What is the right diversity mix of employees for your organization?

This is a question I think many executives and HR and TA leaders struggle with. SHRM hasn’t come out and given guidance. ATAP has not told us at what levels we should be at with our diversity mix. So, how do we come up with this answer?

Seems like we should probably be roughly 50/50 when it comes to male and female employees. Again, that’s a broad figure, because your customer base probably makes a difference. If you’re selling products and services mostly women buy, you probably want more women on your team.

The more difficult mix to figure is when it comes to race. Should we be 50/50 when it comes to race in our hiring? Apple has taken it on the chin the last few years because of their demographic employee mix, and even as of this week, are still catching criticism for having only 1/3 of their leadership team is female, and only 17% of their entire team being black and Hispanic. 55% of Apple’s tech employees are white, 77% are male.

So, what should you diversity mix be?

The most recent demographics of race in America show this:

  • 61.3% are white
  • 17.8% are Hispanic/Latino
  • 13.3 are black
  • 4.8% Asian

Some other interesting facts about American race demographics:

  • 55% of black Americans live in the south
  • White Americans are the majority in every region
  • 79% of the Midwest is white Americans
  • The West is the most overall diverse part of America (where 46% of the American Asian population live, 42% of Hispanic/Latino, 48% of American Indian, 37% of multi-race)

So, what does this all mean when it comes to hiring a more diverse workforce? 

If 61.3% of the American population is white, is it realistic for Apple to hire a 50/50 mix of diversity across its workforce? I go back to my master’s research project when looking at female hiring in leadership. What you find in most service-oriented, retail, restaurants, etc. organizations are more male leaders than female leaders, but more female employees than male employees.

What I found was as organizations with a higher population of female employees hired a higher density of male employees as leaders, they were actually pulling from a smaller and smaller pool of talent. Meaning, organizations that don’t match the overall demographics of their employee base have the tendency to hire weaker leadership talent when they hire from a minority of their employee base, once those ratios are met.

In this case, if you have 70% female employees and 30% male, but you have 70% male leaders and only 30% female leaders, every single additional male you hire is statistically more likely to be a weaker leader than hiring from your female employee population for that position.

Makes sense, right!

If this example of females in leadership is true, it gives you a guide for your entire organization in what your mixes should be across your organization. If you have 60% white employees and 50% female. Your leadership team should be 60% female leaders.

But!

What about special skill sets and demographics?

This throws are demographics off. What if your employee population is 18% black, but you can’t find 18% of the black employees you need in a certain skill set? This happened in a large health system I worked for when it came to nurse hiring. Within our market, we only had 7% of the nursing population that was black, and we struggled to get above that percentage in our overall population.

Apple runs into this same concept when it comes to hiring technical employees because more of the Asian and Indian population have the skill sets they need, so they can’t meet the overall demographics of their employee population, without incurring great cost in attracting the population they would need from other parts of the country to California.

Also, many organization’s leaders will say instead of looking at the employee base we have, let’s match the demographic makeup of the markets where are organizations work. At that point, you are looking at market demographics to match your employee demographics. Again, this can be difficult based on the skill sets you need to hire.

If I’m Apple, I think the one demographic that is way out of whack for them is female hiring. 50% of their customers are female. 77% of their employees are male, but only 33% of their leadership is female. It would seem to make demographic sense that 50% of Apple’s leadership team should be female.

Thoughts? This is a really difficult problem for so many organizations, and I see organizations attempting to get more ‘diverse’ in skin color without really knowing what that means in terms of raw numbers and percentages.

What are you using in your own shops?

The Recruiter Name Generator! What’s Your Recruiter Name? @atapglobal

I’ve noticed that certain recruiters have it easier than others. If you have a ‘unique’ name, you know what I’m talking about! You might spend the first two minutes on your conversation trying to get the candidate to say your name correctly! If you leave a message and they call back to your office it’s often hilarious at what name they ask for.

It’s a real problem for our industry, especially in America, where we tend to only want to respond to names we know we can pronounce. Think this isn’t a problem? Go out on LinkedIn and search for recruiter working for Indian RPO services. You’ll find a ton of these recruiters have changed their name to a more ‘American’ version because it helps get higher responses.

The thought process is, from the candidate’s perspective, is that if a recruiter’s name is “Paul Raja” vs. “Praveen Raja” that “Paul” probably speaks great English, so I’ll call him back, but “Praveen” might not speak as well. Is that dumb logic? Yes! Is that happening? YES! (By the way, this has happened for decades with Chinese engineering students as well, who will take very American first names because recruiters are more likely to call “Joe Lee” then “Huang Lee”)

So, what does it take to the have the perfect Recruiter name to get candidates to call you back?

First, you need a name that is recognizable and easy to say for the population you’re trying to recruit, and usually, one syllable is better. Thus, if you’re recruiting traditionally Hispanic employees, you would want a traditional Hispanic name, etc.

– In America: Mary, Mark, John, Jill, Jose, Maria, etc.

– In England: Holly, Simon, Henry, Olivia, etc.

Second, you shouldn’t have a name from a TV show or movie:

– Theon, Skyler, Tristen, Miley, etc.

Third, you want a last name that is common, but not too common, like it’s made up:

– Smith is out, but Brown is okay, as long as Brown isn’t paired with Charlie

– Bonernose is out, as would be Newbutt.

Finally, you don’t want to be the person with two first names or two last names. It’s too confusing for candidates:

– Kevin Johns or Mary George

– Turner Wilcox or Lee Nelson

That’s why I put together this easy to use Recruiter Name Generator! All you need to know is the month you were born in, and your favorite color, and BAM! You’ve got your very own, easy to use, will probably get a callback, new Recruiter Name:

So, using the easy to use charts above my new Recruiter name is: Mark Wilson!

Wouldn’t you want a call from “Mark Wilson”? Doesn’t “Mark Wilson” sound official, while also being competent and kind? Of course, he does!

What’s your new Recruiter name?

The Recruiter Nation Live Hangout Series – With Jobvite and Fistful of Talent!

Our first hangout is at 1 pm ET on Tuesday, November 14th 

Google for Jobs/ROI of Recruitment Marketing Spend! What You Need to Know to Look Smart!!

 REGISTER FOR THE HANGOUT BY CLICKING THIS LINK!!!

If you’re a client or follower of Jobvite, you know the Recruiter Nation Live series.  It started with the Recruiter Nation Live Conference in San Francisco last June and continued with the Recruiter Nation Live Roadshow that brought real recruiter talk to 9 cities in North America over the last three months. 

The feedback was great – you loved it, so they are back with the latest in the series – the Recruiter Nation Live Hangout Series.  Once a month, they’ll be hosting a Google Hangout designed to keep the conversation among recruiters going – focused on things you can use, like the best-kept secrets of today’s smartest and most efficient recruiters, Jedi-mind tricks proven to make you more persuasive/ get great candidate response and strategies to hold your hiring managers accountable for their choices–so everyone wins.

I’ll be on the first hangout and it is at 1 pm ET on Tuesday, November 14th and will be hosted by Kris Dunn and me, focused on the following juicy topic:

 Google for Jobs/ROI of Recruitment Marketing Spend! What You Need to Know to Look Smart!!

 REGISTER FOR THE HANGOUT BY CLICKING THIS LINK!!!

Let’s have some fun and learn from each other at the same time.  See you at 1 pm ET on November 14th!!!

At 4% Unemployment, 2nd Chance Hires are Looking Very Attractive!

I’m a big fan of 2nd chance candidates. Candidates who were fired, terminated, let go, etc. for many various reasons, most of which come down to wrong job fit, the wrong personality fit with their boss, wrong skill fit, etc.

I don’t have actual numbers, and I wouldn’t believe any study who told me a number because here’s what really happens. An employee gets fired for ‘performance’ because the manager thought the person could do the job, even though the person had never done the job, and both continued to get frustrated. HR puts that down as termination for performance, not poor job fit, or lack of skills, or something else.

Is this person a bad employee? No. Did this person not try hard? No. Did the organization look to move this person into a role they were better suited for? No. It’s just easier to cut bait and move on to another hiring mistake.

The problem most employers are facing right now is at 4.1% national unemployment, almost any candidate that you find out of work is going to have a ‘hickey’. Maybe they require too much money, maybe they don’t have the education you require, maybe they won’t move, etc., etc., etc. We all know the deal. It’s tough sledding finding talent right now, it’s even tougher if you’re looking for someone out of work to fill your job!

That’s why 2nd Chance Candidates can be some of the best hires you’ll ever make, but you need to pick the right ones. Here’s what I look for in 2nd Chance Candidates:

1. A chip on their shoulder. I don’t want them to talk bad about their last employer, but I want to know they feel like they were unfairly evaluated and have something to prove!

2. Job history before the last job. Say what you want, but when taking a flyer on a 2nd chance candidate I find those will more solid work history tend to be the right ones to pick.

3. Willingness to do anything. When you get fired some weird shit happens to you. You get angry. You get sad. You get frustrated. Eventually, you get to a point where you go “I don’t care what it takes, I’m getting back into the game!” Those are my 2nd chancers.

4. The story seems to make sense. I don’t hire a 2nd chancer where the story doesn’t add up. So, you were the employee of the year, last year, then out of nowhere, with no reason, you got fired? Yeah, no thanks.

5. They want to work. You’ve been out of a job for 7 months, and I offer you a job, I only want to hear one thing. “I can start tomorrow!” If you tell me I can start in two weeks, or next Friday, or anything besides “I’ll start working right now if you let me” I’ve got a concern!

People get fired for awful things, but they also get fired over petty things. Being in HR, I’ve been apart of both kinds of firing, and I’m not proud of that fact. It’s super hard to support a hiring manager who wants to fire an employee because basically, the employee cares more than the hiring manager about the work, but I’ve seen it happen!

It’s our job in TA and HR to find out if we’re going to give someone a second chance. It’s not an easy decision. It seems like there’s always a red flag, and it seems that way because there is! The person was let go! It’s now our job to determine was that person being let go going to be a positive for our company, or a negative. I like to think, many of second chancers can be a positive!

But, don’t get me started on 3rd and 4th chancers!

What Does Talent Taste Like? When Recruitment Marketing Keeps it Real…

So, have a Coke and a Smile wasn’t good enough, the college recruiting folks in Coca-Cola’s Italian team had to get ‘creative’ and go off script. Here’s how that ended up (hat tip to Jim D’Amico for finding this pic!):

So, I’m not exactly sure from this ad who is tasting the talent. Maybe this is meant to get creepy hiring managers to the university, or maybe it just doesn’t translate to English. But whatever it means the Italian Coca-Cola team doubled down and also dropped in a landing page and hashtag for the event #TasteYourTalent or visit – www.tasteyourtalent.it.   

The site opens up with:

“Allenati per diventare un Champion di Coca-Cola HBC Italia”

Which, when translated means:

“Train to become a Champion of Coca-Cola HBC Italia”

I’m not sure if that is training to be a champion of sexual harassment, but whatever it is I’m interested in seeing how it all turns out!

I can picture this entire creative process playing out in the TA department at Coke Italy. “Hey, we need a great theme for our next university recruitment event! What do you guys have?”

“The Real Thing!” – did it. 

“Coke is it!” – did it.

“The Coke Side of Life!” – did it. 

“Taste the Feeling!” – did it. 

“Taste the Talent!” – Wait! What!? What did you just say!? That is f’ing brilliant. We’re recruiting talent. Coke tastes great! Taste the Talent! Go spend $3 million Euros and make that happen!  

Do you want to know what’s great about blogging? You just can’t make this stuff up! The bar for entry into Recruitment Marketing is apparently very low. Stay thirsty my friends.

Are Recruiting Layoffs a Sign of an Economic Downturn?

Have you been watching the recruiting news lately?

My good friend Stacy Zapar (who runs The Talent Agency focused on recruiting recruiters!) and I send notes back and forth on stuff we hear in the industry. She’s in California, I’m in Michigan, we swap all the rumors and verified stuff we are hearing to get a better understanding of what’s going on. In the past few weeks – it’s been a bloodbath on the corporate recruiting front!

Snap, Blue Apron, CareerBuilder, Facebook, etc. and those are just the ones that have gone public!

So, the big question is “Are layoffs of recruiters a ‘canary in the coal mine’ indicator of an economic downturn?”

My first reaction is “Oh, hell yes!” Recruiter layoffs happen when you know you won’t be hiring! So, it has to be some kind of indicator about your business. The broader question would be are those layoffs an indicator of overall economic health across the board? I’m not quite as sure of.

There are a number of factors at play here:

  1. Too many organizations across too many geographic areas have announced recruiter layoffs for this too coincidental. So, something is happening. So…
  2. Could it be just another tech bubble bursting, or is it wider than that?
  3. Is this just a normal 4th quarter correction after TA Leaders see their budgets for next year?
  4. Has TA technology, A.I., and Intelligent Automation, finally started making some impact on how we staff our recruiting teams?
  5. Did TA Leaders over hire over the past few years because we came out of the great recession with almost no TA staff, went right-ditch-left-ditch in our correction, and now we are correcting back to the proper staffing levels are teams should be?

I think it’s all of these things.

I don’t see any economist calling for a major downturn. I do see economist calling for things to slow down, but all of that has been expected for a while. Since the Great Recession, almost ten years ago, we’ve been on a cycle of really good growth, almost historic in nature. What we know is that can’t continue. So, there is some slow down happening, and it will hit certain segments harder than others, like every downturn.

I do think TA Tech automation, A.I., etc. has to have an impact on TA Team size moving forward. As TA Leaders, much of the ROI built into your TA Tech purchase is headcount. It’s the only way it works out. Either you’ll lose some of your team, or you’ll be in a position not to add team members, that’s how ROI works!

So, what do you think Recruiters? Are you feeling anything? Hit me in the comments!

You almost never go wrong when hiring pretty people!

What do you think of, in regards to smarts, when I say: “Sexy Blond model type”?

What about: “Strong Athletic Jock?”

What about: “Scrawny nerdy band geek?”

My guess is most people would answer: Dumb, Dumb, Smart – or something to that context.

In HR we call this profiling and make no mistake, profiling is done by almost all of our hiring managers.  The problem is everything we might have thought is probably wrong in regards to our expectations of looks and brains.  So, why are ugly people smarter?

They’re Not!

Slate published an article that contradicts all of our ugly people are more smart myths and actually shows evidence to the contrary. From the article:

Now there were two findings: First, scientists knew that it was possible to gauge someone’s intelligence just by sizing him up; second, they knew that people tend to assume that beauty and brains go together. So they asked the next question: Could it be that good-looking people really are more intelligent?

Here the data were less clear, but several reviews of the literature have concluded that there is indeed a small, positive relationship between beauty and brains. Most recently, the evolutionary psychologist Satoshi Kanazawa pulled huge datasets from two sources—the National Child Development Study in the United Kingdom (including 17,000 people born in 1958), and the National Longitudinal Study of Adolescent Health in the United States (including 21,000 people born around 1980)—both of which included ratings of physical attractiveness and scores on standard intelligence tests.

When Kanazawa analyzed the numbers, he found the two were related: In the U.K., for example, attractive children have an additional 12.4 points of IQ, on average. The relationship held even when he controlled for family background, race, and body size.

That’s right HR Pros, pretty people are smarter.  I can hear hiring managers and creepy executives that only want “cute” secretaries laughing all over the world!

The premise is solid though!  If you go back in our history and culture you see how this type of things evolves:

1. Very smart guy gets a great job or starts great company and makes a ton of money

2. Because of success, “smart guy” now has many choices of very pretty females to pursue as a bride.

3. “Smart guy” and “Pretty bride” start a family which results in Pretty-Smart Children. Did you pay attention to basic genetics in biology class?

4. Pretty-Smart Children grow up with all the opportunities that come to smart beautiful families.

5. The cycle repeats.

Now, first, this is a historical thing thus my example of using a male as our “Smart guy” and not “Smart girl”. I’m sure in today’s world this premise has evolved yet again. But we are talking about how we got to this point, not where are we now.  Additionally, we are looking at how your organization can hire better.

So, how do you want to hire better employees?  That’s easy! Just hire more pretty people!

 

Are You Hiring Raw Talent?

Last week I got invited down to Rock Ventures (Dan Gilbert – the owner of the Cleveland Cavaliers and Quicken Loans – yeah that Rock Ventures) to do the closing keynote for their HR and Talent Summit across the family of companies in Downtown Detroit! Fun, fast-moving culture. Seemingly every CEO of the 130 Rock Venture companies looked to be 30-ish!

As you can imagine, fast-growing organization, that can grow or hire enough talent fast enough to keep up.

One of the sessions was led by Victor You, CEO of Rock Connections, which is a call center that was built for Quicken Loans, but they found out other companies needed a high-quality call center, so they started selling their services. Most of the Rock Venture companies have a similar story. Idea by an employee, run with it, if you can make it happen, you become the CEO!

Rock Ventures is a Detroit company. When I say “Detroit” I mean “Detroit”. The entire campus is downtown Detroit. They hire Detroit city citizens. They are almost singlehandedly turning Detroit into one of the hottest growing cities in the U.S. Therein lies Victor’s problem as a CEO of a fast-growing startup.

Rock doesn’t want to have to relocate everyone they hire to Detroit. They want to hire those people already in Detroit. As you can imagine there’s a skills gap. The normal Detroit citizen is like most urban center citizens. Lower educated, lower income, less likely to have a college education.

Victor graduated from the University of Michigan. Engineering grad who didn’t like engineering. So, he went and sold mortgages. Did pretty well. Good enough that Dan Gilbert made him CEO of a company! What I love about Victor is he gets talent. He gets talent at a very different level than 99% of CEOs on the planet.

Victor explained it the group as “Raw” talent versus experiential talent. Almost all of us hire experiential talent. We have a job opening. That job needs a certain level of experience. So, that’s what we recruit and hire.

Victor doesn’t look for experience. Victor looks for raw talent attributes. What are those?

  • Hard working
  • Pride in the work they do
  • Wants to be apart of something bigger than them
  • Never satisfied

He saw that many Detroiters had these attributes, but no one was willing to give them a shot because they didn’t have the ‘experience’. He was like, “we can teach them the job”, it’s harder to teach them the raw talent attributes. In fact, you can’t teach those raw talent attributes.

The results have been off the charts! Great retention. High performance. High diversity. High concentration of Detroiters.

In a tight talent economy, you need to start changing the way you do things. We need to open up these modern day ‘apprenticeships’. We need more CEO leadership like Victor You.

What if you and your competitors recruited talent together?

Think about most U.S. cities. What do they have in common? I travel all over the U.S. and to be honest, it’s all starting to look a lot alike!

Every city has a mall or three. At these malls, you’ll find the same restaurants. Chilis, Olive Garden, Applebee’s, Bravo, steak places, some random Japanese hibachi place, etc. Usually, down from the mal, you’ll find a Home Depot. Across the street from Home Depot, you’ll find a Lowes. Down from those are the car dealerships.

Sound like your city!?

Our cities are set up like this because it works. Putting all of these competitive places close together works for the consumer. They like all the choices close together.

Talent really isn’t much different.

If I’m a nurse, I want to be close hospitals. The more hospitals the better. That way if my job at one hospital isn’t working out, I don’t have to commute all the way across town to another hospital. If I’m in IT having a bunch of tech companies in the same area is desirable for the same reason.

What we don’t find, normally, are employers working together to solve their talent issues. A cook at one restaurant might be begging for more hours, but we never think about sharing that cook with the restaurant next door. We force the talent to go figure this out on their own.

Traditionally, I think career fairs thought they were doing this. Bring all the employers to one location and then all the talent can come and pick who they want to work with. It’s a start, but this isn’t really organizations working together to bring in more and better talent.

A modern-day equivalent to the traditional career fair might be cities working to ‘attract’ talent to their cities from places like Silicone Valley. In recent years, Minneapolis has been working to position themselves as a Midwest IT hub, so local and state government dollars have been working to get workers from other cities to come to Minneapolis.

What I’m talking about is what if two companies came together to share their talent databases for the benefit of both? Could it work? What would get in the way?

I think it could work. I think the organizations involved would be some forward-thinking leadership, some tight rules of engagement, and a very new way of thinking about collaboration.

So often we make a hire of someone we know if talented, but it doesn’t work out for a number of reasons, many times those reasons are self-inflicted by the organization. What if you could ‘move’ that talent to your ‘talent partner’ organization for a fresh start, and vice versa?

I love times when talent is tight because it forces us to start thinking about different solutions and ways of doing things. We all have talent in our databases that we aren’t using and might never use, but someone else might have exactly what we need in their database.

Instead, we sit on our unused, expensive inventory of candidates and do nothing. That doesn’t seem like a smart business practice…

Do you pay your employees more for referring Diverse candidates?

I know a ton of HR Pros right now who have been charged by their organizations to go out and “Diversify” their workforce.  By “Diversify”, I’m not talking about diversity of thought, but to recruit a more diverse workforce in terms of ethnic, gender and racial diversity.

Clearly, by bringing in more individuals from underrepresented groups in your workforce, you’ll expand the “thought diversification”, but for those HR Pros in the trenches and sitting in conference rooms with executives behind closed doors, diversification of thought isn’t the issue being discussed.

So, I have some assumptions I want to lay out before I go any further:

1. Referred employees make the best hires. (Workforce studies frequently list employee referrals as the highest quality hires across all industries and positions)

2. ERPs (Employee Referral Programs) are the major tool used to get employee referrals by HR Pros.

3. A diverse workforce will perform better in most circumstances, then I homogeneous workforce will.

4. Diversity departments, if you’re lucky enough, or big enough, to have one in your organization, traditionally tend to do a weak job at “recruiting” diversity candidates (there more concerned about getting the Cinco De Mayo Taco Bar scheduled, etc.)

Now, keeping in mind the above assumptions, what do you think is the best way to recruit diversity candidates to your organization?

I’ve yet to find a company willing to go as far as to “Pay More” for a black engineer referral vs. a white engineer referral. Can you imagine how that would play out in your organization!?  But behind the scenes in HR Department across the world, this exact thing is happening in a number of ways.

First, what is your cost of hire for diverse candidates versus non-diverse candidates? Do you even measure that? Why not?  I’ll tell you why, is very hard to justify why you are paying two, three and even four times more for a diversity candidate, with the same skill sets, versus a non-diverse candidate in most technical and medical recruiting environments.  Second, how many diversity recruitment events do you go to versus non-specific diversity recruitment events?  In organizations who are really pushing diversification of workforce, I find that this figure is usually 2 to 1.

So, you will easily spend more resources of your organization to become more diversified, but you won’t reward your employees for helping you to reach your goals?  I find this somewhat ironic. You will pay Joe, one of your best engineers, $2000 for any referral, but you are unwilling to pay him $4000 for referring his black engineer friends from his former company.

Yet, you’ll go out and spend $50,000 attending diversity recruiting job fairs and events all over the country trying to get the same person.  When you know the best investment of your resources would be to put up a poster in your hallways saying “Wanted Black Engineers $4000 Reward!”.

Here’s why you don’t do this.

Most organizations do a terrible job at communicating the importance of having a diverse workforce, and that to get to an ideal state, sometimes it means the organization might have to hire a female, or an Asian, or an African American, or a Hispanic, over a similarly qualified white male to ensure the organization is reaching their highest potential.

Workgroup performance by diversity is easily measured and reported to employees, to demonstrate diversity successes, but we rarely do it, to help us explain why we do what we are doing in talent selection.  What do we need to do? Stop treating our employees like they won’t get it, start educating them beyond the politically correct version of Diversity and start educating them on the performance increases we get with diversity.  Then it might not seem so unheard of to pay more to an employee for referring a diverse candidate!

So, you take pride in your diversity hiring efforts, but you’re just unwilling to properly reward for it…