Retention, Long Tenure and Employee Weaknesses

Retention, Long Tenure and Employee Weaknesses

Years of the same strengths and weaknesses

Long service employees can provide enormous value and efficiency in many cases but there are both strengths and weaknesses associated with those who have been in the job for a long time.  I have more than once, been appointed nonprofit interim Executive Director where the former director had very long service.  Let’s say a person in leadership has particular weak performance areas and he/she works for 15 years.  This means you’ve had 15 years with this particular weakness. Here’s an example.  Maybe the director is strong in finance and fundraising but not so strong managing and dealing with people. Funding and finances are probably in good shape. But after 15 years of less than positive attention to the matters of managing people, performance has likely suffered and current human resource strategies may be out of date.  Perhaps the organization never hired anyone with professional HR skills.  Perhaps they did, but the professional HR person was frustrated by a leader that didn’t want to grow and improve HR practices through the years.   I’ve learned to gather information about strengths and weaknesses of the person I am replacing as a means to assess how to approach the organization overall.

Productivity

Long employee tenure is generally considered to be of great productivity value. The logic is that employers invest time and money to train new employees and over time, those who stay really know their positions.  There are technical matters, getting to know fellow employees to form a good team and then corporate values and philosophies to master.  The greater a position’s complexity, the longer it takes for an employee to learn the position and ramp up to competency. Reaching competency is the level where the employee’s real contribution can be realized. In the beginning the new employee is actually a drain on productivity.  At some point, they begin to add value by producing results at an acceptable level.  From a financial standpoint, the key is to keep employees after they reach the productive level long enough to return the original investment. Difficult behavior notwithstanding, a company is better off to keep these productive employees until their retirement.

Change is the new normal

The faster the world changes the more obsolete a given employee’s experience can become and nobody’s perfect.  Even your best long service employee comes to the job with weaknesses that may continue through their tenure. Read below for a discussion of the some of the hidden problems with long service employees.

Companies change their products, programs and services to remain competitive and to maintain profit margins.  Some lines are sold off and new ones are developed or acquired.  Even with one product line, the changes and advancements over a 25 year period would require significant re-tooling and process improvements.

In addition,  the external world changes around the company. Technologies change. Equipment and processes advance and improve. Employee cultural expectations change. Consumer needs also change and evolve. Accordingly, companies must adapt, retrain and develop employees skills to stay current.

Employees who grow along with the company, develop new/emerging skills and perform well should be rewarded with opportunities, money and continued employment regardless of age, gender, race, etc. This is the main concept of an end-result oriented performance-based system. In addition, companies need to maintain good information exchange with all employees, particularly those who are falling behind.  Maybe they need more time to learn, maybe they don’t want to learn and change, or maybe they want to move into a more comfortable, less demanding area of the company.

Status quo vs. let’s change everything

During this process of change and evolution, dynamics develop inside the company. As new employees join the company over time they come in and begin to make their own observations and changes.  Conflicts can naturally develop between experienced, longer service staff who have built their ways of doing things and less experienced employees who have little loyalty to the way things have been done in the past.  Though it is not always so, long service employees can take offense and develop distrust.  Newer workers are seen to “messing thing sup” -they don’t know “how it is.” In its pure form, it’s more a perspective issue than an age thing. This dynamic is easily addressed with communication and attention if you intervene early.  The problem is that many companies are oblivious to the “camps,” choosing up sides and negative social issues that distract employees. Significant damage in employee relations can be done when this dynamic is well-entrenched. It will lead to unplanned turnover by employees who want a professional, healthy culture.

The solution is to intervene early and purposefully create the kind of positive work culture. One that encourages communication among various employee groups; is accepting of varying styles; encourages everyone’s focus on company goals and finally, makes sure training and staff development keeps up with the times.

Copyright 2012 updates 2023 Benoit Consulting, LLC all rights reserved