ements that arrest or retard an industry’s ability to innovate are doing an injustice to the industry, the companies and the countries in which they work. Short-term gains for a few may result in long-term losses for everyone.

2. Everyone in an organization should add value or be released. Pay should be based on value contributed to the organization in current time – not on continuous recognition of value generated in the past.

Old-timers may not be able to generate the same amount of sales value or productivity as before, and their compensation could be adjusted accordingly.

But given the option of working in new ways, creating new value and earning a new (sometimes lower) income, many staff will choose that route over leaving

Every organization must reckon with ‘old-timers’: staff who have served many years but may be past their most productive prime.

What should you do with these folks?

Firing them seems a mercenary way to run a business. But keeping them on staff can demotivate and demoralize others, increasing your payroll without improving profits.

A journalist recently asked me point-blank, ‘What should companies do with their “dead wood”?’

My answer was a question; ‘Is the “dead wood” raw material for valuable antiques, or is it dangerous rot?’

Many long-serving staff have a wealth of experience, customer knowledge and good ideas. They can be valuable in training new staff, contacting and caring for customers, spreading goodwill for the company through public relations or community outreach programs.

Long-serving staff may not be able to master the latest technology or move at the current pace of change, but their knowledge and proven skills could still be harnessed for the benefit of all. These team members are raw material for creating treasured and high-value antiques.

One large company offered senior staff an option of retiring early or working in new capacities as recruiters, staff trainers or customer service personnel. Each of these positions offered a lower level of salary but recognized and leveraged the staff members’ years of experience. Half of those offered the new positions stayed on, adding new value to the organization. The other half moved on.

Another company offered no salary at all, but provided office facilities and a generous incentive program so that older staff could contact former customers to help stimulate or reactivate their accounts.

The success rate was tremendous.

Each conversation brought together a long-serving staff member with a long-standing (but no longer active) customer. Rapport was easily established as both sides shared experiences and insights about the company, its services and products. Many of these heart-to-heart conversations resulted in reactivation of accounts, new purchases, new profits and plenty of new ideas for the company.

From old wood came precious antiques.

But what about long-serving staff who have become cynical, resentful and demoralized? What about those who speak badly about the company and complain openly to customers and other staff?

These employees are toxic and contagious. They are the unhealthy rot that can destroy the competitiveness and the culture of your organization. Such ‘rotten apples’ should be excised as quickly and cleanly as possible. To keep them around through some misguided interpretation of loyalty is sheer lunacy.

If someone is earning money from an organization, they owe their active loyalty to the current health and future well-being of that organization – period.

Two points to note: (warning – may be controversial)

1. The commercial world is changing too fast for inflexible employment entitlements. Union agreements that arrest or retard an industry’s ability to innovate are doing an injustice to the industry, the companies and the countries in which they work. Short-term gains for a few may result in long-term losses for everyone.

2. Everyone in an organization should add value or be released. Pay should be based on value contributed to the organization in current time – not on continuous recognition of value generated in the past.

Old-timers may not be able to generate the same amount of sales value or productivity as before, and their compensation could be adjusted accordingly.

But given the option of working in new ways, creating new value and earning a new (sometimes lower) income, many staff will choose that route over leaving e

the company through public relations or community outreach programs.

Long-serving staff may not be able to master the latest technology or move at the current pace of change, but their knowledge and proven skills could still be harnessed for the benefit of all. These team members are raw material for creating treasured and high-value antiques.

One large company offered senior staff an option of retiring early or working in new capacities as recruiters, staff trainers or customer service personnel. Each of these positions offered a lower level of salary but recognized and leveraged the staff members’ years of experience. Half of those offered the new positions stayed on, adding new value to the organization. The other half moved on.

Another company offered no salary at all, but provided office facilities and a generous incentive program so that older staff could contact former customers to help stimulate or reactivate their accounts.

The success rate was tremendous.

Each conversation brought together a long-serving staff member with a long-standing (but no longer active) customer. Rapport was easily established as both sides shared experiences and insights about the company, its services and products. Many of these heart-to-heart conversations resulted in reactivation of accounts, new purchases, new profits and plenty of new ideas for the company.

From old wood came precious antiques.

But what about long-serving staff who have become cynical, resentful and demoralized? What about those who speak badly about the company and complain openly to customers and other staff?

These employees are toxic and contagious. They are the unhealthy rot that can destroy the competitiveness and the culture of your organization. Such ‘rotten apples’ should be excised as quickly and cleanly as possible. To keep them around through some misguided interpretation of loyalty is sheer lunacy.

If someone is earning money from an organization, they owe their active loyalty to the current health and future well-being of that organization – period.

Two points to note: (warning – may be controversial)

1. The commercial world is changing too fast for inflexible employment entitlements. Union agreements that arrest or retard an industry’s ability to innovate are doing an injustice to the industry, the companies and the countries in which they work. Short-term gains for a few may result in long-term losses for everyone.

2. Everyone in an organization should add value or be released. Pay should be based on value contributed to the organization in current time – not on continuous recognition of value generated in the past.

Old-timers may not be able to generate the same amount of sales value or productivity as before, and their compensation could be adjusted accordingly.

But given the option of working in new ways, creating new value and earning a new (sometimes lower) income, many staff will choose that route over leaving

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Another company offered no salary at all, but provided office facilities and a generous incentive program so that older staff could contact former customers to help stimulate or reactivate their accounts.

The success rate was tremendous.

Each conversation brought together a long-serving staff member with a long-standing (but no longer active) customer. Rapport was easily established as both sides shared experiences and insights about the company, its services and products. Many of these heart-to-heart conversations resulted in reactivation of accounts, new purchases, new profits and plenty of new ideas for the company.

From old wood came precious antiques.

But what about long-serving staff who have become cynical, resentful and demoralized? What about those who speak badly about the company and complain openly to customers and other staff?

These employees are toxic and contagious. They are the unhealthy rot that can destroy the competitiveness and the culture of your organization. Such ‘rotten apples’ should be excised as quickly and cleanly as possible. To keep them around through some misguided interpretation of loyalty is sheer lunacy.

If someone is earning money from an organization, they owe their active loyalty to the current health and future well-being of that organization – period.

Two points to note: (warning – may be controversial)

1. The commercial world is changing too fast for inflexible employment entitlements. Union agreements that arrest or retard an industry’s ability to innovate are doing an injustice to the industry, the companies and the countries in which they work. Short-term gains for a few may result in long-term losses for everyone.

2. Everyone in an organization should add value or be released. Pay should be based on value contributed to the organization in current time – not on continuous recognition of value generated in the past.

Old-timers may not be able to generate the same amount of sales value or productivity as before, and their compensation could be adjusted accordingly.

But given the option of working in new ways, creating new value and earning a new (sometimes lower) income, many staff will choose that route over leaving

ntful and demoralized? What about those who speak badly about the company and complain openly to customers and other staff?

These employees are toxic and contagious. They are the unhealthy rot that can destroy the competitiveness and the culture of your organization. Such ‘rotten apples’ should be excised as quickly and cleanly as possible. To keep them around through some misguided interpretation of loyalty is sheer lunacy.

If someone is earning money from an organization, they owe their active loyalty to the current health and future well-being of that organization – period.

Two points to note: (warning – may be controversial)

1. The commercial world is changing too fast for inflexible employment entitlements. Union agreements that arrest or retard an industry’s ability to innovate are doing an injustice to the industry, the companies and the countries in which they work. Short-term gains for a few may result in long-term losses for everyone.

2. Everyone in an organization should add value or be released. Pay should be based on value contributed to the organization in current time – not on continuous recognition of value generated in the past.

Old-timers may not be able to generate the same amount of sales value or productivity as before, and their compensation could be adjusted accordingly.

But given the option of working in new ways, creating new value and earning a new (sometimes lower) income, many staff will choose that route over leaving

ements that arrest or retard an industry’s ability to innovate are doing an injustice to the industry, the companies and the countries in which they work. Short-term gains for a few may result in long-term losses for everyone.

2. Everyone in an organization should add value or be released. Pay should be based on value contributed to the organization in current time – not on continuous recognition of value generated in the past.

Old-timers may not be able to generate the same amount of sales value or productivity as before, and their compensation could be adjusted accordingly.

But given the option of working in new ways, creating new value and earning a new (sometimes lower) income, many staff will choose that route over leaving employment altogether.

Key Learning Point
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As the population and workforce age, many companies can benefit by taking an innovative approach to keeping their long-serving members on staff. This plan for creating and delivering new value should be initiated early so that old wood can be transformed into beautiful and valuable antiques...before it rots.

Action Steps
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Review how your organization currently harnesses the experience of your longest-serving staff. Create a focus group of current and former employees, customers and suppliers to brainstorm together. Find new ways for old-timers to create new value for the future.