For Labor Day - An Employee Success Story

Note : - On the cusp of Labor Day weekend, and with news of yet another increase in the US unemployment rate, this story of success, both for the employee and the organization I thought would be a rereshing change from the depressing employment news.

This past Saturday night I attended the Rochester Redwings (AAA Baseball) game.  It was as always a fantastic night, Redwings baseball is great family entertainment, and the organization really knows how to put customers first.

During and after the game the Redwings took time to recognize the service and achievements of their General Manager, Dan Mason, who was celebrating his 20-year anniversary of employment with the club. The image on the right is a commemorative poster that was handed out to fans entering the game. Certainly a wonderful accomplishment and it is apparent  the continued success of the club has much to do with his leadership.

What I found interesting in the brief remarks Mr. Mason made during the on-field ceremony was the appreciation and respect with which he spoke of the team's President (his boss) and many of the former employees and managers of the team he had worked with in the last 20 years.

Mr. Mason made a specific point to mention not just how well he had personally been treated during his time with the team, but also how well the organization had treated his entire family. A stong impression was that the team had really embraced the Mr. Mason and his family and that a deep mutual appreciation and respect had developed.

In minor-league sports, there is a strong undercurrent for players, managers, and executives of a 'move up or move out' mentality. Players are putting in their time, honing their skills to try and reach the major leagues, the ultimate goal for all of them. Front-office staff and management as well are frequently just biding their time in long hour, low pay positions, getting important experience in the sports business that they hope to leverage later in their careers.

A successful executive like Mr. Mason surely must have had many opportunities to move on, perhaps to a larger market, possibly to a major league team.  The fact that he has stayed with the Redwings to me is a testament to the ability of an organization, even a small one with limited resources, can engage and attract talented employees. How do the Redwings do this? Through a combination of genuine care for the well-being of the staff and their families, a clear focus on the organization's mission and goals, and a culture that emphasizes fun, experimentation, and excitement. Perhaps Mr. Mason could have left years ago, but for various reasons he has not, and a minor-league franchise like the Redwings has been able to retain major league talent.

What are some other ways that you have seen successful small organizations find, attract, and retain 'big-time' talent?

Long-term deals - Are they for jocks only?

If you work for company in the United States, and are not a member of a Union, it is quite likely your employment agreement is know as 'Employment at-will'.  What is Employment at-will?  From LegalDictionary.com we find:

Traditionally, U.S. employers have possessed the right to discharge their employees at will for any reason, be it good or bad. The "at-will" category encompasses all employees who are not protected by express employment contracts that state that they may be fired only for good cause. "Good cause" requirements are typically a part of collective bargaining agreements negotiated by employee unions; nonunion workers rarely have this form of protection.

But you know what category of worker in the US frequently gets the protection and security of guaranteed employment contracts?

Profession athletes.

These top professional athletes in sports like baseball and basketball can sometime agree to contracts upwards of five years, and the very best can command staggering compensation:

Source - nydailynews.com

Alex Rodriguez of the Yankees recently agreed to a 10-year deal that may pay him up to $305M.

Not bad.

A-Rod is a top player, an all-time great, and it makes sense for the Yankees to lock up his services for essentially the remainder of his pro career. A-Rod can't decide on his own to jump ship and join the Red Sox next season.

But most organizations do not have the same assurances and control over their stars and top performers.  Almost all of your top players are working under Employment-at-will arrangements. The best java developer, marketing analyst, or senior accountant can pack up their desks and march out tomorrow, maybe even to one of your competitors.

 Almost all companies are willing to take the chance that great talent will leave in exchange for the ability to adjust staffing levels, downsize, and have total flexibility in workforce deployment.

However, if the latest economic data is to be believed, the long downturn is showing signs of ending, and leaders will soon be faced with more challenges.

A recent article in Forbes reports that over half of senior executives surveyed are extremely concerned about key employee retention once the recession ends:

65% reported they were highly or very highly concerned that high-potential talent and leadership would leave once the economy turns. And 52% of surveyed executives predicted an increase in voluntary turnover at their companies once the recession ends, four times the number expecting a decrease

The Forbes piece goes on to offer many familiar strategies to help retain high performers: increased engagement efforts, modifying compensation plans, and holding executives responsible for retention. Good ideas, but the article makes no mention of the strategy used in pro sports to ensure the best available talent won't simply walk out the door for a better deal somewhere else.

Contracts. 

Why shouldn't the organization offer two or three-year deals to 'lock up' the very top tier of performers? 

The organization can get the benefit of knowing (for at least a couple of years) that this critical talent will remain with your firm, and the employee gets at least some near term job security, even more important after the job losses of the last two years.

Of course these contracts limit the organization's flexibility to change course, and downsize, but if they are given to just the top tier of performers, then those are the last ones you would let go anyway, right?

And I don't want to hear about any 'double-standard' complaints, A-Rod has a 10 year $300M contract because he is a star, Nick Swisher 'only' plays under a 5 year $26M deal because he's a role player. Nick understands he's no A-Rod, and somehow he manages to show up at work every day and do his job.

So what do you think, time to 'lock-up' some of your star players?

Help You, Help You

Professional sports and agents go hand-in-hand these days. Very few pro athletes handle their own contracts and negotiations with team ownership. Agents like Scott Boras and Leigh Steinberg became famous as some of their clients over the years, a testament to the power and influence of agents.

In 1996 a movie about a sports agent 'Jerry Maguire' put the phrases 'Show me the money' and 'Help me, help you' into pop culture.Flickr - JohnnyCashsAshes

But since you're not a professional athlete and most likely don't have a super agent negotiating your next deal for you, you need to be your own agent. And what do the best agents bring to the table?

Preparation - The best agents understand not only your value and your performance record, but also the history and market position of the company. If this is a salary negotiation with a new company use all available sources of information, starting with the obvious (company website, financial statements), the less obvious (company Twitter accounts, Facebook pages, LinkedIn Company profile), and the most raw (Glassdoor, Vault, and Indeed forums). Walk in to that room knowing you are better prepared than the person across the table from you.

Confidence - This confidence stems from thorough preparation.  Once you have assessed the situation, established your key must-haves (salary, benefits, vacation, etc.), then you have to walk into the meeting confident but not arrogant, firm but not inflexible.  When you truly understand your contribution and the value the marketplace puts on your skills, confidence should not be an issue. You are a star baby, make sure you always understand your own awesomeness.

Client focus - remember who the client is, it is YOU.  As your own agent you are trying to negotiate a deal that will be mutually beneficial to both parties, but at the end of the day you are your only advocate. You have to protect your interests first. Unless you are working for your Mom, the person on the other side of the table almost certainly does not have your best interests as their top priority, in fact they shouldn't. Only you have to live with the outcome of the negotiation, so you better make sure you advocate for yourself every step of the way.

Network - In sports negotiations a good agent is constantly working and maintain contingency plans, in case the deal can't get worked out.  He or she uses their network connections in other organizations and with media to have some idea of where their client can go next, or better still, which teams to try and play against each other to get the best deal. You should be doing the same, staying on top of what the other target companies in your region or your industry are doing. Who may be hiring? What company is expanding?  Is your industry undergoing consolidation or is outsourcing changing the nature of what you do?  The more personal contacts you can make inside your industry and with your local business organizations the better.

Here is what a great (fake) agent can do, are you getting these kind of results repping yourself?