Category Archives: Hiring

When is Gutting Payroll the Right Thing?

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HR-Sports Post Alert!

Many of you probably cared less about the recent trade between Major League Baseball’s Miami Marlins and Toronto Blue Jays (check out the details here) – suffice to say the Marlins were able to decrease their annual payroll from $188M to around $35M in one giant trade!  Classic rebuilding type of move, right?  People/fans are saying the Marlins shouldn’t do this to their fans and they gave up on some great talent.  Let’s take a look back at recent Florida/Miami Marlins history:

1997 – Won the World Series (payroll at $47.8M)

By 1999 – they gutted their roster of high priced talent for younger up and coming talent (payroll at $15.2M)

2003 – Won the World Series (Payroll at $76.9M)

By 2006 – they gutted their roster again (payroll at $15M)

The difference the Marlins and large market teams like the Yankees and Red Sox is that the Marlins can’t make giant financial talent mistakes without something major happening in the next year or two.  They took some gambles over the past couple of years trying to assemble a world series capable team (they’ve done this before – twice!) and it didn’t work out.  So, change needed to happen – rebuilding needed to begin.  Any fan of the Marlins could have predicted this.

So – what does this have to do with HR – or my company?

There is some huge wisdom in how the Marlins manage their talent finances that we can all learn from.  Let’s make no mistake about this – this is not Moneyball, in fact he might be the opposite of what Billy Beane had envisioned.  But, many would argue that the Marlins version, had worked out better, certainly from a results standpoint.  My question is – could this type of talent financing work in a corporate setting, or in your company?

Think about it that for a minute.

How could you make this happen?  I tend to think about it in terms of your high priced – A talent – not necessarily your executives.  What if your company was looking to drive and increase in market share in your industry.  Your main competitor currently had 50% of the market, while you only had 25%, with the other 25% spread amongst competitors 3-10.  Your goal was to grow your market share to 35% in 3 years – a large task for most companies in most industries.  Conventional corporate wisdom would work this way – Step 1 – we hire away one of competitor 1’s executives to tell how they did it; Step 2 – The new executive brings over as many people as he can get, usually starting with a solid player from competitor 1’s marketing department; Step 3 – you re-brand and spend a crap ton of money; Step 4 – 3 years later you’re at 28% market share with less margins. Ouch.

If the Marlins management ran your company here is what they would do:

Step 1 – Go hire the top sales person from your main competitors – all of your competitors and pay them double what they are making.

Step 2 – Go directly after every single account the competitors have with the inside knowledge you just gained in your sales staff.

Step 3 – Build their market share to 40% within 24 months

Step 4 – Systematically let go of all of their high priced sales people – losing about 5% of their market share.

Step 5 – At 3 year mark be at their 35% market share with roughly the same payroll as they had 3 years prior.

I mean it could happen that way!

We/HR/Management tend to believe we have to keep our people on forever – even after they stop being rock stars, but are still getting paid like rock stars.  The Marlins have said, ‘look this is a dual benefit play – we get our championships and the players gets a giant check, then we both move on’.  It’s not “traditional” so everyone tends to think its wrong.  I don’t know if it’s right, but I’m sure their are some Chicago Cub fans that would take 2 World Series championships in the last 15 years!

Give Your Employees Permission

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It’s pretty widely accepted that referral hires are the best hires that most companies make.  Pretty easy math equation on why :

Good Employee + wanting to stay a good employee + employee’s reputation = usually good people they recommend to HR/Recruiting to go after and hire

I’m like Einstein when it comes to HR math!

But, there is one piece to the equation that most all companies struggle with.  We don’t get enough of these referrals!

So, we look at our referral process. Then we go out and look at our collateral material associated with our referral program. Then we look at using technology to automate our referral program. Then we look at the numbers again – and again – we still don’t have enough of these hires…

There is still one thing we keep forgetting to do – it’s simple – which is probably why we “assume” we don’t need to do it.  We/You need to give your employees permission to do share this with their personal and professional networks – each and every time you want a referral for a certain position.

You know what we do really well in HR?  Roll-outs! We do!  We can roll-out the shit of just about any program you can think of.  We love roll-outs. We live for roll-outs! You know what we do really bad in HR?  Continuing programs after we roll them out!  The truth sucks because it’s true.

How can you get more referrals?

1.  Have a program (don’t laugh, too many still don’t)

2. When you want a referral – ask for it – each and every time.  (We tend to roll out the referral program and assume each time we post a position our employees will just naturally share it with potential referrals – they don’t)

3.  When asking for a referral specifically “Give Permission” to your employees to share this with their Facebook friends, their LinkedIn Professional network and their Tweeps. (Specifically)

BEST PRACTICE ALERT: Create email groups by department, when you get an opening for that department send an email to the group with your standard referral “permission” language – plus one other item – an easy cut and paste hyperlink that they can post or send to their networks with specific instructions on where to paste/send it to.

Giving someone “permission” to do something strikes a trigger in their mind to actually do it – it has something to do with psychology or something, I don’t know I’m an HR pro, but suffice to say it works!  Think about it, like you were a 5 year old.  Your parents tell you, you can’t ride your Green Machine in the street.  Then, one day, Mom is out getting her nails done and your Dad sees you doing circles in the driveway on that Green Machine and he goes “Hey, why don’t you take that into the street?!”  What do you do?  You immediately take that bad boy for a ride in the street! Dad “gave you permission” and you ran with it!

Referrals might be a “little” different but I’ve actually had conversation with employees who’ve said “Oh! It’s OK if I send this to my friends and family?”  Like our posting was sort of corporate secret or something!  We shouldn’t assume.  You’ll be surprised.

Now – go give your employees permission to get you some referrals!

 

 

9 Wishes for New HR & Talent Professionals

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My favorite part of the fall conference season is the fact that I get to meet a ton of HR and Talent Pros and connect.  Of those, the ones I have the most fun talking to is the newbies!   They are still in that point in their career where HR is fun and exciting and they get jazzed up talking about the stuff we (older, I mean experienced HR Pros) no longer find as fascinating.   I usually find myself answering questions – you know the type – “how would you handle…?” or “what would you do…?”, etc.  Which gives me an opportunity to tell them here’s how I screwed it up when I first started, and here’s how I handle it now – which are usually very different.  So, as I reflect on this season I’ve come away with a few wishes for my fellow HR and Recruiting Pros who are just joining us on this journey.

I wish new…

 …HR pros would unlock the doors to their departments – wait – change that – actually take off the doors all together.

 …Corporate recruiters would make more outgoing calls then they get incoming calls.

 …HR pros would spend more than 50% of their time out of their office/cube walking around talking to employees and hiring managers.

 …Recruiters would never feel like it’s their responsibility to staff their companies – it’s not – it’s your leaders of your departments – you’re just the tool they use to accomplish it – but they’ve got to own it – ultimately they make the final decision, not you, which means it’s there responsibility.

 …HR pros never learn “soft” HR math.

 …Recruiters learn how to recruit before they learn how to build recruitment processes.

 …HR pros spend their first month (or more) in position actually working in operations, marketing and finance – it will make you a better HR pro!

 …Recruiters would build relationships with their main competition’s recruiters – this will make you better as well – and you won’t be giving away the corporate secrets!

 …HR pros would build more influence in their organizations than more process – one is easier to do – which is why you don’t do the other.

I guess I wish all of this stuff, because it’s stuff that I had to learn over time – and if I could have one wish for our newbie HR and Talent peers it would be they could have all of this knowledge up front as they come in the door.  Because I can’t have that wish – I’ll throw out a challenge to my HR brothers and sisters – take a new HR pro under your wing – it doesn’t have to be in your organization – just find one and do it.  Here’s what you’ll find – they will help you more than you’ll probably help them – helping a newbie will energize yourself, help you slow down on your own decision making and reflect on what you’re doing and its importance – and because of your experience it will allow you to go out and make some adjustments to your own shop that will have great impact to your business!

The Law of Diminishing Title Return

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“I don’t care what you call me – my title is meaningless!”

Have you heard this?  If you’re in HR long enough – you’ll hear this a number of times over your career.  You know who says this?  People making a lot of money, people who’ve been out of work and are just happy to have a job, or people who’ve been around so long they actually really don’t care anymore!

Titles are important to people – although that is not the politically correct thing to say – so hardly ever hear the truth when it comes to titles.  Don’t think titles are important in your organization – try changing some – try going, let’s say, backwards in title!  You’ll see how important it is.  The issue I see in many organizations is the concept of Title Creep.  When for whatever reason, usually the business not doing well so you don’t have money to give out, the organization starts giving out titles over raises (“Hey, Janie, doesn’t look like we have any budget money to give you your 3% raise this year, but gosh golly you sure our important to us, so we want to “promote” you to Manager!).  And you know what? That crap works for a little while! Because people love titles!

Just look at banks – they’re really funny about titles!  Everyone at a bank – and I mean everyone – is either a Vice President or a President!  Banks really have screwed up the title thing worse than any other industry.  You will see banks now that the person’s title will be Vice President – Manager of Recruiting, or Sr. Vice President – Director of Human Resources – and I wonder to myself – “So, what is it – VP or Director!? What are you?”  This is where titles go very wrong and stop having value to the individual.

The main problem with title creep is when it’s used and people feel because they have, or have had, a certain title that means they should get that title in another organization.  I interviewed a sharp person a while back who had graduated from college in HR and over the course of about 6 years went from HR Generalist, to HR Manager, to HR Director, to VP of HR in the same organization. Impressive, right?  But wait, there’s more to the story!  She lost her position do to an organizational change (that’s what we call getting fired today so the GenY’s and millennials still feel it’s not their fault) and was struggling finding another “executive” role in HR.  I asked her a couple of questions:

1. From your beginning as an HR Generalist to your final role as VP of HR, how many direct reports did you pick up?

              A: 1

2. From your HR Gen role to VP role – what responsibilities did you pick up?

             A: Well…I still do everything, but I also am now more strategic.

Oh, boy.  So, I got to share with her some advice. Stop looking for an “executive” role, find a solid HR Gen or HR Manager role – you my friend are no VP of HR!   Title Creep really hurt her.

In HR we have a major role in this concept of Diminishing Returns in regards to Titles, and that role should be to stop handing out titles like it’s candy from the bowl on the receptionist’s desk at the front door.  We should protect titles and not allow them to diluted, because most people do like them, and they can be a valuable tool in your compensation tool box, but only if you don’t use them very often.

BTW – best title ever is from K Swiss Kenny Powers commercials!

New Recruiting Vendor – Intomi

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One of the most unique Recruiting vendors I saw when I was at HR Tech a few weeks back was a company out France.  The name of the company is Intomi – pronounced – “In-To-Me” and they’ve come up with a product that I dare say might change Corporate Recruiting as we know it, and when I say they’ve come up with something no one else has – believe me – NO One is selling this product!

Think about what is the one thing that Corporate recruiting is missing – what is it?

No, it’s not sourcing tools – they’ve got plenty of those.

No, it’s not screening tools – that market is flooded.

No, it’s not ATS’s, or CRM’s, or branding – and you’re not going to guess this because their product is unlike anything that has ever been scene in corporate recruiting.

What Intomi does is quite simple, which makes it even that more powerful.  That’s really what every recruiting and HR vendor should be striving for – designing a product so simple that it needs no explanation – just pick it up or turn it on – and go.  Simple is difficult to do – Intomi gets this!  I’m sure it was the simplicity of their design that first drew me into their product, but it was the functionality that kept me looking at it.

In 20 years of being in the talent/HR space I’ve never seen a product that had such an immediate impact to the amount of talent that was brought into our organization, and was so cost effective at the same time.  When job boards first came out 20+ years ago – that was a big deal – and over the past 10 years social tools have really changed the game – but all of these things had one fundamental flaw – Intomi changes all of that – it eliminates the one struggle that corporate recruiting still has.

Intomi does one thing and one thing only – Intomi will immediately separate you from your competition – as you can tell I’m a huge fan!  So, what is this super simple, super powerful solution to all of your recruiting problems?

Intome forces your recruiters to physically pick up the phone and dial the number of a candidate – and won’t allow the recruiter to hang up the phone until they say at least one word. Freaking Brilliant!   This will be HR Tech’s 2013 Award winner for sure!   How does Intome do this?  Glad you asked.  They use something called metrics – which actually tracks the number of calls a recruiter makes, how long they spent on the phone and how many qualified screened candidate profiles they send on to hiring managers.  If those metrics aren’t met, the recruiter is then coached and if they are continually not met, Intome will fire them for you!  I’m just really in love with this product!

I’m not their sales person – but if you want more information on this product, then you have no idea what you’re doing in recruiting.

 

Talent is a Zero Sum Game

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There is a mathematical concept called Zero-Sum, what is says is basically where one person, organization, etc. will gain, there is an equal loss by another person, organization, etc. of that exact same amount.   An example might be market share of a corporation – if GM has 17% market share of U.S. car buyers, and it gains 1%, to 18% total market share – the 1% came at the expense of their competition.  GM didn’t miraculously grow/build/birth 1% of new car buyers out of thin air. It’s a Zero-Sum game, their competition loses the exact same number of car buyers that GM gained – you rob Peter to pay Paul. 

Hiring Managers never get this!

Talent and HR Pros feel this all the time.  Hard to fill requisition, limited talent pool and the hiring managers makes you feel like you should be able to go down to the vending machine and just select C-3 and another Software Developer will fall down into your hands, ready to work! (by the way C-3 in my office is Peanut Butter M&M’s which seem to make everything better at almost any time of the day!) But it’s not that easy, right?!  Talent is a Zero-Sum game.  Now, I know my OD and Training friends will be all – “No it’s not! We can grow and build new Talent!”  Not really – not in the time I need it – which is NOW – or – YESTERDAY!  That’s my timing – it’s not 3 months or a year down the road.

That’s are main problem in Talent in 99.9% of organizations, are lack of organizational understanding of the simple concept of Zero-Sum.  If organizations really got this concept they would have robust, funded, succession planning programs that would be attempting to build future talent, to expand their internal talent pools,  but we don’t.  Less than 1% of organizations in the world really fund succession the way it needs to be funded if you want to be self sufficient in terms of talent.  Organizationally, you’re paying either way – you either pay the money up front in terms of talent attraction, or you can pay it on the backside with retention and training – so why does almost every company choose the front side of this equation?  I think most choose the talent attraction spend because we (HR/Talent/OD) have done a horrible job of working with our finance teams to come up with a plan that shows our organization there’s a better way to spend our money.  We haven’t given our leadership a better option – so we/they continue to choose to do more of the same.

Some could argue that we are currently in a less than Zero-Sum game with our employee demographics.  We have more of our population reaching retirement age, than we have potential workforce reaching the age/education/experience to replace our leaving workforce.  But, even at zero – you still see the problem we are in, it’s never ending, it’s just how do you choose to play the game.  I like thinking about our HR/Talent problems in terms of mathematics, because it gives me the feeling there are actually solutions and it’s just a matter of building the solution/process.   I think most will argue that the solution is to do all of it in combination – some attraction, some succession, some training – which I agree with, but I think the percentages of your current combination need to change if you truly want to get off the treadmill.

 

Before The Rose Ceremony – Interviewing beyond Selection

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Join Dawn Burke and I for our October webinar (sponsored by the good folks at HireVue) – “Before the Rose Ceremony: How to Become an Employer of Choice Through Your Interview Process”, where we’ll explore the following and compare it to the meat show on the Bachelor/Bachelorette:

  1. What pre-interview, pre-phone screen features subconsciously tell a candidate that you’re different from your competitors and help you plant the initial “why you want to work here” seed
  2. The 3 things that need to be present in your initial outreach to a candidate to prevent their BS meter from exploding (aka momentum killers).
  3. 5 Key Features of the live interview process at your company that sell your culture as a Great Place to Work – regardless if you hire the candidate or not.
  4. FOT’s Top 7 Interview Questions for uncovering great info and selling the candidate on your company as an employer of choice – they won’t even realize you’re doing it (and you’ll get great info as a result).
  5. SEND IN YOUR LESS ATTRACTIVE FRIENDS TO GIVE APPROVAL! (That’s FOT in this case.)  We’ll end with a simple audit process that you can use to determine if your interview process is contributing as much as it should toward your company being viewed as a destination of choice for candidates.

Join us for “Before the Rose Ceremony” and install a couple of the interview process features we discuss, and candidates will start to view you less as the Motel 6 and more like the Ritz.  Or wherever it is that feels like an upgrade from the Motel 6.  Maybe the LaQuinta?  The W?  You tell us.  The point is when you say no to people and they still love you, you’ve arrived – just like the bachelor or the bachelorette.  We think the way you interview candidates can help you accomplish that in the recruiting process.

**This program,ORG-PROGRAM-124798, has been approved for 1.00 (General ) recertification credit hours toward PHR, SPHR and GPHR recertification through the HR Certification Institute.

REGISTER TODAY

5 Steps To Becoming the Most Liked HR Pro Ever!

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The old adage “I’d rather be respected, than liked” was made up by people who didn’t have any friends!  And it’s been perpetuated for centuries by HR Pros who didn’t think it was professional to have friends in their organizations.  “I’m not their friend, Tim – I’m in HR – there is a reason we lock the doors to our department.”

I look it this a bit differently – make friends first.  That is all.  No, “then” or “after that” – just make friends.  Do you know why HR Pros don’t make friends with employees? Yes – you do – because “We don’t want to fire our friends!” or “We need to remain impartial” or “I’m stupid” (I made that last one up – which if your stupid you probably didn’t know).   The reality is, we do things attempting to stop stuff that probably will never happen.  When is the last time you truly had to fire a friend?  “Never – because I don’t have friends that work for me!” No, really, when? Most of us would say, “Never”.

The problem with not allowing yourself to be friends with non-HR employees is that you lose a major source of influence within your organization.  Also, it sucks eating at your desk everyday.  And you decrease your eventual dating pool. But, really it’s the influence!  So, here are 5 steps you can do to be more liked and make more friends at work:

1.  Stop being a know it all.  HR people act like they created Congress – everything is legal this or legal that – stop it – be normal. 99% of stuff HR thinks might happen, doesn’t happen – trying to mitigate 100% of risk in your organization makes people hate you – and it doesn’t help you do your job better.

2. Make a fool out of yourself once in a while.  You’re not that important that you have to act like Mr. Manners all the time. Having employees laugh at you, because you did something silly, foolish and/or crazy – will help them believe you might be normal.

3. Hang out with the smokers! Let’s face it smokers are cool and know everything that goes on in your organization – you want them as friends.  I don’t smoke because it’s gross, smells and will kill you – but I love hanging with smokers – especially if they have one of those voice boxes they talk about of!

4. Go out to Lunch.  Preferably not with the smokers because that isn’t appetizing at all.

5. Kiss another employee on the mouth at the office Christmas party! Kidding, just making sure you were paying attention.  Don’t do this – unless you’re really drunk and want to leave a legacy. Here’s the real #5 – Spend 50% of your time away from your desk – visiting employees and hiring managers – even the ones you don’t like.  This will change your professional life forever.

Being liked in HR is important it allows you to do your job in a much more efficient manner than when people don’t want you around.  It’s not about respect – you can have both – and given the choice of having respect and being hated, or having respect and being liked – well, let’s just say I hang out with smokers.

 

 

 

LinkedIn’s Talent Brand Index Could be Trouble!

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Ok, let’s be as transparent as possible:

1. I’m pissed at LinkedIn like a scorned girlfriend because they won’t let me buy their corporate version LinkedIn Recruiter (not that I need it – I know you can do x-ray searches or use a great product like Scavado for a fraction of the price and get the same info. – but it’s the racialist mentality of it all – “No, you can’t have it because your a bad staffing company and we only give it to good corporate recruiters) – see – scorned girlfriend.

2.  I use LinkedIn every day. Mostly to recruit employees from one company to another company, and someone pays me to do this.

3. I like using LinkedIn – solid U/I and a great recruiting tool, inexpensive.  (we call that a triple threat)

OK – On with the show!

Last week LinkedIn announced a new product at their annual Talent Connect conference, called Talent Brand Index or BrandConnect – or something like that – as you can see I wasn’t invited (which I’m actually not pissed about – I mean I’d like to go – but it’s not like the scorned girlfriend thing). Basically this is a tool/measure of how much your brand is engaged on the LinkedIn site – but it has a number of components baked into the algorithm that make this less than black and white.  I have 3 opinions of this announcement that range in 3 very different psychosis:

Pessimistic View (LinkedIn Haters)

Holy crap – this is just another way for LinkedIn to hold companies hostage over their brand!  Basically, the Talent Brand Index, if I want a higher score, forces me to encourage my employees to get on LinkedIn – the more employees I have on, the higher score I get.  Also, the more products I buy from LinkedIn, the higher my score.  I don’t want my employees to be on LinkedIn because my competition will be pimping them non-stop and I’m bound to lose some.  Plus, they keep using the words “Brand Engagement” that invariably will get confused by people as my “employee engagement” when it really has no correlation.

Optimistic View (LinkedIn Lovers)

This tool is great at showing me where I can increase my “engagement” of my brand within the product.  We trust our employees and want them to network professionally and share our brand with as many people as possible – it’s good for them, it’s good for us.  We believe we have a great place to work and increasing our brand engagement on LinkedIn will only help our recruiting efforts.  Plus, this new tool really, for the first time, gives us great insight to how people outside of our company feel and interact with our employment brand.  It’s great data!

Pragmatic View (The Middle)

If you have a “great” work environment and strong employment brand (let’s say 10% of companies) this is wonderful.  You have low turnover, high employee engagement – this will only help you recruit more folks – and more employees you have on won’t hurt you because they aren’t leaving you.  The other 90% of companies could see some impact from this – if they go out and encourage their employees to actively get on LinkedIn, in hopes of raising your Brand Index score. You have pockets that aren’t pretty and you’ll have folks that get picked off by your competition.  This will then cause you more work.  It’s not to say those people wouldn’t leave on their own – some will, regardless, but I don’t want to throw them a job fair in the lobby of our building. Reality check – most HR shops/companies don’t have the people, the money or the desire to really move the needle on increasing their “LinkedIn Brand Index” score – so this will be a non-issue for most.

Final thought –

I would like those companies who really think this is a great deal to do just 1 thing for me. Will you do that?  Today, go to your CIO and tell them you are going to have the entire Software Development team put their profiles up on LinkedIn – because you want to raise your Brand Index score.  Then let me know the results – if you still have a job, or are conscious.

 

The 3 Places You’re Going in your Career

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You know that Career Path you’re currently on – I want to tell you to not get so concerned and uptight about where it’s going because the reality is – it will only go in 3 directions.  I was talking with a young HR pro last week and this person was super concerned about his career path – you know the concern – “I need to be an executive by 35 or my life is a failure” – and he was looking to me for advice.  So, I gave him my career path advice – get fired a couple of times and have your Mom promote you to President! Seems easy enough, I don’t know what all the concern is about.

The reality is – you have only 3 places you will go in your career path:

1. You’ll stay in position (No Move)

2. You’ll get promoted (Move Up)

3. You’ll get fired (Move you don’t want)

Someone might be thinking –  wait – you can have lateral movement or be demoted.  Demotion is being fired, you just couldn’t take the hint and leave.  Lateral move I consider staying in position or no move – all you did was change the color of your office, it’s the same thing.

I’ve gotten to the point in my career where I talk to younger people – just starting out in their career and I say stupid stuff like- “Ugh, these GenY and Millenials don’t get it – you have to put in your time and prove yourself – they’ve done nothing, but think they deserve to move up”.  Right? You say this stuff to don’t you!  Then I remember – I had the same freaking stupid goals – I wanted to be a VP by 35 or somehow I’d consider my life to be a failure (It didn’t happen until I was 38 – and by the time I got it – it no longer seemed important!).  Generations haven’t changed – young people have always want to move up faster than they should and believe they can handle it.

I envy people who have stayed in the same position for 20-30-40 years – COMPLETELY – envy.  To be satisfied with where you are at – not feel that need to push up or out – to chase something that in the end is meaningless – that is a feeling I don’t know – but would like to.   You know – HR Pros/Leaders contribute to this issue – we tell people they are on a career path, we feel the need to show them a career path – we make people feel like if they aren’t “chasing” their career path or climbing the ladder they are somehow less than others.  They aren’t.