Why Are We Losing All Our Good People?

Brett Lowers

Why Are We Losing All Our Good People?

An HBR case study

Summary

The case begins with the resignation of Tom Forsythe, an assistant director of commercial design for Sambian Partners, an architectural firm. Mary Donillo, the head of human resources is quite opposed to Tom's decision. Mary tries to reason with Tom, asking him to stay... offering almost anything she can give him. Tom refuses, stating that their rival firm J&N gave him, "an offer [he] could not refuse." Dejected and confused Mary accepts his resignation, and ponders on what can be done about the ever-increasing turnover at Sambian Partners.

The article then shifts scenes to the break room. Adrienne Perle, an engineer, is talking with her co-workers about the recent leaving of Tom. "It's really a pity when you have someone doing incredibly creative work, and the support structure isn't there to let it see the light of day." Her quips quickly define the sentiment seen throughout the office: people are quite simply, unhappy. Concerned, Adriane's coworker Hal Pope reports these issues with Mary, trying to stop another potential resignation.

Hal's news comes as a shock to Mary. "Are we part of the problem?" thought Mary as Hal describes the scene he just saw moments earlier. At this moment, a decision must be made: does the company ask its employees to take a job satisfaction survey, or does Mary stop the problem in its tracks by confronting Adrianne directly?

The CEO and Mary decide to choose the later, ask Adrianne what is on her mind. After idle conversation the question is asked, "Is Tom Forsythe talking to you? And are these rumors true?" After a few awkward minutes, the truth is reviled. No, Tom is not talking to Adrianne, but she is quite simply unhappy with the current working conditions, mainly from the higher-ups in the organization.

Jumping the gun, the CEO Helen Gasbarian makes a rash decision: promoting Adrianne to a supervisor position. All groups are surprised, but Adrianne still accepts. Mary fights Helen to the end, but the CEO's decision stands. Good points are brought up across the board: Adrianne's new promotion will make the company look desperate, not to mention anger others who are more qualified, while on the other hand losing a 6-year employee would be even worse. Tensions remain high for quite some time.

After all cools down, Mary decides to create an employee survey. These open ended questions are designed to give HR an accurate snapshot of the current morale. I the end, the questions prove to be quite mixed. Everywhere to complete enjoyment to total annoyance is voiced. In the end, this survey gives a good view of what Mary can ask employees on a face-to-face basis, but in the end it is hard to separate the signal from noise.

In the end, it is up to the Sambian directors to find out what is really driving people out the door.

Professional response: review and analysis

Jean Martin, executive director of the Corporate Leadership Council, is the professional opinion of this article. Her advice is that the issue does not fall on "what" Mary is asking, it is "How" she asks it. In situations such as these, large groups of migrating workers can be very harmful, and more often to not managers are to blame. Not because they are doing a bad job. No, it is because they failed to foresee this issue. As a manager, it is important that you conduct "audits" to make sure that your employees are happy. This is known as a "culture audit." Mary's shotgun approach seems extremely ineffective to Jean.

Additionally, Jean feels the corporate culture should be clearly defined, then employees analyzed to see how far do they feel they are separated from these definitions. In the end, making sure that Sambian actively support a mission and culture to which employees feel committed, Helen can see to it that her high performers--and her company--survive and thrive.

Personally, I agree most with Jean on this issue. In the end, though it is important to keep people from leaving on their way out 9 times out of 10 it is quite simply too late. In situations such as these, a pre-emptive strike is necessary. Take out any aggressions early on before they fester into something worse. "Culture Audits" seem the most effective way to combat these issues. Because in this economy, losing one employee is one employee too many.