Last night’s episode of Mad Men was fantastic as usual. One of the interesting topics of focus during the episode was Draper’s lack of a signed contract. All the major players at the agency (Sterling, Cooper, etc.) have multi-year contracts. Draper has NEVER had a contract. This had always been an issue, but it really became a sticking point as the agency was trying to shore up the Hilton Hotels business.
It’s amazing to see how far we’ve come as an industry. Rarely do you see formal contracts that outline guaranteed salary, benefits, and other perks in the ad biz these days. It just doesn’t really happen anymore. But, this got me thinking are we better off without contracts? Contracts are funny things. They essentially demonstrate a pledge between two or more entities. In its most basic format, a contract says i’ll pledge to give you great performance and you’ll pledge to pay me this amount. Fair enough and certainly easy to understand. We often see this type of a contract in the sports world, where so and so signed for 3 years at $5 million per year. How often though does a player actually live up to his contract? How often does the owner/team provide what’s necessary for the player to succeed?
Contracts protect both parties; the player and the team. Well, at least they’re supposed to do that. On some level they are a safety net. But, if there’s mutual trust between both parties, do you really need a contract? Isn’t a contract simply a way of forcing someone to stay? Would you really want to keep someone that didn’t want to work for you? I wouldn’t.
One of the best pieces of advice I ever got was from a more senior colleague at Leo Burnett. He told me that if someone walks into your office and wants to resign, let them. If they walk into your office and want to discuss their “job,” lean in and listen well. The person who wants to discuss the job wants to stay for love of the company. The person who walks in wanting to resign wants to stay for love of the dollar. Good advice, if you ask me.
The closest real world example of this is marriage. They say marriage is a contract between two people. No it’s not. A prenup is a contract between two people. When you decide to get married you put your trust in one another with the intention that things will work out in the long run. This is the reason, so many people balk at the idea of a prenup. To consider getting a prenup is to consider the fact the marriage will not work. No one wants to hear that from the person they want to be with forever. However, when you consider that the divorce rate is over 50%, wouldn’t signing a contract be prudent? Sure it would, but it also indicates a lack of trust.
So the real question we need to ask is, do we need a contract if you have trust? Certainly something to ponder.
Interactive marketer, innovator, boat rocker, continuous learner, movie lover, risk taker, dad and all around good guy. I'm always up for a spirited conversation. These are my thoughts and ramblings, not those of my employer.
My grandfather, now deceased, sold his house to a Realtor in his 70s. He shook the Realtor's hand and said “you can have it lock, stock and barrel.” His wife gasped, because in Vermont that means “everything.” My grandfather realized he had misspoke, but he stood by his word … and sold the house with all of the belongings in it, including antique weather vanes and old family photos. My mom cried at the auction as she saw her family heirlooms being sold by the Realtor (a dick who didn't retrench) to the public.
Crazy? Perhaps. But I remember the honor behind that action. Those days are long gone.
Unfortunately, in a world where businesses are bought out, and where economic times change dramatically every 18 months, contracts are necessary. A promise today doesn't hold unless it is in writing. My grandfather wouldn't need them, but alas, not everyone in business acts like him.
My grandfather, now deceased, sold his house to a Realtor in his 70s. He shook the Realtor's hand and said “you can have it lock, stock and barrel.” His wife gasped, because in Vermont that means “everything.” My grandfather realized he had misspoke, but he stood by his word … and sold the house with all of the belongings in it, including antique weather vanes and old family photos. My mom cried at the auction as she saw her family heirlooms being sold by the Realtor (a dick who didn't retrench) to the public.
Crazy? Perhaps. But I remember the honor behind that action. Those days are long gone.
Unfortunately, in a world where businesses are bought out, and where economic times change dramatically every 18 months, contracts are necessary. A promise today doesn't hold unless it is in writing. My grandfather wouldn't need them, but alas, not everyone in business acts like him.