‍Why it's difficult to fully utilize talent

To fully utilize talent, you want people to do what they're good at and enjoy. However, the direct link between recognition, reward, and promotion often creates an obstacle. Even if employees can excel in their current role, promotion remains attractive due to the status and higher salary associated with it. Furthermore, vertical promotion structures present a natural limitation. In an organizational pyramid, there is only room for a small group of leaders at the top. This can lead to talented employees feeling stuck or leaving the organization due to a lack of advancement opportunities. Leadership coach Katharina Kohlmayr, a consultant at Profile Dynamics, emphasizes that it is essential to decouple promotion, status, and salary. Horizontal promotion structures offer a solution: specialists can be financially rewarded for their expertise without being pushed into a management role. However, this requires a thorough revision of job frameworks and compensation structures.

How it can be done differently

In knowledge-intensive sectors, horizontal promotion has been applied for decades. Companies like IBM and Microsoft encountered the problem that not every brilliant programmer wanted to advance to a management position, but there was a need for development within their roles. These companies created technical career paths with opportunities to develop into roles such as 'Senior Developer' or 'Principal Engineer', focusing on technical skills and contributions to strategic projects. These positions came with a higher salary. According to Tim Joosten, CEO of Jegro, a producer of educational materials, organizations on average only utilize 40% of their employees' potential. His solution? Horizontal rewarding! By enabling employees to grow horizontally. According to Joosten, organizations can thus better develop internal talent, reducing the need to attract external talent. Especially in times of a tight labor market, this is a more efficient and often cost-effective solution. Joosten proved it works by transforming the struggling Jegro into a successful business with the same people.

New structures for recognition

More and more companies are similarly seeking solutions to staff shortages caused by the tight labor market. Consultants like Gino Valente, HR manager for the Rotterdam Rijnmond safety region, therefore advocate for ways to better align roles with employee needs and skills, such as job crafting and job rotation. With job crafting, employees are given more room to adapt their tasks and work environment to their talents and motivations. Job rotation offers employees the opportunity to get to know different aspects of the organization. To create the optimal match between person and role, a clear insight into the employee's personality is essential. As a Profile Dynamics consultant, he recognizes the added value of insight into motivations, which can improve that match.  

Motivating young talent

An organization that allows talent to grow horizontally not only creates satisfied employees but also becomes more attractive to new talent. Young professionals, in particular, value meaningful work, personal development, and a healthy work-life balance, and prefer organizations that recognize their specialized skills. By facilitating horizontal promotion, organizations can thus achieve a double benefit: they remain relevant in a dynamic labor market and prevent employees from feeling stuck. This ensures a broader group of employees is recognized and rewarded for their valuable contributions, benefiting both their motivation and the organization's performance. A work environment where talent is optimally utilized and valued is the key to lasting motivation and success.