I was on TikTok the other night. TikTok for me has become my mindless tv. You know when you’ve had your normal busy day and you just want mindless interaction before you go to bed. The TikTok algorithm is amazing. I get all my golf vids, funny vids, political vids, puppy vids, and out of nowhere last night the algo snuck in Conor Crippen.
I was now all in down the Conor Crippen rabbit hole. I don’t even know why the algo surfaced this up, but damn it, I love it! it’s an inspiring story and I’m laying there watching Conor videos and I’m laughing and crying and smiling and if anyone saw me they would have thought I was probably having a breakdown of some sort!
Here’s Conor’s story:
On Conor’s site, he has this saying and it won’t get out of my brain: “Don’t offer yourself up to the burden.” He goes on:
“Every day, no matter what you are going through, you have a choice. You can either give in to the burden you’re facing or refuse to let it define you.”
I needed to hear that. Almost everyone I know needs to hear that.
Conor’s story is inspiring not just because of this perseverance and strength, but also because of his mother’s perseverance and strength! His aunt wrote their story in the book titled, “Just Give Me the Road” based on a quote his mother said just hours after his accident. It’s an amazing story.
Obviously, we had major news recently around abortion rights in America.
What I really want to talk about today is an amazingly quick response by organizations to immediately offer a new health benefit. Within hours of the announcement, we saw major employers come out publicly stating they would pay for the expense of their employees to obtain legal abortions if they could not get one in the state they lived and worked. Some employers also announced that they would pay for relocations for their employees to live in states with legal abortions.
All of this, just from a health benefit plan design perspective is quite remarkable!
Most employers can’t agree on offering smoking cessation programs for their employees or paying for gym memberships, but within hours, we are now paying for abortions. We have severely unhealthy obese employees, but we won’t pay for bariatric surgery. Organizations tend to move very slowly in making benefit design changes, and those changes tend to mostly be around cost/benefit.
Are we being “Inclusive” by offering an abortion benefit?
Again – I’m 100% in favor of a woman’s right to choose!
But we need to have a conversation about the hypocrisy of some of these decisions being made around this issue. This is what we do as professionals in HR. We discuss decisions we make as organizations, and how each decision tends to lead to other issues we can’t yet know what they might be.
So, we are now offering abortions as a health benefit. Why?
Let’s say we are willing to pay $5,000 dollars for our female employees to get an abortion. It definitely makes us sound like we are a very progressive employer! It’s interesting, though, that many of the employers who are willing to pay for your abortion are not willing to pay for your parental leave if you chose to keep your baby. They are unwilling to pay for childcare assistance after you have your baby.
Why is that?
Could it be, that not having children make you a more productive and less expensive to insure employee?
We must ask ourselves this question, if not only to ensure we are being inclusive in our insurance offerings to our female employees.
If you want to be “inclusive” you offer a woman a full choice. Yes, you can choose to have an abortion and we’ll support you! Yes, you can have the baby, and we will still support you! If you only choose one side, you are being exclusionary. Why?
Abortion as an employer-paid health benefit
There are benefits we pay as employers that have very little financial impact but make us look like we are an employer of choice. College Tuition reimbursement was always the biggest one. We offer you college tuition reimbursement knowing almost no one actually takes advantage of it. It’s one of the lowest-used benefits a company can offer! But, we feel great about ourselves when we market this out to candidates and employees.
Are abortion benefits the next college tuition benefit? You offer it up, knowing it makes you look like a progressive employer, but you know it really has very little financial impact. On the flip side, offering paid parental leave and childcare assistance, well, those benefits actually cost us real money, so no, we won’t offer those!
All women should be allowed to make their own choice with their bodies. Period. Employers are going to decide if they should help women with that decision. I think we, as HR leaders and professionals, should be advising our executives that having a “Choice” is about more than one option. Our benefit plans should support any choice a woman wants to make, not just one.
Abortion is health care. Having and caring for a child is health care. Organizations need to support all choices that a woman might want to make.
I went to the SHRM Annual Conference this past week. I bet there had to be six different sessions, all jammed packed, with speakers telling HR Pros to “Become their Authentic Selves”. Just typing that makes me throw up in my mouth a little.
I call this content, HR Lady Candy. You might think that is sexist but it’s just data. 80%+ of the SHRM audience is female. Those of us that speak at SHRM are building content for women. Viewing the packed rooms, HR Lady Candy sells and it sells well!
But, it’s awful advice!
If you are truly authentic and bring your whole self to work, you are bringing all of you and I’m just going to take an educated guess that there are parts of you better off left at home. Parts of you that you yourself aren’t extremely proud of at certain times. Yes, these parts are part of you, but just as I don’t walk around outside my house naked, there are certain things I don’t need others to see.
I don’t judge these speakers and their full rooms. It’s so good damn empowering to feel like you aren’t true to yourself and have someone on stage in a power position telling you to “just do it!” It’s freeing. You want to run out of that room and just let your freak flag fly! But usually, in reality, that freak flag isn’t the freeing and empowering tool you hoped it would be.
The vast majority of us in the world, need a good-paying job with good benefits. The vast majority of us want to work hard and get promoted. We want to be the best version of ourselves as much as we can. We want to be wanted by others and grow our relationships with like-minded people. “Like-minded” means how we think like most of the time. Not how we think in our worst and most vulnerable moments. No one wants to be judged in those moments. Yes, that is part of our true self, but it’s not the true self I want others to see.
But, that content isn’t very sexy. No one wants to go sit and watch a speaker say, “Just be more normal!” it’ll work out, on average, a ton better for your career!
Freak flag flyers are awesome. We celebrate them. It usually works out for about 1 out of 1,000. Are you willing to bet your career on a .01% chance of success? What if I said the freaks are successful 1 out of 5! Oh, 20% of the time they are successful. Will you stake your career on that? Doubtful, that’s still really risky!
We love to believe the SHRM HR Lady audience is super conservative. That tends to be the profile of HR professionals. This just might be why we are so attracted to the “live your true self” content. We like it because we know we’ll never really do it, but it feels so good to dream!
Every year around this time the content machine delivers an endless amount of “Graduation” advice to new grads. “As you leave the manicured lawns of your youth…” I’ve actually done the “wear sunscreen” posts myself from year to year. They are easy to write because it allows the writer to just wax poetically about all the mistakes we’ve made ourselves, which in turn becomes the advice for you to do or not do (thanks, Yoda!).
I realized just yesterday the problem with the grad advice columns is we’ve completely forgotten about dropouts! In today’s world, with declining higher ed enrollments (college starts are down 5 quarters in a row) it’s even more important that we talk to the dropouts as well. Of course, we see many more dropouts when unemployment is very low as it is now. With a ton of jobs open, young people can make really great money without going to college, so it’s a natural phenomenon.
The Sackett Tips for Grads and Dropouts
Work for the biggest brand possible right out of the gate. You most likely won’t have a great experience, but it will help your career out way more in the long run. We are all enamored with the person who worked for Amazon and Apple over JBE Automation in central Iowa. Like somehow that Apple job where you got to focus on a sliver of a project is way more valuable than actually owning an entire project. But that’s life. Go work for a giant brand.
Calculate the value of leaving a job and people you really like. You will hear estimates from “experts” telling you not to change jobs unless you get a 10-20% increase. And that is really a lot of money. But, what if the new job sucks and the new people suck. Is that $5,000-10,000 worth it? Each of us has to make that call. What I find is most people will tell you it’s not worth it.
Maintain relationships with peers and co-workers from other jobs you left and with those who left your company. That network will pay you back in the future like nothing else you have.
Say, “Yes” to jobs no one else wants. Those are the jobs that get noticed by executives. We all know the stuff no one else wants to do, so when someone steps forward and “takes one for the team” you stand out above the rest.
Protect your time, but have a reason. Executives totally understand the person who says, “I can’t this weekend, I’m coaching my little girl’s soccer team and I have to be there for her” vs. someone who just says “No”.
Every executive is looking for people who treat the organization and the brand like their own. I get it, they make a crap ton more than you, but they always didn’t make more. At some point, they made peanuts as well but treated the company like it was their own. Protected assets, spent budget wisely, etc.
Diversity isn’t about color, gender, etc. But it also is about all that. You want to hire great people who fit your culture and who are also from diverse backgrounds. Most organizations fuck this up by just hiring color or gender and forgetting about the fit. It’s not one or the other, it’s both.
Don’t wait for an employer to develop you. Find ways to develop yourself. Build a business case as to why your employer should pay for you to take a class that costs money.
Make yourself as pretty as possible. Every single study you can find will show that the more attractive you are the more money you make, the more likely you are to get promoted, work for a great company, etc. Turns out, everyone loves pretty people. You, like me, might not have been blessed with “pretty” DNA, but we can all make ourselves the best version of ourselves! Don’t believe people that tell you looks don’t matter. They matter greatly, they’ve just given up.
Put on your own oxygen mask first. I run into so many kind souls who are trying to protect and help co-workers, peers, etc., but not helping themselves. Take care of yourself, so you can properly help others.
Oh, and wear sunscreen.
So, what’s the difference in advice between the grads and dropouts? None. Turns out, once you start working no one gives a shit whether you have a degree or not, now you have to actually perform.
It’s a great time to be a hard-working, attractive, smart person in our society. Take advantage.
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 laziness! 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 fill 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 laziness. 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:
Have clearly defined measurable activity goals set for each member of your TA team.
Make those measures transparent so everyone can see them every day.
Have performance conversations immediately when measures aren’t met.
Course correct as measures needs to be adjusted to meet the needs of the business.
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.
In HR and Talent Acquisition, we tend to be in crisis mode constantly. We are some of the best firefighters are organization has! Our functions tend, by their very nature, to be short-termed focused. This month, this quarter, this year. Rarely are we able to think and plan further than twelve months ahead.
The problem is, currently and in the future, we (the U.S. and pretty much every industrialized country on the planet) are not making enough humans! In the U.S., we are early Japan. This means our birth rate has dipped below the replacement rate. Japan has been facing this crisis for decades; we are just starting down this path.
Why does this matter?
If we can’t replace our humans, we have a shrinking workforce, and it’s very hard to grow.
If we aren’t going to grow enough humans, we have to find another path to get more humans, and that’s immigration, and in the U.S., we have been awful at immigration.
If we can’t get real humans, we have to build robots. The problem is, why robots will come faster than humans, it still takes time, and robots can’t effectively replace humans in most roles.
What is the solution?
This might sound a bit controversial, it’s definitely out of the norm, but HR needs to build a policy that encourages our employees to have babies!!
“Wait, what?! You want us to encourage our employees to have s…”
Okay, hear me out! Japan knew it had an issue decades ago and did nothing to address it, believing nature would take its course. But it didn’t! We have the opportunity to reward and compensate our employees for growing our next employees!
In the U.S., historically, we’ve also sucked at parental leave policies, and we’ve held parenthood against workers for promotion. Having kids, for the most part, has been a negative to your career. We need to change that! We need to make it a reward and benefit to your career. Like, imagine if Mark and Mary had seven kids! They both should be promoted immediately to Vice Presidents or Chief Growing Officers or something!
I’m only saying that half-joking! We are in a crisis and to get out of a crisis takes bold moves.
The hard part of encouraging our employees to procreate is that HR has spent its entire existence trying to stop our employees from doing this very thing! Now I’m asking you to become the Chief Baby Officer.
Um, are there other solutions?
Yes, but America tends to hate both of these options, traditionally.
The first option is to completely revamp our immigration policy and allow in millions of immigrants in both skilled/educated backgrounds and non-skilled/labor backgrounds. Traditionally, both political parties are against this because of the belief immigrants take jobs away from current citizens. Labor Unions hate this. Conservatives hate this. It’s usually a political non-starter.
The UK recently made a major change to their immigration policy because, like the U.S., they are facing a similar human challenge, and we should all take note because it’s an amazing policy. Basically, it allows professionals to come in with a Visa before getting a job, as long as they can prove they can pay their own way. This works because one of the biggest hurdles in U.S. immigration policy is we force an immigrant to have a job before they can enter, and for most U.S. employers, that just doesn’t work from a timing perspective.
The second option is more automation and robots. This is another one that labor unions tend to fight because it takes jobs away from humans. Unfortunately, this one is moving forward because we just don’t have enough workers, and even unions can’t produce more unions. More and more, we’ll see automation take the place of traditional roles we are used to seeing humans in. Cashiers, order takers, warehouse workers, truck drivers, etc. This is scary for many but a necessity for employers looking to run their day-to-day operations.
You might think that encouraging your employees to have babies is a very out-of-the-box idea, but in HR, we need to start thinking more long-term about how we’ll manage our workforce. If you believe your company will be around twenty years from now, a part of our job, strategically, should be thinking about this workforce concept.
6.68% of Americans make $200,000 a year or more. Of course, that is centered around certain areas. States like California, New York, Connecticut, New Jersey, Maryland, Massachusetts, etc., have a much larger percentage than the average. States like Mississippi, Alabama, Louisiana, most of the Midwest, etc., are under the average.
The Wall Street Journal had an article this week about how Walmart is struggling to fill their store manager jobs. Specifically, their General Manager job, the number one job in a Walmart store, which pays around $200,000 per year.
You would think with so few people making $200,000 a year, Walmart would have smart, ambitious folks knocking down their doors for a chance to make $200,000 per year!
But they don’t. Why?
First, most organizations tend to promote from within. Walmart is similar to this, but reality eventually hits the ceiling. An average Walmart store probably does a revenue of $50-100 million per year. The net income of those locations probably runs around $3-5M per year. There are roughly 350 employees in a Walmart store. Running a single Walmart store is like running a mid-sized enterprise business! Most SMBs in the country have a revenue well under $1M.
This means that Walmart can most likely train an hourly store employee to become a department manager but to become a General Manager, they are looking for some formal business education. You have to run a giant P&L. You have major risk factors. You need real leadership skills. In many towns, “the Walmart” is probably the biggest business in town!
College kids, on average, don’t want to leave State U for a $ 65,000-a-year job as a Manager in Training at Walmart. It’s not something you go back to the homecoming football game and brag about. Your friends took that $50k per year job with the tech firm in town as an entry-level, you make more, but they look down on you.
I know some folks are reading this and thinking, “So! You make more! You will continue to make more! You are in line to run a giant business! Who f’ing cares what others think!” Young adults do. Young adults care what other people think. If I’m frank, and I usually am, we all care what others think!
What would I do if I was at Walmart?
I love this game. It was the basis of my entire book! What would Timmy do if he ran your shop!
#1 – Stop trying to hire or require any form of formal education. Yes, you need smart folks, so give cognitive assessments. Find smart people who can learn quickly, who also have some “hustle” and “grind” to them. You probably have a ton of folks already working for you that you won’t consider. You also have to look at talent pools we tend to discount, most notably, in this case, 50 years and older, retired military commanders, etc. Walmart wants to solve this by talking new college grads into these jobs, I’d be talking failed executives into these jobs! Big salary. Big team. Big job. College grads don’t want that, your Dad does, and a retired military leader who is used to leading hundreds of soldiers does. Also, your Dad will work 60 hours a week and think it’s normal. A new grad will work a solid 40 and think it’s North Korea.
#2 – Build the Manager School. If a great GM in a Walmart environment makes them $3-5M a year, there are margin dollars to build more great GMs! Part in-person instruction. Part on the job training. Part virtual instruction. All the way in on fully engaging non-stop. Send them to manager boot camp. Make it exclusive. Bring in big-time celebrity speakers around leadership and performance. Do graduation with a gold watch.
#3 – Make it so lucrative they won’t want to leave. $200K is nice, but you need some other stuff. You need to make folks say, “F! You!” To their friends who don’t think Walmart is cool enough. What is that? I don’t stock options. Partner programs on profit sharing. Company SUV.
Here’s what I know. The profit difference between Walmart’s worse GM store and their best GM store is so big it would make you blush. It’s millions of dollars. So, making sure you hire, train, develop, and take care of the great ones is priority number one. Building the talent pipeline to successful GMs would be the job of a team of people that included great recruiting leaders, brand and marketing leaders, and technology and data leaders.
I’m not saying this is an easy job. It’s enormously difficult and complicated. But, it’s doable. The problem is, that every organization thinks the solution to their problem is new college grads. They can help, but it’s only one sliver of the full pie that is needed.
When 4-5 million people per month change jobs, mostly for more money, there are going to be some consequences! Turns out, the grass isn’t always greener when you get more green!
A Muse survey, reported in the WSJ, recently found out that nearly 75% of workers who’ve changed jobs recently have regretted it, and 50% of those would try and get their old job back! That’s a lot! But it’s not surprising.
The biggest stressors we have in life are having kids, buying a house, and changing jobs. We tend to make bad decisions when stressed, and when you have 4-5 million people per month making that decision, well, that’s a lot of bad decisions!
What will we learn from the Big Regret?!
1. Money isn’t everything, but once you get more of it, it’s hard to go back to the old money level.
2. The old job and the old boss didn’t really suck, and the stuff we thought sucked at the old job, suck at the new job as well. It’s called “work” for a reason.
3. The power of someone paying attention to us and making us feel pretty is the most powerful force on the planet. Never underestimate it.
4. You can go back to your old job, but it will be different. It’s like going back to your ex. You are both a bit smarter and a bit more cautious now. There are some scars. Same people, same company, same job, but it’s not the same. Doesn’t make it bad, but you can’t expect it to be the same.
5. You can’t really judge a job until a couple of things happen: 1. You actually know how to do the job fully; 2. Co-workers stop seeing you as the newbie. In every case, that timeline is different. Be patient and do the job before you judge it.
6. If you find that you have an asshole boss at every job you work, the asshole might be you, not the boss.
7. In the future, when we have more jobs than available workers, let’s not act surprised when people start changing jobs. It’s happened in every similar economic cycle in the modern world. It’s called oppotunity. Don’t confuse that with the world has changed.
What should you do if you hate your new Great Resignation Job?
Take some time to really determine what you hate. Was that different from the old job? Was it the same? Will it be that way at the next job? Too many folks don’t know what they hate and they just keep selecting the same jobs they hate time and time again, but with a new pay rate and new address.
Some of us immediately want to return back to our old job. That might work, it might not. A psychological thing happens to so many managers once you leave them. It’s like you broke up with them and now you want to run back to that comfort. You’ll find many have no interest, and it has nothing to do with your value and performance, and everything to do with them feeling like you’ll hurt them again.
Try and find something you like to do, but call it “work”. This is different than the B.S. you’re told about work doing something you love and you’ll never work another day in your life! I’m no life coach, but that crap doesn’t work. You call it “work” even if you love it, because one day you’ll show up to do what you thought you loved and find out its work, and you’ll be depressed and broken. You don’t love work. You love your family and your God and puppies. You work to put yourself in a position to be able to do what you love. If you’re super lucky, every once in a while those two things will overlap.
Yo! I’m still out in Denver at the glorious Gaylord Rockies for SHRM Talent. If I don’t make it back to Lansing, MI, there’s a 74% chance I got lost in the Gaylord and I’m thriving off the food small children dropped along the way.
Some common themes coming out of SHRM Talent:
Hiring is hard.
Employees seem changed. Neither good nor bad, but different.
There’s a new normal, but we don’t know what that normal is yet.
One of those things that a lot of folks are talking about is what most of us consider the normal career ladder. You start at the bottom and then you spend the next 40 years of your life climbing up it, and then you die. Turns out, people seem to think that isn’t as glorious as we make it out to be.
The problem is we still view this climb and desire to climb as one of the main characteristics of a great employee. Another problem is people want more and more money and the way to get more money is to get promoted. Another problem is many times the people who want to move up, actually suck at the next level. Another problem is we use the promise of promotion as a way to retain talent when our total compensation isn’t great.
We’ve got 99 problems, and moving up the career ladder is one big one!
How could we burn down the ladder and create something else?
If I had this answer, I would not be writing blog posts from the desk at a Marriott hotel in Denver on a Tuesday evening! Let’s be honest.
What I know is the future of talent development is going to look different. There will be ways for employees to move horizontal, down, and on an angle, not just up. We will figure out the compensation stuff. I mean we already have, but we get caught up in traditional compensation design and philosophy, another problem. Traditional labor seniority systems really did a job on us over the decades! We fight constantly to stay within those constraints at all levels and within all industries.
I think it starts with us developing employees around a concept of professional competence and skill development, and not around the next level up within the organization. There use to be a time in our world were we valued mastery. We devalue mastery in today’s world, and we overvalue one’s ability to navigate the path upward. Our children are taught that they should strive for and desire upward levels. Instead of reaching mastery within a field.
That’s a hard organizational culture shift to make happen.
I think the tech world might have a better chance of reaching it faster. In that world, the value of mastery is greater. You can be a master developer and definitely make more and bring more value to a company than the manager of product management. And that’s not dumping on someone who wants to lead people, because we all know how difficult that is as well. But, just because you lead people doesn’t mean you necessarily are more valuable than the people you lead individually.
It’s such a complex and difficult topic, which makes it fascinating to talk about the future and its potential. To work in a world where each person is valued on their individual skill set and not based on the level of organizational ladder achievement would definitely be something to see. I think we all know some managers that would be in for a pay cut!
First, shoutout to @Hervbird21 (Recruister) on Twitter for starting this conversation (Editor’s Note: Hervbird21 I don’t know who you are but send me a note and I’ll share your LinkedIn if you’d like) Also, take a look at the Twitter thread as there are some exceptional recruiting thought leaders who had thoughts on this subject.
I’ve written about this a number of times over the years, but with the recruiting market being so hot right now, I’ve actually had a number of Recruiter compensation calls with corporate TA leaders trying to figure out three main things: 1. How do we retain our recruiters; 2. How do I attract more recruiters; 3. How do we reward great recruiting performance?
First, I’m all in on the fact that recruiters should be paid in a pay-for-performance model. That doesn’t mean that corporate recruiters, agency recruiters, and RPO should all be paid the same way. All three of those roles are different and should be compensated based on what the organization needs from each recruiter.
Let’s take a look at the Pros and Cons of Performance Pay for Corporate Recruiters
Pros:
You get more of what you measure and more of what you reward.
Your best recruiters will be compensated more, and higher compensation is tied to longer tenure.
Low performers and internal recruiters who actually hate recruiting will hate it and self-select out.
It will most likely raise individual recruiting team member performance in the aggregate.
Cons:
You will most likely have turnover with this type of change
Potentially, you could get behaviors that aren’t team-oriented. (IE., senior recruiters not helping junior recruiters)
Potentially, you could lower your quality of candidates as recruiters move quickly to gain performance comp. (the quantity over quality argument)
It actually might increase your compensation budget, initially, until you can find the model that is most effective.
Okay, wait, why did I say “potentially” on the Cons? Primarily, because it truly depends on the model design. Just making a decision to pay more for hires is ridiculous and leads to bad outcomes. But, developing a model that rewards individual performance that is based on recruiting behaviors that lead to better hires, quickly, and in a team setting, well, now you diminish the negative outcomes of pay for performance.
How could we make pay for performance work for corporate recruiters?
I’m not trying to dump on all the folks who commented on “Quarterly Bonuses” but stop that! “Quarterly Bonus” really means, “I don’t want to be individually measured and held accountable, but I also want more money on top of my great base salary”. Quarterly bonuses in most corp TA shops are a joke. They are usually based on Hiring Manager satisfaction and days to fill, two of the most subject measures that have zero correlation to better recruiting.
Also, internal recruiting pay for performance is not just a modified agency or RPO model. Corporate recruiters do much more than just recruit in most TA departments, so if you reward them to just recruit, understand, you’re just standing up an in-house agency model. Your internal recruiting model for corporate has to be unique to the job.
Some thoughts and ideas:
– Spend a bunch of time deciding what you actually want from your recruiters and from your function as a whole. Those two things must be aligned.
– Before going to a pay for performance model you need to get your arms around your recruiting funnel data. Otherwise, you’re just guessing at what and who to reward.
– In most cases, you can’t make the rewards the same because recruiters have different requisition loads and levels of position. Also, in most cases, certain areas of your organization hire at different times. So, get ready to test and be flexible to do the right thing at the right time.
– It’s okay if a recruiter makes more than you think if the model is producing what you want it to produce. Too often I hear from TA leaders that are like, “Jill is making too much!” But, Jill it killing it and the top recruiter.
– If you can’t get your head around paying for hires, pay for the behaviors and activities that lead to more hires.
– Start with a month or quarter test, make sure during the test no one will lose money. The goal is to try and reach some sort of outcome of better performance, to see if it can work. If they are only concerned they might make less money, you won’t truly see what can work or not work.
– It’s not about quality or quantity. It’s about quality and quantity. I’ve never led a recruiting team in a corporate or agency where good recruiters would ever send a crappy candidate on purpose. That just doesn’t happen, normally. If it did, that recruiter didn’t belong on the team.
I don’t believe in recruiting “team” rewards as pay for performance in most cases. Most teams are not designed and measured for “team” performance, so many on the team are getting the reward for a few doing most of the heavy lifting. You can still have team rewards, but you truly have to think about how you reward your most effective recruiters, short and long-term.
I think the ideal ratio for compensation for corporate recruiters should be 75% base salary and 25% pay for performance, where your best top recruiters can make 125% of their normal total comp if they are killing it. As I mentioned above, you will have recruiters quit because you have “recruiters” on your team that didn’t take the job to recruit, but to administer a recruiting process and collect a nice base salary.
Okay, tell me what I missed in the comments or if you have a model that is working you would like to share with everyone!
