Notes to HR Tech Vendors – #10 – Your Real Competition

I’ve done a few presentations titled something like, “HR Tech Buyers Guide”, “How to Buy HR Tech”, etc. The presentation is designed for HR and TA practitioners to help them become better buyers of HR Tech. To understand the crap that HR and TA Tech vendors do and say to get you to buy stuff you might not need, want, or will use.

The interesting thing about these presentations is that half the audience turns out to be the actual vendors themselves wanting to hear what it is I’m telling the real HR and TA leaders! It’s smart for the vendors. It helps make the better sellers as well. Well, at least some that actually listen!

Based on these interactions I decided to build a series of what has come out of interactions to the vendors themselves, aptly named “Notes to HR Tech Vendors”. Look I don’t alway have to be creative! Enjoy!

#10 – Your Real Competition

Unless you’re buying some giant watered-down enterprise level HRIS or ATS/Talent Suite you almost never have competition!

Yes, you read that correctly. 90% of HR Tech vendors have “NO” competition! But, you believe the opposite.

Here’s the deal. HR and TA Tech buyers are fairly naive to the industry. It’s not our full-time job to track every new ATS that is being launched. We’re just trying to get people hired and stop people from quitting. Takes up about 99.9% of our job! So, when it’s time to buy new Tech we usually buy the first thing we’re sold!

The competition you face is not your real competitors. The competition you face is a “no sale”.

Almost all HR Tech buyers will buy your product, or they won’t buy anything. Primarily because they don’t even know you have competition. Well, they didn’t until you actually told them! “Hey, we’re the #1 CRM on the market, so much better than #2, #3 and #4.” What? There is more than one CRM!?

If you’re Smashfly (a CRM Tech) almost every single sale is going to be a “Yes” or a “No, we’ve decided we don’t need this right now”. It’s almost never “hey, we’ve decided to buy Clinch, or Avature, or Ascendify, or Talemetry, or Beamery, or”…you get the picture!

Almost never!

Your real competition is you. It’s your ability to sell your solution to a buyer that has some sort of pain around HR or TA. It’s shocking at how often this fails. I mean what can go wrong when you throw a 15-year-old on the phone with a twenty year HR vet on the other end, telling them how to fix her shop!?

And you think I exaggerate on the age! Almost every single HR and TA Tech sales person I speak is under the age of 30 and most have never worked a day in HR or TA. This leads to a ton of “no sales”.  If you can’t tell me how your solution is going to solve my pain, in my language, I’m probably not buying.

HR and TA Tech vendors, your competition isn’t the problem. Your technology isn’t the problem (it’s usually really awesome). Your sales strategy is killing you. The cute, little, naive babies selling your products is the problem. They don’t know me. They don’t know my pain. They don’t speak my language.

Your real competition is you.

Falling In Love With Your Job

Do you know what it felt like the last time you fell in love?

I mean real love?

The kind of love where you talk 42 times per day, in between text and facebook messages and feel physical pain from being apart? Ok, maybe for some it’s been a while and you didn’t have the texts or Facebook!  But, you remember those times when you really didn’t think about anything else or even imagine not seeing the other person the next day, hell, the next hour. Falling “in” love is one of the best parts of love, it doesn’t last that long and you never get it back.

I hear people all the time say “I love my job” and I never use to pay much attention, in fact, I’ve said it myself.  The reality is, I don’t love my job. I mean I like it a whole lot, but I love my wife, I love my kids, I love Diet Mt. Dew at 7am on a Monday morning. The important things in life!  But my job?  I’m not sure about that one.  As an HR Pro, I’m supposed to work to get my employees to “love” their jobs.  Love.

Let me go all Dr. Phil on you for a second. Do you know why most relationships fail? No, it’s not the cheating. No, it’s not the drugs and/or alcohol. No, it’s not money. No, it’s not that he stop caring. No, it’s not your parents. Ok, stop it. I’ll just tell you!

Relationships fail because expectations aren’t met.  Which seems logical knowing what we know about how people fall in love, and lose their minds.  Once that calms down – the real work begins.  So, if you expect love to be the love of the first 4-6 months of a relationship you’re going to be disappointed a whole bunch over and over.

Jobs aren’t much different.

You get a new job and it’s usually really good!  People listen to your opinion. You seem smarter. Hell, you seem better looking (primarily because people are sick of looking at their older co-workers). Everything seems better in a new job.  Then you have your 1 year anniversary and you come to find out you’re just like the other idiots you’re working with.

This is when falling in love with your job really begins. When you know about all the stuff the company hid in the closet. The past employees they think are better and smarter than you, the good old days when they made more money, etc.  Now, is when you have to put some work into making it work.

I see people all the time moving around to different employers and never seeming to be satisfied.  They’re searching. Not for a better job, or a better company. They’re searching for that feeling that will last.  But it never will, not without them working for it.

The best love has to be worked for. Passion is easy and fleeting. Love is hard to sustain and has to be worked, but can last forever.

Your Recruitment Strategy Needs Focus!

I’ve been in Chicago a couple of times this fall. The restaurant scene in Chicago is off the charts, just like it is right now in New York, LA, etc. It’s a great time to be a person who loves food!

If you like going to new restaurants you’ll find out quickly that the restaurants of today are not like the ones we grew up with. In Michigan, and my wife still makes fun of this, any non-chain restaurant serving “American” food basically has the same menu where they serve burgers, seafood, Italian dishes, Mexican dishes, breakfast, hell they would serve Ethiopian if people would order it!

Basically, they serve a little of everything, but nothing especially noteworthy!

The new restaurant scene has changed this completely and now you’re lucky to have 8 main dishes that are served on a menu, BUT every single thing kills! The entire menu is one side of page and seems like almost no options but each dish is better than the next. Chefs of these new restaurants found out the way to make money is to focus your menu and make fabulous dishes.

You have lower food costs because of less wasted ingredients, you’re more efficient in cooking fewer items, less complaints because you know each dish is awesome and you create signature asked-for dishes. Focus = success.

When I speak with most TA Leaders they are trying to serve a menu that caters to everyone with their TA strategy.

When you ask what they are focusing on you get an answer that sounds like this, “Well, candidate experience for sure, and branding, that’s really important to us, our tech stack is a disaster we need to figure that out, big project right now with onboarding, looking at some CRM products, new career site in the works, definitely analytics is a priority and working to really get our arms around the employee experience as well.”

What!? Sound familiar?

Their “focus” is to focus on everything! It’s the I can’t see the trees through the forest mentality of focus. It’s also a huge strategic recipe for failing in talent acquisition.

What should your focus be?  Well, that depends on what’s important you to and your organization, but it surely isn’t everything. What I find is that great TA shops have one main focus and one or two minor things they’re working on.  The main focus might be analytics and to help with that they’re also implementing some new technology and building out what impact those results will have. Those results will then become the next focus, and so on.

Do a few things really, really well, then move on to develop something else that will be world-class.

 

Michigan Recruiter’s Conference 2016 Takeaways

Last week the 3rd annual Michigan Recruiter’s Conference took place in Grand Rapids, MI onsite at our corporate host Amway World Headquarters. 150 Corporate Talent Acquisition Leaders and Pros participated and heard from an outstanding lineup of speakers including Gerry Crispin, Laurie Ruettimann, Chris Bailey, Kerri Mills and Katie Born.

I leave each time amazed at the talent we are able to bring into Michigan! Some of the brightest minds and ideas in the talent acquisition industry, but also the passion the TA pros in Michigan show in coming in and engaging with each other on a peer level.

My Takeaways from MRC 2016: 

– It takes a very confident HR and/or TA Leader to want to bring in another 150 corporate TA pros into their own shop. We’ve been extremely lucky with Accident Fund, Spectrum Health and now Katie at Amway over the past three years. I think it demonstrates how important TA is to the organizations that host and how important developing their team is to that leader.

– Gerry Crispin comes in and looks like he’s been in TA for 40 years. Wait, he has! But, for those who haven’t seen him, they believe, “oh, here comes some old dude to tell us how he recruited people back in WWII!” Gerry always blows them away!!! He is so on top of how the best, most innovative TA shops are doing it on the planet, he leaves with jaws dropped. I always chuckle at the young bucks who had no idea they are about to get completely schooled by an old dude!

– You know you have a great speaker when people can’t write down the ideas fast enough! Kerri Mills had pens burning up at MRC. I had a feeling she would kill after seeing her presentation at SourceCon and she did awesome. Side note: when you work at Indeed, people expect you to know everything about Indeed!

– People who can tell a good story, are great speakers. Laurie Ruettimann and Chris Bailey both killed with great stories! They had great content as well, but you could tell me how to make Mac and Cheese and if it’s wrapped in a great story I’ll be entertained for an hour! Also, if you have a British accent you’re automatically considered brilliant, funny and adorable by an American audience. (Note to self: work on British accent)

– In classic HROS.co fashion, Amway’s TA Leader Katie Born figuratively opened her Kimono and shared what she and her team were working on to the entire talent market in their area. The good and the bad. What’s working and what they still need to get better at? What tech we’re using and what tech we’re looking at? It was a great example of what we should all strive for as TA Leaders.  Bravo!

I had one trainwreck moment. The idea was to speed network. I hate when people go to a conference and either sit alone or sit with the only people they know, so my idea was to get them to meet 4-5 new people and make some connections. Great idea! But 150 people trying to find smaller groups of three in a room was comical and loud! In the end, people did meet new people!

Our goal for MRC 2017 is to be in the Detroit Metro Area! To bring Detroit its first ever corporate talent acquisition conference specifically for Michigan TA Pros and Leaders! Want to be a part of it?  We are currently looking for a corporate host! What does that mean? We need a big room that can hold 150 or so people, with tables and some AV equipment!

We’ll bring the food, the talent, and the TA Pros!  We just need to use your space for the day. Let me know if you’re interested (timsackett@comcast.net).

 

Cutting Corners Equals Better Performance

So, there’s this famous behavioral learning study that gets performed over and over by various researchers. It’s basically the lever study in which if you learn to pull the lever something good happens. The classic is usually a monkey and the treat is a banana. Monkey learns to pull the lever and they get a treat.

The question always is, how long does it take or how many steps, can we train them in some way to do this quicker. Recently, a similar study was done with children and dogs. The researchers found they could train the children in five steps to they would get pretty good at pulling the lever and getting the treat.

The dogs, on the other hand, were another story! You see, dogs can be trained very well, but their natural instinct is not to follow rules, but to find the fastest way to gratification. The dogs mostly just went right for the box, tore off the lid, and got the snacks. Guess what? You don’t have to push down a lever if you rip off the top!

Dogs are good at cutting corners.

When I worked for Applebee’s we constantly spent time and resources training cooks how to cook new menu items. We built entire programs, did training sessions, had rewards, would go back and constantly check and test. It was critical that the Tequila Lime Chicken you ordered in Detroit was the same Tequila Lime Chicken you ordered in San Diego!

Problem was, the best cooks would always find ways to cut corners and do it as well, if not better, and faster! We would have it timed out and stepped out to the second and the data would start rolling in and show us that some kitchen in a location in Indiana is cooking it 45 seconds faster than everyone else!

It was our cooks that found if you take a skillet, turn it upside down over a piece of cooking chicken, you can cook that piece of chicken like a third faster without losing any moister or taste! At first, we pushed back in operations and sent memos out to not do this! It wasn’t “procedure”! Not soon after our test kitchen sent out specs on how to ‘dome’ chicken using an upside down skillet!

Cutting corners became the new procedure!

Organizations usually have an issue with folks who cut corners. It’s believed that cutting corners will lead to lower quality, less customer satisfaction, etc.

To me, many times, cutting corners is the first indicator that you’ve loaded in a bunch of waste into your process! Many times the people cutting corners are showing you there might be a better way of doing things, a faster way, an easier way. I’m a big believer in let’s not make this harder than we have to

Want to increase performance in your organization? Look for those cutting corners and determine are they just being lazy, or have they figured out a better way!

The Cost of a New Hire is $1000-$5000!?

Ryan Holmes, the CEO at HootSuite, recently posted an article over at LinkedIn. Ryan is, of course, an “Influencer” for LinkedIn, because he’s a CEO and because he works for a cool brand like Hootsuite. Who cares if he knows what he’s talking about, he’s from Hootsuite, muthfucka!! He must be influential!

Anywho.

Ryan was actually talking about Google’s “bungee” program (see if you’re influential you talk about Google!) and how millennials only care about being developed. Because if we know anything we know young people are great judges of what they actually want. So, Ryan and Hootsuite are actually coming up with their own copycat program and calling it “stretch”.

This program basically allows Hootsuite employees to try out other roles within Hootsuite one day per week, and if it goes well to eventually into that role full time. The basis of the program being that “great employees will be great employees in any role, given the change”.

But, one other big thing jumped out from the post. Remember this is a CEO of a major company. He based all of this program on cost of turnover and believes his cost of turnover is $5000 per employee leaving! $5000!? Now, if you spent 17 seconds in Talent Acquisition you know there is no way $5000 covers the cost of a top employee, probably not even a crappy employee.

SHRM, and other organizations, continually throw numbers at HR and TA that say they believe the cost of turnover is usually 1 to 1.5 times the salary of the person leaving. Do you see the problem with the HR math we have?

CEO believes that it cost $5000 to replace an IT Developer in your company making $85,000. You believe is costs $85,000-125,000 to replace that person. THIS is a major problem and disconnect!

It would be easy for me to say, “well Ryan just pulled some bad data from some crappy content put together by a TA tech vendor to help shape their own story”, but it’s truly the reality for most executives. This is why I constantly caution TA pros and leaders to stop using the 1-1.5 times metric and start asking your executives what they think it is.

In my experience, what I find is most executives, for a professional position will usually give you a number around $10,000. The biggest miss of executives is they never calculate the revenue and profit a great employee produces versus a bad employee or having that position left open. This is where the SHRM number comes from.

This is problematic because most executives won’t tie revenue numbers to someone who’s not in sales, wrongly, since everyone in your organization has an impact on revenue and profit. So, you can fight this battle, which you’ll mostly lose, or you can just go with what they believe and build your story from there.

$5,000-$10,000 per lost employee aren’t small numbers, it’s still significant dollars to work with as a TA leader, and you’ll get better buy-in from CEOs like Ryan!

 

Exceptionalism is the New Normal

It’s the fall HR and TA Conference season. Pretty much every single week between September and December you can find multiple HR and TA conferences to attend around the world. It’s a crazy business all fueled by vendor expo dollars, pseudo-thought leadership, and a professional desire to get away from the office for a few days.

The entire conference is built on this secret. The secret that all you have to do is show attendees how bad they suck and they’ll keep returning year after year! Part of that secret, though, is not flat out telling you that you suck, because, well, that would suck! It’s showing you how great everyone else is, so you feel like you suck in comparison!

“Holy crap, Google is now building their own genetically perfect mix-raced, mix-gendered employees that never call in sick! How are we ever going to compete with that? We need to get better! We better buy some more of this crap in the expo to help us catch up with Google!” 

When all you hear about is the greatest and top innovations in an industry, you begin to believe everyone else is there except us, we need to hurry and get there as well. The reality is, we are all so far from perfect it’s actually a little bit scary.

Exceptionalism is the concept that is everyone is great. If we are all this unique and perfect snowflakes, then none of us are really unique and perfect snowflakes. Meaning, if everyone is unique and perfect than that becomes the new normal, the new average.

This is best practice in HR and TA. Google’s innovation becomes Walmart’s best practice. If we are all doing the same thing, we are all average. They don’t tell you that when you book that $500 plane ticket and pay $1995 to attend the HR Universe Conference at the Best Western Plus in Biloxi, MS!

That’s not part of a conference value proposition! Hey, pay $4000 in travel and registration to be like everyone else! Unless, you feel like you’re first less than everyone else! The reality is 99% of TA and HR shops are all about the same. Some are better at certain things than others but then suck way worse at something else.

The truth is…

– Building great HR and TA isn’t about major change, it’s about continual, disciplined improvement and always striving to get better outcomes that your business needs for better results.

– Trying to keep up with the 1% will almost always get you fired as a leader because the majority of organizational leadership just don’t value being in the 1% enough to make that commitment to get there and you trying to push them there will wear thin.

– Most of you aren’t wired or willing to do what it will take to become a truly exceptional HR or TA shop. That takes major vision and major sacrifice to reach, and most of don’t have that level of vision or are willing to have that level of sacrifice individually, let alone both.

But, that message above, doesn’t sell conference passes! Telling you that you also can be a unique and perfect snowflake sells conference passes. You just need to trash your current tech stack and build something completely new, like Google!

 

Can a Better Lunch Experience Lower Employee Turnover?

You might have seen this recently, a sixteen-year-old girl from California, Natalie Hampton, developed an App called, “Sit With Us”. The App basically lets kids know who in the lunch room would be open to sitting with them. She came up with it as a way to help stop bullying:

“At my old school, I was completely ostracized by all of my classmates, and so I had to eat lunch alone every day. When you walk into the lunchroom and you see all the tables of everyone sitting there and you know that going up to them would only end in rejection, you feel extremely alone and extremely isolated, and your stomach drops. And you are searching for a place to eat, but you know that if you sit by yourself, there’ll be so much embarrassment that comes with it because people will know and they’ll see you as the girl who has nowhere to sit.”

Through circumstance, she gets to go to a new school and has a different experience. She is now accepted, she has people to eat lunch with, but she remembers how having no one made her feel, and comes up with this idea for the App.

She’s awesome. The world needs more Natalie’s!

This idea has got me thinking about how this could have an impact at our workplaces as well. We already know that having a best friend at work increases tenure and happiness at work. Having someone to go to lunch with is usually the first step in making a new friend!

The tech is simple which is why it makes so much sense. We go through so much effort and resources to get people hired. We provide great orientations and onboarding. Then we kind of leave it up to them to figure the rest out. We all probably think the same thing, “Well, we’re all adults, go make friends!” or “Their boss, and the team, will make them feel welcome.”

Then, we hear from their boss that they put in their notice and we’re shocked.

A workplace version of “Sit With Us” could really help individuals in organizations quickly feel like part of the team. Like they have a place. Like they found ‘their’ place at your organization. The best hires are the ones we never have to make.

I see tons of technology in HR and TA and I’ve even seen a few employee communication technologies that could probably be used in this capacity but weren’t designed to just do this. (If you know of one, please share it in the comments so everyone can check it out!)

 

 

 

Recruiting Secret #5

Everyone wants to know the secret to great recruiting. Candidates want to know how to get into companies. Recruiters want to know each other’s secrets to finding great talent. No one seems to be sharing their secrets, so I thought I might as well fill everyone in…

Recruiting Secret #5

I haven’t read a cover letter to a resume since 1999.

If you are sending a cover letter with your resume, the recruiter that is receiving that letter thinks you’re a moron. If you’re being told to develop and send a cover letter, the person telling you to do that is a moron.

Cover letters died when ATSs began accepting applications and resumes. At this point, even if you are able to upload a cover letter, no hiring managers are ever going to see that, and most recruiters will never read a sentence of it either!

Want to live like a rock star? Move to Detroit!

Glassdoor recently published a list of the Top 25 Cities where your pay will go the furthest. Who topped the list!? Yep, it’s DETROIT! GD found that the Cost of Living ratio in Detroit is 50%! That basically means that when living in Detroit you get to use 50% of your income for things other than bills! What is the Cost of Living ratio in San Fransisco (the lowest of all American cities)? 11%! Basically, you only get to use, for your own enjoyment $.10 of every dollar you earn in San Fran!

What is the Cost of Living ratio in San Fransisco (the lowest of all American cities)? 11%! Basically, you only get to use, for your own enjoyment $.10 of every dollar you earn in San Fran!

So, if you read this blog a couple times you know I’m a fan of Detroit! Everyone loves a comeback story and Detroit might be the single biggest comeback story on the planet right now. Being at the top of this list just confirms what others in and around the Midwest have already been seeing.

Here’s the Top 10 in order:

  1. Detroit, MI
  2. Memphis, TN
  3. Pittsburgh, PA
  4. Cleveland, OH
  5. Indianapolis, IN
  6. St. Louis, MO
  7. Cincinnati, OH
  8. Birmingham, AL
  9. Kansas City, MO
  10. Louisville, KY

So, what jumps out about this list?  For the most part, it’s mid-sized, midwest cities.  Low cost of living. Four seasons. A lot of Applebee’s restaurants (at least that’s what the people on the coasts think!). One southern city on the list in Bham – which I hear from Kris Dunn and Dawn Burke is a hidden treasure.

I’m a midwest guy, born and raised. Went to college in the front range of the Rocky Mountains. Have visited every big city in the U.S., multiple times. Big cities are great, but not the best place to raise a family. California’s weather is awesome if you like paying $1 million dollars for 700 square foot home next to a highway.

The reality is startups and Fortune 500 companies are beginning to see what Glassdoor found in putting this list together. Google has a growing campus in Ann Arbor, MI, located about 40 miles from downtown Detroit, about 15 miles from the Detroit airport. It’s easier to attract and retain a Midwest workforce than it is when you’re primarily trying to recruit to the coasts.

This is especially true when your workforce starts to get to the age where they want to settle down, start a family and buy a house. Sure, it’s fairly easy to get college-aged kids to relocate from the midwest to California, New York or Boston. The trick is keeping them there! In Michigan, I see this every summer. The kids come back to have their weddings. Once they’re back, they begin to feel that pull to stay ‘home’.

This is why Midwest companies that are great at recruiting all have some sort of Boomerang recruitment strategy. Most are diving deep in their databases to find students who graduated over the past five years and building a database of 1-5 year experienced pros they are reaching out to constantly, ‘welcoming’ them to come back and enjoy the riches of the Midwest!