|
Good morning!
Very few management challenges are more
frustrating than
investing six to twelve months in a new hire —
introducing, orienting, teaching, training, evaluating,
reviewing,
affirming, critiquing, delegating, and rewarding
— only
to have the employee decide that the job "is not the
right fit"
and leave.
Frustrating, and expensive: first-year attrition will
cost at least
25% and as much as 75% beyond the employee's
compensation for a position of even moderate
complexity.
The lack of "fit" could be attributable to a variety of
issues,
including a failure to bridge the generation gap.
Best regards,

Bradlee T. Howe Financial Managers Trust
|
De-Generating the Gap
On the Friday before Christmas, Jenna Olds gave
two
weeks' notice of her termination and left for a week's
vacation. My client, the president of a
technology-based
start-up company, was floored. Jenna was employee
number
two when she was hired in the fall of 2005, and as
the Office
Manager and Bookkeeper she was the pivotal link
in the
company's day-to-day operations.
A former teacher and artist in her late 20's, and a
very "quick
study," Jenna had adapted well to her first office
environment,
managing multiple demands even while learning to
keep an
accurate set of books, without prior accounting
experience.
The two partners and an array of "outsourced
employees"
invested in her learning curve and reaped an early
return as a
result of her excellent administrative skills. At
the same
time, with the help of an accounting package which
she
inherited, she picked up the basics of bookkeeping
and
subsequently, with my help, the essentials of
accounting. After
almost 18 months on the job, Jenna was doing well.
On the Friday after Christmas, I began reading
Workforce Crisis, a
book
which I had purchased several weeks earlier after
attending a
seminar presented by one of its authors, Tammy
Erickson. On
page 100, there was Jenna, effectively described by
the
authors in a section called "Portrait of the Young
Worker," as
- "The first large generation of latchkey kids…
on their
own from a young age…
- "Accustomed to having significant latitude
and
responsibility…
- "Cherish[ing] individual freedom and decision
making…
- "Tend[ing] to be 'tribal,' with close
relationships
to a select but changeable group of peers…
- "Independent and highly networked, both
personally and technologically … technology is
not an
occasional tool, but a constant extension of
themselves…
- "Informal and situational and much less
structured
than older generations…
- "Tend[ing] to experiment from the start, to
try things
and learn what works."
O.K., I thought. That sounds like my own three
twenty-somethings. As college grads, like Jenna,
would
any of
them want her job? It requires fixed hours, being
tied to a
desk most of the day, responsiveness to everyone in
the office,
being the sole (low-level) generalist among a group
of
specialists, having little apparent opportunity for
internal
advancement, and having no outlet for her creative
talents.
What young college-educated worker would gravitate
to that
job? Probably not my kids, and not Jenna.
Four pages later, in a section headed "What
Young Workers
Want from Employers," the authors pointed out:
"Given their independence and libertarian leanings,
they expect
to be treated individually, they want
flexible
schedules, they know that their careers belong
to them
(not their employers), and so they value
knowledge and
skill more than tenure. Given their ambition, they
want to contribute quickly, not work in the
background…. Young people are accustomed to
being
marketed to, and to morphing the rules to suit the
situation,
and so they want to be heard on the job,
they want
frequent and useful feedback, and they
expect to
make their work fit in with other life commitments
and
pursuits. Since they tend to be tribal and socially
networked, they want sociable workplaces,
they want
to connect with others (including mentors)."
Yes, that is what my kids and their cohort are
looking
for and finding. These weren't the priorities for my
generation
at their age, or even now. Many of us have only
come
relatively recently to the notion that a key
ingredient to a
successful career is effective marketing —
of
oneself. And most have had to experience
at least
one unexpected termination before coming to grips
with the
fact that extended employment with one company is
now the
great exception.
So what do the authors advise my technology client
(a member
of my age cohort) to do in order to retain young
workers?
They emphasize "three basics,
corresponding to what
young employees insist on:
- "A thoroughly engaging workplace,
featuring
collegiality, teamwork, fun, and most fundamentally,
democratic participation.
- "Ample opportunity to learn and grow,
including
assignments that expand skills and the leeway and
mobility to
try one's hand at a variety of activities.
- "Attentive management, where the
direct
manager not only appreciates individual employees'
points of
view but also attends to the employee's needs and
progress
and explicitly encourages — and is
accountable for
— retention."
Jenna is off in pursuit of a career in urban design,
public policy
and planning. She plans to spend eight months
expanding on
her part-time free-lance design work, handling a
variety of
assignments before enrolling in graduate school in
September.
In the meantime, we have hired a "mid-career"
woman as a
successor to Jenna. The authors of Workforce
Crisis say that we can expect her
cohort to
be "motivated, flexible, and people
oriented…
[with] valuable accumulated experience and
knowledge, and
more soft skills and customer-service orientation
than the
younger cohort. Among their potential
weaknesses
are a distrust of leadership and tendency to be
self-absorbed."
Clearly, I need to keep reading.
|
Alligator Bites
In a second-floor walk-up above a retail shop in
Devonport,
across the harbor from Auckland, New Zealand,
my wife
Annie and I last week discovered The
Department of Doing. Curious about the
name, we
wandered in to the open office and were warmly
greeted by
Richard Hollingum, the Director of Doing, and three of
his
associates.
"So, what does The Department of Doing do?" we
asked.
Richard handed us his brochure. On page one was
the question,
"So, what does The Department of Doing Do?"
accompanied by
the answer:
"Since this is the most frequent question we face,
we've
become rather good at answering it. Our purpose
at The
Department of Doing is to BRING IDEAS TO LIFE.
Your
ideas, our ideas, the client's idea or their agency's:
we care not
where they came from, only that good ideas actually
happen.
"To this end, we will do whatever it takes…
"So long as it doesn't involve kids' magic shows or
explosives."
To call The Department of Doing an advertising
agency would
be much too narrow. Even the term "marketing
communications" would be limiting. Directive 1(A)
under their
code of conduct specifies: "If someone comes to
the
Department with a problem, solve it for them. This is
what The
Department of Doing does. It is why we exist.
Never say
'Sorry, we don't do that.' Or 'It's not really our thing.'
Just
because we haven't done it before doesn't mean we
can't do it.
It just means that we have to find out how.
Anything is
possible with effort and imagination."
For its seven employees, fulfilling the mission in part
means:
"Directive 2: Be honest with yourself and with others.
We want
the Department of Doing to be ethical, honest and
open.
We have learned by experience that business is
more
productive, more creative, and more fun, when
people trust
and respect each other. We have spent too
many years
working in big companies (and small) which run on
fear,
paranoia and deceit to want to do it all over again."
"Directive 3: Never say, 'That's not my job.' The
business world
is full of organizers, planners, facilitators and
managers. It
doesn't need any more. At the Department of
Doing we
only want doers. We are about making stuff, and
making stuff
happen. We are about taking clients' problems and
making
them go away. That's our job."
Based on a client roster that includes GM, Hitachi,
and P & G,
they do the job. Based on our visit, they're having a
lot of fun.
They're not young, but their attitude is. Sometimes
that can
make all the difference.
|
About Us
Financial Managers helps the managers of smaller
companies and non-profit organizations develop
reliable financial information for operational
decisions.
On an affordable retainer basis, FM serves as
the
part-time controller and senior financial manager for
multiple clients, leading them to profitability and
positive cash flow.
The goal is for the organization
to outgrow Financial Manager's services, at which
time FM will take the lead in identifying and hiring the
right full-time financial person for the firm, and effect
a smooth transition to his or her management.
|
|
 |
|
EMAIL SUBSCRIPTION
|
 |
Enter your e-mail address here to subscribe to "Howe's Bayou."
|
 |
DRAINING THE SWAMP
|
 |
|
Assessing the cost of replacing an employee:
1. Job posting (as % of compensation):
1–4%
2. Temporary worker: 4 weeks' salary or fees,
at 25%
effectiveness
3. Placement fee: 10–30% of annual
salary
4. Managing the hiring process (ad copy,
resume
reading, contacting, interviewing, reference
checking, follow-up): 40–120 hours of
admin/exec. time
5. Getting up to speed — effectiveness
of new
employee:
a. Month 1 — 20%
b. Month 2 — 33%
c. Months 3–9 — 50%
d. Months 10–12 — 75%
Overall average 48%
|
 |
PREVIOUS NEWSLETTERS
|
 |
|