HR Announces – ‘We’re Out of Ideas’

Recently the crew at FOT has been having some conversations about what’s new in HR.  It use to be all you had to do was show up at a HR conference and listen to someone from Zappos, Google, Sodexo, etc. to find out what were the latest and greatest happenings going on in HR!  But no more – it seems like HR is in a dead period of new ideas!  I blame the recession – why wouldn’t I – the ‘Great Recession’ gets blamed for everything – might as well take some HR heat!   Nobody at FOT could really come up with any ideas that were new.  But thankfully the good HR folks at Google came through one more idea, but I don’t how new it is…

From Quartz – Google admits those infamous brainteasers were completely useless for hiring:

“Google has admitted that the headscratching questions it once used to quiz job applicants (How many piano tuners are there in the entire world? Why are manhole covers round?) were utterly useless as a predictor of who will be a good employee.

“We found that brainteasers are a complete waste of time,” Laszlo Bock, senior vice president of people operations at Google, told the New York Times. “They don’t predict anything. They serve primarily to make the interviewer feel smart…

Bock says Google now relies on more quotidian means of interviewing prospective employees, such as standardizing interviews so that candidates can be assessed consistently, and “behavioral interviewing,” such as asking people to describe a time they solved a difficult problem. It’s also giving much less weight to college grade point averages and SAT scores.”

Yes, you are reading that correctly – Google’s ‘new’ HR idea is to go retro!  Back to behavioral interviewing and standardized interview decks – hello 90’s!  Isn’t that wonderful – I can’t believe Google didn’t have someone at SHRM 13 leading a session like “Google’s Strategic HR Innovations – Just Interview Them Stupid!”  HR ladies would have packed the house to find out how they to could jump into the 90’s.  Also, let’s just come right out corporately and validate to all those kids in college – you’re just wasting your time and spending your parents retirement.  I’ve really never been so excited for our industry!

So, I would like to take it upon myself and the entire HR community to let the world know – HR is out of ideas!

Here’s were we/HR stand:

– Still need to hire people

– Still need to train our employees

– Still need to provide benefits and pay administration

– Still planning the company picnic, and/or ‘holiday party

Long live HR.

#1 Thing Job Seekers Do Wrong

I was asked recently by a job seeker: “How do I zero in positions that I’m qualified for and, those that I will be challenged by?” (shout out to Michael Kubica, MBA for the question)  After going back and forth with Mike I think the question is really: “How do I get a job that will use my skills and that I will actually find interesting?”   Most people don’t really want to be ‘challenged’ – they use the word ‘challenged’ or ‘challenging’, but when push comes to shove what most people want is a job where they feel like their contributions are valuable to the organization and their using the skills they are best at.  People want to feel successful – not challenged.  Many times when you’re challenged, you fail – most people don’t like to fail – and will quit.  But job seekers know that hiring managers and HR folks to hear the “challenge” word!

It boils down to what are failed job seekers doing wrong?

The #1 thing that job seekers are doing wrong is only looking for jobs, of jobs that are posted!

I hear it constantly. “I’ve been applying to jobs constantly”, “I’m on the job boards, Indeed, directly to company pages, etc. There isn’t a job posted that I haven’t applied to – there’s nothing left I can do…”  The reality is, HR and Talent Pros know this, most jobs that you want never really get posted.  Here’s how a vast majority of jobs get filled today:

Step 1: Need for a position is Identified in an organization. This might be for a new position being created, a person who resigned, termination, etc. – but now we know we need a body.

Step 2:  The hiring manager, or person who knows of the need first, has one thought – “who do I know, right now, that would fit this position?”

Step 3: If there is an answer to the question in Step 2 – that person is contacted.

(Realize – never in the first 3 steps was there any mention of “Oh, we better post that position quickly!” This all happens before any of that talk)

Step 4:  If there is a viable candidate to fill the need of the organization – that position is filled with that need – the position is never posted.

I say ‘it’s never posted’, but we all know that’s not true – it gets ‘posted’ but it really doesn’t get posted.  It only gets posted to close the loop on the recruiting process – but the resource to fill the need has already been identified – so you applying to that posting is an exercise futility. So many of the positions that get filled in our organizations, are filled like this. Who do you know?  I know someone. Bam! Filled. Job seeker – you’ve got know shot at these ‘prime’ positions.  That’s something behind the curtain that HR/Talent Pros don’t want you to know.

So, what can Job Seekers do to combat this?

Simple.  Network.  Connect with people in your expertise in the companies you want to work. With the people at companies in the area you want to work.  As a job seeker you want to put yourself into the minds of those individuals who when they find out they’re going to have a need – your name comes up in that conversation.  Keep posting – but spend at least double the time you do posting – networking and meeting those who will be in those conversations.  You’ll open yourself up to an entire other bucket of potential openings!

 

The Myth of Being a Highly Selective Employer

We all think it, don’t we?  We all want to believe in this notion that we only hire the best and brightest – we only hire quality.  We are ‘highly’ selective.

We’ll show our executives really cool data that shows how ‘highly’ selective we are.  Number of applicants per hire – 25,000 people applied for this position and we only took the best 1!

I read something interesting recently from Time magazine and college admissions at highly selective colleges – think Harvard, Yale, MIT, etc.  Schools that are super hard to get into because of how selective they are – much like your hiring process of your organization. From the Time’s article:

“What many parents and students don’t realize is that increasing numbers of applications isn’t necessarily a sign that it’s harder to get into a selective school; rather, it’s a sign of changes in behavior among high school seniors. More and more people who aren’t necessarily qualified are applying to top schools, inflating the application numbers while not seriously impacting admissions. In fact, it has arguably become easier to get into a selective school, though it may be harder to get into a particular selective school…

The most recent study available from the National Association for College Admission Counseling shows that between 2010 and 2011 (the most recent years available), the percentage of students applying to at least three colleges rose from 77% to 79% and the percentage of students applying to at least seven colleges rose from 25% to 29%. In 2000, only 67% of students applied to three or more colleges, while 12% applied to seven or more.

The net effect of this behavior is to create an illusion of increased selectivity. Especially at the most selective schools, an increase in applications generally leads to the acceptance of a smaller percentage of the students who apply. However, students who meet the academic and extracurricular thresholds to qualify for competitive schools will still get into a selective college; it’s just less likely that they’ll get into a specific competitive college. These schools work hard to not admit students who won’t attend;  the acceptance rate and the matriculation rate (the percentage of accepted students who attend) are key measures in many college ranking methodologies, so both admitting too many students and admitting students who don’t attend can hurt a college’s ranking.”

An illusion of increased selectivity…You see, just because you turn down a high number of candidates doesn’t make you more selective – it makes you popular.  Too many organizations, and HR departments, are marketing that they are highly selective based on some simple numbers that give an illusion of being highly selective, when in reality, they’re just good at processing a high number of applicants – but not really being ‘more’ selective.  Just because you turn down 24,999 candidates doesn’t make you selective – it just means you have a high number of applicants.

So what does make you selective?  Quality of hire – which I can argue is another very subjective metric in most organizations – but at least it’s a start.  Can you demonstrate with real measurable items that the applicants you’re hiring are better or getting better than those previously?  This creates a real evidence that you’re becoming ‘more’ selective and on your way to becoming ‘highly’ selective.

Brains Before Bros

True or False: My existing talent pool is always my first line of defense in filling key roles that become available in my organization.

If the first statement is true, shouldn’t the second one be too? In a perfect world, yes. But we know that isn’t always the case, and unfortunately employee development is often overlooked when organizations are forming their talent strategies.

Join hiring smart (people) experts Kris Dunn and Kelly Dingee for Brains Before Bros: Why Hiring Smart People over Experienced People is a Winning Talent Strategy, sponsored by our friends at SumTotal, on Tuesday June 12 at 1pm EST and they’ll hit you with the following:

1.    A rundown of the factors driving talent scarcity in today’s workforce and why it’s better to hire smart people and train for success.

2.    FOT’s definition of “smart” and common false positives you need to consider when defining what smart looks like for your organization.

3.    Three signs that your top talent may be looking to jump ship and how to reel them back in by providing the incentives they really want. (Hint: It’s not always monetary).

4.    Five ways to keep training and development programs aligned with evolving expectations from top applicants and your existing talent – without breaking your budget.

5.    We’ll close this webinar by bringing in Steve Parker from SumTotal to help you ensure your leadership team is creating the right environment to get the most out of your existing talent.

 Your traditional approach to talent isn’t working—start putting brains before bros and maximize your talent strategy today.

REGISTER HERE

3 Reasons You’ll Never Be Fully Staffed

For any HR/Talent Pro who lives with the concept of staffing levels – becoming ‘fully staffed’ is the nebulous goal that always seems to be just out of arms reach.  I’ve lived staffing levels in retail, restaurants, hospitals, etc.  I know your pain – to be chasing that magic number of ’37 Nurses’ and almost always seeming like you’re at 35 or 36, the day that #37 starts, one more drops off…

There are 3 main reasons you can’t get fully staffed:

1. Your numbers are built on a perfect world, which you don’t live in.

2. Your hiring managers refuse to over-hire.

3. Your organization actually likes to be under staffed.

Ok, let me explain.

The concept of being fully staffed is this perfect-case scenario – a theory really – in business that there is a ‘perfect’ amount of manpower you should have for the perfect amount of business that you have at any given moment.  That’s a lot of perfects to happen all at once!  Usually your finance team comes up with the numbers based on budgeting metrics.  These numbers are drawn down to monthly, weekly, daily and hourly measures to try and give you precise number of ‘bodies’ needed at any given time.  You already know all of this.  What you don’t know is why this type of forecasting is so broken when it comes to staffing.

These models are predictive of having a fully functioning staff to meet the perfect number needed.  Fully trained, fully productive, etc.  If the model says you need 25 Nurses to run a floor, in reality you probably need many more than that.  Finance doesn’t like to hear this because they don’t want to pay 28 Nurses when the budget is for 25 Nurses.  You’re in HR, you know the reality – staffing 25 Nursing openings (or servers, or assembly workers, or software developers, etc.) takes more than 25 Nurses.  You have Nurses who are great and experienced and you have ones who are as green as grass -you have ones retiring in a few months, some taking leave, some leaving for other jobs, etc.  Because of this you have a budget for overtime – why? – because you need coverage.  This why you need more than 25.  And the staffing levels argument goes around in circles with finance.

I’ve worked with some great finance partners that get the entire scenario above – and would let me hire as many people as I felt I needed – and it still didn’t work!?  Hiring managers struggle with one very real issue – what if.  What if, Tim, we do get all 28 hired and now I only have needs for 25?  What will we do?!  Even when you explain the reality, they will subconsciously drag their feet not to hire just in case this might actually come true.  I’ve met with HR/Talent Pros from every industry and all of them share very similar stories.  They can’t get fully staffed because of what little stupid ‘perfect’ concept – “what if we actually get staffed!”  That’s it.

You can’t get staffed because you actually might get staffed!  If you’re fully staffed hiring managers are now held accountable to being leaders.  If you’re fully staffed, plus some extra, hiring managers have to manage performance and let weak performers go.  If you’re fully staffed – being a hiring manager actually becomes harder.  When you’re under staffed everyone realizes why you keep a low performer, why you allow your people to work overtime they now count on as part of their compensation and can’t live without.  When you’re under staffed everyone has an excuse.

You’ll never become fully staffed because deep down in places you don’t talk about at staffing meetings you like to be under staffed, you need to be under staffed.

 

 

The Reality About Salary Expectations

I think we all know that one person in our life that thinks they get the best deal on everything!  They consider themselves the ultra-negotiator, the person sales people hate to see coming! You know the person -they go and buy a $40,000 car and call and tell you how they got it for $27,000 and the car dealership actually lost money on them.  These are the same people that believe they can also ‘negotiate’ their salary.  There are some realities we face as HR Pros that most employees don’t get.  While we have rules and processes and salary bands – quite honestly, very little negotiation goes into any salary offer.  Younger people are always told, usually by their Dad or some cheesy uncle, to “Negotiate” their salary – “Never take the first offer!”

To me there are 7 main realities about negotiating salaries, and here they are:

1. A good HR/Talent Pro will pre-close you one what you are expecting. This is truly the point where you should be negotiating – the first call. 99% of candidates miss this opportunity.  This is also where you can truly find out what the position pays by playing ‘the game’ – Go in super high and work backwards – you’ll eventually get to the ceiling.

2. Health Benefits, 401K match, holidays – are all non-negotiable, unless you’re negotiating a C-suite offer.

3. Vacation days are usually negotiable – but only if you’re coming in with experience – most entry levels have no room to negotiate this – and if you did negotiate, as an entry level, and get more vacation than they originally offered, calm down, they were willing to give this already – it was a test.

4.  In most positions you have a 10% range within a position to negotiate salary for an experienced professional – they offer $60K – you can probably get $65K without much hassle.

4a. There are 2 schools of thought on this:

A. The fewer the people in a position the easier it is to negotiate salary – the theory being we can hire Tim at $65K, we have  Jill is already hired and working at $60K – but it will only cost us $5K to move her up to that same level – everyone’s happy.

B. The more people in a certain position the harder it becomes to negotiate because the example above, pay inequity now becomes very expensive, and ‘pay creep’ is more of a concern when you have 200 people in a position vs. 2.

5. You can raise your salary up quickly by moving around early in your career and jumping from company to company – but it won’t help you move ‘up’ in your career.  Congratulations you’re making $95K as an Engineer – but you won’t be the first choice to a manager or director position – that will go to the person who has been there for 8 years while you were working for 4 different companies.

6.  HR/Talent Pros (the good ones) expect you will negotiate something – they usually are holding something back to help seal the deal.  If you don’t negotiate, you missed out an opportunity to get something – and that will follow you as long as you are with that company.  The $5K you left on the table initially, compounds each year like bank interest – if you’re with the company 20 years – that one little $5K negotiation will cost you $100K+.

7. The best HR/Talent Pros will tell you up front if they have don’t have room to negotiate – very rarely are they lying.

Share some of your salary negotiation stories in the comments below.

Bad Hire Blame Game

Jessica Hagy, over at Indexed, inspires me constantly – this is one I made based on her inspiration:

Bad Hire Blame 1

 

 

 

 

 

 

 

 

 

It’s what you sign up for in HR – you’re going to take the blame when a bad hire happens, and your hiring managers are going to take the credit when a good hire happens.

 

 

Mailbag: How do you talk someone into working Contract?

Here’s the question:

“Can you please help me on how do you convince a candidate to work on contract?”

Sam – New Jersey

Here’s some background, because some people might be confused on what the question even asks. A ‘Contract’ position is usually what technical engineering and IT recruiters refer to for a professional temporary type job.  It’s not ‘temp’ that you usually think of when someone says “hey I’ve got a temp job” for you  – which is normally a low paying, manual labor job.  Contract positions are usually project based, highly paid hired guns that come in to do a certain job and move on.  You also see many corporations now using contract hiring for their professional staff as a kind of ‘try and buy’ type of staffing.  Hire talent on contract, if they workout well and fit your culture, then offer them a direction position.

Sam – is new to the professional contingent staffing game – and he’s asking the million dollar question.  Your ability to sell ‘contract’ is what separates the men from the boys in the staffing industry! Here’s my reply:

“Sam,

Here’s the canned staffing industry answer for getting an IT Pro to work contract vs. direct:

You talk a candidate into a contract because of a number of factors – the ability to work a project that gives them experiences they don’t have, to work for a company they have desire to work for, it’s a higher level of position than they currently have and/or it is in a location geographically they want to be versus where they are currently.  A few other things that are enticing – much higher level of compensation, working for a true leader in the industry (mentor type), working on a project that will set them up for future projects they couldn’t get without working on this project.  

 Here’s the reality:

If you have none of these things – you’ll never talk a direct person to go contract – unless they are just plain miserable in their current job.  To get a direct person to work contract you have to find their pain spot – what is it about their current position they can’t stand – and if you can solve that with what you have to offer – just maybe you’ll get that person to accept your contract position.  If you have none of those things that solves their pain – you have no chance.

Good luck, Tim”

Finding an individuals pain spot, or hot button, is the key to any kind of candidate negotiation, but critical for getting someone to accept a contract position.  I’ve been told by 100+ HR Pros that a ‘good’ candidate would never accept a contract position over a direct position.  After 10 years of working the industry – I can honestly look them in the eye and tell them they are flat wrong!  I get people to take contract position every single week who turn down direct positions.  The direct position might be with a bad company, bad location, low pay, etc.  Contract offers them an opportunity to stay where they want, work with a company they’ve been targeting to get into, maybe cash a big check, etc.

I speak to corporate HR Pros every single week and many have the same issue – “Tim – we spend so much time and resources bringing in good talent – only to have them fail and once they are on staff, it seems next to impossible to get rid of them quickly!”   Contract is one answer to solve this.  It allows both sides to feel each other out, see if it’s a fit and then get married down the road after you’ve dated a while.  If it doesn’t work, your hiring managers don’t feel the same ‘ownership’ of a contractor and will cut them loose quicker than they would a direct employee.

 

Finding Mr. Right Too Fast

Here’s the scenario:

You have an opening and you do your recruiting thing.  You find a candidate and low and behold they are great!  What luck!? You think to yourself. The hiring manager is going to thrilled. Boy, my job is easy!

Do I need to even go on?

You set up the interview with the hiring manager.  She also thinks the candidate is great.  Done deal, you think to yourself.  Then ‘it’ happens.  The hiring manager, she does that thing they do, those hiring manager types, she says that statement we don’t want to hear:

“Let’s take a look at a couple more before we decide.”

Bam!

Just like that, this job went from being easy to being horrible!  You found her Mr. Right and now she wants to see two more Mr. Rights!  Doesn’t she know, Mr. Right only comes around once!?

Grizzled Recruiting Veterans know what I’m talking about.  Finding Mr. Right too fast is a killer.  So, how do you get around this?  There are two ways, neither of which is preferred over the other:

1. Hold Mr. Right and show them Mr. and Mrs. Wrong.  The problem with this is that while you’re messing around showing the hiring manager Mr. and Mrs. Wrong, Mr. Right might just find Mrs. Right Job for him and you’re done holding hands with Mr. and Mrs. Wrong – with a hiring manager saying “I want Mr. Right – Go find me Mr. Right!”

2. Present Mr. Right, and present Mr. and Mrs. Wrong soon after.  This works about 75% of the time if you have secondary candidates waiting to go – timing is everything with this.  Hiring Manager sees Mr. Right.  Wants to see who else might be on the market. You quickly show them Mr. and Mrs. Wrong.  Hiring manager makes quick decision to go with Mr. Right.

Either way getting a hiring manager to understand the market and what they have can sometimes be a sales job!  Too many hiring managers believe you can present them a slate of Mr. and Mrs. Rights!  When in reality you might know that you got lucky finding one Mr. or Mrs. Right – and the chances of finding more are slim to none.  Ah, hiring managers…you can’t live with them and you can’t legally shoot them.

The Proactive Recruiting Myth

If there is one thing that I hear more from hiring managers and executives, especially executives!, it is why can’t recruiting, as a function, be more proactive!  Both groups look at it like an economic lesson – supply and demand – like recruiting is an assembly line.  In ‘their’ world they have expected needs, and to meet those needs they will need product, so they schedule that much product to be produced and ready for delivery on the date needed.  Simple.  What is wrong with recruiting!? That’s what we want!

Simple.

Being proactive in recruiting and having a pipeline of candidates ready to go and start working isn’t simple.  You’re dealing with two parallel moving time lines – the candidates and the organizations need of that talent – it’s highly complex.  Whenever I hear about an organization that is ‘proactively’ recruiting it makes me smile – because they probably really aren’t proactively recruiting, they’re probably actually recruiting for needs they know they’ll have in the future – which is reactive, since they already know of the need.  Proactive recruiting is preparing for a need you don’t know of yet, but expect will happen.  Those are two different things.  One you have money for, one you don’t.

If you truly want your Recruiting department to do proactive recruiting, you have to be willing to ‘over-hire’ the amount of staff you actually need.  Some companies are actually willing to do this, and fund this.  But stop and think for a minute the message that sends to your organization.  You’re hiring replacements for people who haven’t left, so you’re assuming we are going to leave, crap I don’t want to be the person who gets let go, I better go out and find something!  You get people to think about leaving by being proactive.  ‘Proactive’ recruiting in this sense might actually cause higher turnover (I actually know this from experience when a highly successful organization I worked with thought this would be a brilliant idea – it wasn’t).

Now, some of you HR/Talent Pros reading this will say – but wait, what if your proactively recruiting for growth! Again – that’s not proactive, that’s reactive. If you know you’re growing, you would be hiring those folks for spots you plan on having in the future – this doesn’t cause your workforce to freak out and think they might be replaced – these people are being hired for growth.

The problem is very few HR/Talent Pros are willing to tell their hiring managers and executives the truth about Proactive Hiring.  We can do it – but – it will cost money and it might cause some folks to leave that we don’t want to leave!  Now, you can combat this – but that takes strong leaders willing to have great performance and developmental discussions with their team. There is a false assumptions by hiring managers and leaders that recruiting can somehow magically pipeline great talent for a long time.  Some organizations that a brand that can do this – but 97% don’t!  Google can pipeline candidates for months, years – folks are willing to wait in cue to get on board.  Walmart can’t. Nike can.  Bank of America can’t.

What can you do?  Share reality.  Explain why, what they want is difficult and costs a ton of money.  Then give them some other solutions, that are most cost effective.  Ways to lower turnover, ways to develop talent and ways to onboard talent faster. Also, start changing their vocabulary – Proactive – in their vernacular is the wrong word!