Smart Strategies for Developing People Equity
Employee engagement alone does not create great companies. William Schiemann believes it is only one piece of the talent management puzzle. In Reinventing Talent Management, he explains that businesses also need strong employee alignment and capabilities to enhance their employees’ engagement. This is the way they build superior performance. Throughout Reinventing Talent Management, Schiemann offers human resources people — and all managers — a “People Equity” framework they can use to locate, grow and keep the best people while building teams that serve their customers better.
Schiemann and his researchers at the Metrus Group, a leading organizational research and advisory firm, have created a useful human resources model that can help companies in all industries measure and improve the alignment, capabilities and engagement (ACE) of their people. This ACE tool, which tests, scores and charts each of those three vital elements of employee management, can be used to form the backbone of an organization’s employee management strategy. By showing companies how to measure ACE scores and then improve them through regular development and monitoring, Schiemann helps them keep their employees engaged, aligned and capable through each stage of the talent management process.
Schiemann writes that alignment can be broken down into three critical elements: strategy and goal alignment, values alignment and customer alignment. Since organizational performance and success is built on these important elements, Schiemann describes multiple ways companies can tap into the power of measuring and improving each of them.
Employee capabilities make up the second factor in the People Equity equation. These are built on the skills, technology and processes that help employees deliver great products and quality services to a firm’s customers. Schiemann explains that these capabilities correlate more directly to customer outcomes than either employee engagement or employee alignment.
Without high capabilities, employees will have a hard time satisfying the organization’s customers or getting the customer referrals that are vital to the company’s growth. By properly developing three factors — sufficient talent, information and resources to meet customer expectations — a company can improve its employees’ capabilities.
While both alignment and capabilities are crucial to a firm’s success, engagement still remains a vital factor in the People Equity equation. Schiemann writes that engagement is more than loyalty to the job. He explains that it also includes, “the level of advocacy on the part of employees for their organizations as great places to work, purchase from and even invest in.”
When employee alignment, capabilities and engagement are properly combined, the People Equity they create leads to teams of people who work at peak performance while remaining personally fulfilled.
By guiding organizations through the steps that lead to People Equity, Schiemann creates a human resources management model that all companies can use to improve their work, operate more effectively and reach the tops of their industries through better financial performance.