How the value of star employees changes over a career
Overall, star employees tend to create value in different ways as their careers progress. Early on, they create outsized value through their individual performance. Experienced stars, meanwhile, contribute by helping colleagues succeed, sharing expertise and developing future stars.
Star employees contribute value in distinct ways throughout their careers. During the early stages, they generate significant value through their individual performance, often exceeding their compensation due to limited visibility and bargaining power. As they gain experience, their visibility and salary increase, but their individual output tends to plateau. However, experienced stars create additional value by assisting colleagues, sharing expertise, and nurturing future top performers.
In a study published in the Journal of Management, researcher Call and his team examined how the relationship between pay and value creation evolves as star employees advance in their careers. Early stars often go unrecognized for their contributions until they have built the necessary visibility and bargaining power to earn higher compensation.
Once their value is more evident, they begin to generate broader benefits by fostering the success of their colleagues through mentoring, knowledge sharing, and developing the next generation of top talent.
According to Call, older stars tend to have a more positive impact on their organizations and peers compared to their younger counterparts. This shift can be likened to accomplished musicians who, in their later careers, become known not only for their own work but also for their ability to produce and mentor other artists. Call emphasizes that recognizing the value of experienced stars as mentors is crucial for organizations.
High-performing employees may sometimes be perceived as threats to their peers due to consistently outperforming them. Managers should help these stars understand this dynamic, enabling them to build trust with colleagues and demonstrate that collaboration is mutually beneficial rather than competitive.
As star employees gain more responsibility and visibility in their roles, they often rely on peer support to execute their ideas effectively. Developing collaborative skills becomes essential for maintaining long-term productivity and sustained success. Therefore, organizations should focus on supporting top performers by teaching them how to work effectively within teams, fostering an environment where stars can thrive while contributing positively to their peers and the organization as a whole.
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