As I last week, two tweets on Sunday morning lead me to a lengthy pontification about HR and how organizations treat employees. In part two, I focus on an article shared by Mrs. Y in which we find that the longer you stay in your position, the more money you’re robbing from your future self. I’m approaching the eight year anniversary of the start of my first professional job and just passed the one year anniversary of the start of my fourth. I just ran the numbers: assuming a 2% annual raise (which is probably generous), I’m making nearly 60% more than I would had I stayed in that first job.
Money isn’t everything, of course. I’ve never left a job because I wanted more money (though I’ve never complained about getting more money). Every time I left a job, it’s because I ran out of room to grow my skills and responsibilities or because I was dissatisfied with the organization. In those cases, throwing more money at me would have been at best a short-term inducement to stay. Still, it has been my experience that the best way to get what you want is to leave and go get it elsewhere. This is fundamentally broken. How much productivity does an organization lose when years of experience walk out the door? How much frustration does a person gain when they have to re-learn a new job, a new employer, and often a new city?
The basic issue is that all too often, organizations treat employees as resources to extract value from. Viewed properly, employees are investments that will help the organization grow. I’ve heard managers say “why should I send you to that training? You’ll probably end up leaving.” Of course, the manager is sure he’s right when the employee does leave. But maybe they’d have stayed if the organization was willing to invest.
When an employer gives a big raise or other consideration to an employee, it tends to be in reaction to the employee receiving an offer from somewhere else. “If I give you more money, will you stay?” is a losing proposition. At that point, the employee is already heading for the door. It’s far better to keep the good employees sufficiently happy such that they don’t get those offers in the first place. Of course, some people will always leave, and there’s no stopping that. Prolonging the period of mutual benefit is the best possible outcome.
The notion of loyalty to an employer strikes me as being misplaced. When an employer won’t take proactive steps to aid the development of an employee, why does the employee owe any loyalty? There are good organizations out there that really do try to keep employees on an upward trajectory when it comes to pay and skills. Those that don’t aren’t necessarily bad, but they’re not doing themselves any favors.
Of course, the blame isn’t entirely on the shoulders of the employer. Employees have to understand that their bosses aren’t mind readers. My major regret from my last job is the fact that I wasn’t more vocal about what I wanted from the position along the way. Maybe something could have been done that would have made me want to say “no thanks” when I was offered my current job. Or maybe not. But at least then I would have had to choose.