Why Hasn’t Paying Employees To Leave Caught On?

Remember a few years back when Zappos, the darling of the HR world, announced it was offering new employees $1000 on their 90 day anniversary to Leave the company?  At the time that’s all HR people talked about – it was revolutionary – pretty soon every company would be paying their employees to leave.  What happened to that?  Zappos is still offering to pay employees to leave.  Is your company? Why not?

It hasn’t caught on because your leadership is afraid your good hires would actually take you up on your offer!

Of all the HR gimmicks Zappos does, offering employees at bonus at 90 days is the best one – because it puts everything on the table.  It’s the one thing they did that other companies are too afraid to steal!   When you go to an employee and say we need you to be all in – so – if you can’t be all in, here’s $1000 bill, all you have to do is leave.  That’s having true faith in your organization, your culture.  We only want people to work here – that really want to be here.  Many of say it, but 99.9% aren’t willing to back it up with an offer.

It hasn’t caught on, because your HR team is too weak!

Think about the HR person who takes that idea to the executive conference room.  They’re either really good at what they do, or crazy.  Because most leadership teams are not going to buy in on the initial idea.  To get an idea like that approved, you have to have executive buy in, in a major way.  You have to be able to sell it.  That person is not your average HR person. That’s an HR person willing to do thing different, willing to put their beliefs on the line.  Those kind of HR folks are the ones who get the corporate logo tattooed on their ass – and don’t even tell you about it.

It hasn’t caught on because the recession put people 2nd and business 1st. (Remember when your employees were 1st!)

In a down economy the importance of your workforce has taken a back seat.  It has.  Leadership and management training was almost non-existent, retention programs disappeared and work-life balance turned into get-your-ass-back-to-work balance.  That’s simple economics.  When your pool of labor far outreaches your needs, the employer holds more of the power.  This makes the exercise of giving people money to leave, seem a little silly.  First, people aren’t leaving because they have no where else to go. Second, if someone sucks, I’m getting rid of them because I have 100 others waiting to take their spot.

HR Pros discount this policy.  They say it’s meaningless. It wouldn’t make a difference in their environment.  They have a performance management process that gets rid of ‘those’ kinds of employees. The fact is, we are scared.  We are scared to go and do this because we know the truth.  That it would cause turnover, that would cause our systems and processes to be taxed.  We don’t have the resources to handle it.  We don’t have the leadership to handle it.  We don’t have the guts to try it.

It’s the single most brilliant thing that Zappos has done in the HR space, and you’re not doing it.

 

Your Full Court Press Engagement Program Is Lessening Engagement

Psychology has a funny way of playing tricks on basic common sense.  Want more motivation? Why just do more motivating things, right?  Want higher employee engagement? Better put together an employee engagement plan and do all those things to get our employees more engaged.  Simple – straight forward.  So, it would seem.  The problem is the human psyche is not straight forward and studies will tell us, actually, the more you try to tell your employees about your great work environment and great leadership – the more they’ll believe the opposite!  From the the Journal of Personality and Social Psychology:

“the Journal of Personality and Social Psychology published a paper showing that when people get feedback that they believe is overly positive, they actually feel worse, not better. If you try to tell your dim friend that he has the potential of an Einstein, he won’t think he’s any smarter; he will probably just disbelieve your contradictory theory, hew more closely to his own self-assessment and, in the end, feel even dumber. In one fascinating 1990s experiment demonstrating this effect — called cognitive dissonance in official terms — a team including psychologist Joel Cooper of Princeton asked participants to write hard-hearted essays opposing funding for the disabled. When these participants were later told they were compassionate, they felt even worse about what they had written.”

I like to file this under: Employees aren’t as dumb as we think they are!
Here’s how it works.  You have crappy leaders and and a crappy work environment, but you’re being told you need to raise employee engagement.  To raise engagement you need to have better leaders and a better work environment.  So, you give your leaders a couple of hours of solid leadership training, rearrange the chairs in the lobby and buy every employee a new Satchel with your companies logo on it.  Bam!  Engagement engaged.  The problem is – your leaders aren’t really any better – the work environment is the same – the f’ing handle already broke on the $10 Satchel you gave me.  Engagement disengaged.
So, what can you do?  Engagement comes when your people feel like everyone is on the same train, same track.  Try this:
1.  Measure current engagement and tell your folks – the good, the bad and the crap we will stop right now, this instance.
2. Have your leaders talk about your current state, worse than it really is, as transparent as possible.
3. Have your leaders share the vision of where they want to see engagement to be – reality, not pie in the sky (under promise, over deliver)
4. Work to try and move the needle on measurable items. Don’t celebrate fluff – it comes off as fake.  Communicate reality constantly – reality with positive tone.
Employee Engagement programs are at their worse when they turn into Marketing programs – when you begin selling your employee on something they know is not true.  This puts HR in a tough spot, because the engagement your executives feel and see, are often quite different than what your employees feel and see.  It’s HR’s job to get your executives to see that the employees perception, is their reality.  To them, there isn’t a difference.  Don’t sell your employees that they’re working in the Four Seasons, when they go to work every morning to the Motel 6.

HR – An Autopsy

HR is Dead. I got called yesterday to come down and ID the body.

They ran an Autopsy to discover the cause of death and to know one’s surprise they found a number of issues, including:

Deficient creativity – apparently HR bored itself to death.  So caught up in ‘creating’ process, it forgot what ‘creating’ actually meant.

Lack of Soul – Organizations need that immortal essence that is given by it’s people.

Formality Glutinous –  To be stuffed so much with formality that you explode from the inside that people can’t stand being around you.

Analysis Paralysis – Stuck in indecision unable to move forward surrounded by so many metrics.

Feline Rabies – Yep, in the end, having 4+ cats on average, did in HR.

HR wont’ be missed by many.  The fact is not many really knew HR.  For years locked behind a department door that had not only a keycode to gain entry, but a palm and retinal scanner as well – security of your employee files being of the utmost importance to the organization.  Where we once knew them from the annual company picnic, alas, it has been years since HR was willing to plan that employee event.  Even our annual open enrollment meetings were cancelled for online, interaction-less, enrollment – efficiency over relationship.  Survey Monkey engagement surveys, email follow-up, phone screen interviews – some have questioned was HR really ever a person at all.  One time, through the sliding window, I once spoke to someone, “Here” I said, as I handed in an exchange of address form, “Thanks” she said.  HR seemed friendly enough.

I don’t mean this to be an anthem to a dead profession, but let’s face it – HR as we have known it, thankfully, is almost there.  I’m asked frequently – “What’s the future of HR?” and I say, “HR will change organizations more than any other single functional area in business.  We have ways to hire a more talented workforce.  We have ways to increase engagement of our workforce. We can increase performance and productivity that has a direct bottom-line impact.  We can make the workers we have better, faster, stronger.  The future of HR – won’t be like ‘HR’ at all.”  But let’s forget the future.  Let’s focus on the present. Let’s make HR not HR.  Let’s make HR everything we want it to be.

Let HR be technology leaders. Let HR be financial leaders. Let HR be Performance leaders.  Let HR be operational leaders.  Let’s plan the picnic and at the same time drive the highest productivity our organizations have ever seen.  Let’s flawlessly administer benefits and simultaneously attract complete freaking studs and studettes to our organizations.  Let HR not be HR.  Let HR be a driver of every part of our business – not a functional area – but an integration into what we do best.

And if we don’t, then yes, HR, as we know it, will be completely dead.

Better Performance Through Hanging Out with Ugly Coworkers

Girls and guys both do this at the bar.  Want to look prettier?  Hang out with your ugly friends! Believe me, being a 5’7″ ginger, I’ve had my share of invitation from my better looking friends to hang out, knowing I was just a prop in their little scheme to look great.   Don’t feel bad for me, gingers are resilient, being the ugly prop has a ton of advantages – you can negotiate free drinks with your good looking friend, maybe even free dinner.  This is why I was so excited this week when Science finally validated what I’ve always known – The better looking you are, the better performance people will perceive you to have!

Check this out from the Time article, Guppies Use Ugly Friends to Seem More Attractive:

“An article published Wednesday by Britain’s Royal Society says that male guppies prefer to associate with their drab-colored counterparts when females are around.  Males actively choose the social context that maximizes their relative attractiveness,” the article said. Or, as lead author Clelia Gasparini put it, “If you are surrounded by ugly friends, you look better.”

Gasparini and her colleagues at Italy’s University of Padua built their theory on a kind of guppy dating game. An aquarium was set up with one female in partition on either end. Guppy bachelorette No. 1 had two attractive, brightly-colored males placed on either side of her. Guppy bachelorette No. 2 was stuck with uglier, drab-colored fish.

When a male guppy was put in the middle of the tank, and given the choice of which female to sidle up to, Bachelorette No. 2 was the more popular pick, with male guppies spending about 62 percent of their time hanging around her side of the aquarium.”

Science!
I know that no one who reads this blog would ever mistakenly give higher performance feedback versus that of their uglier peers!  My readers are Pros! They’re above this.  This begs the question, though, why is it executives, male and female, on average, are better looking and taller than their workforce on average?
Answer: We’re all stupid.  We like pretty things.  It’s why makeup is a multi-billion dollar industry.  It’s why we all want to date the prom queen. It’s how the fashion industry gets you to believe you need that new outfit.  We’re all lemmings.
We, deep down in our subconscious, believe that how someone looks, outwardly, speaks positively about how they perform (or will perform if we’re talking about selection).  We’ve heard it since we were kids from our parents and grandparents – “Oh, I like him, he’s ‘sharp'” or “Look the part”. Physical attractiveness =’s Better Performance, is one the hardest stereotypes you’ll ever face as an HR Pro – because it seems like a victimless crime.  What’s wrong with have a sharp looking, smart team!?  Nothing. But you’re selling yourself fools gold.  Physical attractiveness and High Performance do not correlate at all – Zero.
I will tell you, though, if you’re struggling with your performance, you’re probably hanging with a coworker peer group that is substantially better looking than you. Stop that.  Go find a whole bunch of ugly coworkers and start hanging with them.  It’s the cure for bad performance, guaranteed!

The 8 Man Rotation – 2012 Season

For those new to The Project – you’ll come to notice that every once in a while I like to write about the interaction between sports and HR.  What?  Seems like it doesn’t fit? Really?  Well, for the past three years a band of 5 brothers have been proving this theory wrong by producing an entire ebook worth of sports related HR posts. The starting five:

  • Matt (akaBruno) Stollak – We like to call him ‘The Professor’!
  • Lance Haun – The man at ERE, or at least ‘our’ man at ERE and all around conference husband!
  • Steve Boese – Mr. HR Tech to you!
  • Kris Dunn – KD – the coach on the floor, and the closest thing we have to an actual athlete!
  • And Me

Exciting, I know! But wait, there’s more!  The link below will send you to your own Free copy of The 8 Man Rotation – 2012 Season!  Really, it’s free – make copies, give it away to friends, create an Oprah type book club at work digesting our first 3 seasons – we’ll never send you an invoice – we promise!

8man1-300x300

 

 

 

 

 

 

 

 

 

 

The 8 Man Rotation – 2012 Season – On Sale Now! For Free!

 

 

Are You Great At Faking It?

In our zest to have high employee engagement, HR has once again outsmarted itself.  Follow the logic:

1. High Employee Engagement is a desired measure.

2. HR creates programs to drive Employee Engagement upwards.

3. Employee Engagement thresholds are reached with said programs.

4. HR needs more.

5. If we ensure every new hire comes in ‘loving’ their job/company/industry – we will ‘pre-buy’ some of the engagement measure.

6. Only hire people who ‘love’ our job/company/industry.

7. Candidates have brains.  “Oh, you only hire people who ‘love’ your job/company/industry”

8. Candidates now become really good at ‘faking’ their ‘love’ for your job/company/industry.

9.  Employees are smart to – “Oh, you mean if our ‘engagement’ score comes back higher, you’ll stop making us do these stupid team building exercises?”

10. Employees become really good at ‘faking’ it.

Being male, I was never good at faking it.  I’m Popeye – “I am, what I am, and that’s all I am”.   Fast Company had a solid post on why “Faking Enthusiasm” has become the latest job requirement. From the post:

“Timothy Noah wrote in The New Republic about how Pret A Manger requires its employees to master “Pret behaviors,” such as “has presence,” “creates a sense of fun,” and “is happy to be themself.” Yes–in order to sell you a bacon sandwich, employees must be fully self-actualized. And the amount that they touch fellow-employees is considered to be a positive indicator of sales, not a red flag for sexual-harassment lawsuits.”

It’s such a slippery slope.  Every action we take in leadership has consequences – some of which we know, some we don’t know until they happen.  The best leaders thoroughly try to anticipate these consequences their actions will create.   Requiring employees/candidates have high levels of enthusiasm might seem like a really great idea – but you better have authentic ways of measuring, or you’re just setting yourself up to fooled by those who ‘get’ the game.

Ultimately time and pressure always win out.  Given enough time and/or enough pressure an individuals true colors will show.  This is why it’s important to job requirements that are actually needed.  Authentic enthusiasm is not needed for high performers in most jobs.  Trying to hire for it can create some negative hiring scenarios when time and pressure take their tolls.  Is it great to have enthusiastic employees? Yep – it sure is.  I love being around those employees.  Do I set out to hire that ‘skill’ as a requirement – no – I have great even keel employees as well.  While I might not stop and interact with them as often – they are just as good as the enthusiastic ones.

Here’s what I know. If you’re hiring for a skill that can be faked – candidates will attempt to fake it, if they really want to work for your company.  How do you combat this – eliminate as much subjective stuff as you can from your selection process.  One other thing, if you do decide you need that high-energy personality, understand that personality just doesn’t come when you want it – it’s a person’s core – you get it all the time – there’s no light switch when you decide you’ve had enough.  I see hiring managers all the time that want a ‘certain personality’ – so we find it for them – only to have that same hiring manager come back 6 months later complaining it’s too much!

3 Steps to Getting Rid of an Overpaid Employee

One of the biggest issues we face as HR Pros is trying to get rid of our overpriced employees.  Let’s be real – we made our own bed with this issue!  We were the ones going to our ‘comp’ guy, going “No, we have to go over range, this talent is worth it!”  Now you’re living with an employee making $20K more than the rest of team and all hell is breaking loose!  To be fair, we aren’t the only ones who do this.  Pro sports are classic for overpaying talent, that when the person signs looks like a great deal, but by year 4 or 5 all of sudden you wonder how do we get rid of this stiff! Hello, A-Rod!   The Yankees overpay worse than any other pro sports team in history.  For those who have been following recent developments with the Yankees – they have a major overpay problem with Alex Rodriguez.  From CBS Sports:

“Rodriguez has five years and at least $114 million left on his deal and is recovering from a major hip injury that will cause him to miss a huge chunk of the 2013 season, if not all of it. He’s 37 years old and, while still productive when healthy, is clearly in the decline phase of his career. So obviously the Yankees would love to get out of this contract.

The only issue is … they likely have no shot at doing so.”

$114M – for a broken down, can’t hit his weight, third baseman!  Makes you feel better about your overpaid employees, right!?

Let’s assume your overpaid employee isn’t horrible, but has become just average.  Familiar? How do you get rid of an overpaid, high priced, average employee?  I’ve got a few ideas:

1. Buy Out/Severance/Job Eliminataion – These aren’t all the same – but can be used to help you with this issue. For those HR Pros who have never used these options – you’re missing out.  Let’s be clear, it costs money – but it also gives you legal protection and gets rid of a problem very quickly.  Don’t blow this option off – you would be shocked at what amounts of money an employee would accept to go away.  Start low in your negotiations! Make sure you work with legal to get the right paperwork drawn up to protect yourself against future litigation!

(I’ve been able to get middle management levels folks to go away for $25K!  Huge positive impact to the team, production, engagement, etc.  Best $25K I’ve ever spent)

2. Put them in a box – Most of our leadership teams suck at accountability – to get rid of an overpaid person you need to turn up the accountability to an uncomfortable level – this usually pushes them out the door. You can’t let off the gas – you really have to follow up on the accountability until the person bails.  This can be painful and loud – and usually isn’t the cleanest way to get rid of person – if they’re smart, they’ll know exactly what you’re doing and could cause further problems then your overpay issue! Ironically, most HR Pros use this technique, over all else.

3. The Breakup Conversation – I’ve also had some good success having the breakup conversation.  Face-to-face, nothing in writing, close the door and just get ‘real’.  “Tim – we need to talk. You’re making $20K more than the next highest person on the team, and you’re not delivering that level of compensation.  We’ve got to do something. That could be you leaving in some form – or, what do you think?”  I’ve been amazed what my overpaid workers have come up with in terms of possible solutions.  I’ve had people retire after these conversations. Put themselves into a tighter box then I ever would have created. Even offered up taking a pay cut because they love the company and the job – and realize ‘we’ made an error and it’s become a problem.  I’ll be honest – in my career – pay cuts rarely work out – be cautious using them – but breakup conversations can lead you to a solution!

The Importance of ‘Dear John’ Letters

Check out this great letter from Coach K to Michael Jordan, after Jordan told Coach K he was going to North Carolina:

Jordan letter

 

 

 

 

 

 

 

 

 

 

Coach K gets it.  Yeah, Jordan went to North Carolina, won a national championship and became the greatest basketball player of all time.  But Coach K gets it!

Coach K understands what over half of HR and Talent Pros don’t get – in recruiting top talent – you never burn a bridge.  I’m sure he was upset about losing MJ to UNC – but he never let on that he was.  He sent a very cordial letter, complimenting him and wishing him well.  How many of you do that when a candidate turns you down?  My guess is – not many.  Better yet, how many actually have these letters coming from the hiring manager that interviewed the person, hand signed?  BETTER YET, how many of you have these letters coming from the CEO of your company, hand signed?

The world is a small place and you’re going to be on for a long time.  MJ respects Coach K, because Coach K treated him with respect and always left the door open.

People make mistakes all the time.  Candidates take jobs thinking its going to be great, and some times it turns out to awful.  Many of those folks believe, since they turned you down, and her nothing after – you were pissed.  So, they’ll never reach back out to you and say – “Hey, give me a second chance – this current place sucks!”  Takes about 33 seconds to send this letter out – could have years worth of payback.

 

 

The 1 Thing That Can Make Your Corporate Recruiters Better Overnight

I’ve had 3 opportunities in my career to step into traditional corporate recruiting departments and make changes that would ‘turn’ these departments around so that the organization would see them as a positive producing department, where previously that had not been viewed as this.  As you can imagine there are numerous changes that can be made to do this.  You could go out and hire more talented recruiters.  You could redesign and launch a new employment brand.  You can redesign your processes.  You can launch a new career website.  Add in recruiter specific training.  Get hiring managers and leadership involved in ‘owning’ their talent in their individual departments.  All great stuff.  All things that I eventually did – all which take considerable time and resources!

When you are stepping into a new organization and taking over, those who hired you expect instant miracles.  Why?  Because that’s what you told them you could do when you interviewed.  One problem.  You told them this without truly knowing what you were going to find when you started opening up closet doors in the department and skeletons began falling out all over the place.  You didn’t realize your staff of recruiters were really just HR admins in disguise.  That your ATS was an advance spreadsheet, and nothing more.  Your hiring managers believed the only way to get talent was to wait for you to deliver it to them on a silver platter, just so they could say “I don’t like that kind – bring me another platter!”  You didn’t know your major vendor was the CEO’s cousin who had no clue and no sense of urgency – but was entitled all the same.

Doesn’t matter now – deliver the miracle!

There is really only one thing I know that works in recruiting.  Doesn’t matter if you’re an agency or corporate.  Doesn’t matter the industry.  Doesn’t matter the recruiting experience level you have on your staff.  It’s been the one miracle that in good times and bad has always sets recruiters apart – at all levels.  Activity.  Outgoing phone calls, number of candidates interviewed, number of resumes sent to hiring managers, etc.  Higher activity level = higher recruiting department satisfaction and results, 100% of the time.  It’s a simple miracle.

So – how do you do this tomorrow?

Step 1:  Instantly track the number of ‘outgoing’ phone calls made per recruiter.  If you don’t have technology to track this – develop a simple call sheet that tracks candidate name, phone number, position called for and result.  Track calls for 2 weeks. (outgoing calls only – keep it simple, establish a habit – great recruiters call candidates)

Step 2: On week 3 – set daily outgoing call goal 25% higher than the two week daily average.  (don’t let on you will do this on week 3 or you’ll have low numbers your first two weeks)

Step 3:  Hold those recruiters accountable who aren’t reaching their call goal.

You’ll hear every single excuse in the world – you have to stay strong.  “I have too many meetings” – tell them you are giving them permission to no longer attend those meetings.  “I have to much paperwork” – stop doing paperwork – that’s for after 5pm and on weekends (recruiting isn’t a 40 hr per week job). Only concentrate on calls.  Calls. Calls. Calls.

Miracle, delivered, almost instantly.

Want to hear some more?  Call me – I’ve got more miracles. Sackett.tim@hru-tech.com; 517-908-3156 or @TimSackett  – my company delivers staffing miracles every freaking day!

How Recruiters Will Break Up the SEC Dominance

NCAA Football fanatics love recruiting signing day!  That one day, each year, when you get to find out how good your team will be in 2-3 years.  For the past 5 plus years the SEC Conference has been dominating college football’s signing day (as well has the National Championship games!).  2013’s Signing Day was no different.  Of the top 300 college football recruits – 41% signed on to play football at a SEC school! (see chart below)

2013 Signing Day

 

 

 

 

 

 

 

There really isn’t much difference in recruiting a college athlete than there is in recruiting talent to your organization.  The SEC dominance in football recruiting, is similar to the dominance that Google has over Yahoo or Facebook.  The dominance that Gap might have over similar retailers, etc.   If you are being dominated in recruiting by your competition there are some things you can do, and there are some things that will happen naturally to help return balance to the universe.  Here’s how I think Big Ten, Pac12, ACC, etc. conference will break up the SEC’s dominance in college football recruiting, and how you can do the same with your organization:

1. Stars want to shine – Great you go offered to go to Alabama, along with 20 other 5 star recruits – it all becomes relative.  Recruiters, in non-SEC schools, must sell the ‘opportunity’ for these kids to star right away at their schools.  A 5 star kid at Alabama might be a backup for 2-3 years. While at another school they could start as a freshman.  Not every recruit will buy into this – but many will.  Sell opportunity.

2. The NFL Dream – It says something about you when you’re the 9th best player on your team to NFL scouts.  The 9th best NFL player at Alabama might be much better than the best player at Michigan State – the best player at Michigan State is getting more publicity and more NFL scout action than the 9th best player at Bama.  The difference might only be 3-5 rounds in the NFL – but that’s huge!   Sell the NFL dream that 99% of D1 football recruits have.

3. Stop selling “Michigan Man” – 2nd tier conferences and schools sell this concept of being the right ‘kind’ of person for a school – University of Michigan calls it ‘The Michigan Man’ – we only want kids who are Michigan men, blah, blah, blah.  Really!? Well then, I only want to recruit ‘Alabama Men’ because they seem a quite a bit better!  If you a recruiter is selling this concept of culture to top level recruits – it might make you feel really good about yourself – but it doesn’t ring true for great talent.  Nick Saban doesn’t sell ‘Alabama Men’ – he sells championships.  Sell winning, sell being number one in your industry.  People love playing/working for a winner.

4. Set Up Shop – Eventually you are going to see Big Ten recruiters actually living, buying a house, etc. full time in SEC territory if they truly want to compete for talent in those areas on a regular basis.  Having a local presence, establishing local relationships with high school coaches, etc.  says a ton to a player and his family.  Flying in once every few months, when Johnny Alabama is there every week, says something completely different.  Works the same for your organization – want Silicon Valley talent to come to Tulsa – you better get some feet on the ground!

5.  Start Early – You know there are very little recruiting rules in place for kids under the 9th grade!  A ‘donor’ for your school could fly in a 8th grader, buy him a sweatsuit and take him to his suite to watch your game – all legal, if under 9th grade.  Can you image the impression that makes on a young kid?!  Now you might not know if the kid will actually project out to be great – but you get enough interested at a very young age and you begin to get talent you never got before. Long-tail recruiting.  This is why campus recruiting is so important to many organizations for talent – you need both a long and short term recruiting strategy to fill your pipeline.

There’s one other thing that will eventually work against the SEC recruiting which seems to happen at all great organizations – laziness.  Success doesn’t always breed more success – many times in breeds complacency. The might be the biggest risk of all.  The more success they have in recruiting and the more championships they win – the more other recruiters from outside conferences are going to be working harder to get ‘their’ talent.  Their great success might be their biggest risk!