Category Archives: Selection

What if you allowed anyone in your company to hire?

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Let me walk you through a scenario and you tell me what I’m missing.

We all have hiring needs right now. Almost all of us are struggling to fill those needs. We love employee referrals! We also have great employees, doing great work who work with us, that we trust.

What would happen if we went to our employees and said, “Hey, we love you and trust you, so we are going to allow you to hire one person. You have total say in whether this person gets hired. We have a few parameters around HR stuff, drug screen, background check, etc., but the hiring decision is yours”.

You could probably add in some fun parameters like:

  • Here are the positions we have open that you can hire someone for. (IE., you might have some positions you don’t want the run of the mill making hiring decisions on)
  • If your hire fails, you won’t get this chance to hire another person for at least a year, so make it a good one!
  • If your hire succeeds, you will be given the ability to hire another person.
  • Maybe you want to throw some sort of bonus to your folks for successful hires, explain what “success” looks like, etc.

What might happen?

Honestly, I don’t know. I’ve never done it, but I think I would be willing to test it out.

Let’s dig into what we think would mostly happen.

My best guess is you would have some employees who would be like, awesome, I’ve got a friend or family member I think would do a great job, and I’m going to hire them. Yes! Some positions get filled and they have some employee sponsorship that will probably help hold them accountable and be more successful.

You will probably have a few misses. Yeah, I thought Johnny would do well, and since he has a record no one will hire him, but he’s my sister’s kid and I really thought he turned his life around and this was a great chance, but ultimately he’s a loser.

You will probably have some employees who think you are nuts and not serious.

The big question is would you allow this for any positions, or just low/no-skill type of positions? I mean, really, conceptually, it works for any level. If I have a finance position open, and there are certain requirements needed for the job, then it isn’t really that hard to see if the person can conceptually do the job or not with their experience and education. So, it could work for any level job, blue-collar or white-collar.

Does this empower your employees?

Imagine being an individual contributor in your organization and one day you wake up and go to work and you realize you can actually hire someone. I can have that experience of making a life-changing decision for someone else. That seems like it would be pretty powerful!

Do you remember the very first person you ever got to hire? That’s a giant career moment. I tend to think every person you hire is a pretty great career moment, but the first one is big!

I think being able to hire someone would be super empowering and it’s really just a next-level employee referral program. Instead of you just referring someone, just take it few more steps and make it happen!

I tend to look at our current staffing problems with a strong testing mentality. Let’s try a bunch of stuff and see what might work. Most of it won’t work, but we might run into something amazing! Maybe our first test of this concept is to go to a hand-selected group of 10 or 20 employees and give them the first shot. Measure the results, gather feedback, decide if it should be rolled out further or what changes should be made.

All that I know is that early in my career if the CEO came into my cube and said, “Tim, we are going to allow you to hire one person to work here!” I would have taken that assignment very seriously and would have thought that was super cool!

What do you think? Tell me how crazy this is.

6 Signs You Shouldn’t Make That Offer!

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If I have learned anything at all in my HR/Recruiting career it’s that everyone has an opinion on what makes a good hire. If you ask 100 people to give you one thing they focus on when deciding between candidates, you’ll get 100 different answers! Especially with today’s difficult hiring event where we are pushed to hire any warm body, don’t!

I’ve got some of my own. They might be slightly different than yours, but I know mine work!  So, if you want to make some better selections, take note my young Padawans:

1. They only have bad things to say about former employers. Notice I didn’t say “employer” singular, because we all can have a bad, toxic work choice we’ve made. Once it gets to multiple, you now own that, turns out you’re bad at knowing what’s good for you! Plus, there is a high correlation between hiring a candidate that bad mouth their former employer and that eventually they’ll be bad-mouthing you as well!

2. Crinkled up money. Male or female if you pull money out of your pocket or purse and it’s crinkled up, you’ll be a bad hire!  There is something fundamentally wrong with people who can’t keep their cash straight. The challenge you have is how do you get a candidate to show you this? Ask to copy their driver’s license or something like that!

3. Slow walkers.  If you don’t have some pep in your step, at least for the interview, you’re going to be dud as an employee. Of course, if the person has a disability, ignore this point!

4. My Last Employer was so Awesome! Yeah, that’s great, we aren’t them. Let’s put a little focus back to what we got going on right here, sparky. Putting too much emphasis on a job you love during the interview is annoying. We get it. It was a good gig. You f’d it up and can’t let go. Now we’ll have to listen about it for the next nine months until we fire you.

5. Complaining or being Rude to front-desk and/or waitstaff. I like taking candidates to lunch or dinner, just to see how they treat other people. I want servant leaders, not assholes, working for me. The meal interview is a great selection tool to weed out bad people. Basically, if you feel comfortable in an interview treating anyone bad, you’re a bad person.

6. Any communication issue where they aren’t apologetic. “Yeah, I know you contacted me five times about the interview, but like, the new game came out and I was like busy and stuff.” Hard no! I don’t need you to respond immediately, but at least have some awareness of the moment! Before you lose your shit, this is for both candidates and recruiters! If a recruiter is bad at communicating with a candidate they should be apologetic as well. Common civility is a bare minimum for an offer!

What are your signs not to make an offer?  Share in the comments!

Are Employer Vaccine Mandates Going to Kill Diversity Hiring & Retention?

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If you follow most mass media outlets you would think the question posed is ridiculous! How the heck would vaccine mandates hurt diversity hiring, Tim? We all know the unvaccinated are mostly uneducated, Trump-loving, white folks! Right?! Right? Right…

Turns out, the “Unvaccinated might not be who you think!” The link is to a recent NY Times article and the current administration and the mostly left-leaning mass media don’t want all of us to know something:

“Almost 95 percent of those over 65 in the United States have received at least one dose. This is a remarkable number, given that polling has shown that this age group is prone to online misinformation…

In New York, for example, only 42 percent of African Americans of all ages (and 49 percent among adults) are fully vaccinated — the lowest rate among all demographic groups tracked by the city.

This is another area in which the dominant image of the white, QAnon-spouting, Tucker Carlson-watching conspiracist anti-vaxxer dying to own the libs is so damaging. It can lead us to ignore the problem of racialized health inequities with deep historic roots but also ongoing repercussions and prevent us from understanding that there are different kinds of vaccine hesitancy, which require different approaches.

If you check the data in every major urban center, you see basically the same data. African Americans are more likely to be unvaccinated than white Americans.

Why does this matter?

I’m not judging African Americans about not getting vaccinated. I’m pro your body, your choice! I know this community has a deep mistrust of government and health care in our society based on history!

Here’s the problem! Every decision we make in organizations has short-term and long-term impacts. Many times we know and understand the short-term impacts. Often we have no idea of the long-term impact.

If Biden and his administration mandate all employers require employees to be vaccinated (I won’t get into the specifics of over 100 employees, etc.), and many enterprise employers, like major airlines, etc., require employees to be vaccinated or get fired, we are disproportionately impacting Black employees over every other race of employee!

Thank you, Democratic administration and President Biden! Thank you for getting more black workers fired than any other race by mandating vaccines. This is super helpful to our diversity hiring initiatives! What the what!?!

Stop it, Tim! This is about Workplace Safety!

Yes, it is. It’s always about something when we are firing black workers, isn’t it?

Ironically, I say this with a smile at how stupid we all are, the amount of workers who are getting fired, who are refusing to get a vaccine, who by a higher percentage are black workers, happens to almost identical the same percentage of Americans who actually die from Covid.

That’s to say, this number by percentage is extremely small!

“Yeah, but every life matters! If everyone was vaccinated we could have saved hundreds of thousands of lives!” Yes, you are correct, and I agree with you. Every. Life. Matters.

Inclusion.

Those vaccinated, matter. Those unvaccinated, matter.

Even all those black employees you have, who are fearful of taking a rushed vaccine that hasn’t had years of testing. Who have a history of bad stuff happening to them when it comes to government, healthcare, and mandates.

We love to think employer and government vaccine mandates are fine because it only impacts “the stupid”. Natural selection! If you’re too stupid to get the vaccine well then who cares if you get fired and die. Which is kind of the opposite of inclusion, right?

Mandates are easy when you are led to believe that it’s all about firing poor, dumb, white folks. But, when you look at the data and realize that once again we are targeting black folks more, are vaccine mandates still the correct answer?

(Okay, that’s like 3 vaccine posts in the last week. I’m done, you know my stance. I’m pro-vaccine, I encourage it for everyone, but I’m also pro-choice about decisions that impact your body.)

Zig when others Zag! Hiring the Unvaccinated!

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So many people are getting fired for not getting vaccinated! Or at least that’s what the media makes it sound like, right?!

In reality, the number of employees getting fired for refusing to get vaccinated is actually super low. About as low as the percentage of people who catch Covid and die, I’m guessing…ugh! data, am I right!?

Southwest Airlines CEO claims that he didn’t want to mandate vaccines for his employees, but he got pressured by President Biden. Seems like a strange flex for a powerful CEO. “Joe made me do it!” Really, he did? Really? Or is it, you just are following the industry trend and your competition is doing it and your customers probably feel better about being in metal tubes with a staff that is vaccinated?

Still, I believe that there are certain advantages for doing the opposite of the populous in many situations. Like, maybe, this one. You are having a really hard time hiring folks, why don’t you just make a public display out of “We want your poor, and your hungry, and your Unvaccinated!”

Zig when others Zag!

Now, this plan is free of problems. If you have some folks who are super-vaccinated (what does he mean by that…) maybe they’ll want to leave your employ and go somewhere else. That might happen.

Also, having a larger population of employees who are less likely to be vaccinated, may lead to some additional health risks, and possibly some additional costs associated with increased health insurance costs! You could offset this by not having health insurance and just paying extra for your employees to go out to the government exchange, or some other form of skirting this bill.

But, you would definitely be in the minority of employers who would be welcoming the unvaccinated! I’m also assuming your employee demographics would skew younger and republican, but, hey, fly your freak flag!

Also, not mandating a vaccine could have a big impact on increasing your diversity numbers, as black folks as a percentage are less likely to be vaccinated than white folks across the country. So, if diversity matters to you then this might be a great strategy to try out!

The market you hire in, of course also matters. Down south, might be something to think about. Hiring in the big metro coastal cities, well, this might work against you.

Recruitment Marketing Messaging for this “Zig” hiring strategy!

I wonder what it would look like if an organization just came out and full unvaccinated is the way to go! I’m guessing we would see some job advertising messaging like:

“Didn’t want that Covid Juice!? We might be the place for you!“

“No shot? No Problem! Apply today!”

“We are a Vax-Free Workplace for Americans! Or really anyone who will show up and work!”

“We’ll love you even if you are unvaccinated and have a hickey! Apply Today!”

Any day you can use “hickey” in job advertising is a day you’re winning at life.

Our reality is, whether you like or agree with it, there are some outstanding people who have made the personal choice to not get vaccinated. Smart, hardworking, great employees, who someone will be terminating for this choice. Their loss, the organizations, is your gain or could be.

If you read my post yesterday, you know I’m pro-vaccine, but I’m anti-vaccine mandate for employees. I think there are many things we can do besides forcing an employee to get a shot they don’t want and still protect our other employees, customers, and even the unvaccinated workers.

Here’s what I know, if I can think up an idea, someone else already has as well. So, it’s just a matter of time before we hear about a company out there that will market itself as the “Unvaccinated Workplace” and welcome all those employees that other companies are terminating.

Do you discriminate against boring people?

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In hiring, we now know that we basically discriminate against almost every form of everything! Sexual identity, gender identity, race identity, height, education, weight, religion, you name it and someone out there has a bias towards or against you and whatever form you are.

The reality is, every single time you hire, you are discriminating against something. As a society, though, we’ve deemed some forms of discrimination as wrong, and some we are completely fine with. “Oh, we are going to select the white candidate.” That’s bad. “Oh, we are going to select the skinny candidate.’ That’s good.

I have a bias away from boring people. When I hire, I discriminate against boring people. Turns out, no matter the role, I don’t like to hire boring people. I don’t like to interview them. I don’t like to hire them. I don’t like to work with them. Why? Because they are boring!

Now, you can rightly argue I’m a complete fool. There are plenty of boring people who can be great hires and perform really well. Boring people can be considered safe, calm, nice, non-instigators, even keel, etc.

Is there anything worse than being labeled boring?

I think I would rather be labeled ugly than boring. I mean we all love to hire pretty people, but you would much rather hire an ugly person with a great personality, and a good-looking boring person. Besides how someone smells, it’s really the first thing you notice in an interview! Not how ugly they are, how boring they are!

I’ve heard executives say that the greatest trait they can have in an accountant is that they are boring. No one wants the party playing around with their money. But, still, I disagree. While I don’t want the party running around managing my money, I still want the person managing my money to have a pulse!

Boring is one of those traits that are hard to change. It’s hard to coach up a boring employee to have a personality. If I hire an ugly person, I can help them be better looking cosmetically. I can help a fat employee lose weight. I can even help a smelly employee smell better. But, boring is boring!

I’m sure all of this triggers some folks. For the most part, if you’re triggered and you’re boring, I don’t care, because it’s not like a boring person is going to do anything about it. If you’re not boring, and you’re triggered by me discriminating against boring people, well, isn’t that a strange wall to be standing on?! “I’m fighting for all the boring people! #BoringLivesMatter” But, do they? Do boring lives matter? And if they do, to whom? I mean, they’re boring.

A funny thing happens when we come clean about our discriminations. They seem silly. To write them down and defend them. To try and make sense of it all.

The more discriminating one’s eye for talent is, the more they open themselves up to discrimination. That’s the catch 22. The more specific you get about what you want in a hire, the more things you add into the wants and needs column, the more likely you are to cut someone out who deserves a shot.

I’m still against boring. Change my mind.

Leaders Secretly Hate Succession Planning!

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Do you want to know what you’ll never hear anyone on your leadership team say publicly? Well, let me stop before I get started, because there are probably a ton of things leaders will say behind closed doors, off the record, and then open the door and say the exact opposite. Welcome to the PC version of corporate America.

One of the obvious, which always causes a stir is veteran hiring. I’ve written posts about Veteran Hiring many times, in which I state that companies will always, 100% of the time, publicly say they support veteran hiring, but behind closed doors they don’t really support veteran hiring. At best they want to offer veterans their crappiest jobs, not their best jobs.

If they did truly support veteran hiring, we would not have a veteran hiring crisis in this country! If every organization that claims they want to hire veterans, would just hire veterans, we would have 100% employed veterans! But we don’t. Why? Well, it’s organizational suicide to ever come out and say we don’t really want to hire veterans.  The media would kill that organization. Yet, veterans can’t get hired.

Succession planning is on a similar path. Your leaders say they support succession planning. They’ll claim it is a number one priority for your organization. But, every time you try and do something with succession planning, it goes nowhere!

Why?

Your leaders hate succession planning for a number of reasons, here are a few:

1. Financially, succession planning is a huge burden on organizations, if done right. Leaders are paid for the financial success of your organization. If it comes down to Succession Planning, or Michael getting a big bonus, Succession Planning will get pushed to next year, then, next year, then, next year…You see Succession Planning is really overhiring. Preparing for the future. It’s a long-term payback. Very few organizations have leadership in place with this type of long-term vision of success.

2.  Leaders get too caught up in headcount. We only have 100 FTEs for that group, we couldn’t possibly hire 105 and develop and prepare the team for the future, even though we know we have a 6% turnover each year. Organizations react. Firefight. Most are unwilling to ‘over hire’ and do succession in a meaningful way.

3. Leaders are like 18-year-old boys. They think they can live forever!  Again, publicly they’ll tell you they’re planning and it’s important. Privately, they look at some smartass 35-year-old VP and think to themselves, there is no way in hell I’ll ever let that kid take over this ship!

So, what can smart HR Pros do?

Begin testing some Succession Planning type tools and data analytics in hot spots in your company. Don’t make it a leadership thing. Make it a functional level initiative, in a carve-out area of your organization. A part of the organization that is highly visible has a direct financial impact on the business, and one you know outwardly has succession issues.

Tinker. Get people involved. Have conversations. Start playing around with some things that could have an impact in terms of development, retention, cross-training, workforce planning, etc.  All those things constitute succession, but instead of organization level, you are focusing on departmental level or a specific location.

Smart HR Pros get started.  They don’t wait for the organization to do it all at once. That will probably never happen. Just start somewhere, and roll it little by little. Too often we don’t get started because we want to do it all. That is the biggest mistake we can make.

“Hire Fast! No, Faster! Fire Fast!” The New Recruiting Axiom!

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Traditionally, talent acquisition pros would say it’s “Hire Slow, Fire Fast”. I always thought that was stupid because the reality was for most corporations it was “Hire Slow, most likely Never Fire someone unless they kill another employee in front of you…” Or something like that!

Okay, “It was Hire Slow, Fire Fast”, but we all know that never really worked. Currently, around the world, it’s mostly, “Hire Slow, Fire Slow”. I’m a true believer in we you don’t hire someone to fire them. So, move quickly, hire well, and then support the heck out of them and make them superstars, seems like a higher ROI approach to hiring!

Welcome to 2021!

The problem is, economies don’t give a crap about our axioms! Currently, in the US you better Hire As Fast As You Can, and Still that probably isn’t fast enough! So, “Hire Fast, No Faster, and Fire the Bad Ones That Got Through Your Super Fast Process!” That is really the only shot you have in 2021, and most likely for 2022 and 2023!

Let’s break down what would really happen if you started hiring super fast!

1. You would fill positions much faster than you do now.

2. You would probably make more bad hires. Turnover would increase if you do it right.

3. You would probably spend more on training.

4. You would probably hire some folks you normally wouldn’t and actually, some of those will be really good.

5. You would be forcing your hiring managers to make very quick decisions if you let them decide at all.

Of course, this isn’t your long-term let’s do this forever recruiting strategy! This is, hey, if we don’t start moving super fast, we’ll never be able to compete for talent in our marketplace!

Amazon Warehouses can currently hire candidates from applications to offer in under 30 minutes. Low skill jobs, paying around $17-21/hr. Yes, their turnover is about 150%. Yes, that is actually about normal for warehousing jobs. Turns out, Doug, the hiring manager, doesn’t have some magic selection instinct. Is the Candidate is interested? Does the Candidate show up? You’ve got a 1 in 3 shot they’ll be a good hire.

If I was in the same marketplace as an Amazon Warehouse and hiring the same level of talent, I would literally hire a taco truck to sit outside their property across the street and just hire all the people who turnover from Amazon on a daily/weekly basis. That would be my sole recruiting strategy! Let them do all the work, and I just clean up the mess!

How Could We Make “Hire Fast, No Faster, and Fire Fast” Work?

It’s pretty simple. You pay slightly above market pay. Be one of the top-paying companies in your market. Hire extremely fast, and the moment an employee starts to show you they actually suck BAM! You fire them. The reality is, being a pay leader in your marketplace will continue the funnel of incoming candidates coming.

We aren’t trying to put Jeff Bezos in space people! We are just trying to fill openings at our companies that are all about average. We treat you fairly well. You’ll have some laughs, and once in a while, we’ll buy ice cream and stuff. It’s not the best gig, but it’s far from the worst.

The key is you can’t let low performance even show up for a day! You reward, celebrate, and do all the good stuff for those who come to work. Those who come to collect a check, and not work, you have to kill instantly! Sounds harsh, but this isn’t show friends, this is show business!

Why do managers hold on to bad hires for so long?

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I’ve been very public about my philosophy on hiring. I do not hire to fire. In no way do I hire someone thinking “I can’t wait until the day I fire them!”, I don’t think any of us really think that!

I hire someone believing that with the right training, development, and support, they will be wildly successful! I own at least half of that equation, the person I hire owns the other half. Many times it works, sometimes it doesn’t.

The problem with my philosophy is “Sunk Cost”.

Sunk cost is an accounting philosophy that means a cost that has already been incurred and cannot be recovered. So, you’ve already sourced, recruited, and trained an employee. You’ve gone beyond training working to develop them. All those costs are now spent.

BUT – because you’ve ‘invested’ those costs into an employee, you are less likely to let them go believing you are more likely to get a return on those costs. In reality, there is absolutely zero evidence that shows you’ll get any return for future investment into that employee, but we really struggle to give up on them based on what we’ve already spent.

This is super common in the management of people resources!

Well, I’ve already dropped $50K into Tim, I guess another $10K isn’t that bad. When in reality that $10K is actually way better spent on another employee, and you fire Timmy!

I’ve known about Sunk Cost for a long time, but now there is actually scientific evidence to back up the fact we should be firing failing employees sooner:

“Sunk costs are irrecoverable investments that should not influence decisions, because decisions should be made on the basis of expected future consequences. Both human and nonhuman animals can show sensitivity to sunk costs, but reports from across species are inconsistent. In a temporal context, a sensitivity to sunk costs arises when an individual resists ending an activity, even if it seems unproductive, because of the time already invested. In two parallel foraging tasks that we designed, we found that mice, rats, and humans show similar sensitivities to sunk costs in their decision-making. Unexpectedly, sensitivity to time invested accrued only after an initial decision had been made. These findings suggest that sensitivity to temporal sunk costs lies in a vulnerability distinct from deliberation processes and that this distinction is present across species.”

This scientific study showed both humans and rats basically do the exact same thing. If we feel we have already invested a ton of resources in a task, we are more likely to continue pursuing this task even when all the evidence to that point has only shown failure!

This is Poor Performing Employee Management 101!

-You hire an employee.

-The employee gets trained and should have the skills to perform the job.

-The employee doesn’t perform the job, so you give more resources to help get them up to speed.

-The employee still doesn’t perform.

-The manager decides not to terminate the employee, but to continue to give more resources and chances.

Why do we do this?

You hired 3 employees before the failing employee and all three completed training and did the job successfully. We know the process works. So why do we not fire the employee?

Sensitivity to Sunk Cost. We are as dumb as rats when it comes to investing our own resources into failing employees. We act the exact same way!

It has nothing to do with the employee and our desire to give everyone a fair shot (I don’t hire to fire). It has everything to do with our own internal drive of not wanting to lose, what we feel we’ve already invested, even when all the data tells us future investment is akin to burning a pile of cash.

So, don’t hire to fire, but also don’t be as dumb as a rat and not fire someone who shows you they can’t and won’t do the job you hired them to do!

The Newest Red Flag In Hiring!

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I’m trained as an HR pro to pick up on ‘red flags’ in interviewing, in employee behavior, potential turnover risks, etc. Sometimes those red flags are really obvious.  I tease my staff all the time, but missing time on Mondays and Fridays, unexcused time, is a red flag.  It says something about how you feel about work, that you want to extend your weekend. It’s subtle, but in my experience, it doesn’t play out well.

My new red flag in hiring is Positivity.

First, I’ll admit to you that I’m mostly a positive person.  My normal gauge is set to “things will probably work out in the end”.  I try to be realistic, without thinking the sky is going to fall when something doesn’t go my way.  Life has been pretty good to me. My glass is over half full, and when it’s not, I believe I can find a way to fill it back up.

What I don’t buy is the people who are so positive they seem to be telling themselves they’re positive.  I tend to believe if you’re positive, you don’t need to say your outlook is positive, people will hear it and see it in your daily interactions.  Those are the people you get drawn to. They are truly positive people who enjoy the life they’ve created for themselves.

There is another kind of positive person.  This is the person who needs to keep reminding themselves and anyone around them they’re positive. This positive scares me. This positive is a red flag for me.  This type of positive makes me believe you are actually fairly negative but trying to turn yourself into positive.

Now, I don’t necessarily think that’s bad, someone wanting to change from negative to positive.  I applaud the effort. I also know that most people are hardwired to lean one way.  It’s your personality, and that’s really hard to change long term.

My friend Kris Dunn, author of The 9 Faces of HR, loves to ask applicants about what work experience in their life they enjoyed the most, and which one did they dislike the most. Each tells you something about the person.  A truly positive person will have a hard time finding a place they truly disliked, but they’ll speak a ton about what they really liked. A truly negative person will do the opposite. They’ll go on and on about what they dislike, but move on quickly with their answer about what they like.

Basically, you can fake positivity, and it’s common amongst candidates.  The problem is, you can’t fake it for long, and even if they can fake it, fake positivity can get downright annoying!

I think it’s important to remember that the opposite of Positive Thinking isn’t Negative Thinking. It’s Possible Thinking. I want to hire people who are realistic about what is possible. Blind positivity doesn’t last and usually leads to a big fall.  I don’t need drama in my work environment.

Who would have ever thought that positivity would be a hiring red flag!

2.9 million Americans have been unemployed for at least a year! Why?

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When I saw this number released this week, I was shocked. This month that number increased by almost 250,000! The 2.9M number represents 29% of all unemployed workers. I found myself asking, Why and How? How can someone who wants to work be unemployed for one year?

Being someone who is in the business of hiring people my gut reaction wants to say, “well, these people must not really want to work!” But that’s a cop-out and mostly ignorant way to think about it. The truth is, there are 2.9 million reasons why 2.9 million people remain unemployed for a year or more!

If we could easily go to each of these 2.9 million people who have been unemployed for at least a year I think we would start to hear some common reasons:

  • Pandemic related reasons: They have medical issues that make it very dangerous for them to return to the type of work there were doing prior, and possibly they are also concerned over an experimental vaccine that could protect them, or even that the pandemic shuttered the work they do, and it still has not come back. Childcare issues do to normal school and after-school programs not running as usual.
  • Pivot Reasons: We talk about “Reskilling” all the time but we don’t truly talk about the logistics of truly reskilling yourself. I was employed as an “X” and because of whatever reasons I left the workforce to reskill because I now want to be a “Y”. Maybe this was of their own doing, maybe this was pandemic related, etc. Some probably are unemployed because they lost their job and decided to go back to school.
  • Executive Positions: There is a lot of data around how long it takes someone to find a job the higher up in a company or your salary is. At a VP level for large organizations, on average it takes six to twelve months for people to find their next position after a job loss, at that same level. This is simply do to the fact that very few of those positions come up, so there’s a waiting game that takes place.
  • Retirement: For a number of reasons I made the decision to retire, but because it’s to my benefit to not actually retire, and claim unemployment, I now get this soft landing going into retirement by taking advantage of extended unemployment benefits, etc.
  • Stimulus and Extended Unemployment Benefits: Let’s not be naive and act like this doesn’t have an impact as well. It does, but probably not to the extent that most people believe. If I can make more money not working than working, well many people will decide to ride that out as long as possible. Some would even find that you know after doing this for 6-9 months, maybe our family can actually live on one income for a while, etc.
  • Habitual poor performers: Have you ever noticed that some folks just aren’t good at working, any job, ever! For whatever reasons, these folks just are not wired to work. They constantly get fired, and eventually it’s really hard for them to get a job. Could be cognitive issues, mental health issues, drug and alcohol issues, etc.

What I know is having 2.9 million workers out of the workforce for a year, is a problem for US companies. We need those individuals, or at least we need those within the 2.9 million capable of working, to return to the workforce in whatever capacity they can!

The unemployment rate currently sits at 5.9% that is still rather high as compared to early 2019, but actually not very high historically. Those of us in HR and TA figure that once you get below 5% unemployment, you have slim pickings when it comes to talent, for many of the reasons listed above. Within that 5% or less, many of those folks just don’t want to work, or can’t work, in the jobs we have open.

Currently within the US today we have one open job for every unemployed worker, but as we all know, those jobs are not aligned in a way that we can fill those jobs with those who are unemployed.

If you are one of those folks who have been unemployed for a year or more, I would love to hear your reason and see if it aligns with mine above. Hit me in the comments!