Companies face up to the technical brain drain challenge

In 2011, Rackspace, the US-based cloud-computing company, spotted an unwelcome trend in its own data. Al­though it was receiving more ap­plications for IT jobs from good graduates than it had positions to fill, it was fighting a losing battle to hold on to technical staff who had valuable experience that it did not wish to lose.

The people leaving, typically in their mid-30s and 40s, had not stop­ped liking their work. But they were asking themselves “what next?” and they did not like the answer.

“Although we were giving our top [technical] talent the opportunity to progress by becoming managers, often they didn’t want to take it, or, when they did, they didn’t enjoy it,” says Tiffany Lathe, who oversees international HR from the UK.

The conundrum of how to develop expert employees who hit a mid-career plateau is not unique to Rackspace. Organisations that depend on specialists for designing products, resolving problems for clients or keeping operations running do not want to lose expertise they have nurtured, whether that is a scientist or a skilled sales executive.

For many organisations, the answer is to put the individuals concerned in a management role, simply because it is the only way to advance their career. Simon Cooper, a partner at The Chemistry Group, an HR consultancy, says he sees this problem often.

He cites an engineer-turned-manager who had such a dilemma: “To be seen to succeed and earn more money, he felt he had to become a manager. But he ended up miserable in a job at which he just wasn’t very good because managing people wasn’t what interested him.”

Opportunities to lead

One approach to averting mid-career departures is to create opportunities for specialists to join the organisation’s leadership but without also managing large teams.

To stem its own brain drain, Rackspace created a “technical career track” for selected employees in all markets, which comprises three levels, culminating in “fellow”. Although the so-called TCT is still in its early days — the first fellow has yet to be appointed — Phil Williams, who designs data storage systems in the UK, says joining it has answered the question of “what next?”

“I now know it’s possible to lead by using my knowledge to push what we can do for customers, rather than by managing people,” he says.

By anchoring the remuneration of its top technologists to that of its general managers, Rackspace aims to put the two groups on a par. Its fellows will be paid in line with senior executives and they may eventually sit on the board.

Generally, however, being styled as “fellow”or “eminent engineer” can become devalued if it seems merely a courtesy title. Such was the fate of a 1990s scheme that conferred the title of Distinguished Engineer on top technologists at computer company ICL, now part of Fujitsu.

Although popular, it became “a bit of an old boy’s network where [receiving the distinction] dep­end­ed more on who you knew than what you were capable of”, says Rachel Rose, head of talent management at Fujitsu UK and Ireland.

In 2013, after a survey revealed that technical staff felt under-appreciated, Fujitsu revived the scheme but with stronger governance. As previously, senior technologists rather than HR professionals administer the programme, which is essential for credibility, says Ms Rose.

But this time, the cohort must reapply each year for the distinction, which is awarded for technical excellence and being a role model. The role includes additional responsibilities such as mentoring and identifying areas in which Fujitsu might improve its performance.

Broader responsibilities

Organisational expediency can also distort who receives honours, says Kate Hall, a director at Arup, the UK engineering consultancy, which has an honorary fellowship scheme. Ms Hall says that the fellowships are conferred purely on merit.

However, there was a phase when it approved “borderline” candidates in some regions, she says, where no individual genuinely stood out. The aim was to create role models in every market but the effect was to devalue fellowships for all. “If you water down the prestige, you risk tipping over the entire boat,” Ms Hall says.

Programmes that encourage an org­anisation’s top experts to mentor the next generation and to introduce their specialisms to colleagues from other fields can be professionally rewarding, says Peter Gist, an economist at Arup.

By bringing another perspective to bear on problems, such programmes may also benefit the wider organisation. As an Arup fellow, Mr Gist has a month each year when his time is not charged to clients. He spends it giving talks and devising ways to encourage engineers to view infrastructure projects through the prism of business economics: “Being a fellow has freed me up to encourage the use of economics to solve problems in conjunction with other disciplines.”

Idea swaps

An emphasis on working across disciplines, as Mr Gist advocates, has the potential to make specialists more visible and their expertise thereby more valued. Marlon Sullivan, who heads employee talent and development at Abbott, the US healthcare company, says scientists in its four healthcare busines­ses formerly had little contact with each other. Being in divisional R&D units also meant they lacked a clear career path.

In 2009, Abbott created a “senior technical track”, with standardised grades and pay, into which the highest-performing scientists from across the business are promoted. Abbott organises science get-togethers at which STT members network.

Chris Thomas, a diabetes device specialist based in the UK, says having such a company peer group to consult has helped his science. He developed a blood glucose sensor with laser technology gleaned from STT scientists working on cardiovascular stents. “Being part of [a peer group] has made solving problems easier,” he says.

Soft skills needed

Can specialists hold their own in corporate forums? Soft skills and commercial insight may not be the technical ex­pert’s strongest suit but such capabilities can be nurtured, says Ms Lathe. As part of their professional development, Rackspace’s technologists are seconded to product launches to work with commercial colleagues and are coached on how to present well and mentor colleagues.

“Though the TCT’s purpose is to keep [our best technologists] as specialists, they’re visible specialists involved in strategy and the business.”

Mr Williams, at 30, has time on his side. “So long as I can use my technical skills to create things [and progress], I’ll be happy − and if I can get to the board [as a fellow] that would be fantastic.”

Further reading: Mid-career strategies

▪ Focus: make it possible for the best experts to focus on what they do best, without the distraction of managing big budgets and teams;

▪ Rewards: anchoring the pay of top specialists to that of general managers sends a powerful message that experts who create profits through exceptional skill are as valued;

▪ Soft skills: foster these, as they open the way for experts to share their expertise through mentoring, educating and participating in boardroom debate;

▪ Dismantle silos: expertise separated by functional divides is worth less to organisations than when is shared and generally attracts fewer rewards and less acclaim;

▪ Honour eminence: conferring accolades, such as fellowships, can be motivating but only if they are seen as exceptional and therefore worth having.