Tough economy means tough staffing decisions  for agencies	November 2008

by Steven Niles

Recruitment and retention gets a lot of focus in good times, but for healthcare advertising agencies, finding and retaining strong talent becomes even more critical when times are bad. Talent is key to sustaining the business in tough conditions, according to Rosa Lombardo, director, human resources, Sudler & Hennessey (sudler.com). Speaking at a Nov. 20 meeting of The Healthcare Communication and Marketing Association, Ms. Lombardo talked about the importance of managing an agency’s culture in a challenging economy.

When money gets tight, the temptation is to make staff reductions the first cost containment measure. But layoffs can have significant negative repercussions on those left behind. If the remaining staff loses trust in management, the outcome is less engaged employees who are more likely to seek work elsewhere. The resulting high turnover can have costly consequences of its own.

“An agency is an assembly of minds,” Ms. Lombardo says. “If you keep changing your mind, people don’t know who you are.”

Turnover can irritate clients, and departing employees take with them valuable knowledge and skills when they leave. Turnover also means costly re-training and shifting of responsibilities, which creates stress on the remaining staff.

If job cuts are absolutely necessary, Ms. Lombardo believes that managers must make sure that the affected and unaffected employees alike understand that everything that could be done to protect their jobs has been done. Downsized employees should be treated fairly, and managers must be vigilant in spotting survivor guilt within the remaining staff, who will likely be experiencing low morale. Managers must do what they can to reinvigorate the remaining staff and restore a sense of engagement in their work.

Ms. Lombardo also stresses the importance of understanding the many types of employee, particularly regarding age demographics. Right now, agencies are favoring more mature candidates, who represent a safer bet in terms of skills and knowledge. The large number of retiring baby boomers, however, is putting stress on agencies as these departing agency veterans take with them their knowledge, talent, loyalty, and work ethic. The ranks of Generation X employees taking their place are, culturally, sometimes viewed as lazier than their baby boomer colleagues. Ms. Lombardo notes that this was the group that started the work/life balance concept, and they possess less trust in the future. The segment known as Generation Y, meanwhile, comes with its own set of advantages and challenges. They are hyperactive and interactive. Tech savvy, members of Generation Y are used to immediate gratification and bore quickly.

According to Ms. Lombardo, the challenge for agency managers is to understand the subtleties of each of these groups and to match the right people to the right jobs.