What are we missing around Quality of Hire (QoH)?

This week CrossChq released a report titled”The CrossChq “Q” Report” that was loaded with some research and data around the quality of hire. The quality of hire metric is like the holy grail of HR and Talent Acquisition! Everyone talks about it, but no one really feels like they know what it is and where they can get it!

Let’s dig into what they found

The one that will jump right out and make you question your own existence is this:

“Internal Referrals have a Quality of Hire -26% below the industry average”

What? The What?!

Since the beginning of time or at least the beginning of HR, we have all lived by one unbending truth! Referral hires were always of higher quality than some hires out of the general population. You get taught this in the first hour of the first day of HR and Recruiting school!

Turns out, we’ve been lied to or at least led to believe that referral hires were better when they weren’t. How could this be the case? Well, we love to believe in this one premise, which was probably never proven. We want to believe someone who works for us would never refer a candidate who wouldn’t be a great worker!

The reality is most people just refer friends or family, and they have no idea how that person works, nor do they really care. They just want to hang out all day with people they like, regardless of how they work!

Another thing in the report that was somewhat shocking:

“Interviews show only a 9% correlation rate to Quality of Hire!”

Okay, we all know that our hiring managers suck at interviewing. In fact, almost everyone sucks at interviewing! Why? For one, 90% of hiring managers don’t interview enough to ever sharpen that skill. On top of that, we are all too gullible and believe what we here and don’t dig in. BUT, this number is shocking!

I think most organization should be testing “no-interview” hiring. That doesn’t mean we don’t talk to people or try validated assessments (more on this in the study), but formal interviews with a 9% success rate are a giant waste of time!

This study is definitely worth a download and read. I’m always skeptical of vendor-based research, but I really like the effort, data, and quality of this one. I think it has some true merit. We all know we need to select better, but we mostly keep doing and believing the same stuff, without really any merit.

Does working for a bad boss help your career more than a good boss?

If you’re like most people, you’ve probably worked for some good bosses and some bad bosses. The best bosses I worked for were supportive and empathetic. They cared about me as a person and supported me as a professional. The bad bosses usually just focused on themselves and what I could do for them.

I know many people who will talk about working for a terrible boss and actually show signs of professional PTSD! We joke, but sometimes the experience can be that awful. There was a recent study done with refugees who are survivors of torture. I’m not saying working for a bad boss is “torture,” but I know I can find some people who would argue it is!

Here goes, Tim! Good bosses, bad bosses, and torture survival!

The study mentioned above found that refugees who were tortured, compared to those who didn’t get tortured, became more resilient. That which doesn’t kill you makes you stronger, comes to mind.

I think the same can be said about working for a bad boss compared to a good boss.

Employers are constantly looking for resilient employees. We try to measure resiliency in pre-employment assessments. During the past few years, resilience as a hiring competency has been very hot.

I have this theory that working for a bad boss or a bad company that treats you poorly, in many ways, makes you a better employee than you working for a great boss and a great company. And it all has to do with raising your level of resilience! You see, when times are good, and things are relatively easy, you are exercising that resiliency muscle.

I’m not saying you get soft working for great leaders and great companies, but you might get a little soft!

We see this constantly in the world as we go through great economic times. Everyone gets a little softer. Hard economic times force us to work that resiliency muscle. To harden up a bit, to grow a thicker skin, put up with some stuff that we wouldn’t normally, to survive.

Bad Bosses and Bad Companies Make More Resilient Workers!

There’s a fine line between becoming resilient and getting broken. That’s the hard part. Like the study found, in some cases, a person just gives up and accepts their fate. They begin to believe this was somehow deserved. The key is to find the “survivors,” those who wouldn’t give in or give up. Those who actually become more resilient from their experiences. Those are your diamonds in the rough from an employee perspective.

Too often, we only want to hire from winners. “Well, they worked for Google. They must be awesome!” And they might be. But I want “awesome” and “resilient” when I know we’ll face tough times. When we have to dig ourselves out of a hole, from a business perspective, I want to have some people who have been in a hole before and found their way out!

Another option is looking for strong workers who work for a bad boss at a good employer. We all know the world, at every company, is littered with some bad bosses, no matter the brand. I have a feeling the same resilience is built up over time. Having to “deal” with a bad boss for a while, and figuring out how to be still productive and get things done is an amazing skill to have acquired in your career. Even though it won’t feel that way at the time!

Yep, today Tim wrote about how refugee torture victims and working for bad bosses is similar to how we build resilience. Now to work on a case study with my own team…

Stay hard.

Is More Efficient Recruiting Always Better? #TruthBomb

If you’re in HR or TA and read this blog on a regular basis, you know I’m all for making our recruiting process as efficient as possible! Primarily because so many of us are woefully inefficient in using our technology and the belief that a more involved process must be a better process.

I’m a little nervous about the future and recruiting efficiency.

I think in our rush to become ever more efficient. We might miss out on some great talent. At this point in the recruiting tech stack, I can actually automate every single piece. Anything you have a person do in recruiting, I can automate. I can even ensure that candidates “don’t” get dispositioned if that’s how you like to play it! I mean, about 50% of you don’t do that now, so it seems like that is probably the way you like it.

If recruiting was only about taking a requirement, matching that requirement to available talent, screening that talent, interviewing that talent, assessing that talent, and onboarding that talent, well then, technology can do that better and more efficiently than humans at this point. But, I think recruiting has always been about getting the best talent for your organization.

Available vs. best is where the technology starts to fall down if talent truly makes a difference in your organization. Honestly, for many, “best available” will work just fine, and it has for decades. The vast majority of organizations are hiring the best available at this point.

Technology is exceptional at hiring the best available. Technology hasn’t figured out how to hire the best talent that isn’t openly available at this point. If you don’t have that talent in your database, and that talent isn’t active on LinkedIn or other job boards, technology has a really hard time getting your message in front of them.

The future of recruiting isn’t about efficiency. That is already here. The future of recruiting is about your organization’s ability to actually go out and discover who is the best talent for your organization. That person might not actually be on the “jobs internet,” or they were, but that was five years ago, so you’ll never see them as someone you want because the five years ago person isn’t the person you need today.

Efficient recruiting is great until it isn’t. If you suck at recruiting, then becoming more efficient at best practice recruiting (which recruiting technology can definitely make happen) will elevate your function for sure. But efficient recruiting isn’t world-class recruiting. It’s just efficient.

The best talent acquisition in the future will be able to go out and discover the talent that hasn’t been discovered by everyone else. We like to believe that everyone who is anyone is on LinkedIn, Indeed, or you name the site. But they are not, or they haven’t been active for a long time, so this is a hidden talent.

Too many TA shops are currently working too hard at becoming efficient and not hard enough at becoming experts of the talent for their industry and their marketplaces. You know I love technology. So, be great at technology, but don’t forget to be great at recruiting.

You Have No F@cking Idea What You Want!

Can I be real a second?
For just a millisecond?
Let down my guard and tell the people how I feel a second?

We have a core problem in HR and Talent Acquisition that might be impossible to solve. On one side, we have hiring managers who think they know what they want, but any Recruiter can tell you that changes by the minute and by the candidate you put in front of them. Can you spell conscious bias?

On the other hand, we have candidates who truly believe they know what they want, but until they actually get into the job and work with the team and get a feel for how the culture works, they also have no clue of what they really want. Can you spell clueless?

All the while, the reality is that none of us really know what we want.

Oh, Timmy, I do! I want more money! Ugh, this new job with more money sucks!

Oh, Timmy, I do! I want passion and purpose in my work! Ugh, this new job doesn’t pay enough for me to live!

Oh, Timmy, I do! I want a job that pays me more than I should be making, makes me feel like I’m helping out the world in some major way, allows me to come and go as I please, and never asks me to produce any evidence of any work that I ever did!

Well, yes, yes, you do know what you want!

Even then, some idiot would find fault with that job. The brand isn’t cool anymore…(and here comes the throat punch!).

Humans are awful at knowing what they want and combining what’s best for them. We tend to pick things that make us feel good at the moment, but a week later, we hate ourselves for it. This makes employee selection super difficult. You have two people meeting each other for an hour, if you’re lucky and then making a life-changing decision. Turns out, that rarely works out well for either side.

We try to throw psychology and technology into the mix, and honestly, this would work better, but we still throw a human in the loop (candidate) at some point who basically can’t be honest with themselves or the A.I., and we can’t figure out why this entire thing keeps failing.

So, what should we do?

I think we should just select employees based on a lottery. “Are you interested in this job? and Do you meet the requirements?” Two yes’s, and you get a shot at the job lottery! Let the odds forever be in your favor! Good luck.

I mean, would it really be worse than what you’re doing right now?

I don’t know.

I hope you liked the picture of my puppy.

What’s Your Beauty Premium at Your Remote Job?

If you know me, you know I love talking about beauty and attractiveness and the impact it has on work! We like to think that how you look has nothing to do with how you perform. Ugly people are told that from birth! “It doesn’t matter how you look, Timmy. You can still be great!”

Academically, that actually does prove out very well, in study after study. In fact, it’s kind of the opposite, and it might be the biggest thing no one talks about at work. This week the newest beauty study hit the street titled, “Student beauty and grades under in-person and remote teaching.”

Okay, I know you’re saying this says student, not employ, so it doesn’t count! Bare with me…

First, this is a legit study, not some vendor survey thing. This was done by a legit PhD at a legit university.

What does the study say?

  1. Both men and women have a beauty premium in terms of their performance. This means, that more beautiful you are in a university class, the more likely you are to be graded higher. (This is real!)
  2. With in-person classes, the beauty premium is the same for men and women. Basically, pretty boys and girls equally get an advantage in grading.
  3. With remote classes, the beauty premium only works for men!

Why does this matter to remote work?

If we know there is a beauty premium in human behavior when judging the performance of students, how hard is it really for us to believe our supervisors and managers also don’t have a beauty premium when it comes to determining work performance? I would argue that there is very little difference between the two judging activities.

This means as many of our jobs switch to remote, we now have an issue with women having their performance judged harsher than men when working in a remote environment because they will no longer get any beauty premium. Again, this only works with beautiful people. The ugly ones were already getting judged more harshly.

We love to believe that remote work favors females for a number of reasons. Saving time on the commute, easier to arrange care for kids and those they might be responsible for, etc. But now we have this issue!

The work beauty premium is real, and it’s not!

The beauty premium is measurable and has been proven in a number of studies. When judging people, we find it more difficult to judge pretty people harshly but easier to beat down ugly people. It’s not real because it’s totally an unconscious bias that even when we know it’s a problem, we ignore it and keep promoting pretty people over maybe higher performing people who aren’t as pretty.

I just find all of this so fascinating! Two-fold, one in that I’m not what any study would find as traditionally “beautiful” from the male standpoint, and that over a long period of time, centuries, genetically, this actually plays out across all cultures. While one culture might like light skin, tall, slender, and those people will have a beauty premium. Another culture might prefer dark, short, chubby people, and that beauty premium plays itself out.

I just need to find the one culture that likes gingers!

Backdoor Job Searches Work Better Than Front-door Applies!

This might seem rather obvious, but it’s not. I have people reach out to me frequently looking for a job. Most out-of-college job searchers are only doing front-door applications/applying online. The more experienced you get, you are probably doing a little backdoor work, but honestly, even with experienced professionals, I’m shocked at how much time they spend on job boards applying for jobs with zero success.

There was a great Twitter thread recently by a hedge fund professional answering the age-old question about how do you get a job in a hedge fund? Here’s a link to the thread

Brett gets way more detailed in his thread about the process, and he also gives two different scenarios of how people can get in – one traditional A-school education and one B-school grinder. I’m taking some creative liberty with his concept to talk about Front Door applying for a job and Back Door networking for a job!

Talent Acquisition Spends 99% of Their Time on the Front Door Process!

I’m not sure this is a problem. It’s more of a philosophy. TA/HR are true believers in the process. Build a great process that is repeatable and equal for everyone. There’s a ton of merit in that philosophy. It’s hard to argue with the righteousness of that philosophy.

Repeatable. Equitable. Fair. (Even though that’s in theory, not, in reality, we control what we control)

In many organizations, there are as many positions filled via the back door as the front door. I like to tell the kids this is called “networking.” It’s how LinkedIn was built. And before LinkedIn, it’s how most business and job filling got done, at a high level. The lower down the pay scale, the more front door work is needed. As you rise up the pay scale, the more the back door process comes into play. But, this isn’t just about how we fill executive roles. Mid-level and entry-level professional roles get filled in this way a lot.

The question really is, what’s more valuable?

If you’re an applicant and if you’re an organization?

It seems like both parties are served better in the back door process if you have the network, and therein lies the problem. Not all people have the same networks. If you graduate from a great school, you have a better network than someone who didn’t. If you have professional parents who have a long history and network in the market and industry you want to get into, your network will be more helpful than someone who didn’t have those advantages.

Getting hired through the back door isn’t wrong for organizations, though. Many will tell you it is, but in so many ways, this networking uncovers high performers much more efficiently. The problem truly lies in nepotism when hiring managers don’t hire for high performance but only for relationships. But throwing the baby out with the bath water doesn’t make sense either.

The Reality of How People Get Hired That Isn’t Going to Change.

Most people will get hired by their network. Everyone has a network. Every network is different. I can’t get you hired at Apple, I don’t have a good network in that world. But I can get you hired by a lot of companies! I can get you hired if you’re a teacher, but I can get you hired if you’re in HR or TA. My network is robust, but it’s specific.

I will never discount anyone who uses their network to get hired. That’s just intelligent. You use what you have to be as successful as you can be. If you got the job you don’t deserve from your network, it will play itself out in the end when you fail. People like to think this isn’t true. “Tim! My boss’s nephew is horrible, and he got promoted!” Yep, that might happen, but 99% of the time, it doesn’t play out that way in reality.

I have had CEOs I’ve worked with in my career come to me and demand I hire one of their relatives. “Put Timmy in this job. Period.” What did I do? I put Timmy in the job. If Timmy worked out, it is what it is. Timmy has to deal with that. If Timmy failed, I went directly to the CEO, and we had that conversation, and 100% of the time, they supported me in getting rid of Timmy!

Hate the game, but if you fight the game, you’ll lose. Front door hiring is inefficient and doesn’t have a better success rate than back door hiring. So, you can hate it, but you look foolish to your executives who know the reality.

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?

The Baby Bonus Program You Never Knew You Needed!

In HR and Talent Acquisition, we tend to be in crisis mode constantly. We are some of the best firefighters are organization has! Our functions tend, by their very nature, to be short-termed focused. This month, this quarter, this year. Rarely are we able to think and plan further than twelve months ahead.

The problem is, currently and in the future, we (the U.S. and pretty much every industrialized country on the planet) are not making enough humans! In the U.S., we are early Japan. This means our birth rate has dipped below the replacement rate. Japan has been facing this crisis for decades; we are just starting down this path.

Why does this matter?

  1. If we can’t replace our humans, we have a shrinking workforce, and it’s very hard to grow.
  2. If we aren’t going to grow enough humans, we have to find another path to get more humans, and that’s immigration, and in the U.S., we have been awful at immigration.
  3. If we can’t get real humans, we have to build robots. The problem is, why robots will come faster than humans, it still takes time, and robots can’t effectively replace humans in most roles.

What is the solution?

This might sound a bit controversial, it’s definitely out of the norm, but HR needs to build a policy that encourages our employees to have babies!!

“Wait, what?! You want us to encourage our employees to have s…”

Okay, hear me out! Japan knew it had an issue decades ago and did nothing to address it, believing nature would take its course. But it didn’t! We have the opportunity to reward and compensate our employees for growing our next employees!

In the U.S., historically, we’ve also sucked at parental leave policies, and we’ve held parenthood against workers for promotion. Having kids, for the most part, has been a negative to your career. We need to change that! We need to make it a reward and benefit to your career. Like, imagine if Mark and Mary had seven kids! They both should be promoted immediately to Vice Presidents or Chief Growing Officers or something!

I’m only saying that half-joking! We are in a crisis and to get out of a crisis takes bold moves.

The hard part of encouraging our employees to procreate is that HR has spent its entire existence trying to stop our employees from doing this very thing! Now I’m asking you to become the Chief Baby Officer.

Um, are there other solutions?

Yes, but America tends to hate both of these options, traditionally.

The first option is to completely revamp our immigration policy and allow in millions of immigrants in both skilled/educated backgrounds and non-skilled/labor backgrounds. Traditionally, both political parties are against this because of the belief immigrants take jobs away from current citizens. Labor Unions hate this. Conservatives hate this. It’s usually a political non-starter.

The UK recently made a major change to their immigration policy because, like the U.S., they are facing a similar human challenge, and we should all take note because it’s an amazing policy. Basically, it allows professionals to come in with a Visa before getting a job, as long as they can prove they can pay their own way. This works because one of the biggest hurdles in U.S. immigration policy is we force an immigrant to have a job before they can enter, and for most U.S. employers, that just doesn’t work from a timing perspective.

The second option is more automation and robots. This is another one that labor unions tend to fight because it takes jobs away from humans. Unfortunately, this one is moving forward because we just don’t have enough workers, and even unions can’t produce more unions. More and more, we’ll see automation take the place of traditional roles we are used to seeing humans in. Cashiers, order takers, warehouse workers, truck drivers, etc. This is scary for many but a necessity for employers looking to run their day-to-day operations.

You might think that encouraging your employees to have babies is a very out-of-the-box idea, but in HR, we need to start thinking more long-term about how we’ll manage our workforce. If you believe your company will be around twenty years from now, a part of our job, strategically, should be thinking about this workforce concept.

Are you a people-first company? #Open22

I’m in NYC this week for the annual Greenhouse Open. Greenhouse is a best-in-class ATS with over 7,000 customers, and this is their annual user conference. So, a whole bunch of recruiters and recruiting leaders nerding out on recruiting stuff! Meaning a perfect place for me!

Greenhouse has a philosophy that they are the perfect hiring engine for organizations that consider themselves “People-First”. What does that mean? That’s the big question because every company I know, or at least every executive I know, would claim to be People-First. But, what I know is very few actually are people-first.

Daniel Chait, the co-founder of Greenhouse laid out what he considers people-first. The hallmarks of people-first companies:

  • Organizations that invest in tools that allow employees to be their best selves.
  • Organizations that work to improve collaboration amongst employees, cultivate belonging, and increase fairness.
  • Organizations that really care about culture, values, DEI&B, and allyship.
  • Organizations that care deeply about recruiting talent because the only way you lead and stay competitive is through great talent.

The hard part about being people-first, because I will tell you right now, every single one of your executives will read the list above and go, “yeah, that’s us!” is just that. They, being an executive, believe you are people-first, but as move down the food chain, it begins to feel less and less like people first.

I think about my own company and go, “yeah, we are people-first!” but I know for a fact that the feeling of individuals is very different based on a lot of variables. Great performers vs. low performers. New employees vs. experienced employees. Higher paid vs. lower paid. Etc.

That is the difficulty of being a people-first company. It’s the difficulty with the concept of belonging. It is super hard to make every single person in your company feel like they belong every day. You can do all the right stuff, and one day, one employee with a certain mindset, comes in the hears the wrong thing, and all of a sudden, they don’t feel like they belong. Does that not make you a people-first organization?

I think what Daniel is saying is that you espouse to do all the hallmarks the best you can today, and you keep trying to improve. Part of having a great culture and a great hiring process is finding a diverse and inclusive set of employees who match your culture. The feeling of belonging is critical to your hiring process and selection, as much as the environment you will ask them to work in.

Why is a recruiting software company talking about people-first? Because what they have discovered over the past ten years of being in business is you can sell software to anyone, but if they don’t share your same values and beliefs, it probably doesn’t work out very well for either party! Your tech isn’t just lines of code. It was built on a philosophy and continues to be developed and improved by a certain philosophy. A true partnership with your technology comes when your philosophies align.

Check out the Greenhouse Open this week virtually if you can!