Category Archives: Business

No One is Going to Remember How Much Money You Saved!

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When I first started my career in HR on the corporate side of the fence I was always very concerned about my budget.  I spent a long time making sure I developed a good budget and I worked even harder to stay on or under budget.  Ultimately, it was the biggest waste of time I ever spent as an HR professional.

What I learned over the years was that budgets are important, but succeeding at your functional area is more important!

No one cared if I came in 7% under budget, but I had critical positions open for way too long, and projects were behind or failed as a result. No one cared that I came in under salary budget if our turnover increased.  No one cared that didn’t use all of my HR technology budget if they continued to be frustrated with processes that caused them more work.

I didn’t learn this until I spent so much money I thought I was going to be fired, and ended up getting praised!

I was working on a project to open up 40 pharmacies in a year. That meant we had to find a lot of pharmacists.  For those in that game, you know finding 80 or so Pharmacists isn’t something you just go post on CareerBuilder.  We had to market. We had to go to a ton of schools. We had to ‘buy’ some folks. Sign on bonuses. Relocation bonuses. Tuition guarantees. Whatever it took!

I was so far over my budget I took on this thought process, “well, I might as well fill them all, I’ll be fired next year at budget time!”  So, I did. I got a sourcing company to help me. I got my team on the road. We threw parties on campuses for new pharmacy grads. We killed it!

In my year end budget meeting, the VP of Pharmacy congratulated me and my team.  We were over our budget by almost a half a million dollars. The one factor I didn’t know, which I should have, was each pharmacy that we didn’t open cost the company about three million.  My overage, wasn’t peanuts!

There are times to save money in HR.  Anything you can give back at the end of the year will always be appreciated.  I learned, though, that being over for the right reasons is looked upon almost more strategic than the times I gave money back.

I faced more questions giving money back, then spending more than I had. Executives wanted to know why I didn’t spend all the money I had in my technology budget.  Were we going to fall behind? What my plans were in the future? Etc.  Not spending my money to get better, was looked at as a sign of I didn’t know what I was doing.

I learned that no one is going to remember how much I saved if I’m not making my function better. Staying status quo isn’t a good answer.  They gave me money for a reason, and it was up to me to use that money to make us better.  Giving it back just showed them I wasn’t strategic enough to find great ways to use those resources.

Working for Free – Contingent Search Model Changing

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A funny thing happens when the economy is good. Corporate Talent Acquisition pros believe that agency contingent recruiters should work their job openings like its the most important priority the recruiter has ever had.  There are a couple reasons for this:

1. This opening is the most important priority for the Corporate TA pro, so it should be yours.

2. When the economy was bad, you treated the Corporate TA pro like they were your number one priority.

Then the economy gets good, and the agency folks have choices and now as a Corporate TA pro you find out who your real agency recruiting friends are!  Those who will actually come through for you, when you call on them and tell them you have something urgent.

My Corporate TA friends are the ones who pay me.

Don’t take that wrong.  You see this is the game we all play.  You want me to work your opening, but you ‘really’ don’t want to pay me if you don’t have to.  I get it. You get it. It’s the world of contingency recruitment.  I spend most of my time just trying to truly determine who will pay me for the work I do.  Because most of the work I do is for free.

So, now that the economy is good, way too many Corporate TA pro have unreasonable expectations of their agency counterparts. If I’m working for free, mostly, I’m going to be more picky about who I work for free for.  If you have me work five openings, and you then fill all five on your own, I’m probably not working your ‘urgent’ number six. If you have me work three, and I fill one, I’m helping you out. It’s simple economics.

Something new is being added to the game. This happens when times are good for agency recruiters.  There are two types of recruiting on the agency side:

1. Contingent – see above. Basically, I work for free until I find you someone you want to hire, then you pay me.

2. Retained – You pay me my big fee up front, and I work until I find you the person you want to hire.

Traditionally, retained is really only used for executive search, but when talent is hard to come by, you’ll also see it used in the professional ranks.

Recently, I’ve been seeing a new hybrid model of search show up, called Retained Contingent.  Retained contingent is a mix of both models. It’s still a contingent search, but you’re paying me about 10-20% of the fee up front for me to prioritize your search to the top of the workload.

Let’s say you’re searching for an Engineering Manager for $100K, and signed a 25% fee agreement. The total fee upon placement is $25K. In the Retained Contingent model you would pay me $5K to start the search up front, then $20K upon placement guarantee. If I don’t find the person, after a contracted amount of time, the $5K is for my work, no other fee is owed.

This is a win-win for both the Corporate TA pro and the agency, but only if the Corporate TA pro is sure they want to pay for the search.  If that’s the case, I want the benefit of retained focus and prioritization, without the risk of paying the full fee up front and having the firm not come through with a successful hire.

I don’t want to take you cash and then fail. You’ll make sure everyone knows I failed.  But, I also have limited resources and want to focus those resources on the best clients. We both have skin in the game.  That creates a partnership. That creates success.

Just wait. You’ll see a lot more of this over the next five to ten years.  Corporate TA pros are getting smarter, and so are the agency pros.  In the end, both sides want value for their work.

3 Ways to Turn Down a Job Offer

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The NBA free agent signings took place at midnight EST last night.  The signing period lasts 9 days, where players can negotiate, but not sign, deals until last night at midnight.  One big free agent signing this year is DeAndre Jordan, who was with the LA Clippers last season, and had a verbal, handshake, agreement to join the Dallas Mavericks.

That was until DeAndre decided to change his mind and re-sign with the Clippers, but not tell the Mavericks he was going to do this!  Basically, doing what we see in HR all the time, accepting our offer, only to see the candidate turn around and accept the counteroffer.  The problem with DeAndre was that he never let Dallas know he was going to do this, so they weren’t able to go after another player to replace him!

Not only did he not tell Dallas, he actually tweeted out a picture from his house with a chair blocking the door, to give the implication that his Clipper teammates weren’t allowing anyone to come to his house until after midnight and contract was signed!  Way to keep it classy LA…

So, how should a candidate turn down an offer when they decide to go in another direction?  Here are three ways that are all better than was DeAndre did:

1. Pick up the phone! If you are adult enough to make the decision to accept another offer, be adult enough to pick up the freaking phone and let the other party know that is what your intent is.  You get bonus adult points if you also give them a reason or two of why the other offer was better for you to accept! Do this the moment you have made the decision to accept the other position. Timing is critical for this, as the other organization might have a backup candidate and they don’t want to miss out on this person.

2. Send an email.  Less favorable, and it’s definitely conflict avoidant, but at least you did something to let the organization know.  The plus factor on the email is you have time to craft your message, as some people are not good over the phone in real-time interactions.  Again, give the organization some sort of ‘real’ reason on why their offer wasn’t as good as the offer you accepted.  This will be appreciated, as companies need to know how to get better.  NEVER – give the “it’s me, not you” as a reason. That’s lame!

3. Text message.  I put this one in for the kids. They like texting, but the reality is, this looks unprofessional, and you’ll get know adult points for doing this.  The one way I can see texting being used to turn down an offer is if it is used in conjunction with another form of communication. A quick “just wanted to let you know I will not be accepting your offer. Sorry. I’ll call soon with an explanation”, will work, but make sure you call!

I’m not sure why anyone ever feels it’s okay to accept a job offer, then just decide to not do it, but never communicate back with the organization. This happens more than you think, but I’m always surprised by this mentality of who would think this is acceptable.

In my career I’ve probably had at least a half a dozen people accept jobs, sign an offer letter, then on start day, be a no-show. I find out later they decided to accept a counteroffer, but never communicated anything back to my organization.  This is across multiple industries, multiple companies. I would love to see an industry study of why people think this is an appropriate behavior!

The morale to the story? Don’t be a DeAndre!

T3- @Hirabl

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This week on T3 I take a look at the specialized staffing vendor software technology called Hirabl.  Hirabl is designed to help staffing companies catch revenue they missed because a client, or potential client, hired one of of the staffing vendors candidates, but never paid the fee. What!?!

Yep, it’s actually a fairly common occurrence in the staffing and talent acquisition game.  It can happen a number of ways. I don’t want my talent acquisition brother and sisters thinking I’m called them cheats.  99.9% of are completely above board, but .1% are sneaky!

Here’s how it all might go down:

An organization is contacted by a staffing company to help on an opening. A good staffing company will insist on a signed contract.  The get the signature and begin working.  The organization decides not to move forward with any of the staffing companies candidates. Both parties go on their way.  This happens a lot in the staffing world.

Fast forward six months down the road and the organization has the same opening.  They post the opening and a candidate comes into their ATS. The same candidate the staffing company presented six months prior.  By contract, that candidate is still ‘owned’ by the staffing firm. The organization hires the candidate, but never thinks about paying the staffing company. The staffing company has moved on and doesn’t even realize you hired their original candidate.  By contract the organization still owes the fee, but it’s rarely collected, because on one comes asking!

Hirabl has technology that goes out and through social profiles and your internal data, finds these circumstances.  You then get an alert, so you can go ‘remind’ the organization you presented the company to that they indeed owe you some money.  Depending on your volume, Hirabl, on average, is finding hundreds of thousands in lost fees.

You need a couple of things to make this successful: 1. Good, signed contracts; 2. Good data for them to search on. Most staffing companies, using a decent ATS, will have the data.  The contract question might be more difficult for some. In my organization we don’t do anything without signed contracts, so we would be good on that front as well.

I wanted to write about this for a couple of reasons. First, I know a lot of staffing folks who read my blog that can use this and get back some lost revenue. Second, I wanted those corporate talent acquisition folks to know that staffing vendors are getting more sophisticated, and some things that you might have gotten away with years ago, will soon be coming to an end.

Be careful signing a staffing contract. Usually, most staffing vendors are going to ‘own’ candidates they submit to you for at least twelve months.  That means if you hire one of those folks, even if that candidate came to you on their own, you contractually are liable for that fee. That’s why you should be signing a ton of contracts.  Find a few good firms. Work with them closely, and you won’t have any surprises.

You can better believe I’ll be trying Hirabl!  We do a ton of volume, and as much as I would like to think no client hired one of our folks, I know we’ll find some where it happened. Stay tuned!

T3 – Talent Tech Tuesday – is a weekly series here at The Project to educate and inform everyone who stops by on a daily/weekly basis on some great recruiting and sourcing technologies that are on the market.  None of the companies who I highlight are paying me for this promotion.  There are so many really cool things going on in the space and I wanted to educate myself and share what I find.  If you want to be on T3 – send me a note.

Hiring Is About To Get Really Difficult!

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One thing was abundantly clear from speakers and thought leaders at SHRM 2015, hiring is hard, and it’s about to get much harder!

That isn’t good news for any of us in HR and Talent Acquisition. There are two forces that are currently happening that are making hiring more difficult than it has been in over ten years:

  1. Solid economy and job growth.
  1. Baby Boomers leaving the workforce.

This isn’t earth shattering information, we all kind of new this was happening.  The issue is we are now all beginning to feel this in every part of the country and in almost every job category.  This means some things are going to happen, and the top HR and Talent Pros are already preparing for these:

  • Wage Growth: CareerBuilder CEO Matt Ferguson spoke at SHRM on Tuesday and had some great data showing that organizations see wage growth of around 5% in 2015, and similar in years to come. Are you budgeting 5% increases? I’m guessing not!
  • Recruitment Process Challenges: How many steps does it take to apply for a job in your organization?  If it’s more than two, you’ve got problems!  Can someone apply for a job online with your organization without having a resume? Why not?  Matt also showed data from CareerBuilder showing 40% of HR and Talent Pros have never applied for one of their own jobs to better understand the true experience!
  • Technology Challenges: Do you have a way to reengage candidates in your system on a regular basis?  A system that allows you to let great talent know, that you already have in your system, when you have an opening that fits them? It’s called CRM, and only about 20% of companies have technology that can do this important recruitment marketing function!
  • Job Design Challenges: Too many of us are working and designing jobs like we are living in a society that was pre-internet, pre-ultra connected. We still think we need employees sitting in front of us from 8-5pm, Monday thru Friday. If they aren’t sitting in front of us, they must not be working! Indeed shared that 80% of job searches on their site include this single word: “Remote”!  Are you adjusting those jobs that can be flexible?

Those organizations that believe they can recruit and get talent like they have been doing for the last couple of decades are going to fail.  It’s really that simple.  Talent attraction will be a powerful strategic differentiator for organizations over the next decade, like almost no other time in our history.

The good news?  At no other point in our history do have access to the information on how to be successful!  Twenty years ago, doing great talent acquisition was mostly trying stuff and getting lucky.  In today’s world you can learn easily how the best organizations are attracting talent at conferences, on websites, in blogs, webinars, etc.  There are so many sources of this information, that we now have no excuse to improve what we are doing.  We just have to do it!

 

Live from #SHRM15 – Secret Sauce Recipes!

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Yeah, I know it’s Sunday and I normally don’t post on a Sunday, but I’m at the annual SHRM National Conference in Las Vegas and it starts today. The opening keynote speaker is Coach K, the Duke University head basketball coach.  I’m not a big fan.  His team beats my team way too often! So, he’ll be painful to listen to as I remember each defeat.

The SHRM expo floor also opens today with a big reception.  The SHRM expo is hard to describe.  Part flee market. Part carnival. Part car show. All HR and Talent.  Everyone who ever wants to sell stuff to HR is here.  They hand out pens, stress balls, mints, hand sanitizer, t shirts, frisbees, candy, basically, anything to get you to stop and talk to them.

My favorite free stuff that vendors give out is information!  You see, all of these vendors have clients that actually pay these vendors money to use their products and services.  These vendors know what others are doing to be successful.  If you take a few minutes they’ll gladly share the secret sauce recipes of all kinds of organizations!

We all want secret sauce recipes!

It’s probably the greatest weakness of HR and Talent Acquisition, in general, from industry to industry, is we suck at getting competitive data on what other organizations are doing in their HR and Talent shops.  We don’t network with our competition. We think if we share what we are doing, we’re somehow sharing national secrets. So, we fumble around through life, trying to figure it all out on our own.

That is why I spend most of my time at SHRM meeting with vendors.  I treat them like normal people, and they in turn give me great insight to what is working and not working in the world of HR and Talent.  I get smarter. I learn what I can take back to my own shop.  I gain some understanding of what the best organizations are doing that is successful. That’s valuable!

I don’t really care what Coach K does to cheat his way to national titles and stealing recruits.  What I care about is being on the cutting edge of what the best companies are doing to gain an advantage with their employees and getting the best talent.

Check me out on Pericope, where I’ll be live streaming during the conference!

*image credit to Gaping Void.

Live From #SHRM15 – Everyone Wants Priority Status

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Next week I’ll be speaking at SHRM’s Annual National Conference in Las Vegas with my good friend Kris Dunn.  Come check us out!  Our session is titled: We’re Bringing Techy Back!  It’s on Monday, June 29th at 2pm in rooms N228-N230.

In this session we’ll discuss everything you need to know, as an HR and Talent pro, about selecting your next HR technology, what HR tech companies are saying, and what it really means. We’ll also give you some great tips on negotiating the price! Our hope is to take the fear and confusion of HR Tech and make it simple and clear.  We’ll also have some fun and probably be a bit snarky about the HR Tech industry!

Also, check me out on Periscope (TimSackett) as I’ll be attempting to do some live video feeds from the Expo floor and maybe, just maybe, live from our session at SHRM.  It’s super easy, just download the app to your phone and you can watch whatever it is I’m videoing, live, in real-time. You can also ask questions and make comments.

As I get ready to take off to Vegas I started thinking about checking in to my flight and hoping I’ll get a good status so I can find some space in the overheads and not have to wait at baggage claim.  I hate the concept of priority status, because I hate the way it ‘classes’ individuals.  I get it. Delta wants to take care of those passengers who are most loyal. I actually like that part.  After that, it all becomes a little hairy!

First comes the needs of those who need extra time and help boarding. Usually, elderly, injured and families with babies and strollers.  I’m fine with this, but the family thing has gotten out of control. I mean, look, your kid can walk by themselves, you don’t need extra time! You’re just gaming the system.  If I was smart I would befriend a really old person and offer to carry their bag!

First Class is next. Okay, they pay the most, I can buy into that.  I’m a capitalist. I can fit my brain around that.

Next, comes those skymile frequent flyer types.  Again, I’m all for loyalty programs, and would argue these folks should probably get on before first class, but they are both getting on early, so all have no real issues.

This is where all hell breaks lose.  Seating Status 1, or 2, or 3, etc.

There doesn’t seem to be any rhyme or reason behind the rest of us get on the plane!  They claim that ‘zone’ seating is done back to front, but if you’ve flown anytime recently you know that isn’t true.  You can buy into zone 1 if you want to pay a little extra to jump on early, but not as early as about 50% of the plane listed in the above classes.

Basically, Delta has created this entire system where people just all push towards the gate and wait for their zone, but try and get in early on their zone. It’s chaos!  And their is no reason for it.

Can you imagine if you did this with your employees or candidates?  It’s dysfunctional at best, and creates ‘fans’ who end up hating you at worst.

I fly about 12-15 times per year, not anywhere close to the real frequent travelers I know.  But each time I question the boarding process and what a bad process it is, on all airlines, not just Delta.

What’s a better way?  I like the pure capitalist play of seating by ticket price! Those who paid the most, get on first, all the way down to those who paid the least or got ‘free’ travel with miles. I’m even willing to have this take longer. It might not be ‘better’, but at least I can justify why I’m getting on last!

See you in Vegas.  Make sure you hit me up on Twitter (@TimSackett). I would love to meet you in real life while I’m at SHRM, unless you’re creepy, then please hit up Kris Dunn (@Kris_Dunn)!

The #1 Way to Communicate Success of a HR Change!

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Adobe recently changed their annual performance review process of the traditional once-per-year review to a more modern design of having frequent feedback throughout the year:

So, based in part on ideas crowdsourced from employees, Morris and her team scrapped annual evaluations and replaced them with a system called Check In. At the start of each fiscal year, employees and managers set specific goals. Then, at least every eight weeks but usually much more often, people “check in” with their bosses for a real-time discussion of how things are going. At an annual “rewards check-in,” managers give out raises and bonuses according to how well each employee has met or exceeded his or her targets. “Managers are empowered to make those decisions,” says Morris. “There is no ‘matrix.’ HR isn’t involved.”

A big change for any organization, for sure, but that’s not what this post is really about.  You see, Donna Morris, Adobe’s Sr. Global VP of People and Places could have easily just said it’s been a great success and shared stories from employees and hiring managers about how much they loved it. She could have shared retention metrics and employee engagement scores to show its success, but she didn’t. What shared did was absolutely brilliant! She shared this:

Getting feedback in real time, so everyone stays on track and is pulling in the same direction, has helped make Adobe’s 13,000 employees far more productive, Morris says. Adobe’s stock price has increased from about $30 to over $80 since Check In began.

Drops mic, walks off stage.

You want to really communicate the success of HR change, tie it to direct financial outcomes!  Yes, it’s a major leap to say “Check In” created $50 per share of shareholder value.  Let me say that again, MAJOR LEAP!  In fact, I don’t even think you could scientifically correlate this one HR change to the raise in shareholder value, but she did!  What she did would be similar to saying global temperatures have risen 3 degrees on average since they started making Krispy Kreme donuts, so Krispy Kreme is responsible for global warming!

You see, success of a major program has little to do with fact, and ton to do with perception.  Here is a senior HR executive who gets it.   She wants to do other cool and innovative stuff at Adobe, and now she has her big-win to go back to when someone pushes back that it won’t work, or it’s not needed.   In the minds of Adobe employees, this program has increased shareholder value, and we need to listen to her other ideas!

Take note HR Pros!  If you get this opportunity, you take it 100% of the time! Because you won’t get it often.  How do you communicate your success of a HR program?  Wait until you have favorable financial data in your organization, then connect the dots for people!

Do Demotions Work?

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Quietly, Brian Williams returned to NBC last week. Not in his usual spot of nightly news anchor, but in a demoted spot, for less pay:

The embattled former NBC Nightly News anchor has been demoted and will receive reportedly less money in his new role, The New York Times reported Thursday.

Williams is being replaced by Lester Holt, who took over for him after he was handed down an unpaid six-month suspension for making factually incorrect comments and “misremembering” details spoken about on-air.

The newspaper reported that Williams will receive “substantially” less money when he returns to the network as a breaking news and special reports anchor for MSNBC, a division of NBC. He had been making at least $10 million a year for the last five years.

It begs the question, do demotions work?

They certainly aren’t popular. Both, employers and employees, dislike demotions.  Employers feel like if they demote an employee they are just giving them notice to go find another job.  Employees feel like a failure and that the organization is probably just trying to push them out the door. In my experience demotions rarely work.

What kind of demotions work?

There are times when you promote a good worker into a new role, a promotion, and both you and the employee think it will be great, but then it ends up not being great. The employee can’t handle the new role, you did a bad job preparing them, there were other organizational issues at play, whatever the reason, it’s not working. This happens more than you realize, but we usually just end up firing the employee for performance, or they see the writing on the wall and take off before you get a chance to shoot them yourself.

I always find it ironic when I hear about this type of turnover. I’ll ask, “was this person a good, solid employee before they got promoted?”  The answer is always yes.  They wouldn’t have gotten promoted if they weren’t. So, then, why did this person have to be a turnover statistic? Why couldn’t we figure out how to get them back to a position where they were productive and successful again?

Modern organizational theory doesn’t allow for this.  We don’t believe that a person will ever want to go backwards in their career. Once they have been promoted, they will not want to go back into a position they had prior, and they definitely don’t want a pay cut!  We assume this to be true. Also, it might be true in many cases. So, we take a ‘good’ employee and terminate them or let them just go away on their own.

I think the only way you make a demotion work is if you set it up within your organizational culture that this ‘demotion’, going back into a very important role in the company, is something that happens here.  We want to challenge people, and sometimes those challenges won’t end well.  That’s okay, we still love you, and respect you, and we want to get you back on a path of success.

This conversation has to happen, not after failure, but before the person is ever promoted.  That moving along the career path here, at our organization, isn’t just up, it’s down, it’s sideways, etc.  We are going to constantly want to get you into a ‘role’ of success.  Yes, failure happens, but we will want to get you back to success as fast as possible.

The reality is, people don’t stay around if they’re failing.

Brian Williams is damaged goods, so he accepted the demotion.  He’s talented. He’ll get back on the horse, show his value, and then he’ll go someplace else.  NBC is giving him an opportunity, but this kind of demotion doesn’t usually end well, for the employer.

The Biggest Lie HR Tells Candidates

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No one ever wants to admit this but it can be really intimidating working with someone who is way smarter and more talented than you.  This is the basis for the biggest lie HR tells candidates.

You are Overqualified!

Truth be told, no one is ever ‘overqualified’ for a position.  You might have more qualifications than the organization needs for the position you are interviewing for, but that really isn’t the issue.  The issue is the person interviewing is scared that you are better than they are.

Back in the day, HR pros and hiring managers were trained to give the excuse to overqualified people that we won’t hire you because you’re overqualified and we are scared that you won’t stay in this position, and you won’t be satisfied.  Yeah, right! It’s not that we don’t want you! You won’t want us, because you’re so talented that you’ll get bored with this position and leave.

It’s such a lie, and yet, for decades we just accepted it as truth.

Being overqualified isn’t a negative, it’s a blessing! Companies should be bending over backwards to get overqualified hires.  We no longer live in a culture where people are going to stay in the job for 40 years. If you can get a good 3 to 4 years out of hire, you’re doing great.

Take the best most qualified person you can get for every position you have in your organization and let them do great things. Being worried the person will won’t be ‘engaged’ long term is silly.  That’s not for you to worry. Hire great talent and get out of their way.

The bigger reality we face in most organizations is we aren’t hiring ‘overqualified’ people because your hiring managers are intimidated to hire someone who is better, or who could become better than they are.  This is the mentality we must change in our organizations.  You can’t get better if you don’t hire better.  Hiring under the level of talent you have now is a slow slide to becoming an organization no one wants to work for.