By George Waggott, founder, and Roberto Fonseca-Velazquez, summer law student, George Waggott Law
A recent Wall Street Journal article reflects on the critical role that superstar employees play in driving an organization's success. Superstar employees are defined as employees that are high performers, known for their exceptional output and productivity. While superstar employees can significantly influence the fortunes of a business, the value they bring to an organization evolves as their careers develop, requiring different management strategies at various stages.
In the early stages of their careers, superstars are highly motivated by personal achievement and the desire to build their professional reputations. They are typically driven, focussed, and capable of producing results far beyond the average employee. The Wall Street Journal article refers to a study published by the Southern Management Association which looked at the number of patents filed by young inventors across various industries. Superstar employees were shown to outperform their peers significantly, producing an average of 17 patents every five years compared to just 6 patents for regular employees. Despite their high output, these young stars are often underpaid relative to their performance, as their compensation has not yet caught up with their contributions.
As these superstars age, their individual output may begin to decline. For instance, in the patent study referenced, the productivity of superstar employees peaked 20 to 25 years into their careers, followed by a gradual decline. A second study published by the Southern Management Association, which looked at the compensation of employees at a financial services firm, found that older stars tended to be overpaid relative to their individual output, with compensation increasing as they gained experience and reputation.
The decline in individual productivity does not mean that older superstars lose their value to the company. Instead, their role evolves into being mentors and leaders responsible for guiding and developing younger employees. Their experience, knowledge, and networks become invaluable assets that can significantly enhance the performance and growth of their mentees. Research shows that teams with older superstars tend to perform better, with non-stars on these teams experiencing an increase in their performance due to the guidance and influence of the stars.
To maximize the value of superstars throughout their careers, companies must adopt a flexible approach to managing and rewarding them. For young stars, organizations should focus on supporting their high-impact work by minimizing distractions and providing opportunities that align with their strengths and aspirations. This might include offering performance bonuses, equity grants, and personalized development opportunities.
As superstars transition into mentoring roles, companies should provide them with formal training and coaching to excel in these positions. Organizations should also recognize and reward superstars for their impact on the development and performance of their mentees, perhaps by tracking metrics like the number of mentee promotions or improvements in performance.
In their later years, superstars can also contribute by participating in leadership councils, mentoring programs, and passion projects that benefit the entire organization. By catering to the evolving strengths and motivations of superstar employees, companies can continue to benefit from their talents and ensure that their contributions remain valuable throughout their careers. This tailored approach allows organizations to fully leverage the unique abilities of their superstar employees, ensuring that their impact is felt even long after they have retired.
For more information about George Waggott Law, please see: www.georgewaggott.com, or contact: george@georgewaggott.com
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