How Can Small Firms Prevent Large Firms from Stealing Their Talent?
Source: The CPA Journal
In response to the lure of higher pay from large firms, small firms can either raise compensation or develop other methods of retaining talent. The Hanke Group, in San Antonio, Texas, created a performance management system that incorporates its daily activities into its strategic plan. Employees know how their personal efforts affect the firm’s success. The system has four main goals:
- Motivation and retention.
- Less turnover.
- No surprises during performance appraisals.
- Enhanced skills.
The Hanke Group belongs to PKF North American Network, which provides a formal performance management program called performance and career excellence (PACE).
Hanke considers it a vital element in motivation and retention. The program focuses on the following competencies:
- Initiative.
- Influence.
- Conceptual thinking.
- Change orientation.
- Staff development.
- Teamwork.
- Relationship building.
- Communications.
- Results orientation.
- Technical excellence.
- Strategic thinking.
Performance evaluations deal with these skills. As employees grow, their expectations with respect to these competencies increase. Employees have mentors and supervisors who participate in assignments and appraisals. Each employee prepares an annual personal plan that includes specific goals, which is approved by the mentor and the supervisor. The plan is monitored quarterly by mentors.
Employees determine when they are ready to be promoted. The employee looks for a sponsor from the management team. A form is submitted to a group that includes the mentor, the manager of the employee’s business unit, the department head, and, depending on the level, the CEO. This permits employees to grow according to their own plans rather than according to predetermined tracks.
From The CPA Journal, A Publication of the New York State Society of CPAs, October 2007. For the complete article, click here, then select the article Managing Human Resources in a Small Firm.