Trading Profits For Loyalty – Now There’s An Idea!

I recently came across a story about Delta Airlines that, for most large companies, was something you never, or rarely, see. Check this out: the airline reported their first quarter results, and they were scary – a loss of $363 million! Most organizations would be getting their proverbial scissors out to cut expenses, meaning employees, but not Delta.

There were two interesting reasons why they lost that much in a quarter. First, they had a $523 million employee profit-sharing payment they committed to execute, and did in February of this year. Secondly, they reported an $864 million expense related to their new pilot contract. The top tier of the company wanted to make sure they had the “industry’s best pilot contract” to attract only the best pilots and keep the ones they had.

Do the math. If they forego the profit-sharing payment and negotiate a more favorable deal FOR THEM with the pilots, they could be looking at a good chunk of black ink at the bottom line. Instead, Delta was thinking long-term (loyal pilots and employees) versus short-term (satisfying shareholders). They knew that happy, loyal employees would eventually translate into happy, loyal customers, which would bring back those profits and keep those shareholders happy.

Considering the recent cutbacks at various industry organizations (not just radio, by the way), we are again witnessing what appears to be short-term thinking in our business. What if some of those and other related companies looked ahead 5-10 years rather than just to the end of 2023 or sooner, as did this large airline corporation?

Delta is no “fly by night” company (well, literally they are, but I digress!). They have been incorporated for 95 years and around for 98. They’ve seen lots of ups and downs, and have learned a lot about being a successful organization over those years. They filed for bankruptcy in 2005 and came out of it in 2007 (sound familiar?). BUT, they are now considered the top airline in the United States as reported late last year by The Wall Street Journal. Eighty-seven percent of their employees say it’s a great place to work. Would we even get half that number from one of broadcast’s high-profile companies?

Ninety percent of the conversations I have with industry folks deal with their lack of time, revolving around the many layers of bosses and the many layers of job responsibilities, combined with the lack of proper guidance. We can’t control the decisions, but we can sure affect those who work around us and for us.

Delta has proven, just by what I described above, that they value their employees above everything. When that happens, that feeling gets passed on to the consumer/listener/client.

I will tell you from experience that Delta values its customers after a very productive phone exchange with an agent helping change some flights and destinations. I could hear the enthusiasm at the other end. This person enjoyed her job, and was very happy to spend time solving my issue.

No matter your position – GM, OM, PD, Marketing Director, DOS, GSM, APD/MD, whatever – here is what you can learn from the above example: Treat your employees as the most valued and it will come back to you. Do it with strong actionable examples like 1) creating a REAL work-life balance, something very important these days; 2) create achievable performance bonuses monthly or quarterly; 3) Attempt to offer a reasonable compensation package commensurate with the amount of responsibility and time; 4) Celebrate their achievements. Recognize their contributions as often as possible; 5) Promote from within first. When employees see a chance to move up inside the building, they will work hard to be recognized.

We are part of some very challenging times for our industry. I challenge YOU to think long-term and build a lasting loyalty with your staff. Your listeners will hear, see and feel the difference.

“Taking Your Radio Presence To The Next Level. Be it an artist, radio programmer or on-air talent. Coaching and mentoring down to your foundational level”

Contact me:
John Shomby
Owner/CEO Country’s Radio Coach
jshomby@countrysradiocoach.com
757-323-1460
https://countrysradiocoach.com