Protectionism in a competitive marketplace

Protectionism is designed to discourage others from competing for your talent or resources. Barriers are put in place to keep markets, company, or department restricted from outside forces. People try to artificially maintain or mandate the status quo, because it is a beneficial, but questionable policy.

Insecure organizations who are afraid to lose top talent will institute external mean to keep their people, which may deny their people freedom, benefits and promotional opportunities.

Protectionism is a preemptive strike aimed at discouraging others from hiring or tampering with your personnel. Countries try to control their markets by setting up impediments to prevent others from fairly competing with their industries and companies.

Protectionism is at work inside organizations. A regional manager was constantly near the top of the organization in sales. He experienced very little turnover in his sales organization, through promotions or resignations. Many in the organization were puzzled to learn that stellar results were not accompanied by promotions. Conversations with the regional manager revealed that the top performers, in his estimation, were somehow flawed and not ready to receive more responsibility. This manager’s protectionism policies were personally beneficial, yet detrimental to the career growth of many hard-working employees. He did not want to go through interviewing to replace them and training a new crew. Careers were inhibited because he had labeled them as insufficient to assume greater responsibility.

A successful sales representative accepted a promotion to the human resources department. She wanted to return to the field as a manager. After several years, she had lunch with a sales manager. He lamented the fact that she wanted to stay in HR. She was shocked at his opinion and asked why he felt she did not want to return to the sales force. He said he had been told by an HR director that she was happy with her new career path and it did not want to leave. Needless to say, she was stunned by the misinformation and the inaccurate portrayal of her career objectives. The protectionist policies of her department backfired and she subsequently resumed her sales career.

Protectionism leads to the creation of policies to restrict the penetration of their borders by competing companies. One company raided another company and hired some of their best sales people, when they started a new division. The losing CEO was angry by their practice. He instructed his lawyers to write a letter to the company stating his displeasure and threatened legal action. The response he received was carefully worded. The acquiring CEO defended his hiring practices. He asked the other CEO to see his actions as the risk of doing business. He suggested the people were leaving on their own volition. If the people were happy they would not have been so anxious to leave. Needless to say, the other company continued to hire his representatives, but at a slower pace.

People will gravitate to top talent. In the era of social media, networking events, savvy recruiters and employee referral fees, the best performers will be identified. There is an incentive to keep people happy and there is an incentive to recruit them to other organizations.

The hiring CEO delivered a very powerful message. What can be done to minimize employee’s propensity to jump ship? What can be done to the culture to make them want to stay with your organization longer term?

Organizations can change managerial mindsets to mandate mutual benefits for all parties involved. This philosophical shift is initiated and enforced by senior leadership. Intuitively, it is difficult to pour a lot of effort and time into someone, only to see them walk away to a perceived better opportunity. As stated earlier, there are risks involved in developing people. At some point, you will have more people than you have promotable positions. This may cause some people to be patient and wait for better jobs internally; however others may be impatient and look for greener pastures outside of the organization. You have to chalk this up to the price of doing business and wish them well.

There are tremendous advantages short and long term for a full scale long term development program. This may ultimately lead to future business alliances and collaborations with companies who have hired your people. It may also be a recruiting tool for prospective employees. A reputation for hiring and developing talent can lead to an influx of extraordinarily qualified candidates. Higher employee engagement levels and productivity is currently seen as a positive benefit of a stronger culture.

If you constantly assess and provide opportunities for personal and career growth, you minimize employee flight. Today, Millennials are subject to career impatience, if you do not sufficiently reward and challenge them, your organization will constantly be under pressure due to rapid turnover.

Sensors can be put in place in the form of stronger leaders and mentors to assess and regulate career development. Employees will gain an up-to-date, real world view of their skills and abilities and prospects for career development. Organizations have established career academies, equipped with resources, such as class room work and online training programs to help employees can grow their technical and life skills.

Protectionism in theory is about holding on to your talent against unfair pilferage, but it will work against you in the long run. You must update your training and development practices to create stronger leaders. Additionally, you must:

  • Pay attention to the company culture to treat people with respect and harness their skills and abilities.
  • Provide an honest assessment of performance through clear cut performance objectives and regular evaluations
  • Career discussions should be held to understand and to share employer and employee expectations
  • Develop confidence in your training and development program to rapidly replace people who leave the organization or leave the team
  • Strong managers and leaders are necessary to ward off protectionist tendencies, as they strive to develop the best teams imaginable

Organizations have been known to offer retention bonuses during a time of uncertainty, such as during mergers and acquisition, to keep their top talent. A variation of this practice is to ensure that the best performers receive the best rewards, whether financial, special projects or greater career opportunities.

Protectionism is usually a policy instituted when an organization fails to put a coherent people strategy in place. In their haste to prevent people from leaving, they  blame outside forces for problems in their culture. Protectionism practices that strikeout at the employee or toward outside forces are rarely successful. Organizations should look internally at their leadership practices and career development strategies, to see if they can be more conducive to creating a culture where leaving the organization is to difficult for an employee to imagine or implement.

Copyright © 2014 Orlando Ceaser 

Free e-book, Leadership Greatness through High Performance Poetry at http://www.orlandoceaser.com

2 thoughts on “Protectionism in a competitive marketplace

  1. Hi there! I realize this is somewhat off-topic however
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    Like

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