Penna Consulting : Keeping hold of your competitive advantage

Competitive advantage, it's what drives ongoing business success and is the goal all organisations are striving for. And there's certainly no shortage of management articles giving insight into how to create it, and importantly, maintain it once you've achieved it. Regardless of how it manifests itself: excellent customer service, innovative products, cutting edge technology or efficient processes, the real source of competitive advantage comes from the people we employ - the idea creators and implementers that help brands outperform others.

It therefore goes without saying that retaining and engaging, as well as being able to attract talented employees in the first place, is a fundamental component of ongoing business success. Yet our recent research into career development, an undisputed driver of employee retention and engagement, suggests that companies are failing in this area. When asked to rate how satisfied they were with the current level of career development support received, employees gave a measly 5 out of 10, with over two-thirds (66%) going on to say that a lack of career development would cause them to start looking for a new job.

Why is this important? Whilst salary will always be high on the list of reasons for changing roles, increasingly employees want to know how companies can support the overall development of their career. And with the employment market now weighted firmly in favour of the employee - those who find themselves dissatisfied are likely to vote with their feet.

This is where the role of the line manager and career conversations comes into focus. Serving a dual purpose, career conversations are one of the most important engagement tools an organisation has at its disposal. Taking time to understand employees' long-term career prospects and how they may be able to achieve them within the organisation visibly demonstrates to employees that they are valued, fostering greater levels of engagement as a result. They also emphasise the need for employees to be in the driving seat of their career development - as opposed to expecting the organisation to gift them opportunities. And by developing this proactive 'career activist' mindset employees will ultimately increase their overall employability by actively seeking ways to continually develop skills which will benefit both them and their employer.

However, the same research suggests that employees are less than impressed by the way their managers approach career conversations. Many felt that their managers did not put sufficient time aside to discuss their development, or when they did, that they lacked the skills to do so - only 50% of those surveyed felt that their managers 'listened' during these conversations. Interestingly, managers too appear to recognize that perhaps they do not have the requisite skills to effectively hold these conversations, with only 37% suggesting that their employers provide training, and an even lower percentage feeling confident in discussing more difficult topics often associated with career development (including development needs).

The difference between a great career conversation and a poor one comes down to confidence, competence and commitment. Companies that recognize the importance of career development don't leave to chance. It's in their DNA. They invest in their managers to ensure they not only understand the importance of career development, but are skilled in holding these conversations - even the difficult ones - with employees. Managers take time to reflect on individual team members, preparing before any meeting by identifying potential opportunities for growth, and importantly, have a range of techniques at their disposal to encourage their direct reports to lead the conversation, resulting in a greater sense of satisfaction on the employee's part, and a feeling of empowerment around how they can achieve growth within the organisation.

There will always be instances where employees choose to leave to further their careers, and indeed an element of natural attrition in itself is no bad thing, bringing new ideas and perspectives. However, don't let dissatisfaction with the opportunities to talk about their ambitions be the reason why your competitive advantage walks out the door.