Managing Average Employees

The talent distribution in most businesses works something like this: 10 per cent of the staff are high-potential performers, another 10 per cent are underperformers and roughly 80 per cent fall somewhere in between. In well-managed businesses, there are clear feedback mechanisms to ensure that the bottom of the talent pack gets managed out efficiently. And these companies are just as focused on the top end of their talent pool, providing mentors to groom their next-generation leaders.

The challenge lies in productively managing talent’s fat middle. What is the right people strategy for the average employee – the stalwart who’s performing well enough, but isn’t a standout? Here are a few of the challenges executives face when dealing with mediocre talent:

— Average employees get lost in the mix because they lack appropriate guidance and attention. This keeps managers from understanding who has the real potential to move up the talent curve.

— They can be a drag on already high-performing staff. The more mediocre talent you have, the more likely it is that these employees will create retention and motivation issues for your high performers.

So what should business builders do to better manage their talent base? Two simple ideas can help:

— Conducting regular performance reviews is critical. But it’s equally important to make sure that the person doing the review is capable and respected. Senior executives responsible for managing the middle talent pool should also be managed on their own ability to cultivate the very best of that pool.

— At regular intervals throughout a person’s career, there should be what I call a ''fit test point.'' A fit test is a tool that allows leaders to carefully consider the best interests of each employee. Many of us have been in situations where instinct and experience told us that a job wasn’t the best fit for a particular employee. Yet we let that person continue on because he filled a short-term need or because we lacked the courage to have an honest conversation. It’s important to consider the key inflection points in your employees’ careers and to make these issues part of each performance review.

As business leaders we need to realise the full potential of each employee, as well as help those who aren’t right for the business find other jobs where they can be more productive.

(Anthony K. Tjan is CEO, managing partner and founder of the venture capital firm Cue Ball.)

© 2011 Harvard Business Publishing