Several talented employees have recently left the architecture and engineering firm Sambian Partners—and the CEO, Helen Gasbarian, has no idea why. Is it a trend or just a coincidence? The firm’s latest defector refuses to tell the head of human resources, Mary Donillo, why he was unhappy..
The exodus of star employees is particularly puzzling because Sambian earned its spot as a top-notch firm by making appealing offers to bright, young talent. Rather than spending years as anonymous assistants to fat-cat partners, junior people at the firm could immediately start making their mark by working on interesting jobs. Designers could choose their own projects and set their own priorities. Over the years, Helen had worked to increase the collaboration among the cutting-edge designers, engineers, and client account managers. The result was a firm known for innovation and leading the “green building” movement. To her, the company felt like a family.
Employees are also feeling the negative effects of the increase in departures and discussing the possible causes—the lack of support structure to get their designs seen and sold, the top-heavy structure of the firm, the absence of a clear career path.
Helen urges Mary to conduct the annual employee survey ahead of schedule to see if that will shed any light on the reasons for the departures. But the self-administered report doesn’t reveal much—overall, employees stated that they’re quite satisfied with just about every aspect of their employment experience. The only negative feedback given was a few scattered comments about deadwood in the project manager ranks, “certain prima donnas” who cared more about winning awards than staying on budget, and occasional weekend or evening hours because someone “higher up the chain procrastinated.”
When Helen gets word of the next possible flight risk, she promotes the employee on the spot. Is that the right thing to do? How can Sambian stop the talent drain?
What would you do?
Comments
HBR’s Expert Commentators (abbreviated)
Helen must answer her wake-up call and grab the helm. She should take a hard look at Mary, who is not safeguarding the firm’s talent. Mary should establish an early-warning system, and when key people leave, she must rerecruit the employees who remain loyal and stay.
Helen must become an attentive listener and spend more time on the floor, checking in with employees and coaching and mentoring other leaders. She should also start a weekly blog to follow up on questions or issues raised in her tours.
I would also recommend that Helen tailor the company’s value propositions as needed, emphasizing benefits based on individual needs, like flexible hours for parents or health club discounts for young employees.
Finally, she should make leaders accountable for attracting and retaining key talent.
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Helen needs to take a deep breath, pull back, and move directly to expose the causes of the exodus, going far beyond deciphering the clues in the firm’s superficial, self-conducted survey.
Sambian’s employees need a forum in which they can speak openly about their discontent. The candid discussions can expose the “triggering events” that impel people to leave, such as a disconnect between the firm’s long-standing focus on innovative design and a more recent concern with profitability.
Mary should utilize third-party firms for surveys and exit interviews, because employees will tell a trusted outsider things they may not feel safe telling an insider like her.
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Helen’s number one job as CEO is to attract and retain great talent, but she’s not doing that. She needs to reestablish stability—and fast.
I’d advise Helen to meet face-to-face with her most talented employees and assure them that she understands their concerns and desires.
She should send bimonthly emails to encourage employee feedback, suggestions, ideas, and complaints.
I’d recommend simplifying the management structure so that Helen can have a better idea of what’s really happening in different areas of the firm.
She should also ensure that everyone knows and understands Sambian’s mission.
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In the wake of multiple departures, promotions and salary increases are no more than Band-Aids. Helen needs to focus on long-term solutions.
I would urge Helen to support a mission and culture to which employees will feel connected. Although people join companies for rational motives (like better compensation and benefits), they stay and work hard for emotional ones. By the time unhappy workers tell their managers what’s going on, it’s often too late.
The most important contributor to employees’ emotional bond with their company is a sense of connection with the firm’s mission. Hold monthly employee-run “mission review sessions” to keep the mission fresh and to allow employees a forum for discussing how it applies to their daily work.
Make sure employees have what they need to do their jobs, whether it’s tools and resources or managerial support.
Commentator illustration artist credit: Wendy Wray
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