Boomers Won’t Retire; My HIPOs Are Antsy

Although the economy is slowly on the mend, it’s still noticeable that many employees near or past traditional retirement age have opted to stay working longer. Often, this is to bolster a nest egg that took a hit during the recession. Sometimes, it’s because they don’t feel the desire to leave the workforce just yet, and would rather be productive in a job. Some feel their job is what gives them status. Some are frightened by the prospect of retiring. No matter the reason, there are ripple effects throughout the organization.

Some ripple effects are good, like keeping their years of knowledge and talent in use in the company, or having a great employee to mentor others. Some have legacy system knowledge that can’t be replaced.

Other effects, however, can be challenging, like stagnating job growth opportunities for the employees lower on the ladder when there is little turnover above.

This can lead to frustrated employees who don’t feel appreciated when they’re not able to advance through the ranks. Obviously, an employer does not want to lose good employees in this situation. And, of course, it’s those high-potential (HIPO) employees who are most attractive to the competition.

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What can be done to keep employees engaged, even when there is little room for promotion?

How to Keep HIPO Employees Engaged

Fortunately for employers, there are strategies to cope with this situation and minimize turnover among HIPOs. Here are some to try:

• Formally adopt a HIPO program. Advising HIPO employees of their status is a form of recognition that can immediately reduce the risk of turnover. It lets employees feel appreciated.
• Increase responsibility. Just because a new position isn’t yet available doesn’t mean the employee can’t be preparing for it and even taking on some new responsibilities now. HIPO employees thrive with real responsibility for projects that have impact.
• Ensure exposure to upper-level management. Give the HIPO employees room to get their talents noticed beyond their immediate supervisor. This will give a greater sense of accomplishment and set the foundation for future advancement.

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• Give them plum assignments. Few things kill enthusiasm faster than boredom. Be sure that your high-potential employees have challenging and interesting work to keep them engaged and interested. Giving out run-of-the-mill assignments or projects will leave them wanting more challenge—increasing the likelihood they’ll look for more elsewhere.
• Listen to their individual needs. Don’t simply assume that every HIPO employee will have the same needs. Some organizations opt to move HIPO employees to new divisions frequently—often necessitating moving to a new location or even new country —as a way to cross-train and keep them motivated. But be careful with strategies like this. Some employees may be frustrated by having to uproot their lives and see this as a detractor rather than a benefit. The point of this example is that not every HIPO employee has the same needs and goals. Get their input along the way when developing career progression paths.

In tomorrow’s Advisor, more tips, plus an introduction to the guide especially geared toward “Lone Ranger” HR managers—HR Department of One.