How Should We Structure New-Hire Sign-On Bonuses for Hourly Hires?

Right from The Project mailbag comes this beauty of a question! Very timely in that so many organizations are moving super fast to add sign-on bonuses for new hires to help them attract more hourly candidates right now. Here’s the actual question:


Dear Tim,

We are looking to offer a new hire sign-on bonus for our hourly hires. I was wondering if you have any advice in terms of what is the best way to do this that one, makes it attractive to candidates, and two, works to help retain these hires so we aren’t just throwing money away?

Thanks for the help,

Mandy


How would I offer an hourly sign-on bonus?

It’s a great question because there isn’t any one correct answer. The correct answer is you do what it takes to meet your goals! In this scenario, without giving up Mandy’s specific details, here’s what I would do:

  • Offer an amount that makes staying on extended UI/Stimulus a non-issue. So, if someone is making $300 a week additional stimulus ($1200 per month), I’m going to pay that on top of our hourly wage.
  • Pay this sign-on as a fraction per hour worked. So, an additional $300 per week would be $7.50 per hour over your normal hourly rate. So, a person who normally makes $15/hr, would be making $22.50/hr until the “sign-on bonus” is paid off.
  • The decision you have to make is how long do you pay this additional extra hourly sign-on addition? One month, two months, until the end of September?! I would pay it for one month and if the person quits and tries to collect unemployment, we would challenge it. The reality is, once someone has worked for a month, there more than likely going to keep working. The ones who really don’t want to work, won’t make it a month.
  • “Tim, we just can’t afford that much”-edition. I hear you, $300 per week is way too much. What can you do? Steal workers from other employers who are making roughly the same as what you pay, but you pay more, just not $7.50 an hour more! Maybe you pay $2/hr more.
  • But, wait, you’re not done! What about your current workers? The reality is, if you start offering a sign-on bonus to new hires, your current employees are going to be upset, especially your best ones! So, you have to make it good with them. More than likely you end up in a compensation track that pays your more experienced people more than your new hires. The key for success here is whoever is getting the best pay must be your best performers, or you get rid of them.
  • Also, you can’t pay your more experienced hourly workers $.50 to $2/hr more if you’re paying new hires sign-on bonuses worth more than that, but you don’t have to pay them the same. The key is to make sure your best workers are being paid at a rate that leads the market, so they can’t go anywhere else for similar work in your market and make the same or more. Pay for performance.
  • Move quickly to make changes to market compensation. In crazy employment times, as we have right now for hourly workers, you can not rely on paid compensation data and services. They move too slow. Pay attention to what candidates are telling you and make some calls to fellow pros around your market to see what folks are paying.
  • Bonus Tip: Have multiple sign-on bonus/retention plans for potential new hires/current employees to choose from! Let’s face it, no one plan will be what everyone wants. So, design three and let them choose. Maybe some want an additional hourly rate, maybe some want a retention bonus paid at the end as a lump sum, and maybe some want something totally different. Get creative!

Brainstorming Idea: What if you paid bonuses for certain activities that lead to the new employee behaviors you wish to have? Show up for the interview, get $50 cash in your hand. Show up to the first day of work, get $100 cash in your hand. Make it through the first week, etc.! Reward based on the behavior you want to happen, and ensure it happens. Yes, payroll will hate you, but it doesn’t mean that it can’t be done!

Yes, this is expensive, but not as expensive as going out of business because you can’t find labor. You can always increase your prices for your products and services to meet this additional demand. Say hello to inflation, it’s going to happen, the current administration made sure of that with a multi-trillion dollar stimulus package!

The key to making sign-on bonuses work is to only pay those bonuses fully to those workers who truly are working. If you start paying that higher wage to slackers, you’ll be dead in the water. People are willing to work market leading wages, but they are also willing to collect market leading wages for not working so hard if you allow it.

The Rules for Hugging at Work Post-Pandemic

Okay, I’ve been known as the guy who likes to hug, and I’m not sure why I have this designation but it might be because of this post here. Also, I tend to like hugs! And, I might have hugged a bunch of folks to kick off my speaking engagements demonstrating the Official Office Hugging Rules!

My mate (that’s what English male friends call each other) Chris Bailey (who is a world-class hugger in his own right) and I were messaging back and forth the other day on WhatsApp (Editor note: Tim has to tell you he was messaging on WhatsApp so he seems cool and worldly) and he said, “Mate, you need to write the rules for Hugging at Work after Covid”. He’s right, it’s time.

The key to great rules is you get them out before people start making up their own rules. Since organizations are just not figuring out return-to-work strategies, and a bunch of people are getting their Covid Juice (vaccines), the world, or at least Chris Bailey, is clamoring for how can we start hugging again!

The Rules for Hugging at Work, Post-Pandemic

1. Read the Original Rules of Hugging at Work, they still apply, but we needed some additions.

2. If both parties are Vaxed you are free to party! Hug away! Hug me like you missed me! Hug me so hard it might start an HR investigation! But only hugging, Sparky, don’t get too excited!

3. If one party is Vaxed and one party is stupid (err., not vaxed), Hug that moron if you want. Now, if you are vaxed and the non-vaxed person is wearing a mask, well that probably just helps knock down that coffee breath.

4. If you are not vaxed and the other party is not vaxed, please not only hug, but lick each other. The world is built around natural selection and there is nothing more exciting than watching natural selection take place in the wilds of the office!

5. Understand coming back into the office, Post-Pandemic, the world has changed a bit. Everyone is a bit on edge. There’s a good chance you hugging someone at work will get you fired. So, my recommendation is to hug anyway, no one wants to work in a world where “Karen’s” rule the world!

6. Don’t hug someone who is trying to give you an elbow bump. That person is weird.

7. Don’t hug someone who says, “It’s just a little bit of allergies” as they are hacking up a lung. Also, if you’re sick, have enough self-insight to let folks know so they don’t come in for a snuggle!

8. If it looks like someone needs a hug, ask them, and if they don’t say “No”, most likely they need a hug! The world has been an especially hard place the past year or so. A lot of folks need a hug!

9. Some of your folks are remote and they need a hug. Great leaders, in a new world of remote, hybrid, and on-premise, will travel and deliver hugs. It might be the single most important thing you do as a leader all year. Hug delivery.

10. Hug with DEI in mind! Have you hugged a person of color today? What about one of your Transgender co-workers or peers? What about someone of the same sex? If you only hug the opposite sex of the same color you are, you might want to ask yourself why is that? I’m an equal opportunity hugger! Come get some!

11. No group hugs. Let’s stay civilized, people! It’s a special kind of crazy the person who initiates a group hug. In HR we use “group hug” as profiling the truly psycho employees we have working for us! “Come on guys! Let’s all do a big group hug!” – Um, No!, Trevor!

Cancel Culture Can’t Cancel Hugs!

I did a survey recently and it turns out 89% of people want a hug, and the 11% who don’t like hugs, also hate puppies (this is my own survey, don’t @ me!). Here’s the thing, as we get back to work and see folks we haven’t seen in a while there will be emotion! We missed a lot of these assholes! Enough that we will want to give them a hug!

Also, if you have folks working hybrid that you don’t get to see as much, when you do see them you will want to do more than a cold handshake or fist bump. The world needs one big giant hug, and we certainly have some co-workers who need more than a few hugs!

Hugs don’t need to be canceled. Hugs are great! What needs to be canceled are creepy dudes who hug inappropriately and make the people they hug feel uncomfortable. Fix that problem! Leave hugs alone!

Professionalism vs. Civility at Work!

In Human Resources and Talent Acquisition we have gotten very use to hiring managers making a statement like, “I really need someone with a high level of professionalism in this role”. Having experience as both an HR leader and a Talent Acquisition leader for twenty-five years, I thought I knew exactly what that meant.

My view of the term “Professionalism” meant the hiring manager was looking for someone who had a high skill level in communicating appropriately for each situation. That they had an appearance that seems to fit the culture of the organization and those we served. That in times of stress or crisis, they were able to keep their composure and work through situations to come up with an outcome that would be satisfactory to both sides.

What I never realized was that the term “Professionalism” is or is thought to be rooted in racism and white supremacy. But, as the social justice and BLM movements have brought many things to light over the past couple of years, I’ve been reading and hearing from people of color that the use of “Professionalism” as a descriptor was akin to saying “what we really want is a white person”.

I have to be honest, and I know folks will say this is because I was blinded by my privilege, but I never once in my career thought when a hiring manager said they wanted someone who was “professional” they were secretly telling me they wanted a white person. I probably think this way because I’ve had men, women, white, black, Hispanic, Asian, etc. tell me this as a descriptor/skill they desired as a hiring manager. But, this is also the difficulty of unconscious bias.

Is there a difference between “Professionalism” and “Civility”?

I can definitely see how the wrong individuals could easily use the term “professionalism” to mean white and not black. I’m not naive to the world. It does bring up the dilemma though on how do we actually measure or speak to how individuals should act in certain business settings. Of course, each company’s culture is different, so this is a constant moving target by company, by leader, by position, etc.

I think most HR leaders and Executives, regardless of gender, ethnicity, and nationality would believe there are appropriate and inappropriate behaviors and ways to conduct ourselves in a business setting. Probably 90% of which we could come to some sort of agreement on, and the other 10% would be personal preferences.

This then begs the question is “professionalism” really a racist ideal, or is it just an additional method some individuals/organizations/institutions could use to continue systematic racism where they see fit? If that is the case, then how can we communicate the 90% we agree on in a fair and equitable way where all employees feel like they belong?

This brought me to the concept of Civility.

Civility is defined as formal politeness and courtesy in behavior or speech. Sounds a bit like how we would define “Professionalism” so it makes me wary we are just using a different word. I did find a Civility expert, Sejal Thakkar, who trains organizations and employees on how to be more civil with each other. She had a post on Linkedin and shared a bunch of really great resources explaining that no matter your role at work, from the lowest-paid worker to the CEO, all should be acting with civility, at all times. (Click here for Sejal’s LinkedIn post with resources) (Also, go connect with Sejal, I really like what she’s doing around Civility in the workplace!)

My question to Sejal was simply, in these current times I get messages from leaders who feel like they are being held hostage by some of their employees. These employees feel empowered to say anything without any recourse. They can talk divisively at work about politics, their beliefs and ethics, while attacking other’s beliefs and ethics that are different than theirs, and leaders feel like they have to allow this to happen. How can leaders deal with this issue of feeling like they are being held hostage by some strongly opinionated employees who are causing dissension at work about non-work things?

Sejal’s response was what I expected. All employees, both leaders, and non-leaders should be acting civil towards each other at all times, with no exceptions. She was short and sweet in her response. There is no room for incivility in the workplace. Period.

It’s fine to disagree about big things in the world, and still act civil towards each other, especially in the workplace. An employee might have voted for Biden and hated Trump, and can’t fathom that another employee actually voted for Trump, but that doesn’t give license to either employee to act uncivil towards each other. You can have employee support BLM and have employees support Law Enforcement, all the while being civil towards each other. If both, or either does act uncivil, it should be dealt with in your normal course of discipline as if they acted inappropriately about anything else within your workplace.

What does Civility look like at work?

(I’m going cut and paste from one of the resources Sejal shared (Ten Ways to Create a More Civil Workplace) as this person can say it way better than I could ever write):

  1. Acknowledge Others. No one should feel invisible. Make eye contact. Greet people with “good morning”, “good afternoon”, etc. Use people’s names. Make people feel welcome in your presence.
  2. Think the Best. Most people are not trying to intentionally ruin things or do harm, try to assume positive intent. Until proven wrong, give the benefit of the doubt that people are trying to do the best they can with the resources and tools available to them.
  3. Listen. Stop focusing on yourself and your needs; instead, focus on other people. Don’t assume you need to solve anything, just hear and try to understand clearly what they are saying. Respect what others think and honor their right to see things differently than you do. It doesn’t mean you have to agree, just hear them.
  4. Speak Kindly. Be respectful in word and tone, particularly when delivering critical feedback. In addition, never gossip or speak unkindly of people when they are not present.
  5. Accept and Give Praise. It is said that one of the greatest things you can give someone else is a sense of their own worth. Praising the accomplishments of others and showing appreciation cost you nothing but deliver tremendous value. And when you are praised, a kind thank you is all that’s necessary. Gracious humility is a virtue.
  6. Be Agreeable. Be open to and look for opportunities where you can accommodate others, compromise, or simply allow someone else’s ideas to be implemented. Your way isn’t the only way.
  7. Respect Other People’s Time. Be punctual, end things on time, wait your turn to speak, show up to everything you’ve promised, and every time you fail to do so, apologize.
  8. Apologize Earnestly. Be clear about the error you’ve made and do not make excuses. Let others know that what you did was wrong and that you understand and regret the negative impact you’ve made.
  9. Accept and Give Constructive Criticism. Be clear about your intentions. If your intention is to help, then be helpful, however, if your intent is revenge or to manipulate things to your benefit, re-evaluate and walk away. When receiving criticism, assume the positive intentions of others. Be grateful, not defensive.
  10. Don’t Shift Responsibility and Blame. If you are part of the problem, own it, apologize if necessary, and help in finding a solution. Trying to place blame rather than working to find a solution makes you an obstacle. Don’t be that person.

I love these! Can you imagine, right now today, if we all worked in an environment where this was taking place! The world would seem lighter, for sure!

This is extra difficult right now in our work world because so many of our employees, who are working remotely, haven’t even met each other. It’s way easier to disregard another person when you don’t truly know them or their intentions.

Like I said above, I am not naive to the world. I understand people are hurting and fed up with the world they are living in, so we’ll see unrest and people being uncivil towards each other. I hope and like to believe, that we can create workplaces where people will feel like they belong and are safe to have civil discord. Because once it becomes uncivil it’s time for some folks to leave or are workplaces breakdown and that isn’t fair to the other employees who rely on the success of the business to pay their bills and feed their families.

We live in a world, currently, where most people seemingly do not first assume positive intent, and I can understand why. But for our workplaces to grow and thrive, we must fight to get to a place (understand I did not say “back to a place”) where we can all be civil towards each other working on common goals and successes.

Your Future Office has 40% Fewer Seats!

Jamie Dimon, chief executive of JPMorgan Chase, the largest private-sector employer in New York City, wrote in a letter to shareholders this week that remote work would “significantly reduce our need for real estate.” For every 100 employees, he said, his bank “may need seats for only 60 on average.”
New York Times

Feels about right. In my opinion, some sort of hybrid work model for office workers is going to win out. 2/3, 3/2, etc. You work from home (or wherever) some days, in the office some days. The additional flexibility people received during the pandemic is a very hard thing to take away at this point.

The “on average” phrase becomes the issue!

On average, Tim, we only need about six places for people to get there done. Okay, but on Monday’s you’ve asked everyone to come into the office for meetings and such, and told everyone they don’t have to come in on Fridays! Maybe we can find an office building that will let us just rent 4 days a week!

What this really means, is once again, the Office Furniture Industry wins! Did anyone check into see if Steelcase or Herman Miller maybe released Covid onto the world!?! The more time I spend in HR, the more I’m convinced that the office furniture industry really runs the world. About every decade or so, we (HR) is tasked with reinventing work and that means new work spaces.

Yeah, but if we are WFH Tim then you don’t have to worry about it! Yes I do! I now have to worry about employees working at home at their kitchen table hunched over in some chair not designed to work in all day, and I have the worker’s compensation claim. So, it is just a matter of time until I’m shipping new office “home” furniture to my employees to make sure they are taken care of and still have the cool hip culture we want with $1000 work at home chairs that are functional yet still look great in their 1970’s retro family room they’ve been piecing together off Ebay.

You know a great team building activity would be to have us send office furniture to everyone’s house and then we all get on a Zoom call and build it together! Hey, Ikea, get on this!

Hey, Billy, sorry, you got in at 8:30 am, you’ll have to share a desk with Mary until a spot frees up, here’s a folding chair.

This is why we’ll all be building “shared” spaces in our workplaces. Because you know what’s super effective and efficient when you’re trying to get that project done? Listening to some idiot drone on about some Netflix real-life crime drama series they are watching, and you don’t even like real-life-crime-drama, or Todd who is telling you all about it, but you’re stuck “In the Park” the cool nickname HR gave your social share space where work nomads without desks come to get stuff done, but not really done because no one can’t get anything done at the “Park”.

WFH, Hybrid, In-Office.

Everyone needs a seat, but just not all the time.

Welcome to show!

“I Fully Reject the Employment Model of Pre-Pandemic America!”

This was an exact quote on a comment on one of my blogs about how hard it is right now for companies to find talent in America to work hourly jobs. This isn’t the first time I’ve heard something like this from an old GenZ or very young Millennial (basically early to mid-’20s).

What does this even mean!? 

Let me interpret, for the older millennials and GenXers in the crowd who are actually working and don’t have time to learn the GenZ vernacular. This is actually a cross of GenZ and Snowflake which can be very confusing sometimes to understand.

What this person is trying to convey is that they don’t believe they should have to work a job for pay and benefits (employment model of Pre-pandemic America). They actually love the employment model of Pandemic America – which is either sitting at home and getting paid to mostly not work, or actually just collecting unemployment and government stimulus to the tune of about $1000 per week, to do nothing at all.

Their idea is in Post-Pandemic America they would like to continue to get paid a living wage and benefits to do what they want. That might be something very productive and useful, like volunteering to help children to read or older people to have a better life in their later years, or it might be growing weed in their basement. This employment model is much more attractive to them. I get great pay and benefits to do what I want, not being told what to do by “the man”.

“The man” doesn’t actually have to be an actual “man”, it might be a rich woman or rich non-binary person. Basically, anyone who would make money off of their labor is now “the man”. They also reject anyone making money from their efforts, except for themselves. Which is actually wonderful if they would start their own business, but that would take work that feels too similar to an employment model of pre-pandemic America. Because of course, they would then become “the man”.

And you wonder why you can’t find anyone to come work for you? 

Some would believe this to be a socialist movement that has began to grow in America, mostly started by Bernie followers. No, this isn’t socialism, this what happens when you helicopter and snowplow parent your way to a generation that thinks the world should revolve around them.

I should only get A’s because my Mom says I’m the smartest little boy on the planet. And I should only get first-place medals because I showed up to the game. In fact, we should all get first-place medals because there should be no losers in the world, only winners.

And we truly wonder why terrorists want to bomb our country.

The world, in the end, will be truly harsh for these people if they don’t change. The world, since the beginning of time, has winners and losers. If you think socialist societies don’t have winners and losers, you might actually want to read about the history of socialist societies and inequality.

Do CEOs of companies need to make one hundred times more or a thousand times more than the average worker? No, probably not, but if you think you can just show up to a job and you should be within ten times of a CEO’s salary, you’re actually just ignorant.

This isn’t a political statement. This is the real world. Every single elected politician in the house and the senate is more wealthy than the average American by a giant margin. All of them. Winners and losers. People who take risks to start a business get all the bad and all the good. America, for good and bad, was built on Capitalism. It’s not perfect. I don’t know of a perfect society or culture in the world.

So, I do not fully reject the employment model of pre-pandemic America! 

Is it great? Nope. Can we do better? Yes.

Have we changed the employment model any over the past century? 1000%

Worker safety, health and wellness, D&I, training and development of skills, employee engagement, candidate experience, you could literally list a thousand improvements that have been made to the American employment model. And we’ll continue to improve.

I have hope that we’ll get better and solve our pay equity issues and we’ll continue to improve our diversity, inclusion, and belonging for all employees. America is a big and complex situation. Change does not happen overnight. For how bad young people think we are now, we have made tremendous strides along the way.

Okay, time to end this, I’m starting to feel like this guy…

Do people really not want to work?

On my way to work this morning, I saw seven businesses that had “Help Wanted” signs out front. The sign above is from a fast-food restaurant requesting you be nice for the few staff they have that are working their butts off to get you fat! Please be patient, your fries, double cheeseburger, and shake will be with you shortly.

I was on vacation for Spring Break (yeah, I said it), and traveled out to St. George, UT, and spent time outside hiking. Stopped at a McDonald’s for a Diet Coke on our way back from Zion and the manager was locking the doors at 2:30 pm in the afternoon. He apologized and said he normally has 50 employees on the schedule, but currently only has 16 and can’t keep the doors open!

Do People Really Not Want To Work? 

1st – Of Course People Don’t Want To Work!?! How stupid is this question!? (Wait, so let me get this straight, I don’t have to work? And I’ll get money? And I don’t have to pay rent? Okay, I’m not gonna work.)

2nd – Read #1.

3rd – If you give anyone the choice to not work, but still get their bills paid, they will not work. This is what is currently taking place in this great country of ours. In fact, some folks are making more not working than they were working. So, none of this is surprising!

The surprising part is politicians seem to be the only people alive, in America, who don’t understand that businesses can’t get people to come to work right now. They like to point to unemployment numbers, but those numbers are not telling the true story of what’s happening across the vast majority of industries.

Certain companies and industries got hurt super bad by Covid. We needed a policy that was sniper rifle accurate to help those people. Our government, instead gave us a nuclear bomb acting like everyone was in trouble. Which lands us in the position we are in right now. Too much work, not enough people who need to work at this moment.

No, Really!? Do People Not Want To Work? 

Here’s my take:

People want to do things that make them feel valued. Things that make them feel satisfied. Where they have some freedom of choice. And at the end of the day they feel safe, secure, and that they matter.

The vast majority of jobs from $10/hr to $20/hr can’t meet those basic needs.

If anyone of us was given the choice to not work and have our basic needs met, even for a short period of time (like the current Stimulus package) most would take it and do things they would rather be doing. Some will help others and volunteer. Some will take time for themselves. Some will actually do nothing and just wait until the time comes around when they have to go back to work to meet their basic needs.

So, basically, if you are hurting for workers and you pay below $20/hr, you are going to be in a world of hurt through at least this summer and maybe longer.

What Can You Do To Get More Workers? 

First, do everything in your power to keep the workers you have. Be kind. Be helpful. Be understanding. If they are overworked, be empathetic and try to do what you can to help them and their quality of life.

Second, don’t give new employees stuff you won’t give your current employees. I see this constantly. Oh! Hey, come work for us and we’ll give you a $500 signing bonus! But you won’t give your current employees a $500 retention or Hard Work bonus.

Third, stop thinking you are all that and a bag of chips! You can’t just throw up a Help Wanted sign and get workers. Be Better! Yep, that means you might actually have to put money into recruiting. Yes, hourly recruiting is as important as salaried recruiting and in many businesses more important. But, I find most organizations that hire a lot of hourly workers are vastly under-resourced when it comes to hourly recruiting as compared to salary recruiting.

Fourth, it’s time to take some chances with all those biases you have. Hire folks who test positive for weed. Hire folks who went to prison. Hire folks who aren’t your “Norm”. It’s time to take some chances, which really aren’t chances, but being more inclusive in hiring, but that’s an entire other post.

Finally, vote differently. If one employer is having a problem hiring, most likely that employer isn’t really that great to work for. If tens of thousands of employers are struggling to hire, something went wrong at a macro-scale. In terms of our current situation, we know exactly what went wrong. Bad policy is causing some short/long-term pain for employers.

Economics will eventually take care of this problem. Employers will pay more, offer more, change. This means we’ll all pay more for stuff we used to get cheaper. Some businesses will go under because you won’t agree that paying more is worth what they offer. This will cause workers to be unemployed. Making it easier for employers to hire at market wages. The law of supply and demand is undefeated.

 

How to Help Your Company to Stop Sucking at Hiring!

Hiring people to work for you directly is probably the single hardest thing you’ll ever have to do as a manager of people. To be fair, most people are average at hiring, some are flat out killing it, and probably 20% are awful at hiring.

The first sign you suck at hiring is your new hire turnover is an outlier in your organization, your market, or your industry.

So, what constitutes new-hire turnover?

I find most organizations actually don’t measure their hiring managers on new hire turnover but use this to judge effectiveness on their talent acquisition team. That’s a complete joke! That is unless you’re allowing your TA team to make hiring decisions! New hire turn is a direct reflection of hiring decisions. Period.

When should you measure new-hire turnover?  Organizations are going to vary on this based on your normal turn cycles and level of the position. Most use 90 days as the cap for new hire turnover. That is safe for most organizations, but you might want to dig into your own numbers to find out what’s best for your own organization. I know organizations that use one year to measure new-hire turnover and organizations that use 30 days.

How do you help yourself if you suck at hiring?

1. Take yourself out of the process altogether.  Most hiring managers won’t do this because their pride won’t allow them. If you consistently have high new hire turn comparable to others, you might consider this, you just have bad internal filters that predispose you to select people who don’t fit your org or management style. Don’t take it personally. I suck at technical stuff. I shop that part of my job off to someone who’s better. You might be an exceptional manager of your business, but you suck at hiring. Shop that out to someone who’s better!

2. Add non-subjective components into your hiring process and follow that 100% of the time. Assessments are scientifically proven to tell you what they’re designed to tell you. If you follow what they’ll tell you, you’ll be much more likely to make consistent hires. If that assessment gives you better hires, then keep following it, or find an assessment that does give you that consistency.

3. Analyze your reasons for each misfire hire. Were there any commonalities in those? What I find is most poor hires stem from a hiring manager who gets stuck on one reason to hire, which has nothing to do with being successful in your environment. Example: “I want high-energy people!” But then they work in an environment where they are stuck in a 6X8 foot cube all day. It’s like caging a wild animal! 

Numbers don’t lie. If you consistently bomb your new hire turnover metrics, it’s not the hires, it’s you! In the organizations where I’ve seen the best improvement in reducing new hire turnover, it was in organizations where new hire turnover metric results were solely the responsibility of each hiring manager, and nothing to do with talent acquisition.

It’s the 80/20 rule. 80% of most new hire turn is usually coming from around 20% of your hiring managers. Fix those issues and ‘magically’ your new hire turn improves.

How long should it take a candidate to decide on a job offer?

When you make a candidate an offer, how long do you give them to tell you they want the job or not? 24 hours? 3 days? 1 week? Immediately?

For two decades I’ve been in the camp of a candidate should be able to tell you ‘yes’ or ‘no’ immediately, or you (the recruiter and hiring manager) did something wrong in closing! But, I think I’ve changed my stance on this, if “fit” is really important for the position, your culture, etc.

Here’s the deal, if the job and/or company fit is really important to your organization. The candidate should take as long as they need to, to make sure that your organization is the one for them. That might mean they need to finish up other interviews, do more research, go through counter-offers, etc.

So, if that takes two or three weeks, so be it. The fit is critical for you and you actually want the candidate to take their time with this decision.

I feel so strongly about this, I think you should actually make candidates wait 72 hours after you offer them the job, to give you an answer! Yes! You won’t accept an acceptance from them until they’ve taken 72 hours to really think about the job, the new boss, the organization, everything!

Why wait 72 hours if they already know!? 

A “cooling down” period will give them some time to get through the infatuation period of getting the offer! It will give them some time to really think about your job, their current job, other jobs they might be considering. This time is important because too often, too many people get that offer and at that moment everything feels so awesome!

After a couple of days, they come down from the high of being desired by you and start to think clearly, and all of sudden you’re not as pretty as you looked two days ago, or you’re even more pretty by playing hard to get.

But what if a candidate gets cold feet by this technique? 

That’s a real concern especially with historic unemployment in many markets and fields. If you force a candidate to wait 72 hours there is a good chance someone else might come in and offer them a job!

Yep! That actually would be awesome if that happened, because then you would really know! Do they love you, or did they just fall in love with someone else!? Remember, this isn’t for every organization. This is only for organizations where fit is critical to your organizational culture.

If a candidate gets cold feet by another offer or by waiting 3 days, they don’t really believe your organization is the one for them. They don’t believe what you have is their dream job or organization. Also, if you get cold feet by having them wait, you don’t really believe fit is important!

So, how long should it take a candidate to decide if your job offer is right for them? 

There is no one right answer. Each of us has our own internal clock to make those decisions. If you force a candidate to decide immediately upon an offer, that speaks to your culture. If you let candidates decide on their timeline, that also speaks to your culture.

In a perfect world, I still believe if the process works as designed, and everyone pre-closed as they should, both you and a candidate should be able to make a decision when the offer is placed on the table. But, honestly, how often does our process work perfectly?

Hit me in the comments with what you believe is the proper amount of time you should give a candidate to decide whether or not they’ll accept your job offer?

Covid made us fat, lazy, and depressed! How do we turn that around?

My go-to answer for most things is, Cocaine. I’m sure if I did Cocaine I would be less fat, less lazy, which would lead to me being less depressed. Most likely, this is flawed thinking, but I never have tested it to know for sure.

A brand new study on the effects of Covid on our mental well being was just released and to no one’s surprise, it’s not a rosy picture:

What does this tell us? 

  1. We are moving way less than we did pre-Covid.
  2. We are sleeping more.
  3. We are getting up later.

Also, in the study, depression has increased by over 90% in the past year! That is massive, and while we love the flexibility of remote work, we are also craving the need for personal contact and normalcy. Humans are pack animals by genetics. We don’t thrive in cages (like being locked in our homes).

By the way (from the picture at the top), who are these people who don’t wake up until 10 am!? And even more puzzling, pre-covid, who are these monsters who didn’t get up until 8:30 am!? Surely, I gest. But, only for free of being canceled by some new pro-sleeping, don’t judge us movement.

How can we turn this around? 

I was raised by Baby Boomers who weren’t all too keen on schedules and the importance of a consistent schedule on mental and physical wellbeing. They just grew up during a different time in our world where you just kind of went with the flow. Yes, hippies, kind of.

My wife, bless her soul, rescued me and trained me to understand how having consistency in your life leads to a less stressful life. Less stress leads to less depression. Turns out, we as humans, actually do really well when we know the parameters of our world. We actually like being put in a box. It’s warm and cozy. We perform better. Covid took us out of our boxes, out of our schedules, out of our routines.

And like a flower without water and sunlight, many of us wilted. We stopped moving. we started putting on weight, we started sleeping more, and we became depressed.

We love the newfound flexibility, but we want some semblance of our lives back. Getting up, going to work, hitting the gym, etc. We need to turn these negative trends in our health, physically and mentally, back in the right direction. Even if you stay remote or hybrid, really work to build a more permanent, more healthy schedule into your day.

Part of building that new schedule is an understanding that we aren’t living a temporary life. We all have this belief that once Covid is over, we’ll be back to normal and then I’ll start getting healthy again, but our reality is we aren’t getting back to the old normal. For most of us, we’ll have a new normal, and we need to adjust to that new normal now.

It starts with moving more. Spring is a great time to start!

Can a Mid to Large Size Company Work Without an HR Department? #HRFamous

In episode 53 of The HR Famous Podcast, long-time HR leaders (and friends) Tim Sackett and Jessica Lee discuss BTS, companies without HR departments, and whether the new Covid-19 bill will affect employment in the service industry.

Listen (click this link if you don’t see the player) and be sure to subscribe, rate, and review (Apple Podcasts) and follow (Spotify)!

Show Highlights:

2:00 – Just JLee and Tim today! KD is out for this episode.

3:15 – JLee and her family have become a part of the BTS Army. BTS is a K-Pop group that has taken over the world.

6:00 – Tim loves that JLee is very tied to her Korean culture and instills that pride and love in her children. He mentions an article that discusses Norwegian families raising Korean children and discusses the nature vs. nurture argument in that context.

8:00 – Tim brings up how the article examines the racial aspect of coming into a homogenous culture and trying to succeed with all the advantages your family can give you.

10:00 – Next topic: The CEO of UK startup Octopus Energy says he has no interest in having traditional business departments like HR. His company is worth over a billion pounds.

12:20 – Tim asks, “What we do without HR”? Well, Tim discovered that this company actually does have job openings in HR/IT-adjacent roles but he couldn’t find any hard HR or recruiting roles.

14:15 – JLee thinks that he’s gotta be outsourcing things like HR to other agencies or companies.

16:15 – Tim was on vacation this past week and read the book The Hard Thing About Hard Things by Ben Horowitz. He said he hired a recruiter after only having nine employees for his company.

17:30 – Tim asks JLee if the newly passed Covid-19 stimulus bill will affect people wanting to go back to work in the service industry. JLee says she understands why people would not want to go back to working at restaurants or other service-type places because a lot of the draws of working there are now gone.

19:00 – JLee shares a story about going to lunch at a restaurant only the second time in the past year recently and how she felt very awkward there and didn’t know what to do while in the restaurant.

23:00 – Tim recently went to dinner and a movie for his birthday and he noticed that the business was understaffed. He wonders when people will start to return to the mentality of getting frustrated by long waits and lines.

25:20 – What’s there not to like about Koreans? Here is Time Entertainer of the Year BTS!