If You Pay Women More They’ll Work Harder Than Men! (It’s Science!)

A new study out from Harvard (so you know it’s legit and sh*t!) on what is the real payoff on paying employees more. It the age-old question, right? We can’t find great talent, so we say, “well, if we paid more we could find more talent”. Not quite “great talent” but more talent.

But, that really isn’t even the question this is answering. This is about what about our own employees and if we paid them more, would they work harder?

So, will employees work harder for more money? 

The study looked at mass retail and warehouse workers and found that a $1 increase in pay would on average, overall employees, give back the company $1,10 in extra productivity. Not great, but in very big organizations, an extra $.10 per hour in productivity could be significant, but there were other findings I found more fascinating:

1. Women, on average, will actually work harder for more pay than men! 

2. It’s super hard to pre-select those employees, or candidates, who will actually be more productive with the additional pay.

In fact, “women’s productivity responds more and their turnover responds less to wage changes than men’s, which can lead to occupational pay gaps”. Meaning, less pay doesn’t have the same impact on women as it does men. Men are more likely to turnover when they feel they aren’t being compensated fairly.

The other side of this study that is fascinating from a compensation perspective is something we all kind of know, but never like to admit to – we actually kind of suck at selection and determining who will be a great performer from a poor performer. Interviews, especially in no-skill, low-skill jobs, are basically worthless.

You might have a better chance of being a pay leader and only hiring women. At least you’ll give yourself a better chance the ladies will work harder for that money!

I think what this really speaks to is class pay for performance. Our need to make sure we are paying those employees, who perform the best, more than those employees who do not perform the best. We struggle with this. “Well, Tim, they are all classified “Warehouse Associates 1″ if we paid them differently there would be chaos!”

I get it. It’s not easy, but being great is never easy. Do you really think what you are doing now is really working great?

I think we have the ability in retail, dining, warehouse, manufacturing, do compensation testing where we try some of these philosophies and ideas. What would happen if we developed great productivity measures, and then we really compensated our best performers more. Not twenty-five cents more, but significantly more than their peers who are average or below average on those same metrics?

Might you have some turnover of weaker players? Yep. Is that a bad thing? Maybe, most likely not, if you’re prepared with a funnel of potential new hires. Becoming great at HR is about challenging what we are doing now, so we can become better than we are for the future.

Now, go take care of those ladies who are working harder than your dudes!

Does Your Average Employee Tenure Matter? (New Data!)

I keep getting told by folks who tend to know way more than me that employees ‘today’ don’t care about staying at a company long term. “Tim you just don’t get it, the younger workforce just wants to spend one to three years at a job than leave for something new and different.” You’re right! I don’t get it.

BLS recently released survey data showing that the average employee tenure is sitting around 4.1 years.  Which speaks to my smart friends who love to keep replacing talent. I still don’t buy this fact as meaning people don’t want long term employment with one organization.

Here’s what I know about high tenured individuals:

1. People who stay long term with a company tend to make more money over their careers.

2. People who stay long term with a company tend to reach the highest level of promotion.

3. People who tend to stay long term with a company tend to have higher career satisfaction.

I don’t have a survey on this. I have twenty years of working in the trenches of HR and witnessing this firsthand. The new CEO hire from outside the company gets all the press, but it actually rarely happens. Most companies promote from within because they have trust in the performance of a long-term, dedicated employee, over an unknown from the outside. Most organizations pick the known over the unknown.

I still believe tenure matters a great deal to the leadership of most organizations.  I believe that a younger workforce still wants to find a great company where they can build a career, but we keep telling them that is unrealistic in today’s world.

Career ADHD is something we’ve made up to help us explain to our executives why we can no longer retain our employees.  Retention is hard work. It has a real, lasting impact on the health and well-being of a company. There are real academic studies that show the organizations with the highest tenure, outperform those organizations with lower tenure.  (here, here, and here)

Employee tenure is important and it matters a great deal to the success of your organization. If you’re telling yourself and your leadership that it doesn’t, that it’s just ‘kids’ today, we can’t do anything about it, you’re doing your organization a disservice. You can do something about it. Employee retention, at all levels, should be the number 1, 2, and 3 top priorities of your HR shop.

Does Your Hiring Process Have Diversification Bias? (Diversifi-what!?!)

One of the really great things that have happened in 2020 is the giant spotlight D&I has gotten in organizations, especially around hiring a more diverse workforce. Obviously, organizations have been working on this for a while, but with limited success.

What researchers are discovering is that many organizations might have “Diversification Bias” in their hiring process. What is Diversification Bias?

Diversification bias describes the tendency to choose more variety—to diversify—when making a simultaneous decision, and to choose less variety when making the same decisions sequentially.

For the non-technical definition, we tend to hire more diversity when we hire a bunch of people at one time, verse when we hire one person every once in a while.

This actually then gives a really good explanation around why so many organizations struggle to increase their diversity hiring because most of us don’t hire a bunch of people all at once. Most organizations have one opening for let’s say an Accountant. When that hiring manager goes to hire, they’ll most likely hire someone who is similar to them.

Now, if that same hiring manager was going to hire 3 Accountants, they are forced to look at that panel of hires and they’ll notice that everyone looks the same, thus increasing the chances they’ll offer positions to a more diverse set of candidates. I’m not saying that our traditional way of hiring is appropriate, in fact, it’s just another form of bias, it’s just a researched explanation of why this is happening.

How can we hire a more diverse and inclusive workforce? 

Let’s be honest for SMB organizations this will be difficult because you’ll never really have the headcount numbers to do any type of mass hiring, so SMBs have to have a special focus on each hire and why each decision is being made, if they want to move the needle. For larger organizations here are some tips:

1. Understand your turn over data by position and require hiring managers to hire in multiples verse one hire at a time.

2. Ensure you have a diverse and inclusive interview panel where every person on the panel has an equal vote.

3. Understand your market demographics by position and make the organization aware of where you are falling short. Great you increased your D&I hiring by 18%, but if it’s mostly in an area where you already had great diversity, you really haven’t done anything to solve your problem. Also, if your market demographics tell you that there are 15% diversity candidates in a certain segment, and you are meeting or exceeding that number, executives should know your successes. I find often executives will say, “well we need to be at 30%” without knowing what that really means for the skills you’re hiring.

Awareness and focus solve a lot of issues.

Here’s the reality. Some of your hiring managers believe that hiring a D&I candidate is a risk. They believe that a diversity hire won’t perform as well. Is that bad? Hell, yes! But it’s also reality. So, when they hire one person at a time, they are less willing to take a “risk”, in their eyes, on a diverse candidate. Again, that’s their Diversification Bias, among others, showing up.

We fight this battle on multiple fronts. We address biased hiring manager behavior when we know it’s happening, but we can also address it by changing our own processes and making it easier for hiring managers to make the right decisions.

The more you know.

1 Free Job Posting from @LinkedIn if You Read This Post!

Pretty cool news coming out of LinkedIn this week! LinkedIn has made a few changes to help job seekers (#ImOpenToWork photo frames, Career Explorer, free skill courses, etc.) and also will be helping employers, especially SMBs, who need help connecting with this talent with FREE job posts! No, really, you don’t have to put a credit card or anything – no bait and switch!

Check out the video below…

How do we post that FREE job? 

Basically, if you’re a hiring manager, HR, TA, etc. and looking to hire, you just go and create a new job posting. You can find the job posting button by going to your main LinkedIn feed page, going to the upper right-hand corner, and clicking on “Work”. A drop down will show you a “Post a Job” button and you can click on that.

For SMBs who aren’t already using LinkedIn to post jobs, you will get one free job post to use. If you fill that job, you can post another. Basically, you get one free job to post at a time. If you are an enterprise LinkedIn user, you’ll get pushed into your account to post a job.

Once you add a job, you will be given the option to add the “Hiring” frame around your profile picture.

Check out this LinkedIn Blog post for additional details and links.

It’s pretty rare for an organization like LinkedIn to give away something so valuable for free! We know LinkedIn job postings work, we also know they can be quite expensive for SMBs to use.

I’m sure the cynics will say this is just another way LinkedIn is getting more people to use the platform and get addicted. Maybe! But, if it works, who cares! And, if it works and it’s free for an SMB to test, seriously, that’s a great thing! Take advantage!

Go post a job out on LinkedIn and then send me a note and let me know the results! I’m super interested to see how this works for everyone!

 

5 Tell-Tale Signs Not to Make That Offer!

If I have learned anything at all in my HR/Recruiting career it’s that everyone has an opinion on what makes a good hire. If you ask 100 people to give you one thing they focus on when deciding between candidates, you’ll get 100 different answers!

I’ve got some of my own. They might be slightly different than yours, but I know mine will work!  So, if you want to make some better selections, take note my young Padawans:

1. Crinkled up money. Male or female if you pull money out of your pocket or purse and it’s crinkled up, you’ll be a bad hire!  There is something fundamentally wrong with people who can’t keep their cash straight. The challenge you have is how do you get a candidate to show you this? Ask to copy their driver’s license or something like that!

2. Males with more selfies on their Instagram, than all other photos. I don’t even have to explain this (also, don’t go do a count on my IG!).

3. Slow walkers.  If you don’t have some pep in your step, at least for the interview, you’re going to be a drag as an employee.

4. My Last Employer was so Awesome! Yeah, that’s great, we aren’t them. Let’s put a little focus back on what we got going on right here, sparky. Putting too much emphasis on a job you love during the interview is annoying. We get it. It was a good gig. You f’d it up and can’t let go. Now we’ll have to listen about it for the next nine months until we fire you.

5. Complaining or being Rude to waitstaff.  I like taking candidates to lunch or dinner, just to see how they treat other people. I want servant leaders, not assholes, working for me. The meal interview is a great selection tool to weed out bad people.

What are your signs not to make an offer?  Share in the comments!

OMG! Did you guys hear what Kris did!?! #Yikes!

Gawd! We love gossip!

I’m personally on five text groups, a few Messenger groups, a couple of IG groups, and a number of email chains that all act like some strange modern version of a watercooler in the breakroom at work. Or the back smoke break patio at the office. Pick your pleasure.

Cultural anthropology sees gossip as an informal way of enforcing group norms. It is effective in small groups. But gossip is not the search for truth. It is a search for approval by attacking the perceived flaws of others…As a social enforcement mechanism, gossip does not scale. Large societies need other enforcement mechanisms: government, religion, written codes.”

Think about how gossip can help organizations perform better.

If I’m new to a department, gossip quickly lets me know the group norms that are expected and tolerated. If I want to be viewed as a good performer I will follow the group norms and gossip is the vehicle for letting me know what those norms will be.

If I’m a “good” gossip, I skilled at finding and sharing information amongst my team they find valuable, I’ll quickly increase my status within the department. I have to be careful as lies and false gossip can quickly bring me down in status.

The problem with gossip, historically, is in didn’t scale well. I might have some juicy gossip but how am I going to effectively share that across an entire organization? But, now with social media, the internet, smartphones, email, Teams/Slack, Zoom, etc., we can easily spread gossip, both good and bad.

So, why am I talking about gossip? 

I will tell you leaders and HR spend more time trying to stop gossip within the organization than almost anything. I’m wondering if we are actually doing ourselves a disservice. What if we used gossip to drive great engagement? What would that look like?

The key to great gossip is “we” all want to be in on a secret. 

We want gossip that we believe almost no one else has. To use gossip to enforce organizational norms (gossip at scale) we can’t just go out and start launching secrets into the world. There has to be a plan!

The problem with trying to lead with gossip is it can lead to chaos. If we believe the social/group norm is to communicate via gossip, that is a very fine line to try and navigate successfully, knowing it’s hard to know what gossip to believe or not believe.

I think we can use the psychology behind our desire for gossip, though, to drive some great outcomes within our organizations.

What happens if you’re in a small meeting, let’s say, five people. The CEO is one of those people and she has something amazing to tell everyone, BUT, the four of us will have to keep this secret. We can’t tell anyone!

We all leave the meeting. I’ve got my #1 right-hand person on my team. I’ve got to pull them in, this is too important, this has too big of an impact on our department not to let my #1 know! So, I trust them (like the CEO trusted me) to not tell anyone else. What happens?

  1. They are over the moon that I trusted them enough to bring them in on the secret. (High Engagement – High Loyalty)
  2. I put myself in a really bad position if the CEO finds out.
  3. I start working with the CEO to let us work on a comms plan to let others know that need to know. (basically to cover my ass for already letting the secret out into the wild!)

Welcome to Organizational Behavior 101, kids!

Every leader has “gossip”. Stuff they know that their team doesn’t know. Some of that is secret. Some of that is just stuff they found about before everyone else, for an undetermined amount of time.

I find that leaders who can use the positive “safe” gossip for informing their team tend to have extremely high team engagement. “Hey, team, we need to pull it in close for a five-minute huddle, I’ve got something really important I need to share with you. But, first, you have to understand, this is NOT public information! We can’t allow this to be shared.”

I just wrote that, and I’m sitting here wanting to know what comes next! Gossip is a powerful tool, that can just as easily make your career as break your career!

As leaders, it’s our job to ensure the group norms we allow are ones where the good gossip, the sharing of information that helps us all increase our knowledge and power are encouraged, while the bad gossip is shut down immediately. All gossip is not bad, but it’s all-powerful in terms of possible outcomes.

 

Future Jobs in HR and Recruiting with @Kris_Dunn and I! (Video)

Here’s what we know for sure! The jobs we are doing today, quite possibly will not be the jobs we will be doing down the road! How do we know this? The world changes and evolves and while we once needed a ton of Blacksmiths in the world, we no longer need that profession as widely as we once did.

So, are HR pros going the way of the horseshoe!? I just lost all of the audience under 75, but let’s talk about the Future of HR and TA jobs!

Shout out the great folks at the SHRM Store for sending me the cool green I Love HR polo! To be honest, it fits super great and people say the green looks great on me! In fact, if you click through the link, I think they should have used me for the model! Tell me I’m wrong! I’m way HR Sexier!

By the way – I love the tagline “World’s Largest HR Store!” Like who else is going to have an HR Store! Amazon!?! Wait, don’t tell Bezos, he might start one!

If you had to redo your corporate mission statement in 2020, would it change?

I think we call agree that 2020 has been a sh*tshow, but there also have been some very important issues that have taken a spotlight that probably would have a major impact on our corporate mission and vision statements. Besides the social justice conversation, the political division continues to grow, and of course workplace health and wellness kind of continues to suck up the oxygen in the room!

Coinbase, a technology company that created a platform to buy and trade cryptocurrency, decided to redo their corporate mission statement, primarily because political division and social justice ideas, being discussed in the workplace, were kind of disrupting their culture and not in a positive way.

Here are some of the aspects of the new Coinbase mission statement:

Play like a championship team

  • Be company first: We act as #OneCoinbase, putting the company’s goals ahead of any particular team or individual goals.
  • Act in service of the greater mission: We have united as a team to try and accomplish something that none of us could have done on our own.
  • Default to trust: We assume positive intent amongst our teammates, and assume ignorance over malice. We have each other’s backs.
  • Focus on what unites us, not what divides us: We help create a sense of cohesion and unity, by focusing on what we have in common, not where we disagree, especially when it’s unrelated to our work.
  • Sustained high performance: As compared to a family, where everyone is included regardless of performance, a championship team makes a concerted effort to raise the bar on talent, including changing out team members when needed.

Focus on building

We focus on the things that help us achieve our mission:

  • Build great products: The vast majority of the impact we have will be from the products we create, which are used by millions of people.
  • Source amazing talent: We create job opportunities for top people, including those from underrepresented backgrounds who don’t have equal access to opportunities, with things like diverse slates (Rooney rule) on senior hires, and casting a wide net to find top talent.
  • Fair talent practices: We work to reduce unconscious bias in interviews, using things like structured interviews, and ensure fair practices in how we pay and promote. We have a pay for performance culture, which means that your rewards and promotions are linked to your overall contribution to the mission and company goals.
  • Enable belonging for everyone: We work to create an environment where everyone is welcome and can do their best work, regardless of background, sexual orientation, race, gender, age, etc.

We focus minimally on causes not directly related to the mission:

  • Policy decisions: If there is a bill introduced around crypto, we may engage here, but we normally wouldn’t engage in policy decisions around healthcare or education for example.
  • Non-profit work: We will do some work here with our Pledge 1% program and GiveCrypto.org, but this is about 1% of our efforts. We are a for-profit business. When we make profit, we can use that to hire more great people, and build even more. We shouldn’t ever shy away from making profit, because with more resources we can have a greater impact on the world.
  • Broader societal issues: We don’t engage here when issues are unrelated to our core mission, because we believe impact only comes with focus.
  • Political causes: We don’t advocate for any particular causes or candidates internally that are unrelated to our mission, because it is a distraction from our mission. Even if we all agree something is a problem, we may not all agree on the solution.

The reason is that while I think these efforts are well-intentioned, they have the potential to destroy a lot of value at most companies, both by being a distraction and by creating internal division. 

I appreciate that Coinbase CEO, Brian Armstrong, is working to try and protect the corporate culture that Coinbase had prior to all the issues that have taken center stage in 2020. I think most leadership teams probably feel the same way, “Can’t we just have it like it was before!?” Wasn’t that better?

Well, it probably was better for the leaders and a good number of employees, but it also wasn’t good for a bunch of others. Many of these conversations were needed, and our hope is this will lead to even a better, stronger culture moving forward. I’m not naive, though, some of this will destroy some companies. It’s never all good or all bad.

I actually like the focus on work, when you are at work. It’s a very GenX/Baby Boomer thinking. The younger you are, the more you want your work life to reflect your personal life and beliefs. Some of that is just simple nativity. Some of that is probably a better way to work.

What I know, as a leader, is that we can’t have non-stop division within our workplaces and thing that will lead to a successful company. It won’t. So, we have some choices to make. We can decide to only hire people who think just like we think. Which sounds like the opposite of inclusion. Or we can work really hard to help our employees understand that having people around us that might have different beliefs is a positive thing if we really work to get to know the other person.

The Pandemic has been hard on HR pros!

If we sat down and started to list out who has been most impacted by the pandemic on the jobs front, we would come up with a pretty interesting list! The vast number of unemployed would show us that almost everyone has been impacted, and, quite frankly, it kind of feels that way.

If we dig into the data side of what has really happened over the last six months, the picture looks less bleak for some, and a little scary for many, especially us HR pros. Appcast, a job advertising programmatic technology company, released its 2020 Midyear Recruitment Marketing Benchmark Report recently that looks at all the activity around jobs. Stuff like which jobs are getting the most applies. What kind of jobs is being posted? Etc.

When we look at the macro-world of jobs, we begin to see some super exciting things around the winners and losers, in the job market, at this point in the pandemic. Some of the outcomes are certainly understandable. In healthcare, for instance, the number one job being posted is for epidemiologists. Okay, that makes complete sense! In the middle of a pandemic, we need more Epidemiologists to help us stop the spread.

One big thing that popped out at me instantly was the job function that had the greatest change in the rate of applies. Meaning, more people in this job function, started looking for a new job. Can you guess what job that would be!? Yeah, it was HR! An increase of 24.5% from Q1 2020 to Q2 2020.

Are you surprised by this? Why would HR, out of all jobs, be the one that is out looking at a higher rate than everyone else?

The reality is, and we saw this during the Great Recession as well. HR pros are often the first to be cut during poor economic times. After all the work, after all the words from the c-suite, after all the studies about the importance HR has on the success of organizations, we (HR Pros) are still one of the first to be cut when money gets tight.

Why does HR get cut first?

Over the next 12-36 months, most economist believes we’ll be in a tough job market. Pandemic hangover, the election, and an economy that was due for a pullback after a decade of expansion, HR jobs will be tough to come by for a while.

HR leaders and pros don’t lose their jobs if they clearly bring value to the organization. Our c-suite executives who are making these calls probably see value creation and sustainability by HR differently than HR sees itself.

We know, with the HR function, far too many of our peers are still too transactional in what they do. Of course, every function will always have a certain amount of work that is transactional, but in hard times, transactional work is the first to go. If you haven’t proven yourself to be strategic, and demonstrate what you’ll add value and increase productivity within the organization, you will always be a target to get cut.

HR is getting cut because too many of us still struggle to show organizations how great people practices drive the world’s most productive and profitable organizations.

The good news is we control this, and we can educate ourselves and prepare ourselves to be value-adders to any organization, no matter the industry or location.

I love the new SHRM Specialty Credential that focuses on Inclusive Workplace Culture. Think about where organizations are right now in the middle of the pandemic and all the energy around social justice. Organizations need HR pros who are going to drive change and make positive business results. Specialty Credentials educate HR pros faster than anything else on the market.

The HR Job market is not going to get easier anytime soon, and the best way to protect your career or put yourself in a competitive advantage over other job seekers, if to have skills and knowledge they don’t. We all make investments on ourselves. Some of those are health investments, or for our family, some are for our careers. The time to make those investments are when the world is changing the most.

This One Group of Employees Needs Performance Reviews Cancelled!

This week on the HR Famous pod we talked about Google suspending performance reviews until 2021. When I first heard about it, my initial reaction was, “okay, here we go, the softening of America continues!” Come on, buck up kids!

It didn’t take me long to come to my senses when I thought about my own team. I have a super-strong group of employees, many of them mothers. On a weekly basis, I get to hear their stories of remote work with kids.

The reality we are facing right now, whether you think it’s right or not, is that most of your female employees with children are taking on the brunt of assisting the kids in their schooling at home. I’m a modern man. I don’t think women should have to take on this burden, but men mostly suck at organization, and from what I can tell, kids need vast amounts of organization when learning at home.

What does any of this have anything to do with Performance Reviews!? 


Because it’s unfair to judge your employees who are parents and besides doing their job, they are also forced to be a part-time educator because remote schooling is failing across the board. AND, the majority of these parent employees are women, who also just happen to face great equity issues already in your organization.

“Okay, Tim, we’ll suspend performance reviews for our employees who are parents, but we are going to continue with everyone else! Why would we stop all performance reviews?” See below…

Here is what will happen if you don’t cancel performance reviews in 2020, and maybe for a while after:

  • Your non-parent employees will get performance reviews and raises and promotions, life is great for them. Your parent employees, mostly women taking the brunt of the workload, won’t get a review and fall behind or will get a review and be judged unfairly based on what our crazy world has thrown at them.
  • Your pay equity issues and lack of gender diversity at leadership levels will continue and increase.
  • You’ll begin to see divisions amongst your employees, that will hurt your culture and productivity.
  • Eventually, you’ll create unwanted turnover or high performing talent.

I’m not saying we should stop feedback. Continue to do feedback all the time. Draft comms out to your employee base that speaks to the inequity our peers are facing and why you will suspend reviews until the pandemic is over and things get back to normal.

Some will read this and go, “yeah, I get it, but we are just going to have continued open dialogue with each team member and if someone says they don’t want a review right now, we’ll table them.” That’s a mistake because the women I know who are doing both roles right now will never tell you they don’t want a review. They are too proud for that, but it’s what’s best for them.

So, I’m a dude talking for women – because that’s what dudes do – we love to do some mansplaining! We also love to protect women. It’s a crazy genetic thing our mom gave us. Let me know what you think in the comments. Have you had this conversation in your organization? What are you going to do?