thinking outside the cubicle

8/3/2019 Thinking Outside the Cubicle

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O U T S I DT H E C U B IC L E

Agenc ies are tak ing innovative s teps to reta in staff , f rom set t ing up

thei r own 'univers i ties ' that of fer ennployees cre di t to tak ing them on

Bahamian c ru ises . Tanya Lew is highl ights com pan ies that are

creat ing v ibrant cul tures to keep thei r turnov er rates low



C A R E E R IS S U E 2 0 0 7

taff retention is perhaps the most pressing challenge facing

heal thcare ad agencies today. It's a talent-driven business,

and business is booming. But the talent pool is woefully shal-

A seemingly never-ending need to recrui t only compounds

of re tent ion.

"Management needs to have a mindset that asks why people should

and stay andnot think it's a privilege to be hired," says Larry

chainn an andCE O of Harrison & Star. "The labor environment is

too competitive for that kind of arrogance. [We need to think

we can do to make this a more attractive place. Everyone

in a half hour and get interviews."

Cumulative cost of turnover is enormous—it's expensive, though

the financial expense pales in comparison to the

toll it take s on clients and culture,

"An agency is an assembly of minds, and when you keep changing

the time no one kno ws who you a r e , " says AbelsonTaylor

EO Dale Taylor, "it's important to maintain a core fora

if we're going to differentiate ourselves. Turnover [irritates]

to no end. It's one of the most common reasons why an agency

and one of the most common reasons why we get hired."

2 6 years a g o . has 3 5 0 employees andvery low

8% for creative and account people and zero at the

is 17 years for creative directors and 13

for account directors.

Corbett Worldwide HeaUhcare Commuications has maintained

and largest client Bristol-Myers Squibb for 45 years. The

has been

30 years. One Corbett employee recently retired after

years of service. "We value clients for life and employees for life."

who reports less than 10%

is just under 200). "We become the history and

on brands because clients are switching employees con-

They rely on us to do that."

Ed Wise, chairman andCE O Chne Davis & Mann, anticipates about

1 5 % voluntary turnover this year (the 23-year-old agency employs

about 850 people). Average executive management tenure is 12-14

years. Wise agrees, "clients want institutional knowledge and a stable

team." He also notes that employees take "considerable training invest-

men ts" with them w hen they leave.

Harrison & Star has 2 7 0 employees, and turnover for the first half of

2007 is 7% (down from 12% in 2006). "Hie majority of employees

(52%) have 1-4 years tenure, 30% have been there a year or less; and

1 8 % have 5-20 years tenure. Star says out-of-pocket cosl (excluding

hours and salary of internal HR staff) for hiring is currently $5,000 per

employee. That's lower than past years, in part because employee

referrals have been as productive as professional recruiters. ITiough

this is just on e m easure of expense, it's clear that the cost of churn— on

all levels—add s up quickly and rises exp onentially with agency size.

Gob le & Associates currently has the highest number of employees

in its 25-year history (68), and EVP and principal Mark Goble reports

"little turnover." Abou t one-third of the staff has been around 10-plus

years. For Gobie, time is "probably more expensive" than other

turnover costs because "time spent interviewing people is time taken

away from clients."

Paho Com munications enjoys less than 10% turnove r (workforce is

about 125). Average tenure is just under 5 years, which is good consid-

ering the agency is less than 9 years old. President Mike Myers believes

"expenses are secondary to the disruption to chemistry, approa ch and

work product."

Culture is crucial in retaining staff. Agencies that recognize the

importance of culture and invest in its cultivation are well positioned to

weather the chum of a lopsided job market as well as the mercurial

nature of the healthcare industry they serve.

"Top down imposition of culture is not as effective as culture that's

built from th e staff," says Anne D evereux. CEO of both L yonHeart and

TBWA World H ealth. "Iftu rno veri s high, you [must] constantly teach

the values rather tha n having staff constantly creatin g value."

Headcount at LyonHeart (formerly LLNS) is just over 200, with

it underwent the dramatic cultural change from LLNS to LyonHeart. A

the name, encompassing the agency's increased inctusiveness andempowerment felt throughout all levels of the agency

SEPTEMBER 2007 M M A M 67



T H I N K I N G O U T S ID E T H E C U B I C L E

AbelsonTaytor outgrew the

Chicago office it occupied sin

the earty 1980s. They recent

moved into a new 100,000-

square-foot office in the hear

Chicago's Loop. AbelsonTaylopresident and CEO Dale Taylo

told MM& M that he was excit

ahout the move. 'It's going to

a lot of fun hecause we are g

to he ahle to design this one

our own way'

luniover u nder 15% (down from 17.5% in 2006). The agency i s 2 5 years

old, and average tenure is about 9 years. Last year marked a dramatic

cultural revolution that resulted trom applying TBWA's "Disruption"

process to the agency. Changes include the new name, which D evereux

notes reflects"relentlessness. passion and never settling for status quo."

A junior copywriter conceived the name—testimony to increased

inclusiveness and emp ow erme nt at all levels within the agency.

"Advertising is [about] moving people from unaware to actively

involved." Devereux notes. "A good agency does that when looking at

retaining people."

LyonHeart interviewed everyone—current clients, former clients

potential clients and employees—to determine strengths and weak-

nesses. "We had to look hard at ourselves [and] ask tough questions."

Devereux says. "The transformation could oniy happen if people in the

company could identify what [change] meant and how to make it hap-

pen. When people own the change, they can't leave because they're

leaving themselves.' Devereux adds that a "more familial environ-

ment" h a s resulted. "O ur culture went from a lemming-Hke behavior to

really em pow ered." she says.

Two-and-a-half years ago Palio also did some soul searching.

Though all outward measures indicated a very strong agency, Myers

says leaders felt something "wasn't right." A consultant surveyed

empioyees. with the ultimate aim of defining employee-driven values.

Corbett recognizes major anniversaries with company-wide events.They give "enormous checks out in a corny Price is Right kind of way'

"We felt we weren't going lo be where we wanted in 15 years

alone 3 years," Myers says. "[The process helped us unders tand] w

we stand for. who we are. and what (employ ees wan ted) us to be ab

Usually, [coming] up with values [is] management buzz trying lo pband-aid on something. We've gone lo opposite extreme."

Palio emp loyees defined values as great work: teamworkicontin

learning;fun ;and work/life b alance. M yers says the agency's strong

ture was made "stronger [with these] reference points."

Wise believes culture has an "enor mo us" impact on retention.

have well-defined values because it's imp ortan t to be explicit about

ues and what defines culture." he says. "We're trying to build that

the interviewing process."

Goble notes that eulture "one of biggest reasons" talent seeks

slicks with his agency. "We provide autonomy and freedom to exc

he says. "There aren't a lot of barriers to [success]. We've proven as

size has increased thatw e

can scale this approach."Taylor believes independence helps maintain a healthy cul

"On ce you 're part of a holding company, your goals are someone e

goals, which are often financial." he says. "That puts a different spi

how employees are treated. When we lose an account, no one tells

cut cost.'"

Devereux notes, "ihere are [many] business cases that prove a di

correlation between employee satisfaction and profitability." She

Omnicom executives leam about the "relationship between good

ture and good business" each year from professional service firm m

agement expert David Maister.

"Solely financially driven people might believe the harder pe

work, the more profitable the business will be." Devereux expla

"(When under] huge pressure to deliver profit to shareholders, you

become blinded by that goal. You're looking to squeeze numbers

work people longer. It becomes very demanding top down and s

sided. It's easy to dro p the ball on long term inv estmen ts like buildi

solid culture ." \I

E l e m e n t s o f a S o l id C u l tu r e *

Commitment to career development is an extremely impor

cultural asset. Thirty-year-old Draftfcb Healthcare emp

about 4(X) people in New York and has less than 15% turno

COO Harold C orbran says, "the organization is extremely loya

making sure that people feel comfortable and deve lop a career

M M A M SEPTEMBER 2007




Draftfcb president and co-CEO Dana Maiman adds that career

pathing and proactive career management are top priorities. '"[New

employees] cannot believe we proactively approach them and tell them

it's time lo becom e m ore well-rounded, or that we would approach the

client and disrupt something that is working w ell." she says. "It's ha rder

for us because we [must tell] the client that it's time for [an employ ee] to

move on. but this prevents [em ployee resignations]."

Star also prefers to move people and then "man age client disappo int-

men t" rather than lose talent. "You have to listen when an employee

needs a new challenge." he says.

Open-m indedness is necessary to help people navigate careers. "It's

not just looking at folks from an up ward mobility standpo int." Maim an

says. "[An employee who is] very successful may want to try something

else. We do (a lot of] home-growing, but it's first having open-minded-

ness to move people b etween disciplines and [global netw ork] offices."

Listening is critical to understanding w hat employees want and need.

"The biggest secret to retention is to listen more than talk," Devereux

says. "By listening, we've been able to help individuals achieve career

growth goals. That m akes everybody so much hap pier to be here."

Training programs are key to career development and retention.

Most of AbelsonTaylor's account staff and copywriters are home-

grown. The agency has many formal training and mentoring program s.

which Taylor says are "important to pass on knowledge and a good way

of keeping [junior empioyees] in touch with the culture."

CDM reports that employees who participate in CDM University

(CD MU ) are more likely to stay. In 2006. empioyees who left CDM

received only 6 credits (52% lower than average), and those w ho were

prom oted received 17 CDM U credits (37% higher than average).

Harrison & Star U niversity teaches both job skills and m anagement

skills. "People are [often] promoted because they have good technical

skills, but no one has taught them how lo manage," Star says. "People

leave because they hate their boss—not the executives, the company or

the client. The better we becom e at [training managers], the better we

will be at retentio n."

Goble & A ssociates conducts weekly lunch-and-leam programs for

younger account managers. Some employees also attend Dale

Carneg ie Training to learn how to presen t themselves and th eir ideas.

Continuously learning and adapting is a core vaiue at Corb ett. and its

senior people play a big role in teaching. "So much of the knowledge is

expe riential." Eisen says.

Taylor believes that culture evolves from a solid core. "I don t think

you build a culture by creating an implementation plan." he says. "You

buiid culture by evolving ways that work for you and by making sure

everyone understands how we will behave. One reason this is possible

is because senior people have stayed so long. I don't think I eould

change it now if I wanted to."

Open comm unication is a tenet at Gob le & A ssociates, which does-

n't have voicemail or doors (save the bathroom and conference roo m).

"We're in the communications business." Goble says. "A client should

be able to call and talk to people. That rolls into internal communica-

tions that we foster. Weine ent peop le to talk to each other...,From top

down, [we have] a communicative environment."

Star believes in collaboration and getting to know employees. "It

1 0 T i p s f o r R e t a i n i n g S t a f f

1 . Offer stability"People have a p ret ^ firm k now ledge that if they're working hard and

performin g, they're not g oing to get fired because we lost an

a c c o u n t . " —Dale Taylor. AbelsonTayfor

2. Train ef fect ive, invo lved m anag ers"Senior managem ent shou ld be seen as people who are involved in

client work— who roll u p their sleeves, take p art in con versations and

contribute to the work prod uct— not people in som e ivory tower."

— Larry Star, Harrisor) & Star

3. Recog n ize emp loyees"Recognition is taken to the po int where it's not only a fun event, but

also a meaningful event. Telling people that they do g oo d jo bs

everyday a n d recogniz[ing] them on a professional leve! is im po rtant.

—Harold Corbran, Draftfcb Healthcare

4 . Listen to em ployees"Listening creates a n atmo sph ere where peop le feel safe to speak

u p . " — Larry Star, Harrison & S tar

5. Be w i ll ing to ch ange"Be willing to experiment with wh at y o u think may wo rk. Often

co rpo rations are unw illing to try. [Our] culture [is such that] w e're

willing to try."

— Mike Myers, Pafio Communications

6. Prov ide opportun i ty"Giving emp loyees o ppo rtunities try other parts of the business

creates mu ch mo re satisfaction."

— /\nne D evereux, LyonHeart/TBWA Worldhealth

7. Define values and live by the mA n organ ization m ust live wh at it says if s abou t, Our mo tto is life is too

short. We're about helping people better understand the choices they

have with medications. It's a n important j o b . We need to w alk th at talk

W e do a lot of charitable donations, a n d we're very public about that."

—Elaine Eisen, Corbett Worldwide

8 . E m p o w e r e m p l o y e e s to m a k e d e c i s i o n s

"We do a iot of things to try and push do wn d ecision making to level

where it should be. If someone is working on an accoun t that

employee feels [a decision needs to be m ade] they're empo wered to

do that."— Larfy Star, Harrison & Star

9. Talk abou t the im po rtance o f the w ork"We have a n advantage in this indu stry dealing w ith Issues that relate

to life and h ealth. Remind people that they're helping peop le survive

and have a better life."

— £ d Wise, Ciine Davis & Mann

1 0 . P r o v i d e c o m p e t i t i v e c o m p e n s a t i o n a n dgood benef i ts

" I don 't think a ll these people would com e to w ork every day if I didn'tpay them." —Mark G oble, Goble & Associates

70 M M & M SEPTEMBER 2007




blows me away that people c a n be s o focused on one dimension and n ot

see their employees as human beings that they might want to get to

know." h e say&

Many agency leaders agree that recognition is essential. Corbett has

recogn ition programs w hich are tied to its nine shared values. A wardsare monetary and publicly celebrated. The agency recently started its

own internal awards program cal led the "Gal le ry Awards." Work was

voted, on and winners were unveiled at a local art gallery.

Palio also displays its wo rk. Every two weeks, pieces rotate a round

the office. "Showcasing our work and stimulating staff is important."

Mye rs says. "We show w ork that we did 8 years a g o , 8 minutes ago."

Corbett also recognizes major anniversaries in company-wide

events. "We give people enormous checks." Eisen notes. "It ' s the cor ni-

est Price is Right thing you can image. We make a big deal of people

who invest in us. Comp ensation is structured to award employees w ho

invest in us—it's rooted in long-term programs like profit sharing,

rather than year-end bonuses."Obviously, competitive compensation and benefits are requisite.

though many believe money isn"t a main reason that employees leave.

"A t the end of the day. money is not that critic al." Star says. "I t 's sort

of the price of entry. You have to be comp etitive. We are in a service

business, and people w ork very, very ha rd—som etimes insanely hard.

Spot bonuses and comp time show people that you appreciate it. and

you're paying attent ion."

Devereux notes, "there 's always oppor tunity to get more money

somewhere else." and she believes people typ ically make jump s for

money whe n they "do n't understand the value of the culture or they're

too young to have experienced any difference."

Often , problems with work/life balance cause talent to look for newemployers. "I t 's usually not a bout mo ney, and it 's usually not about the

nature of the work," Star says. "It 's about being stretched too th in.

Someone recently told me that when talking to her boss about her

work/life balance, her boss [told her] to outsource things. He wasn't

talking about her work— he was talking about her family."

Star is constantly lo okin g at ways to relieve pressure, and he doesn't

wnnl employees lo conclude Ihat the onlv option is to leave if they're

Harrison & Star uses fun events as a way for fellow employees to bond

with each other and blow off steam

Cline Davis & Mann em ployees who participate d in CDM University w

more likely to stay with the agency and/or receive a promotion

unhappy abou t wo rk cond itions. "Peop le can change things here."

says. "[Bu t if you do n't] ta lk, it 's not going to change. A big part o

job is getting people to express what they want. Maybe 1 can wo

out. Th e only th ing we won 't change is values. I'm nol wed to proce

W ork/life balance is also a priority at Palio. "I don't believe you h

to wo rk 180 hours a week to d o great wor k or have successful op

tions," Myers says. "I f y o u don't need to be here, get out o f here bec

we're lo oking fo r balance. We've been able to attract and retain in a

ferent way because of our belief in that."

Most agency leaders are aware that l itt le things go a long w a y . A

sonTaylor has free lunches every Friday. P alio provides an array o

stuff, including a game room , guitars and a piano. Parties are imp orfor bonding, a s well as blow ing off steam. Sup porting charitable ca

fosters altruism and also helps employees get to kno w each othe r.

To celebrate it 's 25th anniversary this year. Go ble & Associates

its entire staff and their guests on an all-expenses-paid Baham

cruise. "The success of the agency depends on its people," Goble s

"[T he cruise was] a reflection of th e apprec iation we have for them.

longevity we 've had with clients is direct result of employee reten tio

C o m e b a c k K id s

Perhaps the ult imate test imony to culture is the return of for

employees. D raft f cb act ively cult ivates re-hires, and 15 returne

the last year. "I f [employees] leave, usually it 's short term ." says Domanico, Draft fcb's chairman. co-CEO and worldwide crea

director. "Some times they need that experience. On ce they get a

of somewhere else, they want to come back."

Six former employees have returned to LyonHeart in the last

and a half. Devere ux ih inks the biggest challenge to retentio n is to

tinuous evaluation and improvement, noting that it 's easy to "

pockets of u nhappincss" in big agencies.

"[R ete ntio n] reinforces to management that we have the right va

and that we're doing things r ight." Devereux says. "Aside from bo i

l ine. we get very little day -to-day feedback about how we're do ing

retent ion is one of th e looser measures of doing things right." •

thinking outside the cubicle

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