skills that are lacking among high-potential (HiPo) employees in leadership pipelines. Recent research published in the Harvard Business Review found that nearly half of participants in HiPo programs are below average when measured on leadership effectiveness.
A portion of these findings might be explained by a “how/best” mindset that has traditionally guided organizational decision-making. Leaders seek out which decisions are the best and then how to implement them. Where data from past performance or best practice exists, that mindset is both effective and efficient. However, that same mindset presents a barrier in response to situations that are novel or uncertain, situations that require creativity in response to change.
To be future-proofed, organizations need to move away from the types of processes and structures that reward a “how/best” mindset and past performance. Instead, they will need to place more emphasis on how to identify and develop a broader range of employee attributes, including potential and creativity.
One way that business and HR leaders can shift the emphasis is through the strategic use of rewards and recognition. Not only will that contribute to a more positive employee experience overall, but social recognition can also provide leaders with the data on which individuals are being recognized for their innovation, their curiosity in solving challenging problems, and for experimenting with new processes.
Click on this link to read the full post on Compensation Café.