We are beginning to see counter-offers and bidding wars for top level talent. If you have to counter in order to keep an employee, you might save yourself the cost and frustration by taking care of them now before they want to leave. My experience has proven that a counter offer is just a short-term fix. A loyal and committed employer would serve themselves well to evaluate their company’s risk of losing key personnel who are critical to the success of day to day business and growth. Direct turnover costs per employee are about 25%-30% of an individual employee’s salary/benefits package, according to market research firm InsightLink Communications.

We interview candidates every day and see a broad range of experience and talent. I thought it might be helpful to get another perspective of why people leave a job.

Some of the more common reasons people share with us regarding why they are looking to leave are: broken promises, loss of business, change in management, no growth in role, role has changed, money, benefits, commute, staff conflict, merger/acquisition, review/raise. Almost all of these can be remedied or addressed before people leave.

Broken Promises- Whether real or in a person’s own mind, a broken promise is hard to overcome. It could be as simple as a dedicated parking space or a review that never happens. Once the trust is gone, you have an uphill battle.

Loss of business- Business comes and goes. Unfortunately, the people who support that business do as well.

Change in management- Employees don’t like breaking in a new boss. It is always uncomfortable and creates a shuffling of roles and relationships. No one wants to be the odd man out.

No Growth in Role- Driven employees have a full agenda of what they are trying to accomplish in their career. If the advancement in their career at your firm is not to the level they expect, they will jump to find it elsewhere.

Role has changed- Change is not always perceived as good. A person who is a routine style employee will find any alteration in their work rhythm as painful.

Money- Competitive pay for services rendered is an expectation. An employee may take less when the market is down for survival, but once it improves they will be gone if they are not given a fair increase. Also, there is an unspoken expectation that a person’s salary increases with years of service. It could be in promotion, performance or a cost of living increase. Money is the most sacred of areas protected by an employee.

Benefits- This concern is most important to individuals with families to support or people who might have a pre-existing condition. They need cost-effective and comprehensive options that are broad and affordable. A job with little to no health benefits is a high turnover risk.

Commute- People prefer to work, as a general rule, within a 30 minute commute from their home. Our candidates are reluctant to consider jobs more than an hour commute.

Staff conflict- People do not want to work in an environment where there is personality or personal conflict.

Merger/Acquisition- When two companies combine there is often a redundancy of staff. Reducing the additional people helps control costs and improves productivity. It can be perceived as the perfect time for people who are afraid that they might be on the chopping block to jump ship. Good people who are fearful may jump too soon.

Review/Raise- This is the most common reason I hear from people for leaving a job. It could be because they haven’t had a review and don’t feel valued or that they don’t agree with the reviewer’s opinion of them, or lack of a pay adjustment.

Total Score 50-60 You have a work environment where staff grow and are loyal.

35-49 Your firm is considered stable and provides most of the things an employee seeks

25-34 You have and environment that is not for everyone.

0-24 Your firm is at a high risk of losing key staff for better opportunities

This assessment is not a scientific tool. It is based on social feedback and the opinions of staff and recruiters compiling this data.

I’ve just returned from a managers meeting at our corporate HQ. While there, we covered lots of the topics expected - sales, management, hiring, best practices, how to grow and mentor a team etc.  But one of the most surprising topics covered was - vacations.

I am one of those managers who is guilty of putting off  vacation time until the end of the year and then not being able to use it.  l do like folks that put in tons of hours and are fully engaged in their roles at work.  But also I have also seen the effects of burn-out. I have learned over time - that taking time off is, in fact, an important element in keeping employees performing at their best.  So I thought I would share the research finding I received from our communications team.

Time Off

If you’ve been handing out an unspoken pat on the back to employees that work more than 40 hours each week and rarely take vacation, you’re likely not alone. According to the American Workplace Insights survey conducted by Harris Interactive:

• 57% of employees do not expect their employer to encourage vacation use.
• 58% believe their employers likely won’t offer flexible work hours this year.

It’s time to rethink your strategy. All work and no play may or may not lead to dull employees, but it will directly and negatively impact your bottom line. The following are a list of eight reasons to encourage your employees’ regular use of paid vacation:

1. Put a cap on accrued vacation payables. When an employee’s unused vacation time is allowed to accrue for an extended period of time, employers are left holding the bag if that employee leaves the company or suddenly decides to take many weeks at one time. A “use-it-or-lose-it” policy encourages employees to use their earned vacation time within the calendar year, and protects your balance sheet from an unlimited or unexpected payout.
2. Rested workers result in reduced premiums. The hallmarks of workaholism include fatigue, poor health, and stress, all of which lead to an increase in worker’s compensation and health insurance costs. Keep your employees healthier and safer while minimizing the premiums you pay, by enforcing necessary breaks in engagement and regular time off.
3. Increase output with higher productivity and accuracy levels. Studies have shown that productive, successful employees are those who take vacation and occasional time off to relax, rejuvenate and refresh. Upon return from vacation, their renewed sense of drive and determination can provide both short-term and long-term boosts in productivity. Additionally, the necessary rest and replenishment will help them avoid costly mistakes, which overworked employees are more apt to make.
4. Employees that get away are more likely to stick around. When you consider the total cost of recruiting, hiring and training new employees, turnover expenses can be devastating. Help improve employee morale when you facilitate, and even encourage, employee retention through the use of vacation time and an environment that supports employee-centered work hours.
5. A change of scenery promotes ingenuity. Hum-drum routine rarely leads to inspired thinking. When on vacation, we often find ourselves in a new environment, and going through different routines. By being forced to behave and think differently for a period of time, we gain fresh perspective, creative inspiration, and new ideas. It is impossible to put a dollar value on the innovation and ingenuity that will result for your company when you encourage your employees to take vacation as a sabbatical.
6. Happy employees minimize risk and adversity. The ever-elusive office culture – you tout it to recruits, but do you really understand its value? Overworked employees are cranky employees, and are often the cause of infighting as well as office politics. They are more likely to berate their boss, resent coworkers that don’t work as hard as they do, and even resent the job itself. Your entire office, and its work product, suffers the effects of an overworked employee. You can prevent unnecessary crankiness on your team by simply making it clear that working long hours and foregoing vacation are not the way to get ahead.
7. Reduce unplanned outages. Overworked employees may take fewer vacation days off, but the tradeoff is that they likely will require more sick days. Additionally, if your employees are nervous about how you will react to their vacation request, they will be more likely to procrastinate – leaving little time for a back-up plan – or even play hooky. Conversely, employees who feel open to use their vacation time at their discretion will more proactively plan for their outages and have fewer sick days. Foster an environment that supports your employees’ efforts to balance work and their personal lives through paid time off, and the result will be loyal employees that won’t leave you hanging.
8. Detect and deter fraud by interrupting individual controls. According to the Association of Certified Fraud Examiners’ (ACFE) 2010 Report to the Nations, a typical organization will lose 5% of its annual revenue to occupational fraud and abuse. Fraudulent behavior often requires complete control over an activity by one or more persons to cover up the paper trail, and is difficult to maintain while out of the office for a week or more. In fact, refusal to take vacation was one of the key red flag behaviors identified by the ACFE in their study. While the reality of these statistics is unpleasant, companies must acknowledge the need for a required vacation policy to help detect, and ideally deter, any existing or potential fraudulent behavior.

On Friday I had the pleasure of taking part in a panel discussion with graduate students from Northwestern University’s Masters of Science in Communication program. The topics covered included: career paths, job search and the effects of the current economy for recent graduates.

Here are a few of the insights that I gathered and shared with them:

 Masters of Communications vs. MBAs:

We ran a quick pool of several senior level marketing and communications professionals to get their take on the value of a Masters of Communications.  As of today 51 have responded. Nearly 50% said it gave a professional a leg up or was “a must”.  Only 17% said other degrees are better.  The poll is still live. Feel free to participate and check out the results: Poll

Compensation:

One of the trends we are seeing is a polarization of compensation. The top 10% of earners within marketing and communications make at least 50% more income than the average earnings of the bottom 90%.  An article in Marketing Week from the UK gives a global view of this trend: ‘A New Age of Austerity Hits Pay Packets Hard‘

 Where the Money is: 

• US owned companies compensate these Marketing and Communications roles better than their European counterparts.
• Digital natives (those who have worked within online marketing from the beginning of their careers) earn a significant premium in compensation.
• High performing employees may be in a great position to negotiate. 70% of companies reported that they were concerned that these high performing employees may leave.

The Economy

Yes, the economy is difficult. But the anxiety caused by high unemployment numbers is often worsened by media oversaturation. The staggering numbers (8.4 Millions jobs lost since the recession began – Bureau of Labor Statistics) do not provide a  perspective on how communication  professionals will be effected. While white collar workers did experience some of the wrath of the poor economy, they were not affected to the same degree as those without a bachelor’s degree. Bureau of Labor Statistics Education Pays Graph.

 On the bright side:

• The Unemployment rate recently fell to under 10%.
• In January there were 5.9 job seekers on average competing for each job -  a significant decrease from the pervious month
• There were 2.5 million job openings in December 2009- a significant increase from November
• Even with 14.8 million people out of work, there are an estimated 137 million employed.
• A Towers Watson survey released Dec. 2009 states that the number of polled companies that plan to freeze or reduce hiring dropped by half to just 33%. Click here to see the Study
• Marketing, creative and communications professions make up only a very small percentage of the total work force and unemployment rates among those ranks are generally much less than the national averages.
• In surveying the January job postings for Communications roles several groups were up. For example- Internal Communications increased 9%, Communications Managers increased by 10%.

So take a deep breath and start regrouping for the big surge ahead that will surely follow this economic turmoil.  It is time to get back to the hard work – figuring out what you are truly passionate about. Trying to guess the direction of the market, following the hot industries of the moment will never create the foolproof career plan. Being passionate about your chosen path will make you more attractive to employers regardless of which way the current trends are blowing.

Employee vs. Contractor

Temporary employment is becoming the new norm. As companies remain fiscally conservative and credit strapped, they are reluctant to bring on a permanent head count. Marketing, creative and communications departments have had experience with this model for years. This will continue to be a growing trend into 2010 and potentially far beyond. From junior assistants and mid-level specialists to the most senior level strategic directors – contract vs. employee is an important part of the mix. Check out two articles on the subject:

‘Temporary CMOs are Here to Stay – for Six Months or So’ - Brandweek

‘Recruiters See Jobs Pickup in 2010 Despite Concerns’ – Wall Street Journal

As always, I came away from the panel discussion super charged. The talent, dedication, drive and passion these professionals have reminded me why I love this field so much- a big Thank You to the school for inviting Paladin to participate.

Lately, I’ve been reminded that business Web sites often come in one of two flavors.  Perhaps you can recognize them:

1. What we do – These are sites that focus on attracting business.  They devote most of their pages to describing their services, human capital resources, success stories and the like.
2. Who we are – These are the sites that have chosen to focus on attracting talent.  A significant percentage of the site is devoted to recruiting, so they showcase the work experience, profiles of their office locations and career opportunities.

These are broad brush-strokes and there’s nothing inherently wrong with either approach.  Of course, some overlap occurs when talking about the work experience (showing a potential client how thorough you are) or describing your services (showing potential recruits the level of impact they can have).  Many sites dedicate space to both services and recruiting.  But they could be so much more.

The best sites offer a third option, one that combines the flavors above with a way that keeps clients, prospects and potential new hires coming back again and again.

The knowledge site

Call it the Neapolitan solution because it’s three flavors in one – services, recruiting and knowledge.

The difference, of course, is in what knowledge you make available.  The idea is to make the knowledge you share valuable and useful without giving away the store.  Give them just enough new information on a regular basis – or provide access to a database of information if that aligns with what you do – to whet the appetite or keep you top of mind when the time comes to actually purchase your services.

If you’re a design firm, for example, you could offer case studies on how good designs have made a difference between success and failure in a campaign, or offer tips for how to approach branding, color or layout.

Professional services firms can present examples of best practices in operational efficiency or performance management.  Publishing companies can offer reviews and insights culled from their latest editions.  Industry news, white papers, articles, summaries of round table events – the opportunities to position your organization as a valuable resource are endless.

This isn’t a difficult or particularly new concept but for some reason it’s a rare one to see being utilized.  But examples can be found: just look at what Paladin is doing by publishing these blogs.

What kind of a Web site are you?

It’s not easy to do this.  It takes imagination, management appetite, resources and, just as important, maintenance.  It takes collaboration over the long haul to create the content and promote its existence on a regular basis.

It’s long past time when a company could get away with being an electronic brochure.  The war for talent and the fight for business demand that you reach out to clients and prospects – or give them a reason to reach out to you.

Small businesses are especially vulnerable these days and are looking for ideas to generate revenue.  The good news is that those ideas are right in front of them, in the knowledge gained through the experience of their people, the tools they use, and the services they provide.  The not-so-good news is now that knowledge needs to be transformed into a format where it can be shared.

But it can be done.

Do you have any examples of favorite sites that exemplify the Neapolitan approach?  Remember what your mother said about sharing…