The True Value of Working for a Crappy Company

As some of you may have realized from recent posts (Wanted: People Who Aren’t Stupid), I’ve been interviewing candidates recently for the position of Technical Recruiter working for my company HRU. I love interviewing because each time I interview I think I’ve discovered a better way to do it, or something new I should be looking for, and this most recent round of interviews is no different.

Like most HR/Talent Pros I’m always interested in quality work/co-op/internship experience. Let’s face it, it’s been drilled into us, past performance/actions will predict future performance/actions.  So, we tend to get excited over seeing a candidate that has experience from a great company or competitor and we’re intrigued to know how the other side lives and our inquisitive nature begs us to dig in.

What I’ve found over the past 20 years of interviewing is that while I love talking to people that worked at really great companies, I hire more people that have worked at really bad companies.  You see, while you learn some really good stuff working for great companies, I think people actually learn more working for really crappy companies!

Working at a really great companies gives you an opportunity to work in “Utopia”. You get to see how things are suppose to work, how people are suppose to work together, how it a perfect world it all fits together.  The reality is, we don’t work Utopia (at least the majority of us) we work in organizations that are less than perfect, and some of us actually work in down right horrible companies. Those who work in horrible companies and survive, tend to better hires. They come with battle scars and street smarts.

So, why everyone wants to get out of really bad companies (and I don’t blame them) there is actually a few things you learn from those experiences:

1. Leadership isn’t a necessity to run a profitable company. I’ve seen some very profitable companies that had really bad leadership.   Conversely, I’ve worked for some companies that had great people leaders and failed to make money. Leadership doesn’t equal profits.

2. Great people sometimes work a really crappy companies.  Don’t equate crappy company with crappy talent.  Sometimes you can find some real gems in the dump. I talk with idiots, every day, that work for really great brands. Blind squirrels…

3. Hard work is relative.  I find people who work at really bad companies, tend to appreciate hard work better than those who work a really great companies with great balance.  If all you’ve ever known is long hours and management that doesn’t care you have a family, seeing the other side gives you an appreciation that is immeasurable.

4. Not having the resources to do the job, doesn’t mean you can’t do the job. Working for a crappy company in a crappy job tends to make you more creative, because you probably won’t have what you need to do the job properly, so you find ways.

5. Long lasting peer relationships come through adversity.  You can make life-long work friends at a crappy job who you’ll keep in contact and be able to leverage as you move on in your careers.  And, here’s what each of you will think about the other: “That person can work in the shit!”; “That person is tough and get’s things done”; “That person is someone I want on my team, when I get to build a team”.

We all know the bad companies in our industries and markets.  Don’t discount candidates who have spent time with those companies. We were all at some point needing a job, a first experience, a shot at a promotion or more money, etc., and took a shot at a company we thought we could change or make a difference.  I love people who worked for bad companies, in bad jobs with bad management, because they wear it like a badge of honor!

Do You Pay Your Employees More for Referring Black People?

I know a ton of HR Pros right now who have been charged by their organizations to go out and “Diversify” their workforce.  By “Diversify”, I’m not talking about diversity of thought, but to recruit a more diverse workforce in terms of ethnic, gender and racial diversity.  Clearly by bringing in more individuals from underrepresented groups in your workforce, you’ll expand the “thought diversification”. But, for those HR Pros in the trenches and sitting in conference rooms with executives behind closed doors, diversification of thought isn’t the issue being discussed.

So, I have some assumptions I want to lay out before I go any further:

1. Referred employees make the best hires. (workforce studies frequently list employee referrals as the highest quality hires across all industries and positions)

2. ERPs (Employee Referral Programs) are the major tool used to get employee referrals by HR Pros.

3. A diverse workforce will perform better in many complex circumstances, then a homogeneous workforce will.

4. Diversity departments, is you’re lucky enough, or big enough, to have one in your organization, traditionally tend to do a weak job at “recruiting” diversity candidates (there more concerned about getting the Cinco De Mayo Taco Bar scheduled, MLK Celebrations, etc.)

Now, keeping in mind the above assumptions, what do you think is the best way to recruit diversity candidates to your organization?

I’ve yet to find a company willing to go as far as to “Pay More” for a black engineer referral vs. a white engineer referral.  Can you imagine how that would play out in your organization!?  But behind the scenes in HR Department across the world, this exact thing is happening in a number of ways.

First, what is your cost of hire for diverse candidates versus non-diverse candidates? Do you even measure that? Why not!?  I’ll tell you why, it’s very hard to justify why you are paying two, three and even four times more for a diversity candidate, with the same skill sets, versus a non-diverse candidate in most technical and medical recruiting environments.  Second, how many diversity recruitment events do you go to versus non-specific diversity recruitment events?  In organizations who are really pushing diversification of workforce, I find that this ratio is usually 2 to 1.

So, you will easily spend more resources of your organization to become more diversified, but you won’t reward your employees for helping you get reach your goals?  I find this somewhat ironic. You will pay Joe, one of your best engineers, $2000 for any referral, but you are unwilling to pay him $4000 for referring his black engineer friends from his former company.  Yet, you’ll go out and spend $50,000 attending diversity recruiting job fairs and events all over the country trying to get the same person, when you know the best investment of your resources would be to put up a poster in your hallways saying “Wanted Black Engineers $4000 Reward!”.

Here’s why you don’t do this.

Most organizations do a terrible job at communicating the importance of having a diverse workforce, and that to get to an ideal state, sometimes it means the organization might have to hire a female, or an Asian, or an African American, or an Hispanic, over a similarly qualified white male, to ensure the organization is reaching their highest potential.   Work group performance by diversity is easily measured and reported to employees, to demonstrate diversity successes, but we rarely do it, to help us explain why we do what we are doing in talent selection.

What do we need to do? Stop treating our employees like they won’t get it, start educating them beyond the politically correct version of Diversity, and start educating them on the performance increases we get with a diversified workforce.  Then it might not seem so unheard of to pay more to an employee for referring a diverse candidate!