"Another Regional Manager Quit in NYC...Again!" - December 18 & 25, 2019 Edition
Stephen Says Column




Dear Stephen:

I am a VP for the northeast for a major furniture manufacturer. We have a big sales region to cover, lots of people to manage and a huge sales goal to hit. I am known as a demanding task master, I work hard, and I expect my managers to do the same.

I just had a NYC regional manager resign after only one year on the job. This is the third time I have had turnover in as many years. Each one that has resigned has not met their sales targets, and frankly I'm not sad to see them go, yet I cannot afford to keep churning through managers. It always affects morale when a manager leaves, and I have even seen some of my sales team leave along with the manager.

We have a large HR department back at HQ that is mostly ineffective, with internal recruiters trying to justify their jobs by spending a fortune on Linkedin ads that do not bring results. As a last resort, they'll occasionally engage a local Midwest contingency agency that has no brand recognition in NYC and little marketing clout when recruiting here in N.Y. The few people they ever do send are already unemployed because some other company did not want them — hardly worth paying a fee.

Back to me. Three managers quitting in three years now means it is my head on the line. With that record, I might be at risk of getting fired. NYC is a tough market with difficult dealers and competition from every direction — including competition for top talent — but my boss is starting to think that is an excuse, not a reason. I know I can turn the tides in NYC if they would give me the budget for a real search or be more creative in their approach even using our own internal recruiters. For instance: Sign-on bonuses! How can I approach my own boss (VP of sales) or HR to get the resources I need? What am I doing wrong?

Signed,

At Risk of Getting Fired
 

Dear At Risk,

Wow! A very loaded question, and I have many different answers. Let me share some:
 
  • Speak to your boss about lowering your unattainable sales goal. You and your managers are defeated from the first day you start work. Start there by making a better job, and you'll have less turnover.
  • Find some better dealers so your team doesn't have to find all the big projects. Why are major manufacturers so afraid to open new dealers in NYC?
  • Push your boss for the financial resources to recruit the best person from inside or outside the company. You mean to tell me you work for a major manufacturer in what should be their biggest market, and they refuse to give you a substantial recruiting budget? Most Midwest companies are afraid of NYC, and you can push them for more. Even the top three tier companies in Grand Rapids haven't quite figured out NYC. That is why many of the local NYC managers can manipulate their Midwest bosses. It seems you have not learned the tricks: "It's NYC we are different." "Salaries are higher here." "Business is tougher." "These people are vicious!" The beauty is you wouldn't be lying. NYC is a tough market and as such, you deserve the resources to manage it effectively.
  • Try and promote from within. Even if you have to relocate a top performer from another part of the country, a person who really knows your company may have a greater chance of success. Find that person in Dallas or Detroit or Atlanta who wants to step up to the challenge of NYC. As Frank Sinatra said, and many still believe, "If you can make it here, you can make it anywhere."
  • In today's tight employment market, a sign-on bonus can help close the deal. Good candidates may be walking away from some incentive or bonus money, and they need you to make up for it.
  • Finally, and as self-serving as it sounds, use a recruiter local to your market rather than HR's internal team or whomever they recommend. I may be tooting my own horn for a moment but it is important not to discount the value of a head-hunting firm that is firmly in the market and knows all the players. Your boss will complain that it's too expensive, but is it really? The price tag is a baseless excuse if you are able to come away with a great employee who will stay with your company for the long haul. If you go that route, make sure you hire a firm that offers a two-year guarantee so if the employee quits or is fired, you get a free replacement.

Your dilemma of turnover in NYC is not unusual but your inability to get the resources you need to succeed is of great concern. You had better come up with a plan for 2020, but quick, or, as you allude to in your question, you'll be the next to go. Hey, three strikes, and you're out!

Stephen