Category Archives: Culture

The First Gay Person I Ever Met. #Pride

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June was Pride month and as it wrapped up on Sunday I was loving all the pictures on my social feeds from New York and really all over the world. It really made me think about why I’m an Ally for this community. Where did it all start?

I was in seventh grade when my middle school basketball coach said he had an opportunity for us to jump higher. I’m short and white, so I was totally interested. Turned out, the opportunity was to play volleyball for a boy’s team, the only boy’s team in Michigan. The coach was local to my school district and looking for male athletes.

This coach was also a gay male.

Of course, as a 13-year old boy, I had no idea that he was gay. I went out for the team. Made it, and it really set me off on a path I could never believe. I traveled nationally with this team. I made the best friends from all over the country. I had a mentor in this coach who supported me as a coach, a dad, a friend.

It became apparent very soon to me that playing volleyball on the only all-boys team in Michigan had some advantages and disadvantages. I got used to being called “gay” by ignorant people when we tried to do some fundraising. “Hi, I’m Tim, and we’re fundraising to attend the Junior Olympics to compete in boy’s volleyball! We would love your support!” Boy’s volleyball? What are you gay or something?

It was a strange experience to be called “gay” because I was playing a game that I loved, and that people weren’t used to seeing boys play. To have someone assume because I liked doing this one thing, you could determine my sexuality. I’m like, no I really, really like girls, but still, so you don’t want to support us because you think only ‘girls’ play volleyball and because I’m a boy playing volleyball I must be gay?

I also got used to attending weekend tournaments where our team of 8 boys would be playing in gyms with hundreds of girls! It was a huge advantage for a short, red-headed, goofy teen boy who liked girls! I needed those odds to be in my favor!  

Eventually, my dad had a conversation with me. “You know your coach is gay, right?” By then I got it, but it didn’t matter to me. He was my coach. He just happened to be a gay male. Thankfully, for me, my dad was pretty accepting and could see I loved the experiences I was having.

This coach had a life long positive impact on my life. He was gay. I only say that because I think I was lucky enough to know this and have such a great experience that I grew up believing gay folks are great folks, and some folks are just assholes that judge you based on stupid stuff that has no correlation to anything.

I did grow up understanding that my gay friends face major prejudices and biases walking into life events that I don’t, even though they shouldn’t. We’ve come a long way since I was in seventh grade, but we still have such a long way to go.

I grew up an Ally without even knowing I was an Ally. I looked at those friends and mentors who were gay, not as gay friends and mentors, but as every other friend and mentor, I have in my life. My life is now filled with friends and family from the LGBTQ community and I’m so proud of the bravery these folks show every day. I hope that #Pride had a positive impact on you in June!

The Worst HR Advice I’ve Ever Given to an Employee

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A few days ago this thought came to me: “What is the worst advice I’ve ever given anyone?’  Usually, in a case like this the first thing you think of is usually correct!  In my case, I came up with a number of things right away, none of which really seemed like the worst advice, and more of me making fun of what other people think is ‘good’ advice.

Here’s a sample:

1. Don’t be afraid to fail.

2. Follow your passion!

3. Don’t play office politics.

4. Yeah, go get that Masters degree in HR!

5. Just keep it to yourself, I’m sure no one will find out.

See what I’m talking about?!  All of the above statements have been shared as good advice, but I tend to think of them as terrible advice.

Then it came to me. The worst advice I have ever given to an employee in my HR career.

Here it is:

“Just wait and see what happens…”

This advice was given to an employee who really wanted a different position in the company, outside of their department.  It was going to come open because we all knew the person in the position was going to get promoted. I was early in my career, and I believed our ‘process’ would help this person out.  Just wait, I thought, and once this person takes their new position, you can post for their old position.  How naive I was.

The person who got promoted had a ‘plan’.  That plan had nothing to do with my process or the employee who was wanting that position.  The plan did have the old employee putting one of his buddies into his old position, and seemingly everyone knew of this plan except me.  This was the day I learned that everyone has a plan, and in HR it’s really my job to know what those plans are, and manage expectations early.

The person I told to wait, now didn’t trust me, and truly believed I knew what was going to happen.  The reality was, I should have known, so I really couldn’t blame the person for being upset with me.  My own bad advice probably taught me more about HR than almost anything else I have ever learned in the profession.  As soon as you hear of possible moves, you better get involved.  Waiting to see what happens usually ends up with stuff happening, without you knowing!

5 Usable Excuses Not to Attend a Co-worker’s Wedding!

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I had one of my Recruiters ask for some advice this week. It wasn’t work advice, it was a little more personal.  She had told a person she would attend the wedding of a family member with them but was having second thoughts. It was one of those Holy Crap moments! I don’t really like this person that much, and I don’t want to go to a family wedding with him and send the wrong message.

So, what was my advice?  It started out pretty straight. Tell them the truth!  “Look, dude, I’m just not that into you, and the last place on earth I want to be on Saturday evening is sitting at a table with your parents and Aunt Betty with them thinking “ours” is next!”

As you can imagine, that wasn’t going to do.  Not that she didn’t want to tell him the truth, but she also didn’t want to hurt him. She was looking for a softer way to cut him loose.  You know! A how-do-I-get-him-to-not-want-me-to-go excuse – like he can’t stand my breath or I have hammer toes, or something!?

Now, she was truly diving into my end of the pool!  You want a “Fake Reason” why you can’t go!  YES! I’m in HR. I’m in Recruiting. I’m the king of fake excuses for why people don’t get the job!  I’m on it!

So, here’s the first 3 I gave her:

  1. You have VD! (Ok, I know this is strong right out of the gate – but let’s face the facts – most dudes will run from this!  Funny Fact: She is a millennial and had no idea what “VD” was! I’m old! Using WWII references like it was cool 2015 slang!)
  2. Your Dog has Cancer! (Sketchy I know, but girls and their pets…this one might work.  Funny Fact: Her dog actually did have Eye Cancer but was cured, so not technically lying…)
  3. You have to Babysit for a Co-worker! (Now this one is fraught with problems, guys have gotten this one before and they might pull a. “Oh, I’ll come and help!” then you’re stuck and have to find some brat to babysit for the night. Funny Fact: She was like “Oh, hell No! I have a Real Job, why would I babysit!”)

All of this brainstorming got me thinking of how I’ve personally gotten out of going to Co-workers Weddings that I didn’t want to go to.  Here is my Top 5 Excuses to  Miss a Co-worker’s Wedding:

  1. I’ll be on Vacation! This is good because you usually find out about the wedding of a co-worker way ahead of time. All you have to do is actually plan for this and take your vacation during the weekend of the wedding. Far, far away from the actual wedding.
  2. My kid has a sports tournament out of town that weekend.  A little sketchy, but it is really hard for them to verify you really didn’t have a sports tournament, and let’s face it, I’m going to my kid’s sports game (the 127th of this year) vs. your once in a lifetime moment.
  3. I came down with the “Flu”!This one nobody believes, but it’s the go-to excuse because everyone uses it and it has been internationally certified as an acceptable lie to get out of anything.
  4. My Mom/Dad/Grandma/Grandpa/Great Aunt Betty/etc. fell and are at the hospital. I needed to go see them. They needed my help. It was serious.  Let’s face old people fall. In fact, it might be the only thing they have left to do. You hear about old people falling every day. This is a very usable excuse in a pinch because it’s somewhat believable and old people don’t remember later on when someone asks “How are you doing after your fall?”, and they’ll go “better” and then complain about their aches and pains.
  5. I’ve got another Wedding that same day! Again, believable, but what you’re really saying to the person is “I’ve ranked you lower than someone else in my life. I hope you understand, but I didn’t buy you a place setting off your registry!”

What is your top excuse for not going to a co-worker’s wedding?

The Future of Work, is More Work!

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I’m sure you’ve read an article or listened to a podcast in recent weeks that had something to do with “the future of work”. It’s a hot topic to talk about, primarily because it’s all just a big fat guess and the best content is content where I just get to tell what I think will happen, but really have no idea for sure.

When I take a look at the HR technology landscape and see the tech that is hitting the market around work and performance, I think the future of work is actually just more work!

When I say ‘more’ work I really mean “More” work! Much of the technology that is being created and launched around HR Technology falls into a few buckets:

  1. How can we make workers more efficient at what they are currently doing?
  2. How can we monitor workers on what they are doing (tracking)?
  3. How can we leverage A.I. to do certain tasks workers are doing right now?

Don’t get me wrong, the technology doesn’t scare me in the least, I think it’s amazing, but the reality is much of it is designed to help us humans reach our full potential. If my couple of decades in HR has taught me anything it’s that very few of us humans want to reach our full potential!

Reaching your full potential means you are working really hard!

I have a great story about working in a union job the summer I first got out of high school. My Dad got me the job working in a grocery warehouse picking orders to be delivered to supermarkets. The warehouse just implemented a new software system that tracked the productivity of each worker.

Basically, I would be given an order and the system had estimated how long that order should take for me to complete. If the order was complex I got more time, it is was simply pulling a full pallet of one type of item, I might only get ten minutes or so to complete, some orders were estimated to take 75+ minutes to complete.

The union had negotiated that I only had to work 77% of the time. Yes, you read that correctly! If you added up all of my order minutes, in theory, to keep my job, I had to be 77% efficient. So, in an eight-hour shift of 480 minutes, once I reached my 369.6 minutes of work, I could actually just stop. In fact, I was encouraged very strongly by my union brothers to stop at the exact point!

Now the “new” computer system didn’t account for extra effort. So, if I had an order that was supposed to take 60 minutes, but I worked really hard and completed it in 45 minutes, I just earned myself an extra 15 minutes. By the end of the summer, I was efficient enough in getting orders completed that I spent about three hours a shift playing cards with my union brothers in the back of the warehouse until my shift was done!

The new HR Technology that is in play right now, based on AI and machine learning, would have made these corrections individually within a few shifts, knowing I could do that work more efficiently than another person and soon my orders would have been adjusted. The technology would have ensured that my ‘extra’ effort turned into my normal effort.

We already know that my warehouse work will be replaced by robots, so my example is already dated. But what about that office job? Will a robot replace you? No, not right away, we are a ways off from that, but that same AI/Machine learning technology will track and measure everything you do and soon you will feel as busy as ever, because ‘down time’ is unproductive time and the tech can compute that!

The future of work is more work.

 

8 Types of Recognition that Suck!

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I run a small business.  When I need to know something, I usually reach out to my employees and find out what they think.  It’s not some big fancy ‘research’ survey with thousands of responses, but it’s real.

Recently, I wanted to know what people might want in terms of a recognition award.  Ironically, what I found goes against some big fancy research done by recognition companies who are in the business of selling the crap on the list below, crazy how that works in the research game! Anywho, what I found wasn’t surprising to me.

Here’s the list of the Top 8 things my employees don’t want when it comes to Recognition Awards:

1. Anniversary Pins! If you give me one of these I will stick it back in your eye! “Hey, Tim, Thanks for 10 years! Buddy, here’s a pin!” A What!?!? I’ve given you ten great years and you’re giving me a pin. Is this 1955?

2. A Plaque. Or any other kind of trophy thing. If I wanted a trophy to show me that I’m a salesperson of the year, you hired the wrong person. JayZ said it best “we can talk, but money talks, so talk more bucks”.

3. Corporate logo wear. Giving out corporate logo wear as a form of recognition screams you have executives that haven’t actually spoken to an employee in the last twenty years!

4. A watch. Wait, if it’s a Rolex, I’ll take a watch. If it’s a Timex you better ‘watch’ out, I’m throwing it at someone! Nothing says we don’t really care about you like a $50 watch with it engraved on the back ‘You Matter! 2019!’

5. Luggage. The ‘experts’ would like you to believe that your employees would really ‘appreciate’ luggage because it’s an item they don’t normally like to spend their money on. The reason why people don’t like to spend their money on luggage is that it gets destroyed after one trip through O’Hare! That’s just what you want to see coming around the luggage carousel – “Hey, look, honey, it’s your employee of the year award all ripped up and stained”. Sign and symbols.

6. Fruit Baskets. First, most people don’t want to be healthy or we wouldn’t have the obesity problem we have in our society. Second, people like chocolate, candy, salty snacks, and diet soda. If you want to send food, send food they’ll actually eat!

7. A Parking Spot with Their Name On It. This goes bad two ways: 1. I drive a $100K Mercedes and you don’t, now you know I drive a better car than you and it’s awkward; 2. I drive a beater and I’m embarrassed to let everyone know I make so little I can even afford a 2014 Chevy Cobalt.

8. A Hug! Wait! I totally want a hug! Just not a creepy hug. You know what a creepy hug feels like when you’re about 13 seconds into it and the other person won’t let go! But nothing says “we recognize you” in the totally wrong way, like inappropriate hugs at work!

What do employees want?

Well, that’s an entire another post, but my 20 years of HR ‘research’/experience shows people want for their peers and leaders to appreciate their efforts. Nothing says ‘we truly care about you’ like having one of your peers tell you in some sort of way. When teams can do that, they become special! It might be a quick handwritten note, a face to face meeting in the hall, etc. It really doesn’t matter the avenue of how it comes, it just matters that you have the culture that it does come and it’s encouraged to keep coming.

Ford Layoffs – “Hey, stay a few days and say your goodbyes!”

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A big announcement yesterday over at Ford where 7,000 or so white-collar workers will be getting laid off. For generations of automotive families, this is really anything new. You grow up knowing about once every ten years, the big autos will do some ‘right-sizing’ or reorganizations. The reality is, and other industries are much different, auto industries hire in good times like your drunk Uncle Lou buys drinks at the bar after he cashes his income tax return check!

In good times, there is nothing better than working in the automotive industry. Everyone gets hired for good wages, bonuses are good, and they throw money around like it’s monopoly money. In bad times, they ‘right-size’ and it’s not targeted, it’s pretty much we need to cut 10,000 people, make it happen!

Ford CEO Jim Hacket said this layoff is different, it’s not, but to prove the point he also said this:

He acknowledged saying goodbye to colleagues is “difficult and emotional.”

“We have moved away from past practices in some regions where team members who were separated had to leave immediately with their belongings, instead giving people the choice to stay for a few days to wrap up and say goodbye,” he wrote.

Wow, really!?! Thanks, Jim!

Honestly, though, it is a bit more humane, right? Basically what you say when you walk someone out immediately during a layoff is this:

  • Hey, you no longer have a job but thank you for all those years of your life and discretionary effort you gave!
  • Also, we don’t trust you, so get the hell out, NOW!
  • Also, if you know of any younger workers who can do what you do, but for 30% less, please refer them to us!

Now, I am not saying Ford is laying off older workers and keeping younger workers. That would be slanderous, and I would never say such a thing! You can look at the data for yourself! It is a bit ironic though how white-collar layoffs tend to impact higher paid, more experienced workers. Turns out experience only matters to a certain salary point, then we are mostly the same in terms of productivity and knowledge.

No, Ford is in a very competitive industry and very fast-changing industry, and while all these ‘more experienced’ workers made us a lot of money, we now need to hire a different set of skills for our next generation of products. We no longer need all these mechanical engineers (true) and we need many more electrical and computer engineering skill sets (also true). Also, we probably need less more experienced finance, human resources, marketing, and operations folks as well, for these new more technical products we are creating.

So, back to the actual layoffs. Do you agree with Hackett (no relation, since my name, is “Sackett” with an “S”, and not an “H” but I see the confusion if you’re dumb) on his layoff approach of treating the Ford employees a bit differently and letting them close up shop and not walk them out immediately?

My take:

This should be an individual management decision. Your manager knows if you’re a terrorists or not. If she believes you can act like an adult and not sabotage anything on your way out, she should be able to make that call. If she believes you’re a problem, she should also be able to make that call on walking you out immediately.

I don’t believe this should be an all or nothing approach. I’ve seen people who have done some very bad things when given the chance to ‘pack up shop” on their way out. When you take the livelihood way from a person, you really don’t know how they’ll react. Some will become desperate and take anything they can get, staplers, information, etc.

Most, the vast majority, will be sad and grieve but also be able to handle this news in a respectful manner, knowing they’ll probably need that manager reference to land their next spot.

Layoffs suck, even when done for the best reasons to save the jobs of thousands of others. They just suck. I feel awful for those Ford employees having to go through this, just as I did for the GM employees who had to go through this at the end of last year. Organizations are living, breathing things, and as such, tend to make the same mistakes as well do in good times and bad.

 

College Athletes: You better have some experience!

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My oldest son is so close to being off the payroll and graduating college I can almost taste it! Because he transferred schools after his first two years he has a couple of classes to make up, but he has a great internship this summer, so he’s going back to school in the fall to finish up his senior year.

He plays college baseball, so a bunch of his senior teammates in the same grad class as he did graduate this past weekend. I got to speak with a bunch of these parents who are now excited for their kids to find jobs. You know we all love to hire college athletes, right!?! Right?

Here’s the thing. College athletes work their butts off and put in more hours than you can ever imagine between their sport and their classes. The work ethic. The competitiveness. Etc. Is why so many employers search out college athletes to hire.

But, with all of that comes one big problem. Most college athletes use the summer to get themselves ready for the next season. Becoming a starter takes place because of the extra work you put in on the offseason. So, we find a ton of college athletes don’t actually have much on their resume upon graduation, except for the fact they played a college sport, which now that they are in the real work world has very little value for most employers.

I get it, we are sports obsessed in America. We think little Johnny and little Suzy are the next Olympians and we spend enormous amounts of time and money chasing these dreams. I’ve personally spent more time and money than probably 99% of parents out there!

If I take off my Dad hat and put on my employer hat, this isn’t all it’s cracked up to be.

Great Enterprise Rent-A-Car found success hiring college athletes to work as Manager in Training. By the way, that job sucks! But, if you can make it through the first couple of years, you can make a decent career out of it. But do you think anyone is going to college believing that they want to be a Manager in Training for a rental car company?

I look at the resumes of so many college athletes, as compared to non-college athletes and there is one glaring difference, and that difference isn’t one was an athlete and one wasn’t. It’s that the non-athlete, many times, has 3-4 internships with real companies, doing real jobs, getting real experience. That has real value to employers.

I Love that my son got the experiences he did in college athletics, but he was also smart enough to say I’m willing to give up training all summer, to get internship experience because, in the end, I’m not getting drafted. He’s in the minority. Most either work jobs that have nothing to do with getting a career, or don’t work at all, and then upon graduation are surprised to find out they aren’t as sought out as they were lead to believe.

So, if your kid is playing a college sport here’s my advice:

  1. Unless they are high-level D1 and have a legitimate shot at going pro and making real money, don’t let a college coach make your kid feel like they have to use their entire offseason to keep playing their sport.
  2. Get a real internship, at least one, before graduation that is in line with your degree.
  3. If you bought into the hype and the pressure and your kid now has no experience in the real world, it’s never too late to go and do an internship, even for free, to get real experience. Even after graduation.

Here’s the reality. When a hiring manager has an opening, especially for entry-level grads, they will see resumes with candidates who have multiple internships with big brands, and those candidates come across a very sexy! They will also see resumes of candidates who were athletes in college, and they will be intrigued. Almost always, the candidate with real-world experience will kick the ass of an athlete without experience in an interview.

Have fun. Play sports. Also, get some experience!

The First Question Every Leader Needs to Ask Themselves!

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I’ve been blogging now for ten years. Writing every day for eight years. If you go around writing and telling people you know something about something, guess what? They’re going to ask you to tell them about something, specifically as it relates to their circumstance.

So, I get asked my advice quite a bit about talent and HR issues people are facing.

There is a bucket of questions I get asked that fall into the same type of category.  These questions all have to do with how do we ‘fix’ something that isn’t working well in their HR and/or Talent shops.  How do we get more applicants? How do we get managers to develop their people? How do we fix our crazy CEO? Etc.

I used to go right into how I would solve that problem if I was in their shoes.  Five-minute solutions! I don’t know anything about you or your situation, but let me drop five minutes of genius on you for asking! It’s consulting at its worst! But it’s fun and engaging for someone who came to see me talk about hugging for an hour.

I’ve begun to change my approach, though, because I knew as they knew, they weren’t going back to their shops and doing what I said.  The problem with my five minutes of genius was it was ‘my’ five minutes, not theirs.  It was something I could do, but probably not something they could do or would even want to do based on their special circumstances.

Now, I ask this one question: Do you really want to get better?

Right away people will quickly say, “Yes!”  Then, there is a pause and explanation, and sometimes from this, we get to a place where they aren’t really sure they really want to get better.  That’s powerful. We all believe that ‘getting better’ is the only answer, but it’s not.  Sometimes, the ROI isn’t enough to want to get better. Staying the same is actually alright.

We believe we have to fix something and we focus on it, when in reality if it stays the same we’ll be just fine.  We’ll go on living and doing great HR work.  It just seemed like the next thing to fix, but maybe it actually is fine for now, and let’s focus on something else.

Many times HR and Talent leaders will find that those around them really don’t want to get better, thus they were about to launch into a failing proposition, and a rather huge frustrating experience. Better to probably wait, until everyone really wants to get better and move in that same direction.

So, before you go out to fix the world, your world, ask yourself one very important question: Do you, they, we, really want to get better?  I hope you can get a ‘yes’ answer! But if not, the world will still go on, and so will you, and you’ll be just fine!

Career Confessions of Gen Z: Three Golden Culture Rules During Organisational Growth

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During periods of growth in your organisation, maintaining your corporate culture and values can be one of the most challenging, yet rewarding, obstacles you could hurdle.

Watching a business take off in front you can be an awe-inspiring. As companies grow, lots of things start happening. If you’re building or reinforcing a water-tight corporate culture, it can be hard to know where you should be focusing your energy and time.

If you can do the following three things you’ll be setting yourself up for the next level.

UNDERSTAND YOU’RE IN IT FOR THE LONG-HAUL

This first rule is quite simple: acknowledge this is a long-term play. During times of growth it may be difficult to scale your investment into corporate culture. The ultimate corporate financial performance that comes from company values and culture done right can be a tempting revenue stream to dip into and misallocate elsewhere.

You have to stay disciplined (especially in the early days) and understand that your foundational culture and values are what got you to where you are. With the right scaling of investment with growth, it’s what will continue to take you to the next level.

GRIT THROUGH GROWING PAINS

The second rule of maintaining company culture during periods of growth is being at peace with the unavoidable changes that take place. If you’re anything like me, and you’re proud of your company culture, you’ll be trying your damned hardest to maintain it.

You’ll want to preserve those same values and feelings that came with being smaller. Your natural instinct will for sure be to impart your passion for the culture into every employee on the books.

However, if you can’t accept that not everyone is going to love it as much as you do, day in and day out, you’ll be fighting an uphill battle. Work with, not against, the idea that your employees will never love it as much as you do. Take your satisfaction from those who love it 80% or 60% or even just a fraction as much as you do and you’ll be winning.

DON’T GO AT IT ALONE

If you’re at the helm, don’t try to maintain your corporate culture by yourself. There will be times when it’s better to let your team to step up. Identify a small number of influential leaders who are most aligned and invested in the cultural vision.

By allowing these ambassadors to build the culture and also engage with their peers autonomously, changing faces aren’t left behind and instead become catalysts for positive evolution.

There’s so many different routes your organisation can take, but if you work with these three golden rules you can make great things happen.

Josh Milton-Edwards is a fledgling HR professional mad about all things culture, engagement and wellbeing. I work for an award winning best-practice culture department based in the UK. Soaking up every last bit of the experience before completing my HRM degree in 2019/20. Aiming high and can’t wait to see what more opportunities arise for the taking!

Should You Put a Rank and File Employee on Your Board?

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Most boards of companies are made up of current company executives and/or executives from other companies are former executives from other companies. Almost never will you find a “regular Joe” on the board of directors.

Last week, a worker’s rights organization, United for Respect, presented to Congress and then to Walmart’s board the idea of adding hourly Walmart workers to its board, with full voting privileges. From the New Yorker:

“The practice of constantly cutting costs and squeezing workers often stems from the short-term-profit-oriented mind-set that has come to dominate corporate America over recent decades, in which moves to boost a company’s stock price are given priority over longer-term investments in infrastructure and employees. Murray believes that, if there had been a meaningful number of people with a stake in Walmart’s longer-term health—such as store associates—involved in the business decisions, some of these changes wouldn’t have happened, and the company would be better off. This led Murray, with the help of a worker’s-rights organization called United for Respect, to join in drafting a resolution that she plans to present to Congress on Tuesday—and, later, at Walmart’s annual shareholders’ meeting—urging the company to place a significant number of hourly retail employees on its board of directors so that they might have input on major corporate decisions.”

I love the idea. The only way it works is if the hourly employees who are on the board, have full voting rights as other board members, and they are not compensated in a way that makes them vote differently than they would as a normally compensated hourly worker. Basically, you couldn’t allow management to game the system by making it financially rewarding to those hourly employees that incentives them to make decisions in ways they normally wouldn’t.

So, would it be better for organizations to have hourly employees on their board? That’s the real question! More from the article:

“Because workers have so rarely been invited to participate in board-level decisions at companies in the U.S., there are few domestic examples to look to for a sense of how it would play out. In Germany and a handful of other European countries, however, having worker representation on boards is required. Baldwin’s office found research that showed that companies with worker representation invest twice as much in their businesses as those without; wages are higher, and profits are distributed more evenly. These firms also performed better. None of this is surprising. Low-level employees are deeply invested in a company’s long-term success, because their families depend on it in ways that top executives waiting for a bonus may not.” 

I’m definitely one of those people who believe we have an issue with executive compensation. Sure you see examples that are grotesque, but for the most part, executive compensation is market driven, and if organizations want to find effective leadership that has the ability to lead on a giant scale, it costs money.

I think what we are missing is the re-investment piece. Most boards and executives are concerned with financial performance, but in the short-term, not long. Quarter to quarter earnings drives short-term decision making that many times doesn’t include re-investment into the business to ensure long-term, steady success.

The market doesn’t reward steady success, so boards make decisions that are many times counterintuitive to long term success. Hourly employees, in turn, would tend to make better long-term business decisions because this business success long-term has a much bigger impact on their life, versus short-term business gains.

I’m not sure I want to see this regulated, I tend to believe the market will show companies how to run. That being said, in the past few decades the market has led many strong companies down the wrong path.

What do you think? How would you feel about having hourly employees on your board of directors?