Why are Star employees, too, getting fired?

Ad agencies often fire their best employees

Not long ago, a Director of Human Resources sent me a person she called a star. I asked why she would be sending me such a high quality employee. Her response was startling - this person’s account was leaving the agency and she was so good that she wanted to help her find new work quickly.

The person she sent me was an account supervisor; she was at a large agency where there were actually many, many people at her level. Surely she was better than others with her same level and title. When I asked why a star would not be placed on another account, I was told that that kind of move required too much effort.

About two weeks ago the same thing happened with a much more senior person. He had been with his agency, one of the top ten, for about twelve years. He was promoted about every two years and was responsible for running several major accounts and had been rotated to run a new business pitch; the assumption was that if the agency won the account, he would be running it. The agency won it. 

Several months after winning the account, the agency was told by the client that they wanted the account moved to another city where the agency had an office. Unfortunately, this person's personal situation precluded his relocation. Consequently, his appointment was terminated (in fairness to the agency, he was given a six-month notice). 

This is another case of "too much trouble"; surely there is an account where someone with his stellar credentials could have been moved on to. Stars like this person should not have to worry about their jobs.

Part of the problem is the way accounts operate under the current fee system. Before fees, rotations were common at every level, from juniors all the way to the most senior account, creative, media and strategic leaders. Many agencies were proud of their rotation system and it was often brought up in initial client staffing meetings. 

Rotations helped employee retention and were generally good for business. Consequently, all an agency had to do was go to the client and tell them that it was time to rotate even their most senior account people (who were moved less often than the more junior employees. 

Now, under fees, the client is actually in charge of his own business, has gotten close to the agency contact, and can fight back: “We are quite happy with ‘Jibike’ and we are paying for her”. It’s quite difficult under these circumstances to protest, or make changes. It means that agency management, including HR, must commit to spending time and effort to make personnel changes happen. Consequently, it is easier and requires less time and administration to let the status be quo.

As a result of this procedure, there are some very good people out of work in advertising, and other marketing communication business tools.

The irony is that recruiters still get assignments where the client company insist on candidates who are currently working. In this day and age of the "rent and employee" attitude, this policy makes no sense. Today, it is a great incongruity in the business that often, an out of work person may be better than those who are working. 

Some star employees have been fired and fired up, going ahead to start their own thing, and making a huge success of it, sometimes surpassing the achievements of their former employers. Other star employees haven't been so lucky, only fading away after they're eased out; they sometimes allow the disappointment to overwhelm them.

A classic scenario with which people in STB can readily relate: John Dooner, Jr. moved up from his job as worldwide Chairman/CEO of McCann-Erickson to become Chairman/CEO of holding company parent IPG in 2003. Dooner promotes Jim Heekin, a much beloved and highly respected exec at McCann and within the industry, to replace him in that role at McCann-Erickson.

Dooner was soon fired as Chairman/CEO of IPG by its Board of Directors. Dooner cuts a deal to get his old job back heading up McCann-Erickson and, in that process, Dooner summarily fires Heekin to make room for himself and Jim’s out of work.

Of course, things don’t usually work out this way for most, but…you never know!

By Paul Gumbinner, President and Owner, The Gumbinner Company; contributor, blogger, and photographer.

Edited by ‘Dele Dele-Olukoju, Marketing Communication strategist and publisher of the online Marketing Communication Digest. He writes from Lagos, Nigeria. @deleolukoju +234 807 481 2389.