Category Archives: Business

Google Leading the Way on #COVID19 Gig Worker Response! #Coronavirus

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Google has more contractors (gig workers) than actual full-time employees. Did you know this? I didn’t. Google employs roughly 120,000 contractors and has about 100,000 regular full-time employees. Welcome to 2020!

Here’s what most people don’t understand about the contracting world (it just happens to be my world at HRUTech.com!)

  • Most contractors (gig workers) want to make as much money as possible, as such, most will choose to take the highest dollar offer in lieu of medical insurance and paid time off (PTO). Some states require a certain amount of PTO.
  • Running a contract staffing firm, our contractors are our product. If our ‘product’ doesn’t work, we have zero revenue. So, it’s not like we can just have contractors stay home for 14 days and pay them their full-time wage. It’s simple economics, zero revenue in means no money to pay out, plus most large enterprise clients, like Google, are usually out 30-90 days in paying their contract staff invoices.
  • Of course, every contract and temp staffing firm wants to do what’s best. They also want to stay in business.

Google understands this simple dynamic and they stepped up big time this week in making this announcement:

“As we’re in a transition period in the U.S.—and to cover any gaps elsewhere in the world—Google is establishing a COVID-19 fund that will enable all our temporary staff and vendors, globally, to take paid sick leave if they have potential symptoms of COVID-19, or can’t come into work because they’re quarantined,” the post read.

Google relies on approximately 120,000 temps and contractors on top of its 100,000 full-time employees, and not all of them have paid sick leave currently. Google’s post seemed to indicate that the fund would cover expenses for those not already able to take sick leave under current employment arrangements.”

That message right there is coming from a huge place of understanding from Google! We rely incredibly on this pool of talent, our contractors, and we have to find a way to make sure that the suppliers of this talent are taken care of so they can take care of their employees.

Uber and Lyft also came out this week and told drivers that tested positive for COVID-19 they would also pay them their average week’s wage to stay home and not drive. Another giant cost for these companies, but when you rely on gig workers as your business model, you better find ways to take help these folks out when a crisis hits.

Most organizations don’t consider “Total Employment” when a crisis happens. They circle the wagons around their own FTEs and not much else. I’ve spoken to multiple giant enterprise HR leaders this past week and this concept wasn’t even a blip on their radar! They could care less about their contractors and their partners for talent when it comes to COVID-19.

This is ultimately a much bigger problem for these organizations. I preach constantly to organizational TA and HR leaders they should be owning all talent in their barn. Total employment (FTEs, Contractors, Temps, Consultants, etc.). This is who really gets your work done, and if you don’t have awareness of all aspects, you are truly missing the boat.

What do you think? Do you feel your organization should be paying attention to contract and temporary workers during this public health crisis?

Should We Pay Sick Employees Who Have #COVID-19 #Coronavirus?

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Yes. Would be the easy answer. The popular answer.

Let me share a little story and then we can really answer this question.

Local hotel in your city down by the local convention center. A national chain, but locally owned and operated. The husband and wife both work full time at this hotel. Every conference for the foreseeable future has been canceled at the local convention center. They went from almost full every week to under 25% full. One of their 150 employees just came down with COVID and now many others will as well. This employee wants to be paid for all 14 days, minimally, they have to be out of work.

Because of the 75% loss of business, the owners are seriously going to have to cut expenses to even stay open and escape bankruptcy. They care deeply for their staff. They consider their staff, family. Many have been with them for over twenty years. These are proud people.

United Airlines is going to have its business crushed as well. Turns out, people don’t want to fly on virus chambers during deadly outbreaks. Plus business travel is being curtailed at almost every organization. A big giant publicly-traded company that probably made billions last year in profit, when times were flying high and the economy was awesome. They could also have an employee come down with COVID-19.

Do you think both employers should pay sick leave for as many employees who need it, for as long as you need it? Just the local hotel? Just United Airlines?

Why?

Business Insider ran an article about how “brilliant” Trader Joe’s is for coming out and saying they’ll pay their employees to stay home until the virus symptoms are gone, flu, COVID, etc. It seems like the ‘right’ thing to do. You have sick employees and you want to protect them and your customers, and your brand, so pay them to stay home.

It’s an easy decision when you make 76% margin on 6 oz. of Organic Wasabi SeaFoam for $12.99. It seems ‘right’ (Editor’s Note: Tim has no idea if Trader Joe’s sells Organic Seafoam or their margins). Rich people buy overpriced, and quite tasty, products, great business model, well run, we’ve got the money, it’s the ‘right’ thing to do.

It’s not the “right” or “brilliant” thing to do for everyone. One organization decides to make that same decision and the entire company goes under. Or they can’t ever recover to the level they did and now they’re being sold to private equity who’s going to chop them up and sell the pieces. Brilliant business decisions are brilliant in very specific ways.

We all have stakeholders that these decisions will impact. Employees. Customers. Shareholders (F! The Shareholders, Tim!). Etc.

The reality is my grandmother and her pension might be one of the shareholders who are super concerned about being able to retire. Joe Plumber might have is retirement in his 401K that has a concern about these decisions. These decisions aren’t linear.

It’s easy to say pay all sick employees for as long as they need. Any moron can say that’s a “brilliant” business decision because it’s always going to be a popular business decision. The brilliant business decision, and maybe the most difficult one a leader will ever have to make, might be to not pay sick employees for their entire time they need to be off.

Each organization is going to have to make these decisions for all involved. It’s multi-dimensional and it’s complex. Before judging someone as being brilliant and an idiot, you would first have to understand each individual situation.

All that being said, we need to find ways to help our employees and their families out during times of crisis. That’s what the best organizations do. It’s not always just more money, more time off, it can be a thousand different things. The key is to have the conversations and be out in front with communications early, so employees aren’t having the additional stress of not knowing.

Compromise Kills Innovation!

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The most innovative leaders of our time were mostly assholes. Why? They refused to budge on their idea. Everything in their body told them what needed to be done to make their idea happen, and they refused to compromise on even the smallest details. This is how greatness happens.

True change only happens when someone is unwilling to listen to their critics.

This is also the exact way more careers are killed than any others. It’s all or nothing. Greatness happens at the edges, not in the middle.

Unfortunately, this doesn’t fit well in most corporate environments. Most MBA programs don’t teach you to be a tyrant. Leadership development, in today’s corporate world, is about bringing everyone to the middle. Finding ways that we can all get along. Even suppressing those who push the envelope too far.

We want everyone to line up nice and pretty. To play the role they were hired to play. To be the poster children for compromise.

It’s important for leaders to understand this concept if your job as a leader is to drive innovation and change. You don’t drive this through compromise and you need some renegades on your team, that quite frankly you might not even enjoy being around.

It took me so long to learn this because I was a renegade as an employee. I couldn’t understand why my leaders kept pushing me to compromise when I knew the right way to do something, the better way to do something, the new way to do something.

Once I became a leader I acted the exact same way towards those who were like me. Get back in line. Run the play. Do what the others do. That was the leadership I was taught. I didn’t value those who seemed to be fighting me, just as I use to fight. New leaders struggle with this because we take it personally.

We feel like those renegade employees are actually fighting us. When in reality they’re fighting everything. It’s our job as leaders to understand that the fight they have is super valuable if directed at the right target! To get them to understand they don’t need to fight everyone and everything but pick some fights that help us all and then support that fight.

This isn’t everyone you lead. It’s actually a really tiny number, but it seems bigger because they take up a lot of time and cause a lot of commotion amongst the drones who want to stay in their box. But, this is how change and innovation are born. By one person who is unwilling to compromise because they know a better way and they’re willing to fight to make it a reality.

This isn’t to say it will always work. Most ideas fail, but those who are willing to make an uncompromising stand for their idea, stand a better chance of seeing that idea succeed.

Here’s where I struggle. If we believe the above premise is true, it seems exclusionary. So, can we be innovative and inclusive of thought all at the same time? I’m arguing above that you can’t. What do you think? Hit me in the comments.

The 1 Factor You Must Have to be an F500 CEO!

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It’s not what you think.

Right now you’re sitting there reading this thinking, “I need to know what this is so I can see if I have it or can get it because it’s in my life plan to be an F500 CEO!” You probably are thinking it must something like grit, determination, maybe smarts, attractive looks, or maybe it’s Tim talking about this it’s probably height because he’s a short motherf@cker!

Something truly, statistically interesting has happened over the last 14 years to CEOs of the Fortune 500. It really defies logic.

In 2005 the average age of an F500 CEO was 46 years old. Feels about right. 46 feels like young enough but also old enough all at the same time. The perfect combination of youth and wisdom.

In 2019, do you know what the average age of an F500 CEO was? You would think in 14 years that line would probably stay about the same. Maybe because of all the Baby Boomers leaving the workforce we would see it fall, but probably not too much. If a few Boomers were hanging on, we might see it rise a little, but again, it’s hard to move the average all that much.

In 2019 the average age of an F500 CEO was 59! Basically, over 14 years, the average age went up one year every year! It’s hard to even imagine that could be the case!

So, what’ the one factor you need to be an F500 CEO? 

You need to be a Baby Boomer!

That’s right. Stop going to that Ivy league college and working on your MBA. Don’t worry if you’re ugly or short or fat or female or black or white or a dude. The only thing you really need to be is OLD!

Turns out, big giant companies like Old folks running their company!

Why?

If you are running a multi-billion dollar company, maybe even closing in on a trillion (Trillion is the new Billion!) you don’t want some kid at the wheel. You want someone with seasoning who will tend to be less reactive to major events. They’ll be a bit slower in how they move the company, a bit more conservative in how they manage the assets and resources.

Also, think about what’s happened over the past 15 years. We came out of the great recession. We had this young 45-ish CEO taking the lead in turning us around and putting us back on top. It actually worked! We’ve had this great decade of prosperity! Do you know what companies do when things are going really well? They don’t change anything! Including their CEO!

In fact, many times if the CEO wants to retire, and they trade that CEO in for a younger one, and 12 months in the company is slightly underperforming to expectations, they’ll fire that CEO quickly and bring back the old one to right the ship!

So, 37-year-old Millennial who is chomping at the bit to take over. Calm down and wait until you’re old! You really only have about twenty more years to wait until it’s ‘your time’. That isn’t that long, just 25% or so of your life. You’ll get there, be patient!

Do you want to work with Tim Sackett? This video will answer that question!

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I’m a big fan of DisruptHR and the format! I’ve been part of the team that has run the first three DisruptHR Detroits and in 2020 we’ll do our first DisruptHR Lansing. Five minutes, 20 slides, each slide moves automatically every 15 seconds. Simple, yet so hard to pull off effectively!

There are now well over a hundred DisruptHR cities and hundreds of events worldwide taking place each year. My friend, Jennifer McClure, is the co-Founder of DisruptHR and it might the single best thing that’s happened to HR this decade! Truly. To get HR leaders and pros out of the office and stretch our minds, have a little fun, push the envelope of what HR could become. Give me something better than that in the last ten years!

You can start your own DisruptHR (input city name here) for $500! It’s easy, just contact Jennifer through the DisruptHR website. It’s fun. It really engages the HR community in your city. It’s fairly easy to get a few sponsors to throw some bucks at you to help with the cost. And even bad DisruptHR talks are some of the best DisruptHR talks!

I was fortunate enough to be chosen to speak at DisruptHR Grand Rapids this past fall and I went with a topic that started on my blog as a series – Rap Lyrics that have shaped my leadership style over time. On my blog, I think I counted down twenty-five in the series a number of years ago. I even once did a presentation for the local SHRM chapter in Jackson, MI on the concept and watched 40 mostly white HR ladies look at me in horror! 😉 Actually, they asked me to do it! Which shows how disruptive they are!

In the comments hit me with your best Rap Lyric that shaped your leadership style!

Let’s face it. If you hate the video, you probably don’t want to work with me, and I probably wouldn’t have much fun working with you! But, if you like the video – we can probably be fast friends! Let’s talk!

How Would a College Education be Different if you Were an Investor?!

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There’s a concept that is starting to gain some steam in college tuition funding called “Income Share Agreements”. The basis of these agreements is pretty much “I” (the investor) pays “you” (the student) to go to college and get an education. Once you graduate and get a job, I take some of your annual salary for an agreed-upon time.

From the Washington Post:

In an ISA, a student borrows nothing but rather has his or her education supported by an investor, in return for a contract to pay a specified percentage of income for a fixed number of years after graduation. Rates and time vary with the discipline of the degree achieved and the amount of tuition assistance the student obtained.

An ISA is dramatically more student-friendly than a loan. All the risk shifts from the student to the investing entity; if a career starts slowly, or not at all, the student’s obligation drops or goes to zero. Think of an ISA as equity instead of debt, or as working one’s way through college — after college.

I like this alternative to student loans because it puts much of the risk on the investor and away from the student. Also, if higher education institutions get involved with these kinds of investment funds, it truly puts accountability back on their organization to ensure they are producing graduates who are desired and prepared.

Purdue University has been doing a ton of testing with these types of agreements:

Although the very nature of ISAs protects the participant, early adopters such as Purdue have built in safeguards. A user-friendly computer simulator provides quick, transparent comparisons with various public and private loan options. No investee pays anything for the first six months after graduation or until annual income exceeds $20,000. For those graduates who get off to fast career starts, a ceiling of 250 percent of the dollars that purchased their education limits total repayment.

All of this gets you to think about what might be possible if we walked away from traditional student loan programs altogether!

What if…

  • The amount of your investment into a student returned more than you could make on the stock market?
  • Students had to present themselves, as high schoolers, to investment groups to get funding for university?
  • Investors and investing groups were only willing to fund students in careers where they could get a good return on investment? Say goodbye to history majors!
  • College students had to meet with their investors and explain why they got a “C” and missed class because they were drunk!?
  • Organizations and HR Departments started investing in potential future talent in a very real way!?

I love disruption to traditional things we have come to believe just can’t be changed. This isn’t perfect and there are a lot of questions, but it’s worth testing and trying. What we know is traditional student loan programs are not working at all! Something has to change.

I’m GenX and a Capitalist, so I love the accountability of both the investor having to make sound, prudent investment decisions around who they feel is most likely to give them a great return on investment, and the student’s accountability of understanding there’s a cost/benefit to your career choices and what it will cost to pay back those choices.

What do you think? Would you allow one of your kids to get into one of these arrangements, or would you have been willing to do this in college? I think I would have had very few people want to invest in me, but those who did would have been paid back in spades!

 

How much would 1 share of you be worth?

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What if instead of paying your university or trade school tuition, you paid them shares of your future self in the form of “Income Sharing“? That’s what some schools have been toying around with:

“The Lambda School teaches information technology skills online, and it charges zero tuition and offers stipends to select students. The deal is that students pay back 17 percent of their income from the first two years of work, if earnings exceed $50,000 a year, with a maximum payment of $30,000. Students who don’t find jobs at that income level don’t pay anything. Students may also opt to pay $20,000 in tuition upfront and keep their future income.

There are reportedly about 1,300 students enrolled, and the company has raised almost $50 million. The early job placement record is impressive; 86 percent of graduates have jobs within 180 days of finishing the program, at a median starting salary of $60,000. It is too early to judge results — how would these students have fared without Lambda or in a less strong job market? — but this kind of effort is an economist’s dream come true.”

The barrier for most people getting into the field they want is education and the cost of education. Are you willing to bet on yourself?
The entire concept is fascinating to me. It makes me think about how you value yourself. What are you really worth?

div data-position=”3″>Let’s say each of us was separated into 100 shares of theoretical stock. What would your stock be valued at certain times in your life? Would you be willing to sell a share or two or more at certain periods to help you pay for certain things at that time, or even use that money you got in return to purchase other shares of other people you believe will have higher value down the road?

The big question is what do you really get in owning stock in a certain individual? What if it was a portion of their earnings forever?
Each time this individual earns money and let’s say you own one share, you would get 1/100th of there earnings until they die or you sell their share to someone else, or they buy their share back. All of this helps you understand how to value yourself
I get asked almost weekly by folks who want to be consultants how much per hour should they charge? I don’t really have an answer because each of us has a different value and we all value the work we do differently. For a friend, my hourly rate might be $0, or some work I don’t really want to do that hourly rate might be $1,000 per hour.
I’m not sure what my stock value is currently, but I know it’s way higher than when I was in college believing I was going to start a career as a teacher. When I was twenty I would have sold shares of myself fairly cheaply and someone would have made out really well.
What do you think your current share price is? If you’re interested, I’m selling shares of myself for $1,000,000 each! DM for more information!

3 Steps to Getting Sh*t Done!

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There are times when I struggle to get things done.  I’m a really good starter of things. I love starting projects!  I can always see how I want it finished (a little shout out to Covey – Begin with the end in mind).  But like most things you start, eventually things get bogged down, and getting them over the finish line can be hard.

It’s probably why most projects fail, it gets tough, so we stop and move onto the beginning of something else because that’s fun and exciting.  I’ve learned this about myself over the years and I do two things to help myself. First, I surround myself with people who have a great resolve to getting things done, the type of folks who don’t sleep well at night because they know there was that one glass left in the sink, and they should really get up and put in away.  I love these folks, they aren’t me. I hire them every time I get the chance.  I even married one of those types, she makes me better!

Second, I force myself to not start something new, until I finish what I’ve already started.  This can be annoying, I’m sure, for those around me because sometimes projects have to go on hold while you wait for feedback, or other resources, etc.  This makes me antsy and I like to get things finished!

I was re-introduced recently to a quote from the novel Alice in Wonderland that I think really puts in perspective what it takes to get something done.  The quote is from the King of Hearts and it is quite simple:

“Begin at the beginning and go on till you come to the end: then stop.”

Your 3 Steps:

1. Begin

2. Go till the end

3. Stop

We make it much harder than that but it really isn’t.  I like simple stuff, it fits into my mind quite well.  It might be the best advice I’ve gotten in a really long time.  I don’t need pre-planning, or post-project assessments, or update meetings, or budget reviews, or a project charter, etc.

Naive?  Probably.  But, sometimes you just need to Begin, go to you come to the End: then Stop.

The Employee Walk of Shame

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I’ve lost jobs and I’ve called old employers to see if they would want to hire me back. I’ve usually gotten a response that sounded something like, “Oh, boy would we want you back but we just don’t have anything. Good Luck!”  Many of us in the talent game talk about our employee Alumni and how we should engage our Alumni but very few of us really take true advantage of leveraging this network.

I was reminded of this recently when a friend of mine took a new job.  You know the deal, shorter drive, more money, growing company and oh, boy, just where do I sign!?  The fact was, it was all they said, shorter drive, more money and they were growing, but they forgot to tell him was our operations are broken beyond repair, you will work 7 days a week and probably 12-14 hours per day because of the mess we have, but keep your head up it’s the only way you won’t drown here!

So, now what does he do?

He already had the going away party, bar night out with the work friends with the promises to do lunches and not get disconnected, packed up and unpack the office into the new office.  Let’s face it, big boy, you’re stuck!  Not so fast.  He did the single hardest thing an employee can do he called his old boss after 7 days and said one thing, “I made a mistake, can I come back?”

Luckily for him, his past boss was a forward-thinking leader and so this past Monday he did the 2nd hardest thing an employee can do he made the “Employee Walk of Shame“.

You can imagine the looks from people who didn’t know him well, “Hey, wait a minute, didn’t you leave?” Having to tell the same story over and over, feeling like he failed, like he wasn’t good enough to make it in the new position.

HR plays a huge part in this story because it was HR who can make this walk of shame a little less rough.  Let’s face it, it is different.  You just don’t leave and come back as nothing happened. Something did happen, there was a reason he left and that reason isn’t going away.  A transition back needs to be put into place even though he was gone seven days.  It’s not about just plugging back in, it is about re-engaging again and finding out what we all can do better so it doesn’t happen again.

It’s also about making sure you let those employees who you truly want back, that they are welcome to come back (assuming you have the job) and not just saying that to everyone.  There are employees who leave that you say a small prayer to G*d and you are thankful they left!  There are others where you wish there was a prayer you could say so they wouldn’t leave.

Make it easy for your employees to do the Walk of Shame, it helps the organization, but realize they are hurting, they are embarrassed, but they are also grateful!

Why Do We Have Chronic Low Performing Employees?

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Do you guys want to know a little secret?  You know how I like hanging out with smokers because they have all the cool inside information before anyone else?  Your chronic low performers have a similar skill.  It’s kind of like information.

Chronic low performers are really good at being low performers!  They’ve figured it out!  They’ve figured out how to do the bare minimum, without getting fired, and you still pay them for showing up and continuing to give you low performance.  If that isn’t a skill than I don’t know what skills are!

Let that marinate a little on your mind.

The only reason you have a chronic low performer, is they’ve figured out how to master low performance.

All of us have chronic low performers.  We’ve shot them a million times behind closed doors but never pulled the trigger when the door was open.  I can distinctly remember having conversations about a certain manager when I was at Applebees at 6 straight calibration meetings over 3 years and heard stories about him before I’d come into the organization.  He just was good/bad enough to keep hanging on.  One meeting we’d be short, so he’d make it one more session. Then next meeting we’d have some idiot do something really bad and “Mr. Chronic Low Performer” lives to suck another day!  The next meeting it would be some other lame reason.  Each time just squeaking by.

Think about all of the people you’ve ever let go. They usually fall into 3 – 4 groups:

1. Bad Performer/bad fit from the start (you shot them early)

2. Good Performer did something really stupid (you didn’t want to fire them but you had to)

3. Layoffs (decision above your pay grade)

4. Chronic Low Performers (hardly ever happens, they do anything really stupid, personally you don’t hate them)

We have Chronic Low Performers because they make it easy for us to keep them.  They say the right things when we tell them they need to pick it up or else. They’re ‘company’ people, all except for actually adding value part.  They give you no major reason to let them go, all except for not really doing that good of a job.  They always seem to have a semi-legitimate reason for not performing well.

I always wonder how much money chronic low performers have cost organizations vs. the good/great performers we had to let go because they pushed the envelop a little too far and we had to fire them.  My guess is the low performers win hands-down.  You could have a great salesperson who is constantly fudging his expense reports or a chronic low performer in the same role. Who would you take?

You don’t have to answer, you do every day.  You take the low performer.  “Well, what do you want us to keep the thief!”  No. But I’m wondering if great performance can be rehabbed?  I know Chronic Low Performance can’t.  My guess is good/great probably can.  Just a thought.

So, why do you have chronic low performers?  It’s not that you allow it. It’s because you just found out what they are really good at!