Workforce Planning Roundtable
Goldman Sachs is one of the most consistently successful companies in the world - returning 40% on equity in the most recent quarter. It has managed this through a stockmarket flotation that many assumed would mark the beginning of an exodus of talent to private hedge funds - and mainly through organic growth (as opposed to acquisitions). It also consistently manages more risky projects more successfully than any of its competitors. The Economist profiled the company this week and attempted to diagnose why it has been so successful, while still growing its employee base by 12% (it has about 21,000 employee worldwide) and paying (at most levels) the highest compensation in the industry. That growth in the workforce has been through plain old-fashioned hiring - rather than the merger mania that is everywhere in financial services.
The conclusion: "Goldman [says the chief executive] is a hard place to be hired, a hard place to be promoted and a hard place to stay. If you want an explanation of how Goldman endures, that, perhaps, is the best explanation of all." Earlier, the article cites the unusual selectivity of the interview process and the intense loyalty and commitment required of employees. "A request from another division asking for an insight, a contact or some other form of help is not to be ignored".
At the same time, it manages to be cited as the 6th best large company to work for (not unlike Cisco #25) and win other 'work-life' balance awards.
The insights from this excellent article begs the following question for the Workforce Planning Roundtable: “What are the critical components of workforce planning at Goldman Sachs that allows their continued profitable growth?” Even a partial answer to that might go a long way in making the case for the innovation we all are driving for at our companies.
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Monday, May 1, 2006
Goldman Sachs' people management drives extraordinary success - but where’s the planning...
