Assignment of Benefits—A Moral Hazard! But, Fehr and Laub are just the proverbial tip of the iceberg!
Experts recommend creating in-house leadership development programs that single out so-called high-potential employees and put them through multi-year programs, including mentorships, management classes, stretch assignments and coaching.
The goal is to elevate candidates above a single function and give them a broader vision of the company. Rotate people through different jobs.
You want to give participants first-hand experience in many different roles throughout your company. Challenge them with unfamiliar jobs. Stretch assignments are growth-oriented exercises with some inherent risk.
Even failure offers valuable lessons that can add new skills, improve confidence and solidify employee commitment. Typically, employees are paired with more senior employees at their company, though some programs match employees with mentors at other firms. Create clear guidelines for the relationship.
When partners meet for the first time, they should determine the mechanics of their relationship — when will they meet, how often, and how will they communicate outside those meetings. Partners should get to know each other before tackling specific issues.
Spending time discussing work styles, personalities and backgrounds builds trust that will pay off later. Ensure participants get frequent feedback and coaching.
You want them to stretch but not break, so make sure they have adequate support in new assignments. Frequent evaluations will help you catch and address problems early on. Allow participants to wash out.
Not every candidate will have what it takes to be a good leader. Restock the program as needed and go outside the company if necessary to seed the program. Have senior members of the program tutor new candidates.The Definition of Insanity How a federal agency (SAMHSA) undermines treatment for the mentally ill.
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