Creating a Talent Management

Virtuous Spiral
Many people think that the interests of employees and those
of the company are not compatible. Yet this is wrong! In the
long term, neither party can succeed at the expense of the
other. Awareness of this reality is the first step toward creating
a virtuous spiral in a company that will take everyone to the
highest peaks.

What is a virtuous spiral?

The virtuous spiral concept
A virtuous spiral is a phenomenon that occurs when a company treats its employees appropriately. This means that
it does what it takes to attract, retain, motivate and help them succeed. This leads to the high performance of the
company. The company’s good results in turn provide more rewards to employees, increasing their involvement
and motivation, and making the employer more attractive. As a result, a virtuous spiral takes shape and grows,
pulling the company and its employees up.

Opposite of a death spiral

A company that makes no effort to treat its employees properly and create a virtuous spiral may end up in the
opposite situation, a death spiral. Death spirals occur when a company mistreats its employees, which causes
them to leave or to perform poorly and brings down its results. This further accentuates the decline and can lead,
in some cases, to the demise of the company.

3 good practices for initiating a virtuous spiral

Here are some tips on how to create a virtuous spiral:

Consider people your “human capital”

Considering employees as human capital means being aware that they are at least as important as your financial
capital, which is owned and may be bought, sold and traded. This is not the case for employees who make their own
decisions. Like financial capital, however, they must be treated with care, respect and dedication if the company
wants them to remain invested.

Celebrate success and rewards

It is important to celebrate successes and to give them visibility inside and outside the company. On the outside,
this will attract the best talent along with new customers who enjoy working with successful companies. Internally,
employees will enjoy belonging to a thriving company and contributing to its success. By communicating and
rewarding successful performance, companies help employees to replicate it and motivate them to reach higher
levels of performance.

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Seek continuous improvement
To maintain a virtuous spiral, organizations must continuously seek to achieve higher levels of performance. The
biggest mistake is to believe that you are the best and that current practices do not need to be challenged. A better
approach is to ask: “The results are good, but how can they be improved?” We must at all costs avoid being satisfied
with what we already have. It is also very important to ask for employees’ opinions on possible improvements and
to reward their input.

7 principles for treating people right

Here are 7 principles for treating employees properly and thus initiating and sustaining a virtuous spiral.

Attract and retain the right people

Organizations need to create and communicate value propositions that define the working environment they offer,
so they can attract and retain the right people and potential recruits.

Hire the right people

Organizations must hire people who fit with their values, have the core competencies they need and are able to
contribute to achieving their strategic goals.

Develop people the right way

Companies must continuously train their employees to fulfill their mission. They should offer them opportunities
for growth and development.

Design work the right way

Companies must design work so that it is challenging, rewarding and meaningful. They must give them feedback
and responsibilities, and help them become independent.

Establish the right goals

Companies should define their mission and ensure that everyone adheres to it. They should define strategies, goals
and values that employees understand, support and believe in.

Reward people the right way

Companies must devise and implement remuneration and reward systems that reinforce their designs, core values
and strategies.

Lead people the right way

Companies must hire and develop leaders who can generate commitment, trust and the desire to succeed among
their colleagues, by creating a motivating work environment.

The contents of this page are the property of CrossKnowledge.

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Any reproduction or representation for non-private use is strictly forbidden. 2