HOW TO KEEP KEY EMPLOYEES FROM DEFECTING TO A DOT.COM By David A. Chodack Are you concerned about the possibility of losing key employees to some sort of  Internet start-up? Many companies are concerned about this nowadays and for good reason. Everyone from graduate Business schools, to Wall Street investment banks are complaining that the lure of the Internet is draining away their best prospects. Is this likely to happen to you and your company? You should approach the possibility just the way you would confront any other possible problem. Analyze the possibilities and decide what your alternatives are. Then come up with a solution. THE INTERNET IS NOT THE PROBLEM The Internet is not a unique problem. In fact, it is not the problem at all. It is just a possible opportunity. If any of your employees want to take advantage of that opportunity, then the chances are that the real problem is within your company. If the Internet did not exist, then dissatisfied employees would find other opportunities sooner or later, so the first place to look, is within. Is there a reason any of your employees would want to leave for an Internet start-up? Which employees would they likely be?  Is there a reason Internet start-ups might target your company and your employees? If so, which employees would they likely target and why? Are there employees within your organization who have a reason to be dissatisfied? Do you do enough to make your employees feel appreciated? Do you do all you can to make them feel that their efforts are important as well as appreciated? STOCK OPTIONS ARE ONLY PART OF THE APPEAL Most people assume that the reason employees leave to go to dot.com start-ups is money, or rather, stock options., but this isn't always the case. Often, there are other issues involved, such as working conditions and perceived opportunities besides cash or stock options. NEW TECHNOLOGY MAKES WORK EASIER Stanley is a young loan agent. He left a traditional mortgage broker and joined an on-line start-up because he felt the Internet was a natural fit for the loan business.. He doesn't like to cold call and appreciates the fact that the new company feeds him, not just leads, but solid information from the company's web site. He feels this gives him an edge and makes him more efficient at his job. Stanley also likes the atmosphere of working for a young company, full of young, enthusiastic people like himself. He likes the feeling of doing something new and being on the cutting edge. Being young and in a business where stability and loyal to one company have never been the norm anyway, Stanley sees his transition as a natural career move. THE START-UP NEVER REALLY GOT STARTED Robert, on the other hand, is a lawyer who signed on with a start-up, but was too cautious to give up his day job. For Robert the motivation was neither stock options, nor the opportunity to use technology, it was simply getting in on the ground floor as Corporate Counsel. The fact that it was Internet start-up made it even more interesting, because Robert does have an interest in the Internet and the various legal issues it raises, but he would have signed on with a non-Internet start-up as well. Robert's caution paid off, because the start-up never got started. Robert's prospective bosses were never really clear on what exactly, he was to do as Corporate Counsel, or what the company was supposed to do in general. They were never able to attract the funding they needed and after keeping Robert on retainer for six months, working on constantly changing assignments, they finally gave up. THE GRASS ISN'T ALWAYS  GREENER ON THE OTHER SIDE Fred, on the other hand, is a successful software salesman. When a dot.com start-up tied to recruit him, he said, "Thanks, but no thanks." His company had just paid him a fat bonus and given him and his wife a trip to Europe as a reward for his performance. He had also bought a new house and stability was more important to him than the prospect of stock options. These are just three real life examples, but we can use them to make some generalizations about what type of people start-ups are likely to be looking for and why those people might or might not be inclined to accept an offer. From there, we can go on to what you can do to protect yourself and your company, so your key employees won't want to leave. WHAT DO DOT.COM START-UPS HAVE TO OFFER? First of all, ask yourself, what dot.com start-ups might have to offer your employees? In Stanley's case, it was the opportunity to utilize the Internet to do his job better and make more money in commissions. His motivation was an immediate increase in income and a chance to eliminate a part of his job which he found distasteful and unproductive. For Robert, it was a chance to move up and seize an opportunity which did not exist at his existing job.  ARE YOU UTILIZING THE LATEST TECHNOLOGY? What about your company? Are you utilizing the latest technology in the most effective ways? A lot of non-technology companies have found that they must become tech-savvy in order to keep employees and customers happy. If your company is not staying competitive, then you will fall behind and your best employees will naturally start looking for opportunities elsewhere. IS YOUR COMPANY A LAND OF OPPORTUNITY? What about opportunities within your company? If the chance for advancement is not there, then talented, ambitious people will look elsewhere. Do you actively work to seek out, mentor and promote talented people. What steps can you take to make them feel they are being noticed and groomed for advancement? WHO DO DOT.COM START-UPS WANT? Next, you want to ask yourself which employees are most likely to be recruited? Which ones would a start-up want and why? No, it's not going to be your Aunt Ethel's son who you hired as a  favor to Aunt Ethel. It's not likely to be your janitor or your bookkeeper or your file clerks. It will be people like Stanley, Robert, or Fred, people who make money, for you, or for someone else. If you are a tech company, then your engineers and managers are a natural target. But non-tech companies also have to worry about managers and marketers and sales people who can use their skills to benefit dot.com start-ups or almost any other business. These are the people you are most likely to lose and so these are the people you have to keep happy. START YOUR OWN INTERNET COMPANY OR  DIVISION? Do you have the resources and capabilities to start your own Internet division? This what many traditional, non-tech companies have done, but obviously it is not a solution for every company. The same thing applies to stock options and other fancy perks. If your company can afford them and you think it is a good idea to offer them to key employees, then go ahead. But what if you can't afford it? What do you do then? STRONG COPRORATE CULTURES BREED LOYAL EMPLOYEES You work hard to find other ways to keep your employees motivated and loyal. If you have a strong corporate culture and employees - particularly key employees -  feel as though they are a part of that culture, then loyalty can be a powerful factor in your favor.  So can security. It worked in Robert's case, keeping him from giving up his existing job, even though he was ready to jump ship in the future if the start-up had proven successful. With Fred, a combination and security kept him from even seriously considering other offers. He knew that he had opportunities to grow and to earn more with the company he was with. He had a high life style and was not willing to risk it on the promise of something better which might never materialize. GET TO KNOW YOUR EMPLOYEES This is why it pays to know something about your employees - at least the ones who are important to you and your business. What do they like to do? How do they spend their money? What are their goals and ambitions? I am not suggesting that you set up a company wide spy system, or require people to report on their personal lives, but talk to your key employees, find out what you can. The more you know about your employees as people, what motivates them and what turns them off, the better your chances of keeping the ones who really matter. YOU'LL NEVER KEEP EVERYONE You're not necessarily going to be able to keep everyone. There will always be those companies which can offer more than you can and there will be employees who will grab those offers and run. But if you know your employees and more important, care about them and you let them know you care and you listen and respond to their concerns as best you can, then you really should not have anything to worry about. BACK TO BUSINESS ARTICLES PAGE HOME PAGE