The “New” Skilled Trades

Google started it.  Don’t they start everything. You can thank Lazlo for all of this when he came out and said Google no longer requires a college degree to get hired into many of their technical roles. Now, we are beginning to see specialized training schools popping up to begin to ‘train’ the next gen workforce in what will be soon considered the new skilled trades of the future.  From CNBC:

Students at the New York City-based school pay $15,000 for four months of coding instruction. They leave with the ability to develop software, and according to Flatiron School, 99 percent of students get a job with an average starting salary of $70,000 a year.

Flatiron founders Adam Enbar and Avi Flombaum said they believe coding will be a form of literacy in the future.

“Just like you need to learn how to read and write, even if you’re not going to be a journalist, you need to learn how to code and wield technology if you’re going to be successful in the world,” said Enbar…

Some of Flatiron’s students share Enbar’s frustration with higher education. Jen Eisenberg was studying computer science as an undergraduate at Michigan State University, but stopped after her first semester when her father asked if she could build him a website.

“I realized I couldn’t build anything tangible … it’s more theory and algorithms,” Eisenberg said.

After completing Flatiron’s program, Eisenberg is a software engineer at Paperless Post, an online stationery shop. She helps write the instruction, or code, that makes the website function.

For years I’ve been telling high school students are getting ready to graduate that public education has given them two paths in their life:

1. College

2. Prison

That’s it!  Years ago we did away with skilled trades curriculum in public schools. The programs where kids learned how to weld, fix cars, pull wire, sweat pipe, build things, etc. Now, you go to high school to do well on a test and hopefully that test will get you into college. If it doesn’t?  Good luck, you’re basically on your own, which for most eighteen year olds usually ends up in prison.

So, I’m actually excited about these ‘new’ skilled trades!  Learning how to code, test, program, design and build web apps, etc.  Our reality is we have kids who don’t want to go to college. Traditional school environments are not their cup of tea!  They can’t wait to get out of high school, and the last thing they want is to go back to a similar setting in college.

America is in desperate need of vocational programs that start when kids are around seventeen.  Companies are begging for help in the traditional skilled trades, as well.  On both ends of technology, those who turn a wrench and those who click a mouse, need more trained individuals in the workforce, and at both of those ends, a full four year college program isn’t the answer.

Does this mean no one needs to go to college any longer? No.  We still need all kinds of college grads.  But, we can’t forget about all the others, and we have, for more than a decade.  Skilled trades, traditional and new, are the lifeblood of innovation.  You can design the greatest thing ever, but eventually, someone has to build it.  Someone has to get their hands dirty.  Someone has to put in the hours to make it a reality.

Sounds like a job for someone with a skilled trade.

My Big Fat Recruiting Dilemma!

Have you had an employee who had to stop working because they became too fat? Just wait, you will, it’s just a matter of time.

I remember when my biggest nightmare as an HR pro was going to tell an employee they need to bath and wear deordorant. I can’t even imagine having to go tell an employee, “Hey Bro, you have to go home, you’re too fat.”

The U.S. Army recently came out and shared some statistics about how the U.S. obesity epidemic is hurting their recruitment efforts:

“Just under three in 10 young people [ages] 17 to 24 can join the Army today – and the other armed services for that matter – and the single biggest disqualifier is obesity,” Major General Allen Batschelet of the U.S. Army Recruiting Command told CNN. “Ten percent of them are obese and unfit to the point that they can’t join the service. It’s really very worrisome.”

“The obesity issue is one of the most troubling because the trend is going in the wrong direction,” says Batschelet. “Ten percent are disqualified today, and we think by 2020, it could be as high as 50 percent, which would mean only two in ten would qualify to join the Army.”

Our national security is at risk because our citizens can’t put down a Big Mac. Our enemies don’t need to attack us with bombs and troops; they just need to keep sending us cheap junk food to consume!  Then one day they just come ashore and roll us over to the POW camps.  I sure hope they serve good food at the camps…

Big fat Americans just aren’t a national security issue; this is a major issue facing all employers.  The reality is, no one wants to hire unhealthy people. If given a choice between people with similar skills and abilities, one in shape and one obese, employers will always hire the person who is in shape.

You want to see hiring discrimination at its finest?  Put a minority in good shape, a woman in good shape and an obese candidate, all with similar skills, in front of a hiring manager and have them rank them on most likely to hire.

The obese person will always rank last. Why?  Your hiring managers fear hiring someone who might die on their watch, more than hiring a minority or woman.  Was that too real for you? Check your analytics, you know where your problems are.

How do we fix this?

Companies have failed at wellness across the board.  I think it’s just a matter of time until you begin seeing organizations tie performance and compensation into their wellness plans.  It seems extreme, but so is this problem.  When a company reaches the point where they’ll tie your job performance to your health ‘performance’, that’s when you have an organization that truly cares about you.

The Path to Becoming a Highly Selective Employer

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

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

Time magazine  took a look at college admissions at highly selective colleges. Schools like Harvard, Yale, MIT, etc.  Schools that are super hard to get into because of how selective they are.  You know kind of like the hiring process of your organization. From the Time’s article:

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

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

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

An illusion of increased selectivity…

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

So what does make you selective?

I would say Quality of Hire, but that measure is totally subjective in most organizations. Can you demonstrate with real measurable items that the applicants you’re hiring are better or getting better than those previously hired?  Most organizations can’t.

You need to being some sort of pre-hire selection science model that you and your hiring managers believe in. This science gives you measures that you can compare over long period of times and every applicant has the same measure.  This creates a real evidence that you’re becoming ‘more’ selective and on your way to becoming ‘highly’ selective.

 

The Open Office Terrorists

So, how’s that new open office plan treating you!?

A recent study out says that it takes a normal person roughly 37 seconds to figure out working in an open office environment is going to suck! I mean, those were probably the slow people in the study, it doesn’t take a mental genius to see that going from an office where you could actually get stuff done to a bunch of people looking at each other, probably isn’t the best concept for productivity!

Okay, so that wasn’t a ‘real’ study. It was me and the voices in my head discussing the open office concept, and we all agree. Call it what you will, I’ll call it a quorum.

An actual study done GetVoip was spammed to me last week titled: The Detrimental Pitfalls of Open-Plan Offices which had the following findings:

– 95% of employees said working privately is important to them

– 89% of employees are more productive when working alone

– 63% of employees name “loud” coworkers as their #1 distraction.

“But, Tim! Open offices look so cool, and they prosper collaboration and communication and ping pong.”

Great…

But how many of you actually need more collaboration and communication?  I mean really?  Let’s be honest.

If Billy comes over to talk about The Voice one more time I’m going to gut him right here in my 8 ft by 8 ft low wall cubicle space I spend most of my time in. I’ll then use Billy’s skin to make a roof over my cubicle and finally have a little piece and quiet to actually get something done.  It’s not that I don’t like Billy. He’s was super the first three thousand times he came into talk me.  Now I want to see him die. Slowly. Painfully.

Open office space sucks because you have coworkers that are terrorists of the open office.  They come in all shapes and sizes, and they disguise themselves as actual coworkers. Here are a few examples:

1. The CrossFit Terrorist: Mandy does CrossFit. You should do CrossFit. And, apparently, the next best thing to doing CrossFit is talking about CrossFit to people who don’t give a shit about CrossFit.

2. The Vegan Terrorist: Mark is Vegan. You should be Vegan. And, apparently, the next best thing to being Vegan, is talking about begin Vegan to people who are trying to enjoy a nice fried donut and a RedBull for breakfast.

3. The Why Guy: The Why Guy can also be a Gal. They want to know why! Why are we doing this? Why are you doing what you’re doing? Why is the boss nice today? Why is the sky blue? Why are you holding a knife to your wrist?

4. The Schemer: Molly is a schemer. Molly wants you to scheme with her.  Molly doesn’t like how Missy wears hair hair and wants to get her fired. Plus Missy’s teeth are too white. Molly spends 77% of her day scheming of ways to get Missy fired, and needs to tell you all about it.

You see?  Open office plans are the devil in disguise.  If you had an actual office with a door, you could shut it. Lock it. Put up a sign that says, “I hate you! Go Away!”, but that would just look silly hanging from your chair at that table in the middle of the room you share with a bunch of terrorists!

 

New Money in HR

My wife and I got to spend some time in the Cayman Islands this past week.  It was great! I highly recommend going if you have the means.

You know what I saw a lot of in Cayman? New money!

New money is people who aren’t from money.  They weren’t raised around money, so they don’t know how to act with money.  They tend to stick out around people who grew up with money.  I’m neither new or old money, but it was fascinating to watch how the two differ.

It started from the moment I was going through customs to get into Cayman.  New money complains about having to wait in line to get through customs with the common folk. Old money didn’t wait in line, as they have been here before and knew the way around line.

My wife and I went to swim with the dolphins. We ran into new money at the facility. One of the workers was helping a family with three daughters and showing them some wildlife at the center. A few of us walked up soon after he started, and he politely asked us to wait. The girls were taking turns holding parrots and such, and getting their picture.  This new money lady walked right up to the worker and said, “I want to hold the parrot and get my picture!”

The worker kindly obliged, and she quickly departed, on to push around the next person. Caymanians are used to new money.

New money buys a $150 polo shirt in the lobby store because walking across the street to a shop that has the same shirt for $75 would be an inconvenience.  New money makes you feel like it’s completely normal to pay $50 for a cheeseburger and fries.

New money seems annoyed that they aren’t treated better, because they have money. New money is loud, impatient and rude. Old money waits in the back, for the crowd to clear, understanding, because they have money, they’ll get what they want eventually, and treating people kindly will get them exactly what they want.

I heard someone last week say HR is the new IT. Referring to how power is shifting out of IT and moving into HR because of how difficult it is to get great talent.  Great technology is becoming easier to obtain and work with, great talent is becoming harder to obtain and work with.

This phenomenon is shifting some organizational power to HR.  In organizations power equals money.

HR pros will have a choice to make.  Do you want to be new money or old money?  You think it’s an easy choice, but it’s not. Money and power make people do stupid things.

Leveraging your new found power for good will be one of the hardest things you’ll ever do in your HR career.  Those who do it successfully are old money kind of folks. Those who use it to push around their organization in ways that satisfy only themselves are the kind of people who push over little girls to get their photo taken with a bird.

Ladies, would you prefer not negotiating your salary?

An article recently written on NPR speaks to a ‘new’ trend in organizational compensation.  What’s that trend? Apparently, companies are now not negotiating new hire or promotional salaries.  Basically, here’s what we pay for this position, take it or leave it.

Do you believe this would work?

Here is more from the article:

When it comes to negotiating salaries, the research is pretty clear: women are less assertive than men. It’s one reason women who start their careers with a narrower pay gap see it widen over time.

Carnegie Mellon economics professor Linda Babcock, who studies the gender pay gap, says men are four times more likely to negotiate their pay. That keeps women at a disadvantage, though they’re not always aware of it.

“The standard now is that people don’t really know what each other earns, that some people negotiate and some people don’t, and so there’s tremendous inequities in salary,” Babcock says.

Here’s what I’ll say, Yes, we have inequities in salaries.  Having non-negotiable salaries can help these inequities, but this isn’t a solution. The reality is organizations need flexibility to negotiate salary, especially when it comes to attracting hard-to-find talent. Organizations that take a hard stance on this, will lose in the talent attraction game.

What organizations need to do is have a policy on making quicker market compensation moves when they begin hiring in individuals, male or female, at higher rates than someone who might have started a few months prior. Most organizations are very weak on this practice, which causes most of the inequity.

You hire someone last year at $50K, and this year you hired someone into the same position, doing the same job, with a very similar resume at $58K. You now need to go back to your employee making $50K and give them an increase to $58K.  This hurts, but it needs to be done. That’s why it is critical for your talent acquisition team to have great negotiation skills.

It’s not a $8K increase to your budget, it’s a $16K increase to your budget. Now, think about in terms of a company that has hundreds, or thousands of employees in the same situation.  That $8K dollar negotiation can turn into hundred’s of thousands of dollars across the organization in market increases.

This is why most companies turn a blind-eye to market increases, and why so many organizations have pay inequalities. If females are less likely to negotiate higher salaries, and your organizaitons is going to ignore the difference, you’re going to have a growing problem that only gets worse the longer you ignore it.

I recently had a situation with a Fortune 500 client you completely gets this, and refuses to let it becomes a problem. We had a female candidate interview and get an offer. She wanted $47K. She was way under market for the position, and for the company. They knew she only wanted $47K, and they came back and paid her $63K! That was the value of her position to the organization and what similar people in her role were going to make, with her experience.

Like I said, this isn’t a salary negotiation issue. This is a do-you-want-to-do-the-right-thing organizational issue.

What do you think?

2 Reason Men Get Hired More Than Women

The New York Times had an article regarding hiring practices and succession practices at Google, and G*d knows if Google is doing it, it must be important, and we all must try and do the same thing. What I liked about this article was it didn’t necessarily look at practices and processes, it looked at data. The data found that Google, like almost every other large company, does a crappy job hiring and promoting women.

Shocking, I know, if you’re a man! We had no idea this was going on! In America of all places… Beyond the obvious, though, Google was able to dig into the data and find out the whys and make some practical changes that I think most companies can implement, and that I totally agree with.  From the article:

“Google’s spreadsheets, for example, showed that some women who applied for jobs did not make it past the phone interview. The reason was that the women did not flaunt their achievements, so interviewers judged them unaccomplished.

Google now asks interviewers to report candidates’ answers in more detail. Google also found that women who turned down job offers had interviewed only with men. Now, a woman interviewing at Google will meet other women during the hiring process.

A result: More women are being hired.”

Here are two selection facts that impact both men and women:

1.  We like to surround ourselves with people who we like, which usually means in most cases people who are similar to ourselves.

2. We tend not to want to brag about our accomplishments, but our society has made it more acceptable for men to brag.

This has a major impact to your selection, and most of you are doing nothing about it.  It’s very common that if you run simple demographics for your company, ANY COMPANY, you’ll see that the percentage of your female employees does not come close to the percentage of your female leadership.

Why is that?

Here are two things you can do to help make the playing field more level in your organization:

1. Have women interview women.  Sounds a bit sexist in a way, but if you want women to get hired into leadership positions you can’t have them going up against males being interviewed by males because the males will almost always feel more comfortable with another male candidate. Reality sucks, buy a helmet.

2. Ask specific questions regarding accomplishments and take detailed notes. Studies have found woman don’t get hired or promoted because they don’t “sell” or brag enough about their accomplishments giving their male counterparts a leg up, because the males making the hiring decisions now have “ammunition” to justify their decision to hire the male.

Let’s face it, Google is doing it, so now we all have to do it.  What would we do without best practices…(maybe innovate and create new better practices – but I digress…).

The True Value of Working for a Crappy Company

As some of you may have realized from recent posts (Wanted: People Who Aren’t Stupid), I’ve been interviewing candidates recently for the position of Technical Recruiter working for my company HRU. I love interviewing because each time I interview I think I’ve discovered a better way to do it, or something new I should be looking for, and this most recent round of interviews is no different.

Like most HR/Talent Pros I’m always interested in quality work/co-op/internship experience. Let’s face it, it’s been drilled into us, past performance/actions will predict future performance/actions.  So, we tend to get excited over seeing a candidate that has experience from a great company or competitor and we’re intrigued to know how the other side lives and our inquisitive nature begs us to dig in.

What I’ve found over the past 20 years of interviewing is that while I love talking to people that worked at really great companies, I hire more people that have worked at really bad companies.  You see, while you learn some really good stuff working for great companies, I think people actually learn more working for really crappy companies!

Working at a really great companies gives you an opportunity to work in “Utopia”. You get to see how things are suppose to work, how people are suppose to work together, how it a perfect world it all fits together.  The reality is, we don’t work Utopia (at least the majority of us) we work in organizations that are less than perfect, and some of us actually work in down right horrible companies. Those who work in horrible companies and survive, tend to better hires. They come with battle scars and street smarts.

So, why everyone wants to get out of really bad companies (and I don’t blame them) there is actually a few things you learn from those experiences:

1. Leadership isn’t a necessity to run a profitable company. I’ve seen some very profitable companies that had really bad leadership.   Conversely, I’ve worked for some companies that had great people leaders and failed to make money. Leadership doesn’t equal profits.

2. Great people sometimes work a really crappy companies.  Don’t equate crappy company with crappy talent.  Sometimes you can find some real gems in the dump. I talk with idiots, every day, that work for really great brands. Blind squirrels…

3. Hard work is relative.  I find people who work at really bad companies, tend to appreciate hard work better than those who work a really great companies with great balance.  If all you’ve ever known is long hours and management that doesn’t care you have a family, seeing the other side gives you an appreciation that is immeasurable.

4. Not having the resources to do the job, doesn’t mean you can’t do the job. Working for a crappy company in a crappy job tends to make you more creative, because you probably won’t have what you need to do the job properly, so you find ways.

5. Long lasting peer relationships come through adversity.  You can make life-long work friends at a crappy job who you’ll keep in contact and be able to leverage as you move on in your careers.  And, here’s what each of you will think about the other: “That person can work in the shit!”; “That person is tough and get’s things done”; “That person is someone I want on my team, when I get to build a team”.

We all know the bad companies in our industries and markets.  Don’t discount candidates who have spent time with those companies. We were all at some point needing a job, a first experience, a shot at a promotion or more money, etc., and took a shot at a company we thought we could change or make a difference.  I love people who worked for bad companies, in bad jobs with bad management, because they wear it like a badge of honor!

Do You Pay Your Employees More for Referring Black People?

I know a ton of HR Pros right now who have been charged by their organizations to go out and “Diversify” their workforce.  By “Diversify”, I’m not talking about diversity of thought, but to recruit a more diverse workforce in terms of ethnic, gender and racial diversity.  Clearly by bringing in more individuals from underrepresented groups in your workforce, you’ll expand the “thought diversification”. But, for those HR Pros in the trenches and sitting in conference rooms with executives behind closed doors, diversification of thought isn’t the issue being discussed.

So, I have some assumptions I want to lay out before I go any further:

1. Referred employees make the best hires. (workforce studies frequently list employee referrals as the highest quality hires across all industries and positions)

2. ERPs (Employee Referral Programs) are the major tool used to get employee referrals by HR Pros.

3. A diverse workforce will perform better in many complex circumstances, then a homogeneous workforce will.

4. Diversity departments, is you’re lucky enough, or big enough, to have one in your organization, traditionally tend to do a weak job at “recruiting” diversity candidates (there more concerned about getting the Cinco De Mayo Taco Bar scheduled, MLK Celebrations, etc.)

Now, keeping in mind the above assumptions, what do you think is the best way to recruit diversity candidates to your organization?

I’ve yet to find a company willing to go as far as to “Pay More” for a black engineer referral vs. a white engineer referral.  Can you imagine how that would play out in your organization!?  But behind the scenes in HR Department across the world, this exact thing is happening in a number of ways.

First, what is your cost of hire for diverse candidates versus non-diverse candidates? Do you even measure that? Why not!?  I’ll tell you why, it’s very hard to justify why you are paying two, three and even four times more for a diversity candidate, with the same skill sets, versus a non-diverse candidate in most technical and medical recruiting environments.  Second, how many diversity recruitment events do you go to versus non-specific diversity recruitment events?  In organizations who are really pushing diversification of workforce, I find that this ratio is usually 2 to 1.

So, you will easily spend more resources of your organization to become more diversified, but you won’t reward your employees for helping you get reach your goals?  I find this somewhat ironic. You will pay Joe, one of your best engineers, $2000 for any referral, but you are unwilling to pay him $4000 for referring his black engineer friends from his former company.  Yet, you’ll go out and spend $50,000 attending diversity recruiting job fairs and events all over the country trying to get the same person, when you know the best investment of your resources would be to put up a poster in your hallways saying “Wanted Black Engineers $4000 Reward!”.

Here’s why you don’t do this.

Most organizations do a terrible job at communicating the importance of having a diverse workforce, and that to get to an ideal state, sometimes it means the organization might have to hire a female, or an Asian, or an African American, or an Hispanic, over a similarly qualified white male, to ensure the organization is reaching their highest potential.   Work group performance by diversity is easily measured and reported to employees, to demonstrate diversity successes, but we rarely do it, to help us explain why we do what we are doing in talent selection.

What do we need to do? Stop treating our employees like they won’t get it, start educating them beyond the politically correct version of Diversity, and start educating them on the performance increases we get with a diversified workforce.  Then it might not seem so unheard of to pay more to an employee for referring a diverse candidate!

 

Talent Acquisition’s 2032 Nightmare

According to a recent USA Today article the U.S. birthrate is in sharp decline and is at its lowest levels in the past 25 years.   Here’s probably a few facts you don’t know:

– Projected 2013 birthrate in the U.S. is estimated to be 1.86

– Birthrate needed to maintain a population over a 20 year period is 2.1

Why should this concern you?

There are a number of reasons and one might be that you need as many young people as old for the simple fact of having enough young people to take care of your older population.  If you turn that equation upside down (Taiwan 1.1 or Portugal 1.3) you have a society full of older people and not enough young people to fill the jobs needed to keep running your society.

The U.S. has 5 Million jobs left unfilled because of lack of skilled employees, today. Imagine if you now have millions of less workers to even choose from, and, by the way, skilled workers aren’t coming from other countries because their societies are growing and need them.  That is what our country’s employment picture will look like in 2032.  This will be a HR/Recruiting nightmare for those young HR/Talent Pros starting out their careers in the next 10 to 15 years.

Being the Futurist that I am, I’ve already provided a solution to this problem back in 2011 over at Fistful of Talent. Should You Encourage Your Employees To Have Babies, check it out. Basically my advice remains the same, as U.S. employers we need to create a positive, encouraging environment for our employees, with family-friendly policies that make our employees feel like starting a family is a good thing, and that if they do start a family their job and ability to get a promotion won’t be compromised.  This is not the case as many U.S. employers right now, for both men and women in the workforce.

As HR Pros and organizations we tend to think this isn’t our issue.  It will take care of itself, but as we look at countries with low birthrates, the issue doesn’t take care of itself and those countries have a worker crisis going on right now.   We need to change our ways right now.  We need to be family friendly employers. We need to, as HR Pros, be concerned and find solutions for our employees around daycare, flexible schedules and other practices that will help our employees with families.   I know it sounds a bit the-sky-is-fallingish, but the numbers don’t lie we are headed for some of the hardest hiring this country has ever seen.

One solution I’ve thought of, that I didn’t bring up in 2011, is baby sign-on bonuses!  We do it for college students. I think we start doing for babies of our best employees.  I mean if parents can arrange their kids marriage, what stops us from arranging their first job?  Nothing! That’s what.  Imagine how happy your employees would be to cash a $20,000 check to help with baby expenses for the simple task of forcing their kid to come to work with your company upon college graduation.  It seems so simple! I’m not quite sure why no one has started this yet…