Category Archives: Business

Your Future Office has 40% Fewer Seats!

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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!

America’s Greatest Threat? Lack of Hourly Workers!

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Businesses big and small are desperate currently for workers. Low-skill, semi-skilled, people who have no skill but are willing to be trained. The hourly rate is anywhere between $12-22/hr. I’ve spoken to companies in every market and industry, many of whom will tell me they’ll hire as many people as they can find, they just can’t find anyone!

Now, I don’t want to get into all the reasons of why organizations are struggling to find hourly workers. There are many, and it’s a complex situation that isn’t going away anytime soon. I want to focus on how not having enough hourly workers puts America at a competitive disadvantage in the world.

What Happens When America Can’t Hire Enough Workers?

First, organizations will do what it takes to actually hire talent. They increase wages and benefits, which initially seems like a big win for workers. Businesses will also raise prices, to pay for those additional expenses. Say, hello to inflation. The supply and demand dynamics of labor all happen fairly quickly.

Organizations will look to become more efficient and add technology that in the long term can be a better value than workers. Let’s be honest, this has been happening since the beginning of time, but in times of true pain in hiring, all this speeds up and happens faster than normal. Say hello to the robots!

Companies will offshore, more than they already do to countries with an abundance of hourly workers. China, Mexico, India, various countries in Africa if they can get politically stable, will gain millions of jobs from organizations looking to sell their products in America. Say hello to more jobs leaving our shores. Also, as we’ve seen with the Pandemic, this will cause he further issues with our supply chain in critical times.

What Should We Be Doing In America To Ensure We Have The Hourly Talent We Need?

Okay – I’ve got some ideas. Some you’ll agree with, some you’ll hate, but something has to change. American demographics are not changing. Our labor force is shrinking and we are getting older as a country. We have a crisis staring us in the face, and we are too divided to even see what’s really happening!

  1. Major investment into trades and apprenticeship programs at the high school and post-high school level. Free College? Screw that, rich folks can pay for college. Let’s have Free Trades and Apprenticeship programs. Let’s start these in Junior High and High Schools and continue them post-high school. Let’s have 22-year-old kids making $40-60K a year in skilled occupations.
  2. Blow up public education as we know it. It’s broken, can we all admit to this. About 70% of kids are not college kids, but we force them down the path of college. Let’s have public education that promotes our best and brightest, but also promotes kids who want to work with their hands, who want to work in the arts, etc. If we are the most powerful country on earth, why can’t we have multiple avenues for our kids, whether they are rich or poor?
  3. Encourage our children to once again be firefighters, police officers, home builders, big truck operators, cooks, delivery drivers, etc. Both boys and girls. I was struck when I was in Australia how many construction workers and road workers were female. You rarely see that in America. Our children should feel proud to have an occupation that is helping their community and others, but instead we, as parents, talk down these occupations. Our children are listening, constantly.
  4. Open the Mexican border. Uh oh, he didn’t just say that!? Yeah, you know who has millions of people who want the jobs that Americans don’t want? Mexico. If you don’t want to work that $15/hr job, step aside, there are people that do want those jobs. Plus, actually having a great labor force strengthens America! Would you rather have Mexican citizens come to America and make American products, or have American companies go to China and have the communist government of China make the products sent back to America and much of the profit goes to China or India, or somewhere else outside of America?
  5. Pay Equity laws limiting the spread of pay between the highest-paid executive and the lowest-paid employee. I’m not saying that entrepreneurs and executives don’t deserve great salaries for their efforts and their risks. They do. But should a CEO of a company make a $100M a year and the workers make $17/hr? That just seems a little bit out of line, right? Should a college football coach make $5M a year? It’s a stupid game. A game I love to watch, but come on! We’ve got a bit out of line with the haves and the have-nots.
  6. National Occupation Corp. What if every single American child upon graduating high school, put in one year of service into a select list of hourly occupations? Road workers, infrastructure projects, building affordable housing in their community, building parks, etc. Mormon kids do a two-year missionary to spread their word, and it doesn’t seem to harm them one bit, in fact, most would argue it actually helps them become better adults. Doing a national occupation corp would show some kids they actually love this type of work.
  7. End programs that encourage workers to not work. I’m hearing politicians talk about a 4th Stimulus! Are you kidding me! We don’t need more stimulus! We need people collecting unemployment and stimulus to prove they can’t find a job. They can’t get work. Because for the most part, it’s a lie! There is work everywhere! Our Unemployment Insurance system is broken and needs an overhaul.

How do you like those ideas!? A little GOP, a little Dem, a little socialism! If you’re a regular reader of the blog some of those ideas, coming from me, probably surprise you. This is how desperate I think this situation is! We are facing an economic meltdown in the future if we don’t fix this issue, that will make the great recession look like child’s play. America can not be without a great labor force, and right now, we are quickly trailing the rest of the world in the one thing we always hung our hard hat on.

Do people really not want to work?

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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.

 

Does a $15/hr Minimum Wage Really Help Workers?

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There might not be a more controversial topic in 2021! Whether or not we (the United States of America) should raise the minimum wage for all workers, in all states, in all jobs to $15/hr.

I would love to say this is ‘simply’ a political issue, but it’s not. It’s much more complicated than politics. Both sides will point to studies that prove why or why not we should have a minimum wage of $15/hr. The reality is, a $15/hr minimum wage is more of an economic issue than political.

What is the argument, really, for and against a $15/hr minimum wage? 

For $15/hr:

  • People need a living wage. $15/hr for a forty-hour week, roughly puts a person at an income level of $30,000 per year. Which, in theory, would bring that person above the poverty level. Let’s be clear, “above poverty level” is still a freaking tough life!
  • Corporations are making record profits on the backs of hourly workers. Hello, Jeff Bezos!
  • Other countries have done this and it’s worked out just fine.

Against $15/hr:

  • Raising the minimum wage to $15/hr and above will cost jobs. If you force employers to pay $15/hr as a minimum they’ll hire fewer workers and have them work fewer hours.
  • $15/hr minimum wage is too little for some markets and too much for some markets. We should let market dynamics decide what the minimum should be.
  • Other countries, like Australia, pay a living wage, but have you been to Australia? It’s not the U.S. It’s U.S.-like, but when you go to a “bar and grill” in Australia you don’t get waited on. You go to the bar, order your food, and they yell your name when it’s done. Need extra ketchup? Go to the bar, wait in line, and hope you can get the one bartender to get it for you. Why? Because wait staff costs too much, so they use them. Things are different. So, yeah, “waitstaff” in Australia gets paid a living wage, but those places just don’t hire very many.

What does the research really say? 

Here is where the rubber meets the road because we can always find a study that will back up whatever point we might have. I’m for an increase in the minimum wage, or I’m against it, I can share with you five studies each supporting my take. Ugh! So, what is it really?

I found a study that looked at all the minimum wage studies (not some dumb Forbes article, real academic research), both for and against, to break down the facts and the myths. Here’s what they found:

  • There is a clear preponderance of negative effects on employment when raising the minimum wage.
  • The evidence is stronger for teens, young adults, and less-educated.
  • The evidence around specific industries is less one-sided.

What does all of that mean? 

First, while you will find studies saying that minimum wage does not impact jobs, there is way more academic and economic literature supporting the other side. Also, the evidence shows a strong effect on younger workers and lower educated, so there might be some room to talk about family or adult minimum wage standards verse just the standard one-size-fits-all. There is also a need to look at minimum wage by industry, again not just across the board.

An example might be, manufacturing sectors can pay $15/hr but service level restaurant jobs can not. Or, $15/hr makes sense in New York City, but not in Winona, MN. Maybe it could be looked at via high margin industries verse low margin industries.

What is clear, from the evidence, is that a straight $15/hr minimum wage, for all people, for the entire country, is not the best remedy for our current dilemma. Most likely, what will happen, if the $15/hr minimum happens is you’ll see organizations adjust accordingly by doing a combination of rising prices, cutting costs, cutting hours, and cutting jobs.

If you believe corporations are just going to “eat” the additional expenses, at the cost of profit, you are at best naive.

What’s my take?

I don’t like the proposal of just across the board we are going to raise the minimum wage to $15/hr across the country. I don’t like it because it won’t do what people think it should do, it’s really just more political posturing. In the end, consumers will pay more (which maybe we should) and corporations will cut to make the same profits. Ultimately, workers will take it on the chin, again.

If politicians truly cared about workers, they would dig in and do a minimum wage by market. It would be way higher than $15/hr in some locations and probably a bit lower in some locations, but there would be more strategy and thought behind it. The federal government does this now with pay bands for federal workers, they should be able to do it for all workers with minimum wage.

To not include market dynamics in compensation policy shows the government doesn’t really care about workers, truly. Because when it comes to taking care of their own, federal government employees, they do take into consideration market dynamics. $15/hr in Los Angles, San Francisco, and New York City is nothing, let’s be real.

Let me hear it in the comments! Are you for or against a $15/hr minimum wage and why? 

The Bad Idea Trap!

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2020 wasn’t the best year for a lot of people and as such we have so much excitement and anticipation for what 2021 will bring, but we are cautious. Already in 2021, we’ve seen some hangover of 2020!

We believe that 2021 and into the near future will be a bit of a struggle for most organizations. Some character building years ahead of us. We’ve come out of a decade of growth, pandemic hits, and now we have some rebuilding to do.

I truly believe when tough times hit, we see the best in people. As professionals, we work harder than ever to get to the success we want. We come up with all sorts of ideas and things to try to get us back on top. Therein lies the problem.

You see, there is this funny phenomenon that happens, that has now been proven in science. Turns out, during bad times, we come up with more bad ideas than good ideas!

Why do we have more bad ideas than good ideas during hard times?

A great historical example (that might have some context to 2020!) was during the 1920s and 1930s. Extremely hard economic times in Germany led to the rise of the Nazis. I think we can all agree, 100%, the Nazis were a very bad idea. But, because of the awful economy, many folks thought the Nazis were a great alternative.

Turns out, depressions, pandemics, social uprisings, etc. Lead us to more bad ideas than good ideas. We start grasping at straws, believing we are trying to help. We are testing out stuff to see what works when we think nothing is working when in reality, we might actually be starting something worse.

To go along with this, when times are awesome, no matter what you do, you probably are less likely to screw something up. “Hey, we did this crazy thing and our sales were up 3%!” Great, maybe if you didn’t do that crazy thing your sales would have been up 10%, but now you think that crazy idea, that bad idea, actually was positive!

Great times cover up many of our bad ideas. Bad times shine a giant light on our bad ideas.

Why am I talking about Bad Ideas? 

2021 might be a ripe time for bad ideas! We all will be pushed and stressed to make things happen. Leaders are going to look for ideas. It’s our job to come up with ideas. Most of those ideas are going to be bad. Sorry, but that’s just simple math. Most ideas are bad, some are good, very few are great.

In HR and TA we tend to believe that our ideas, our projects, our programs, etc. don’t have a giant impact on organizations. Actually, they have more impact than you think, but it’s mostly long-term impact, not short-term. We want these ideas to have an immediate impact, but people and culture tend to take time.

That is why, in 2021, we have to be very careful about the Bad Idea Trap.

I want you to go out and test and try things but move a bit more cautiously out of the gate. Be willing to shut things down quicker. Be more aware of the timing and how your organization is doing. If your organization is killing it, great! Go have some fun, break some things! If your organization isn’t doing well, slow down, take your time, don’t allow yourself to be in a rush, even though it’s going to feel like you should be.

I can’t tell you how many times I’ve been in a large corporate meeting room with a bunch of people and some well-meaning executive starts off with “there are no bad ideas! Let me have them all!” Yes, there are bad ideas and the worse idea is a bad idea that is chosen to move forward!

Maybe our 2021 Slogan in HR and TA should be “Yes, there are Bad Ideas!”

Should You Build or Buy Talent in 2021?

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Two rules of thumb in acquiring talent:

  • In a good, long-term economic outlook, building talent will ultimately be better.
  • In a questionable, short-term economic outlook, buying/renting talent is the best bet.

2021 is not the time to decide to build talent, at least not in the first two quarters. Most organizations have already started renting talent and we see contingent labor as a percent of the workforce rising in Q1 and Q2 as organizations determine how the economy will come back.

We actually saw this start to increase in Q3 and Q4 of 2020.

If the economic uncertainty continues into later 2021, we’ll see these numbers continue to rise.

With so much talk about “Internal Mobility” in the HR Tech space, it seems like the opposite is being spun as the better solution. For a few organizations, who have continued to stay busy during the pandemic and believe they’ll continue after, this is probably the right strategy.

For the vast majority of companies, the focus on hiring more contingent is a better strategy over the next 12-18 months, to ensure they will have much more flexibility and the ability to move quickly to move their headcount up and down based on immediate business needs.

In Questionable Economic Times, You Need Workforce Flexibility! 

I run into a lot of mid-sized enterprise organizations (500-2500 employees) who freak out when you talk about contingent labor. “We only hire direct, Tim!”

Um, okay, so all those Fortune 1000 organizations that have anywhere from 15-30% of their workforce as contingent are doing it wrong? You know better than they do, is what I’m hearing? Or, are you feeling like hiring contingent labor is somehow a sign of weakness for you as an HR/TA Leader?

Our reality is we saw a decade of crazy growth since the Great Recession. Many organizations during that time forget. Forget the need for a fast flexible workforce that you can ramp up and ramp down very quickly. Large organizations, tend to move slower and forget less. They probably have people around who remember what bad economic times look like.

Quite frankly, I don’t care how or who you hire. 

I do know those TA leaders who move up in their careers tend to understand total workforce strategies better than those who stick to one strategy no matter what the external circumstances they are facing. Also, they are more likely to incorporate multiple strategies and test what works more.

In 2021 we see more organizations buying and renting talent in the short-term. They want to make sure, before adding a permanent headcount, that the organization can sustain itself in the long term. If it can’t, quick and easy ramp down. If it can, they already have some trained and proven workers to pick from for the long term.

You only get talent in two ways, buy or build. Both are valid strategies for corporate TA leaders, and both are used often together. What will you be doing in 2021?

3 out of 4 Employees Actually Want to Return to the Office!

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I think most HR pros disagree with this number. I didn’t make it up like I do most of the time, but I was having this feeling that way to many HR leaders and pros were feeling that their entire office workforce just wanted to remain remote. The number is from this recent Human Experience study.

Basically, it’s saying 25% of workers want to return full-time to the office, 50% want some kind of hybrid model where they will return, but have additional flexibility to work remotely, and 25% want to stay remote on a permanent basis.

My guess is most HR leaders and pros if asked this question are under the belief that 50%+ of their office workers want to remain remote, full-time. At least, that’s what I hear when I ask that question to them. Much smaller sample, but it’s also what I hear and read.

What the article is really showing is that our workforce has had a taste of flexibility, and most really, really liked what it tasted like! I find that in very large cities, organizations and leaders are much more flexible. It’s just the nature of big city life. Trains don’t always run on time, commutes can be crazy, etc.

As you get out into smaller communities the expectations changed. You can always make it into work because you’re driving your own car. If you were 15 minutes late in Milwaukee, people will question you. If you’re 30 minutes late in New York, no one says a thing. So, having some flexibility to be treated like a real, functioning adult, for most people has been a breath of fresh air.

But, and it’s a big but – we can’t be naive as HR leaders believing everyone just wants remote. They don’t want remote, the vast majority, want flexibility. They want some understanding. I can be a high performer, and  I can meet my goals and exceed them, just treat me like an adult.

The pandemic might change many things about work and life moving forward, but it won’t change our desire as humans, most of us, to want to have live interactions, one-on-one, face-to-face, to congregate, to share ideas, and see your real-life body language, if at all possible.

Don’t be fooled by a loud minority voice saying a remote workplace is the best workplace. It’s “a” workplace, great for some, horrible for many. Just as in-office is great for some, and horrible for others. The best organizations will figure out the balance.

I’ve Got a Great Business Opportunity for You!

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No. No, you don’t. You have a great business opportunity for you, and you need me to make it happen.

Email Subject Lines in the Past Week

  • “Business Opportunity”
  • “Potential Opportunity”
  • “Great Business Opportunity for You!”

There was one common theme with each one of these messages sent to me. Not one of them was an opportunity for me to make money, but each was an opportunity for me to pay someone else money!

Idiots Using these Subject Lines

Do you seriously believe that these subject lines are working? That people are reading them and going, “OMG! I’m the Luckiest Girl alive today! This beautiful human chose me for this opportunity that I was neither looking for nor really even wanting! #Blessed”

I have a feeling there is something clinically wrong with the person who uses this subject line. I want to get them professional help. Medication, therapy, a punch to the throat, whatever it takes, I’m a giver, a helper of sorts.

I would love it if we could have a law where if some moron uses a subject line like this we can send them away for a while. Like prison, but more used car sales lot they have to live in for eternity. Every day, all day, just wandering the lot getting approached by an overly aggressive used car salesman that won’t leave them alone.

Look, I Get It 

I run a company that has to sell our services. Every morning I get up, shower, get dressed, and head off to work. “Gotta make the donuts!” They don’t make themselves. Our world is predicated on someone buying whatever it is we’re selling.

So, I feel for you, but I’ve got a few words of advice –

Be Better! 

Be someone who you want your kids to be. Be someone you want your grandmother to talk about at bridge club. Be someone who will get referred by one client to a future client.

Also, I get you can’t just put up a subject line that says, “Hey, buy my crappy lead generation tool!” (Although, I bet your click-through rate on that is a minimum of 100% higher than “Business Opportunity”.

The world isn’t looking to do work, to make you money. Maybe I’m wrong, maybe your subject line of “Business Opportunity” was just one big miss by me. You were saying, “Hey, I’ve got a business opportunity for me, I just need a sucker like you to bite”, if that’s the case, my bad, continue being an awful person.

Great Business Opportunity

As always, I’m here to help, fellow sales pros. Here are some subject lines that are guaranteed to get some click-through:

– I’ve got your bag full of puppies!

– You need to verify your Pornhub password

– BOGO on Wine, Chocolate, and Jimmy Choos

– Is this your Mom on Facebook?

“But, Tim, these are all lies!” I know, and I’m super excited you found the commonality between my subject lines and yours. Good luck!

 

–

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?

What is the Perfect Diversity Mix for your Organization?

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This is a question I think many executives and HR and TA leaders struggle with. SHRM hasn’t come out and given guidance. ATAP has not told us at what levels we should be at with our diversity mix. So, how do we come up with this answer?

Seems like we should probably be roughly 50/50 when it comes to male and female employees. Again, that’s a broad figure, because your customer base probably makes a difference. If you’re selling products and services mostly women buy, you probably want more women on your team.

The more difficult mix to figure is when it comes to race. Should we be 50/50 when it comes to race in our hiring? Apple has taken it on the chin the last few years because of their demographic employee mix, and even as of this week, are still catching criticism for having only 1/3 of their leadership team is female, and only 17% of their entire team being black and Hispanic. 55% of Apple’s tech employees are white, 77% are male.

So, what should your diversity mix be?

The most recent demographics of race in America show this:

  • 61.3% are white
  • 17.8% are Hispanic/Latino
  • 13.3 are black
  • 4.8% Asian

Some other interesting facts about American race demographics:

  • 55% of black Americans live in the south
  • White Americans are the majority in every region
  • 79% of the Midwest is white Americans
  • The West is the most overall diverse part of America (where 46% of the American Asian population live, 42% of Hispanic/Latino, 48% of American Indian, 37% of multi-race)

So, what does this all mean when it comes to hiring a more diverse workforce? 

If 61.3% of the American population is white, is it realistic for Apple to hire a 50/50 mix of diversity across its workforce? I go back to my master’s research project when looking at female hiring in leadership. What you find in most service-oriented, retail, restaurants, etc. organizations are more male leaders than female leaders, but more female employees than male employees.

What I found was as organizations with a higher population of female employees hired a higher density of male employees as leaders, they were actually pulling from a smaller and smaller pool of talent. Meaning, organizations that don’t match the overall demographics of their employee base have the tendency to hire weaker leadership talent when they hire from a minority of their employee base, once those ratios are met.

In this case, if you have 70% female employees and 30% male, but you have 70% male leaders and only 30% female leaders, every single additional male you hire is statistically more likely to be a weaker leader than hiring from your female employee population for that position.

Makes sense, right!

If this example of females in leadership is true, it gives you a guide for your entire organization in what your mixes should be across your organization. If you have 60% of white employees and 50%, female. Your leadership team should be 60% of female leaders.

But!

What about special skill sets and demographics?

These throws are demographics off. What if your employee population is 18% black, but you can’t find 18% of the black employees you need in a certain skill set? This happened in a large health system I worked for when it came to nurse hiring. Within our market, we only had 7% of the nursing population that was black, and we struggled to get above that percentage in our overall population.

Apple runs into this same concept when it comes to hiring technical employees because more of the Asian and Indian population have the skill sets they need, so they can’t meet the overall demographics of their employee population, without incurring great cost in attracting the population they would need from other parts of the country to California.

Also, many organization’s leaders will say instead of looking at the employee base we have, let’s match the demographic makeup of the markets where our organizations work. At that point, you are looking at market demographics to match your employee demographics. Again, this can be difficult based on the skill sets you need to hire.

If I’m Apple, I think the one demographic that is way out of whack for them is female hiring. 50% of their customers are female. 77% of its employees are male, but only 33% of their leadership is female. It would seem to make demographic sense that 50% of Apple’s leadership team should be female.

Thoughts? This is a really difficult problem for so many organizations, and I see organizations attempting to get more ‘diverse’ in skin color without really knowing what that means in terms of raw numbers and percentages.

What are you using in your own shops?