Category Archives: Data Analytics

The True Cost of a Bad Hire

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If there is one constant in HR and Recruiting it is the fact that no one will ever agree on how much a bad hire costs an organization!  Never!  It doesn’t matter how much time you put into coming up with some algorithm, how much research to back up your numbers, it’s still going to be 90% subjective/soft numbers at best.

This is the main reason executives in our organizations think the majority of HR/Talent Pros in the world don’t get business!   We come to them with stuff like this:

“We need to reduce turnover because of Engineer who leaves us, costs the company $7,345,876.23!”

Then you go through a 73 slide PowerPoint deck showing how you came up with the calculations all the way down the parking meter expense during the interview, and when you’re done, no one believes you’re even close to an actual number.

The gang over at National Business Research Institute put together a pretty good infographic proving my point – take a look:

NBRI - The Cost of a Bad Hire Infographic

97%+ of the ‘lost’ cost is from “Training” and “Productivity Loss” and those, my friends, are considered very subjective measures in almost all organizations.  What that says is, ‘Oh, Jimmy isn’t working out – fire him – and because he wasn’t working out we lost ‘X’ percent of productivity over any other possible replacement (which in itself is a whole other leap)’.  And, we lost 100% of training we put into Jimmy because he is now not here.  Which again is subjective, since most training isn’t one-on-one, and resources used to train are almost always not used just on one person, etc.

What that says is, ‘Oh, Jimmy isn’t working out – fire him – and because he wasn’t working out we lost ‘X’ percent of productivity over any other possible replacement (which in itself is a whole other leap)’.  And, we lost 100% of training we put into Jimmy because he is now not here.  Which again is subjective, since most training isn’t one-on-one, and resources used to train are almost always not used just on one person, etc.

So, here’s a better way to figure out the cost of a bad hire:

1. Ask your head of finance or accounting what they think it costs? “Ballpark it for me?”  $10K? Sounds great! We’ll use $10K.

2. Use $10K as your cost of bad hires.

Your reality, HR’s Reality, is it really doesn’t matter what the number is.  Only that the powers that be in your organization all agree on the number. Stop wasting your time trying to come up with a better number, just come up with a number that those signing the check agree is probably legit.

#DisruptHR – Failure is the New Black

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I’ve been fairly vocal over how I feel about the concept of welcoming failure into your life. It’s kind of like welcoming heroin into your life. It feels great when you first do it, then it quickly ruins you! Failure is heroin to your mind and confidence!

You are being sold a giant line of bullshit!

You have been told that ‘you just need to fail more’! If you just fail, you’ll find success! Failure is a good thing!

It’s not!!!

You know what happens when you actually fail?  It makes it easier for you to fail again. You’re actually teaching your mind and body how to fail! The way to success is not through continued failure. They way to success is by finding small ways to succeed. Giving your mind and body the pathway, the confidence it needs to succeed big.

Statistically, you are more likely to fail, the more you fail! It’s simple mathematics. Have you heard the statement, “It’s hard to beat a team three times in a row!” This is said in sports a lot after one team beats another team two games in a row. Statistically, it’s actually more likely you’ll beat a team the third time if you beat them twice already, but we so want to believe it’s not true!

Failure + Failure + Failure + Failure = crippling fear that you’ll never get it right for 99.99% of people.

Small success + Small success + Small Success = eventual big success!

It’s how we teach a child to do something new. You don’t teach a child to ride a bike by throwing them down the largest hill on the block and just let go. They’ll crash. They’ll crash again. They’ll crash again. Eventually, they’ll never get back on that bike!

We start small. You get on and I’ll hold and I won’t let go! You go a little ways. You show them that it’s fun. Eventually, you build up to being able to let go, but you make sure it’s by grass, so if they fall, hopefully, they fall into the grass.

Little successes. Lead to big successes.

That’s what my DisruptHR video is all about – check it out!

Failure Is The New Black | Tim Sackett | DisruptHR Talks from DisruptHR on Vimeo.

2016’s Newest Benefit – Baby Sign-on Bonuses!

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According to this USA Today article, the U.S. birthrate is in sharp decline and is at it’s lowest levels in the past 25 years.   Here are probably a few facts you don’t know:

– Projected 2013 birthrate in the U.S. is estimated to be 1.86

– Birthrate needed to maintain a population over a 20 year period is 2.1

Why should this concern you?

There are a number of reasons one might be concerned that you need as many young people as old for the simple fact of having enough young people to take care of your older population.  If you turn that equation upside down (Taiwan 1.1 or Portugal 1.3) you have a society full of older people and not enough young people to fill the jobs needed to keep running your society.

The U.S. already has 3 Million jobs left unfilled because of lack of skilled employees today. Imagine if you now have millions of fewer workers to even choose from, and by the way, skilled workers aren’t coming from other countries because their societies are growing and need them as well.  That is what our country’s employment picture will look like in 2032.  I know for many people right now this sounds very good – because of our high unemployment – but this will be

That is what our country’s employment picture will look like in 2032.  I know for many people right now this sounds very good – because of our high unemployment but this will be an HR/Recruiting nightmare for those young HR/Talent Pros starting out their careers in the next 20 years.

Being the Futurist that I am, I’ve already provided a solution to this problem back in 2011 over at Fistful of Talent, Should You Encourage Your Employees To Have Babies, check it out. Basically, my advice remains the same as U.S. employers we need to create a positive, encouraging environment for our employees, with family-friendly policies that make our employees feel like starting a family is a good thing, and that if they do start a family their job and ability to get a promotion won’t be compromised.  This is not the case as many U.S. employers right now for both men and women in the workforce.

As HR Pros and organizations we tend to think this isn’t our issue.  It will take care of itself.  But as we look at countries with low birthrates the issue doesn’t take care of itself and those countries have a worker crisis going on right now.    We need to change our ways right now. We need to be family friendly employers. We need to, as HR Pros, be concerned and find solutions for our employees around daycare, flexible schedules and other practices that will help our employees with families.   I know it sounds a bit the-sky-is-falling-ish, but the numbers don’t lie we are headed for some of the hardest

I know it sounds a bit the-sky-is-falling-ish, but the numbers don’t lie we are headed for some of the toughest hiring this country has ever seen.

One solution I’ve thought of, that I didn’t bring up in 2011, is baby sign-on bonuses!  We already do it for college students! I think we start doing for babies of our best employees.  I mean if parents can arrange their kid’s marriage, what stops us from arranging their first job?  Nothing! That’s what.  Imagine how happy your employees would be to cash a $20,000 check to help with baby expenses for the simple task of forcing their kid to come to work with your company upon college graduation.  It seems so simple, I’m not quite sure why no one has started this yet!

It seems so simple, I’m not quite sure why no one has started this yet!

In Recruiting, Content Is NOT King!

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Something happened over the past five years. Content marketing, which is a brilliant way to connect with a customer base and build sales, became very fashionable in the recruiting space.  So much so, that I constantly read vendors telling in the trenches Talent Acquisition pros and leaders:

“In Recruiting, content is king!”

No. No, it is not! In recruiting, activity is king.  I think the confusion comes into play with people treating employment branding and recruiting as the same thing. They’re not the same thing. One build’s awareness of who you are and what kind of employer you might be, possibly you can stretch employment branding into awareness of your job openings as well.

Content in employment branding is important if you’re doing content recruitment marketing. Again, you don’t have to do this to do employment branding. Many organizations build their brand without content. If you have a great consumer brand, you are less likely to need content to build your employment brand.

I’m not against producing great content to build your brand, believe me! It can be super helpful, especially if you don’t have a larger consumer brand behind you.

The point is you can be awesome in recruiting and never produce a single piece of content. I see so many TA shops missing this right now. The question is why? Why are TA shops believing that the only way to recruit is to build content and build an audience?

Employer Branding is a huge business right now! Organizations are spending millions of dollars per year to build, maintain and grow their employment brand. For huge organizations, or organizations in highly competitive environments, this is very important. For many organizations, this is a complete waste of time and resources!

The noise in the employment branding space is so loud right now, most organizations are not going to be heard. In that case, why are you spending the resources? You’re doing this because it’s easier than picking up a phone and calling a candidate! That’s recruiting.

Recruiting are the activities you do to hire people for the jobs you have open. Included in those activities are not only candidate attraction but candidate interaction. Candidate interaction, the function of a recruiter interacting with a candidate, might be the most forgotten skill in all of Talent Acquisition.

The skill of interacting with a live person is lost on most talent acquisition shops. Sure you can connect with candidates via email, messaging, text, twitter, Snapchat, etc. Eventually, though, someone has to speak to a live person. Someone has to close this person on coming to work for you. We, the talent acquisition industry, continue to spend less and less time on this side of our business, and it’s showing.

Great recruiting organizations are activity focused and activity driven. Sales funnel. Candidates come in the top, and hires come out the bottom. It’s not difficult. It’s not art. It’s a process. It’s metrics. Teach your recruiters to be able to engage live people on the front side, and you will see a great return on that investment in more hires. No content needed.

 

 

Top Jobs in 2016? Hope you’re good at math!

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Glassdoor released their most recent top 25 paying jobs report in the U.S. and one thing was common in 24 out of the 25 jobs, STEM!That’s right in 24 out of the 25 top paying jobs in the U.S. you better have exceptional, high-level math skills, or be great at science, preferably both, if you don’t mind.

That’s right in 24 out of the 25 top paying jobs in the U.S. you better have exceptional, high-level math skills, or be great at science, preferably both, if you don’t mind!

Here’s a taste of the top 10:

1. Physician
Median Base Salary: $180,000

2. Lawyer
Median Base Salary: $144,500

3. Research & Development Manager
Median Base Salary: $142,120

4. Software Development Manager
Median Base Salary: $132,000

5. Pharmacy Manager
Median Base Salary: $130,000

6. Strategy Manager
Median Base Salary: $130,000

7. Software Architect
Median Base Salary: $128,250

8. Integrated Circuit Designer Engineer
Median Base Salary: $127,500

9. IT Manager
Median Base Salary: $120,000

10. Solutions Architect
Median Base Salary: $120,000

Some things that standout from the list:

– These salaries aren’t really the highest paying jobs in the U.S. We all know of people making way more than $180K.  So, I’m not sure how Glassdoor actually came up this list, besides maybe asking going down to a coffee shop and just asking some folks. Hell, I know at least three people at Glassdoor, myself, who are making more than $180K, and not working in any of these jobs!

– Most people think doctors make way more than $180K. Many do – surgeons for example. Anesthesiologists make way more than $180K. Most specialized medical docs make more than $180K. So, who makes $180K? Your family doc. The one who sees your snotty-faced kid. That’s why there is a shortage of family docs!

– Being a Lawyer is the lone hold out where you don’t have to know math and science and still get a good paying job on the list! Oh, and most sales jobs. We forget to tell kids that, a decent sales person can make more than almost all of these jobs.

So, what does this list tell you?  First, go take the football out of little Johnny’s hands and put a calculator in it! More kids will get money to go to college for their grades, then their athletic prowess. The University of Alabama will pay your kid to go to school for free for having a 32 on their ACT. That is probably easier then getting Nick Saben to come visit. I know, you still have to live in Alabama, but it’s a free education.

As Fast Company points out, you don’t really need to make all that money anyway. $70,000 is the limit you need to be happy, or at least that’s what I keep telling my wife! I don’t think she’s buying that nonsense either!

Google Announced They Discovered The Secret to a Great Workplace!

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Over the past five years, I’ve been outspoken over my dislike of Google HR.  But I have to give them credit now, because they spent years of work, really digging into the concept of teams and employees to figure out how we, HR Pros, help our organizations make the whole thing work. Kudos to you Google!

Here’s what they found:

“The tech giant charged a team to find out. The project, known as Project Aristotle, took several years, and included interviews with hundreds of employees and analysis of data about the people on more than 100 active teams at the company. The Googlers looked hard to find a magic formula—the perfect mix of individuals necessary to form a stellar team—but it wasn’t that simple. “We were dead wrong,” the company said.

 Google’s data-driven approach ended up highlighting what leaders in the business world have known for a while; the best teams respect one another’s emotions and are mindful that all members should contribute to the conversation equally. It has less to do with who is in a team, and more with how a team’s members interact with one another…
Matt Sakaguchi, a midlevel manager at Google, was keen to put Project Aristotle’s findings into practice. He told Charles Duhigg of The New York Times how he took his team off-site to open up about his cancer diagnosis. His colleagues were initially silent, but then began sharing their own personal stories.
At the heart of Sakaguchi’s strategy, and Google’s findings, is the concept of “psychological safety,” a model of teamwork in which members have a shared belief that it is safe to take risks and share a range of ideas without the fear of being humiliated…
…In short. Just be nice.”
Wait, what?
Be nice.  That’s what Google found after ‘years’ of work? Be nice!?
You got that HR pros? Just tell your employees to be nice.  Google has it figured out. You can stop working now. Just listen to Google. They spent three exhausting years of research on this.  RELAX. They know what they’re doing. They’re Google. We all just want to be Google.
Mrs. Wilson was my kindergarten teacher. She was this young, beautiful black woman who seemed to be about 7 feet tall. To be fair, I was five and three feet tall, so she might have only been around 5’7″. Anyway, in 1975, she told me something very similar. In fact, I think she used those exact same words, “Be nice, Tim.”
Maybe Google should have just hired Mrs. Wilson, and saved all that time and work. Apparently, she also figured out the secret to a great workplace!

Hands-Free HR – HR Self Service for the Next Generation!

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Remember the first time you got to use Hands-Free with your smartphone? For those of us who live on our phone, it was life changing! Wait, you mean I can drive, I can cook, I can workout and still get this call done? Yes, I want that. No, wait, I need that!

Now, imagine you could do that with your employees. No, not talk to them more. But be able to give them all they need, without being able to talk to them, or at least, eliminate the day-to-day mundane HR needs that all of our employees have.

HR Self Service has been around now for two decades. The difference today is Hands-Free HR at the most dynamic companies is being delivered in a way that does what we all hoped for when it was first launched. The problem with traditional HR self-service models is that HR still does most of the heavy lifting. Hands-Free HR puts the knowledge and the skill in the hands of the employees and allows HR to focus on strategies that make your business successful.

FREE Webinar Alert!

Marjorie Borsiquot (Assistant Vice President of Business Process Integration for Georgetown University) and I will discuss how the best organizations today are delivering a hands-free HR experience to their employees. The tools and processes they use to make this successful, and feedback from those on the front line making it work today.

Click here to register for this SHRM Webinar, sponsored by the great folks at PeopleDoc!

I’m really excited to dig into the details of Georgetown University’s transformation of their HR service delivery. For those of you that work in complex organizations like public education, healthcare, and multi-unit delivery, this will be very insightful!

Look forward to you all joining me on Wednesday, February 10th at Noon EST!

T3 – Modern Survey

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This week on T3 I review employee engagement and talent analytics technology Modern Survey. I’ve been aware of Modern Survey for the past five years or so, as a great employee engagement survey technology. I’m glad I took a recent look because they’ve grown up over the past few years into a really advanced human capital measurement technology.

They still do employee engagement really well, but they also do performance, onboarding, exit interviewing, 360s and a really powerful analytics dashboard that will fully integrate with your enterprise level ATS, HRIS and CRM HR systems. It’s a content agnostic system as well, which basically means if you have a survey tool you currently use, they can integrate that into their platform.

Modern Survey’s platform has seven different modules that you can mix and match with: their business intelligence tool “Heat”, mThrive for employee engagement, m360, mPerformance, mExit, mSpark for onboarding and mReasearch which manages all of the content on the platform.

5 Things I really like about Modern Survey: 

1. Modern Survey has taken continuous measurement of your employees to the next level with employee engagement pulse surveys, onboarding and exit surveys all integrated into your existing HRM systems.

2. mSpark their onboarding tool is a game changer. Not only does HR find out about potential trouble early on, the predictive analytics basically tell you who is going to turn before they even know themselves!

3. Modern Survey is a true business intelligence tool for HR.  Some vendors are beginning to sell this out in the industry, but none have it figured out on the HR side of the business like Modern has currently. Their HIPO and High Performance 9 box analytics is something you need to see. Perfect to use for workforce and succession planning.

4. Modern Survey goes beyond just giving you your own data and has integrated great benchmark analytics into their platform to give your HR team the decision-making tools it needs.

5. Modern Survey goes one step past most technology vendors and gives you the knowledge you need to go with the tools. They just don’t provide software, but they also provide the consulting you need to kick off a major project like implementing new employee engagement surveying!

Modern Survey’s President is Don MacPherson.  He’s one of the good guys, Minnesota born and bred.  Rides a white horse type of guy. Sure he needs to make money, but I truly think he would rather put out a great product then make money! Because of this, you won’t find a better vendor to work for.

Modern Survey is blowing up right now and has taken on a number of large enterprise clients, but they started in the mid-market space.  Their sweet spot is going to be 1,000 employees and above.  They work across all industries: retail, healthcare, manufacturing, entertainment, etc.  Well worth your time to check them and demo!

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

When Should You Retire?

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We tend to believe retirement is an age thing. Well, once you turn 65, it’s time to retire! Do you know where ’65’ actually came from? Most HR pros will probably guess it, it’s when America instituted social security insurance back in 1935.

The U.S. Government, in 1935, didn’t even use any science to determine 65 years old.  At the time, the national railroad pension retirement age was 65, and about half the state pensions were the same (the other half were 70), so 65 years old was chosen. Way less red tape back in 1935! Can you imagine the government trying to make that decision today!?

So, you turn 65 and you’re supposed to retire. In 1935, that probably was fairly accurate. The actual life expectancy in 1935 was only 61! So, we built social security knowing most people would not live to receive it. Today, life expectancy is around 79 years old!  As you can imagine, 65 years old is no longer a realistic retirement age.

I’m currently 45 years old.  It’s my belief that I have about 25 years left to work and save for my retirement. I’m assuming I’ll work until I’m at least 70.  70 years old today doesn’t seem like 70 years old when I was a kid.  My parents are now in their 70’s and they don’t seem ‘old’. I mean they’re old, but not like they can’t do anything old.  Both could still easily work and produce great work if they wanted to.

All of this should change how we look at succession planning in our organizations, but we still use 65 as the ‘expiration’ date of when someone no longer seems to have value. “Oh, you know Tim, he’s going to be 65 next year, I’m amazed he can still stay awake all day!”

65 in 2015, is not the same 65 we saw in 1935!  The health and physical wellbeing of those two people are worlds apart in difference!

Succession Planning needs to catch up with this difference.  HR needs to lead this charge.  Part of this change starts with us changing the language and numbers we use when describing retirement.  Regular retirement age needs to start at 70 years old, at a minimum and move up from there.  We need to eliminate 65 years old from everything we write and speak.  It’s just no longer valid or accurate.

Once we push this date out, we can then start to plan much more accurately to what our organizational needs will truly be.  Next, we need to have frank conversations with those who we believe are reaching an age where they want to retire and have real conversations.  HR pros have been failing at this for years!  It’s actually not against the law to ask an employee what their retirement plan is! It should be against the law that you don’t ask this question!

If an employee knows that you are working with them to reach their goals, and you let that employee know that ‘hey, we need you for another five years’, most will actually happily stay on the additional time.  My Dad worked in a professional job until he was 72, and they wanted him longer! Don’t ever underestimate the power of being wanted. As we age, that desire to be wanted just increases!

So, I’ll ask you. What age do you think someone should retire?

T3 – @Phenom_People

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This week I get to review Talent Relationship Marketing (TRM) technology Phenom People (who apparently, like @Kris_Dunn, think it’s good to put an underscore in your Twitter name!). So, what’s TRM? TRM is a new entry into the Talent Acquisition/HR technology space. It’s basically, the technology that you use from visitor to applicant, whereas your ATS is applicant to hire.

Phenom People, formally iMonentous, has its roots in mobile recruiting. Back in 2010 when they started it was under this idea that ‘hey, looks like a lot of people might use these smartphones to search for jobs!’ Turns out, they were really right! Phenom People has grown into a technology that attempts to make the job search more like online shopping. Think Amazon, but for searching and applying for a job on your own career site.

Online shopping has evolved to a point where it seems like the site you’re visiting knows what you want before you do. Phenom People does the same thing for your candidates! It tracks everything about a job seeker who enters your career site. Where did they come from, what did they look at, where did they go, etc. Tracking over 400 data points in the process. Phenom can tell you an amazing amount of information about the people coming to your site, and give you the inside track to source and engage those people again, even if they don’t apply!

5 Things I really like about Phenom People: 

1. Look Ahead Search. You know when you start typing in Amazon and auto fills in what you think you’re searching for? Phenom does that for your job seekers. You might not think this is a big deal until you use it and see the difference as a job seeker. It’s awesome.

2. Careers Page turned Shopping experience.  Job seeker personalization is very 2016!  If you ever shopped online, especially at Amazon or similar sites, you can kind of picture what Phenom People will do your career site. Jobs, for sure. But, also, personalized curated content, designed specifically to the user, even when you don’t know that user. Reviews, through a great API integration with Glassdoor, where the job seeker never leaves your site, but can still do their research!

3. Analytics that will scare you! In a totally good way! It’s unbelievable what Phenom People can tell you about each and every person who visits your site, plus the information they can give you to re-engage those people who never even gave you one piece of information! It’s big brother for talent acquisition, and you’re going to be amazed!

4. A complete history of every job seeker who visits your site.  Sourcing and recruiting is tough. It gets much easier when you’re given a complete history of what, where and how the job seeker found you, how long they stayed on pages, what content they engaged with, etc. Stuff the job seeker use to believe was secret, you now know, and can use to build a great selling strategy to get them interested in your organization and jobs!

5. The upside is very impressive! Many of the technologies I review are great, but they lack capacity to grow into anything else than what they really are. That’s fine, if they’re good at what they do and ROI makes sense. Phenom People is just scratching the service of what they can do with the information and data they have on your job seekers! Imagine a day, soon, where you can go to your executives and show them exactly how many of your competitors workers came to your site, how many applied, how many you hired, how many you can still go after! That’s a game changer. That’s when Talent Acquisition becomes a competitive advantage. When TA can systematically weaken your competition!

Phenom People works in the mid to enterprise level market. 50 jobs/around 1,000 employees is probably the low end of where they’ll get enough data to make a difference for your organization. They won’t replace your ATS, this is pre-ATS stuff, but they work in conjunction with your ATS. Great technology. Take a look, well worth the demo!

 

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