HBR On Strategy: Strategies for Managing Talent Amid Uncertainty and Competition

Episode Release Date: January 8, 2025

Introduction

In the latest episode of HBR On Strategy, hosted by Harvard Business Review's Justin Fox, entrepreneurs and co-authors Ben Kasnoca and Chris Yeh delve into the evolving dynamics of the employer-employee relationship. Drawing insights from their book, The Startup of You, and their HBR article, "The New Employer Employee Compact," Kasnoca and Yeh offer a transformative framework for managing talent in today's volatile and competitive business landscape.

1. The Shift in Employer-Employee Relationships

Time Stamp: [00:48]

Justin Fox introduces the fundamental premise of the episode: the traditional employer-employee relationship, rooted in long-term loyalty and stability, has significantly transformed over the past few decades. Ben Kasnoca elaborates on this shift:

“The old Employer Employee Compact was primarily characterized by stability, by predictability... It has actually been the backbone of the American dream... but that's all come undone in the last decade or two.”
— Ben Kasnoca [02:52]

2. From Stability to Alliances: The New Compact

Time Stamp: [05:04]

Chris Yeh underscores the necessity of evolving from a loyalty-based model to one of mutual alliances:

“Instead of a concept of loyalty, it's a concept of alliance, where you have two different parties entering into a mutually beneficial relationship.”
— Chris Yeh [05:04]

This new paradigm acknowledges that long-term stability is no longer feasible due to globalization and increased competition. Instead, both employers and employees engage in dynamic partnerships that offer value during their collaboration and beyond.

3. Embracing Entrepreneurial Strategies in Career Management

Time Stamp: [06:49]

Kasnoca connects the behaviors of startup entrepreneurs to effective career management in any industry:

“Startup entrepreneurs... have developed a playbook... These strategies... are pretty universal and... necessary for every individual professional to know in order to have a successful career.”
— Ben Kasnoca [06:49]

He observes a growing trend of employees adopting entrepreneurial mindsets within organizations, seeking to invest in themselves, adapt, and pursue opportunities proactively.

4. Strategies for Managers to Adapt

Time Stamp: [07:12]

Addressing managerial concerns, Kasnoca and Yeh propose actionable strategies to foster the new employer-employee alliance:

• Tour of Duty:

  Time Stamp: [12:27]

  Yeh clarifies misconceptions about the "tour of duty" concept:

  “The tour of duty is the unit of the relationship. That's not to say that you can't sign an employee up for future tours of duty.”
  — Chris Yeh [15:26]

  This approach redefines employment as a series of finite, mutually beneficial engagements, aligning with employees' desires for career mobility without increasing turnover fears.

• Building External Networks:

  Time Stamp: [12:38]

  Yeh emphasizes the importance of encouraging employees to cultivate external professional networks:

  “The extended network of an employee... is one of the key things that a company has to encourage.”
  — Chris Yeh [12:38]

  By supporting attendance at conferences, networking events, and cross-company collaborations, employers can tap into external intelligence that fuels innovation.

• Formal Alumni Networks:

  Time Stamp: [12:38]

  Establishing structured alumni networks maintains lifelong relationships with former employees, facilitating ongoing knowledge exchange and collaboration.

5. Overcoming Managerial Concerns

Time Stamp: [15:15]

Kasnoca addresses common reservations managers have regarding the new strategies:

“There are still a remarkable number of companies that have this vague notion that an employee serves at their pleasure... and they haven't yet gotten their arms around the fact that talented people today want to be more mobile.”
— Ben Kasnoca [15:15]

He argues that embracing these principles not only aligns with employees' career aspirations but also enhances the organization's adaptability and innovative capacity.

6. Silicon Valley vs. Boston: A Paradigm of Openness

Time Stamp: [18:53]

Yeh contrasts the collaborative ecosystem of Silicon Valley with the more insular approach historically seen in Boston's tech industry:

“In Silicon Valley, you have companies that are constantly working with each other and competing with each other at the same time... this incredible ecosystem... drives a much greater awareness and a much more rapid diffusion of ideas.”
— Chris Yeh [19:03]

He attributes Silicon Valley's success to its openness and the seamless exchange of ideas among companies, fostering a robust collective intelligence that propels the entire industry forward.

Kasnoca adds:

“If they encourage their employees to go out and engage in their ecosystems... that will benefit your company in a very meaningful way.”
— Ben Kasnoca [20:23]

By fostering an environment where employees are active participants in broader professional communities, companies can harness external insights and innovations.

7. Conclusion and Final Insights

Time Stamp: [21:03]

As the conversation wraps up, both Kasnoca and Yeh reiterate the significance of adopting the new employer-employee compact. Embracing tours of duty, encouraging external networking, and maintaining alumni relationships are not just defensive measures but strategic initiatives that drive organizational resilience and innovation.

Notable Takeaways:

• Adaptability is Crucial: In a world marked by rapid change and uncertainty, both employers and employees must remain flexible and proactive in managing their careers and organizational roles.

• Mutual Benefit Through Alliances: Shifting from long-term loyalty to mutually beneficial alliances fosters a dynamic and innovative workforce.

• Networking Drives Innovation: Encouraging employees to build and engage with external networks enhances the organization's collective intelligence and adaptability.

• Ecosystem Thinking: Emulating Silicon Valley's open and collaborative ecosystem can significantly boost a company's innovative capabilities and industry standing.

Final Quote:

“The only way you can have innovation is by having innovative people. The only way you can have innovative people is by presenting them with a different way of working together.”
— Chris Yeh [10:26]

For Further Learning:

To explore more strategies on business management and innovation, follow HBR On Strategy on Apple Podcasts, Spotify, or your preferred podcast platform. Engage with additional content, including articles, case studies, and expert interviews, at hbr.org.