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Proper Handling of the Also-Rans
In CHRO succession, keeping the also-rans happy can be tricky -- and can't be neglected. There are basically three types of people who don't get chosen for the top job, says Charles Tharp, president of the National Academy of Human Resources, based in New Canaan, Conn., and the former HR chief at Bristol-Myers Squibb. The first are those you believe could one day be a CHRO, but at the moment don't have the required knowledge or experience. "That's when you have the frank discussion about what they need," says Tharp. "Exposure to the board, working with the CEO, whatever it is. You say, 'Here's what you don't have, now let's make sure you get it.' " The second category "are the people who think they can get it, but you don't think they can," says Tharp. "That's when you sit down with them and say, 'I really like what you're doing, but if you want to be in charge of HR, it can't happen here.' It can either be a happy discussion or an ugly discussion, but you have to be honest with them. They can adjust their career sights or go to another company. If you want them to stay, you can pay them well and give them new things to do." The third type is the highly qualified candidate who loses out by a very narrow margin. "That's the person you want to give an expanded role to," and some kind of retention award, such as a stock award, says Tharp. "That's the person you want to stay, and you know people are going to be recruiting them like crazy. If they love the company, they'll stay if they can grow and make good money, but someone's going to be recruiting them every week." Bill Conaty, who retired last November as senior vice president of corporate human resources at General Electric, says he took several steps to make sure the unsuccessful top candidates for his job stayed with the company. "We tried to make it as interesting as we could and as attractive as we could," says Conaty, who was CHRO for 15 years at the Fairfield, Conn.-based company. All were give much more responsibility, he says. "They picked up a significant piece of the action that will give them additional exposure to the CEO office." In addition, Conaty and CEO Jeffrey Immelt made it clear to those who didn't get the top job how much they meant to the company -- and how much Conaty and Immelt hoped they would stay. "That has no financial value, but it has some psychic value and personal value," says Conaty. All of the unsuccessful candidates, he notes, are still with the company.
July 1, 2008 Copyright 2008© LRP Publications |
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