Category Archives: Performance

When is Gutting Payroll the Right Thing?

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HR-Sports Post Alert!

Many of you probably cared less about the recent trade between Major League Baseball’s Miami Marlins and Toronto Blue Jays (check out the details here) – suffice to say the Marlins were able to decrease their annual payroll from $188M to around $35M in one giant trade!  Classic rebuilding type of move, right?  People/fans are saying the Marlins shouldn’t do this to their fans and they gave up on some great talent.  Let’s take a look back at recent Florida/Miami Marlins history:

1997 – Won the World Series (payroll at $47.8M)

By 1999 – they gutted their roster of high priced talent for younger up and coming talent (payroll at $15.2M)

2003 – Won the World Series (Payroll at $76.9M)

By 2006 – they gutted their roster again (payroll at $15M)

The difference the Marlins and large market teams like the Yankees and Red Sox is that the Marlins can’t make giant financial talent mistakes without something major happening in the next year or two.  They took some gambles over the past couple of years trying to assemble a world series capable team (they’ve done this before – twice!) and it didn’t work out.  So, change needed to happen – rebuilding needed to begin.  Any fan of the Marlins could have predicted this.

So – what does this have to do with HR – or my company?

There is some huge wisdom in how the Marlins manage their talent finances that we can all learn from.  Let’s make no mistake about this – this is not Moneyball, in fact he might be the opposite of what Billy Beane had envisioned.  But, many would argue that the Marlins version, had worked out better, certainly from a results standpoint.  My question is – could this type of talent financing work in a corporate setting, or in your company?

Think about it that for a minute.

How could you make this happen?  I tend to think about it in terms of your high priced – A talent – not necessarily your executives.  What if your company was looking to drive and increase in market share in your industry.  Your main competitor currently had 50% of the market, while you only had 25%, with the other 25% spread amongst competitors 3-10.  Your goal was to grow your market share to 35% in 3 years – a large task for most companies in most industries.  Conventional corporate wisdom would work this way – Step 1 – we hire away one of competitor 1’s executives to tell how they did it; Step 2 – The new executive brings over as many people as he can get, usually starting with a solid player from competitor 1’s marketing department; Step 3 – you re-brand and spend a crap ton of money; Step 4 – 3 years later you’re at 28% market share with less margins. Ouch.

If the Marlins management ran your company here is what they would do:

Step 1 – Go hire the top sales person from your main competitors – all of your competitors and pay them double what they are making.

Step 2 – Go directly after every single account the competitors have with the inside knowledge you just gained in your sales staff.

Step 3 – Build their market share to 40% within 24 months

Step 4 – Systematically let go of all of their high priced sales people – losing about 5% of their market share.

Step 5 – At 3 year mark be at their 35% market share with roughly the same payroll as they had 3 years prior.

I mean it could happen that way!

We/HR/Management tend to believe we have to keep our people on forever – even after they stop being rock stars, but are still getting paid like rock stars.  The Marlins have said, ‘look this is a dual benefit play – we get our championships and the players gets a giant check, then we both move on’.  It’s not “traditional” so everyone tends to think its wrong.  I don’t know if it’s right, but I’m sure their are some Chicago Cub fans that would take 2 World Series championships in the last 15 years!

Give Your Employees Permission

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It’s pretty widely accepted that referral hires are the best hires that most companies make.  Pretty easy math equation on why :

Good Employee + wanting to stay a good employee + employee’s reputation = usually good people they recommend to HR/Recruiting to go after and hire

I’m like Einstein when it comes to HR math!

But, there is one piece to the equation that most all companies struggle with.  We don’t get enough of these referrals!

So, we look at our referral process. Then we go out and look at our collateral material associated with our referral program. Then we look at using technology to automate our referral program. Then we look at the numbers again – and again – we still don’t have enough of these hires…

There is still one thing we keep forgetting to do – it’s simple – which is probably why we “assume” we don’t need to do it.  We/You need to give your employees permission to do share this with their personal and professional networks – each and every time you want a referral for a certain position.

You know what we do really well in HR?  Roll-outs! We do!  We can roll-out the shit of just about any program you can think of.  We love roll-outs. We live for roll-outs! You know what we do really bad in HR?  Continuing programs after we roll them out!  The truth sucks because it’s true.

How can you get more referrals?

1.  Have a program (don’t laugh, too many still don’t)

2. When you want a referral – ask for it – each and every time.  (We tend to roll out the referral program and assume each time we post a position our employees will just naturally share it with potential referrals – they don’t)

3.  When asking for a referral specifically “Give Permission” to your employees to share this with their Facebook friends, their LinkedIn Professional network and their Tweeps. (Specifically)

BEST PRACTICE ALERT: Create email groups by department, when you get an opening for that department send an email to the group with your standard referral “permission” language – plus one other item – an easy cut and paste hyperlink that they can post or send to their networks with specific instructions on where to paste/send it to.

Giving someone “permission” to do something strikes a trigger in their mind to actually do it – it has something to do with psychology or something, I don’t know I’m an HR pro, but suffice to say it works!  Think about it, like you were a 5 year old.  Your parents tell you, you can’t ride your Green Machine in the street.  Then, one day, Mom is out getting her nails done and your Dad sees you doing circles in the driveway on that Green Machine and he goes “Hey, why don’t you take that into the street?!”  What do you do?  You immediately take that bad boy for a ride in the street! Dad “gave you permission” and you ran with it!

Referrals might be a “little” different but I’ve actually had conversation with employees who’ve said “Oh! It’s OK if I send this to my friends and family?”  Like our posting was sort of corporate secret or something!  We shouldn’t assume.  You’ll be surprised.

Now – go give your employees permission to get you some referrals!

 

 

Being on a Mission

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When I hear someone say “I’m on a Mission” or “We’re on a Mission” it always reminds me of the Blues Brothers movie:

It seems like part of our new way to lead is to let everyone know that you’re on a mission.  It makes complete sense, set a goal, make it public, now you’ve got some investment into making sure you truly do go after that mission.  I think there is one more piece to our Mission that we have to make everyone aware of, but few actually do.  When you have a mission, there are going to be some bad days.  Few leaders ever really want to acknowledge this and then when those bad days happen – people panic.  When the bad days happen, people begin to believe that the mission won’t be accomplished.

As leaders we often fail in our missions because we fail to let our troops know that this mission won’t be a walk through the park.  We’ll probably get dirty, there is a good chance not all of us will make it and there will be some days when it feels like we are taking a step backwards.  And, that’s OK.  Our job as a leader is to prepare those we lead for all we might encounter. Part of that is motivation – but it can’t always be motivation – sometimes it’s the slap of reality that our folks will look back at and most appreciate.

The greatness of being on a mission is the end – it’s the accomplishment.

Management is Judged by its Second Act

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I have a new HR Crush and his name is Ben Brooks – check him out, the dude is a crazy smart HR dude from NYC (VP of Human Capital Performance at Marsh).  I saw him present at HR Tech about his company and the cool stuff they’ve done, are doing, etc., and he used this quote (he might not be the original, but after an extensive Google search I couldn’t find anyone better to attribute it to – Ben says his CEO at Marsh said something similar and he adapted it):

“Management is judged by its second act.”

Simple enough, but very powerful.  Think about that for a moment.  It would seem most leadership/management that I run into seem to want me to judge them based on their first act, right?  It makes sense, any time a new leadership person/team comes into an organization there is always some low hanging fruit that needs to be taken care of.  We always talk about how hard it is coming in as a new leader, but there are also some easy pieces to being a new leader.

New leaders have a small window of time where they get to point out all the obvious crap that’s wrong, like they’re some super genius consultant, and everyone thinks they’re brilliant.  They then go around fixing that stuff (the low hanging fruit) and then they live off of that for as long as possible.  Leadership lore is filled with “turn-around” specialist.  Leaders who come in, turn around a company, then take off to do it again, and again, for other companies.  They sell themselves as specialist, when in reality – they are just coming in and doing what everyone knows what needs to be done, they just don’t have the guts/influence/backing to do it.

The hard part of leadership is to perform your “second act”.  What do you do once all the easy stuff, the obviously broken stuff, is taken care of?  Yeah, that is hard!

Want to help out your C-suite?  Go to them with this concept and start helping them design their second act.  You might first have to help them define their first act! Let’s face it, leadership is a bit like politics, the more you market what you’ve already done, it helps buy you time to go and do some more stuff – but you still have to let people know what you’ve done!   Once you get act two drafted, you begin the marketing process for that as well.  It goes a little like: “Hey, we’ve done all this great work in Act 1, so now we are getting ready for our next stage and Act 2” – but with specifics, don’t really say Act 1 and Act 2 or you’ll sound like an idiot!

Act 2 won’t be easy – remember you’ve taken care of the easy crap.  Act 2 is going to be defining and it’s really where you get to understand, as a leader, am I any good at this leadership thing. At building a vision. At delivering something that moves an organization forward.  Most leaders never get to Act 2 because Act 1 is so gratifying they can’t pull themselves out of the theater, they just keep running the same show over and over, and many companies keep buying seats.

Have you begun your Second Act?

9 Wishes for New HR & Talent Professionals

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My favorite part of the fall conference season is the fact that I get to meet a ton of HR and Talent Pros and connect.  Of those, the ones I have the most fun talking to is the newbies!   They are still in that point in their career where HR is fun and exciting and they get jazzed up talking about the stuff we (older, I mean experienced HR Pros) no longer find as fascinating.   I usually find myself answering questions – you know the type – “how would you handle…?” or “what would you do…?”, etc.  Which gives me an opportunity to tell them here’s how I screwed it up when I first started, and here’s how I handle it now – which are usually very different.  So, as I reflect on this season I’ve come away with a few wishes for my fellow HR and Recruiting Pros who are just joining us on this journey.

I wish new…

 …HR pros would unlock the doors to their departments – wait – change that – actually take off the doors all together.

 …Corporate recruiters would make more outgoing calls then they get incoming calls.

 …HR pros would spend more than 50% of their time out of their office/cube walking around talking to employees and hiring managers.

 …Recruiters would never feel like it’s their responsibility to staff their companies – it’s not – it’s your leaders of your departments – you’re just the tool they use to accomplish it – but they’ve got to own it – ultimately they make the final decision, not you, which means it’s there responsibility.

 …HR pros never learn “soft” HR math.

 …Recruiters learn how to recruit before they learn how to build recruitment processes.

 …HR pros spend their first month (or more) in position actually working in operations, marketing and finance – it will make you a better HR pro!

 …Recruiters would build relationships with their main competition’s recruiters – this will make you better as well – and you won’t be giving away the corporate secrets!

 …HR pros would build more influence in their organizations than more process – one is easier to do – which is why you don’t do the other.

I guess I wish all of this stuff, because it’s stuff that I had to learn over time – and if I could have one wish for our newbie HR and Talent peers it would be they could have all of this knowledge up front as they come in the door.  Because I can’t have that wish – I’ll throw out a challenge to my HR brothers and sisters – take a new HR pro under your wing – it doesn’t have to be in your organization – just find one and do it.  Here’s what you’ll find – they will help you more than you’ll probably help them – helping a newbie will energize yourself, help you slow down on your own decision making and reflect on what you’re doing and its importance – and because of your experience it will allow you to go out and make some adjustments to your own shop that will have great impact to your business!

A Conversation: with your Least Engaged Employee

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You: “Hey, Lee (Least Engaged Employee) – how are you doing?”

Lee: “You know, working hard, hanging in there, one day at a time” (winky face)

You: “We need to talk.” (this is what all HR Pros say, it’s #1 in the “What to say when you’re in HR” handbook)

Lee: “About what?” Now, somewhat nervous because HR never talks about positive stuff.

You: “You know, it just doesn’t seem like you’re real excited about your job, or the company, I’m not sure.” Classic HR beating around the bush – also in the handbook

Lee: “No, really (deadpanned) I love it here.” Voice trailing off as he looks for a way out of this nightmare

You: “Well, that’s a relief because we love having you here.” Being able to effectively lie to yourself and employees – Handbook page 27.

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It’s funny because it’s to close to the truth for too many HR Pros and Hiring Managers.  We want engagement, but we have no idea how to talk to a person who isn’t engaged.  Let’s try one more script between you and Lee.

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You: “Lee, I need to talk to you about something that I’m very concerned about.” Set the tone immediately – it is serious – Lee’s position hangs in the balance.

Lee: “Sure. What is it?” No one ever turns down talking with HR – what choice do they really have…

You: “I’ve noticed that your lack of engagement with your job, with the organization is starting down a path that isn’t going to end well.”

Lee: “What do you mean!? I love my job, and the company.” This is what low engagement employees say, because they aren’t showing it.

You: “No you don’t.  If you did, I and your manager would be seeing this out of you: example, example, example.”

You: “So, we have 3 choices: 1. Continued lying to each other until we fire you; 2. Continue lying to each other until you leave on your own; or 3. We fix it.”

Lee: “I’m not lying – let’s fix it.” Lee just told you 2 lies in that small statement – Lee is lying and Lee probably won’t fix it without major help

You: “So, tell me why are you no longer engaged?”  Then shut up, wait, wait an uncomfortably long amount of time for Lee to speak.

Lee: “Lame reason I think you want to hear to get you off my back, and back to my desk so I can update my resume on Monster.”

You: “No, really, why?” More uncomfortable silence

Lee: “Something closer to the truth you both already knew.”

You: “Now, let’s come up with how we can turn this ship around.”

You and Lee: “Plans, promises, measures, next meetings followup dates, morning hugs, etc.”

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We tend to treat our least engaged employees like a virus.  Stay away, wash our hands of it and hope it goes away.  Rarely do we ever really go out and “engage” our least engaged employees.  Seems like too much work, too much time, too much of headache.  It is.  It is also the only way to move in the direction you want to go, the fastest.  That direction might be to turn the employee around, or it might be to kick them off your buss – either way – the conversation must be had appropriately to move in that direction.

Have you talked to Lee lately?

HR’s Largest Affliction

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You know what I really like about Sales departments in most organizations?  They try, or do, almost anything, once, to try and increase sales for your organization.  They are willing to take chances, to tinker, to experiment and the organization is fine with it – hell, most organizations expect sales to do stupid stuff every now and again.  Marketing is the same way – if there is a dumb idea out there – someone in Marketing is bound to come up with it – and give it try.  Why not?!  It might actually work.  Operations? Same thing.  When I was at Applebee’s, about once a year some operations person would say “Hey, we should do Breakfast!” You mean America’s beer and burger place, doing eggs and bacon? Sure, why not.  Then after one week of trying a “Sunday Brunch” they’d go – “That’s dumb – let’s not do that”.   But they tried it.

HR, not so much.

Somehow HR became our organizations’ Mom.  I’m not sure how your Mom is but most Mom’s do whatever they can to put their kids out of risk.  I called this “Bubble Boy” when my boys were little and my wife would do everything possible to keep them out of harms way.  I’m sure, if would have been possible, she would have found a way to put a bubble around our boys to keep them safe.  Not a bad – necessarily – right?  Ultimately, we want to keep our kids safe – out of harms way.  That is the role of Mom.

HR is not Mom.

That really is our (HR’s) major affliction.  We are trying to be “Mom”, when no one in our organization, including the C-suite, is asking us to be “Mom”.  Most HR shops run like they are trying to eliminate 100% of the organizations risk.  The problem is – it’s not HR’s role to eliminate risk from the organization.  HR can advise of risk – “Hey, you might not want to do that, could get us into some hot water, but if you do, here’s how I can help” – but it shouldn’t be spending large amounts of time figuring out how to eliminate risk.  That’s why you have legal council – every company I know – even ones with 25 employees – have legal council.  Maybe not onsite – but they can make a call.

Think about it for a minute.  No other part of your organization spends time trying to eliminate risk.  They spend time trying to figure out what risks they should be taking to move the organization forward.  Some of those risks won’t work. Some of those risks will work so well it will transform the organization.  We need them to take risks.  Taking risks, calculated, is what drives innovation, drives increased revenues and drives long term health of our organizations.  Risk avoidance is an ill HR can cure.

HR needs to take risks.  Our organizations require this.

You Want a Jerry Jones Type Owner

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I’m not a fan of the Dallas Cowboys but I have to say from an HR perspective many of us our missing the boat on Jerry Jones.  Here’s the deal – you’ve got a guy who played college football, made a crap ton of money and decided he was going to buy the Dallas Cowboys.  It’s his team, he pays the bills, he is an owner unlike many NFL owners in that he actually wants to be involved and has background at a high level into the sport.

Let’s back up for a minute.  In business, most of our owners were at one point entrepreneurs/startup types that had an idea and ran with it.  They worked their butts off and became successful and while they might not be super involved in the day-to-day currently – they clearly have the ability to jump back into the mix if they had to.  In many circumstances owners are still the lifeblood of their companies – they drive revenue, they motivate, they live and die their brand.  Not bad traits to have from an owner (or anyone else working for you).

So, why do we hate on Jerry Jones, the owner of the Dallas Cowboys?  Here are the reasons

1. We hate him because he’s wants to be involved with the business he runs?!

2. We hate him because we feel there are more qualified people to run his billion dollar investment?!

3. We hate him because he wants to be involved with every staffing decision that is made in his business?!

You know what happens when an owner steps down and let’s someone else take over operations in a majority of cases?  You get less passion for the business, you get increased entitlement, you get a decrease in knowledge and a decrease in motivation.   It’s shown time after time when original owner steps aside (it’s something I think about often in my new role – don’t let this happen!).  Jerry Jones isn’t bad for Dallas or the NFL – he’s great for it – you won’t find a person more passionate for “his” business to succeed, for “his” employees to do well, for “his” investment to pay off even greater in the future.  You know what you get when you take away “his” or “hers” –you get “yours” and “theirs” – that isn’t better – it’s worse!

Strategic Napping

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You guys know I’m always on the outlook for things that will make my recruiters more productive – the constant beatings have proven only to be successful in the short-term!  So, when I read the NY Times article Rethinking Sleeping I was a bit, but hopeful, that maybe science has come up with something that won’t cost me more money.  I’ve always been envious of folks that only need 4-6 hours of sleep per night and seem fresh as a daisy – I’m also skeptical since I think most people lie about how much sleep they get and not on the high side.  Most people I run into wear their lack of sleep like a badge of honor – “I only sleep 4 hours per night!” – so you go to bed when? Midnight? And get up at 4am?  Really?!? Reeaallly!!!??? Come on – I’m calling bullshit.  It’s just like the people who tell you they work 80 hours per week – No you don’t – you can’t count your 1 hour each way commute time and checking email on your iPhone as you sit on the toilet before you go to bed – that doesn’t count!

I’m a 7 hour per night kind of sleeper – I go to bed at 11:30 pm – alarm goes off at 6:30am – I’m a no snooze alarm person, wants it goes off, I’m up.  Now on the weekends that changes up a bit – its usually anywhere from midnight to 2am watching movie in bed time until however long I can force myself to stay in bed in the morning which is usually 9am at the latest – again it’s probably a rough 7-9, maybe 9 hours on Saturday and Sunday.  Now, I could say I only sleep 4 hours – because let’s face it – I’m 40ish – around 2-4am I’m up, peeing – thank you old age.  My grandmother is a true 4 hour a sleep person – she is 83 and I think it pisses her off that she actually has to go to bed – I think she would prefer to just keep drinking coffee and smoking cigarettes at the kitchen table all night – but alas, she forces herself to go to bed.  I’m completely envious of her telling me stories of how she is up at 4am, and has to force herself to stay in bed that long!  I keep waiting for those genetics to kick in – can you imagine how much you could get done by only sleeping 4 hours!

‘They’ tell us we should get 8 hours of sleep a night.  We assume that means 8 hours in a row- but new research is showing us that maybe 8 hours in a row isn’t what is really needed to be most productive.  From the NY Times article:

This, despite the fact that a number of recent studies suggest that any deep sleep — whether in an eight-hour block or a 30-minute nap — primes our brains to function at a higher level, letting us come up with better ideas, find solutions to puzzles more quickly, identify patterns faster and recall information more accurately. In a NASA-financed study, for example, a team of researchers led by David F. Dinges, a professor at the University of Pennsylvania, found that letting subjects nap for as little as 24 minutes improved their cognitive performance…

Gradual acceptance of the notion that sequential sleep hours are not essential for high-level job performance has led to increased workplace tolerance for napping and other alternate daily schedules.  Employees at Google, for instance, are offered the chance to nap at work because the company believes it may increase productivity.

Here is what I know – taking a nap at work in America, in 99% of our organizations, is going to be looked at as a sign something is wrong with you – unfortunately. We haven’t opened enough minds yet to make this acceptable behavior.  Do I think taking a strategic nap during the day has merit – I do – but would your employees be willing to take an extra hour nap and then work until 6pm?  Doubtful, right?  There in lies that balance issue – if you sleep during work hours, work hours get expanded – and you have to be willing to push your concept of family balance out to the extra time you’ll have not sleeping later at night or early in the morning – that is a big jump in perception for our society right now.

I Can Do Crazy Better Than You!

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In HR we run into employees all the time that do “Crazy” pretty dang good!  I’m always interested in how we work around crazy.  Almost never do we just fire crazy and get rid of it – we tend to keep it around, we tend to try and fix crazy. I’m not talking about legitimate mental illness – I’m talking about employees who are perfectly “fine” but act crazy for a number of reasons – attention, they love drama, they love pushing buttons, they love being in the middle of shit – you know – work crazy.   We see it every day in our organizations.

I’ve found something that works really well for me in dealing with crazy.  Do crazy, better than the employee does crazy. Sounds crazy right?!  Here’s how it works.  Crazy employees have power because they act crazy and no one wants to jump into their crazy storm.  So, people just stay silent, try to stay away, change subjects, ignore, etc.  These are all great mechanisms to stay out of the crazy storm.  Unfortunately this just feeds the crazy storm and helps turn it into a crazy hurricane!  You see, crazy employees – here silence – silence to them is agreement – now they’ve got justification for their crazy storm because in their mind no one told them they disagree – so that must mean – they agree!  You can’t reason with crazy.

So, how do you stop crazy?  You do crazy better than they do crazy.  But you do crazy under control – you fight a crazy storm with a crazy calm.  But, let’s be clear – you still need to go crazy.  Let me give you an example:

Crazy Employee:  “My boss is out to get me!  Yesterday he told Jill “great job” and he didn’t tell me great job.  I think he’s sleeping with Jill – you need to investigate.  Also, Jill might be stealing – you didn’t hear that from me, but she just bought a new car and we make the same amount, I think – what does she make? – anyway I can’t afford a new car!”

Me: “You know what?  I want to thank you for giving me this information – I’m pulling in your boss right now and we are going to have this out!  Just sit here while I call him in – we are going to blast him!”

Crazy Employee: “Hey! Wait! Don’t call him in while I’m here – he’ll know it’s me that told you.”

Me: “Yeah – but to fire him I’m going to need you to testify at the trial. Once I fire him for sleeping with Jill, he’ll want to fight it – happens all the time – no big deal – we got him!  You’ll do fine on the witness stand.”

Crazy Employee: “Um, I don’t want to do that – just forget it”

Crazy doesn’t like to go public in front of others – crazy works best one-on-one behind closed doors where there aren’t witnesses.  You can stop crazy very quickly by going public and asking them to be crazy in front of others.  I’ve found that if I can do crazy behind closed doors better than crazy can do crazy – it tends to snap crazy back into semi-reality.  Plus, it’s fun to act crazy sometimes – as long as it’s behind closed doors!