Your Secrets Are Safe With HR

I’m not big on secrets, but let’s chat about the lowdown that HR folks usually have. In the HR circle, there are always a few things we’re told to hush about.

These are the secrets that only we as HR pros have:

  1. Spotting folks in the office about to exit. Others might catch wind, but HR usually has the inside track on everyone’s moves.
  2. Knowing who’s moving up the ladder, and not necessarily because they earned it.
  3. Figuring out how much you’ll get in your next raise. Yep, we already know, but don’t slack off – we don’t want it looking pre-decided.
  4. Understanding why some departments get more resources than others. Sadly, we can’t spill the beans – it would mess things up!
  5. Getting a sneak peek at your annual bonus 6-12 months in advance. Budgets need planning, after all.
  6. Anticipating changes to your benefits 4-8 months before they kick in.
  7. Knowing who might go off the deep end at work. Can’t tell you for privacy reasons…

There are probably more secrets, but they’re not just HR-exclusive. Consider this: We might tweak our metrics, but guess what? Every other department does it too! In a corporate world driven by politics and metrics for resources, the numbers won’t always be squeaky clean. What makes HR unique is our stash of substantial secrets and the duty to keep them locked up. One common pitfall for new HR folks is sharing these secrets to make friends – it usually backfires.

So, yes, HR’s got secrets – you knew it, and I’m just confirming. Let’s keep moving, though, because I’m not spilling the beans on the details!

Are we witnessing the death of Diversity Equity, and Inclusion?

This isn’t a political rant, so I’m sorry to disappoint if that’s what you’re looking for. This is a professional HR conversation about something we have historically owned in organizations from a responsibility/leadership standpoint. I’ll tell you that over the past five years, the larger the organization, the more the C-suite has taken on this responsibility/leadership standpoint.

Many reports recently have been about major corporations cutting their DEI budgets and staff. Most of these are coming from tech companies who have been hit hard by rate increases and find themselves desperate to cut any non-revenue generating expenses, on top of major headcount reductions across almost all functions. So, it’s not super surprising from a business perspective, as when you dig into the full story, they are cutting everything, not just DEI.

Here’s what I know as a seasoned HR professional who has worked for a long time in enterprise-level organizations. Every program in every organization will at some point be under a level of scrutiny to prove its worth to the organization, no matter how moral, ethical, or idealistic it started out as. You might be leading a program in your organization to save the world from disaster, and some CFOs will eventually come to you and want to talk about the budget and financials and their impact on the bottom line. No matter your mission. This is business. The famous Bob Sugar in Jerry Maguire said it best: “This isn’t show friends, this is show business!”

DEI does not get a pass on this reality in the corporate business world.

DEI will not die in 2024. It’s now a staple of every major organization that has a brand they care about on the planet. However, DEI will have to show that it can move past the touchy, feel-good activities and policies it was founded on and make a real financial impact at your specific organization. Therein lies a problem most of us have. We can’t prove this to be a fact. We can find great news stories and university studies that will say DEI has a positive financial impact, but we still have to prove that it can in our organization. This goes way beyond hiring more people of color to hiring more people-of-getting-shit-done, which actually might be people of color, or women, or non-genders, or trans, or come up with your group. We still have to prove this on the financials.

The scrutiny over DEI programs and budgets is no longer some old white dude CEO not believing DEI is important. Many of those have converted, retired, died, or are on their way out. Millennials now run most corporations. Women are already the dominant workforce participants and are over 60% of college grads today. In the next decade, there will be more women CEOs than men.

DEI leaders can no longer pass off failed programs to others in the organization. C-Suites are looking for DEI leaders who will develop, implement, and successfully run inclusive and equitable programs that add to the company’s overall bottom line and financials. We still have way too many corporations hiring DEI leaders who don’t have the chops to run a successful function and obtain the budgets they need to run a successful function.

What we need more of in DEI is people who know how to execute and understand business. Oh wait, haven’t we been saying that about HR leaders for like three decades!?

The DEI Function of the Future?

I truly believe that most organizations will not have any type of DEI function within a decade. Stay with me! Think about what DEI is really all about. Helping us deliver a work environment that is inclusive and conducive to all people being able to deliver their best work. Right now, most big organizations have a Diversity Recruiting function. Why? Because we are awful at recruiting a diverse workforce, so we decided the way to do this is to start another recruiting function.

This means your recruiting function was broken, and instead of fixing it, you decided to start another one. That’s like saying your sales function is broken, and instead of fixing it, let’s just start another sales function but let the broken one keep doing what it was doing! It makes zero sense for a business to do this. Also, tell me if you call the new recruiting function “Diversity Recruiting”, what do you call the old recruiting function? Normal recruiting? White recruiting? You get my point. Separating how diversity from the rest of the organization as a stand-alone function isn’t ideal.

Building DEI throughout the organization across every function the way it should have been from the beginning is ideal. I’m hopeful, with the strides we’ve made to date, with technology, with data, and with a female-dominated workforce and leadership, we’ll no longer need separate DEI functions within organizations. I mean, the ladies will never make the same mistakes the males made in the past, right?

I’m also not naive to the realities of conscious and unconscious bias in organizations and leadership. So, while I’m hopeful organizations will get to the right place, I have yet to see it at scale. Most large organizations today have data showing them exactly where bias is happening, yet very few have the courage to confront it. We can see exactly which hiring managers are biased, but we rarely do anything. DEI functions will remain necessary if we don’t confront the wrongs in our organizations head-on.

Beat me up in the comments – tell me where I got this wrong. Let’s have some civil discourse!

Life’s Tough, But It Evens Out

In the realm of motivational quotes, one has continually stuck with me: “It’s hard, but it’s fair.” An older football coach used it to fire up his players, but it speaks volumes about life today.

The coach’s son, Toler Jr., eloquently defines the meaning of the phrase:

“It’s about sacrifice. It means that if you work hard, at the end of the day, fairness aligns with your efforts. It’s about investing time and readiness for the opportunities.”

We all think our parents are hard on us growing up.  I recall stories I tell to my own sons of my Dad waking me up on a Saturday morning at 7am, after I was out to late the night before, and ‘making’ me help him with something, like chopping wood or cleaning the garage out.  He didn’t really need my help, he was trying to teach me a lesson about choices.  If I chose to stay out late at night, it was going to suck getting up early to go to school.  He shared with me stories of his father doing the same thing – one night my Dad had gotten home late, so late, he didn’t even go to bed, just started a pot of coffee and waited for my grandfather to get up, figuring that was easier than getting a couple of hours of sleep and then hearing it from my grandfather the rest of the day.

In my role as an HR professional, I witness this every day in the workforce. There are those who consistently dedicate themselves without expecting special treatment. Others will put in the minimum, then expect a cookie. It’s a tough life lesson for those folks. Often, they depart, perceiving unfair treatment, and move between jobs, slowly learning the importance of effort and time investment. In my three decades in HR, genuine hard workers rarely face injustice. Occasionally, undeserving individuals might receive promotions, but the hard workers usually secure the better end of the deal.

As a parent, I hope I can teach my sons this lesson: Life is inherently challenging, but commitment and hard work pave the path to fairness.

Skills matter. Experience matters. Performance matters.

Skills, skills, skills, skills…

If you’ve been around HR tech for two minutes in the last five years, “skills” is basically all you’ve heard. Well, okay, “skills” and “AI.” The HR Tech community is jamming skills down your throat like a new pharmaceutical drug that cures narcissism.

Why do we feel “skills” are so important?

  1. Hiring by skill is thought to eliminate bias. It’s not about relationships, or what school you went to, or that you went to school at all, or what color your skin is. If you have the skill to do the job, you should be hired to do the job.
  2. As a concept in organizations, skills seem to connect a lot of dots. We can measure skills and make a giant inventory of all the skills we have, and our all-knowing executive team can tell what skills we need in the future, and we can build those skills to be ready.

In theory, hiring and promoting people based on skill makes a lot of sense. In reality, it’s super hard to pull off. It’s difficult to truly assess someone’s skill in most areas. We just don’t have enough black-and-white skills measures that truly differentiate nor do we have the ability to build all the skills we believe we need.

Does “experience” matter?

The folks on the skills side of the fence want you to believe experience is an outdated concept being sold to you by “the man.” Or, more specifically, by men who have traditionally controlled the world in so many ways. Some of that is also true. But that doesn’t mean that experience doesn’t matter. It does.

You are about to go to prison for a crime you didn’t commit. You can choose between two lawyers. Both passed the bar to demonstrate their “skill” as an attorney. For one, this will be their first case. For the other, it will be their 2,000th case. Who will you choose? You are about to go into a life-saving brain surgery. You have two surgeons to choose from. Both of whom passed their boards at the highest level. One has performed over 1,000 of this specific operation. One has done 50. Which one will you choose?

There is a piece of this skills revolution that also is veiled in ageism. One of the reasons “skills” has risen is that young people are sick of old people getting hired and promoted over them. Old people who might not have the same skill level, but definitely have more experience. We can’t just say stop hiring them because they’re old, but we can say stop hiring them because I have higher “skill.” So, if it’s only about skill, we eliminate the ageism bias.

Your experience actually does matter.

Wait, what about performance?

Here’s where I get a bad feeling in my stomach around “skills.” It’s not just that a person has a certain skill, but how they perform in that skill. The reason we say “experience” doesn’t matter because there are dozens of academic studies that have shown that when we measure new hires and we take a look at their resumes and their previous job experience, there is very little correlation between where they worked previously and the job they had, to success in the new job and company.

That isn’t because experience doesn’t matter. It’s because high-performing experience matters!

Therein lies our problem. We can’t measure the performance of someone’s past job.

Let’s get back to our lawyer and doctor examples. What if I now told you that our lawyer, who has tried over 2,000 cases, actually lost every case? You would obviously try the inexperienced lawyer! Same with our doctor. The doctor who had 1,000 brain surgeries under their belt has a success rate of 10%. But our 50 case doctor has a success rate of 90%!

But wait, what if I tell you the “experienced” doctor only takes on the most difficult last-chance cases? And the less experienced doctor is given the “easy” cases where the vast majority of patients are thought to recover. Does that make a difference? You see how complicated “experience” as a factor can be.

Performance matters a great deal!

If you are looking to hire the best talent, it’s not only about skill. It’s about choosing individuals who have the skill to do that job at a baseline, then looking at their experience and their performance, and probably their intrinsic motivation. This is why a job sample is the number one predictor of a new hire performing well on the job. If they can actually do the job, successfully, then it stands to show they will probably be successful when we hire them. Although, even that isn’t guaranteed. We then add in factors like culture, leadership, peer support, etc.

It turns out hiring is really hard.

So, why is everyone saying the future of talent is skills?

I believe it’s because this is something we can control. It’s tangible and feels like something that can work. I can try and measure for skill. I can assess and build for skill. It seems obtainable, and it seems like something better than our past hiring based on experience.

In reality, hiring and promoting should have always been about skill. And experience. And performance. I want to hire highly skilled people that have amazing experiences and have performed in their previous jobs at a very high level.

What I don’t want to do is blindly hire and promote based on someone’s ability to demonstrate they can do a bunch of random skills. A job and performing in that job is not just about doing a bunch of random skills. That simplifies what employees do down too far. People and work are much more complex than just skills.

Skills. Experience. Performance. I want to hire the complete package. Be careful selling “skills” as a strategy to your executives. Most executives have great experience and high performance, and they actually believe that matters. Because it does.

I identify as Age-fluid!

I would love to take credit for coming up with “Age-fluid,” but I’m stealing it from Chip Conley, who I saw speak at Transform a few weeks back. Chip was talking about age diversity and how only 14% of the F500 actually measure age diversity and how this is becoming a major issue in corporate America.

Now, if you would talk to my wife, she would tell you I’ve identified as “age-fluid” most of my life. I’m 53, but my humor is mostly that of a 12-year-old boy! Also, I refuse to believe that I still can’t do most of the stuff I could 20 years ago. While my body feels like it’s 80 some days, I still think I hang on the court with folks half my age.

For hundreds of years, we’ve known of this phenomenon where you have a mental age and a physical age. I’ve already said my “mental” age is way lower than my physical age, but it’s important to truly understand the impact this has on the diversity of our organizations. Because we also see the opposite. I’ve met many young people who were wise beyond their years and seemed to have an “old soul.”

Most organizations and hiring managers are biased toward those of a higher age. I don’t think that is shocking to anyone. Old people are still the ones we can be biased against, and no one thinks it’s wrong. We make jokes in meetings about someone’s advanced age all the time, and no one thinks anything of it. But in reality, this is no difference from someone making an old person’s joke than if they were making a similar joke against someone’s gender or ethnicity.

I actually love the concept of being Age-fluid.

If someone in our society can be gender-fluid and decide from day to day which gender they believe they are, then I can decide what age I believe I am. I mean there are advantages to every age. Being young is cool, but it also sucks because you don’t know what you don’t know. Being old can suck physically, but usually you’re also more confident in where you’re at in life. You know who you are and you’ve come to grips with it. Being a child is magical, but you don’t understand that.

Today I feel like I’m 36.

Why 36?

Hmmm…well, at 36, you can still feel great physically, but you also have enough time on this rock to have a bit of learning. I won’t call it wisdom, but you’ve made enough mistakes to mostly know how not to make them again. Doesn’t mean you won’t, but you know the path you’re going down and how it will most likely end.

At 36, you aren’t looking at the end yet. You also aren’t looking back at the “good old days.” You feel like you still have more life ahead of you, than behind you, and you’re still young enough to truly feel like you haven’t written the script for your life yet. You still have promise, and you’ve made a bunch of progress on where you want to go.

Yeah, today, I’m 36. I’m also about 12 for a few seconds at at time, depending on what memes my other 12-year-old friends are sending me!

What age do you want to identify as today and why? Hit me in the comments.

The US has Relatively Low Rates of Hiring Discrimination. But you don’t believe it!

Do we have hiring issues in the US? Yes. Are many of those issues really bad? Yes. Is the US worse than most other countries? Hmmm…

There was a meta-field study done with over 200,000 job applicants (that’s a massive data sample) in 9 counties in Europe and North America. The study found there is hiring discrimination in every country, but some countries are worse than others:

What did the study find?

– The USA has one of the lower rates of discrimination while France and perhaps also Sweden have very high levels.

– If you travel the world, the findings are very surprising. If you have just sat your butt in the US, this is hard for you to comprehend with the US’s history of slavery, and you probably find this surprising. Turns out, many other parts of the world still act like discrimination isn’t happening and ignore they have a problem.

– Capitalism, in fact, is likely to predict less discrimination in hiring. Again, competitive hiring practices actually help decrease discrimination in the labor market.

The authors of this study are Lincoln Quillian, Anthony Heath, Devah Pager, Arnfinn H. Midtbøen, Fenella Fleischmann, and Ole Hexel. A very diverse group of academics from some of the top educational institutions in the world. Here is what they had to say about the study:

“National histories of slavery and colonialism are neither necessary nor sufficient conditions for a country to have relatively high levels of labor market discrimination. Some countries with colonial pasts demonstrate high rates of hiring discrimination, but several countries without extensive colonial pasts (outside Europe), such as Sweden, demonstrate similar levels. Likewise, the lower rates of discrimination against minorities in the United States than we find for many European countries seem contrary to expectations that emphasize the primacy of connection to slavery in shaping the contemporary level of national discrimination. These results do not suggest that slavery and colonialism do not matter for levels of discrimination, rather they indicate that they matter in more complex ways than suggested by theories that posit simple, direct influences of the past on current discrimination.”

And

“Low discrimination in Germany could be a result of distinctive hiring practices in Germany: Employees typically submit far more extensive background information at initial application than in most other countries—including, for instance, high school transcripts and reports from apprenticeships (Weichselbaumer 2016). This may reduce the tendency of employers to assume lower skills and qualifications among nonwhite applicants, which is one potential source of discrimination. If so, this suggests the importance of high levels of individual information about applicants as a method to mitigate discrimination (c.f., Wozniac 2015; Auspurg et al. 2018).”

So, France and Sweden are the most Discriminatory Countries in HIring?!

Well, not exactly. They are the most of this study of nine countries.

I would bet you would see higher rates of hiring discrimination in places like Japan, China, South Africa, etc. Why? How many non-Japanese do you see on the Japanese national team? How many non-Chinese? One non-Chinese, an American snowboarder, was in the winter Olympics, and that was the first one in their history. Now take a look at the US and the other European countries. All of them have multiple people from other countries on their national teams. Is that hiring? Nope, but it shows a willingness to welcome and evolve people from other countries in a very transparent way.

Just because other similar Capitalist countries tend to be more discriminatory in their hiring practices than the US also doesn’t make us better. There are still massive improvements that need to be made. I point all of this out because you will never see this type of study highlighted by the mainstream media most HR and TA leaders and pros read. This won’t be on CNN and Forbes. We love to act like every other country is so much better. They aren’t, and we aren’t. We are all struggling with getting better and closer to the same than most of us realize.

What is the Health Insurance Design Impact to Employer Paid Abortions?

Obviously, we had major news recently around abortion rights in America.

What I really want to talk about today is an amazingly quick response by organizations to immediately offer a new health benefit. Within hours of the announcement, we saw major employers come out publicly stating they would pay for the expense of their employees to obtain legal abortions if they could not get one in the state they lived and worked. Some employers also announced that they would pay for relocations for their employees to live in states with legal abortions.

All of this, just from a health benefit plan design perspective is quite remarkable!

Most employers can’t agree on offering smoking cessation programs for their employees or paying for gym memberships, but within hours, we are now paying for abortions. We have severely unhealthy obese employees, but we won’t pay for bariatric surgery. Organizations tend to move very slowly in making benefit design changes, and those changes tend to mostly be around cost/benefit.

Are we being “Inclusive” by offering an abortion benefit?

Again – I’m 100% in favor of a woman’s right to choose!

But we need to have a conversation about the hypocrisy of some of these decisions being made around this issue. This is what we do as professionals in HR. We discuss decisions we make as organizations, and how each decision tends to lead to other issues we can’t yet know what they might be.

So, we are now offering abortions as a health benefit. Why?

Let’s say we are willing to pay $5,000 dollars for our female employees to get an abortion. It definitely makes us sound like we are a very progressive employer! It’s interesting, though, that many of the employers who are willing to pay for your abortion are not willing to pay for your parental leave if you chose to keep your baby. They are unwilling to pay for childcare assistance after you have your baby.

Why is that?

Could it be, that not having children make you a more productive and less expensive to insure employee?

We must ask ourselves this question, if not only to ensure we are being inclusive in our insurance offerings to our female employees.

If you want to be “inclusive” you offer a woman a full choice. Yes, you can choose to have an abortion and we’ll support you! Yes, you can have the baby, and we will still support you! If you only choose one side, you are being exclusionary. Why?

Abortion as an employer-paid health benefit

There are benefits we pay as employers that have very little financial impact but make us look like we are an employer of choice. College Tuition reimbursement was always the biggest one. We offer you college tuition reimbursement knowing almost no one actually takes advantage of it. It’s one of the lowest-used benefits a company can offer! But, we feel great about ourselves when we market this out to candidates and employees.

Are abortion benefits the next college tuition benefit? You offer it up, knowing it makes you look like a progressive employer, but you know it really has very little financial impact. On the flip side, offering paid parental leave and childcare assistance, well, those benefits actually cost us real money, so no, we won’t offer those!

All women should be allowed to make their own choice with their bodies. Period. Employers are going to decide if they should help women with that decision. I think we, as HR leaders and professionals, should be advising our executives that having a “Choice” is about more than one option. Our benefit plans should support any choice a woman wants to make, not just one.

Abortion is health care. Having and caring for a child is health care. Organizations need to support all choices that a woman might want to make.

Is it okay to be biased toward underrepresented communities in hiring?

I’m a big podcast listener. It’s one of the reasons we started HR Famous because we loved the format! One of my favorite podcasts to listen to is The Prof G Show with Scott Galloway.

If you aren’t familiar with Scott Galloway he’s a New York University professor of marketing and hugely popular. He’s a liberal and rails openly against Trump and also his own industry, Higher Education. I’m a moderate and he’s so freaking smart, I could care less about his political leanings, I just get smarter listening to him.

Besides being a professor, he has started and exited a few technology companies, sits on boards, has school-aged kids, and talks a ton about the stock market.

On a recent pod, Elitism: Money vs. Influence, he gave his top 3 attributes to the top-performing employees of the companies that he has started. These are:

  1. Most likely Female. “First they were female. If they were male I couldn’t say this but it’s okay because as long as you are biased for underrepresented communities your okay, but we try and ignore that…” (42:03 in the pod)
  2. Graduate from a world-class university. Ivy League, Penn, Michigan, Stanford, Berkley, Vanderbilt, etc. “Better schools matter…more applicants…start with better core human capital…better screening.”
  3. Athletes are very successful. They understand teamwork and discipline, and they can endure and push themselves harder. “Someone who can finish an Ironman isn’t lazy”, says Galloway.

So, a Professor of NYU, former business owner, and thought leader says it’s okay to be biased in selection.

I’m not sure I agree we should ever be biased in our hiring selection practices, but Galloway points out a reality in our culture. As long as we aren’t biased towards the majority, we will look the other way and ignore it.

What Galloway is saying is not different than how the vast majority of hiring managers are making their final selections. They take a look at past and current performances and they make some educated inferences about what those top performers have in common. Based on this knowledge, it will shape their hiring selection. Does this, or could this, lead to bias? Yes.

Does it make it wrong?

That’s the big sticky question, isn’t it?

We want to say, no, it’s fine, continue to hire the females if those are your best performers. But, just because your current females are your best performers doesn’t mean they’ll be your best moving forward, or that maybe one of the males will be even a better performer.

Flip the scenario.

Galloway now tells us that one of the three attributes for high performance is they are “male”. Do we have a problem with this now? Most likely, you do have a problem with it based on hiring equity issues, broadly, but it’s hard to say specifically since maybe this organization doesn’t have gender equity issues.

Want to know what Inclusion is difficult when it comes to organizational dynamics? It’s because what Galloway laid out is exactly what every organization lays out. The difference is, it isn’t always friendly to the underrepresented community.

Like I said, regardless of your feelings on this one subject, Galloway’s podcast is money! It’s on my must-listen to pods each week.

Give me your thoughts on this in the comments?

Are you “Rainbow Washing” your corporate logo for Pride Month?

I know you’ve seen this going on in June, but you might not have known what it was called. “Rainbow Washing” or “Pride Washing” is when a corporation turns its logo, for the month of June, from its traditional colors to rainbow colors to show its support of Pride Month.

Here are some examples:

Is there any harm in doing this?

My initial impression was “No”. I’ve got gay people in my life and for far too long most companies were scared to even acknowledge gay people were real, let alone show their support, so for me, this is an amazing time. We have billion-dollar corporations willing to come out publicly and state they support their gay employees and customers in a very public way.

But, we also have the bad marketing side of the world.

We have organizations that will Rainbow Wash their logo for June, to act like they are Prideful of their LGBTQ workforce and customers, but then do nothing else the rest of the year. Wait, how do you pronounce “Cinco De Mayo” or isn’t February the shortest of the months for Black History? I joke, this is classic in most organizations. We say we care, but we do the least amount to show we care.

The worst of this is when the organization says one thing, like, hey, look at our rainbow logo, but then goes and gives political donations to politicians who are actively working to reduce or eliminate gay rights. Yes, this is happening. This is far worse than those acting like they care but doing the minimum to increase sales. This is actively lying to employees and the public through behaviors and dollars working to support the other side.

Do you have to rainbow wash your logo to have Pride?

Nope. In fact, I’m sure the LGBTQ community would prefer you not wash your logo and just actually give a damn through your actions and funding of policies that support their community. But, doing those things and washing your logo is also awesome!

Signs and symbols of support shouldn’t be discounted. They are important. A corporation could be the biggest donor to gay rights but hide the fact they do it, that also isn’t great. “Pride” is about having pride for the LGBTQ community and showing your support in a public way that will show those who don’t support that you do and you’re not afraid to show it. Because for way too much of our history way too many were afraid to show their support.

Can Rainbow Washing go too far?

Well, maybe if it goes down the male genital route, you go too far!

This isn’t real, but it demonstrates how a brand can go over the edge with Pride!

Now, you might love the OG and be Gay, and I’m here for it! Everyone loves those breadsticks and salad!

Rainbow washing goes too far when you are doing it for promotion and marketing and not because you want to show Pride for the LGBTQ community. I know, for 100% fact, that some CMO and Revenue officers have had the discussion, “hey, what happens to our sales if we wash the logo? Oh, it’s up 7%! Should we keep it a rainbow for July!? No! That’s the American Flag washing logo, you idiot! Sales went up 8% last year with Red, White, and Blue!”

Rainbow wash your logo. Show support. Give to Gay Rights and Politicians who support Gay RIghts. Show your Pride!