How to Create an Employee Handbook that Doesn’t Suck!

At every single company I’ve ever worked for, at some point in my tenure, I’ve gotten yanked into helping in some way rewrite the employee handbook. I’m sure most HR pros have been in the same boat!

There’s really only two camps when it comes to employee handbooks:

Camp #1 – We’ve had the same employee handbook since the beginning of time. It’s written on stone tablets.

Camp #2 – We rewrite our employee handbook each year because it’s the most important document on the planet.

The problem is both camps usually write the employee handbook that reads like a welcome packet to prison! If you forced candidates to read your employee handbook before actually accepting a position with your company 99% would decline your offer!

Gustoan SMB HRIS provider, recently sent me a copy of a 54-page guide they put together to help organizations develop an Employee Handbook that is actually readable and engaging for your employee. It’s a really solid resource and after reading it, I’ll also pass along some of my own advice on how you can make your Employee Handbook not Suck:

1. Tell Your Story. If you can write your employee handbook in story fashion, people will actually read it. I know, I know, that takes creativity and you’re in HR and not creative! Someone in your organization is a storyteller. Have them help on the story, and you help on all the details you need to make sure get into the handbook.

2. Give them the ‘why’. We put some really dumb rules in our handbook that don’t seem to make any sense. Just give them the why. It might not make the rule any less dumb, but at least they’ll know. “No sock Thursday is because our CEO has an ankle fetish. Yeah, we know it’s weird, but it is what it is.”

3. Engage a graphic designer. Color and pictures matter to the readability of your handbook. Make it look pretty and engaging and that might cover up some of the boredom of the legalize we are required to put in our employee handbooks.

4. Use your handbook to communicate your culture. Your real culture. Don’t have a funny and engaging handbook when you have a buttoned-up culture, it sends a mix message. Also, don’t write this boring legal document of a handbook if you have “No Pants Wednesdays” in your office. It doesn’t fit your culture!

Gusto is giving their Handbook How-To Guide out for free in a download. Check it out, it has some really good information. They didn’t pay me to say this, I just liked it and wanted to share (that shouldn’t stop them from sending me these new Nike LunarEpic Low Flyknit 2‘s in size 9 as a thank you!).

 

 

Why do you still give out performance ratings?

Let me give you a quick breakdown of how 100% of your employees feel about the performance rating they will receive this year:

Performance Rating on a 1 (you suck and should be shot) to 5 (we couldn’t live without you): 

Rating of 5 – 

The message you were trying to send: “We value your contribution. You go above and beyond. You are a top employee. Keep up the great work. We hope others follow your example.” 

The message the employee actually received: “Yeah, I know I’m the best, and now you better pay me or I’ll take this awesomeness on the road to someone who appreciates it!” 

Rating of 4 – 

The message you were trying to send: “You really increased your performance this year. We love having you on the team. There are still some things you can do to be great.”

The message the employee actually received: “Why am I not a 5!? What the hell! I’m way better than every other person on this team. You suck, this job sucks, I knew I should have worked at the other place.” 

Rating of 3 – 

The message you were trying to send: “You’re meeting expectations for the position. We are thankful for that and your input to the team. We would love to help you strive to reach your goals with us and we have some suggestions.” 

The message the employee actually received: “Why do you hate me? I’ve given you everything. I bleed for this company and this is how I’m treated? I better than most people on this team!” 

Rating of 2 – 

The message you were trying to send: “You’re underperforming for the position, but we really think we can help you reach your potential. We have a plan that will take you to the top if you decide that’s what you want to do, and we want to support you in reaching it.” 

The message the employee actually received: “So, this is my 90-day notice? You’re basically paying me to look for a new job, that’s cool. I wasn’t really feeling this one anyway.” 

Rating of 1 – 

The message you were trying to send: “Look this isn’t working out. You aren’t doing the job you were hired to do and we need that to happen immediately, or else. Are we clear?” 

The message the employee actually received: “So, I’m not fired?! Awesome! Can I now go back to not doing the job and you still paying me? Cool!” 

You don’t need an employee rating system! Employee rating systems are your home phone land line. You’ve had it for so long and although you rarely ever use it, you just can’t give it up!

We know that the rating systems do almost nothing but cause problems with morale. We use them because we can’t trust our hiring managers to give out raises fairly and equitably. So, a five gets a four percent increase, and a four gets a three percent increase, and…

The reality is study after study has told us for decades to not tie performance ratings to pay increases. Set job-related metrics and goals, and tie your pay increases to those. These are many times different than actual performance in the job.

So, how do you replace your ratings? Force your managers of people to make actual measurable items of performance and then create a framework of conversations on an ongoing basis around expectations, metrics and development. If an employee wants to make more money in a position, it shouldn’t be about being better than another employee, it should be about reaching measurables that are more valuable to the organization.

Your rating system system, is basically worthless.

 

Moneyball Rules: Offering More Experienced Workers Less Money!

For years I’ve been trying to get people to understand this Moneyball concept as it relates to hiring, but few really listen. I know you saw the movie, Moneyball, where a major league baseball general manager finds success by signing and drafting ‘undervalued’ players. The players are undervalued for a number of reasons, it doesn’t matter, what matters he was able to get talent on at a discount rate!

Don’t you want to hire employees at a discount rate!?

Hired.com recently came out with a survey that once again demonstrates the most undervalued talent in any market are older workers, 50 years old and up. Apparently, once you become 50 years old, you start becoming worthless! Don’t kill the messenger, “you” are the ones saying this:

Basically, our average salary offer increases every single year of age. It makes sense because as you age, you gain more experience, more experience is more valuable. Or is it?

The chart, also, shows that once a worker turns 50 years old or so, employers (but not you…) start offering those workers less money, even though they have more experience!

Why!?

This has nothing to with wages! This is pure age bias shown towards younger workers. We believe, even older hiring managers, that once someone gets to a certain age, and Hired.com shows us that age to be 50 years old, older workers start losing their effectiveness even as they gain experience.

Somehow, in our minds, that 35-year-old, with three screaming kids and soccer practice four nights a week, is more effective than the 50-year-old with no kids at home, who is willing to work wherever and whenever you need them.

So, now you can play Moneyball!

You already know that most employers in the world hate old people. Thus, there are tons of gray hairs limping around out there willing to take all of your crappy low-ball offers, and they’re probably more loyal for those low wages then any younger worker you have on staff.

Yeah, for capitalism! You get great talent at low rates. Who needs H1B’s when we have old people!

“Well, Tim, it’s not about age bias! It’s about fit and culture and inclusi… I mean, we hire the best available candidate for the job!”

I’m sure you do.

Your reality is as hiring gets tighter, you can continue to overpay for younger talent with less experience, or you can pay a cheaper wage for more experience. Sooner or later, someone is going to ask the right questions. Are you going to have the right answer?

 

The Rules for Office Romances

Tomorrow is Valentine’s Day. As HR pros we know what this means, which is usually a lot of unwanted advances by horny dudes who think they have a shot at the hot co-worker, who has absolutely no interest in them at all.

Welcome to the show, kids!

I’ve given out some rules in the past. Everyone on the planet has read my Rules for Hugging at the Office, but Office Romances are a little more complicated than the simple side-hug in the hallway. So, I thought I would lay out some easy to follow, simple rules for Office Romances for you to pass out to your employees on Valentine’s Day:

Rule #1 – Don’t fall for someone you supervise. If you do fall for someone you supervise, which you probably will because this is how office romances work. In that case, get ready to quit, be fired, be moved to another department, and or get the person you’re having an office romance with fired, moved, etc.

Rule #2 – Don’t fall for anyone in Payroll. When it ends, so will your paycheck. At least temporarily, and even then it will be filled with errors from now until eternity. It’s a good rule of thumb to never mess with payroll for any reason.

Rule #3 – Don’t mess around in the office, or on office grounds. Look I get it. You’re crazy in love and just can’t wait until you get home. The problem is the security footage never dies. It will live long past your tenure with us, and we’ll laugh for a long time at you. So, please don’t.

Rule #4 – Don’t send explicit emails to each other at work. It’s not that I won’t enjoy reading them, it’s that I get embarrassed when I have to read them aloud to the unemployment judge at your hearing. Okay, I lied, I actually don’t get embarrassed, but you will.

Rule #5 – Don’t pick a married one. Look I get it, you’re the work spouse. He/She tells you everything. You get so close, you really think it’s real, but it’s not. You’ll actually see this when the real spouse shows up and keys your car in the parking lot.

Rule #6 – Don’t pick someone who has crappy performance. Oh, great, you’re in love! Now I’m firing your boyfriend and you’ll have to pick between him and us, which you’ll pick him, and now I’m out two employees. Pick the great performers, it’s easier for all of us.

Rule #7 – Inform the appropriate parties as soon as possible. Okay, you went to a movie together, not a big deal. Okay, you went to the movie together and woke up in a different bed than your own. It might be time to mention this to someone in HR, if there is at anyway a conflict of some sort. If you don’t know if there’s a conflict of some sort, let someone in HR help you out with that.

Rule #8 – If it seems wrong, it probably is.  If you find yourself saying things in your head like, “I’m not sure if this is right”, you probably shouldn’t be having that relationship. If you find yourself saying things like, “If this is wrong, I don’t want to be right”, you definitely shouldn’t be having this relationship.

Rule #9 – If you find yourself hiding your relationship at work, it might be time to talk to HR. We’re all adults, we shouldn’t be hiding normal adult relationships. If you feel the need to hide it, something isn’t normal about it.

Rule #10 – Everyone already knows about your relationship. People having an office romance are the worst at hiding it. You think you’re so sneaky and clever, but we see you stopping at her desk 13,000 times a day ‘asking for help’ on your expense report. We see you. We’re adults. We know what happened when you both went into the stairwell 7 seconds apart. Stop it.

There you go. Hope that helps. Have a great Valentine’s Day!

Maybe You Should Just Do The Job You Were Hired For

It seems like frustration is at an all-time high. On a daily basis people are coming unglued over things they have no control over, and never will.

We are told to be more empathetic. We are told our employees need us to be “X”. You fill in the “X” because it changes pretty much article to article, generation to generation, leader to leader. One day I’m just supposed to care more. Then next day I need to listen more. The next day I need to understand more. Today, I need to be more flexible.

Somehow we’ve gone from running businesses to managing a day care.

I’ve stopped listening to people who don’t do the job I do. To the people who haven’t done the job in the past decade. To the people who claim to be experts but haven’t worked in my field, ever. 

Instead, I’m going out and talking to my employees. The young ones, the old ones, the ones in between that we’re not supposed to pay attention to anymore because they don’t matter because they’re not young or old, or female, or a minority, or gay. I’m going out and talking to them all equally. Since I need them ‘all’ to move my organization forward.

It doesn’t matter what my employees are telling me. That’s for me, to help them. The thing that will help my employees, most likely won’t help your employees. You work in a different culture, location, industry, climate, etc. No one is a better expert on my employees than I am. 

Just like you will be the expert of your employees, your team, your department, your organization.

 But, here’s what I think you’ll find out:

  Your employees are all individuals with very specific problems, concerns, and desires.

 Their problems start close to them and then move outward. Sure it sucks Trump is making massive change and they want to help America and the World, but first, they have an issue with daycare and paying student loans, and a health scare. Those problems are bigger than the world problems you keep shoving down their throat. Help them solve the problems close first, then solve the world.

 Your millennials employees became adults, and you keep treating them like they just left college and are still kids.

 Your ‘new’ youngest employees are much different than millennials, and they’re not. They’re still young people with young people problems and passions.

 Your employees want to be successful. Across the board, it’s a driving, motivating force. You helping them become successful is the most important thing you can do as a leader. What’s successful? That is also very individualized. Your challenge, as a leader, is to find a way tie their success to the organization’s success. It’s hard to do, and you have to figure it out for your employees.

We keep letting other people tell us how to do our jobs. Have fun with that. I’m going to do the job I was hired to do, the way I know it needs to be done because no one knows how to do this job, better than me.

Compromise Kills Innovation

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

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

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

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

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

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

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

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

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

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

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

The Super Bowl Should be on Saturday: An Employer’s Plea

So, it’s the Monday after Super Bowl and 15% of your employees didn’t show up. As HR professionals we are not shocked by this, it happens every year after the Super Bowl.

The Super Bowl has become an unofficial national holiday. You don’t even have to like the teams playing to want to go to a Super Bowl party, or throw a Super Bowl party, because it’s become a national social event.

Kraft Foods understands this and instead of trying to move the Super Bowl started an online petition to declare the Monday after the Super Bowl a national holiday, since, they claim, more than 16 million employees call in ‘sick’ the day after the Super Bowl costing organizations over $1 billion in lost productivity.

Think you have a God-given right to be off the day after the Super Bowl? Kraft Heinz agrees with you. So the food company’s giving all of its salaried employees the day off on February 6 after Super Bowl LI…

In addition to letting its employees stay home, Kraft Heinz is launching a campaign to push for everybody to be off after Super Bowls. It’s started an online petition to essentially create a new national holiday it calls “Smunday,” which extends Sunday’s Super Bowl fun into Monday.

Okay, some of this is just good old fashion marketing. Kraft Heinz food group makes a killing on Super Bowl weekend, so why not try a marketing stunt like this to drum up even more business and brand recognition!

The problem with this solution is it doesn’t really help employers gain back lost productivity and revenue, in fact, it only increases expenses by now having another paid holiday (an expense), with nothing to return the lost productivity of having your entire workforce off for a day.

The issue is that the NFL should move the Super Bowl game to Saturday evening or day. Can you imagine the nationwide party that would take place, over what it already is, if the Super Bowl was on Saturday night!

The NFL already gives both teams an extra week off to prepare. Starting the game on Saturday, instead of Sunday, wouldn’t harm the players, wouldn’t harm the NFL, and bars and restaurants would have even a bigger day than they do already.

If Kraft Heinz really wants to help America, they should change their petition to move the Super Bowl to Saturday, not just make up another work holiday.

Employee Betrayal is Something You Never Get Over

You probably missed this recently, another lawsuit, another former employee ‘allegedly’ stealing company secrets and taking them to their new employer who just happens to be developing the same or similar product as their past employee. This one is interesting because it evolves one of the company that everyone in tech seems to want to work for, Tesla.

Here the information on the lawsuit:

Tesla filed a suit against its former director of Autopilot, Sterling Anderson, on Thursday, alleging he attempted to recruit engineers from Tesla to join the self-driving startup he and the former CTO of Google’s self-driving arm, Chris Urmson, were establishing.

The suit further alleged that Anderson downloaded “hundreds of gigabytes of Tesla confidential and four proprietary information” documents to his personal computer. When he was terminated, Anderson returned the documents, but not the backups he created, the company alleged.

In addition to making offers to a dozen Tesla employees — only two of whom accepted, according to the suit — Tesla is also alleging Anderson worked on the company Urmson was starting, called Aurora, during company time. Recode first reported that Urmson was starting his own self-driving company and that he was recruiting big names from many players, including Tesla and Uber.

There’s always two sides to every story, but this one always plays out about the same way. The original company hires you, trains you, develops you, gives you the opportunity to be a part of something great. The employee then says “F-you, I’m using all of this knowledge to benefit someone else. I mean it’s my brain, not yours.”

That’s really the extent of every employer-employee betrayal, like this one. Of course, in their minds, both sides are correct.

The reality is, and Mr. Anderson knows this, he would have never gotten the information into his brain if he Tesla never put him in a position, and billions of dollars of development, to get such knowledge. As you can imagine, Telsa feels betrayed. Mr. Anderson feels like he’s completely innocent. The courts will decide.

This has gone on since the beginning of time and will continue. Companies spend way too much money on developing ideas to have them just walk out the front door. As of today, it’s illegal for companies to kill employees who try and take this knowledge to the competition or start their own company on the back of all the work they got from their previous employer.

Here’s what I know. As a leader, you never forget this betrayal. You can forgive, but you won’t forget. It’s less about the ‘stealing’ of secrets and more about the break in trust. You were a part of the team, and you decided to leave and go play for the other team (and you took our playbook!). That employee will be forever dead in your eyes. They burned the ultimate bridge.

The employee would argue the other side. “Hey, wait, I should be able to take my skills and work anywhere I want!” For many employees, this is the case. For some, for those who get brought into the ‘circle of trust’ and get to see the secret sauce recipe, you give up this right. Or at least, you give up the right to go to another employer and share trade secrets. The line of betrayal is fine and sharp. You never really want to find yourself on either side of it, because no one wins.

You Don’t Actually Have To Retain Everyone!

In 2017, and beyond, employee retention will become a huge focus. Some could argue that employee retention is always an important issue, but during major recessions, it becomes less of a stress for sure. With shifting employee demographics, retention will be a hot item over the next few years as we see more and more of the baby boom generation leave the workforce, and we do not have enough young skilled workers entering the workforce to replace those leaving.

Here’s a dirty little secret, though:

“You don’t actually have to work to retain every one of your employees!”

Why? Because most of your employees won’t leave. We like to tell ourselves that every employee can leave, and by the law of the land (at least for now under the Trump administration), they actually can, but statistics clearly show that most don’t leave.

The average retention rate across all industries is about 85%, year over year. That means 85 out of 100 employees will probably not leave you. You are really worrying about 10-15% of employees. Ironically, it’s about 10-15% of your top performing employees that make the most difference in your company.

First, we have to solve one problem you have. Your ‘retention’ strategy is flawed and is actually pushing good employees out the door, the ones you want to keep!

Here’s why:

  1. You’re smart and send out a retention survey to find out from all of your employees what they want to be retained. You’re like 99% of organizations.
  2. The results of that survey tell you what the majority of your employees want to be retained. Things like ping pong, hot yoga, 27 smoke breaks a day, free tacos on Tuesday, etc.
  3. You implement a variety of the desired retention ‘fixes’! Yay!!!
  4. Your retention number actually stays the same, or maybe even gets worse.

WTF!?!?!?

Remember what I said above? You shouldn’t be concerned with about 85% of your employees who will never leave. They are not going anywhere! You shouldn’t be surveying all of your employees, you should be surveying only your best employees, those you are desperate at keeping!

What you’ll find is that the 10-15% of high valued employees you want to retain, what they want to be retained is very different from what the hoard wants to be retained! They’ll want a clear career path, performance-based compensation, more talented co-workers, better work tools, etc. They could give a shit about ping pong and Taco Tuesday.

Great HR isn’t working to make everyone equal. Great HR is working to make your organization better than your competition. That happens by having noticeably better talent. You get that kind of talent by listening to those employees who are noticeably better, not those who complain about the color of your new carpet.

What would this create?  It creates a high performing organization that attracts high-performing employees. Most organizations won’t do this because they believe they need to work to retain all of their employees. “We’re all high performing, Tim!” No, you’re not. Once you get that idea out of your head, you can do some really cool, industry changing stuff!

I’m not an “Us” or a “Them”

Politics are ruining my friendships. Look, I don’t really want to know what you care about, because most of us care about crazy shit that others don’t understand, or can’t understand. You getting me to understand your crazy, probably isn’t a good thing!

I have true friends who are pro-life. I love these friends. I don’t understand how they can’t understand my pro-choice stance, but they don’t. They can’t understand how I can be a baby killer. I’m not, but we all have our positions. We’ve been able to have a great friendship in spite of this one difference.

Maybe there should be a difference of belief scoreboard. Only having one difference of belief is fine, we can still be close friends, even two or three. Once you get to four, you begin to be a person I don’t want to hang with. Once you get to six, maybe you turn into a horrible person I would rather see dead. I’m not quite sure at the math, but I’m sure we could come up with a system.

I want to be friends with all kinds of people, but recently it seems like all kinds of people don’t want to be friends with me because I don’t believe in their crazy, to the exact specifications they want me to believe.  I see their points. I respect their points. But, I’m not flying their flag. So, apparently, that makes me part of the evil empire.

I like puppies. I fly that flag, for sure! I love babies. All babies. White, brown, yellow, any color baby is alright with me. I’m definitely pro puppy and pro baby. I like gin and tonics. Marry whomever you please, I support that. Single moms, I was raised by one, that’s the toughest gig on the planet. I’m not a church-goer, but I’m not an Athiest. I like the Spartans, probably too much. I like money. I hate giving money to people who don’t deserve it or appreciate it. I’m definitely, pro-money. I like helping people. I try and do that as much as I can.

I’m not a ‘them’. I’m also not an ‘us’. I’m more of a ‘we’.

Both the Democrats and Republicans are extremely happy we are all going ‘us’ and ‘them’. By doing this we keep both parties in power. The last thing they want is that we become a ‘we’. The establishment has ‘us’ exactly where they like to have us. Against each other. That gives them the most power. If we find a middle ‘we’, you’ll really see some shit happen!

The reality is, our current government is fine with the other party winning. All that does is give their own party more power for the next four years. Until they come back into power. Then the cycle repeats. Don’t you think if one side had it ‘right’, I mean really ‘right’, they would keep winning each year? But neither do. So, we yo-yo back and forth. Feeling passion one cycle, beat down the next, on top again the next.

Morals matter, well about once every four years, then we go back to forgetting morals matter. Walking by homeless like they’re not there. Laughing a comics tell crude jokes but she’s a woman so it’s okay to say those things. Letting our government drop tens of thousands of drone-bombs on people different from us, killing anyone in our way of a $1.99 gallon of gas.

I know this sounds naive, but I just want my friends back. I want to be able to have a conversation that isn’t filled with hatred and absolutes. I didn’t vote for him because he’s a bad person. I didn’t vote for her because she was an awful liar. I voted for someone I thought was different than the establishment because I truly want a change that benefits us all.

I’m stuck in the middle right now wanting to be a “we”, but surrounded by “us’s” and “them’s”.