Starting a business as a founder/CEO, the most challenging aspect is working with people. We can predict that we will continue to struggle if we fail to properly assess our team.
In the West, they have advanced to ‘Talent Management,’ or what some call a ‘renowned training ground,’ to cultivate future leaders and nurture new talent aligned with their growth stages.
Talent doesn’t just appear; we must actively create it.
Impressive resumes and skills don’t necessarily guarantee a good fit for your company.
Founders, known for their strong personalities, are encouraged by Lucas (presumably a business leader or consultant) to focus on developing talent internally, aiming for a 70/30 ratio of internal development to external recruitment.
However, in our country, we primarily focus on immediate concerns like recruitment and compensation & benefits.
Other crucial aspects, such as long-term talent development, often take a backseat in companies heavily focused on immediate needs like salaries and benefits.
But if we continue to follow this fragmented approach, we will fail to address the root issue: building a sustainable human resource system for our company or empire in the next 5-10 years.
Here are some observable phenomena:
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Current stability doesn’t guarantee future growth.
- For example, if long-term employees are overpaid for their current roles, reducing their salaries to align with their career progression may lead to resistance.
- Maintaining these inflated salaries can create internal conflicts and inequities, undermining the efforts of founders in recruitment and training. New employees may feel unfairly treated compared to long-serving colleagues, while existing employees may feel undervalued.
- The key is to accurately measure the value contribution of each individual.
- Long tenure doesn’t automatically equate to greater value, nor does recent hiring imply lesser value.
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Initial screening in recruitment may not fully reveal the unique value proposition of your company’s environment.
- Many employees may not be able to fully contribute to your company’s success.
- For instance, if the job posting itself is poorly written, the resulting applicant pool will likely be subpar.
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In SMEs, if the founder doesn’t directly engage in marketing and company branding, no one can effectively replace them in attracting top talent.
- This leads to increased salary costs without a corresponding increase in employee quality, as the company struggles to attract and retain high-performing individuals.
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Fresh graduates with limited work experience may lack the ability to accurately assess their own value and the quality of job opportunities.
- Startups often rely on recent graduates, but these individuals may not be able to critically evaluate job offers and may be susceptible to unrealistic expectations.
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Most employees are at the operational or team leader level.
- They require significant guidance, support, and hands-on training from their managers.
- Proactive and independent work within the scope of their roles in small and medium-sized companies is not common among most employees.
- This suggests the need for employee stock ownership plans (ESOPs) to incentivize and retain high-potential individuals who contribute significantly to the company’s long-term success.
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Most companies have not effectively built a strong employer brand.
- An employer brand should attract talent beyond monetary incentives.
- Relying solely on competitive salaries to attract talent indicates a lack of compelling value proposition within the company’s work environment.
- If employees are primarily motivated by salary, they are likely to leave for higher offers, leaving the company with a revolving door of talent and attracting individuals primarily seeking convenience and stability rather than a fulfilling career.
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Hiring managers, often overloaded with work, may not always be the best individuals to conduct the recruitment process.
- This can lead to subpar hiring decisions and increased costs associated with managing underperforming employees.
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The company lacks a clear roadmap for talent development.
- While employees may be driven by ideals and aspirations, their commitment is ultimately influenced by the value they derive from the work environment.
- SMEs with limited budgets must prioritize providing valuable learning opportunities beyond monetary compensation.
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Similar to how the government evaluates its performance in serving the people, companies must also measure employee engagement and satisfaction.
- Without such metrics, it becomes difficult to identify and address the reasons for employee attrition.
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Invest in training and developing individuals with exceptional talent and potential while aligning their career paths with the company’s growth trajectory.
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Conduct professional and respectful separations, acknowledging past contributions while acknowledging areas for improvement.
- This helps maintain a positive employer brand and fosters a culture of respect.
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Ensure that the company provides value to employees, as the relationship should be mutually beneficial.
- Founders who give excessively may become disillusioned with the returns on their investment, while those who offer too little may only attract short-term, low-quality talent.
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Even with the desire to offer competitive salaries, founders may lack a clear understanding of how to accurately measure employee value.
- This creates a disconnect between the employer’s expectations and the employee’s perceived value.
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Avoid placing unrealistic expectations on employees.
- Don’t expect them to assume roles beyond their current level or responsibilities.
- This can lead to resentment and disengagement.
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Implement management systems that align with the company’s size, the cultural context, and the motivations of Vietnamese employees.
- Expectations must be realistic and aligned with the employee’s role and experience level.
- For example, junior-level employees require clear guidance and supervision, while senior leaders should focus on strategic direction and organizational structure.
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Utilize balanced scorecards (BSC) and key performance indicators (KPIs) to measure the achievement of strategic goals.
- This provides a framework for evaluating performance and determining appropriate compensation and promotions.
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Maintain financial discipline through meticulous budgeting and expense control.
- Uncontrolled spending can lead to unsustainable practices and hinder long-term growth.
There are numerous other challenges that require careful consideration and addressal. This is just a starting point for a deeper discussion and analysis.