The audience always wonders about why large companies crash! However, no one ever gets the reason behind the fall of big companies. Even I did not know earlier, but after much research, I could find the reason behind their crash. The reason for their fall is they fail to retain their best talents. Whether it is a high-profile company or an established conglomerate, large companies have a hard time in retaining talent in the house. Recently, large established companies discussed how to keep talent and the significant pros and cons of not maintaining their talented employees in their companies. After considering the good and the bad things that large companies do about talent management. Here is my Top Five list of why large companies fail in employee retention and crash:
- Poor Bureaucracy: This is probably the first reason we hear from disenchanted employees. However, this reason usually masks the real reason. The fact is no one likes rules which are impractical, and when top talents complain, they give a sign about how they felt about the rules they were told to follow solely. When no action takes place even after their response, talented people clear their accounts and leave the company.
- When Companies Don’t Find a Suitable Project: Big companies are generally occupied with big projects. Therefore, they do not have time to interact with their best people and asking them whether they are enjoying their current projects or want to work on projects which interest them. Sometimes HR people are also too busy to get into this. The bosses are also tapped out on time, and this becomes a “nice to have” conversation rather than “must have” conversation. So, give importance to “must have” conversation, otherwise get ready to say adios to some of your best people. Moreover, money and power do not drive top talent because they are passionate about the opportunity that will change the world and when big companies do not spend the time to figure out things with talented people, they lose them.
- Poor Annual Performance: There is a long list of companies which do not do an effective job at annual performance reviews. Although if they have time to review an employee’s annual performance, they send off quickly filled forms to HR which leaves an impression on employees’ mind that their boss and the company are not interested in their long-term future in the company. That is why talented people do not stay back in the company for a long span.
- When No Discussion Happens about Career Development: Most employees do not know what they will do in coming years. Research says only less than 5% people can tell you if you ask them. However, employees want to discuss their future with their bosses, but most bosses never get time to discuss their employees’ careers even they ignore the top talent. In actual it is a massive opportunity for organisations to retain their top-notch talent if they manage to arrange a “must have” discussion with their employees. Because the best clients always have separate annual discussions with their employees apart from their annual performance review meetings to discuss career development. So, if the best people know that organisations are searching a pace for them going forward, they will like to hang around.
- Shifting Whims: I applaud companies which try to build a “Brickhouse” around their talented employees by providing them with exciting projects. However, most organisations do not set up a strategic priority such as establishing an incubator which is disliked by top talent. They feel deceived. So, if organizations commit a project to the best people, they should assign it; otherwise, they would not be able to retain the top talent.
The above write-up gives an idea about the importance of keeping a top-notch talent in the company. So, if the large companies fail to follow the steps mentioned above strictly, they won’t be able to sustain in the market without facing a loss because reduce in turnover rate will affect company’s turnover. So, following the above reasons can help companies retain the best talent in the house which will help them gain name, fame, and success in the industry.