By Jim This
A source of constant debate in human resource circles is whether maintaining a workforce of tenured employees is a source of strength or a detriment. This discussion has intensified recently as economic recovery has encouraged employees to consider employer changes for better opportunities.
We are all familiar with corporate dinosaurs like General Motors, whose employment retention practices contributed to its loss of competitiveness with Asian challengers. At the same time credit union boards and CEOs often hear the member lament that, “I always see new faces – no one remembers me.”
On the pro-tenure side proponents argue that long-term employees offer the following advantages:
- They understand the organizational culture
- They are really good at their job
- They are well-trained
- They know the members and have developed a strong rapport with them
- They are dedicated to the credit union and its mission
Those favoring greater turnover believe that tenured employees are more expensive, and in some cases, may be roadblocks to corporate change. Major concerns cited are the following:
- Increase in compensation expense – not commensurate with marketplace
- Performance declines over time – driven by obsolescence and/or diminishing interest
- Innovation wanes as comfort with the status-quo increases
- Reluctance to change creates resistance to new ideas
- Satisfaction with past success decreases the willingness to take risks
A Short-Sighted View
As with almost everything related to people it is short-sighted to take a unilateral view of tenure. Many tenured employees exhibit all the positive factors listed above and are change agents and lifetime learners. Others enjoy the security and comfort their experience provides and are unwilling to rock the boat.
For the record, tenure does not equate with age. A person who is 35 may have 15 years of experience with a single employer.
Managers must evaluate each employee’s contribution individually. Productive long-term employees should be celebrated and challenged with new opportunities. Those whose performance has stagnated have to be coached and energized. If coaching does not result in improved performance transition strategies need to be pursued.
Coaching works on behavior not personality. Effective coaches describe the behavior they find problematic and help create specific alternative behavior they expect and will support. This may include training, changes in job duties, participation on innovation teams or product enhancement. Increased engagement is recognized – unwillingness to change is not tolerated.
In the final analysis successful credit unions strive for a balance between tenure and new blood. The lessons and expertise of long-term employees works best when it is questioned by new eyes.
James This is a nationally recognized consultant, facilitator and trainer in the areas of strategic planning, leadership development, interpersonal communication and marketing. He is one of the founding partners of The Paragon Group – one of the most respected consulting firms in the credit union industry. Jim has helped companies for more than 25 years.
Jim has spent his career educating credit union volunteers and staff. His programs are widely praised for their outstanding content and Jim brings his stories and sense of humor to make the presentations meaningful and interesting.
He has held positions with Washington State Employees Credit Union, taught at the University of Southern California, the University of Texas, Permian Basin, St. Martin’s College, South Puget Sound Community College and The Evergreen State College.