Talent Matters

I have had the opportunity to visit and work with distributors for over 25 years – I may have met some of you at industry conferences and tradeshows. Last year, throughout our industry, sales and growth were major topics of discussion, in addition to technology and talent. We’ve seen that customer expectations have increased, and margins are being squeezed. To be successful, distributors must add value beyond the box. They should move from a product and price focus to emphasizing relationship and customer experience. Distributors should become trusted advisors.

However, to provide the required services and experiences for growth in 2025 and beyond, you need a talented workforce. Your people are your growth engine, and the speed at which you can grow depends on your people. Growth happens when you align business priorities with talent plans. Your strategy is only a plan on paper. People are vital to executing those strategies and achieving growth. While there is an urgent focus on recruitment, distributors need to develop longer-term talent strategies and processes to recruit, develop, manage, and retain talent because growth hinges on people.

Here’s a checklist to work on this year – and even small improvements in a few areas can, over time, make you a talent magnet and fuel your growth engine.

1) Make HR Part of Your Strategic Plan. For too long, HR has been a support function, understaffed and underappreciated. If you want to win with talent, provide HR a seat at the strategic planning table. HR should also lead learning and development and employee engagement, while partnering with marketing, IT, and management to elevate the employee experience. Think ahead: Recalibrate talent strategy to keep pace with business strategy.

2) Become a Talent Magnet. The labor market is going to get even tighter for the next decade. To stand out, improve your recruiting message and refine your “employee value proposition” (EVP) – that reasons someone should want to work for you. Craft your EVP with the input of long-term employees, as well as your history, culture, and employee development. And become an expert in the needs and wants of next-generation talent. Gen-Z wants meaningful work, a good culture/fit, clear career path, learning and development, and recognition and appreciation. Communicate your EVP on your website, recruiting materials, and social media, and make sure your recruiters, hiring managers, and leaders all use the consistent EVP message when talking to prospective candidates.

3) Develop Front-Line Managers. The single most important decision companies make is simply the managers they hire. Bad managers cost businesses billions of dollars each year (Gallup). Employees join companies, but they leave a bad manager. Gen-Z is not afraid to walk away. Develop your front-line managers with robust onboarding and continuous coaching. The role of managers is to build the team, give direction, define performance standards, and solve problems. Educate your front-line managers to develop empathy, provide constructive feedback, empower their team, and develop a culture of accountability. Great leaders build trust, model behavior, and communicate often.

4) Elevate Your Culture. Great culture has emerged as one of the requirements for attracting and retaining top talent. Creating a strong culture is not easy or quick. Culture is built on relationships, fairness, respect and trust. But remember: Your culture will be defined by the worst behavior you tolerate. A good place to start a great culture is to build psychological safety, where employees can voice their opinions, take risks, and discuss failures without fear of punishment or humiliation. Another great tool: Promote from within and develop career paths inside your company. Young talent is also interested in your community and social engagement activities. Remember to highlight your culture and engagement on social media.

5) Get Serious About Talent Retention. Retention is just as important as hiring. Distributors can improve retention by implementing career paths, succession planning, internal promotions, and employee appreciation. Front-line managers play a critical role in employee relationships, productivity, satisfaction, and morale. Also, conduct pay equity and benchmarking to ensure your total rewards are in line with or better than the marketplace. Use exit interviews of top talent to identify areas for improvement.

You need top talent to succeed. If you don’t have players, you don’t have a team. Remember, your people are your growth engine.