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When a company become dominant in a market, their real threats often are not competitors but mistakes they make. The better matched your people are to their jobs, the less of those there are. The financial industry didn't slide because the housing market collapsed; the housing market collapsed because someone put idiots into senior executive jobs. The blockbuster expose asserted that Microsoft had lost its creative mojo -- which it had failed to launch significant new products for almost a decade during which it has been repeatedly beaten in the market by its competitors. Many of the problems Microsoft has faced this decade go back to bad hiring and internal job placement decisions it made last decade.  It noted pointedly that every single former Microsoft employee interviewed for an article had blamed the company's problems on a Human Resources management practice known.

The problems come when a company's HR message is out of tune with reality; Employees quickly learn to distrust a company if they're consistently telling them they care about people when this is intrinsically not the case.

If you find the below policy at your organization be sure that company is going to crash:

No Promotion in the Company
Smart people are career oriented and don’t bother what the hell is going on in the company.  When learn there is no option for growing they start searching for new venture and move very soon.

Internal Replacement
When a smart people leave, internal candidate replace the position.  Cat takes the position of Tiger. Implicit cost for job is huge and often disaster.

Stacking - Insulting Performance Review Processes
If you give your managers a bell curve and tell them that only a certain percentage of employees can be rated top performers, another percentage average performers and so on, then you are literally designing mediocrity into your team. Is that what you want? Stack ranking is an abomination and the opposite of a leadership practice, since it pits employees against one another instead of encouraging collaboration.

Impenetrable Pay Structures
The real world is moving too fast for old-fashioned pay grades and bands, much less hidebound policies that red-circle or limits an employee’s ability to earn more money even when he or she is contributing massively to the organization’s success. I doubt that your CEO and his or her team get paid according to a chart on the wall in HR, so why should anybody else? Worse yet, many employers are anything but transparent when it comes to the topic of pay.

If an employee asks “What would I need to do get a decent pay raise?” and the answer is “Nothing you can do will get you more than a three-and-a-half-percent raise this year” expect your company to be a revolving door for talent — if you can get talented people to work for you at all.

Finally, a company's success is founded on the quality of its employees. If you don't assure and protect that quality, it doesn't matter how successful you were, your best years will always be behind you. Assuring the quality of employees should be job one if a company wants to be successful. Assuring a company find, hire, and can retain and protect the best people is a great foundation for sustaining a great company regardless of size.



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