Category Archives: Hiring

Should Corporate Recruiters Get Paid Salary & Commission?

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First, shoutout to @Hervbird21 (Recruister) on Twitter for starting this conversation (Editor’s Note: Hervbird21 I don’t know who you are but send me a note and I’ll share your LinkedIn if you’d like) Also, take a look at the Twitter thread as there are some exceptional recruiting thought leaders who had thoughts on this subject.

Link to the thread

I’ve written about this a number of times over the years, but with the recruiting market being so hot right now, I’ve actually had a number of Recruiter compensation calls with corporate TA leaders trying to figure out three main things: 1. How do we retain our recruiters; 2. How do I attract more recruiters; 3. How do we reward great recruiting performance?

First, I’m all in on the fact that recruiters should be paid in a pay-for-performance model. That doesn’t mean that corporate recruiters, agency recruiters, and RPO should all be paid the same way. All three of those roles are different and should be compensated based on what the organization needs from each recruiter.

Let’s take a look at the Pros and Cons of Performance Pay for Corporate Recruiters

Pros:

  • You get more of what you measure and more of what you reward.
  • Your best recruiters will be compensated more, and higher compensation is tied to longer tenure.
  • Low performers and internal recruiters who actually hate recruiting will hate it and self-select out.
  • It will most likely raise individual recruiting team member performance in the aggregate.

Cons:

  • You will most likely have turnover with this type of change
  • Potentially, you could get behaviors that aren’t team-oriented. (IE., senior recruiters not helping junior recruiters)
  • Potentially, you could lower your quality of candidates as recruiters move quickly to gain performance comp. (the quantity over quality argument)
  • It actually might increase your compensation budget, initially, until you can find the model that is most effective.

Okay, wait, why did I say “potentially” on the Cons? Primarily, because it truly depends on the model design. Just making a decision to pay more for hires is ridiculous and leads to bad outcomes. But, developing a model that rewards individual performance that is based on recruiting behaviors that lead to better hires, quickly, and in a team setting, well, now you diminish the negative outcomes of pay for performance.

How could we make pay for performance work for corporate recruiters?

I’m not trying to dump on all the folks who commented on “Quarterly Bonuses” but stop that! “Quarterly Bonus” really means, “I don’t want to be individually measured and held accountable, but I also want more money on top of my great base salary”. Quarterly bonuses in most corp TA shops are a joke. They are usually based on Hiring Manager satisfaction and days to fill, two of the most subject measures that have zero correlation to better recruiting.

Also, internal recruiting pay for performance is not just a modified agency or RPO model. Corporate recruiters do much more than just recruit in most TA departments, so if you reward them to just recruit, understand, you’re just standing up an in-house agency model. Your internal recruiting model for corporate has to be unique to the job.

Some thoughts and ideas:

– Spend a bunch of time deciding what you actually want from your recruiters and from your function as a whole. Those two things must be aligned.

– Before going to a pay for performance model you need to get your arms around your recruiting funnel data. Otherwise, you’re just guessing at what and who to reward.

– In most cases, you can’t make the rewards the same because recruiters have different requisition loads and levels of position. Also, in most cases, certain areas of your organization hire at different times. So, get ready to test and be flexible to do the right thing at the right time.

– It’s okay if a recruiter makes more than you think if the model is producing what you want it to produce. Too often I hear from TA leaders that are like, “Jill is making too much!” But, Jill it killing it and the top recruiter.

– If you can’t get your head around paying for hires, pay for the behaviors and activities that lead to more hires.

– Start with a month or quarter test, make sure during the test no one will lose money. The goal is to try and reach some sort of outcome of better performance, to see if it can work. If they are only concerned they might make less money, you won’t truly see what can work or not work.

– It’s not about quality or quantity. It’s about quality and quantity. I’ve never led a recruiting team in a corporate or agency where good recruiters would ever send a crappy candidate on purpose. That just doesn’t happen, normally. If it did, that recruiter didn’t belong on the team.

I don’t believe in recruiting “team” rewards as pay for performance in most cases. Most teams are not designed and measured for “team” performance, so many on the team are getting the reward for a few doing most of the heavy lifting. You can still have team rewards, but you truly have to think about how you reward your most effective recruiters, short and long-term.

I think the ideal ratio for compensation for corporate recruiters should be 75% base salary and 25% pay for performance, where your best top recruiters can make 125% of their normal total comp if they are killing it. As I mentioned above, you will have recruiters quit because you have “recruiters” on your team that didn’t take the job to recruit, but to administer a recruiting process and collect a nice base salary.

Okay, tell me what I missed in the comments or if you have a model that is working you would like to share with everyone!

HireVue launches the HR Industry’s First AI Explainability Statement!

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AI Explainability What?!

First, this is a big deal and I’ll explain what it all means and why you as an HR pro or Recruiting Pro should care.

AI is being built into almost every part of the HR and TA tech stack. Algorithms and Machine learning are having a massive impact on how we find, offer, develop, and promote talent in our workforces, so having an understanding of how this is happening is very important to the risk side of HR.

What is an AI Explainability Statement?

Basically, it’s the behind-the-scenes stuff you don’t think you want to know. It’s how the sausage is made, and it matters a great deal. You want to know that the tech you are using is reducing bias and not putting your company at risk of a lawsuit. You also want to know how and why your tech is doing what it’s doing.

HireVue didn’t have to do this. No one else has to this point. But, it’s important they lead with this as they probably have caught more flack than anyone else in our industry over how their technology was selecting one candidate over another based on some early testing they did with facial analysis technology, that they no longer use and haven’t in years.

What is HireVue’s AI Explainability Statement?

Okay, first, let me give you the overview because the actual statement is more like a white paper that is 29 pages long! Here’s the overview:

HireVue considers the ethical development of AI, candidate transparency and, privacy to be core values of the business. HireVue’s AI Explainability statement is the latest proactive step to ensure that its technology is at the forefront of emerging best practices in the use of HR hiring technologies. The Explainability Statement, together with previously commissioned independent audits, provides customers with meaningful information about the logic involved in HireVue’s technology. Together they are the latest tools to help companies understand the processing of personal data.

You can click here to read the full statement (and Yes, it’s worth a read if you’re using AI-based tools in your HR & TA Tech Stack!)

Why does this matter?

I’ll let the chief data scientist at HireVue explain:

Lindsey Zuloaga, Chief Data Scientist at HireVue: “Being at the forefront of defining the transparent and ethical use of AI and software is at the heart of what we do. Our mission is to create a level playing field for anyone seeking employment, reducing bias and providing organizations with a more diverse pool of talent. Deploying AI correctly and ethically, powers a significantly more consistent, less biased, more engaging screening process for recruiters and candidates alike. We believe there needs to be more transparency around its use in HR, this is why we’ve published our own AI Explainability statement, to best support our customers and educate the industry.”

Here’s what we know after using AI-based hiring tools for a few years now:

  1. AI does what it’s trained to do. So, if you train it inappropriately, it will act inappropriately.
  2. AI has the ability to significantly reduce bias and increase fairness in hiring as compared to manual processes where we just leave hiring to humans and our guts.
  3. We can constantly monitor and correct AI. We are less likely to constantly monitor and correct our human hiring managers.

Big Kudos to HireVue for being the first out of the gate to do something like this. They’ve taken a lot of criticism for some things they’ve built and tried in an attempt to make hiring better that didn’t go as they planned, but they’ve corrected and taken a lead within the industry from this learning. This is exactly what you want from a vendor you rely on to help you make consistently better hiring decisions.

Top Speed is Overrated in Recruiting!

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I have this tendency to get up on a soapbox and tell HR and TA leaders that measuring “Days to Fill” (Time to Fill, Time to Hire, Applicant to Hire, etc.) is a complete waste of time! I do this knowing that this is primarily the main recruiting metric used by the vast majority of organizations. So, I’m kind of calling them dumb, and I don’t like that, because that’s not what I believe!

I find the majority of HR & TA leaders to be hardworking, caring folks who want to do the right thing, but no one is showing them the “right” thing. I mean, I did in my book, but no one wants to read a full book!

Why is speed overrated in recruiting?

First, there is absolutely no correlation between how fast you got someone hired to how good of an employee they will be. Zero! Nil! Naught! None! So, you are measuring something, and telling people is massively important, but it has zero correlation to whether or not you hired someone that will be good for your company.

Awesome! Wow! Let’s hire faster! The faster we can get these walking zombies in here the faster we can fail! Yay! Fail faster! #WinkyFace

Second, I’ll give you that some sort of speed of recruiting metric as correlated to your industry benchmarks might be a good indicator to let you know how well your function is running or not running. Meaning, if your average days to fill is 40 and the industry benchmark is 30, you probably have some work to do. But, if you are at 29 and the benchmark is at 30, it doesn’t necessarily mean you are better at recruiting, just a bit faster.

Third, you can hire too fast. We tend to never think about all the false-positive hiring we do by moving too quickly. If we are rushing our process, we open the door to letting bad hires into the organization. We also open the door to filling roles before we can truly see what’s available in the market. Oh, Timmy is interested, let’s hire him quickly! And then the day after, Mary, applies and she’s much better, but you already hired Timmy.

Fourth, a large portion of the time in a day’s-to-fill metric isn’t even owned and controlled by recruiting. Hiring managers and the candidates themselves, control upwards of 50% of a time metric in any recruiting process.

Why do we focus so much on speed in recruiting?

Because “speed” is something c-suite executives get all excited about. If we are doing it faster, we must be doing it better. Plus, most c-suites think it takes too long to hire, so slower recruiting validates their belief that recruiting is broken. But, 99.99% of c-suites never recruited, so they are stupid. I mean, they are stupid about recruiting!

Because this is the metric we’ve always used to measure recruiting success in our organizations. Throughout the history of recruiting this is the metric that was measured, so this is the one we use. Kind of like how sports used metrics like points per game, and then advanced analytics came out, like plus/minus and now we look at older metrics as rudimentary in describing the performance of athletes.

Because we don’t know a better way to measure how or if we are successful in recruiting in our organizations. This is a tough one because we don’t know what we don’t know. I wish our ATS and recruiting technology vendors would do a better job of measuring and teaching advanced metrics to TA leaders. (Shoutout to vendors like SmartRecruiters, Greenhouse, Gem, and Predictive Hire – they all have some good stuff if you choose to use it.) The reality is, you would make your technology stickier if you did this.

What should recruiting focus on, rather than speed?

You know what’s coming. The funnel dummy!

We have certain actions that lead directly to recruiting success in our organizations if we analyze our recruiting funnels. The recruiting funnel will show you directly individual and team performance. But, let’s set that aside for a second. The funnel will ultimately give your organization the first truth about recruiting it’s ever had, the actual capacity it can rely on in recruiting. Your c-suite is dying to know this, and all you can tell them is, “we’ll work faster and longer and harder”.

Knowing your actual recruiting capacity will set you free and make you look like a genius as compared to every other TA leader that has become before you in your organization.

Cost of hire by source. Source effectiveness. Quality of applicant by Source (No, not the quality of hire, that’s not a TA metric), candidate experience metrics, recruiter experience metrics, etc.

Most shops run a classic 6-3-1 funnel. Meaning, it takes six screened candidates passed onto a hiring manager, who will then choose three of those candidates to interview, and then make an offer to one. If you take the billions of hires done at all organizations each year, it will almost always, on average, fall into a 6-3-1 model. Top of funnel, I.E., how many applicants to find six screened candidates, is a different story. That is dependent on a number of variables.

So, should you stop focusing on speed?

Yes. And, No.

Yes, you should stop focusing on speed if you are in a cycle where this year’s recruiting speed goal was to reduce your days to fill from 37.1 days to 36.8 days. At that point, your speed goal is worthless. You are only incrementally getting faster and you’ll see no real positive outcome from such a small time savings, even at enterprise and a million hires. Yes, I know the math says different at scale, but you are also forgetting the most important part. THERE. IS. NO. CORRELATION. BETWEEN. SPEED. AND. QUALITY. IN. RECRUITING!

No, you should not stop if you know your recruiting is flat-out broken and you are not even in the ballpark from a speed perspective. If it’s taking you 50 days to fill a position that your competition is doing in 25 days, you’re broken, and while speed isn’t the cure to your ills, you’ve got to catch up on the process side of things.

Okay TA Peeps! Tell me I’m wrong in the comments!

Do you want to find more happiness at work? Here’s how!

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In 1942 Viktor Frankl, a prominent Jewish psychiatrist, was taken to a Nazi concentration camp with his wife and parents. Three years later, when his camp was liberated, his pregnant wife and parents had already been killed by the Nazis. He survived and in 1946 went on to write the book, “Man’s Search For Meaning“. In this great book, Frankl writes:

“It is the very pursuit of happiness that thwarts happiness.”

What Frankl knew was that you can’t make happiness out of something outside yourself. Riding a Jetski doesn’t make you happy. You decide to be happy while doing that activity, but you could as easily decide to be angry or sad while doing this activity (although Daniel Tosh would disagree!). Frankl also wrote in Man’s Search for Meaning, “Everything can be taken from a man but one thing, the last of the human freedoms — to choose one’s attitude in any given set of circumstances, to choose one’s own way.”

I get asked frequently by leaders about how they can make their employees or workplace happier.  I want to tell them about Frankl’s research and what he learned in the concentration camps. I want to tell them that you can’t make your employees happy. They have to decide they want to be happy, first. But, I don’t, people don’t want to hear the truth.

Coming up with ‘things’ isn’t going to make your employees happy. You might provide free lunch, which some will really like, but it also might make someone struggling with their weight, very depressed. You might give extra time off and most of your employees will love it, but those who define themselves by their work will find this a burden.

Ultimately, I think people tend to swing a certain way on the emotional scale. Some are usually happier than others. Some relish in being angry or depressed, it’s their comfort zone. They don’t know how to be any other way. Instead of working to ‘make’ people happy, spend your time selecting happy people to come work for you.

In the middle of a concentration camp, the most horrific experiences imaginable, Frankl witnessed people who made the decision to be happy. Maybe they were happy to have one more day on earth. Maybe they were happy because, like Frankl, they discovered that the Nazis could take everything from them except their mind.

Provide the best work environment that you can. Continue to try and make it better with the resources you have. Give meaning to the work and the things you do. Every organization has this, no matter what you do at your company. Don’t pursue happiness, it’s a fleeting emotion that is impossible to maintain. Pursue being the best organization you can be. It doesn’t mean you have to be someone you’re not. Just be ‘you’, and find others that like ‘you.’

It’s Actually Easy to Hire the Greatest Talent! Here’s How!

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If you had the best technology, the best recruiting talent, best assessment science, great hiring managers who were visionaries, charismatic, and engaged, if you led the market in total compensation and had amazing perks, then hiring the greatest talent in the world is simple.

The formula is simple. 

The hard part of hiring is doing it at scale when you don’t have all those advantages. 

General Motors is playing catch up with Tesla. Is Tesla better than GM? Hard question to answer because Tesla is making a fraction of the cars per year that GM is making. It’s actually way easier to make an expensive low volume automobile than to make a million competitively priced automobiles per year. Tesla sells to a tiny fraction of the world, the elite of the elite. GM sells to the masses and provides automobiles that way more people can afford. 

Building a hiring process for the masses is difficult.

You now bring in competition, and at that level, candidates have more choices, brands are harder to differentiate, etc. You now have to do “other” stuff to get candidates to accept your offer. Being the best, paying the most, having the best tools and products, and the best leaders make it super easy to hire the best.

So, what’s the use of even trying to hire great talent if we aren’t the best?

That’s the right question!

First, it’s easy to hire the greatest talent, but we f*ck it up constantly because we actually suck at knowing who the greatest talent is! We are actually exceptional at picking good talent that we really like. But we suck at actually knowing who’s the best and then hiring them.

This means, if you become exceptional at knowing who is the best, you can actually pick off some really great talent, because those with all the power, all the resources, get cocky. They don’t do all the work they could. Often they assume someone is the best, without really doing the work. There’s this weird corporate psychological thing that happens. Basically, the thought process is, “if I’m here, I must be great, so if I find someone who’s like me or better than me, they also must be great”.

The problem is, just because you work for an outlier brand has no correlation to the fact you’re great. You may be great, or you may have just won the job lottery.

So, what did we learn?

Hiring great talent is super easy. But, it’s also not.

Want a Smarter Workforce? Hire More Gay Dudes!

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Okay, before the entire LGBTQ community becomes unglued for me saying “dudes” and not every segment of the LGBTQ community, you have to understand the study we’ll dig into below! In this study, gay men stood out as extremely high academic achievers over every other part of society, gay or straight, and other genders.

From the Washington Post:

In new research made possible by questions recently added to U.S. household surveys, I found that gay men achieve stunning success across every level of higher education. This accomplishment comes even as men’s overall college completion rates have fallen further behind women’s for every generation born since the 1960s.

I found, for example, that about 52 percent of gay men, age 25 or older in the United States have a bachelor’s degree. For context, about 36 percent of U.S. adults 25 or older have a bachelor’s; this ranks the United States ninth in the world in college completion. If America’s gay men, however, formed their own country, it would be the world’s most highly educated by far.

Organizations are constantly searching for the “silver bullet” when it comes to talent. Every so often some research comes along and says, “Hey, over here, we found a silver bullet!” The ironic part of this silver bullet is I think most organizations will ignore it, even though it’s fairly straightforward and clear. Why? Normal bias, primarily, that gay people of all genders have faced when it comes to hiring.

Why are Gay men off the charts when it comes to achieving academic success?

This is where it gets interesting because the reasons can be somewhat subjective, but they actually feel accurate. If you’re a gay boy growing up in America, in public school, you are in for a tough life of bullying. You can’t control that. What can you control? You can control how well you do in school.

Who do teachers love? Kids who care about what they are teaching and do well. Gay kids who aren’t widely accepted by their straight classmates, find a higher level of acceptance from teachers, especially when they are high performers. So, I can control the asshole bullies, but I can control how much I study. It’s a unique form of resilience to be sure. “I became smart and worked super hard at school because that was my avenue of acceptance within public education.”

And, as it turns out, doing well academically in high school, leads to more opportunity in college where gay kids find even more acceptance in a predominately liberal higher education system. The flywheel keeps turning, and the gay smart kids, become even smarter gay young men, who then move into the corporate world as high achievers.

But, now these intelligent, high-performing gay men, also have a community of their own who can support and care for each other in a professional capacity. Recommendations for jobs and promotions, inside information on projects, sharing of creative ideas, etc. The “Old Boy” network, becomes the “Not So Old Gay Boy Network”. Don’t hate, you taught them the system!

Just because you’re smart and gay doesn’t stop bias.

It’s still far easier in our world to be a straight white man than a super-smart gay white man, for the most part. The interesting part of the study was that gay men of all ethnicities have shown this academic prowess. It’s not just a white male thing, it’s a brown male thing, a black male thing. Turns out, gay men of all colors, achieve higher levels of academic success, leading to higher levels of professional success.

It pains me that gay kids have to deal with bullies in school. That any kid has to deal with bullies is awful, but when you’re “different” than the majority of your peer group, it can be especially cruel. I love that on average gay boys have found an outlet in academics because that will lead to way more good outcomes than bad.

I’ll go back to this one quote that I think is very powerful: If America’s gay men formed their own country it would be the most highly educated country in the world! In. The. World. I’m also guessing that would be a pretty amazing country to live in.

Finally! Elon Musk Weighs In on America’s Birth Rate Crisis!

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Say what you want about Elon Musk, he tends to be years ahead of the curve around what the world will want and need. I get it, he’s a polarizing figure, people either love him or hate him. I don’t own a Tesla, and I don’t really have the pull to want one, but I get the fascination. I get the fascination with building a company around private space travel, and he just recently said he could care less about electric cars because he now wants to build “real” robots like the ones Will Smith fought in iRobot!

BTW, I totally want my own Tesla Robot. The friend that will always be there for you and I would get the algorithm where they never try to give me life advice, just support my craziness! Also, my “Tesbot” will have an English accent, because I’m a dumb American and I really like that accent.

Elon’s robot idea came partly because of a real-world problem he faces, and truly all of us are facing at this moment, around talent shortages. He needs workers to build EVs and Rocketships. For a dude that doesn’t put limits on what is possible, it seems almost impossible to hire great, productive workers, who enjoy that type of work. So, let’s build robots!

Elon came out recently to clarify the real problem we have in America, really most industrialized countrys’, in that our birth rate is a major economic problem no one is paying attention to:

He went on to talk about world population estimates, etc., and the trends we are on are not positive when we truly look way out into the future. The problem is, in almost every country, our political systems are not built to address the future, they are built to address the next election cycle.

If you voted for Trump in the last election, you probably believe we have a “major” problem at our border to the south with immigrants flooding into our country. Honestly, we should be hoping immigrants are flooding into this country because we need them to work in all the jobs that Americans are refusing to work in!

We do have an immigration problem! The problem is, we don’t allow enough immigrants to come into our country and work legally, pay taxes, and be a part of this great experiment we call America. I’m not a liberal. I’m a raging moderate who sees what is really going on in businesses across America! We need more workers! Or, as Elon believes, more robots…

What are potential solutions for our birth rate crisis?

1. Pay people to have more babies.

You know, stuff like paid family leave and tax incentives to have more children, great education and paid daycare, etc. Let’s make it easy for families to have great families. Right now, in America, having kids is a wealth deterrent for people.

2. Massively expand immigration.

This is not a scarcity problem. Immigrants are not taking jobs away from Americans. We have way more jobs than we have Americans! Plus, immigrants now have more options than coming to America, since there are about 20 other countries with worse birth rate issues than we have. We are now in competition for immigrant talent, skilled and unskilled, and we have half our population who still are being told by politicians that immigrants are bad.

3. Help Elon build his robots!

Honestly, because of our birth rate crisis, if Elon doesn’t get there first, someone else will. We have already seen so many jobs get eaten up by automation and robotics and it’s not stopping, it’s accelerating. Self-driving semi-trucks. Touch screens to order your Big Mac. Self-checkout lanes at the grocery store. Etc. The problem is, robots are only good at certain things, and we still need humans for a lot. Unless Elon figures out my Tesbot and then look out! Timmy is going on vacation!

Talent Hoarding is Real! And it’s getting worse…

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Talent hoarding has been around since the beginning of time. If you were good at hunting and gathering, some bigger stronger caveman was going to keep you around and not let some other cavemen lure you away!

In today’s world, talent hoarding begins when a manager doesn’t identify someone who works for them as promotable when they most likely are. The organization uses its leaders to understand who is ready for that next-level position. Certain managers, tend not to openly report they have such a candidate in their group, so they can keep that talent performing for them. This makes their life easier.

But, let’s not just blame these managers of people. There’s another organizational design issue that causes talent hoarding. Manager performance, and often parts of their compensation, are based on “team performance”. That being the case, it’s to a manager’s advantage, and the team’s advantage to keep talent. Almost no organizations incentive managers to promote people off their team into other parts of the organization.

There was a study just released in 2022, appropriately titled, “Talent Hoarding in Organizations” that showed that:

“Temporary reductions of talent hoarding increase worker’s applications for promotions by 123%. Marginal applicants, who would not have applied in the presence of talent hoarding, are three times as likely as average applicants to land a promotion.”

What the study determined, was that if you did not have any barrier to letting someone apply for promotion, your way more likely to be promoted! Things like you must first have your manager sign-off on your readiness, or things like having managers put names forward, etc.

Organizationally, we know also that talent hoarding often pushes talent to leave. Basically, if you aren’t going to promote me, I’ll use the free market to get a promotion somewhere else. In a talent market, as we have right now, that is happening at a massive scale. We see organizations implementing new internal mobility strategies to help counteract this, but it’s barely making a dent still, primarily because most of these strategies still rely on some sort of manager performance metric to allow someone to move internally.

Can we eliminate or reduce talent hoarding?

Short answer, yes. The longer answer, it’s hard!

First, we are talking about centuries of institutional dynamics at play. Generation after generation of leaders were raised under this framework. Thus, we have major change management issues to conquer.

Second, we would need to eliminate the negative side, or at least counteract the negative side of team promotion, with a positive side for the manager and team. This is the “coaching tree” analogy. Great coaches hire assistants and teach them how to be great coaches and those coaches go on to peer level roles. When you talk about the greatest sports coaches of all time, one major factor is their coaching tree. How many other coaches did they create? And, how good were those coaches?

If we can find a way to reward, and not punish, managers for promoting talent within the organization, which is greater than the reward for keeping great talent, we will have a much better chance at stopping talent hoarding. That is difficult. I don’t think I’ve ever heard of an organization that has figured out the value of the theoretical “coaching tree” for a manager. Meaning, if I promote someone off my team, what is that worth to me, as the manager?

It’s a hard question to answer because it’s very specific to position and organization. If I’m at Apple and I “grow” a new Engineering Manager, from a Software Engineer, that I’ve mentored, there is considerable value in that happening! If I’m managing a fast food restaurant and mentor an hourly worker into a salaried manager, that is less valuable, by dollar amount, but still very valuable to the organization.

The reality is, you have no shot if you don’t try and answer that value equation!

You can have some success, by just eliminating all barriers to promotion and allowing anyone to apply. You will still have some that won’t, as managers will still have formal and informal influence over those that work for them. So, it’s not perfect. But, you’ll get more, than by asking your managers alone.

Also, just eliminating barriers could create a gender issue as we know through many studies men or more willing to apply to jobs they aren’t qualified for than women, so barrier elimination will most likely get you more male applicants, who you will promote, leaving more women behind. We actually need our leaders to help us identify and promote our great female next-level hires.

When talent is scarce, like it is now, talent hoarding will be worse. Talent hoarding is bad for your culture and it’s bad for your talent. And it’s happening right now in your organization.

You Do NOT Have a Short-term Recruiting Problem!

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I’ve been trying to preach this for what seems like forever, but we tend to be so short-term focused in almost every business process and decision we make in the modern world. How can we make a profit today, F the future!

Your current recruiting issue is not a short-term problem that eventually will just go away on its own. Also, your current recruiting problem has nothing to do with the “Great Resignation”. That was a made-up term by a professor trying to explain a short-term issue we were currently facing, amongst a much larger long-term problem.

The “Great Resignation” is simple economics. We have more jobs than people looking for jobs, so workers have “buying” power. Other companies will pay me more for the same work or give me a promotion with my lessor skills because they have no other options. Straightforward supply and demand economics.

We are already seeing the “economics” of this situation play itself out with higher inflation driven by wage growth and we’ll see more and more adjustments made by organizations to figure it out. Most likely that involves technology replacing parts of jobs, adding human capacity through technology, etc. Organizations can only eat so much in wages before they’ll find a “better” way to skin the cat.

Our problem IS and will continue to be, we have a shrinking workforce that we are doing absolutely nothing to turn that demographic fact around.

Peter Shanosky, wrote a good piece on our aging issue:

The median age in the United States is currently 38.1 years old — a number that reflects a consistent rise in recent years, but not too terrible. That number has been moving up about .15 per year as our largest generation, the oft-discussed boomers, age…

In our professions, then, we would expect to see a median age of around 38. Naturally, that’s not the case, specifically when you get into some of the trades or other professions that aren’t necessarily glamourous. Still, these jobs are essential to our everyday lives. We should not ignore them.

So how far off are they? Well, according to the Bureau of Labor Statistics, we’ve got some wide discrepancies. Looking at just a few:

· Real estate agents: 49.1 years old

· Automotive mechanics: 47.4 years old

· Facilities managers: 50.1 years old

· Bus/Shuttle drivers: 55.6 years old

· Housekeeping/Janitorial: 50.1 years old

· Home health aides: 47.2 years old

· Electrical trades: 46.8 years old

Yikes. There were plenty of professions even older than that, but I picked these for a reason — there’s little barrier to entry. You don’t need a $200,000 piece of paper, and they’re located across the country. You don’t need to live in a growing metropolitan area to have any of these jobs. In other words, based on ease of access, they should be younger. But they’re not.

Why aren’t younger people moving into these roles?

Basically, we have a problem with younger generations not actually wanting to work. There are probably a million reasons, social media, NFTs, influencers, Bitcoin, Meme stocks, etc. If you are 18-30 in today’s world, you are inundated with examples, constantly, of how you can be rich, by not really working, and it all looks so easy!

The problem is, we can’t rely on GenX and young Baby Boomers to keep building our shit! Eventually, they’ll be dead and you’ll be sitting there wondering why the fucking lights won’t come on so you can film your next TikTok video about how to make a million dollars trading make-believe money. Turns out, we need folks willing to get their hands dirty from time to time.

The obvious solution is to increase immigration and create a constant pipeline of workers who want to come to America and actually work. Turns out, regardless of want mass media is trying to get us to believe, millions of immigrants still want to come to America! We actually have jobs that pay money and benefits and overtime and provide training, simply if you have a work ethic! Isn’t that a crazy concept!?

I don’t want young people to think this is all their problem, it’s not! Your parents own a portion of this as well. Someone should have made you work when you were younger. Mow a lawn, babysit, work the fryer at McDonald’s when you were 16, but they were doing pretty good and you were basically not annoying them with your face in your phone, so you didn’t get the opportunity to value work. I think older Millennials, GenX, and Baby Boomers all worked when they were 16 for two main reasons: 1. Our parents refused to give us anything, so we needed money if we wanted something. 2. Our parents couldn’t stand watching us sit around and do nothing, so we were forced to leave the house.

All of this rant about how young people suck, still isn’t the problem!

We aren’t having enough babies!

Probably starts with we aren’t having enough sex, but that’s another post.

Turns out, babies and puppies are a god damn lot of work, and if you don’t like work…well, it’s kind of comes around full circle!

There are 3 ways this will be fixed, and I do believe it will be:

  1. More Immigrants, like millions and millions more. (BTW – every industrialized, rich country is in the same boat as the US, we just really such at immigration)
  2. More automation and technology to replace workers. (Already happening, get used to it happening a lot more)
  3. More babies! Won’t happen anytime soon, and I would guess we might never be able to turn that around.

Or, you and your organization can just believe this great resignation thing will play itself out and we’ll all be back to normal by summer. Have fun with that!

And P.S. – Get off my lawn!

Exploding Job Offers!

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I had a question the other day from an executive outside of HR and Talent. A C-suite type who was frustrated by the lack of hires his “HR” team was making. My first question was, does HR hire for you, or do you have a recruiting or talent acquisition team? He didn’t know. Problem number one.

This guy wanted my opinion, well, he really wanted my agreement if I’m honest, to something he was forcing his HR team to do with job offers. You see, they had many job offers turned down to accept another job offer. Basically, almost all candidates we have are interviewing at multiple places, and these are technically skilled candidates, in IT, engineering, etc.

His plan was to start offering expiring job offers so that the candidate would be forced to accept their offer at risk of losing it!

Brilliant, right!? He asked me…

Here’s my exact reply:

“So, in an employment market where the unemployment rate is around 1% for technical candidates, you feel the best strategy is to force someone to make a decision to come to work for you? Also, who says that they won’t just accept your offer, continue in the process while waiting on other offers to come, and eventually just leave you high and dry? Also, do you really want to start off an employment relationship with someone who felt forced to take your offer?”

His response:

“Well, the hell should we do?”

The Problem with Exploding Job Offers

  1. Expiring job offers only work on candidates who are lower end of the value chain, or have no other vaiable offers to choose from. The best talent, won’t even consider you if you pull that strategy.
  2. If you aren’t a “unicorn” brand (Google, Apple, etc.) you have no shot at getting good talent to accept your exploding job offer.
  3. While it might in theory “end” your hiring process faster, you have a higher chance of a late no-show/decline that puts your team even farther behind in hiring. Especially, if they went back to your other viable candidates and told them they were silver medalist.

What’s a better way? Because it’s not unheard of in today’s world where we put some timing around job offers. The reality is, we can’t wait forever. So, the real question is, how long should we give someone to consider our offer before we have to pull it back?

I like to use this as a great way to find out what I’m up against. Let the candidate tell you a time, and then negotiate it down if you don’t feel like it’s appropriate. First, when I make an offer, I expect a full acceptance the moment I make it! What?! But, you just said…! Yeah, I don’t like exploding job offers, but I also work as a recruiter who has already pre-closed the candidate and knocked out all the objections, so when I make the offer, the candidate and I have already agreed, if I get X, Y, and Z, you’re answer is “Yes”, correct?

That doesn’t mean it works every time!

In the case where the candidate, legitimately needs some time, I give them some time, but also I need reasons to go back to the hiring manager with. Why do you need the time? Are there other offers you are waiting on? What would make you take those other offers over ours? Again, keep closing, with demanding an answer. Changing jobs is one of the top three most stressful things a person does. These decisions don’t come lightly, and we need to respect that.

Offering Exploding Job offers is old advice that has turned into bad advice, similar to not accepting a counter-offer from your employer. Job negotiation has changed a lot over the last few decades, some of the traditional things we did in the past just don’t work anymore.