Category Archives: Diversity

Former HR Lady Makes It Big!

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Don’t know how many of you saw the press release yesterday, but General Motors announced their new CEO would be former GM HR Lady, Mary Barra. Let’s not forget, she will also be the first women to run a major automotive company in history!  From the article CNN/Money:

“Since August, Barra has served as executive vice president of global product development and global purchasing and supply chain, according to her company bio.

For more than two years before that, she was an executive VP focusing on international design, engineering, program management and quality. Earlier, she was vice president of global human resources. Barra started at GM when she was 18 as part of a cooperative education program.

She was paid $4.9 million in total compensation last year, according to corporate documents. That includes a salary of $750,000.”

Bam! It pays to be in HR!

“Women represent a minority presence in the auto industry, comprising 21% of the total workforce. According to federal data, 39,000 of the industry’s 185,200 employees were women. And women hold about 3.3 million of 12 million jobs in the broader manufacturing sector, or about 27%.

Jared Rowe, president of auto product researcher Kelley Blue Book, said that it’s smart for an automaker to put a woman in charge with a background in product development, considering that “the bulk of the buying decisions are actually made by women, when it comes to purchasing vehicles.”

He also said that Barra’s long history with GM is vital to the company’s leadership.”

I would say GM is smart in deed to hire a women to run the company, but in reality Wall Street will ultimately be the judge on her performance.  That’s the way it goes with large publicly traded companies.  I do feel, growing up in Michigan, currently working and living in Michigan, and my company being a supplier to GM, this is not your parent’s and grandparent’s GM!  The auto industry is an ‘old boys’ network for sure, and GM making the courageous decision to hire a female as CEO, definitely speaks to a broader change in our society.

When people think of Michigan, they think of a broken Detroit and of a broken auto industry.  For those of us who live in Michigan, we are seeing something very different.  The auto industry is strong, and so many companies are hiring in all sectors.  The recession hit us hard.  It taught us a ton.  GM’s failure was a huge part of that.  If you don’t think GM learned anything from it, this hiring should at least be symbolic to show the world it is a different company. One that, while not perfect, is striving to be better.

I’m In Love With Old Employees

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Re-run Friday, this post originally ran in December 2011.  My Dad is now 72, still working, still letting people know what he thinks unfiltered.  I’m hoping he’ll finally retire in the coming months, but I’m doubtful that will happen!  Enjoy.

I’ve recently got to spend some time with my Dad – he’s 70.  I use to think 70 was really old, like let me help feed you that oatmeal old.  My Dad doesn’t seem 70, or look 70, I guess it’s somewhat true – 70 is the new 60.  Here’s what is awesome, though, 70 in work years – is still 70!  When you are working in a professional role at 70, pretty much you’re the oldest person sitting at the meeting.  You know where the bodies are buried, who dug the hole and who has been searching for the bodies ever since.  My Dad works in a professional role – they keep paying him to show up, so he keeps showing up – he’s probably pretty damn tired of answering the question – “So, when you going to retire?”

Lately, he’s been sharing some great work stories with me – from the perspective of being 70 and already collecting full social security. This is what is completely AWESOME about being 70 and still working – you don’t give a sh*t about office politics!

When you know that you could retire at any minute, and you’re comfortable with that – a freedom comes over you that most people don’t have in your organization.  When your boss is 40ish – the same age as your kids – and you’ve got 30 years of work war stories and experience on them – you tend to tell it like it is, when no one else will.  When the CEO says he just wants to hear it like it is – to tend to say it like it is – even when your boss and his boss are trying to duck out of the room or kick you under the table – because they don’t want the CEO to know what “it’s” really like.

It’s Awesome to be Old and be at Work!

To often leadership tends to discount older workers in the twilight of their career – “Oh, that’s just crazy old Guss – don’t pay attention to him – he still thinks we can get great customer service by talking to people face-to-face!”  (the group all laughs loudly, while checking their smart phones for the latest customer service numbers of the electronic dashboard)  We believe that their “sage old advice” has no merit.  In reality we hate the fact that the older worker tends to cut through our political B.S. and tell us what we really don’t want to hear – the painful truth of why we are failing.

Sure many of our older workers could deliver their feedback in a better way, coat it with a little sugar, make it easier to go down.  But, most of the time they don’t.  They just throw it on the table, like a grenade, and watch the fallout as executives start tripping over their spreadsheets trying to explain why they’ve had declining sales for 12 straight quarters, but how they should still be eligible for their performance bonuses.

Look, the next time you hear one of your old workers start to speak – stop – listen – don’t judge.  They aren’t trying to get a promotion, or a raise – realize they probably don’t even need to show up any longer.  What they are saying comes from the heart, comes from years of experience, comes from the fact they have reached a point in their life where they only want to leave a legacy of something they can be proud of.  Your organization can truly benefit from it – but only if you open yourself up to hear it.

HR’s Guide To White People

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Rerun Friday – this post originally ran in December 2011 and was read by 14 people. Enjoy…

I had a conversation this past week with an author looking for a quote from me on some diversity topics, and since I’m in HR, well, of course I’m finely suited to talk diversity.  Here’s what I found funny, though, about the whole experience – I found myself thinking less about coming up with some profound wisdom to share with the masses, and more about making sure I don’t come across like some Grand Master of the KKK.  This is when it hit me – HR doesn’t get White People!  You know – guys like me – white – male – 40ish; I’m like a Purple Squirrel in HR!  I mean in HR we are all about diversity. Diversity is what we do, so we live it, we hire it, we are IT!

But, I get it.  I’m fine walking this lonely road within HR and being a white male.  It’s what HR is all about, right?  Diversity!  And what says Diversity more than a white male 40ish short dude, in HR – I know crazy right!?  It’s like your mom in IT pumping out JAVA code – it just doesn’t fit.  So, as usual, I’m here to help – so I give to you this holiday season my first gift:

HR’s Guide To White People:

1. Passive-Aggressive:  It’s critical that you understand that white people are passive-aggressive.  We like to get our way, but we don’t want to get our hands dirty.  We aren’t going to get up-all-in-your face, we will subtly torture you until you do it our way.

2. Throwing Ourselves On The Sword:  White people like to feel bad, we love tragedy – but in a good way – well the best way you can take a tragedy!  It makes us feel good inside knowing it’s going to be bad, and might get worse.  It allows us to complain and have lower expectations.

3. We Want To Be Hip:  White people desperately want to be hip, but we can’t figure out that whole – Nigga v. Nigger thing – so we give up – see points 1 and 2 above.  We listen to hip-hop and rap, but only by ourselves, and we label it “urban” on our iPod lists so not to offend.

4. We like to buy really expensive cheap crap if it helps animals or kids: Stop it, don’t judge – but I would definitely step over 3 homeless people to get a new pair of Tom’s! But not four homeless people, I have emotional limits, and short legs. Your welcome poor kid who just got a new pair of shoes – that makes me feel so good inside!

5.  Snow Sports: White people like snow sports. You don’t have to be real athletic, and you need a bunch of money to do it – so it fits us pretty well.  Stop having conventions in warm places – how about a freaking convention in Breckenridge or Vail every once in a while, you racist convention planners!

6. Management: White people don’t really like management – don’t get me wrong – we want to be management, just so we are clear.  We just don’t want somebody managing us.

7. Leadership: Yes, this is different than management. Let’s face it, white people love to cheer-lead and nothing says cheerleader, motivation and Tony Robbins like Leadership!  Give me a 6 set series of DVD’s and a book on tape and get out of my way!

8. Diversity: See no. 3, somehow we think that supporting diversity will get us a best friend who is black, Hispanic or Asian – thus make us so much more hipper than those white people who are to scared to speak to non-white people.

9. Awareness: White people love to be Aware!  Aware of your feelings, aware of the situation in north Africa, aware of just about anything – it makes us feel important.

10. Being An Expert on YOUR culture: Since white people aren’t completely thrilled about their own culture, we love being an expert about YOUR culture.  We will travel to your country, we will learn your language, we will take on your religion. It helps cleanse our soul for past digressions.

Bonus Guide to White People likes: Coffee, Organic Food, Gifted Children, Hating Their Parents, Wine, Microbrews, Farmer’s Markets, 80s Nights and Mos Def.

Use these insights wisely to create an environment your white people will feel comfortable and welcomed in.  Now I’m off to listen to PBS and drink an $8 bottle of water.

Pity Hires

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Some of the best business interactions I have each week are on the back channel with the gang over at Fistful of Talent.  It usually starts with one of our tribe asking the rest of us a question, and quickly spirals out of control.  Almost every time someone will say “this email string should be a blog post”.  Almost 100% it’s not, because the snark level is Defcon 1!  The concept of “Pity Hire” came from one of these recent interactions and I’ll give credit to the brilliant Paul Hebert (original FOT member and if you need an expert on rewards and recognition, and almost anything else, he’s your dude!).

The conversation actually started around “hiring pretty“, which I’m a huge fan of and have written about it several times.  It’s my belief that over hundreds of years, genetics has and will continue to build better hires.  Hires that are more attractive, taller, etc.  It’s just simple science and human behavior interacting.  I won’t go into detail here, you can read my previous post to get the background.  Let’s just say smart powerful rich men, get pick of women. They have kids. Better healthcare, nutrition, family wealth, access and education, lead to the cycle starting all over again. Eventually, pretty people are not just pretty, they are also smarter.  Looks at our business and political leaders for the most part – usually pretty people.

So, it’s not really that hard to then make the jump to the fact that all of us really like to hire pretty people.  Like it!  We actually love it!  Therein lies the problem.  There are only so many pretty hires to go around, and let’s face it, not all pretty people are genetically superior!  This gets us to Pity Hires.  A Pity Hire is a hire you make of someone out of shear pity for them.  They might not be so good looking, or smart, or they come from circumstances that are less than ideal.  So that you can identify and help stop this kind of hiring I wanted to list out the types of Pity Hires we tend to make:

Pity Hire Types —

Second Place Hire:  The second place pity hire is the hire you make when you someone doesn’t get hired initially because you actually had a really beautiful person to hire.  The second place hire was probably a better fit, but not as ascetically pleasing.  You find another lower level position, at lower pay, and offer that to them.  You feel bad, so you give them a lessor job.

Crappy Situation Hire: The crappy situation hire happens when you interview someone who is in, or has went through recently, a crappy situation. Newly divorced and the spouse left them for a younger, more beautiful person (happens to both males and females).  The boss from their old job, they were having an affair with, found a new younger, more attractive admin to sleep with.  Things like that – crappy situations.

Recent Breakup Hire: They were fired from their last job, when they were let go through a layoff where their past company was getting rid of the less attractive people.  You feel bad they had to go through those situations, so you hire them for your job.

No One Will Give Me My First Job Hire:  One of the most common Pity Hires is the entry level hire.  Many of us have given out this hire in our careers.  Entry level candidate, got some worthless degree in something like “Historical Urban Anthropology” and can’t figure out why no one will hire them!  They’re not good looking enough to get a job like a normal person, so you hire them.

 Pity hires aren’t necessarily bad hires.  It’s really a kind of HR charity.  We do them for friends kids, and favors for old co-workers.  They usually don’t work out well, but we can compartmentalize them for what they are, Pity Hires.  As I write this I’m wondering if we might have just come up on the next great Recruiting Metric for 2014!  Can you imagine going to your executive team — “Well, we lost 25 hires last year, but we aren’t counting 5 of those losses, they were Pity Hires!”

 

 

To Haze or Not to Haze at Work

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If you follow sports, especially NFL football, you haven’t been able to get away from the nonstop coverage of the hazing issue that took place with the Miami Dolphins between two of their offensive lineman. Long story short, veteran offensive lineman, who is white, decides rookie offensive lineman, who is black, isn’t being man enough (whatever that means).  So, veteran begins hazing him to get him tougher by leaving racist voice mails, threatening the rookie’s family, trying to force him to pay for $30,000 dinners.  This Miami Dolphin veteran feels this is normal NFL rookie hazing behavior, which usually includes carrying a veteran’s luggage at away games, carrying shoulder pads off practice field, maybe buying some donuts for morning meetings, or picking up some pizzas for lunch.  The rookie he decided to haze was a Stanford graduate, with parents who are Harvard graduates. Where do you think this is going?

The question comes up constantly in workplaces, of which the NFL should be considered a workplace, shouldn’t ‘some’ hazing be allowed?  It’s easy for all of us to say “NO!”   It’s hard for us to know that in many, many instances our positive, not negative, workplace culture is built on many forms of hazing.  Phil Knight, the Godfather of Nike, wrote in his own autobiography, Just Do It, that his own sales reps, called ‘Ekins’ (Nike backwards), all got Nike swoosh tattoos on their calf when they were hired.  It wasn’t required, but if you wanted to ‘fit’ in, you got it.  Hazing at one of the largest, most successful companies in the world.

At my own company we tell new recruiters that they have to use their first commission check to buy everyone a round of drinks.  Knowing that this check will never cover the amount of what that tab will be.  (For the record – we just threaten this and don’t tell them the truth, but I always get the tab!) Hazing, all the same.

I’m sure, as you read this, that you are thinking of things that happen in your own company.  “We decorate peoples cubes for their birthdays” or “We make the new employee stand up in a meeting and share their most embarrassing moment” or “We don’t let the new employees know when it’s jean’s day”.  All harmless, all hazing.

Show it comes down to one small question: Should you allow hazing or not?

Or do you just call it something different like, cultural norms, team building, trust exercises, initiation, rite of passage, a test of loyalty, etc.?

I wonder how many of us admonish this veteran Miami Dolphin player (who for the record isn’t a choir boy) as a monster, while we turn a blind-eye to what is going on in our organizations.  What is happening in Miami, and I’m sure many sports franchises, fraternities/sororities, college locker rooms, etc., is very similar to what is happening in the hallways of your office building, on the floor of your manufacturing facility, sales bullpen and cube farm.

We allow hazing because it has become a societal norm.  “Well, I went through it, so should everyone else that comes after me.”  “Getting the tattoo is part of ‘who’ we are.”  “She’s ‘one’ of us, she gets it.”  This is what a NFL player was doing.  He was doing what he was taught to do by those before him.  By the culture he was working in.  No controls.  Just culture.  The funny thing about culture is that ‘it’ happens.  Whether we like it or not, our culture happens.

How to Talk To Your Young Snot-Nosed Boss

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This isn’t necessarily a unique phenomenon in our society, but as the Baby Boomers continue to age and many taking on non-leader roles within our organizations, these older employees are now finding themselves reporting to bosses much younger than themselves.  Many times these younger bosses have a lot less experience doing the job, make common new leader mistakes and flat out don’t know how to communicate with subordinates that are as old as their parents and/or grandparents!

So, what can an older employee do to help out this situation?

There was a great example of this recently with the payment startup company Clinkle who was founded by 22 year old Lucas Dulpan.  Dulpan needed an experienced COO and found it in former Netflix CFO and much older, Barry McCarty.  The fact of the matter is, Barry has much more knowledge and experience running this type of company than Lucas.  So, how do you deal with is obvious situation? From Jason Del Ray at Business Insider, here’s how McCarty describes it:

Jason Del Rey: What does your role entail?

Barry McCarthy: Well, Lucas is the CEO. I work for him. I want to be unambiguously clear about that. He’ll continue to focus on product and engineering. My primary focus will be everything else.

Jason Del Rey: Do you believe Lucas can be the long-term CEO of a giant payments company?

Barry McCarthy: Absolutely. And if he’s not, then I will feel like I have not served him as well as I could have.

BAM! That my friends is called Servant Leadership.  You support the leader, in this case Lucas, by serving that person with all the positive intent and direction that you can humanly provide.  What McCarty understands, because of his vast experience, is that it’s not about him getting noticed. Those who know the industry will know that he did his job exceptionally, and that is what really matters.

What to know how to best get along with your younger boss?  Stop trying to do their job, and start helping them do their job.  Lift them up, make them the star and everyone will see what you did to make that happen.  You win. Your boss wins.  The organization wins.  Isn’t that really the goal?

It’s Hard To Judge People

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I was out walking with my wife recently (that’s what middle aged suburban people do, we walk, it makes us feel like we are less lazy and it gets us away from the kids so we can talk grown up) and she made this statement in a perfect innocent way:

“It’s really hard to judge people.”

She said this to ‘me’!  I start laughing.  She realized what she said and started laughing.

It’s actually really, really easy to judge people!  I’m in HR and Recruiting, I’ve made a career out of judging people.

Candidate comes in with a tattoo on their face and immediately we think – prison, drugs, poor decision making, etc. We instantly judge.  It’s not that face-tattoo candidate can’t surprise us and be engaging and brilliant, etc. But before we even get to that point, we judge.  I know, I know, you don’t judge, it’s just me — sorry for lumping you in with ‘me’!

What my wife was saying was correct.  It’s really hard to judge someone based on how little we actually know them.  People judge me all the time on my poor grammar skills.  I actually met a woman recently at the HR Tech Conference who said she knew me, use to read my stuff, but stopped because of my poor grammar in my writing.  We got to spend some time talking and she said she would begin reading again, that she had judged me too harshly and because I made errors in my writing assumed I wasn’t that intelligent.  I told her she was actually correct, I’m not intelligent, but that I have consciously not fixed my errors in writing (clearly at this point I could have hired an editor – I probably have at least one offer per month!) — the errors are my face tattoo.

If you can’t see beyond my errors, we probably won’t be friends.  I’m not ‘writing errors, poor grammar guy”.  If you judge me as that, you’re missing out on some cool stuff and ideas I write about.

As a hiring manager and HR Pro, if you can’t see beyond someone’s errors, you’re woefully inept at your job.  We all have ‘opportunities’ but apparently if you’re a candidate you don’t, you have to be perfect.  I run into hiring managers and HR Pros who will constantly tell me, “we’re selective”, “we’re picky”, etc.  No you’re not.  What you are is unclear about what and who it is that is successful in your environment.  No one working for you now is perfect.  So, why do you look for perfect in a candidate?  Because it’s natural to judge against your internal norm.

The problem with selection isn’t that is too hard to judge, the problem is that it’s way too easy to judge.  The next time you sit down in front of a candidate try and determine what you’ve already judge them on.  It’s a fun exercise. Before they even say a word.  Have the hiring managers interviewing them send you their judgements before the interview.  We all do it.  Then, flip the script, and have your hiring managers show up to an interview ‘blind’. No resume beforehand, just them and a candidate face-to-face.  It’s fun to see how they react and what they ask them without a resume, and how they judge them after.  It’s so easy to judge, and those judgements shape our decision making, even before we know it!

 

The Slowest Generation Ever!

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Here’s a quick little experiment to take in your office or department:

1.     Rank everyone by performance – first to worst.

2.    Rank everyone by how fast they can actually run.

3.    Check for correlation.

I’ll be honest, I have no idea if there is any correlation, it’s just a feeling I have.  People who tend to move fast, tend to be higher performers in my 20 years of HR Experience.  Also, there was a recent article out in the Wall Street Journal that examined how 25-35 year olds have been slowing down in endurance races as compared to prior generations at the same age.  From the article:

“They’re just not very fast. “There’s not as many super-competitive athletes today as when the baby boomers were in their 20s and 30s,” said Ryan Lamppa, spokesman for Running USA, an industry-funded research group. While noting the health benefits that endurance racing confers regardless of pace, Lamppa—a 54-year-old competitive runner—said, “Many new runners come from a mind-set where everyone gets a medal and it’s good enough just to finish.”

Now, a generational battle is raging in endurance athletics. Old-timers are suggesting that performance-related apathy among young amateur athletes helps explain why America hasn’t won an Olympic marathon medal since 2004.

Of the two Americans who won marathon medals that year, one—Deena Kastor, who is now 40—was the top finishing American woman at the marathon World Championships in Moscow last month. The other—38-year-old Meb Keflezighi—was the top American male finisher at the London Olympics marathon last year. Hunter Kemper, the 37-year-old winner of last month’s Chicago Triathlon, remains arguably America’s top triathlete as he aims for his fifth Olympics.”

So, how did your experiment work out in your office?  Does speed correlate to higher performance? If so, are your youngest employees faster or slower than other generations in your workplace?  Competitiveness, and incoming generations of kids who are all use to just ‘participating’ versus ‘winning’ might also have an impact to this as well.  This lack of competitiveness probably has more of an impact than anyone really understands.  More from WSJ:

“After finishing last month’s Virginia Beach half marathon in the top 2% of the 50-54 age group, Brendan Reilly was shocked to find he’d made the top 1% of the overall field—despite running 27 minutes slower than the personal best he’d set more than two decades earlier.

“I wasn’t thrilled,” said Reilly, a sports agent in Boulder, Colo., adding that “races are turning into parades.”

Is your workplace a race or a parade? 

3 Things That Gurantee Career Sucess!

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I’ve been given the honor to speak to some upcoming graduates at a prestigious university about what it takes to have a successful and sustained career.  Now comes the hard part!  What do I tell these kids!?  My first question to the person who asked me to come speak was, “Have you ever read anything I’ve written?”  She said yes, but I have a feeling she was lying as she frantically Googled “Tim Sackett” and tried to actually read something I’ve written.  Next she dropped the, “we don’t have much money, we can pay you”, which in speaking circles means, this is a one-time gig, so let’s have some fun with it!

I really took some time to think about all those great traits you need to have in having a long term successful career.  Great work ethic, ability to learn new concepts quickly, being adaptable, being disciplined, high attention to detail, getting along with others, having high Emotional Intelligence, finding purpose in your daily work, Perseverance, being trustworthy, taking initiative, managing up, being open minded, a change agent, a savvy networker, of course intellectual fire power, passion for what you do, someone of high morals and values, empathetic, willingness to fail, willingness to succeed, high internal motivation, ability to gain alignment, focused, positive accountability, follow-up skills, creative, pragmatic, ability to gain buy-in, ability to prioritize, works well in a team, works well alone, political organizational savvy, telling it like it is, effective problem solver, being self aware, effective decision maker, your ability to influence, learning agility, technical savvy, being proactive, being a great listener, being a great presenter, being optimistic, being committed, goal setting, expert communicator, managing conflict and making a great cup of coffee are all fantastic traits!  But how could I choose only 3.  That was my mission.  Give the kids 3 things that would guarantee their success in their chosen career paths.

I knew right away there were a few traits I wouldn’t choose, primarily because I don’t have them and, well, look at me, I have a blog, which means I must be successful.  You don’t need these traits to be successful:

1. Good Grammar. Only old HR ladies and copy editors care about grammar.  Once you get past having no mistakes on your resume, you’re home free the rest of your career — unless you want to be a paid writer.

2. Trigonometry.  No one needs Trig really, it’s just a public school torture device to keep kids in check.  Unless you want to be a rocket scientist, Trig is not a trait you need for a successful career.

That’s is really the only traits I could think of that weren’t important to your long term success of your career.

Then it hit me, after 20 years in the HR and Talent Acquisition fields, I knew!  There are 3 things that can guarantee you long term career success.  Here they are in order of importance:

1. Beauty.

2. Family Wealth.

3. DNA.

The first one was really a no-brainer!  Beautiful people always have jobs or job prospects. Let’s face it, we all love hiring beautiful people!  In fact the only reason you have ugly people working for you is there wasn’t a beautiful candidate.  The positive piece of this for the kids is that with enough money you can change your outward appearance and increase your chances for success!

Family wealth was fairly easy as well.  If you come from a wealthy family you can be a complete tool and still have lifetime employment and career upward mobility.  The rich get richer, and so do their kids.  Nothing says great hirer like your CEO telling you to hire so-and-so because he plays golf with me. Opportunities are rare, unless you’re wealthy.

The prospect of coming from the ‘right’ genes having an impact on long term career success intrigues me.  The reality of it is, the only way to have a sustained successful career if you have sustained long term health — that’s your DNA baby!  Some people never pick up a cigarette and die of lung cancer at 53.  Some people smoke 2 packs a day for 60 years and die of old age at 90.  You can’t teach DNA!

I can’t wait to share these with the kids!

 

 

Being a Minority Can Cost You in your Career

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Surprise, Surprise, Surprise!

This just in from the very smart folks at NPR – being a minority might have a negative effect on your career! Really!?

Actually, NPR presents a social science study from the National Bureau of Economic Research that does a very good job explaining what we all already know – but want to easily push off as racism.  From the article:

Economists have long noted that multiple companies in an industry often congregate in an area — think of movie companies in Hollywood or investment bankers on Wall Street — and observed that these firms become more profitable. Indeed, this may be one reason why an up-and-coming tech company would want to locate in Silicon Valley, rather than in Tennessee, where costs are far cheaper.

But why do companies that congregate become more profitable? It has to do, Ananat says, with the fact that when a number of companies involved in similar work are concentrated in one area, they effectively create an ecosystem where ideas and refinements can spread easily from one company to the next, and increase productivity overall.

“It’s stuff in the ether — you know, these tips that get communicated,” Ananat says. “For any given job, it’s going to be specific to that job. That’s why they are so hard to identify and so valuable. We say, ‘Oh, you’re not doing that quite right. Do it just this way instead.’ “

What does all of this have to do with the racial wage gap? Much of this valuable information that gets transmitted and shared in the ecosystem happens in informal or social settings — over lunch, or a beer after work, or even at church on Sunday. Those social settings tend to be segregated, with whites tending to spend time with whites and blacks with blacks. (The next time you are in an office cafeteria, notice who sits next to whom at lunch.) In a world where ethnic groups cluster together, those in the minority are less likely to share and benefit from spillover effects in the ecosystem and are therefore less likely to learn early on about important company developments or technological innovations.

“People of the same race are much more likely to have conversations where they share ideas,” she says. “The fact is you just talk more about everything with people who you feel more comfortable with than with people you feel less comfortable with. And we know that one of the big predictors of who you feel comfortable with is whether you are of the same ethnicity.”

Ananat explains the findings with a hypothetical example: “Say there are 1,000 black engineers in Silicon Valley, compared to 20 in Topeka, and there are 10,000 total engineers in Silicon Valley, compared to 500 in Topeka. Then blacks make up 10 percent of engineers in Silicon Valley, compared to 4 percent in Topeka.”

“A black engineer in Silicon Valley has 980 more black engineers to get spillovers from than does a black engineer in Topeka,” she writes in an email. “Meanwhile, a white engineer in Silicon Valley has 8,500 more white engineers to benefit from than a white engineer in Topeka. Thus, while both white and black engineers’ wages will be higher in Silicon Valley than in Topeka, the white engineer’s wages will increase more than the black engineer’s do — in effect, the white engineer is living in a much bigger city (of engineers) than the black engineer is, if only people within one’s own race matter for urban spillovers.”

How do companies take advantage of this knowledge?  The study went on to explain that certain individuals in companies cross the racial divide (they call them ‘code-switchers’).  Companies who want to ensure all employees are sharing information will engage these code-switchers, and actually work to recruit more code-switchers, as they will work as links between both bodies and knowledge, almost acting like a bridge to the knowledge and to the relationships where the knowledge is coming from.  The companies with more, and more active, code-switchers can gain the most from their complete body of knowledge that all of their employees have.   Using code-switchers as mentors, especially with your minority employees, is also a great way to ensure the knowledge is being shared between the groups.

I love how social science takes the emotion out of a topic like this and looks at the reality of why this is happening.   HR wants to plan events so we all get to know each others cultures better, etc. When in reality, science will show us differences will continue regardless, focus on finding ways to gain the value from all of those differences by finding ways to ensure sharing of everyone’s knowledge is being done.