by Robert S. Hoberman
Complacency and overconfidence, are symptoms of a disease that permeates company boardrooms and executive suites and extends to human resources and line executives. It spreads fast in poor economic times and it can kill corporations.
Decisions have been made in the last few years to downsize staffs and add responsibilities to the survivors, usually without additional compensation. In a dry job market, staff and executives, alike, have little choice but to except their further burdens and, often, longer hours. Their disenchantment grows. They realize, as they watch highly experienced experts leave involuntarily, that loyalty is a disappearing concept.
That disenchantment, measured in numerous surveys, suggests that half, maybe as much as 60%, of staff and executives, have tossed aside thoughts of commitment and established a willingness to listen to opportunities that will provide better work-life balance, more money and, therefore, a more appreciated life style.
Perhaps as soon as 4th Quarter 2010 and extending through the next several years, opportunities will increase for these individuals and, as they do, the companies they leave will face loss of continuity, especially in terms of industry and product knowledge and relationships with suppliers and customers.
Company costs will increase as they pay more to replace departing staff and productivity will diminish because existing staff will need to take up the slack for the months it takes for new people to get up to speed.
Revenues may suffer and companies may be faced with losing clients whose primary relationships are with individuals, not with them. Drops in profitability and growth potential clearly are inevitable in this scenario, regardless of industry. Increases in buyouts, takeovers and mergers could create a whole new dynamic in the re-emerging marketplace.
So? What do you do about it? Do you sit back complacently and watch? Do you assume an attitude of overconfidence that “we’re protected,” “our people are fully engaged,” “we’ve always weathered these economic storms and come out on top?”
Be real! Look around at the piece of the changing world you are trying to manage. Veterans, if they haven’t already been pushed out, are edging towards retirement. Baby Boomers, still the majority of leadership, are also reaching retirement age, but often are looking for a last hurrah that will produce sufficient income to grease their retirements. The loyalties those two groups have shown for most of their careers are now questionable. Why? Because companies, in their haste to reduce staff and expenses, often started in the wrong place. Bogged down by out-dated precedent and void of clear perspective, the leadership of many companies took the easy way out and laid off their oldest and most expensive people first, at the same time mistakenly laying off their most valuable institutional knowledge and the core of what used to be a loyal component of the workforce.
Gen Xers and Millennials will be asked to carry much of the future burden. The problem is they have no special attachment to their companies and, above all else, they value work-life balance. They don’t want to work the 12-14 hour days that Veterans and Baby Boomers used to work. Many would rather be working remotely than feel bound to be anchored at a desk to which they need to commute every day.
Add cross-cultural impact and the problems are magnified by prejudices, misunderstandings and attitudes of resentment that young employees seek instant gratification and promotion, but are unwilling “to pay dues.” Generation issues are basically the same across cultures, accepting the fact that the post-World War II Baby Boomers exist primarily only in this country.
We need to learn to live now in the era of inclusion, where the role of leadership is to provide top-down guidance that eliminates communication barriers, resolves myths and conflicts and builds teamwork, productivity, competitiveness and, ultimately, profitability.
Key to making sense out of all of this is the concept of engagement, or, at this time of discontent, re-engagement.
The role of every executive, certainly encouraged, if not prompted, by human resources professionals, is to resolve the differences between the personal goals of a highly diverse staff and the key tasks that represent the company’s commitment to its shareholders and its customers.
In the past, Veterans and Baby Boomers often were engaged, without putting a name to what they were doing, voluntarily working extra hours, developing in spare time ideas for new products and services, “teaching the ropes” to new employees.
To a large extent, top management still expects that behavior and that leads to their complacency and overconfidence in convincing themselves that all will be well as it was in the past.
What is needed now is a jolt! Whether that jolt comes from streams of key people fleeing to greener pastures that offer more freedom and more money, or from inside, where proactive managers find ways to be heard, depends on you.
Clearly, snapping out of a management coma and into the new, rapidly changing world is necessary for survival. Adjusting management styles and embracing the varied skills and life experiences of both current and future staff is essential to business success.
Spending the time and effort now to incorporate those changes can restore the spirit and performance of companies, while lowering costs and gaining competitive edge.
Bob Hoberman has some 40 years of executive search and training management experience in both major corporations and consulting firms. He is currently President of Executive Search and Training Services for RW Consulting Group, which specializes in multigenerational-multicultural talent management and of Bob Hoberman & Associates, which provides counseling to executives and senior professionals. He has been widely published and has spoken at regional and national conferences.
