A leader looking to hire honest and talented employees will only be successful if he or she successfully projects a model of how talent and honesty can work together in the company.

While we increasingly expect our leaders to be honest, that alone is not enough to attract the most talented employees. Honest employees will of course gravitate to companies with reputations for integrity. But how do companies attract top performers?

Depending on the industry, the most talented employees want to join high performance organizations: those companies that are at the forefront of their industry, either in terms of market innovation or market share.

But these "top-guns" want to be sure that they aren’t joining the next Enron. Remember that Enron was an organization that prided itself on hiring only the best of the best to engage in the most challenging and "cutting-edge" work.

So what do these employees look for? They want to see how the leadership balances performance with ethics. Successful leaders that attract the best are those that demand performance and integrity at the same time. One leader I have worked with prides himself as always being on the edge, always pushing his team to achieve more and push the envelope. But while he urges his team on, he is also as vociferous in demanding scrupulous compliance with the company’s standards. Any thoughtful leader in this era will be cognizant of the risks inherent in "high performance."

And this point is not lost on employees and recruits.

In data compiled by Business for Social Responsibility, a U.S. employee survey carried out in 2001 by Walker Information found that only 6 percent of employees who thought their senior management was unethical were inclined to stay with their companies, while 40 percent who believed their leaders were ethical wanted to stay. Another study of U.S. workers carried out by the Aon Loyalty Institute in 2000 found that when employees do not feel they can trust management, giving them additional benefits has no significant effect on their commitment. Another Aon survey in 2002 showed worker confidence in management had dropped to its lowest level since the survey began in 1997. Extensive anecdotal evidence suggests that employees have more positive feelings about themselves and their work -- and demonstrate greater loyalty -- when they work for a company they view as having good values and ethical practices. 

DAVID GEBLER is the President of Working Values, Ltd., a Boston-based business ethics consulting and training development firm.  More articles by David Gebler

WORKING VALUES LTD. is a business ethics and training company. Through a variety of products and services, including Web-based compliance and ethics programs, on-site training, video and award-winning ethics games for employees, Working Values aims to align employee behavior with company values. For more information as to how Working Values can narrow your company's Behavior-Standards Gap, visit www.workingvalues.com or contact cgebler@workingvalues.com. For news on ethics in the workplace, visit SmartPros Ethics & Compliance.