By Edwards A. Holliday and Renato T. Sciacqua

According to a year-long study conducted by McKinsey & Co. involving 77 companies and nearly 6,000 managers, the most important corporate resource over the next 20 years will be talent: smart, sophisticated businesspeople who are technologically literate, globally astute, and operationally agile. The search for the best and the brightest will become a constant and costly battle. In the new economy competition is global, capital is abundant, ideas are developed quickly and people are willing to change jobs often. Not only will companies have to devise more imaginative hiring practices, they will also have to work harder to develop and keep their best people.

At a recent Greater Baltimore Committee "Breakfast Briefing" regional experts shared strategies about employee recruitment and retention, they included Larry Holmes, founding partner of Columbia Consulting Group, Edward Betof, senior vice president of human resources worldwide of Becton Dickinson Bioscience Systems and lead author of Just Promoted! and Bill Boden, president of HR Executive Inc., formerly vice president of human resources of The Rouse Company.

What are the key considerations of executives -- why are they willing to move? Holmes: Family consideration comes first; if the family doesn't want to be uprooted, money won't make that executive move. Second is greater responsibility and authority; and third is compensation. Remember that people go where they're wanted and stay where they're appreciated. Tell your employees that you love them, you appreciate them and that you need them. If you have plans for their advancement, tell them. If the employee says, "I'm leaving," and you react with, "Oh, by the way, we have plans for you, you've done them a disservice." Compensate them well because if you don't pay them, somebody else will.

What can be done to keep high-value/intellectual talent from leaving?
Boden: Find out why employees are staying. Do you conduct exit interviews when an employee is leaving? Most companies do. Do you conduct retention interviews with employees who choose to stay to find out why they're staying? Most companies don't. From my experience, most people stay because they like their jobs, not because of the money or the benefits. Also, question if your company is giving employees of all ages and levels the opportunity to interact and develop relationships with the senior members of your firm. I believe that employees want to be known on a first name basis and to have a senior person consider their family when thinking about what's going on with them -- that's being "family friendly."

What are the trends and methods of locating talent?
Holmes: For internal recruiting employers can use referrals, networks, advertising in trade publications, associations, job fairs, college recruiting, and the Internet. For external recruiting many rely upon retained executive search for the $100,000+positions and traditional contingency placement for the $99,000 and lower levels. Retained search methods are primarily relationship-based, while contingency methods rely heavily on advertising and other resume solicitation techniques. A new category of search, called "Executive Appointment," uses advertising to targets $60,000-$100,000 level employees. Widely used in Europe for some time, it is now being marketed in America, evidenced in recruitment ads in the Tuesday edition of the Wall Street Journal.

How can the turnover of newly appointed leaders be reduced?
Betof: From my 12 years of research all across North America, especially for the book Just Promoted! (McGraw-Hill, 1992), I've found the "newly appointed leader dilemma". The expectation for results of new leaders is the highest that it has ever been, but the organizational patience from people to achieve those results is at its lowest. Ten to 15 years ago the honeymoon period was typically six to 12 months. Today it's almost non-existent; you're hired and you have to get started. To help, we are now using coaching and business planning techniques, such as confirming appointment charters, conducting comprehensive stakeholder analysis, and developing six-month road maps for success.

What can be done to reduce turnover at all levels?
Betof: First, help a new associate feel welcome in the organization. When that person arrives at their workstation they need to know that somebody has been thinking about them. From day one you want your associates to feel able, responsible and valuable. There is a direct correlation between feeling included, sensing an organizational fit, and getting a fast productivity start. This helps to accelerate the learning process of senior-level executives and entry-level associates.

Edwards A. Holliday is Principal of Maryland Leadership Group. As a member of the GBC he is responsible for cataloging and evaluating speakers for the SpeakersNet. Contact: edwardsaholliday@erols.com

Renato T. Sciacqua is Principal of Tilton-Steele International. As a member of the GBC he is responsible for overseeing the operation of the SpeakersNet. Contact: renatost@t-si.com

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