Category Archives: Retention

The Life Cycle of a Hot Job Market

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In any market, even during really bad recessionary economic times, there are certain categories of jobs and skills that remain extremely hard to come by.  In one market it might be a certain kind of engineer, another time and place it might be nurses, or it might even be seemingly something as simple as truck drivers.  Many of us are now facing this market with various kinds of IT professionals (Developers, Analyst, etc.).   Through all of these gaps in inventory of skills something remains very common and predictable — the cycle that takes place.

Here’s what the cycle of a Hot Job market looks like for a certain ‘specialized’ need: (let’s use Bakers for our example, no one really ever would feel we would lack for Bakers, right!?)

1. Companies begin by hiring up to ‘full employment’ with in the market category.  Usually 3% unemployed Bakers would mean ‘full employment’, those last 3% no one really wants there the folks who don’t really want to work, have other problems (like substance abuse, harassers, etc.).

2. Companies begin taking ‘fliers’ at the bottom 3% that are on the market.  “Come guys, Billy is a good Baker and he says he won’t put Crack in the Cupcakes anymore!”

3. Companies begin to feel pain of not enough Bakers. Their overtime is going up, positions are taking longer to fill, product quality goes down a bit, etc.

4. Companies begin brainstorming on how to get more Bakers.  They add a Baker apprenticeship (we can build our own Bakers!), they add retention bonuses to ensure they keep their Bakers (Free cookies!) and they start coddling to all the Bakers needs (you need a new baking hat!? You got it!).

5. Bakers start to get calls about jobs.  Those jobs are paying much more than they ever imagined they would make, plus you get free cookies and cakes!

6. People start to hear stories about Bakers making six figures! Wait, I want some of that baking cake money!  I would love to bake cakes for a living!  How do I get me some of that baking cake money!?

7. Bakers start demanding things they never thought they could.  4am is too early for me to make the cupcakes, I only want to bake cupcakes after 6am. I don’t bake cupcakes on Sunday. I only work on wedding cakes, not birthday cakes, I’m a professional!

8.  More and more people start coming into the market to become bakers.  It’s the ‘hot’ field, the best and brightest want to be bakers. There are TV shows about Bakers. Bakers are cool.  Baking is ‘the’ profession to get into.  USA Today has Baking as the growth profession to be in the next 10 years. (USA Today announcing anything as ‘hot’ is the key that it’s probably on the backside of being hot)

9. Good and bad Bakers, alike, start to become arrogant.  This is the tipping point of a Hot Job Market — Arrogance.

10. Companies don’t like to be held ‘hostage’ by any certain skill set, so they ensure the market will get flooded with candidates.  The pain of not having enough talent has gotten bad enough to ensure companies will fund whatever it takes to get them out of this pain.

The Wall Street Journal announced recently that Silicon Valley has an arrogance problem.  Those IT professionals that all of us need and can’t do with out, are beginning to feel their market power.  Some of you might say, well this has been going on for 10 years, and you would be correct.  It has been a hot job market going on a decade and continues to be hot.  The arrogance isn’t even new for many.  But it is now becoming common place.

I have quick story.  In 2001 automotive designers in Detroit could have a different job every day if they wanted and they named the price they wanted to make. The market was on fire. Thousands of people start to flood the market.  Designing wasn’t easy, but you could get educated and start at the bottom and learn the skills it took to become a good designer.  It was ‘system’ based, meaning you had to learn certain computer systems to learn how to design, plus some other skills.  Today, designers are still making less than what they were 15 years ago.

Basic economics will tell us these ‘hot’ markets will eventually work themselves out.  The cycle is always the same.  The ending is always the same.  In the history of civilization there has never been a ‘hot’ job category that hasn’t, eventually, been figured out.

Yahoo’s Mayer Fails At Performance Management, Again

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It hit the news wire last week Yahoo’s embattled CEO, Marissa Mayer, is set to fire 500 lower performing employees.  Sounds all well and good, right?!  It’s about time!  The HR blogging community as a whole kills managers and executives for not moving fast enough on getting rid of under performing employees.  Mayer is finally doing it! Well, not so fast…

From Business Insider:

“The reviews were part of Mayer’s plans to trim the Yahoo workforce “very surgically, very carefully,” according to a source close to the company.

Now, Swisher reports, Mayer is planning to let go any employees who were rated “misses” or “occasionally misses” at least twice during the past five quarters.

Swisher says as many as 500 employees could eventually be effected. She says that some Yahoo employees are already being let go.

Yahoo has many thousands more employees than many industry experts believes it needs to have.”

Here’s what will happen in reality.
Anytime you ‘decide’ to make cuts based on a large group is rated, as Yahoo is doing above, you’ll always end up with rater error.  Hiring managers are going to know what’s going on.  “Oh, so if I rate Timmy “occasionally misses” on completing projects on time, you’re going to make me fire him? No problem, Timmy “never” misses, now.”  What you’ve done is completely take out your managers ability to develop talent through your performance management process.  You’ve decided to use your performance management process as a weapon.  This will not end well.
When you begin down this path, you end up in a death spiral corporately.  You’ve handcuffed your managers’ ability to manage their teams. “Well, I can’t deliver effective performance messages because you’ll just fire the person. So now, everyone is ‘completely’ average or above!”  Even when their not.  You’ve taken away your ability as an organization to get better internally, and driven home the message “You either be a rock star or we will hire a rock star from the outside”.  No longer can you ‘work’ to get better in our environment.  Most people do not want to work in that type of environment.
How should Yahoo handle this issue?
First and foremost you can’t have a ‘black and white’ cut off.  This doesn’t work anywhere!  What is an employee had two “occasionally misses” three quarters ago, but since has been great.  Under your plan, they’re gone anyway.  Does that really make sense?  Ultimately you need to let your individual leaders make these decisions and hold them accountable to the budget.  This is real world stuff, the budget is desperately important in Yahoo’s case.  Leaders get paid the big bucks to make tough decisions.  Make them, make those decisions.  If they can’t, or won’t, you know who really needs to be replaced.
I get it, Yahoo is in a really bad position.  They need to get leaner and they are attempting to do this by letting the weak performers ago first.  I actually admire that.  Way to many companies just layoff based on seniority and end up cutting great talent and keeping bad talent.  This is better, but I think they could have made it even more effective with a little more leadership influence to the decision making process.

How To Tell An Employee They Suck

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You have an employee who sucks don’t you?

I know, I know, you’re wondering how I knew that, aren’t you?

Well, you came to this post and we all have employees who suck! (Dear My Employees – this is for effect — none of you really suck! Just everyone else reading this post has employees who suck.)   I’ve been out on the road quite a bit lately meeting with HR pros.  I meet with people under the reason ‘we can’t find talent’, but usually what I find is ‘we can’t get rid of people who suck, so we hire more people to cover up their suckiness’.

Don’t feel bad.  Almost every organization I know has a problem getting rid of people who suck.  We hire people. They become a part of the family.  We find out they suck.  Like your drunk uncle who ruins holidays, these employees are similar.  You don’t stop asking your uncle to come to Christmas, and we don’t ask these employees not to come back to work.  So the sucky employees keep coming to work.

We meet with them and have ‘conversations’ and tell them we need them to “step up” and “reach higher” and “give maximum effort”.  What we never say is “Hey! Stop Sucking!”

We don’t do this because we’re professionals!  Also, we would never allow their managers to say this, that could very well hurt the feelings of these employees who suck.

So, do you want to know how to tell an employee they suck?

Here’s 3 ways you can do it:

1. Send them a personalized cookie with the words “Stop Sucking!” Kind of like a Happy Birthday cookie, but instead replace Happy Birthday with Stop Sucking! For those really outgoing, caring HR Departments you can actually order “Stop Sucking” cookie bouquets that spells this out in letter cookies. How fun!

2. Offer FREE “Stop Sucking” tattoos, but only to them.

3.  Decorate their cube or office door after they leave at night so the next day when they come to work they’ll get a big Stop Sucking surprise!

These also sound ridiculously stupid, don’t they? (except of the cookie bouquet – that’s a good one)

Almost as ridiculous as not getting rid of employees who suck and hiring additional employees to cover up for an employee who doesn’t carry their own weight…

I get it. We don’t hire employees to fire them.  We hire them to productive contributors to our organizations.  The problem is, sometimes we make mistakes.  Sometimes our selection process fails.  Sometimes we make bad hiring decisions.  Sometimes the hire we thought so highly of, sucks.  We usually know it right away, but we give it time, we hate believing what our gut is telling us.

Telling an employee they suck is an awesome experiment, with no downside.  One of two things usually happens when telling an employee they suck. They will either realize you’re right and you can start making departure plans, or they’ll want to show you your wrong and work to demonstrate they don’t suck.  For me, this has really gone about 50/50.  I’m not saying that the employee 50% will stop sucking.  They’ll try not to suck really hard, but at their core they suck.  I love seeing the passion, many times that alone will bring them up to a performance level to at least get by, but rarely do you go from sucking to rock star.

A third thing might happen when telling an employee they suck.  They won’t agree with you. That’s okay as well.  It’s not their call.  You’re the leader.  Your opinion is what counts.  If you feel they suck, they do, for you at least.  Let them go and be ‘great’ somewhere else, like your competitor.

 

 

A New Way To Retain Employees!

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(I just returned from the 2013 HR Technology Conference where I got to see all the latest and greatest HR technology, and speak to some wickedly smart people.  So, for the next week or so, my plan is to share some of the products and insights I gained from this experience. So we are clear, no companies I write about have paid me to write about them.  I requested Diet Mt. Dew be delivered and no one brought one.  Enjoy…)

I swear last product I want to talk about from HR Tech!  This one is near and dear to my heart because it’s about employee retention!  I know boring right!  No sexy, stealthy way to find talent or Jedi Mind Tricks to get your staff to perform better, just good old solid how the hell do we keep our people from leaving!  HR to it’s core.

The company is BlackBookHR, there new product is called Sense and it won best new HR Tech product of 2013!  I continually referenced them as BackDoorHR (because deep down I’m a 12 yaer old boy at heart).  I’m sorry about that Chris Ostoich, the Founder and CEO of BlackBookHR.  Chris is a really great person, with a really great story.  He’s one of those guys you route for. He couldn’t really even afford to have a booth at HR Tech, but won the prize for best product anyway! (He told me he could afford a booth, but thought there were better ways to spend the money – he’s right!)  Also, he brought his Mom out to Vegas to see him get the award!  Pure Midwest, baby!

Sense is a software which sets an engagement baseline for your entire staff.  Don’t worry that takes about 5 minutes for your employees to complete.  Then, each week Sense goes out and within 30 seconds re-measures to the baseline of each employee (through an email interface and quick point and select questions).

Here’s a quick example: An original question might be — “My company gives me the tools and resources I need to do great work?”  On a scale of 1 to 10 I say, “Yep, they do at an 8”.  Everything is going great at an 8, then a few months later my boss tells me he’s cutting some tool out of my budget I rely on.  That Friday Sense asks me the same “tools and resource” question, but this time I answer “1”.  The system ‘senses’ something went wrong with my engagement, and that I could be a flight risk, so HR is told.  HR then determines how to elevate this to my supervisor, or do they handle it themselves. Pretty cool!

Sense also does one other very cool thing and shows you how an employee influences within your organization.  Not all employees are created equal.  Some have major influence and connections, and one of those employees leaves, usually others follow.  Sense will show you who those employees are in your organization as well!

Beyond cool, is that some very big Fortune 500 types have been using this and the metrics show that it actually works.  Like reducing many percentage points off your turnover works!

How did Chris know this idea would work?  He lived it!

Chris isn’t from HR or even from IT.  He was a finance dude who had a feeling he could easily be talked into leaving his current company.  He saw others like him, and thought there is a way to stay connected and at least giving the company a chance to hang on to him, and show him some love, on those times when he was most vulnerable to leaving.  Long story short, he shared his idea with his company, and they listened, and they told him to get his ass back to work!   He did, on his own, building Sense!

Check it out – quickly!  Sometimes the simplest ideas and products have the biggest impact to our bottom line.   I have a feeling Sense won’t be around as a stand alone product for long.  My guess is Oracle, SumTotal, Halogen, SuccessFactors, etc. will come knocking on Chris’s door and offer him a huge pile of cash to integrate it into their own suite.  It’s that good.

Cool New HR Tech…that you might even be able to afford

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(I just returned from the 2013 HR Technology Conference where I got to see all the latest and greatest HR technology, and speak to some wickedly smart people.  So, for the next week or so, my plan is to share some of the products and insights I gained from this experience. So we are clear, no companies I write about have paid me to write about them. Enjoy…)

Here’s a run down from the HR Tech Conference Expo:

BambooHR: Tagged as your “1st HR system” or “we love you, if you use spreadsheets as your HR system” – Ben Peterson, the CEO, was by far the coolest and nicest and real CEO (and maybe person) I met all week at HR Tech.  They don’t like to use ‘HRIS’ because small and medium sized businesses and HR shops don’t even really know what that means.  BambooHR is an easy to use HR system and nicely designed, for a very, very cheap price.  Don’t let the price scare you off — cheap, in this case, doesn’t mean they try and a one-size and process fits all perspective down your throat – they’ll customize for you – and still be cheap!  If you are looking for your first HR system, or to up grade your old system, and you don’t look at these guys, you should be fired as an HR professional.

Blissbook: “Employee Handbooks to Smile About”.  I know, I know — Tim, you’re talking handbooks!?  Here’s the deal.  They have a super cheap, super cool UI (user interface — BTW, no one at HR Tech talks English, they only talk tech).  So, you can put your handbook online and add video, and hyperlinks and all kinds of stuff, and they make it really easy.  Don’t think PDF of your handbook on your careers site, it’s more than that.  Think of it as a cultural narrative of your organization having it’s own website.  One issue I see them having, the examples they show are really cool and hip.  So you think you can do the same thing, the problem is content isn’t easy to write to be cool and hip.  If you aren’t creative, neither will your Blissbook.

SumTotal: SumTotal is like BambooHR, if BambooHR was a gigantic enterprise total HR solution for your business.  Let’s be clear, SumTotal is a big company, like Oracle, ADP, SuccessFactors, etc. Big companies have the resources to do some really cool things, and Sum Total did that this year.  They added the industry’s first Context-Aware user experience. What’s Context-Aware?  You know when you go online to a store and look at a really nice pair of shoes you want, you put it in the cart, but last second you decide, I just can’t get these today.  We all do it.  Context-Aware marketing is the Ad a few days later on the side of another site you’re reading where those exact same shoes you were looking at pops up and now are 10% off!  How does this work in an HR system? Let’s say you have an employee who is not reaching their sales goal.  SumTotal’s new addition will recognize the employee is missing their goal, and without prompting or any HR or manager interaction at all recommend a training course for this person to take to better help them make their goals and maybe even a mentor in the company they should speak with who could help them become better at their job.  I don’t do this justice — trust me, it was super cool!

Work4Labs:  Work4 does Facebook recruiting, in an industry where no one has really figured it out yet (do you hear that Facebook?).  Work4 makes an solution that makes it really easy for companies to get their jobs posted on their company Facebook page and help them navigate, very easily, how to search for talent on Facebook’s Graph Search.  Also, they do this for a rather cheap price!  (Cheap meaning the cost of one or two headhunting fees, so you can see a very quick ROI)  Matthew Brown, Head of Product and co-Founder, might be 24 years old, which also helps let you know these guys get Facebook!

WePow: Formerly known as Wowser.  WePow is a video interviewing platform.  They’re really good at branding.  They gave out royal blue Converse Chuck Taylors at their booth and had pairs for all the big name pundits in our industry: Kris Dunn, Steve Boese, Gerry Chrispin, John Sumser, William Tincup, Laurie Ruettimann, etc.  Those kinds of things make a splash and get a good buzz going about their product.  Apparently, I’m not a big name in the industry, I didn’t get a pair of shoes (which is really the only reason they get mentioned here!).  Also, apparently, they are “like HireVue” when I asked their booth crew what they did.  Thanks HireVue for being so good at marketing you now have become the Kleenex of video interviewing.

YouEarnedIt:  New up and coming awards and recognition firm, designed around delivering a product that small and medium sized businesses can use.  Think Achievers, for smaller companies, and a lot less money.  Much more accessible for smaller companies because you aren’t forced to purchase their catalog of merchandise/awards which usually carry an industry standard 20% markup.  They do have that as well, but much more cost effective than the giants in the industry.

More next week – I’ve got two companies – one really well known and one hardly anyone knows doing some really cool things!

The #1 Isssue At Every Organization

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(I just returned from the 2013 HR Technology Conference where I got to see all the latest and greatest HR technology, and speak to some wickedly smart people.  So, for the next week or so, my plan is to share some of the products and insights I gained from this experience. So we are clear, no companies I write about have paid me to write about them. Enjoy…)

There are a few things we just come to know as fact in organizations.  If you were to ask anyone, at any level of your organization to come up with just one issue they have at their organization, hands down, without a doubt, across all organizations, the number one issue would always be communication!

Before I traveled to the HR Technology Conference, Halogen Software asked me to complete a Myers-Briggs Assessment (MBTI).  It had been many years since I did one, and they wanted to show off some upcoming additions to their talent suite and how they are utilizing MBTI to address the communication gap found in all organizations.  Halogen didn’t tell me anything about what to expect, so my guess was they were going down some lame path of using my Myers-Briggs in some sort of new selection functionality, but what I found was really something completely different and awesome!

By the way, my MBTI was ENTJ (What the what!? Don’t you love acronyms!) Basically, ENTJ, is one of 16 possible Myers-Briggs profiles of an individual and one of the most rare.  ENTJ is an executive profile, they get things done, they make decisions quickly and move forward.  Yep, that’s me.  My good friend, Kris Dunn, also took the assessment and was profiled as an ENTP.  Only one letter difference separates us, so basically we are the same in many ways: quick thinking, extroverted, creative, well read, etc. The one letter difference means I like to get things done and KD likes to talk about getting things done! 😉

Why do I bring Kris into the mix of this communication tool that Halogen added to their product?  Because communication happens between two or more people.  The reason all organizations have communication problems somewhere in their organization is because we try and solve communication individually.  “It’s Tim’s problem, he’s just a bad communicator.”  “Our managers don’t know how to communicate.”  “Our executives don’t know how to communicate.”  Halogen found out a way to put a tool in the face of every single person in your organization that helps them become better communicators, with every other single person they work with!

What Myers-Briggs does is not only show us how we are from a personality standpoint.  It also shows us how we like to receive and give information.  Halogen has integrated the assessment within their product, but took it a few steps further from a development standpoint and it allows you as an individual to compare your type to a co-worker’s type.  So, I’m having trouble getting along with Kris.  I go in, compare my MBTI type with Kris’s type, and the software gives me ideas and examples of how I can better communicate with Kris. Simple and effective. As a manager this is awesome, because I can now see how do I communicate with my team on an individual basis.  It was really powerful, and I didn’t see anything else like this being done from any other company.  It was one of the cooler advancements into an existing product I saw at HR Tech this year.

I can’t tell you how many times I meet with company executives who are looking to try and make their organizations better, or their leaders better, and it always comes back to communication and them wanting me to help them make individuals (or their organization as a whole) better at communicating.  The problem is, and which MBTI points out, this isn’t a one-way problem.  It’s two-way!  Want to solve your communications issues?  Find out how you get both sides to communicate like the other wants.

 

 

 

LeBron James Isn’t Good Enough For My Team

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Just putting together the roster for my annual Men’s City Rec Basketball team.  I’ve been pretty lucky in the past and have gotten some great players to come out and let me jump on their back to the championships.  As of right now here’s my roster for 2013-2014 season:

Current Starters (based on last years roster):

Point Guard: Craig Miller – Mid 30’s, 5’10”- still in ‘decent shape’ (this means he’s younger and faster than most of us).  He’s good for one wide open layup per quarter and one turnover.

Shooting Guard:  Don McCormick – 39, 6’0″ – He’s flat out money, I don’t think he’s missed a shot since 1998. Played DIII ball back in the early 90’s.  His job sometimes makes it so he can’t make games – we struggle in those games.

Small Forward: Marcus Jones – 47, 6’2″ – He’s our one black guy (we’d like more black guys, but it’s hard to find middle aged black guys in the suburbs who want to play with a bunch of white guys), he’s also the oldest guy we have.  Really never makes a mistake unless it’s a no look pass to one of us which we weren’t expecting.

Big Forward: James Brookes – 32, 5’11” – He’s not a basketball player, he’s a weight lifter.  Can’t shoot or dribble, but he’s good to hurt at least one opposing player each game, sometimes two.

Center: Mikey ‘Stretch’ McGee – 42, 6′ 5″ – He’s our tallest guy.  He likes to shoot the three.  Could have played D1, ended up going the CC route.  Currently he’s a UPS driver.

The Backups:

Point Guard: Me – 43, 5’7″- player/coach/manager – I get in if we are really up big or down big.  I’ve never seen a shot I didn’t like.  My philosophy: ‘Shoot till you get hot, then shoot to stay hot”

The 6 footers:  Ben, Jerry and Ken: All of these guys are 6 foot and basically play any position.  I lumped them together because they really are the same player. Solid, can do it all, just don’t make them run too many minutes at one time.

We are looking to add one more player to our roster this year.  We lost Billy.  He had to have his knee replaced and his real estate business was taking off again after the recession, so he’s out.  Here are the three candidates we have to replace:

1. Matt Smith – New guy in town.  He’s really in shape.  His wife is way hot.  He has a great basement man cave.  Seems like he would fit in with the guys really well.

2. Josh Moore – Another six footer.  He’s subbed for us in the past.  Likes to shoot (meaning he takes my shots).  The guys know him, but he rubs some guys the wrong way (mostly me, he takes my shots)

3. LeBron James – Yep! You read that correctly.  Let’s just say I have a connection.  Nothing in his contract to stop him from playing with us on Tuesday nights.  His schedule actually allows him to make 90% of our 12 game schedule.  We would own the league!

Seems like a really easy choice right!?  Wrong!  You see, I went to the guys to vote.  Knowing they would all laugh and Lebron would get his ‘Legion 124’ jersey shipped in the mail.  But to my surprise Matt Smith won the vote.  I couldn’t believe it, I had to find out why.  Across the board the guys came back with the following reasons why LeBron wouldn’t be a good fit for our team:  Wouldn’t find it a challenge, he would be bored, he was over qualified, he would end up quitting half way into the season, he wouldn’t take it seriously.

We had a shot a Lebron James for our team, and we didn’t take him.  Hard to believe, right?

It’s your reality.  Everyday you turn down great talent in your organization.  You turn down LeBron James because you’re scared.  We don’t say we’re scared.  We give ‘legitimate’ reasons like: “You’re over qualified” and “You wouldn’t find this position challenging”.  But we are just telling ourselves this, to make us feel better about making a terrible decision to turn away great talent.  ‘Being over qualified’ for a position is the single lamest reason to turn down talent that HR and Talent Acquisition has ever come up with.

The question is, would you turn down LeBron James if he wanted to join your team?

3 Ways To Make Contract Hiring Work For You

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I was in a meeting with an HR executive recently talking about some pain points they are having.  You see, in my business of staffing, you don’t get in the door unless someone in HR is unhappy with some kind of results in their hiring.  It’s the game.  You’re unhappy, I come in and tell you how I’ll make you happy.  This HR Pro was having a hard time finding engineering talent.  They did what a the majority of corporate recruiting departments do – they used a number of sourcing options, posting options, looked at hiring incentives, made sure they paid competitively, etc.  Not bad, hit all the basics.  After this failed, they went the direct-hire agency route.  Made some hires.  Some worked out.  Some didn’t.  Paid fees on all of them, since all made it past the guarantee.

So, how are you going to help me?

Fair question.  Really the only question she needed an answer to.

I dig in and find out that while the direct-hire agency route worked.  It left them feeling ‘unsatisfied’ because although they didn’t blame the staffing firm they were working with for the turnover, they couldn’t get over paying all those fees, and now have nothing to show for it.  The reality was, they have a tough environment, a challenging workplace culture, and some managers who aren’t the best managers.  This caused the turnover.  Still, they are left in the same place they started — ‘we still need engineers’.

Okay, now it’s my turn.

Me: “How about you try contract?’

Her: “We don’t use contract, we want to hire direct.”

Me: “Why?”

Her: somewhat stunned I asked this question and expected an answer — “Well, we need these people long term, not temporarily, and we want top talent and I don’t think hiring contractors would give us top talent.”

Here is HR executive’s dilemma: first, they need engineering talent; second, they turn over talent because of their environment; and third, they don’t want to pay fees.  Whether she wanted to hear it or not, Contracting was the answer to her problem.

Here was my conversation with her:

“You need to bring in Contract Engineers to fill these jobs.  We will find talented people, you will be amazed.  After 12 months, I’ll let you have them for no buy-out.  Thus, you’ll have no fees.  You have a bad environment with high turnover, you need us to find you engineers who can survive this environment and help you move forward all at once.  Contracting is great for this.  For many reasons people decide to contract.  Folks like you judge them for that, and consider them low talent.  I can give you a list of clients we are working with right now that will share stories with you about how wrong this is.  You will find great loyal talent when using contractors.”

“But it costs so much!”

“That is another misnomer! Let’s say your total hourly cost for an engineer is $60/hr, which includes pay, benefits, PTO, bonus, 401K match, taxes, etc.  I can get you that same level talent for $60/hr.  I can do that because I don’t pay all the fringes you pay, I pay the same taxes, and lower amounts of PTO.   Your cost on a 12 month contract hire is virtually the same as if you would have hired the person direct, plus if you fall in love with them, you pay nothing after 12 months.”

It’s not a sales pitch.  It’s just the facts when you work out the numbers.  She signed up.  I’ll let you know how it works out, but to be honest I already do.  We’ve been doing this for 33 years.  It will work out great, and she’ll solve her problem.

There are 3 concrete ways which Contract Hiring is a no-brainier:

1. High Turnover positions.

2. Short Term Projects – 3 months to 3 years – but basically we don’t nee the person on after that

3. Beginning or Ending of a location.  Need to grow quickly, or shutting down a location

There really isn’t any reason to be paying 20-35% fees (yes, I spoke to a company paying 35% the other day!) for direct hires.  The industry found a better way, HR Pros just struggle to change.  One other major factor that makes contract hiring work, is it seems to make companies more comfortable in taking some risks in hiring people they normally wouldn’t.  ‘What the heck, they’re on contract, if we don’t like them, we can replace them.” Every time I hear this, it makes me smile, because I know they’ll like the person!  But if contracting gives them that ‘freedom’ then I’m all for it!  I hate telling them they have the same freedom hiring direct!

 

 

 

3 Ways Your ‘Cool’ Boss Is Killing Your Career

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My wife and I have saying in our house:

“We never want to be the ‘cool’ parent.”

You know why?  ‘Cool’ parents are the ones you let their kids do things they shouldn’t be doing as kids.   It’s not my job as a parent to get my kids to like me – it’s my job to raise responsible adults who do better for their family and the world in general.  That means we say ‘No’ a lot.  No, you can’t got the movies at midnight. Yes, I’m aware the Brown’s allow this – they also allow their 17 year old son’s girlfriend to sleep over, and the teenagers to drink.  I would rather you shoot me in the head.

You know what’s funny?  I don’t think my kids hate me. (Kids – please don’t comment on this post!)  Kids like having boundaries.  They don’t tell you they like this, but when they have boundaries they act like better people. If you leave them without boundaries you end up with Lord of the Flies.

I’m not saying that being a leader/Boss/Supervisor is like being a parent. Okay, yes I am, it’s very much like being a parent!  Everyone wants to be the ‘cool’ boss when they first start out in a managerial role.  It’s very normal to think this, and go down this path.  What you find out quickly is that employees, much like children, don’t perform as well without consistency.  Things at work are going great, you’re the ‘cool’ boss, all of sudden times get hard, you lose a big client, and you have to make tough decisions, and your employees lose their minds.  This happens because you begin acting in a way you never have.  You begin hearing things like: “You use to be so cool.”; “You seem stressed all the time.”  These are signs that your subordinates think your friends.  Let me tell you a little secret — Friends don’t fire friends.  You are not friends with your subordinates.  You might be friendly, but that doesn’t make you friends.

‘Cool’ bosses who believe they are friends with you, also rarely tell you the truth about your performance.  Why? Because they don’t want to hurt a ‘friends’ feelings.  They hint at it, they run all around the bush, but they’ll never really tell you what you’re doing that is holding you back in your career path.  Here’s an example: “So Tim, tell me what does it look like for a promotion?” (I’ll be Tim the Cool Boss!) “Well, Mary, you know I back you 100%!  If anyone deserves it, it’s you, but it’s not my call.  I’m sure you’ll get it.” No, she won’t.

A ‘Cool’ boss can ruin your career faster than almost any single thing you run into in the corporate world.  While you might think the cool boss is great, the reality is your executive team knows.  They know this person lacks what it takes to move the organization forward, so they are probably stuck in middle-management for life.  A ‘cool’ boss lacks the credibility needed to influence decision makers.  This makes it very hard for your ideas to be seen and heard at an organizational level.

So, what are the 3 Ways you ‘Cool’ boss is killing your career:

1. They aren’t helping you get the most out of your talent

2. They won’t be honest with you and what you need to change

3. They don’t have the influence to move your career forward

How does it sound being the cool boss now?

Has HR Evolved Enough To Allow Napping?

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Have you read any studies recently, or in the past, that said how beneficial naps are to high performance?  I bet you have.  Here’s one I read this week from the Wall Street Journal:

 “In a 2012 study in the journal Neurobiology of Learning and Memory, researchers split 36 college-aged students into three groups. Each group learned a memory task, pairing words on a screen with a sound. Afterward, one group had 60 minutes to nap, another 10 minutes. The final group didn’t sleep.

Upon retesting, the napping groups fared better, as expected, said Sara Alger, lead author of the study and a postdoctoral research associate at the University of Notre Dame.

More interesting, she noted, was that on further testing, including a week later, the 60-minute group performed far better than the 10-minute group, which now performed as poorly as the non-napping group. The researchers concluded that slow-wave sleep—only experienced by the 60-minute nappers—is necessary for memory consolidation.”

The benefits of napping is one of those things that we as a society, for the most part, completely agree with.  You never really ever hear anyone argue against it.  Naps are good.  So, why is napping at work still considered taboo?

Maybe a better question is: do you currently work at an organization where you would feel comfortable taking a nap, at work?

For the vast majority of you ready this the answer is ‘No’.  While the benefits of napping to productivity are unquestioned, we (American Society) still see napping as a sign of weakness, of fragility, of not being able to handle it.  There are a few of those ‘hip’ Silicon Valley companies who ‘allow’ napping, but for the most part who will not find napping rooms in most American companies.  You will not find HR in American companies encouraging their teams to ‘shut-it-down’ at 2pm and having nap time across the company.

Don’t get me wrong, you will find American employees sleeping on the job!  But don’t worry, HR will ‘handle’ that!  I myself have fired employees for ‘sleeping’ on the job.  The issue isn’t if napping is good for productivity.  The issue is those employees getting fired for sleeping are doing it without consent or permission.

I wonder if employees, I even think about my own team, if told — “Hey, from now on out you can take a one hour nap at work!” — would they take advantage?  I’m sure they would take advantage if they were told it wouldn’t effect their start and end times.  What if you told your workforce — “We are now working 8am to 6pm, but from 2pm-3pm we’ll all be taking a nap!”  How would that go over in your workplace.  I have a feeling that ‘taking a nap’ would become a very negative ‘policy’ change!

So, what say you HR Pros — Has HR (In America) Evolved Enough To Allow Napping at Work?

I say, No!