Category Archives: Employee Experience

If you have a baby, you’ll never have to pay Income Tax!

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Well, at least if you’re under 30 and live in Hungary!

Like many wealthy countries around the world, there is a baby shortage! Countries like Japan have been fighting this issue for decades. For others, like America, this is a recent dilemma that most still don’t know or understand. Hungary has known about their problem for a few years and has tried a couple of policies to encourage women to have more babies.

The first policy they attempted was to eliminate income taxes, for life, for women once they had four children. Yep, 4! As you can imagine, that wasn’t super popular. Also, they found that it takes a while to have four children! The new policy states that if a Hungarian woman has a baby before the woman turns 30, she will now be exempt from income taxes for life. That seems like a very aggressive policy!

The new policy just got approved in Hungary, so there isn’t a lot of data on the impact, but I’m guessing there will be many women and families who will take part. The estimated savings is about 17-20% more take-home pay for the women not paying income taxes.

Should the US have a similar policy?

We have a major baby problem in the US, and as Japan did two decades ago, we are mostly ignoring we have a problem. Young people are having fewer babies and waiting longer to have babies. The human replacement rate in the US is 2.1 to stay even with the current population. The US is currently at 1.7 and trending downward.

Why is a shrinking population a problem? Aren’t we overpopulated? It seems like fewer people would mean more for everyone else!? The thought being, “Fewer people would be more jobs and resources for those of us here.”

The problem is the math doesn’t work that way. Fewer people mean fewer workers. Fewer workers mean less productivity. Less productivity means less of everything. Japan’s economy has been flat to negative for two straight decades. Imagine being in a recession for twenty-plus years!?

The US needs both a baby policy and new immigration policies. We can not grow as a country with a negative replacement rate.

What could a US baby policy look like?

Here’s where it gets fun. I think Hungary, while aggressive, misses a ton.

One of the major issues that women and families have about having a child or multiple children is childcare. Hungary’s assumption is women will have a baby and then go right back to work to get that extra money. But in reality, the extra money will be eaten up by childcare. So, the truth is there isn’t any economic advantage.

To make a policy work, it has to work for both sides. The country needs more babies, and families need better economics that make sense and don’t burden them with crazy financial debt. The current cost to raise one child to the age of 18 in the US runs around $310,000, or $17,000 per year. That seems light as I know many families who pay way more than $17,000 a year just in daycare! And this doesn’t include college, which can run in the hundreds of thousands. Basically, you’re looking at $500,000 per kid. Who the hell wants that!?

Here are some things I would add to a US baby policy:

  • Zero Income Tax for one of the parents, assuming the working parent is caring for the child and the other parent. Mom decides to stay home and care for the child. The other parent gets the income tax elimination credit. If both parents work, the higher of the two incomes get tax-free income, and they also get a tax credit for childcare expenses.
  • Single parents with kids get tax-free income and daycare reimbursement until the child reaches school age, and then pre and post-school reimbursement once they reach school age.
  • For every kid you have over two, all children in your household get free college tuition. So, you have two kids. You pay for college. You have three kids, or four kids, or five kids, and they all get their tuition paid for.
  • Government-paid surrogates. For families who want children but can’t have their own, the government will pay for the surrogate cost. The government will also pay for your adoption expenses for you to adopt children from foreign countries to be raised in the US.
  • Parents get fully paid six months of parental leave that can be used simultaneously or segmented for any baby births, surrogates, or adoptions. Let’s get these kids off on the right foot.

I know, how will we pay for this? I don’t know, maybe we buy one less nuclear fighter jet that costs $25B. The amount of government waste is colossal, I’m sure we’ll figure it out.

Your first internship, in your career, should be in sales! No matter your major.

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So, it’s that time of year when we begin to think about our interns for the summer. I love interns because we get to show them what they’ll never do or see again in the real world when they get their first job! I’m only half-joking. Most internships I hear about today (and I hear about a lot) aren’t coming close to teaching young adults what it’s like to really work a job in your company.

Suppose I was Chief of HR for the country like I got to make all the HR decisions and make rules and stuff (wouldn’t that be a fun job!) – Chief Justice of HR! I would force every kid who ever did an internship first to do a sales internship with whichever company they decided to do an internship with. Great, you want to be in HR, or an Accountant, or an Engineer, or a Developer, etc., first, you need to go out on the road or sit on the phone with Jerry, he works in sales for our company.

Why sales?

Too often, I see entry-level grads come into organizations with this strange sense of how the world works based on what it is they do in their chosen profession. Do you want to know how to really impact your chosen profession? Go find out how the sausage is made! The ‘sausage’ in most organizations is sales.

Want to find out how to save the organization money as an Engineer or Accountant so you better understand your customer and what and how they’re buying? Want to be a great designer or developer? Sales will teach you what your priorities should be. Want to find out how to impact employee development and career growth? Go find out how hard it is to sell $1 of the product your company sells every day.

This isn’t some plan to get everyone in the world to think sales is hard and you should pity them. Sales are hard. Great sales pros also make a ton of money. No one usually feels bad for sales. This is truly about getting the new grads coming into your organization to have a better perspective on what’s really important.

If we don’t sell our stuff, you can’t ride down the slide into the lobby on your way to hot yoga.

So, no matter what you do in the organization. You should know how to sell. Well, Tim, I’m going to be a nurse. Hospitals don’t sell. We save lives. Congratulations on becoming a nurse. It’s such a great profession. You’re a moron. Every organization sells. Hospitals compete against other hospitals for high-margin healthcare business. Nonprofits compete for donations and grant dollars. Churches compete for your soul!

Every organization is selling something, and you should know what it is you’re selling and how it’s sold.

We do a disservice to new grads when we make them think that their profession is only about the skills they’re learning for some title they’ll one day have after graduation. Your profession, every profession, is about ensuring crap gets sold.

We Didn’t Train These Kids, Now We’re Going to Pay the Price!

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Which kids? The GenZ’s? Nope, we didn’t train the Millennials! And now we’ll deal with the aftermath of a decade of undertraining and almost no development of an entire generation.

You see, for the past decade, money was basically free. Zero interest rates, and we all went around spending and hiring like the party was never going to end. Because of all this free money, no one really took the time to ensure anyone knew what they were doing. Lose $100M?! Oh well, here’s some more. Lose it faster next time!

You would think with all that free money, we could have over-trained the kids, but instead, we just paid them more and bought them dairy-free ice cream and cool hoodies. “Their training will be this startup experience, and it’s better than any formal training they’ll ever get.” In some ways, that is very true. In other ways, that’s the biggest lie we sold in the past decade.

While real-world experience is part of a great training program, free money is not. We’ve grown an entire generation of “leaders” who lack financial discipline. Most have no idea how to run a company that actually makes more revenue than it spends. This isn’t how the world runs long-term. You see, there’s this little thing successful companies call Net Income, which basically is the positive money you make from your revenue after you pay all your bills and taxes. I know. I know. All these old-school terms are boring and confusing! Profit. Revenue. Net Income. Taxes. Interest Rates.

Have you wondered why all these companies are bringing people back to the office?

No, it’s not because these bosses are old and hate you. Well, they might be old and hate you, but that’s not the reason!

It’s because the vast majority of you aren’t actually working hard enough. “Hard enough” is another old-school phrase meaning you’re work level and your pay level aren’t matching up. The old folks who sign the checks and all their financial data are telling them they need fewer of you working at home if you keep sucking.

By the way, you are right. The old folks failed you. They didn’t train you to be a productive worker. They didn’t train you to lead high-producing, effective teams. They didn’t train you to be fiscally responsible with corporate resources. Blame them if you want. They should own that.

Now they are leaving the workforce right at the beginning of the second recession you’ll see in your lifetime. The first one was when you were in college or just entering the workforce, and honestly, you acted all dramatic about how that impacted you, but it turned out pretty well for you. You entered the workforce and had a magical ten-year run where your salary and benefits seemed like monopoly money as compared to your parent’s first ten years in the workforce. Congratulations! It was an awesome time to be alive!

Now, you’ll be in charge. The GenXers are too few to take over. We have to rely on the Millennials to run the show, for the most part. It’s going to be a really hard lesson. It’s going to be painful for a lot of people. Recessions suck when you’re in the middle. That’s where the cuts hurt the worse. The folks on the upper side will weather the storm. The folks in the lower half will scrap by like they always do. They are used to life being hard. They were born into the hard, you are just visiting.

The best organizations and c-suites will double down quickly on training and educating their new leaders. Hard skills and soft skills, but mostly hard skills. We will mourn the layoff losses as unfair, but within a few years, we’ll come to realize that it was just the payoff of not understanding how to run our business. Call it a bad leader tax. Businesses weren’t meant to run on free money. Money has value, and those investing in your business expect a return in profit and net income, eventually, not user growth.

I’m not punching down on Millennials. They are a product of a decade of free money, and now we’ll deal with the aftermath. They just are going to be the ones responsible for cleaning up the mess.

Does working for a bad boss help your career more than a good boss?

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If you’re like most people, you’ve probably worked for some good bosses and some bad bosses. The best bosses I worked for were supportive and empathetic. They cared about me as a person and supported me as a professional. The bad bosses usually just focused on themselves and what I could do for them.

I know many people who will talk about working for a terrible boss and actually show signs of professional PTSD! We joke, but sometimes the experience can be that awful. There was a recent study done with refugees who are survivors of torture. I’m not saying working for a bad boss is “torture,” but I know I can find some people who would argue it is!

Here goes, Tim! Good bosses, bad bosses, and torture survival!

The study mentioned above found that refugees who were tortured, compared to those who didn’t get tortured, became more resilient. That which doesn’t kill you makes you stronger, comes to mind.

I think the same can be said about working for a bad boss compared to a good boss.

Employers are constantly looking for resilient employees. We try to measure resiliency in pre-employment assessments. During the past few years, resilience as a hiring competency has been very hot.

I have this theory that working for a bad boss or a bad company that treats you poorly, in many ways, makes you a better employee than you working for a great boss and a great company. And it all has to do with raising your level of resilience! You see, when times are good, and things are relatively easy, you are exercising that resiliency muscle.

I’m not saying you get soft working for great leaders and great companies, but you might get a little soft!

We see this constantly in the world as we go through great economic times. Everyone gets a little softer. Hard economic times force us to work that resiliency muscle. To harden up a bit, to grow a thicker skin, put up with some stuff that we wouldn’t normally, to survive.

Bad Bosses and Bad Companies Make More Resilient Workers!

There’s a fine line between becoming resilient and getting broken. That’s the hard part. Like the study found, in some cases, a person just gives up and accepts their fate. They begin to believe this was somehow deserved. The key is to find the “survivors,” those who wouldn’t give in or give up. Those who actually become more resilient from their experiences. Those are your diamonds in the rough from an employee perspective.

Too often, we only want to hire from winners. “Well, they worked for Google. They must be awesome!” And they might be. But I want “awesome” and “resilient” when I know we’ll face tough times. When we have to dig ourselves out of a hole, from a business perspective, I want to have some people who have been in a hole before and found their way out!

Another option is looking for strong workers who work for a bad boss at a good employer. We all know the world, at every company, is littered with some bad bosses, no matter the brand. I have a feeling the same resilience is built up over time. Having to “deal” with a bad boss for a while, and figuring out how to be still productive and get things done is an amazing skill to have acquired in your career. Even though it won’t feel that way at the time!

Yep, today Tim wrote about how refugee torture victims and working for bad bosses is similar to how we build resilience. Now to work on a case study with my own team…

Stay hard.

You Don’t Want Work Life Balance! Stop Lying!

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My wife always tells me it’s actions, not words, that make a difference. You can say all of this great stuff, but if you do nothing, it’s meaningless. I think we would all agree with this.

So, when we hear graduating students, candidates, and employees tell us what they really want is “Meaningful Work” in their careers, we have to understand that those are “Words”! Not actions, just words. A study from Olivet Nazarene University Meaningful Work Survey asked this question and, predictably, found this:

So, yeah, 90% of us believe that meaningful work is critical for our career and happiness. That sounds about right. Those ‘words’ tend always to come out when we talk about our dream job, etc.

Then the study asked another question. It was basically, given your current career, job, etc., what is the one thing that would make it better? An action. But, remember those words!? What you would believe would make their career/job better should be “more meaningful work”! 90% of you idiots just answered that it was super important for your career and happiness!

Here’s what they actually said:

Show. Me. The. Money!!!!

Yep, you know I love this! “We just have a job that saves puppies! That would make me so happy!” Oh, wait, saving puppies only pays $23,000 per year!?! Yeah, screw those puppies! I want to work for a private equity firm! I’m a boat, bitch!

Want to retain your employees? Stop trying to make your employees believe that the rubber vomit you’re manufacturing matters and pay them more and give them flexibility! Stop asshole managers from treating their people badly! And magically, you’ll have high retention, and your people will love working for you, even though you don’t save puppies!

I get it. Deep down, we all want to do something that changes the world for good. We want to help others and save puppies. And the concept of meaningful work does really matter, given all other things, like compensation, flexibility, great leaders and co-workers, etc., are equal.

If I can make six figures a year saving puppies, I’m saving puppies. You’re saving puppies. We are all saving puppies!

But it doesn’t, so our actions speak way louder than our words when it comes to career choices and change. Meaningful work is not the most important thing for people in their careers. It’s something to consider, but don’t get too caught up in believing it’s going to fix all of your employee experience issues!

The more we believe we’ve changed because of the pandemic, the more ridiculous we look each time we leave jobs and people we like for more money. We had a good thing, but we think more money will make it better. The truth is the vast majority of us have no idea what we really want, but we believe more money is always the best answer.

What is the Health Insurance Design Impact to Employer Paid Abortions?

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Obviously, we had major news recently around abortion rights in America.

What I really want to talk about today is an amazingly quick response by organizations to immediately offer a new health benefit. Within hours of the announcement, we saw major employers come out publicly stating they would pay for the expense of their employees to obtain legal abortions if they could not get one in the state they lived and worked. Some employers also announced that they would pay for relocations for their employees to live in states with legal abortions.

All of this, just from a health benefit plan design perspective is quite remarkable!

Most employers can’t agree on offering smoking cessation programs for their employees or paying for gym memberships, but within hours, we are now paying for abortions. We have severely unhealthy obese employees, but we won’t pay for bariatric surgery. Organizations tend to move very slowly in making benefit design changes, and those changes tend to mostly be around cost/benefit.

Are we being “Inclusive” by offering an abortion benefit?

Again – I’m 100% in favor of a woman’s right to choose!

But we need to have a conversation about the hypocrisy of some of these decisions being made around this issue. This is what we do as professionals in HR. We discuss decisions we make as organizations, and how each decision tends to lead to other issues we can’t yet know what they might be.

So, we are now offering abortions as a health benefit. Why?

Let’s say we are willing to pay $5,000 dollars for our female employees to get an abortion. It definitely makes us sound like we are a very progressive employer! It’s interesting, though, that many of the employers who are willing to pay for your abortion are not willing to pay for your parental leave if you chose to keep your baby. They are unwilling to pay for childcare assistance after you have your baby.

Why is that?

Could it be, that not having children make you a more productive and less expensive to insure employee?

We must ask ourselves this question, if not only to ensure we are being inclusive in our insurance offerings to our female employees.

If you want to be “inclusive” you offer a woman a full choice. Yes, you can choose to have an abortion and we’ll support you! Yes, you can have the baby, and we will still support you! If you only choose one side, you are being exclusionary. Why?

Abortion as an employer-paid health benefit

There are benefits we pay as employers that have very little financial impact but make us look like we are an employer of choice. College Tuition reimbursement was always the biggest one. We offer you college tuition reimbursement knowing almost no one actually takes advantage of it. It’s one of the lowest-used benefits a company can offer! But, we feel great about ourselves when we market this out to candidates and employees.

Are abortion benefits the next college tuition benefit? You offer it up, knowing it makes you look like a progressive employer, but you know it really has very little financial impact. On the flip side, offering paid parental leave and childcare assistance, well, those benefits actually cost us real money, so no, we won’t offer those!

All women should be allowed to make their own choice with their bodies. Period. Employers are going to decide if they should help women with that decision. I think we, as HR leaders and professionals, should be advising our executives that having a “Choice” is about more than one option. Our benefit plans should support any choice a woman wants to make, not just one.

Abortion is health care. Having and caring for a child is health care. Organizations need to support all choices that a woman might want to make.

Are you “Rainbow Washing” your corporate logo for Pride Month?

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I know you’ve seen this going on in June, but you might not have known what it was called. “Rainbow Washing” or “Pride Washing” is when a corporation turns its logo, for the month of June, from its traditional colors to rainbow colors to show its support of Pride Month.

Here are some examples:

Is there any harm in doing this?

My initial impression was “No”. I’ve got gay people in my life and for far too long most companies were scared to even acknowledge gay people were real, let alone show their support, so for me, this is an amazing time. We have billion-dollar corporations willing to come out publicly and state they support their gay employees and customers in a very public way.

But, we also have the bad marketing side of the world.

We have organizations that will Rainbow Wash their logo for June, to act like they are Prideful of their LGBTQ workforce and customers, but then do nothing else the rest of the year. Wait, how do you pronounce “Cinco De Mayo” or isn’t February the shortest of the months for Black History? I joke, this is classic in most organizations. We say we care, but we do the least amount to show we care.

The worst of this is when the organization says one thing, like, hey, look at our rainbow logo, but then goes and gives political donations to politicians who are actively working to reduce or eliminate gay rights. Yes, this is happening. This is far worse than those acting like they care but doing the minimum to increase sales. This is actively lying to employees and the public through behaviors and dollars working to support the other side.

Do you have to rainbow wash your logo to have Pride?

Nope. In fact, I’m sure the LGBTQ community would prefer you not wash your logo and just actually give a damn through your actions and funding of policies that support their community. But, doing those things and washing your logo is also awesome!

Signs and symbols of support shouldn’t be discounted. They are important. A corporation could be the biggest donor to gay rights but hide the fact they do it, that also isn’t great. “Pride” is about having pride for the LGBTQ community and showing your support in a public way that will show those who don’t support that you do and you’re not afraid to show it. Because for way too much of our history way too many were afraid to show their support.

Can Rainbow Washing go too far?

Well, maybe if it goes down the male genital route, you go too far!

This isn’t real, but it demonstrates how a brand can go over the edge with Pride!

Now, you might love the OG and be Gay, and I’m here for it! Everyone loves those breadsticks and salad!

Rainbow washing goes too far when you are doing it for promotion and marketing and not because you want to show Pride for the LGBTQ community. I know, for 100% fact, that some CMO and Revenue officers have had the discussion, “hey, what happens to our sales if we wash the logo? Oh, it’s up 7%! Should we keep it a rainbow for July!? No! That’s the American Flag washing logo, you idiot! Sales went up 8% last year with Red, White, and Blue!”

Rainbow wash your logo. Show support. Give to Gay Rights and Politicians who support Gay RIghts. Show your Pride!

The Baby Bonus Program You Never Knew You Needed!

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In HR and Talent Acquisition, we tend to be in crisis mode constantly. We are some of the best firefighters are organization has! Our functions tend, by their very nature, to be short-termed focused. This month, this quarter, this year. Rarely are we able to think and plan further than twelve months ahead.

The problem is, currently and in the future, we (the U.S. and pretty much every industrialized country on the planet) are not making enough humans! In the U.S., we are early Japan. This means our birth rate has dipped below the replacement rate. Japan has been facing this crisis for decades; we are just starting down this path.

Why does this matter?

  1. If we can’t replace our humans, we have a shrinking workforce, and it’s very hard to grow.
  2. If we aren’t going to grow enough humans, we have to find another path to get more humans, and that’s immigration, and in the U.S., we have been awful at immigration.
  3. If we can’t get real humans, we have to build robots. The problem is, why robots will come faster than humans, it still takes time, and robots can’t effectively replace humans in most roles.

What is the solution?

This might sound a bit controversial, it’s definitely out of the norm, but HR needs to build a policy that encourages our employees to have babies!!

“Wait, what?! You want us to encourage our employees to have s…”

Okay, hear me out! Japan knew it had an issue decades ago and did nothing to address it, believing nature would take its course. But it didn’t! We have the opportunity to reward and compensate our employees for growing our next employees!

In the U.S., historically, we’ve also sucked at parental leave policies, and we’ve held parenthood against workers for promotion. Having kids, for the most part, has been a negative to your career. We need to change that! We need to make it a reward and benefit to your career. Like, imagine if Mark and Mary had seven kids! They both should be promoted immediately to Vice Presidents or Chief Growing Officers or something!

I’m only saying that half-joking! We are in a crisis and to get out of a crisis takes bold moves.

The hard part of encouraging our employees to procreate is that HR has spent its entire existence trying to stop our employees from doing this very thing! Now I’m asking you to become the Chief Baby Officer.

Um, are there other solutions?

Yes, but America tends to hate both of these options, traditionally.

The first option is to completely revamp our immigration policy and allow in millions of immigrants in both skilled/educated backgrounds and non-skilled/labor backgrounds. Traditionally, both political parties are against this because of the belief immigrants take jobs away from current citizens. Labor Unions hate this. Conservatives hate this. It’s usually a political non-starter.

The UK recently made a major change to their immigration policy because, like the U.S., they are facing a similar human challenge, and we should all take note because it’s an amazing policy. Basically, it allows professionals to come in with a Visa before getting a job, as long as they can prove they can pay their own way. This works because one of the biggest hurdles in U.S. immigration policy is we force an immigrant to have a job before they can enter, and for most U.S. employers, that just doesn’t work from a timing perspective.

The second option is more automation and robots. This is another one that labor unions tend to fight because it takes jobs away from humans. Unfortunately, this one is moving forward because we just don’t have enough workers, and even unions can’t produce more unions. More and more, we’ll see automation take the place of traditional roles we are used to seeing humans in. Cashiers, order takers, warehouse workers, truck drivers, etc. This is scary for many but a necessity for employers looking to run their day-to-day operations.

You might think that encouraging your employees to have babies is a very out-of-the-box idea, but in HR, we need to start thinking more long-term about how we’ll manage our workforce. If you believe your company will be around twenty years from now, a part of our job, strategically, should be thinking about this workforce concept.

The Big Regret! How’s that new job treating you?

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When 4-5 million people per month change jobs, mostly for more money, there are going to be some consequences! Turns out, the grass isn’t always greener when you get more green!

A Muse survey, reported in the WSJ, recently found out that nearly 75% of workers who’ve changed jobs recently have regretted it, and 50% of those would try and get their old job back! That’s a lot! But it’s not surprising.

The biggest stressors we have in life are having kids, buying a house, and changing jobs. We tend to make bad decisions when stressed, and when you have 4-5 million people per month making that decision, well, that’s a lot of bad decisions!

What will we learn from the Big Regret?!

1. Money isn’t everything, but once you get more of it, it’s hard to go back to the old money level.

2. The old job and the old boss didn’t really suck, and the stuff we thought sucked at the old job, suck at the new job as well. It’s called “work” for a reason.

3. The power of someone paying attention to us and making us feel pretty is the most powerful force on the planet. Never underestimate it.

4. You can go back to your old job, but it will be different. It’s like going back to your ex. You are both a bit smarter and a bit more cautious now. There are some scars. Same people, same company, same job, but it’s not the same. Doesn’t make it bad, but you can’t expect it to be the same.

5. You can’t really judge a job until a couple of things happen: 1. You actually know how to do the job fully; 2. Co-workers stop seeing you as the newbie. In every case, that timeline is different. Be patient and do the job before you judge it.

6. If you find that you have an asshole boss at every job you work, the asshole might be you, not the boss.

7. In the future, when we have more jobs than available workers, let’s not act surprised when people start changing jobs. It’s happened in every similar economic cycle in the modern world. It’s called oppotunity. Don’t confuse that with the world has changed.

What should you do if you hate your new Great Resignation Job?

  • Take some time to really determine what you hate. Was that different from the old job? Was it the same? Will it be that way at the next job? Too many folks don’t know what they hate and they just keep selecting the same jobs they hate time and time again, but with a new pay rate and new address.
  • Some of us immediately want to return back to our old job. That might work, it might not. A psychological thing happens to so many managers once you leave them. It’s like you broke up with them and now you want to run back to that comfort. You’ll find many have no interest, and it has nothing to do with your value and performance, and everything to do with them feeling like you’ll hurt them again.
  • Try and find something you like to do, but call it “work”. This is different than the B.S. you’re told about work doing something you love and you’ll never work another day in your life! I’m no life coach, but that crap doesn’t work. You call it “work” even if you love it, because one day you’ll show up to do what you thought you loved and find out its work, and you’ll be depressed and broken. You don’t love work. You love your family and your God and puppies. You work to put yourself in a position to be able to do what you love. If you’re super lucky, every once in a while those two things will overlap.