Category Archives: Benefits

The Rules for Hugging at Work Post-Pandemic

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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!

The Weekly Dose: @OurTilt – Leave that doesn’t suck!

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This week on the Weekly Dose I take a look at the startup employee leave technology Tilt. Tilt is reimagining Leave Management to help companies improve retention, streamline processes and reinforce corporate culture.

Let’s face it, most organizations use an Excel Spreadsheet to track company employee leave. No judgment! The vast majority of organizations have tracked leave this way since the invention of Excel! Before that, it was written files. But, now, thanks to Tilt there is a more elegant way to administer employee leave that helps all the stakeholders.

You might be thinking, “do we really have a problem tracking leave?” Maybe not, but leave is more than just HR tracking it. You also have the employee who is on leave, and the manager of the employee who is on leave, who often feel in the dark the entire process.

What I like about Tilt:

– One easy platform to streamline all of your employees leaves into one place where all parties can log in the get the information they need. Super easy to add an employee to leave, and each employee has their own access to track and get answers they need while on leave.

– Fully compliant, in every state, so a perfect solution for those organizations that are multiple states and find it hard to keep up on changing legislation. Tilt helps ensure you stay in compliance and don’t’ find yourself in legal hot water.

– Tilt guides help employees and managers through the process, lowering the amount of time and questions leave administrators have to deal with on an ongoing basis. Also, integrates auto-nudges to ensure both employees and managers do what they need to do, when they need to do!

– Direct communication from employees, managers, and leave administrators that are logged within the platform to ensure all communication is tracked and documented. Plus, great, ongoing manager education around the do’s and don’ts in having an employee on leave.

– Tilt works with every client to review and update leave policies and plans, to ensure your leave plans are built on what’s best for your organization and your culture.

I really like what Tilt is doing. Organizations big and small struggle to administer leave in a really easy way and most of the time all the company leave knowledge is usually stuck in one person’s brain. Also, administering leave is a complicated job, the more employees who have on leave, and the more states you must administer it in.

Pre-leave, leave, and post-leave, you, your employees, and your managers will have the information they need when they need it. All the while the tech helps you stay compliant, saving you time and money. Well worth a demo, especially for those companies managing leave in multiple states.

The Rules for Office Romances

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Valentine’s Day is coming up in a couple of weeks. As HR pros we know what this means, which is usually a lot of unwanted advances by horny dudes who think they have a shot at the hot co-worker, who has absolutely no interest in them at all.

Welcome to the show, kids!

I’ve given out some rules in the past. Everyone on the planet has read my Rules for Hugging at the Office, but Office Romances are a little more complicated than the simple side-hug in the hallway. So, I thought I would lay out some easy to follow, simple rules for Office Romances for you to pass out to your employees on Valentine’s Day:

Rule #1 – Don’t fall for someone you supervise. If you do fall for someone you supervise, which you probably will because this is how office romances work. In that case, get ready to quit, be fired, be moved to another department, and or get the person you’re having an office romance with fired, moved, etc.

Rule #2 – Don’t fall for anyone in Payroll. When it ends, so will your paycheck. At least temporarily, and even then it will be filled with errors from now until eternity. It’s a good rule of thumb to never mess with payroll for any reason.

Rule #3 – Don’t mess around in the office, or on office grounds. Look I get it. You’re crazy in love and just can’t wait until you get home. The problem is the security footage never dies. It will live long past your tenure with us, and we’ll laugh for a long time at you. So, please don’t.

Rule #4 – Don’t send explicit emails to each other at work. It’s not that I won’t enjoy reading them, it’s that I get embarrassed when I have to read them aloud to the unemployment judge at your hearing. Okay, I lied, I actually don’t get embarrassed, but you will.

Rule #5 – Don’t pick a married one. Look I get it, you’re the work-spouse. He/She tells you everything. You get so close, you really think it’s real, but it’s not. You’ll actually see this when the real spouse shows up and keys your car in the parking lot.

Rule #6 – Don’t pick someone who has crappy performance. Oh, great, you’re in love! Now I’m firing your boyfriend and you’ll have to pick between him and us, which you’ll pick him, and now I’m out two employees. Pick the great performers, it’s easier for all of us.

Rule #7 – Inform the appropriate parties as soon as possible. Okay, you went to a movie together, not a big deal. Okay, you went to the movie together and woke up in a different bed than your own. It might be time to mention this to someone in HR if there is at anyway a conflict of some sort. If you don’t know if there’s a conflict of some sort, let someone in HR help you out with that.

Rule #8 – If it seems wrong, it probably is.  If you find yourself saying things in your head like, “I’m not sure if this is right”, you probably shouldn’t be having that relationship. If you find yourself saying things like, “If this is wrong, I don’t want to be right”, you definitely shouldn’t be having this relationship.

Rule #9 – If you find yourself hiding your relationship at work, it might be time to talk to HR. We’re all adults, we shouldn’t be hiding normal adult relationships. If you feel the need to hide it, something isn’t normal about it.

Rule #10 – Everyone already knows about your relationship. People having an office romance are the worst at hiding it. You think you’re so sneaky and clever, but we see you stopping at her desk 13,000 times a day ‘asking for help’ on your expense report. We see you. We’re adults. We know what happened when you both went into the stairwell 7 seconds apart. Stop it.

There you go. Hope that helps as you prepare for Valentine’s Day!

At what age should you retire?

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We tend to believe retirement is an age thing. Well, once you turn 65, it’s time to retire! Do you know where ’65’ actually came from? Most HR pros will probably guess it, it’s when America instituted social security insurance back in 1935.

The U.S. Government, in 1935, didn’t even use any science to determine 65 years old.  At the time, the national railroad pension retirement age was 65, and about half the state pensions were the same (the other half were 70), so 65 years old was chosen. Way less red tape back in 1935! Can you imagine the government trying to make that decision today!?

So, you turn 65 and you’re supposed to retire. In 1935, that probably was fairly accurate. The actual life expectancy in 1935 was only 61! So, we built social security knowing most people would not live to receive it. Today, life expectancy is around 79 years old!  As you can imagine, 65 years old is no longer a realistic retirement age.

I’m currently 50 years old.  It’s my belief that I have about 20 years left to work and save for my retirement. I’m assuming I’ll work until I’m at least 70.  70 years old today doesn’t seem like 70 years old when I was a kid.  My parents are now in their 70’s and they don’t seem ‘old’. I mean they’re old, but not like they can’t do anything old.  Both could still easily work and produce great work if they wanted to.

All of this should change how we look at succession planning in our organizations, but we still use 65 as the ‘expiration’ date of when someone no longer seems to have value. “Oh, you know Tim, he’s going to be 65 next year, I’m amazed he can still stay awake all day!”

65 in 2020 is not the same 65 we saw in 1935!  The health and physical wellbeing of those two people are worlds apart!

Succession Planning needs to catch up with this difference.  HR needs to lead this charge.  Part of this change starts with us changing the language and numbers we use when describing retirement.  Regular retirement age needs to start at 70 years old, at a minimum, and move up from there.  We need to eliminate 65 years old from everything we write and speak.  It’s just no longer valid or accurate.

Once we push this date out, we can then start to plan much more accurately to what our organizational needs will truly be.  Next, we need to have frank conversations with those who we believe are reaching an age where they want to retire and have real conversations.  HR pros have been failing at this for years!  It’s actually not against the law to ask an employee what their retirement plan is! It should be against the law that you don’t ask this question!

If an employee knows that you are working with them to reach their goals, and you let that employee know that ‘hey, we need you for another five years’, most will actually happily stay on the additional time.  My Dad worked in a professional job until he was 72, and they wanted him longer! Don’t ever underestimate the power of being wanted. As we age, that desire to be wanted just increases!

So, I’ll ask you. At what age do you think someone should retire?

3 Ways You Can Extend the Work Lifecycle of Older Employees

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One of the biggest biases we have as leaders is ageism. If you’re 35 years old and running a department and you are looking to fill a position on your team that will be your righthand person, the last thing you’re looking for is a 55-year-old to fill that spot! That’s just me being real for a second.

You and I both know that 35-year-old hiring manager is looking for a 25 – 28 year old to fill that spot

That’s mainly because at 35 you’re still basically stupid. I was. You were. We think 35ish is the pinnacle of all knowledge, but it’s really when we just start learning for real.

So, we have this core issue to deal with in workplaces right now. Our leaders are mostly Millennial and GenX, and Millennials are increasing into these roles at a rapid rate. Because of the Boomers leaving in large amounts, there aren’t enough talented young workers to replace the knowledge gap that is being left. So, we are left grappling with what we think we want (youth) with what really needs (experience!).

A recent study at the University of Minnesota found that employers need to add programs to focus on older workers:

The study argued that programs aimed at training workers won’t be enough to satisfy the state’s need for workers between 2020 and 2030. New policy directives and incentives may be needed, including offering pathways for baby boomers to delay retirement, drawing in workers from other states and supporting immigration from other countries

“There’s all this focus on workforce development, but none of it is guided to older workers,” said Mary Jo Schifsky, whose business, GenSync, advocates for meaningful career pathways for older adults and who helped initiate the study for the Board on Aging with the U’s Humphrey School of Public Affairs. “We need career pathways for older workers just as much as we do for younger workers.”
 
In the U survey, managers ranked baby boomers high on loyalty, professionalism, engagement, and their commitment to producing quality work.
Employers need to find ways to extend the Work-Life Cycle of the older employees that work for them until the workforce, technology, and retraining programs can catch up to fill the void. Most employers are only focused on programs that are looking at younger workers.
So, what can you do as an employer to extend the life cycle of your older employees?
1.  Have real conversations with older employees about what they want. Most employers shy away from having the ‘retirement’ conversation with older employees because they think it’s embarrassing or illegal. It’s not. It’s a major reality of workforce planning. “Hey, Mary, Happy 55th Birthday, let’s talk about your future!” Oh, you want to work 18 more years! Nice! Let’s talk about a career path!
I can’t tell you how often I’ve heard a hiring manager say, “I don’t want to hire him because he’s 59 and is going to hire soon.” Well, I spoke to him and he wants to work until he’s 70 (11 years) and our average employee tenure is 4.7 years. I think we’re good!
2. Stop, Stop, Stop, believing that all you can do is hire full and part-time FTEs into roles. If Mary, my 63-year-old financial analyst wants to give me five more years of work, but only wants to work three days per week, in role ‘traditionally’ we’ve only had a full-timer, I’m taking Mary for three days! HR owes it to our organizations and hiring manager to push them out of the box when it comes to schedules and how we have always filled positions. 3 days of Mary is probably worth 3 weeks of an entry-level analyst in the same role!
We do this to ourselves. I hear it constantly from hiring managers, “HR won’t allow me to do that.” Why? Have you asked? No, but HR doesn’t allow us to do anything. We need to come to our hiring managers with solutions and let them see we are open to doing whatever it takes to help the organization meet its people’s needs.
3. Develop programs and benefits specifically designed to retain older employees. I work with a plant manager who developed an entire engineering internship program around having his retired engineers come back and work three days a week with interns and paid them ‘on-call’ wages for the days they weren’t there, so interns could call them with questions at any time. These retired engineers loved it! They could come to do some real work, help out, and still have a great balance.
It went so well, he kept some on all year, on-call, and partnered them with younger engineers who needed the same support and assistance from time to time. The on-call rate was pretty inexpensive, the support and knowledge they got in return, was invaluable.
It all comes down to flexibility on our part as employers to extend the life cycle of our older employees. We no longer have this choice where we can just throw our older employees away and think we can easily replace them. We can’t! There physically isn’t anyone there!
This is about using each other’s strengths. Younger leaders will be stretched and we need to help them stretch. We need to help older employees understand their roles. In the end, we need to find a way where we can all see each other for the strengths we bring to the table, not the opportunities.
It’s our job as HR professionals to work on how we can extend the life cycle of each of our employees.

Are Low Deductible Health Insurance Plans Really the Best Plan?

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It seems like right now so many folks are paying attention to their actual health insurance for the first time! Turns out, when people are dying in a pandemic, we will finally pay attention to what kind of health insurance we have from our employer.

There are basically a few kinds of plans that most folks have in the U.S.:

– Low deductible plan – you pay more upfront, but if you get sick you pay very little in terms of bills overall.

– High deductible plan – you pay less out of your check on a weekly basis, but when you get sick you will end up paying a much larger portion of the bill.

– HSA plan – this plan is less used because it’s confusing but basically it’s a combination of you paying a portion to a savings account which helps you pay for normal healthcare expenses, but also has a high deductible safety net in case something major happens to you, you won’t go broke.

Most people have a bias towards low deductible health plans. Low deductible plans are chosen the most because we fear that what rarely happens. So, we pay a ton of money to have great healthcare coverage, but most of us will never come close to using the coverage we have. Few chose high deductible because we are scared something might happen and we don’t have the money to pay for it. Even fewer chose HSAs, even though it might be the better overall option, but again, we really fear the cost of something bad happens.

This is the basis of almost all insurance, fear.

We almost always choose the most coverage we can get, even when it costs us more in the short-term and long-term. We love safety. We are also, for the most part, really stupid when it comes to math and more specifically statistics. If we did understand basic statistics we would always choose the high deductible plan and put the weekly difference into a conservative investment portfolio. After a decade or two or three we would have this giant mountain of cash, at least about 99.6% of us would!

Fear is a powerful drug.

We buy car insurance and are given options like $250, $500, or $1000 deductible in case we get into an accident. Most of us will choose the lower amounts even those the vast majority of drivers never get into an accident. We buy flood insurance for our houses even when we aren’t in a flood plain because the one hundred year flood plain is a mile away from our house.

So, why am I talking about healthcare deductibles?

We are moving into a high unemployment environment. People are also going to be short on cash, so there’s a good chance when your next open enrollment happens you’ll have more people who will choose a high deductible, cheaper plans. In HR, this pains us greatly, because we want everyone to have the “best” insurance possible.

Why does HR want this? Because we deal with the fallout when someone chooses the high deductible insurance and then something happens and all of sudden it becomes ‘our’ problem to help this employee. So, to not have this pressure, just push everyone to a low deductible.

I’m telling you this is bad advice. HR is giving bad advice. Safe advice, but bad advice, based on math. Real math, not HR math.

 

It’s not Unlimited PTO or Accrual! Both are flawed, but I have a Plan! (The Sackett PTO Plan!)

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Okay, I promise, after this post, I’ll stop talking about this subject!

I will tell you when I started this conversation over a tweet my friend Matt Charney put out, and a subsequent viral LinkedIn post on the same subject, there are clearly two very opinionated sides to this issue!

Side Unlimited PTO (UPTO):

  • There’s nothing like the idea of being able to just take time off when you want and not having to worry if you have the ‘time’ or not saved.
  • Yes, we know the data, and it says on average people use less time, but that’s my choice.
  • If you work at a company with a great culture and leadership, this is the only way to go. It’s a beautiful day and I want to take my child out for a picnic, but oh, I only have five days left for the year, I better save those. That choice sucks.

Side Accrual:

  • UPTO folks are idiots that don’t understand this is a scam that benefits companies, not employees.
  • Accrual is better because if I decide to leave the company the company has to pay me the time that I’ve banked.
  • When I take accrued time off it feels earned, thus I don’t feel like I need to work while taking the time off.

The Facts about Paid Time Off (PTO):

  • Any PTO plan sucks if you work in a toxic culture where you feel stressed to take time off.
  • Unlimited PTO is a fallacy. No organization is going to let you take off the entire year of work paid and not fire you. Grow up.
  • If your reason for liking a plan is that it’s nice when you leave the organization. That plan is a broken benefit for the organization.
  • Every employee should feel comfortable to stay at home when they are sick. Meaning, they will get paid and not feel pressure to show up and risk getting others sick.
  • There is no perfect PTO plan because we all value our time differently.

What’s the better PTO Plan?

Here’s what we know. Making a statement like, “Why don’t we just act like adults” shows me you don’t have a clue about how complex this issue is. The pandemic basically killed the standard UPTO plans moving forward. “Oh great, you offer UPTO!? So, like during a pandemic you’re going to keep paying me fully for three months!?” Um, well, not exactly…

You can say Accrual is the way to go, but the vast majority of folks said the only real benefit for Accrual is that it’s a termination insurance policy. So, that doesn’t work either! If the goal of PTO is to make sure people take time off to recharge and be healthy, saving it for when you get fired isn’t a good plan!

Here’s the Sackett PTO Plan to save America:

  1. If you are sick with a communicable disease, you must stay home until you are released to come back to work by a medical professional. We all have the ability to use Teledocs now, this isn’t difficult. The company will continue your pay. If you can work from home and have the ability while at home recovering there is an expectation you will do what you can. (You’re an adult, right?)
  2. If you take care of someone else and they are sick and need your care the company will cover that cost of you staying home and taking care of them. Again, Teledoc, show me that this is real and we are all good, take care of your loved one.
  3. You must take three weeks of vacation per year, minimum based on your plan/organization/FTE status/etc., in increments you feel are necessary for your lifestyle. So, low end you get three weeks, high-end is up to organizations and your ability to negotiate.
  4. You will get “X” number of holidays paid for – let’s not get silly no one needs Arbor Day off, and yes, we’ll give you your birthday off paid.
  5. You will get automatically 2 weeks no-fault termination/leave pay, at a minimum based on your level of position, when you leave the organization. Whether we fire you or you decide to leave on your own, makes no difference. No reason to “save” our vacation time any longer.
  6. There is no carryover of vacation time from year to year. Want to take a month off to travel around Europe? Be a great performer and you shouldn’t have a problem.

Did we cover everything? Sick time is covered. We will force folks to take time off for wellness. You get paid holidays. You get money to leave. If you perform really well, you get flexibility.

I think this is a plan that I would feel like I’m being taken care of by my employer. Yes, it’s expensive, but so is finding and training great talent. Could someone take advantage of this plan? Yes, and I would fire them. For the record, that usually stops others from trying to take advantage.

Have a better PTO plan? Hit me in the comments!

Also – don’t forget to check out the HR Famous Podcast where Kris Dunn, Jessica Lee and I debate this topic. They got it wrong and I got it right!! Well, maybe…

E10 – The HR Famous Podcast – Unlimited PTO or Accrual? What would your employees choose?

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In Episode 10 of The HR Famous Podcast, long-time HR leaders (and friends) Jessica Lee, Tim Sackett and Kris Dunn get together to discuss how COVID-19 has changed their daily life, the Cuomo brothers and work-life balance. Tim wants to talk about PTO: accrual vs. unlimited. What’s better? There are different answers with many variables…

The gang continues to talk about how PTO will be molded by the COVID-19 crisis with Kris wondering if unlimited PTO might attract the “average” performers. The team closes by talking about the differences in how different types of employees want their PTO and Tim brings up the demise of the Unlimited PTO plan.

Listen below and be sure to subscribe, rate and review (iTunes) and follow (Spotify)!

Show Highlights:

1:56 – Tim brings up the question “How your life was pre-coronavirus vs. now – what’s the percentage?” He says he has had a 50-60% change where Jlee has had nearly a 90% change, drinking more and bonding with family.

4:05 – KD talks about how he isn’t doing anything. He’s going on a run sometimes and avoiding people as much as possible. He’s also being a little more introspective. Tim calls KD out on his new deck-lifestyle with the cat.

7:00 – KD hits the cancel culture with a “BACK OFF” and brings up the Cuomo Brothers (recently featured in a POLITICO article) since Chris Cuomo has the coronavirus but is still doing shows from the basement. Where’s our work-life balance? Is he a bad example? JLee says haters are going to hate, and maybe he should use that sick leave – but he’s doing a service to the people by showing them what COVID-19 looks like. POLITICO is just hating.

12:10 – There’s rarely a moment where someone reaches the top without outworking someone. KD calls out the bullsh*t – for everyone, you have to put in the work and people who don’t work as hard, can’t expect the same results. You have to grind it out. Shout out to Chris Cuomo.

14:47 – Tim brings up unlimited PTO vs Accruals – you’re not going to be using 4 months of BeachPTO, but what would win if you had to choose? Would more people choose the unlimited plan?

18:26 – KD says the answer is different pre and post COVID-19. Tim brings up that HR pros have different opinions than the majority of workers.

22:15 – KD likes a system where you use it or lose it for your vacation time – but sick leave can be rolled over for extended sick leave, extended maternity leave, etc. It’s important for major medical! Jlee kind of agrees but when she was younger, she banked those days for an unused PTO pay out.

25:03 – Tim says PTO will be shaped by COVID, because people may stop coming to work sick. Hybrid PTO packages might be in our future…

28:00 – KD challenges Jlee – what plans would workers select, if they could? Jlee says, there’s no way it’s a one size fits all.

31:20 – KD asks Tim, “What plan will the top performer select?” Tim says unlimited, but Jlee and KD say no – KD says the real answer doesn’t matter because the best managers treat their high performers different.

34:48 – Jlee and KD talk about accruals being preferred over unlimited because sometimes, you don’t want anyone to call you and you want the official day off.

38:50 – The team closes it out with their final comments and how unlimited PTO just might go away post-coronavirus.

Resources:

Jessica Lee on LinkedIn

Tim Sackett on Linkedin

Kris Dunn on LinkedIn

HRU Tech

The Tim Sackett Project

The HR Capitalist

Fistful of Talent

Kinetix

Boss Leadership Training Series

4 Great Things About Your 401K Taking a Dump!

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The stock market is in the crapper and everyone’s 401K took a hit that will take years to recover, so how can any of this be great!?!

Oh, just give me a minute to explain…

Yeah, it sucks! I mean panic in the streets sucks, I just lost my retirement condo in Boca sucks! I’m trying to make light of a bad financial situation. Oh wait, I kind of am.

The reality is we all put ourselves in this situation. We gambled. We put our money into mutual funds and 401Ks and other investment vehicles and we loved watching them gain money for the last ten years! Since the great recession, the S&P 500 has tripled! If you got in early, you’ve seen your entire retirement increase substantially from where it was.

Good news, bad news. It sucks we are all taking this hit, but we’ve had a great ride up! Plus, it will ride up again, for those who have a few years. For those who don’t, I’m very sorry, truly. It’s a great lesson for us all that as we get close to retirement, get the vast majority of your money out of the market and into much more conservative investments.

So, what about this nightmare do I think is great?

1. GenX lives! It’s too late for the Baby Boomers, they’re out. The Millennials thought they were on the cusp of taking over, well sorry, kids, Daddy isn’t leaving just yet! Thanks to the market fall, Gen X is here to stay for another decade and the Millennials looking to take over as leaders are just going to have to sit back and relax.

2. Retirement is Boring! I know you wanted to retire. It seems so great sitting around Florida watching your friends get older, sicker, and eventually die. Look, you get one run around this rock, why just stop, let’s keep this thing going! There isn’t one part of me that is looking forward to retirement. What am I going to do, sit home and watch crappy CBS cop shows? Nope, apparently, I’ll be getting a second job to help pay for the food bill with all my Gen Z kids at home that can’t find jobs.

3. Being Poor is a Great Diet Plan. Do you know no one has ever written a diet book about not having money and how it reduces your caloric intake? It seems like someone would have ‘scientifically’ picked up on that. Ugh, I lost most of my retirement in the stock market, now I have to stop going out for the nice 3,000 calorie dinners at the Applebee’s! America is way fat! LIKE WAAAAYYY FAT! We all need a diet. To feel a bit hungry again. We’ll all be tougher for it!

4. I’m buying great companies at a super discount! I’m a conservative gambler. I only like winning! Do you know how you win? Buy great, profitable companies, at 50% off and double your money in a shorter period of time! Now is not the time to be gun shy. This will be one of the top 2 or 3 buying opportunities in the history of the market!

I know, there is a portion of folks who will read this and think, “Tim’s an asshole!” How can he say this!?! He has no empathy! (Editor’s Note: Tim is an asshole.)

We all choose to react to tragedy in different ways. This sucks. This sucks for me and my family. This sucks for my business. This sucks for you. We can all agree on that. I also need to move on. To move forward. We did that after the great recession and we were stronger for it. We’ll do that again.

Also, Gen X Lives!

A 30-Minute Commute is All Most People Are Willing to Take!

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We all kind of know this fact. Once you get more than 30 minutes away from your job, no matter how you actually come into work, it starts to feel like a chore. You begin to hate the commute. Doesn’t matter if you drive, take a train, walk, etc. 30 minutes, one-way, is our max!

It’s called Marchetti’s Constant: 

Marchetti’s constant is the average time spent by a person for commuting each day, which is approximately one hour. It is named after Italian physicist Cesare Marchetti, though Marchetti himself attributed the “one hour” finding to transportation analyst and engineer Yacov Zahavi.[1] Marchetti posits that although forms of urban planning and transport may change, and although some live in villages and others in cities, people gradually adjust their lives to their conditions (including the location of their homes relative to their workplace) such that the average travel time stays approximately constant.

I can’t tell you how many times, as a Recruiter, I was talked into believing this wasn’t true by a candidate that then screwed me by ghosting on an interview after driving to the location and seeing it was too long, declining an offer late, started the job but then quickly left because the commute was too long, or we had to over-compensate to make up for the time the person spent on the commute.

Probably one out of one hundred people can actually take a longer commute and live with it. 99% of people will eventually crack if the commute is over thirty minutes. So, what does this mean for us trying to attract talent to our organizations? There are certain locations in the U.S. that are much easier to have a thirty-minute commute than others:

On average, large metro areas with the shortage commute time:

  1. Grand Rapids, MI
  2. Rochester, NY
  3. Buffalo, NY
  4. Oklahoma City, OK
  5. Salt Lake City, UT
  6. Kansas City, MO
  7. Milwaukee, WI
  8. Louisville, KY
  9. Hartford, CT
  10. Memphis, TN

All of these metro areas have the majority of their citizens with a commute time under 30 minutes.

Who have the worst commute times? Think about the largest metro areas, even when you take into account their transit options: New York, San Francisco, D.C., Philly, Boston, Seattle, Chicago, etc.

So, it’s thirty minutes one-way or one hour per day, or five hours per week that the average person is willing to commute. I wonder if this plays itself out when you begin to factor in work from home options?

Let’s say you ask someone to commute one hour each way, two hours per day, but you let them work from home two days per week. Total commute time is still more at six hours per week, but would that make a difference enough to retrain and attract more talent to your organization? I have a feeling it would. It’s worth a test for those who have longer commutes at your work location.

Also, I have seen this done by any company, but I would love to see turnover data by commute time! I have seen data on hourly worker turnover and it’s amazing to see the differences by miles from a worksite in a radiant pattern. Every mile you get farther from the work site, the turnover increases exponentially until you get to about five miles where it skyrockets. So, we know if you hire hourly, low-skilled workers, your best bet for retention is less than five miles from your location (this also is about a 15-minute commute – car, public, walking, bike, etc.).

So often we want to focus on the stuff we control, versus stuff the candidate or employee can control, but we think it’s ‘their’ decision. The problem is, we allow people to make bad decisions and don’t think it will affect us, but it does in high turnover. All things being equal, or close to equal with candidates, take the one with the shorter total commute!