The Games People Play
September 18, 2007 1:22 PM
Has it ever struck you that the way organisations behave when they are attempting to retain staff is very similar to the way that mobile phone and utility companies carry on when they're threatened with the possibility of losing a customer?
This only occurred to me recently when I was in the throes of reviewing my mobile phone contract; something I hadn't felt the need to do for the past three years. I'd been a very happy bunny, just bumbling along in blind ignorance.
But hunting around the marketplace to find out what mobile phones do these days and what sort of alternatives are available from the network providers has been a real eye-opener. Options that I'd barely thought about three years ago are now commonplace - and of course, everyone's got the best deal to throw at you with phones which can do almost anything except cook dinner and I suspect that by the time I get around to looking again, they'll be able to do that too.
So, what does all this have to do with staff retention? Well, I was talking to one of my clients recently about the games organisations play when they are trying to retain staff and it seemed remarkably similar to what network providers do to retain their customers.
Take my case. Would I be looking to leave if they hadn't decided to double my service charges? Probably not. Would an employee be thinking of leaving if they hadn't been over-worked, under-valued and given no recognition by their employer? Probably not, because, the chances are they actually really enjoyed their work, their colleagues and their environment. Yet because their organisation failed to recognise this and value them accordingly, they felt they were being overlooked and their good graces were being abused.
So they hunted around and found another job just as I found another network.
They went to talk to their manager about their concerns with the intention of resigning. I spoke to my network provider to get a PAC number. Their employer was horrified about losing them and asked for time to make them an offer. My network provider was disappointed about losing me and made me an offer to stay that I'd have been hard put to reject. Their employer took them into their confidences and drew up a plan, with more responsibility and authority, more compensation and greater visibility. I reflected on what the other networks had to offer, what technology was available, but most importantly what I REALLY needed from my phone contract for the next 12 months.
As a result, the employee decided to give their employer the benefit of the doubt and stayed and so did I.
What can we learn from this? Well, the rule is that generally, people prefer stability and consistency over change and uncertainty. No surprises there you may think. But what is a surprise is how casual most organisations have become about staff retention and how myopic and negligent they have become in spotting behavioural signals from their workforce.
Consequently, this sort of reactive, knee-jerk response by employers has become a de-facto standard, by which time it is often too late.
Had my network provider come to me prior to doubling my bill and offered to extend my current contract, I would probably have continued to bumble along in blind ignorance. But the fact is that they didn't - and neither do most organisations when it comes to staff retention. To value customers and employees and enable them to feel appreciated and valued, seems as far away as ever. It won't eliminate attrition altogether, but it's a damned sight better than the business model of the insurance sector; one where customer retention is measured only by the differential between those customers they gain through the top of the funnel versus those they lose out of the bottom.
Comments
Some interesting thoughts there and indeed counter offers from current employers can be a nightmare for any recruiter.
Any good recruiter should discuss the possibility of getting a counter offer with the candidate during the offer stage.
I would want candidates to be aware of the following -
Where is the money for the counter offer coming from? Is it your next raise early?
The same circumstances that made you look at alternatives today will face you tomorrow. How long will the increase in money alone make up for this?
Be prepared for a speech from your Employer concerning loyalty and commitment.
My experience is that often an employer will want to make a counter offer as it buys them a little more time to line up a replacement. It's true that people do like stability and consistency but I would be interested to learn the percentage of people who do leave within 6 months after acepting a counter offer.
Sometimes the grass is greener....
Adrian - September 18, 2007 2:06 PM
Fair enough Adrian, although the point I was trying to make is that this sort of knee-jerk response is mostly avoidable when both employers and employees value, and understand the value, of the relationship they are in. Like any relationship, the more you work at it, the better it gets.
You'll also note that the example I cited wasn't just about the compensation; in most cases of a similar nature that I've been drawn into, it rarely is. My experience of those who stay put only because of additional money they are offered, is that they do indeed leave within the following 6 months.
Charlie - September 18, 2007 2:49 PM
You're spot on Adrian!
What's with "Customer Retention Departments" that most big companies seem to have these days.
Customer retention is not about trying to talk people out of leaving, which is what these departments are set up to do. Customer retention is about building the right relationships so that your customers won't want to leave you.
Eliezer Gonzalez - September 19, 2007 2:06 AM
I worked for a large company and I was on leave looking after my sick husband when I went back to work I found out that my Supervisor had been promoted to an assistant manager and would be reporting to my boss and that I would have half my workload scrapped, I was told it was a business decision but I felt undervalued and that is why I left.
I had been there a number of years and the office politics were disgraceful everyone trying to score brownie points by putting other people in the poo!!! The thing is, how do you fight against these big companies who continue to discriminate and bully but think they are untouchable?
anomymous - September 28, 2007 1:37 PM
Dear Mrs/Ms Anonymous
Politics are everywhere; in every organisation small or large at every stage of their development. Your challenge will always be the same that everyone faces; namely how to deal with it wherever you find it, in a manner which suits your style and your personality best. It is naive at best and suicidal at worst to ignore it and pretend that it doesn't exist or that it won't affect you. Organisational behavioural mirrors human behaviour and they will always try to bend the rules as far they can to get away with re-organisational discrimination if you allow them. You succumbed on this occasion, which is what many, if not most, normal and sensible people do. However, you don't have to become one of them to beat them at their own game. Politics in business are often designed to force individuals to change their preferred or default patterns of behaviour. Politics also relies on individuals behaving in a predictable manner. The key to managing and maybe even surviving them, is to remain above them. Be true to yourself and don't allow yourself to become something you're not. Don't allow others to sucker you into behaving in a way which makes your even more predictable and an easier target.
Take heart from your own integrity and the lessons you've learned about other people and just be a bit more wary the next time around.
Charles Helliwell - October 1, 2007 11:38 AM
Hello Charlie,
Hope you are keeping well.
I haven't read the ole' Jobsite blogs for a while but as usual yours continues to get the positive reaction it deserves with your fresh and fun look on a vast range of interesting HR issues.
Having worked in recruitment I see one view, now working in the employee benefit market I see another view. But even with the extra sweeteners employee benefits bring, it still doesn't equal total happiness.
After all you can put a 1st class benefits package together and although it looks nice (dental care, life assurance, childcare as well as other incentives and motivations etc), what really drives people are 3 factors: money, working conditions/hours and the team you work with.
The primary reason...MD's, Managers and HR take heed. Money still rules the roost...yes it puts (nicer) food and newer, more flash phones on the table!
I quit my job, moved and doubled my salary...did I think of staying with my old job using that same blind ignorance you had with your phone? No! If I knew I could get a better value phone contract, would I stay with my current provider? Again...no!
The secondary reasons are working conditions and hours, this is a big issue these days. In lots of companies you see a last one out "wins" culture. Yes I was in that culture and I continue to see it at my clients companies - where it is seemingly "cool" to brag or smirk about the fact you work a 7am-9pm working day (or worse). Was/is it cool? Nope!
A recent CIPD report showed that more businesses are now modernising workspaces to make work an attractive place to stay longer, even going as far as installing sleeping pods in their office space! Would you stay with a phone provider who tried to squeeze you dry, charging you for a contract you just don't need? Let me think...no!
Lastly there is the deal breaker - the team and most importantly your manager. Do they value you and your work? Do they understand your work ethic? What motivates you and makes you tick? How can they get the best out of you? Do they know what you want and what your future goals are?
These are just a few things managers need to find out and remember. If they don't know the answers to these types of question and treat every individual the same it has a disastrous effect. Even worse is when managers treat their staff as they would treat themselves e.g. ladder climbing, do anything for the cause, derrière kissers.
In the case of a mobile phone, does everyone want the same phone contract? No, some people text more, some people talk more etc...Everyone has different requirements!
I therefore think it's about time Employers revolutionised, looking long and hard into what makes their staff tick. Otherwise we will continue to live in a society where the word "retention" is only read about in the latest JK Rowling novel. What would I do? Maybe people should look into new ways of look at retaining employees/customers. Look at Google and Apple - by innovating they stay ahead...maybe you should look at the iPhone for your next phone Charlie!
Mark
P.S...Good luck with the phone
Mark Terry - October 3, 2007 9:54 PM
Mark
It's good to hear from you; as incisive and constructive as ever.
Food for thought, indeed, for employers to consider. Unfortunately, my impression is that they just don't care enough; and I would add a rider to this outrageous and contentious viewpoint. They don't give a damn either, mainly because they have relegated the role of the HR department to one of process. Filling the positions has become more important then optimising productivity. Oh yes, when it comes to optimising productivity, they will just take them out for a day 'paint-balling'; that seems to do the trick!
No...the HR fraternity has let itself down by not raising the bar. They have allowed themselves to become mere functionaries, stuck in a rut of process. To get serious about recruitment, learning & development and retention, someone has to do the numbers. Numbers are the only way to get yourself noticed by senior managers, directors and shareholders. Numbers enable HR to raise the bar to a level where the Board of Directors start to view people as assets and not costs or liabilities.
Charlie - October 4, 2007 9:49 AM
Hello Charlie,
As Employment Advisor for charity organisation my job is to help people back into work most of the client have been out of work for many years or have never worked before. It hard for them to find right job for them but with right support and motivation I am able to find them jobs.
When the client start working it changes they life's for the better it gives them new life
I love helping people back into work I am very good (One of the best) but the fact I am not valued and thinking of moving on hopeful to go to better organisation
Wish me luck
Meena - November 7, 2007 12:43 PM
I have always advised thus: If you have to hand your notice in to get a decent deal out of your employer, they are not a good employer. Just leave anyway.
John Riley - December 18, 2007 1:17 PM
Up to a point, John. This may be the validation or realisation that an individual needs, in order to understand their value to their employer. However, I never just advocate that they leave immediately because of it. In so many cases I meet people who have worked for years for the same organisation, under some misguided illusion that the organisation truly valued their contribution; only to become utterly distraught when that illusion is broken. It's the sudden realisation that all the trust they put into their employer was never going to be reciprocated, and they often respond emotively, to their ultimate cost and the organisation's ultimate shame. Consequently, I would always advocate a more rationed, reasoned and dispassionate course of action, formulated in the cold light of day, with the benefit of good night's sleep.
Charlie - December 18, 2007 6:10 PM
I started with a company as sales / tech director in three years i have take turn over from zero to 750k . i get a flat 24k work all through every day, avg 50-60 hrs a week . Now im the dogs body the MD is absent more than present , All my hardword is treated with disrespect , i wish i could say i find this unusual , but alas its not , good employers are far and few . My general view is , the more polite , hardworking and loyal you are - the ride will be rough , pack up your kit bag ,move on ... when you find a employer who does value you efforts - stay there
Paul macdonald - December 19, 2007 5:01 PM
Paul
You're blaming your Boss for something which you can change. If all you say is accurate, then it's you who are doing yourself a disservice; and your Boss is only agreeing with you. Start by vauling yourself and the contribution you make and stop feeling sorry for yourself. Look at yourself in a mirror and see what image of yourself you are projecting to others. Then change it...or do nothing. It's your choice; but don't expect those you work with to feel sorry for you and compensate you accordingly. People are generally much more motivated to pay for something they value; particularly when they know what they're paying for. Charitable donations may be motivated in part by goodwill and generosity, although this is often more than not justified when they can see or feel some kind of payback for them.
Ask yourself this. Are you being compensated so poorly because your Boss feels sorry for you; or because that's the value he puts against what he believes he's buying ?
Charlie - December 20, 2007 10:21 AM