“I Fully Reject the Employment Model of Pre-Pandemic America!”

This was an exact quote on a comment on one of my blogs about how hard it is right now for companies to find talent in America to work hourly jobs. This isn’t the first time I’ve heard something like this from an old GenZ or very young Millennial (basically early to mid-’20s).

What does this even mean!? 

Let me interpret, for the older millennials and GenXers in the crowd who are actually working and don’t have time to learn the GenZ vernacular. This is actually a cross of GenZ and Snowflake which can be very confusing sometimes to understand.

What this person is trying to convey is that they don’t believe they should have to work a job for pay and benefits (employment model of Pre-pandemic America). They actually love the employment model of Pandemic America – which is either sitting at home and getting paid to mostly not work, or actually just collecting unemployment and government stimulus to the tune of about $1000 per week, to do nothing at all.

Their idea is in Post-Pandemic America they would like to continue to get paid a living wage and benefits to do what they want. That might be something very productive and useful, like volunteering to help children to read or older people to have a better life in their later years, or it might be growing weed in their basement. This employment model is much more attractive to them. I get great pay and benefits to do what I want, not being told what to do by “the man”.

“The man” doesn’t actually have to be an actual “man”, it might be a rich woman or rich non-binary person. Basically, anyone who would make money off of their labor is now “the man”. They also reject anyone making money from their efforts, except for themselves. Which is actually wonderful if they would start their own business, but that would take work that feels too similar to an employment model of pre-pandemic America. Because of course, they would then become “the man”.

And you wonder why you can’t find anyone to come work for you? 

Some would believe this to be a socialist movement that has began to grow in America, mostly started by Bernie followers. No, this isn’t socialism, this what happens when you helicopter and snowplow parent your way to a generation that thinks the world should revolve around them.

I should only get A’s because my Mom says I’m the smartest little boy on the planet. And I should only get first-place medals because I showed up to the game. In fact, we should all get first-place medals because there should be no losers in the world, only winners.

And we truly wonder why terrorists want to bomb our country.

The world, in the end, will be truly harsh for these people if they don’t change. The world, since the beginning of time, has winners and losers. If you think socialist societies don’t have winners and losers, you might actually want to read about the history of socialist societies and inequality.

Do CEOs of companies need to make one hundred times more or a thousand times more than the average worker? No, probably not, but if you think you can just show up to a job and you should be within ten times of a CEO’s salary, you’re actually just ignorant.

This isn’t a political statement. This is the real world. Every single elected politician in the house and the senate is more wealthy than the average American by a giant margin. All of them. Winners and losers. People who take risks to start a business get all the bad and all the good. America, for good and bad, was built on Capitalism. It’s not perfect. I don’t know of a perfect society or culture in the world.

So, I do not fully reject the employment model of pre-pandemic America! 

Is it great? Nope. Can we do better? Yes.

Have we changed the employment model any over the past century? 1000%

Worker safety, health and wellness, D&I, training and development of skills, employee engagement, candidate experience, you could literally list a thousand improvements that have been made to the American employment model. And we’ll continue to improve.

I have hope that we’ll get better and solve our pay equity issues and we’ll continue to improve our diversity, inclusion, and belonging for all employees. America is a big and complex situation. Change does not happen overnight. For how bad young people think we are now, we have made tremendous strides along the way.

Okay, time to end this, I’m starting to feel like this guy…

Buy Game Stop! No wait, get back to work!

Everyone is talking about Game Stop and AMC and a bunch of other companies that no one should really be talking about! Why? Because a bunch of remote workers are sitting at home, not working, and playing around on Reddit and their Robinhood brokerage accounts!

Yeah, I said it!

You have employees you’re paying to work remotely who are messing around thinking they’re day traders by buying crappy stocks off Reddit suggestions. Also, they think they’re sticking it to the “man” by doing this, so in their mind, they’re really saving the world. All while you’re paying them to sell more Saas software…

This is why Remote Work doesn’t work! 

Everyone loves Remote Work. Why wouldn’t you. You get paid to do the same work in half the time, and you get to do it sitting on your couch with Netflix running in the background and you’re still wearing the same stretchy pants you woke up in! God Bless America! Am I right!?

Remote Work fails when leaders feel like even one person is taking advantage of the system!

Look I get it, I get that Timmy is sitting in his office, at the office, and still not doing anything, but Mary, your CEO, can walk by Timmy’s office and scare him enough into thinking he should probably do some work.

Most organizations suck at having measurable performance indicators for every position, or any positions, besides sales. Most performance measures that employees have, would happen regardless if they actually did their job or traded crappy stocks all day, or ran an Etsy shop out of their cube.

Can’t we all just be adults!? 

Apparently, no.

You don’t want to be micromanaged at work, but the true future of “Remote” work is we are going to micromanage the sh*t out of you! (No, not me, all the other bad folks!) The bigger the company, the better the technology they’ll be able to afford to ensure you’re actually working and not acting like a wannabe revolutionary taking down the stock market by buying bad stocks.

If you have over 500 employees working remotely right now, at least 3% of those people are amateur day trading on your dime. It’s just a numbers game, at this point. Depending on what your business does, you can probably raise or lower that number 1-2%.

“But, Tim! You don’t get it! I work a flexible schedule, so I’m putting in more hours and still being a bad day trader!” No, you’re not. You’re an idiot who is going to cry you got wronged when you get fired because your company found out a part-time seventeen year old can produce more than you, without any formal college education.

Gawd, I actually love being the voice of reason! 

Man! I’m not a life coach, but what I wouldn’t do to punch some stupid 35-year-old dude in the mouth who’s trying to explain to me why Game Stop is a good investment, ‘really’! Turns out, no one needs a brick and mortar store to buy online games! Thanks for the advice, Trevor, how did all those folks at your company respond to that analysis in the company Slack!?

Okay, you don’t have to work forty hours a week, because when you’re home you have fewer distractions and you get your job done in thirty. The question you should really be asking yourself isn’t if America is considering you a hero for buying Game Stop stock, but if you can do that all day and still get your job done, who else is thinking they probably don’t need to be paying you any longer?

I can guarantee you, Game Stop doesn’t care about your job!

Does a $15/hr Minimum Wage Really Help Workers?

There might not be a more controversial topic in 2021! Whether or not we (the United States of America) should raise the minimum wage for all workers, in all states, in all jobs to $15/hr.

I would love to say this is ‘simply’ a political issue, but it’s not. It’s much more complicated than politics. Both sides will point to studies that prove why or why not we should have a minimum wage of $15/hr. The reality is, a $15/hr minimum wage is more of an economic issue than political.

What is the argument, really, for and against a $15/hr minimum wage? 

For $15/hr:

  • People need a living wage. $15/hr for a forty-hour week, roughly puts a person at an income level of $30,000 per year. Which, in theory, would bring that person above the poverty level. Let’s be clear, “above poverty level” is still a freaking tough life!
  • Corporations are making record profits on the backs of hourly workers. Hello, Jeff Bezos!
  • Other countries have done this and it’s worked out just fine.

Against $15/hr:

  • Raising the minimum wage to $15/hr and above will cost jobs. If you force employers to pay $15/hr as a minimum they’ll hire fewer workers and have them work fewer hours.
  • $15/hr minimum wage is too little for some markets and too much for some markets. We should let market dynamics decide what the minimum should be.
  • Other countries, like Australia, pay a living wage, but have you been to Australia? It’s not the U.S. It’s U.S.-like, but when you go to a “bar and grill” in Australia you don’t get waited on. You go to the bar, order your food, and they yell your name when it’s done. Need extra ketchup? Go to the bar, wait in line, and hope you can get the one bartender to get it for you. Why? Because wait staff costs too much, so they use them. Things are different. So, yeah, “waitstaff” in Australia gets paid a living wage, but those places just don’t hire very many.

What does the research really say? 

Here is where the rubber meets the road because we can always find a study that will back up whatever point we might have. I’m for an increase in the minimum wage, or I’m against it, I can share with you five studies each supporting my take. Ugh! So, what is it really?

I found a study that looked at all the minimum wage studies (not some dumb Forbes article, real academic research), both for and against, to break down the facts and the myths. Here’s what they found:

  • There is a clear preponderance of negative effects on employment when raising the minimum wage.
  • The evidence is stronger for teens, young adults, and less-educated.
  • The evidence around specific industries is less one-sided.

What does all of that mean? 

First, while you will find studies saying that minimum wage does not impact jobs, there is way more academic and economic literature supporting the other side. Also, the evidence shows a strong effect on younger workers and lower educated, so there might be some room to talk about family or adult minimum wage standards verse just the standard one-size-fits-all. There is also a need to look at minimum wage by industry, again not just across the board.

An example might be, manufacturing sectors can pay $15/hr but service level restaurant jobs can not. Or, $15/hr makes sense in New York City, but not in Winona, MN. Maybe it could be looked at via high margin industries verse low margin industries.

What is clear, from the evidence, is that a straight $15/hr minimum wage, for all people, for the entire country, is not the best remedy for our current dilemma. Most likely, what will happen, if the $15/hr minimum happens is you’ll see organizations adjust accordingly by doing a combination of rising prices, cutting costs, cutting hours, and cutting jobs.

If you believe corporations are just going to “eat” the additional expenses, at the cost of profit, you are at best naive.

What’s my take?

I don’t like the proposal of just across the board we are going to raise the minimum wage to $15/hr across the country. I don’t like it because it won’t do what people think it should do, it’s really just more political posturing. In the end, consumers will pay more (which maybe we should) and corporations will cut to make the same profits. Ultimately, workers will take it on the chin, again.

If politicians truly cared about workers, they would dig in and do a minimum wage by market. It would be way higher than $15/hr in some locations and probably a bit lower in some locations, but there would be more strategy and thought behind it. The federal government does this now with pay bands for federal workers, they should be able to do it for all workers with minimum wage.

To not include market dynamics in compensation policy shows the government doesn’t really care about workers, truly. Because when it comes to taking care of their own, federal government employees, they do take into consideration market dynamics. $15/hr in Los Angles, San Francisco, and New York City is nothing, let’s be real.

Let me hear it in the comments! Are you for or against a $15/hr minimum wage and why? 

Guest Bloggers Wanted! #Rant

Can I be real a second?
For just a millisecond?
Let down my guard and tell the people how I feel a second?

No! I don’t want your stupid Guest Blog Post! 

Several times a day I have “writers” reach out to me and ask me if they can submit a guest blog post to my blog. Anyone who blogs, in any industry, has this happen to them. The more traffic your blog gets, the more requests for “guest blogs” you get.

The problem is, all of these guest blogs aren’t what they seem. But, these folks pitching their guest blogs act like the people who own blogs have no idea what they are really trying to do.

The seedy underbelly of the blogger world! 

You didn’t know I was going to open up the kimono today and let out all the secrets, did you!? Here’s the real deal, 99.9% of folks who request to write a guest blog are only doing it so they can put up marginal content that is loaded with links that go back to a client site they are getting paid by.

They don’t care about the content.

They don’t care about my audience.

They only care about getting paid and getting their below-average content on as many blogs as possible.

Welcome to the show, kids!

I don’t want your guest blog, I want to punch you in the face! 

Look, I get it. We all need to make a buck. I’m not trying to stop you from that. I’m trying to stop you from having to lie to people all day, every day. I think the better ‘sales” strategy for pitching me a blog, should be:

“Hey Tim” (No, not just “Hi” so I know 100% you have no idea who I am) 

“I’ve got a piece pre-written with 7 link backs to my client. I’m getting paid $X for this piece if I can get it on your blog and promote the crap out of it. I’ll Venmo you $X if you work with me and getting this posted.” 

“Here is the Title and what it’s about. Are you game?” 

Here’s why you suck, super hard! 

  1. You contact me and ask to use some of the most valuable real estate I own, but you only give me your Gmail address and your first name. No company name. No LinkedIn profile link. No phone number. Why is that? Because the vast majority of you are frauds and you don’t want me to know who you really are.
  2. Your content, at its best, is vanilla. While your client loves it because you blew hot air up their asses, everyone else thinks it’s crap.
  3. See #1

Guest Blogs that I Accept

Rule #1– I don’t accept guest blogs.

Rule #2 – When I do accept a guest blog there are personal reasons for me doing so. I had my son guest blog to help him find a job. I had friends in the industry guest blog for me while I was on vacation because I love their voices in our industry and I want more people to meet them and hear them.

Rule #3 – You can’t sell my audience a bunch of crap disguised as content with a ton of link backs, where you are getting paid and me and my audience are getting your lame content!

Rule #4 – Pay the dude who owns the blog! I’m like all the kids – I have PayPal, Venmo, Cash App, etc. You can pay me in U.S. Currency, BitCoin, Gin, Puppies, etc. but if you’re getting paid, I want to get paid. It’s a fairness thing. Why should you get to put up your work for free on my blog and get paid, and I’m not? Does that seem fair to you?

So, here’s the deal! 

There are about 13,000 ghostwriters, link-back, guest blogger types right now that have bots set up reading this title “Guest Bloggers Wanted” who will start emailing me constantly, without ever reading this post believing I truly want their shitty content. I don’t. But, like everyone in the world, I’ve got a price. If you pick the right price, we can probably do business. The odd of you picking the right price, are not in your favor!

Guest Blog Inquiries Can Be Sent To: 

YourParentsDontEvenLikeYou@Gmail.com

I’ve Got a Great Business Opportunity for You!

No. No, you don’t. You have a great business opportunity for you, and you need me to make it happen.

Email Subject Lines in the Past Week

  • “Business Opportunity”
  • “Potential Opportunity”
  • “Great Business Opportunity for You!”

There was one common theme with each one of these messages sent to me. Not one of them was an opportunity for me to make money, but each was an opportunity for me to pay someone else money!

Idiots Using these Subject Lines

Do you seriously believe that these subject lines are working? That people are reading them and going, “OMG! I’m the Luckiest Girl alive today! This beautiful human chose me for this opportunity that I was neither looking for nor really even wanting! #Blessed”

I have a feeling there is something clinically wrong with the person who uses this subject line. I want to get them professional help. Medication, therapy, a punch to the throat, whatever it takes, I’m a giver, a helper of sorts.

I would love it if we could have a law where if some moron uses a subject line like this we can send them away for a while. Like prison, but more used car sales lot they have to live in for eternity. Every day, all day, just wandering the lot getting approached by an overly aggressive used car salesman that won’t leave them alone.

Look, I Get It 

I run a company that has to sell our services. Every morning I get up, shower, get dressed, and head off to work. “Gotta make the donuts!” They don’t make themselves. Our world is predicated on someone buying whatever it is we’re selling.

So, I feel for you, but I’ve got a few words of advice –

Be Better! 

Be someone who you want your kids to be. Be someone you want your grandmother to talk about at bridge club. Be someone who will get referred by one client to a future client.

Also, I get you can’t just put up a subject line that says, “Hey, buy my crappy lead generation tool!” (Although, I bet your click-through rate on that is a minimum of 100% higher than “Business Opportunity”.

The world isn’t looking to do work, to make you money. Maybe I’m wrong, maybe your subject line of “Business Opportunity” was just one big miss by me. You were saying, “Hey, I’ve got a business opportunity for me, I just need a sucker like you to bite”, if that’s the case, my bad, continue being an awful person.

Great Business Opportunity

As always, I’m here to help, fellow sales pros. Here are some subject lines that are guaranteed to get some click-through:

– I’ve got your bag full of puppies!

– You need to verify your Pornhub password

– BOGO on Wine, Chocolate, and Jimmy Choos

– Is this your Mom on Facebook?

“But, Tim, these are all lies!” I know, and I’m super excited you found the commonality between my subject lines and yours. Good luck!

 

Someone is Banking on You Being Lazy!

I work in an industry where I’ve been told for a decade technology is going to take my job. The staffing industry is half a trillion-dollar industry worldwide. The entire industry is built on us banking on the fact that someone in corporate TA is going to be lazy.

Ouch! That should sting a little!

So, I don’t really bank on you being lazy at my company. We do contract work so we are looking to fill contingent roles, not direct hire staffing, which is an industry almost completely built on lazy! For my staffing brothers and sisters out there, I hear you, I know you’re ‘just’ filling in when ‘capacity’ is an issue. (wink, head nod, wink)

There are other industries that bank you us being lazy. The entire diet industry! You’ve got overpriced awful foods, bars, shakes, workout gyms, at home gyms, etc. Because we won’t eat less and move more, because we are “lazy”, we pay a lot for that! Believe me, I pay my fair share! Just because I’m too lazy! Ugh, it’s embarrassing!

Direct hire staffing as an industry could be gone tomorrow if corporate TA just did what they were hired to do. You have an opening, you fill the opening. We aren’t trying to put a woman on the moon! This isn’t rocket science!

But, we don’t fill the opening. In fact, we do just about everything except filling the opening. We post the opening. We meet about the opening. We send whoever applies to the manager of the opening. We meet some more about candidate experience. We have another meeting about employment branding. One more meeting with the manager to see if anything has changed.

That doesn’t sound lazy, does it?

But, deflection of more difficult work is just another form of laziness.

My kid doesn’t want to go out in 90-degree heat and mow the lawn. It’s a hard, hot job. So, they come up with ‘alternative’ work that they have to do that just happens to be inside in the air conditioning.

As TA Leaders, we have to understand how are others are banking on us being lazy, and then make adjustments to stop lazy. So, how do you do that?

Well, I wrote an entire book on the subject – The Talent Fix – you can buy it here – but until you can get it, here are some tips:

  1. Have clearly defined measurable activity goals set for each member of your TA team.
  2. Make those measures transparent so everyone can see them every day.
  3. Have performance conversations immediately when measures aren’t met.
  4. Course correct as measures need to be adjusted to meet the needs of the business.
  5. Rinse, repeat.

1 -5 above is like page 37 of the book. So, you can imagine what the rest of the 200+ pages will be like! 😉

If you follow the five steps above about half of your team will quit in 90 days. That’s a good thing, those idiots didn’t want to recruit, to begin with, they just wanted that fat corporate check and Taco Tuesdays. They were being lazy and it was costing your corporate bottom line.

The talent acquisition function is not a charity case. I think in the history of HR we’ve done some corporate charity where we let people keep collecting money even though they were costing us money. They weren’t giving back the value we needed for what we were paying. Great leaders stop this from happening.

Great leaders understand that there are people in the world that are banking on us being lazy.

#CoronaDiaries – The Travesty of Hero Pay!

I’m back in the office and I’m feisty as ever about all this “Hero” pay going on across the world! I love Heros, I mean who doesn’t love Heros, but…

Can I be real a second?
For just a millisecond?
Let down my guard and tell the people how I feel a second?

Also, beyond excited that Disney+ is releasing the Original cast of Hamilton on July 3rd! In the comments give me your over/under number of the amount of times I’ll watch Hamilton on Disney+? (I’ll tell you what my wife’s number on me was after a bit!)

Should the US Women Soccer Team be Paid the Same as Men? No!

How’s that for a clickbait headline! “I knew it the SOB Tim Sackett is a Sexist!” Slow down, read the post, you might be surprised on my take…

The US Women’s Soccer team should not be paid the same as the US Men’s Soccer team. They should be paid more!

Okay, let’s dig into this issue.

The media coverage on this issue is rightly pro-US Women’s Soccer. The US Soccer’s legal team continues to make ridiculous statements in an attempt to fight for their client. That’s what you pay lawyers to do, win your case. The men have more responsibility!? What is this, 1935!?! I’m not even sure how the US Soccer’s in house council even allowed that language to be released!

Here’s the full read of the US Soccer Federation’s legal argument. It’s worth a read if you truly care about this issue.

My first reaction to this case when it first got hot last year was this entire thing is ridiculous. If the women want the same as the men, why not just do straight revenue share that is equal. Both men and women get the exact same percentage of revenue they bring and can split it up in whatever way they deem appropriate for their teams. Seem fair? I thought so.

You bring in more money, you get more money. You bring in less, you get less, but don’t bitch, you brought in less.

My thought process on this issue has changed considerably since my first reaction. I love the logic behind revenue share because the Capitalist in me seems like that is equitable and fair. You make more, you get more. But the reality is, the women, in this case, have not had the same advantages of the men for decades, maybe a century, when it comes to this issue.

Let me break down some points:

– You don’t want to hear this but if the US Women’s Soccer team had the same contract as the US Men’s soccer team, they would actually make less money than their current contract. The US Men would argue and are currently renegotiating, they would make more if they had the women’s contract! From US Soccer, the women actually make more than the men, but the men make more overall because of professional money and non-US Soccer tournaments.

– Men’s soccer has been funded and supported at such a different level for so long, it has given them a giant, one could argue, an unsurpassable advantage in player development, infrastructure, marketing, etc. This is why the US Men don’t require have compensation to play on the national team because they make exponentially more than the women playing professional soccer.

– If we pay the US Women equally to the US Men, the women will actually make less overall, because they don’t have this advantage of time and resources the men have gotten for so long. I don’t think pay equality is what is needed, it’s pay fairness. By the way, if you take a few minutes and actually read the legal documents, this also what the US Women are saying. But, in the media, it wouldn’t play well to say “we want more”! But, what they are actually trying to get, would, in fact, pay them more than the men, when it comes to US Soccer compensation, but not total overall compensation.

– Carli Lloyd, the famous US Soccer women’s player, admitted in her testimony that the US Men actually do have more “skill” when it comes to speed and strength. The use of the word “skill” is really what the media pulled out. The actually tactical and strategic soccer skills, ballhandling, passing, etc. Is way too subjective to argue that men have more skill than women.

– “Women’s Soccer and Men’s Soccer are not the same game.” This was a statement from my wife, a former D1 college athlete and a national team invitee. The name is the same, but we have to get over this fact that men and women playing a similar game is the same. It’s different! I love to watch women’s volleyball. Men’s volleyball is boring. I would rather watch men’s basketball over women’s basketball. If I love “basketball” why don’t I love watching both? Because I actually love watching “Men’s basketball”. Different games.

– The legal argument that US men soccer team members have more responsibility is just an ignorant statement. Again, based on history, awareness, resources, etc. US citizens get super pissed if US “men” lose at anything to other countries because we’ve been conditioned by mostly media, that this is how we should react. If the women lose, we tend to not be as upset. “Oh, they played their butts off! Next time!”  Again, we’ve been conditioned to this response. If we would have been conditioned that losing, men or women in a national team competition, is awful and unacceptable for decades, we would all truly believe this responsibility is equal, which it is, but we tend to think differently about, because of how we’ve been conditioned.

– These are all union bargained terms. This is why the US women have taken their argument public because legally this win will be hard. They bargained fairly and agreed to these terms. Courts love to uphold bargained agreements. You signed the contract and now you think it sucks. Okay, go back to the bargaining table. Isn’t that why you joined a union?

I hear your argument right now. “Tim, more people want to watch men over women, the TV viewership, ticket sales, etc., show this!” The reason women don’t have the same resources is because it’s not the entertainment people want. Well, for decades, men were the only entertainment option we’ve been given! “Tim, men’s football and men’s basketball pay for all those Title 9 scholarships for women!” And every other men’s sport as well. Again, historically we didn’t support women’s athletics even close to men’s. So, if we did, from the beginning, would we even need Title 9? We won’t know, we are where we are right now.

Also, I don’t give a crap that one team was more successful than another. In the world of national teams, that doesn’t really matter. In the US, our best male athletes usually gravitate to the sport that pays them the most money (basketball, American football, baseball, even hockey). Women, again, don’t have those same avenues. The highest NBA player salary in 2019 was $34,000,000 per season. The highest WNBA player salary was $127,000.

The US Women’s Soccer team should not be paid equal to the US Men’s team. They should be paid more. Paying them the same would just be another injustice to female soccer players. We have systematically put women athletes at a disadvantage for so long in the US. Not pay equity, pay fairness.

4 Great Things About Your 401K Taking a Dump!

The stock market is in the crapper and everyone’s 401K took a hit that will take years to recover, so how can any of this be great!?!

Oh, just give me a minute to explain…

Yeah, it sucks! I mean panic in the streets sucks, I just lost my retirement condo in Boca sucks! I’m trying to make light of a bad financial situation. Oh wait, I kind of am.

The reality is we all put ourselves in this situation. We gambled. We put our money into mutual funds and 401Ks and other investment vehicles and we loved watching them gain money for the last ten years! Since the great recession, the S&P 500 has tripled! If you got in early, you’ve seen your entire retirement increase substantially from where it was.

Good news, bad news. It sucks we are all taking this hit, but we’ve had a great ride up! Plus, it will ride up again, for those who have a few years. For those who don’t, I’m very sorry, truly. It’s a great lesson for us all that as we get close to retirement, get the vast majority of your money out of the market and into much more conservative investments.

So, what about this nightmare do I think is great?

1. GenX lives! It’s too late for the Baby Boomers, they’re out. The Millennials thought they were on the cusp of taking over, well sorry, kids, Daddy isn’t leaving just yet! Thanks to the market fall, Gen X is here to stay for another decade and the Millennials looking to take over as leaders are just going to have to sit back and relax.

2. Retirement is Boring! I know you wanted to retire. It seems so great sitting around Florida watching your friends get older, sicker, and eventually die. Look, you get one run around this rock, why just stop, let’s keep this thing going! There isn’t one part of me that is looking forward to retirement. What am I going to do, sit home and watch crappy CBS cop shows? Nope, apparently, I’ll be getting a second job to help pay for the food bill with all my Gen Z kids at home that can’t find jobs.

3. Being Poor is a Great Diet Plan. Do you know no one has ever written a diet book about not having money and how it reduces your caloric intake? It seems like someone would have ‘scientifically’ picked up on that. Ugh, I lost most of my retirement in the stock market, now I have to stop going out for the nice 3,000 calorie dinners at the Applebee’s! America is way fat! LIKE WAAAAYYY FAT! We all need a diet. To feel a bit hungry again. We’ll all be tougher for it!

4. I’m buying great companies at a super discount! I’m a conservative gambler. I only like winning! Do you know how you win? Buy great, profitable companies, at 50% off and double your money in a shorter period of time! Now is not the time to be gun shy. This will be one of the top 2 or 3 buying opportunities in the history of the market!

I know, there is a portion of folks who will read this and think, “Tim’s an asshole!” How can he say this!?! He has no empathy! (Editor’s Note: Tim is an asshole.)

We all choose to react to tragedy in different ways. This sucks. This sucks for me and my family. This sucks for my business. This sucks for you. We can all agree on that. I also need to move on. To move forward. We did that after the great recession and we were stronger for it. We’ll do that again.

Also, Gen X Lives!

How Would a College Education be Different if you Were an Investor?!

There’s a concept that is starting to gain some steam in college tuition funding called “Income Share Agreements”. The basis of these agreements is pretty much “I” (the investor) pays “you” (the student) to go to college and get an education. Once you graduate and get a job, I take some of your annual salary for an agreed-upon time.

From the Washington Post:

In an ISA, a student borrows nothing but rather has his or her education supported by an investor, in return for a contract to pay a specified percentage of income for a fixed number of years after graduation. Rates and time vary with the discipline of the degree achieved and the amount of tuition assistance the student obtained.

An ISA is dramatically more student-friendly than a loan. All the risk shifts from the student to the investing entity; if a career starts slowly, or not at all, the student’s obligation drops or goes to zero. Think of an ISA as equity instead of debt, or as working one’s way through college — after college.

I like this alternative to student loans because it puts much of the risk on the investor and away from the student. Also, if higher education institutions get involved with these kinds of investment funds, it truly puts accountability back on their organization to ensure they are producing graduates who are desired and prepared.

Purdue University has been doing a ton of testing with these types of agreements:

Although the very nature of ISAs protects the participant, early adopters such as Purdue have built in safeguards. A user-friendly computer simulator provides quick, transparent comparisons with various public and private loan options. No investee pays anything for the first six months after graduation or until annual income exceeds $20,000. For those graduates who get off to fast career starts, a ceiling of 250 percent of the dollars that purchased their education limits total repayment.

All of this gets you to think about what might be possible if we walked away from traditional student loan programs altogether!

What if…

  • The amount of your investment into a student returned more than you could make on the stock market?
  • Students had to present themselves, as high schoolers, to investment groups to get funding for university?
  • Investors and investing groups were only willing to fund students in careers where they could get a good return on investment? Say goodbye to history majors!
  • College students had to meet with their investors and explain why they got a “C” and missed class because they were drunk!?
  • Organizations and HR Departments started investing in potential future talent in a very real way!?

I love disruption to traditional things we have come to believe just can’t be changed. This isn’t perfect and there are a lot of questions, but it’s worth testing and trying. What we know is traditional student loan programs are not working at all! Something has to change.

I’m GenX and a Capitalist, so I love the accountability of both the investor having to make sound, prudent investment decisions around who they feel is most likely to give them a great return on investment, and the student’s accountability of understanding there’s a cost/benefit to your career choices and what it will cost to pay back those choices.

What do you think? Would you allow one of your kids to get into one of these arrangements, or would you have been willing to do this in college? I think I would have had very few people want to invest in me, but those who did would have been paid back in spades!