Why Didn’t You Do That Before?

As someone who has reported on two large industries since the mid-1980s, as you may imagine I have written and commented on the omnipresent issue of employee turnover. While an employee revolving door would be more frequent say, in the restaurant industry as opposed to the accounting profession, nevertheless it remains critical metric for CPA firms.

Which is why I’m still astonished at how many remain reactive to employee retention as opposed to proactive.

Case in point.

The other day I was at my local health club when a former partner at one of the super-regional CPA firms and now on his own, was bemoaning about the loss of his long-time senior manager. He explained that the manager was with him nearly eight years but left for a firm that offered more money and a faster track to partnership.

He said he matched the money to get him to remain to which I replied that if he matched the money it meant it was there in the first place so why wasn’t he more proactive about raises and merit promotions?

The ensuing silence reinforced the fact I had brought up an uncomfortable truth. Sadly, that’s more the rule as opposed to the exception.

Closer to home my spouse is leaving her position after 18 years with the same company for a sizeable leap in salary and perks. Her resignation letter set off a panic within upper management and they made a furious charge to convince her to stay – matching the money and the benefits. I pointed out that they hadn’t given her a raise in three years and now additional funds were miraculously available?

To me at least it was infuriating. For an employee to remain that long with a single company – a rarity today – her intangible value was almost incalculable.

Hers was a case study on exactly what NOT to do regarding employee retention.

When Southwest Airlines began in the late 1960s its co-founder, Herb Kelleher, made a point of getting to know every employee and even giving out his home phone number in case of any problems. His loyalty and nurturing of his staff – from the baggage handlers to the flight crews set standards for retention and loyalty. 

Years later I was at Sky Harbor in Phoenix visiting a friend who had just gotten a job as a ticket agent for the airline. As we were talking an angular man in blue jeans and a snap shirt came up to us and introduced himself as “Herb.”

How many CEOs today would do that?

Most don’t which is why too often a manager will be pulled aside by an employee asking, “hey have you got a minute?”

From there, it’s usually a walk down to human resources.