Category Archives: Recruiting

Uncommon Trait of a Great Leader

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For those who don’t know – I had great seats for the MSU vs. Iowa basketball game last week (see pic above of me being an idiot on national TV – it was AWESOME!).  My company, HRU, does a bunch of IT business with MSU and we are big supporters (yep, I now have the infamous “donor” tag at MSU) of MSU athletics – heck, our corporate headquarters is about 2 miles from campus and roughly 1/2 of my staff are Sparty grads.  All those things being put together – I was offered a chance to travel with the MSU basketball team to the Iowa game and got a chance to sit behind the bench for the game.

So, what does this have to do with Leadership Traits?  This is probably where you’ll believe I’ll go on and on about how great MSU Head Coach Tom Izzo (he’s also the guy on the front page of this blog in the pic with me) is – because he is – but you’re wrong.  The leader I want to talk about is one of the team captains from MSU, Russel Byrd (only a sophomore).  Here’s a kid who barely plays.  Was a highly recruited kid out of high school, but still hasn’t found his shot at the college level.  I think most of Spartan Nation was stunned when he was named one of the Captains for the 2012-12013 team.  How does a kid who rarely plays, become Captain of the team?

The uncommon trait of a leader – not being the most skilled.

Normally, in most organizations, the people who ascend to leadership positions, tend to be the most skilled, or pretty close to the most skilled.  It is very rare that a person is selected who isn’t the most skilled.  Why?  Traditional thinking says how can you lead people who are better than you.  The reality is, and we know this in HR, having high skill in a function and having the ability to lead in that same function – really have zero correlation.   No doubt, many great leaders are also highly skilled, but not always.

Back to my Spartys!  What I came away with from my trip with MSU Basketball was that Russell Byrd is a natural leader.  I called him the mayor, the entire trip – I might be his biggest fan now! He never missed an opportunity to engage with those traveling with him – his teammates, his coaches, the team managers, us tag-along donors, the hotel staff, etc.  It might be a handshake, eye contact with a wink and a smile or putting his arm around you and joking around.  He was encouraging, always, he kept a positive attitude even when his own performance, that night, wasn’t what he would have wanted.  While not having a good game, he set his own feelings aside, to pick up those on his team, who were more skilled, who needed some picking up.  He put his team, before himself.

When you think about succession in your organization, I wonder how many of us really look at one’s ability to lead vs. how skilled they are.  I immediately assumed Russell Byrd would not make a good Captain for his team, based on his skill level.  I think too often, those responsible for hiring leaders, do the same thing.  We pass over many of our most influential employees and give the job to the best performer – who often struggle in that role.  I’m not saying Byrd is a great leader because he’s not the most skilled, I’m saying he’s a great leader in spite of not being the most skilled.

Great skill does not equal great leadership.  Great leadership comes from having an ability to connect with people.

 

 

 

 

 

Sales Pitch Tuesday – Why Us?

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It’s really the only question I have to answer when I call on a potential client to try and get their staffing business.

Why should you work with HRU vs. the thousands of other choices you have?

It’s not a cost issue for 99% of the business development calls I make.  If a company has decided we need to engage a staffing firm – whether it’s for direct search or contract staffing – cost has very little to do with their final decision.  Everyone likes to get the ‘best’ price – but in staffing you’re talking about talent.  I’ve never met an HR executive or operational executive that wouldn’t in a heartbeat pay thousands of dollars more for a more talented candidate versus a candidate that fits the requirements but seems like a “B” level player.  Corporate HR/Talent Pros constantly get frustrated with staffing firms for doing this!  They tell us they want “X” candidate for $80K and we send over “X” candidate for $90K.  They say they aren’t interested. So, we send over a $80K candidate.  They interview $80K candidate.  They they call us and say “Can we interview $90K candidate?”  It happens constantly.  Don’t hate the staffing company, hate the game.

It’s not a talent issue, either.  What!?  It’s not.  The reality of staffing is that all companies have the exact same access to talent.  Some companies are just faster at uncovering that talent versus others.  In my 20 years of staffing – I’ve really seen very little difference in the quality of talent good staffing firms offer up to their clients (and remember, I’ve been on both sides of the fence on this – corporate and agency).  Don’t get me wrong – bad staffing firms do very little vetting of candidates and just flow paper to you.  Good staffing firms should be sending you fully vetted candidates.  I like to tell my recruiters – “We are the sure thing!”  When a company wants to interview or hire one of our candidates, the only thing they should hear is: “When would you like them to start?”

So, what is it?  It’s a relationship issue.  When I worked with a staffing firm, I needed to have trust in the people I was working with.  I didn’t care about their brand or their process.  I cared about how much do I trust this company is going to represent us as a company to the talent base that is out there.  Period.  Don’t get wrong – they better deliver great talent – but I’m assuming that is a given – if I decided to work with them!  Trust.  Part of that trust comes with full disclosure as well.  Most staffing companies hate this!  But I came from their world – I knew the game.  So, if you wanted to play with me – I wanted to know everything.  I was going to let you make money – but I wanted to know where it was being made.  That helps me sharpen up my internal process.  If a staffing firm really wanted to be a partner with me – then this wasn’t an issue.  I wanted to see them succeed, just as they wanted to see our organization succeed.  Most corporate HR/Talent Pros don’t have this mindset. They feel staffing firms are ‘out to get them’ and not a partner.  They need to cut those relationships.

It works both ways.  I stopped doing business with a really good paying client in 2012. Why? Because they were a pain to work with and didn’t get that this relationship should work for both parties.  I want to work with people I truly like.  People I would go on vacation with.  Right now – every single one of our clients at HRU – I would go on vacation with.  I would invite them to my house for dinner.  I would look forward to having a drink with after work.  That is why I love coming to work.  It’s not stressful on either side – the way it should be.  I understand their challenges and they understand my challenges and we can have ‘real’ conversations about each other – and provide feedback.

That is pretty rare in this industry.

Want to be apart of this?  Contact me: sackett.tim@hru-tech.com; call 517-908-3156 or tweet me @TimSackett – I look forward to the conversation! Also check out my staff – I’d definitely go on vacation with any of these good looking people!

 

 

 

 

 

HR Can Succeed By Doing Less

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You know Jim Collins – the ‘Good to Great’ guy?  He has another book to, it’s called How The Mighty Fall: And Why Some Companies Never Give In.  This isn’t a book review, or for that matter an endorsement of this book.  I will say, Jim brings up one very interesting concept in this book on why companies, organizations, departments, etc. – fail.  It’s something that we do constantly within HR, and most of us would never view it as something that would actually be hurting our organization.  We do too much!

This over-riding pursuit ‘to do more’ has some drastic consequences.

I will tell my HR brothers and sisters, if you never worked in a large HR/Talent shop – you might understand where I’m going with this.  That’s because small to medium sized HR shops usually are working their tails off just to keep their heads above water.  Large HR/Talent shops are a little like the game Monopoly. You’re either making yourself larger in some way or another, or you’re going through a ‘right-sizing’ so you can start over at making yourself larger again!  Within that mentality comes this ‘more’ cycle.

Most large HR shops don’t try to reduce their work because that goes against this empire building mindset.  They try and come up with more programs, more projects, more ways to measure, more ways to ensure an employee is engaged, more ways to check the checklist to ensure compliance, more ways to well, show that you’re doing more than the other guy/gal.  If you aren’t creating more, you’re aren’t valuable and showing your worth.  No one ever got promoted in HR for eliminating programs – the saying goes!

Here’s the other way to do HR that 90% of HR/Talent Pros don’t do:

1. Eliminate any HR program/project that doesn’t save employees time (not your HR department – but the time of the actual employee).  Remember that new Open Enrollment process you put in to eliminate all of that data entry by your department – but it now takes employees 25 minutes to sign up for benefits vs. 5 minutes – that 20 minutes times the number of employees just cost your company a ton of time – which means money in the real world.

2. Develop a talent management process that works for your hiring managers, not one that makes your feel good about yourself.  That 5 page annual review sure looks great – but it’s a pain in the ass of your hiring managers, and the reality is the employees aren’t getting in more feedback.  Stop that.

3. Stop designing processes around gaining 100% compliance and start designing processes so simple you’ll have 99% compliance (which is more than you should hope for).

Doing less HR is actually harder than doing more HR!  It seems like that should be the opposite, but it’s not.  Doing less means you have to really think strategically about what your function should be delivering and what it shouldn’t.  It means you move some things out of your department, that never should have been there in the first place, but “we’re in HR and we’re suppose to do whatever we can to help.”  No, you shouldn’t.  You’re in HR – you should deliver great HR that is simple and easy to understand.  For most HR/Talent Pros that I know – this concept of doing less goes against every bone in their body.  Great HR isn’t about doing more – it’s about doing the least amount possible to deliver the services that are needed for your organization to have great people.  That is really hard to do without adding more for people to do!

 

 

 

Sales Pitch Tuesday – The Giving Tree

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Three years ago I got involved in social media by blogging for Fistful of Talent.  I love writing and I love Recruiting and HR – so this was a good ‘outlet’ for me and totally got me engaged in my career like I never thought I would be.  I was writing 3 – 4 posts per month “and the tree was happy.”  But for those who have engaged in social media and social recruiting, 3 – 4 posts per month isn’t sustainable.  Those posts turned into me following other HR/Talent bloggers and reading their stuff.  That turned into conversations on Facebook and Twitter.  Soon, without much of a thought, I was engaging with a whole new community.  I had friends and peers from all over the world I was having conversations with about HR and Talent issues we were experiencing in our daily lives.  All of this turned into people asking me to come share my opinions and knowledge live – to speak, to run workshops, webinars, etc.

In my little brain – I told myself – all of this ‘stuff’ is good for my business – my brand.  The more of this I do – the more people will become aware of my company.  My ‘real’ job.  The job that actually pays me enough to pay my bills.  This great community will see me as knowledgeable, as passionate, as someone they would want to partner with and work with.  All of this is good for my company.  And the boy would be happy.

3 years.

I did something really stupid the other day and my friend, Laurie Ruettimann called me out on it – which is why she’s my friend.  I sent out a tweet.  She called it “the laziest sales pitch ever” and it was (plus it had a typo – which was like the cherry on top of the laziness!).  The tweet said: “Tweeps – looking to expand out our client base in 2013. Hit me up if you need some help finding great IT/Engineering Talent.” When I sent it – I told myself not to.  I was actually sitting at my desk and thinking – “Tim – you would make fun of someone who did this – you’re better than this” – then that little guy on my other shoulder said “Tim – you’re an idiot – you’ve put 3 years of time into this without ever asking this community for business! You just give – time to take.”  So, l pushed the Tweet button.

I deleted that Tweet – thank you Laurie.

So, I have one question I would like to ask of any of you who read this – Do you know what my company is and/or what we do?  I know a lot of you know who “I” am – which is great if I was really in need of building myself up – but that doesn’t put shoes on my 3 sons.  Do you know what I do on a daily basis? In my work-life?  You probably don’t.

Most people probably believe, if they actually have an idea about what I do, that I run a staffing company.  Some might actually know that we specialize in technical.  But few actually know that 90% of what we do isn’t what you think.  My company does contract Engineering and IT – not straight search (that’s the other 10%).  I don’t see myself as competition to your Talent Acquisition group, usually, because we are looking to place highly technical folks that you don’t need permanently – you might only need them for 3 months, 6 months, a year – who knows, depends on the project.  Many times our clients end up hiring our contractors direct. It doesn’t start out that way.  The client thinks – hey, I only need this person to help us implement, then we can handle it on our own – then life happens and they go, you know what, we need this person on for good.  Win-Win for everyone.

Please check out what I really do.  I’m proud of it.  I think we do it better than anyone else.  I’m so transparent in social media that if we weren’t good – I’d be called out on a daily basis.

3 years of deposits – www.HRU-Tech.com (check out the “our staff” section, everyone loves that!) –  or contact me directly – I’d love to come and talk about your staffing needs – sackett.tim@hru-tech.com / 517-908-3156.

And the tree was happy.

Want something better than InMail?

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Facebook announced it’s testing a new product last week.  What’s the product?  A version of paid messages within Facebook.  Think LinkedIn’s Inmail, but for Facebook and an additional 800,000,000 users and potential candidates! From the article:

“Today we’re starting a small experiment to test the usefulness of economic signals to determine relevance. This test will give a small number of people the option to pay to have a message routed to the Inbox rather than the Other folder of a recipient that they are not connected with.

Several commentators and researchers have noted that imposing a financial cost on the sender may be the most effective way to discourage unwanted messages and facilitate delivery of messages that are relevant and useful.

This test is designed to address situations where neither social nor algorithmic signals are sufficient. For example, if you want to send a message to someone you heard speak at an event but are not friends with, or if you want to message someone about a job opportunity, you can use this feature to reach their Inbox. For the receiver, this test allows them to hear from people who have an important message to send them.”

Oh, please, if there is a Facebook God, please pick me for this test!!!  You see, I’m a believer.  I fully believe Facebook is going to change the way we recruit talent in the future.  The way we network to find referrals, etc.  I’m also a believer that companies will pay Billion$ of dollars to have this ability.  I also, fully, believe that the majority of recruiting professionals out there will understand how to use this function appropriately.  Plus, having a financial consequence will ensure this won’t become spam central.

Let me give you an example.  I have a client right now looking for 2 Human Factors Engineers.  They are hard to find because individuals in these roles have fully employed and get multiple contacts per week with offers.  We’ve had success finding good ones – but eventually even the best networks start to dry up.  Facebook has an additional 500+, self identified HF engineers that I can find through friend search – but that I’m not connected to.  I can try to connect through a request, but they’ll say they don’t me – and Facebook will slap my hands and warn they are going to kick me off the network.  If Facebook said to me – Hey, Tim, for $1 per message, we’ll allow you to send a message to all 500 HF Engineers – I would sign that check right now – twice!   And these are just the ‘self-identified’ folks – Facebook has thousands more who have identified but not made it public.  I’ll pay for those as well! So will most companies.

Think this isn’t going to happen, eventually?  You’re wrong – this is a multi-billion dollar opportunity – every year.  You know what else?  It won’t have any impact to your Facebook experience.  While it sounds like a Spam nightmare – it won’t be.  First, these are directed ads for specific people, not everyone. So, Charlie working the friers at McDonald’s, calm down, I’m not sending you any messages.  Second, they cost money – so companies aren’t going to be sending millions of these messages – they can’t afford. This isn’t a shotgun strategy, this is a sniper rifle strategy.

Facebook – call me. We need to talk!

How Not To Hire A D1 Football Coach in the BigTen

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For those College Football fans, last week was a bit crazy on the college football coaching carousel!  The one that really caught my eye was Bret Bielema, the University of Wisconsin coach, leaving to go to the University of Arkansas in the SEC.  First off, I hate the University of Wisconsin. Second off, I hate Bret Bielema.  Being a Michigan State University fan/donor – the University of Wisconsin has been a rather large pain in our backside the past few years!  So, it’s with respect (and hatred) that I bid the rather large jackass, Bret Bielema, adieu.   Here’s what is really great about this whole thing, though – the head coaching job at the University of Wisconsin (like most state colleges) is a state job – and with most ‘government’ jobs they have processes they need to follow when hiring. No. Matter. What.

Here’s the posting – from the University of Wisconsin career site! It’s awesomely bad HR!

Want the job?  Here’s what UW is looking for in their next coach:

– Bachelor’s degree required (I mean this isn’t Arkansas!)

– Minimum of 5 years of successful collegiate football coaching experience, preferred. (way to shoot for the moon!)

– Other qualifications include the ability to work cooperatively with diverse groups and administrators, faculty, staff and students. The successful applicant must be able develop and implement innovative approaches and solutions; work well independently and in teams; and be flexible in accepting new responsibilities. (Um, what!?)

– Anticipated start date: December 24, 2012 (Merry F’ing Christmas we need recruits – start calling!)

I really would love to sit down with the President and Athletic Director of the University of Wisconsin and find out if they ‘truly’ feel this is the job requirements for their Head Football Coach at UW! And, oh brother this is a BIG and, is this current ‘recruiting’ process meeting their needs!!!  I can only assume I already know this answer.

Want to apply:

Unless another application procedure has been specified above, please send resume and cover letter referring to Position Vacancy Listing #75429 to:

Holly Weber
1440 Monroe St.
Kellner Hall
Madison, WI

I’m sure Holly is a solid Talent Acquisition Pro and will do a proper job screening you before you meet with the Athletic Director.

Is it just me, or do you feel they might end up using a head hunting firm on this hire?!  To me, this is the exact reason HR/Recruiting get zero respect.  This job should not be posted on the career site next to the janitor opening. This hire will have millions of dollar impact to the funding of this school – stop treating it like it’s like every other hire – it’s not – and it makes you look like you have no idea what you’re doing.

Everything You Ever Needed To Know About Compensation

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Let me start by saying I don’t really understand Comp Pros.  Seems like a lot of spreadsheets, market analysis, internal analysis, 48-72 hours of waiting, followed by me getting approval to offer the candidate less than what they originally asked for, followed by the hiring manager sending a nasty email to their line executive, followed by me getting approval from said Comp Pro to offer what I wanted to originally, followed by the hiring manager believing I have no idea what I’m doing. But what do I know…

If I ever get the chance to run a Compensation Department (please G*d never let this happen) I would concentrate on only one thing: which positions drive the largest percentage of revenue in my organization.  Now that is much harder than you think.  First, I’m sure you’re organization is like mine in that ‘every’ position is important…wait, I have to stop laughing…and as such, we really need to look at the whole.  No, I wouldn’t do that in my made up Compensation Department – I only want to look at the important people.  It’s not that I’m getting rid of anyone – Comp doesn’t do that – we leave that to the Generalist!  My focus is finding out who is the most important in driving revenue (thus profit) in our organization.  I need to know this because I need to ensure we are leading the market in compensation plans for those specific skills.  Why? Because I want to go out and give my HR/Talent team all the ammunition they need to hunt down the best possible revenue driving team for my organization that has ever been assembled by man, beast or robot.

Bam! – that is all you need to know about Compensation.

“Oh, but Tim you’re so naive! We need to pay all of our people fairly to drive the best productivity. We need to ensure we don’t have internal pay equity issues. We have to have proper bonus plan designs and executive pay structures. We need…” Shut it!  You know what happens when you lead any industry in revenue?  All that crap tends to take care of itself.  You know what happens when you’re chasing revenue in an industry?  All that crap becomes issues.

Ok, so I make one giant assumption – I assume if my organization can drive revenue, that we can also drive profit – that isn’t always the case – but it will be in my organization because I know how to performance manage the morons out who don’t get these two need to be on parallel paths.  My compensation philosophy is simple – over pay the people who drive my revenue, and make sure I always have the best revenue driving talent in the game, at all times.  Pay everyone else at the market rate – I don’t need racehorses in those roles, I need plow-horses.  Most organizations don’t have the guts to do this and it’s why most organizations are always struggling around budget time to determine where to cut.  I don’t want to cut, I want to grow, I want to take over the world – or, well, at least lead my industry.

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!

 

 

The Law of Diminishing Title Return

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“I don’t care what you call me – my title is meaningless!”

Have you heard this?  If you’re in HR long enough – you’ll hear this a number of times over your career.  You know who says this?  People making a lot of money, people who’ve been out of work and are just happy to have a job, or people who’ve been around so long they actually really don’t care anymore!

Titles are important to people – although that is not the politically correct thing to say – so hardly ever hear the truth when it comes to titles.  Don’t think titles are important in your organization – try changing some – try going, let’s say, backwards in title!  You’ll see how important it is.  The issue I see in many organizations is the concept of Title Creep.  When for whatever reason, usually the business not doing well so you don’t have money to give out, the organization starts giving out titles over raises (“Hey, Janie, doesn’t look like we have any budget money to give you your 3% raise this year, but gosh golly you sure our important to us, so we want to “promote” you to Manager!).  And you know what? That crap works for a little while! Because people love titles!

Just look at banks – they’re really funny about titles!  Everyone at a bank – and I mean everyone – is either a Vice President or a President!  Banks really have screwed up the title thing worse than any other industry.  You will see banks now that the person’s title will be Vice President – Manager of Recruiting, or Sr. Vice President – Director of Human Resources – and I wonder to myself – “So, what is it – VP or Director!? What are you?”  This is where titles go very wrong and stop having value to the individual.

The main problem with title creep is when it’s used and people feel because they have, or have had, a certain title that means they should get that title in another organization.  I interviewed a sharp person a while back who had graduated from college in HR and over the course of about 6 years went from HR Generalist, to HR Manager, to HR Director, to VP of HR in the same organization. Impressive, right?  But wait, there’s more to the story!  She lost her position do to an organizational change (that’s what we call getting fired today so the GenY’s and millennials still feel it’s not their fault) and was struggling finding another “executive” role in HR.  I asked her a couple of questions:

1. From your beginning as an HR Generalist to your final role as VP of HR, how many direct reports did you pick up?

              A: 1

2. From your HR Gen role to VP role – what responsibilities did you pick up?

             A: Well…I still do everything, but I also am now more strategic.

Oh, boy.  So, I got to share with her some advice. Stop looking for an “executive” role, find a solid HR Gen or HR Manager role – you my friend are no VP of HR!   Title Creep really hurt her.

In HR we have a major role in this concept of Diminishing Returns in regards to Titles, and that role should be to stop handing out titles like it’s candy from the bowl on the receptionist’s desk at the front door.  We should protect titles and not allow them to diluted, because most people do like them, and they can be a valuable tool in your compensation tool box, but only if you don’t use them very often.

BTW – best title ever is from K Swiss Kenny Powers commercials!