It’s Going to be Hard, but it’s Going to be Fair.

Posted on August 24, 2018 by Tim Sackett

I heard this quote recently, it was used by an old football coach to his players:

“It’s hard, but it’s fair.”

He wasn’t the first to use this and probably won’t be the last – but the line stuck with me because of how I don’t think many people in today’s age really think this way. Many want to talk about what’s fair, few want to discuss the ‘hard’ part. The football coach’s son described the meaning of what he feels the phrase means:

“It’s about sacrifice,” Toler Jr. said of the quote. “It means that if you work hard that when it’s all said and done at the end of the day, it will be fair based on your body of work. It’s about putting in the time, making sure that you’re ready for the opportunity.”

I think we all think our parents are hard on us growing up. I recall stories I tell to my own sons of my Dad waking me up on a Saturday morning at 7 am, after I was out too late the night before, and ‘making’ me help him with something, like chopping wood or cleaning the garage out. He didn’t really need my help, he was trying to teach me a lesson about choices. If I chose to stay out late at night, it was going to suck getting up early to go to school.

He shared with me stories of his father doing the same thing, one night my Dad had gotten home late, so late, he didn’t even go to bed, just started a pot of coffee and waited for my grandfather to get up, figuring that was easier than getting a couple of hours of sleep and then hearing it from my grandfather the rest of the day.

As a HR Pro, we see this every day in our workforce. There are some who work their tails off, not outwardly expecting anything additional, they’re just hard workers. Others will put in the minimum, then expect a cookie. It’s a tough life lesson for those folks. Most usually end up leaving your organization, believing they were treated unfairly, so they’ll go bounce around a few more times.

Eventually, they’ll learn to put in the work, put in the time and more times than not, things work out pretty well. Sometimes it won’t, so you go back to work even harder. It’s been very rare in my 20 year HR career that I’ve truly seen a really hard worker get screwed over. Very rare! Now I know a ton of people who think they work hard, but they don’t, and they’ll say they get screwed. But the reality is they don’t work hard, they do the same as everyone else.

Do some idiots who don’t deserve a promotion or raise sometimes get it? Yep, they sure do, but that doesn’t happen as much as you think. The hard workers tend to get the better end of the deal almost always.

I hope I can teach my sons this lesson: Life is going to be hard, but if you keep at it and put in the work, it’s going to be fair. I think that is all we can really hope for.

5 Great Excuses for Missing a Co-worker’s Wedding & 3 Bad Ones!

Posted on August 23, 2018 by Tim Sackett

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 a 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:

You have “Explosive Diarrhea” (No one ever follows that up with another question! Okay, thanks, good luck with that…)
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…)
You have to Babysit for a Co-worker! (Now this one is fraught with a problem – 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 are my Top 5 Excuses to Miss a Co-worker’s Wedding:

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.
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.
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.
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. 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.
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?

Is employee experience really all about your manager? #Maslow #Drink!

Posted on August 17, 2018 by Tim Sackett

So, I’m sharing a post I wrote over at EXJournal.org (EX = Employee Experience). It’s site started by some brilliant people from all over the world and they invited me to write to bring down the overall quality of the site! I wrote this post and immediately thought, “Hey, I just leveled-up from my normal poorly written stuff!”.

I thought this because it’s an idea I’m passionate about and truly believe. I think we get lied to a bunch by HR vendors who are just trying to sell their shit. We’ve been lied to for a long time on the concept – “People leave managers, not companies” – that’s actually not true…enjoy the post and check out the new EXJournal site!

“Employees don’t leave companies. Employees leave managers.”

How often have you heard this over the past decade? A hundred times? A thousand times?

We love saying this in the HR, management consulting, leadership training world. We use it for employee engagement and employee experience, to almost anything where we want to blame bad managers and take the focus off all the other crap we get wrong in our companies.

The fact is, the quote above is mostly bullshit.

Employees actually care about other things more

The truth is, employees actually leave organizations more often over money than anything else. We don’t want to believe it because that means as leaders we have to dig into our budgets, make less profit, and pay our employees true market value if we want them to stay.

Managers might be the issue if you’re getting everything else right. So, if you pay your employees at the market rate. Ifyou offer market-level benefits. If you give them a normal work environment, then yes, maybe employees don’t leave your company, they leave their managers.

But you forgot all that other stuff? Maybe the ‘real’ reason an employee left your company wasn’t the fact their manager wasn’t a rock star. Maybe it was the fact you paid them below market, gave them a crappy benefits package, and made them work in the basement?!

The dirty little truth about Employee Experience is that managers are just one component of the overall experience, and we give them way too much weight when looking at EX in totality. We do this because we feel we don’t have control over all of the other stuff, but it’s easy to push managers around and ‘train’ them up to be better than they actually are.

Rethinking Maslow for EX

There is a new Maslow‘s Hierarchy of Employee Needs when it comes to Employee Experience and it goes like this:

Hierarchy of needs Level I – Money – cash!

Level II – Benefits – health, fringes, etc.

Level III – Flexibility of Schedule – work/life balance

Level IV – Work Environment – short commute, great design, supportive co-workers

Level V – The Actual Job/Position – am I doing something that utilizes my best skills?

Level VI – Your Manager – do I have a manager who supports my career & life goals?

We all immediately jump to Level VI when it comes to EX because that’s what we’ve been told is the real reason people leave organizations. Which actually might be the case if all of the other five levels above are being met. What I find is that rarely are the first five levels met, and then it becomes really easy to blame managers for why their people leave.

Managers aren’t the difference maker

When I take a look at organizations with super low turnover, what I find are that they do a great job at the first five levels, and they do what everyone else does at level six. The managers at low turnover organizations are virtually the same as all other organizations. There is no ‘real’ difference in skill sets and attitudes; those managers are just managing employees who are pretty satisfied because most of their basic needs are met pretty well.

I think the new quote should be this:

“Good employees leave companies that give them average pay, benefits, and work environment, that don’t utilize the employee’s skill set, and that make them work for a crappy boss.”

(Tim note – Why the #Drink? It’s a game that my fellow HR/TA speakers and I play. We hate when someone uses the Maslow pyramid in a slide, so we make fun of it by claiming every time a speaker mentions “Maslow” or shows the pyramid the entire audience should have to take a drink – like a drinking game for bad speakers! The more you know…)

Want to make more money? Be an extrovert!

Posted on August 16, 2018 by Tim Sackett

New research out of the University of Copenhagen finally puts to rest the age-old argument around what’s better: being an extrovert or being an introvert? I have friends who are on both sides and super successful in their careers, but it’s still one of those things where if you are one or the other, you usually believe what you are is the best.

Well, in terms of lifelong earnings the data is pretty clear you want to be an extrovert! From the study:

One striking result is how much the trait of conscientiousness matters. Men who measure as one standard deviation higher on conscientiousness earn on average an extra $567,000 over their lifetimes, or 16.7 percent of average lifetime earnings. Measuring as extroverted, again by one standard deviation higher than average, is worth almost as much, $490,100. These returns tend to rise the most for the most highly educated of the men.

For women, the magnitude of these effects is smaller (for one thing, women earned less because of restricted opportunities). Furthermore, extroversion is more strongly correlated with higher earnings than is conscientiousness, unlike for the men.

Yeah, that’s a half of million dollars! That’s life changing money for most people!

Here is something else that came out of the study that I thought was fascinating, people who are ‘agreeable’ by nature, actually make less money!

It may surprise you to learn that more “agreeable” men earn significantly less. Being one standard deviation higher on agreeableness reduces lifetime earnings by about 8 percent, or $267,600. In this context, you can think of agreeableness as meaning a person is less antagonistic and more likely to consider the interests of others. You might have thought agreeableness would be correlated with higher earnings but alas not.

So, here we are as HR pros telling all of our employees who want to be leaders they should be more ‘agreeable’, put the interests of others above your own, etc. What we are really telling them is “hey, here’s how to ensure you’ll make less money in your career!”

I think we see this in our world today. We tend to want to believe we all want ‘servant leaders’ when it comes to someone leading us individually, or leading our companies. But, for the most part, most of our great leaders we can point to, male and female, are still overwhelmingly extroverted and mostly directive in their style of leadership.

One last thing that came out of the study is that being smart and being extroverted is not correlated. Why does this matter? Well, being smart does correlate to higher income as well. So, when we go try and select great employees we tend to just look at intelligence. Which is necessarily bad. If you are going to try to increase your talent, starting with smart people is never a bad idea, but in the long run, it’s more than just IQ:

Another interesting result from the data is that IQ and conscientiousness are not very well correlated. That implies that finding ideal workers isn’t so easy. The quality of openness, however, is moderately positively correlated with IQ, so you might expect that the smarter workers are more willing to experiment and try new things.

So, do you have to be extroverted to make more money? No, but it’s easier and more likely if you are. If you’re introverted, by nature, it wouldn’t hurt to work on your outwardly extroverted self. We all have the ability to be extroverted and introverted in certain situations. The key for earning more income is being extroverted in a professional setting.

Okay, my introverted friends! Tell me why this research is complete B.S.!

Career Confessions from Gen Z: Is Work-Life Balance a Right?

Posted on August 15, 2018 by Tim Sackett

One of the scariest things that I had to go through recently was deciding to give up competitive swimming. I have been racing in the pool for the majority of my life, but I knew in March 2017 that it was time to step away from the sport that I love so much. For a while after, I felt lost; what am I supposed to fill my time and put my energy into now that I am done swimming?

This is something that many high school graduates, soon to be college students and full-time employees have to go through. Many of us have been involved in activities like sports, art, or music for most of our lives, and we’re now expected to willingly step away from the things that we love to do and work our lives away. It doesn’t seem fair and often leads to a loss of identity for a lot of people. I know I had no idea what to do without swimming.

It’s a sick thing that our society expects adults to dedicate their lives to their jobs. Growing up, I remember hearing adults making fun of their peers that did things like slow-pitch softball or an organized basketball league. They would say that they’re not dedicated enough to their careers or that they needed to spend more time with their kids.

This has bothered me for a long time. I don’t want to have to give up what I love to do just because I have a job and a family! I hope that I can find a job that allows me to do something that I love, but I don’t think that my job will ever involve racing in a pool. We shouldn’t expect young people to completely give up things that they love to do once they have to provide for themselves. I want to help foster an environment where it’s not only okay to take an hour of each day to go do something for yourself, but it’s encouraged.

This is something that is so important to me in a future employer. I want to work for a company that encourages me to have a work-life balance and doesn’t pressure me to spend my life in the office.

If you had more time to have fun and do something that you love, what would you do?

This post was written by Cameron Sackett (not Tim) – you can probably tell because it lacks grammatical errors!

HR and TA Pros – have a question you would like to ask directly to a Gen Z? Ask us in the comments and I’ll respond in an upcoming blog post right here on the project. Have some feedback for me? Again, please share in the comments and/or connect with me on LinkedIn.

Your Weekly Dose of HR Tech: Microsoft’s Workplace Analytics and MyAnalytics are Pretty Awesome!

Posted on August 7, 2018 by Tim Sackett

Today on The Weekly Dose I review two of Microsoft’s newest entries into the HR tech space Workplace Analytics (WPA) and MyAnalytics. Both MS Workplace Analytics and MyAnalytics are products that can be purchased to use with Microsoft 365.

From a high level what Microsoft does is pull in your data from all the other Microsoft 365 products you use like email, your calendar, activities you do on various other products like Skype, etc. This data is then used to unlock a bunch of stuff around cultural change and transformation.

You can imagine mining this data from your entire employee population would give you insights around how to create more capacity in new ways to work, understand what your best performers are doing to be the best, how certain teams, locations, etc. are collaborating, or not collaborating, etc.

Microsoft Workplace Analytics can then help your organization show where time is being wasted, communication breakdowns, how to increase worker focus time, reduce your amount of meetings, reduce the amount of after-hours work being done, etc.

MyAnalytics can be bought by itself as a stand-alone product for 365 users, but it works great in conjunction with Workplace! It’s the natural offshoot technology for once you have your insights from Workplace you can then help individuals with how can they better manage themselves and their calendars to be more effective and efficient in their work.

What I like about Microsoft Workplace Analytics and MyAnalytics:

– It’s 100% adoption! Your employees don’t have to do anything to gain the value of using Workplace, they just keep doing what they’re doing and the data insights automatically start coming in. Then it’s ‘just’ simple behavior changes!

– Leaders can easily see ways to increase productivity almost instantly after turning it on. Workplace gives you a dashboard that can be drilled down to the team level to show you where your team’s time is being fragmented and help get them more focus time to work better.

– It’s a dynamic tool that is fairly flexible as a BI tool allowing you to bring in other outside data like Sales metrics or employee engagement data, and give you insights on how to best work on increasing the measures that move your business.

– Workplace shows you organizational and team trends around meetings, emails, internal vs. external hours worked, meeting overviews and effectiveness, coaching opportunities, etc. It’s really unbelievable on how one tool touches every person equally in our organization and can have a real impact on moving the culture of an organization on how the leadership wants to define it.

– MyAnalytics is literally like a Fitbit tracker for your workplace. Complete privacy of the individual data. Organizations have zero access to the individual data. “Nudges” the employee to more efficient/effective behaviors based on data. Constantly gives ideas and tips to help them. Shows awesome things like what percentage of your emails were actually opened, reminds them to block time when their calendar begins to get to full with meetings in the future, etc.

When I first started to see this my first thought was “Oh no! Big brother!” but Microsoft has taken real care to ensure this is a product for a positive cultural change, not a hammer for performance management. It’s a technology to aid organizations at a high level, but also give individuals the empowerment to help control their own work lives as well.

Microsoft Workplace Analytics can work with organizations as small as a couple of hundred and still deliver great returns. MyAnalytics can work in teams as small as 3 or 4 and deliver results. It’s easy to see how you would get giant ROI at the enterprise level, but I love that this can be used for organizations of all sizes.

I’m a big advocate that HR should own culture and be the organizational performance driver at a high level. Workplace Analytics and MyAnalytics give those leaders in organizations a tool that delivers real insights into how we can begin changing work for the better! Less wasted time in meetings. Less redundant email. Less of all of those things that keep us from being successful. If you’re a Microsoft 365 shop, this is a demo you need your entire leadership team to take a look at!

The Weekly Dose – 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 tech space and I wanted to educate myself and share what I find. If you want to be on The Weekly Dose – just send me a note – timsackett@comcast.net

Want help with your HR & TA Tech company – send me a message about my HR Tech Advisory Board experience.

What’s the Best Day of the Week to Take Off?

Posted on August 3, 2018 by Tim Sackett

Right now you’re probably in the middle of your ‘summer’ work schedule. You know where the office gets out early on Friday or doesn’t even come in on Friday so everyone can have the long weekend and enjoy the great summer weather. In the North and Midwest, where we have short summers, this is fairly common.

I have a confession to make. I’m an awful judge on what I really want for myself.

When I was in college I scheduled myself from 8 am to noon, Monday through Thursday believing how great it would be to get school done early and have the entire rest of the day off to do whatever it is I wanted, and have a long weekend. It was a disaster! Not only did I have my afternoons and long weekend, I also had most mornings off, because I didn’t drag my butt out of bed to go!

I have this same ‘traditional’ mindset when it comes to flexibility scheduling at work. In my mind, I believe I would want to either take off Friday (ideally, choice #1) or Monday so that I could always have a long weekend. Without really putting thought into it, I think most people would say the same thing.

As with everything nowadays, some research is helping to shape my mind differently:

The key is giving yourself a beat, a day to make your own pace, and to break the tyranny of the over-scheduled work week. Our human experience of time is ordered by “pacers,” both internal (like being a “morning person” or a “night owl”) and external, like the work week or a deadline, says Dawna Ballard, a communications professor at University of Texas at Austin and a scholar of chronemics, the study of time and communication. “Everyone has a different chronotype. Some people are slower moving, some people are faster moving,” she told me over the phone. “Our work, though, just goes and throws that out the window and says actually, this is how fast you have to work, this is when you have to work…

…One of the hallmarks of modern life is that our internal and external pacers are often at odds with one another—one reason Monday mornings are difficult. “You’re coming off from a weekend, where you do have your own pace,” Ballard says, explaining the Monday blues from a social science perspective. “It’s having to go from your pacer, back to this other pacer, there’s that friction.”

So, what’s the best day to take off in your week?

Wednesday!

Having that break in the middle of your week does a couple of really positive, psychological things. One, you go into your week knowing you only have two days of work, until your next break to do ‘you’ stuff. Then, another couple of days before a two-day break. The second thing is having that mid-week break allows us to do life stuff when it’s less busy with everyone else doing ‘life’ stuff.

You can go work out at the gym and it’s not busy. You can go to a doctor’s appoint or get your hair done in the middle of the day, that’s not a Saturday. You can go to the DMV when it’s quieter than normal. You can take a breath at home, while it’s quiet and recharge your batteries.

When you look at adding a little bit of flexibility to your organizations, it doesn’t always have to be some sort of “we’re letting everyone out early on Friday”. Maybe some of the best ‘flexibility’ would be having a half-day on a Wednesday! Can you imagine instead of a half day on Friday, you got a half day on Wednesday each week? How would your life change?

The next time you use a PTO day to extend a weekend, rethink what you’re doing and try taking a PTO day on a Wednesday. It just might be the break you need to keep you fresh all week!

Why do we hang on to bad hires for so long?

Posted on July 23, 2018 by Tim Sackett

I’ve been very public about my philosophy on hiring. I do not hire to fire. In no way do I hire someone thinking “I can’t wait until the day I fire them!”, I don’t think any of us really think that!

I hire someone believing that with the right training, development, and support, they will be wildly successful! I own at least half of that equation, the person I hire owns the other half. Many times it works, sometimes it doesn’t.

The problem with my philosophy is “Sunk Cost”.

Sunk cost is an accounting philosophy that means a cost that has already been incurred and cannot be recovered. So, you’ve already sourced, recruited, and trained an employee. You’ve gone beyond training working to develop them. All those costs are now spent.

BUT – because you’ve ‘invested’ those costs into an employee, you are less likely to let them go believing you are more likely to get a return on those costs. In reality, there is absolutely zero evidence that shows you’ll get any return for future investment into that employee, but we really struggle to give up on them based on what we’ve already spent.

This is super common in the management of people resources!

Well, I’ve already dropped $50K into Tim, I guess another $10K isn’t that bad. When in reality that $10K is actually way better spent on another employee, and you fire Timmy!

I’ve known about Sunk Cost for a long time, but now there is actually scientific evidence to back up the fact we should be firing failing employees sooner:

“Sunk costs are irrecoverable investments that should not influence decisions, because decisions should be made on the basis of expected future consequences. Both human and nonhuman animals can show sensitivity to sunk costs, but reports from across species are inconsistent. In a temporal context, a sensitivity to sunk costs arises when an individual resists ending an activity, even if it seems unproductive, because of the time already invested. In two parallel foraging tasks that we designed, we found that mice, rats, and humans show similar sensitivities to sunk costs in their decision-making. Unexpectedly, sensitivity to time invested accrued only after an initial decision had been made. These findings suggest that sensitivity to temporal sunk costs lies in a vulnerability distinct from deliberation processes and that this distinction is present across species.”

This scientific study showed both humans and rats basically do the exact same thing. If we feel we have already invested a ton of resources to a task, we are more likely to continue pursuing this task even when all the evidence to that point has only shown failure!

This is Poor Performing Employee Management 101!

-You hire an employee.

-The employee gets trained and should have the skills to perform the job.

-The employee doesn’t perform the job, so you give more resources to help get them up to speed.

-The employee still doesn’t perform.

-The manager decides not to terminate the employee, but to continue to give more resources and chances.

Why do we do this?

You hired 3 employees before the failing employee and all three completed training and did the job successfully. We know the process works. So why do we not fire the employee?

Sensitivity to Sunk Cost. We are as dumb as rats when it comes to investing our own resources into failing employees. We act the exact same way!

It has nothing to do with the employee and our desire to give everyone a fair shot (I don’t hire to fire). It has everything to do with our own internal drive of not wanting to lose, what we fell we’ve already invested, even when all the data tells us future investment is akin to burning a pile of cash.

So, don’t hire to fire, but also don’t be as a dumb as a rat and not fire someone who shows you they can’t and won’t do the job you hired them to do!

Career Confessions from Gen Z: Bathrooms matter to a great Employee Experience!

Posted on July 20, 2018 by Tim Sackett

In my opinion, there are few places that are worse than a public restroom. There have been very few times in my life where I’ve been happy to use a restroom in a public area. I strongly dislike any bathroom that is not a private restroom or one that is in my home.

I have 2 main reasons for my strong distaste for public bathrooms: cleanliness and privacy. I can thank my Mom for my concerns about germs, and 9 times out of 10 a public restroom will be dirtier than my nice and tidy bathroom at home. My main problem with using public bathrooms is privacy. Even if I just went in to fix my hair, I don’t want anyone looking and judging me for doing it!

Although I really would prefer if I could just use my bathroom at home 24/7, that is not realistic especially when I’m working every day. I’m going to at least have to pee a few times. So, if I have to use a different bathroom than my own, I want it to be as nice as possible.

The bathrooms at Quicken Loans(where I’m doing my summer internship! Hey, guys!) check almost all of my boxes. They are extremely cleanly and I see cleaning staff work on the bathrooms a few times a day. But, the best part is the almost completely private stalls that they have! The walls in between the stalls and the doors go all the way from the ceiling to the floor. It’s my dream honestly.

No one wants to poop at work, and if they have to, it might as well be in almost complete privacy.

In addition to the cleanliness and the private stalls, the restrooms on my floor have baskets of toiletries; toothbrushes, stain sticks, lotion, hairspray, basically anything you could need to make you comfortable and fix any problems you may have. It’s so comforting to know that if I ever spill something on my clothes or have bad breath, I have a quick fix just a few steps away.

If you want to make sure your employees are comfortable and doing their best work, the bathroom is a good place to put some luxury into. Most people don’t enjoy using the restroom but we all have to do it. So why not make it a more enjoyable experience for your employees!

This post was written by Cameron Sackett (not Tim) – you can probably tell because it lacks grammatical errors!

Your Weekly Dose of HR Tech: Kashable – Low Cost Loans for Employees (@GetKashable)

Posted on July 17, 2018 by Tim Sackett

Today on The Weekly Dose I take a look at the HR Tech, voluntary employee benefit and financing solution for your employees called Kashable. Kashable is basically a simple way for your employees to borrow money, where you as a company are not involved, but can still ensure they get the assistance they need!

Here’s the scenario – Timmy walks into your office. He’s got a problem. His car broke down over the weekend. He needs new brakes. He has no savings and no way to get the money. Without his car, Timmy stops coming to work.

You’ve had this conversation before, haven’t you? In fact, you probably will have it this week!

Here’s the problem. Your company and you in HR don’t want to become a bank. Loaning out money to employees, through your company, always becomes a nightmare. This is why I was so intrigued with a technology like Kashable.

Kashable gives your employees access to low-cost loans based on a percentage of their take-home pay. You as the employer, only facilitate the repayment through payroll deduction, but ultimately you are not responsible for repayment.

Having this option for employees is important!

Here’s what way too many of our employees do in a cash crisis situation. They choose bad money options! 401K loans, high-interest credit cards, cash advance shops, or they go without something that is critical, like health insurance or a medication, etc. All of which puts them in a worse situation long term than where they started. The problem is, most of our employers have a bad or low credit and don’t have access to cheaper capital alternatives.

What I like about Kashable:

– Gets the employer out of the loan business and puts it back where it belongs, in the hands of a financial institution that I have validated will do right by employees.

– Kashable reports directly to the credit bureaus, allowing your employees to build positive credit on these smaller amount loans that are paid back through payroll deduction.

– Kashable doesn’t allow employees to take a loan that can’t afford, so they are also teaching them responsible financing. The average amount of a weekly repayment is 5-10% of their takehome, so they don’t put themselves in a worse situation. They also only allow an employee to have one loan at a time.

– Many of your employees have a bad credit and could never get a low-cost loan, but with Kashable because they are employed by you, they will have access to this financing mechanism.

– Gives a credit option to your employees have no credit as well (high school grads, college grads, H1B workers, etc.).

Kashable has data to show that 35-40% of employees who use the service use it to pay down higher interest debt they have. So, already you’re helping to teach them to get away from the nightmare too many of our employee get caught in with high-interest credit.

I’m in love with any kind of technology that helps my employees and helps me and my organization. I’ve been in the bad situation of having to loan my employees money and how that usually ends up bad. I’ve begged my banking partners to give me an option like this, but they never would because they had to follow traditional banking rules. Kashable takes on the loan risk, and they do it because they know your employees are an actual fairly low risk.

Go check them out and do a demo – www.kashable.com