Category Archives: Staffing

Not Enough Cooks In The Kitchen!

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Last weekend I spent some time with a restaurant owner friend of mine.  He runs a great place, everyone loves it, but he’s having a problem.  They are having a hard time hiring cooks.  We can commiserate on this because of my background running HR at Applebee’s, he knows I understand his pain.

In the restaurant business you don’t just shut your doors when a cook doesn’t show up to work. You put on an apron and start cooking. Customers are coming, and they don’t care that some kid would rather get high, then cook their steak.  Welcome to the show!  Oh, you thought some upstanding educated professional was back in the kitchen cooking your $50 steak!? That’s cute.

I told my friend good luck, and we went on our way.

Then I read this from the Washington Post:

The shortage of able kitchen hands is affecting chefs in Chicago, where restaurateurs said they are receiving far fewer applications than in past years. “It’s gotten to the point where if good cooks come along, we’ll hire them even if we don’t have a position. Because we will have a position,” Paul Kahan, a local chef, told the Chicago Tribune last week.

It’s also an issue in New York, where skilled cooks are an increasingly rare commodity. “If I had a position open in the kitchen, I might have 12 résumés, call in three   or four to [try out] in the kitchen, and make a decision,” Alfred Portale, the chef and owner of Michelin-starred Manhattan restaurant Gotham Bar and Grill, told Fortune recently. “Now it’s the other way around; there’s one cook and 12 restaurants.”

And it extends to restaurants out West. Seattle is coping with the same dilemma. San Francisco, too.

Looks like it’s not a local hiring dilemma, but a national trend!

It’s not just cooks. All over the U.S. HR and TA pros are struggling to find people for low and semi-skilled jobs that want to work.  You know, the kind of people who will show up each day when their shift starts, for more than one day in a row! That is the new sought after skill in America! Just showing up for work.

So, why do we have a shortage of cooks?

  1. Many, many, many cook positions are filled by Mexican workers. Over the past five years the U.S. has seen a flat or negative growth of Mexican workers entering the U.S.
  2. We have entire generations that don’t cook and eat at home.  If you never learned how to make your own grilled cheese, there is a good bet you won’t apply for a cook position.
  3. The pay is lower than it probably should be (see #1 above). Restaurants have gotten away with paying low wages to cooks because many used illegal workers with shared or fake papers.  No one wants to pay $20 for a burger and fries.

Something interesting is going to happen, slowly. Prices will rise, because wages of cooks will rise to attract people to these jobs.  Menu prices will rise to meet the wage demand. Eventually that will drive prices to a point where many people will decide to cook and eat at home.  Restaurants will go out of business.

It’s the $15/hr fast food debate.  Do you want to pay $9.99 for a Happy Meal for your kid? No. Fewer happy meals sold equals fewer fast food jobs.

It’s all simple economics, not politics.  We make choices based on the perceived value we get.  If the perceived value is too low, we will make other choices.  Give it time, you’ll see.

The 1 Miracle That Can Make Your Corporate Recruiters Better Almost Instantly

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I’ve had 3 opportunities in my career to step into traditional corporate recruiting departments and make changes that would ‘turn’ these departments around so that the organization would see them as a positive producing department, where previously that had not been viewed as this.  As you can imagine there are numerous changes that can be made to do this.  You could go out and hire more talented recruiters.  You could redesign and launch a new employment brand.  You can redesign your processes.  You can launch a new career website.  Add in recruiter specific training.  Get hiring managers and leadership involved in ‘owning’ their talent in their individual departments.  All great stuff.  All things that I eventually did – all which take considerable time and resources!

When you are stepping into a new organization and taking over, those who hired you expect instant miracles.  Why?  Because that’s what you told them you could do when you interviewed.  One problem.  You told them this without truly knowing what you were going to find when you started opening up closet doors in the department and skeletons began falling out all over the place.  You didn’t realize your staff of recruiters were really just HR admins in disguise.  That your ATS was an advance spreadsheet, and nothing more.  Your hiring managers believed the only way to get talent was to wait for you to deliver it to them on a silver platter, just so they could say “I don’t like that kind – bring me another platter!”  You didn’t know your major vendor was the CEO’s cousin who had no clue and no sense of urgency – but was entitled all the same.

Doesn’t matter now – deliver the miracle!

There is really only one thing I know that works in recruiting.  Doesn’t matter if you’re an agency or corporate.  Doesn’t matter the industry.  Doesn’t matter the recruiting experience level you have on your staff.  It’s been the one miracle that in good times and bad has always sets recruiters apart – at all levels.  Activity.  Outgoing phone calls, number of candidates interviewed, number of resumes sent to hiring managers, etc.  Higher activity level = higher recruiting department satisfaction and results, 100% of the time.  It’s a simple miracle.

So – how do you do this tomorrow?

Step 1:  Instantly track the number of ‘outgoing’ phone calls made per recruiter.  If you don’t have technology to track this – develop a simple call sheet that tracks candidate name, phone number, position called for and result.  Track calls for 2 weeks. (outgoing calls only – keep it simple, establish a habit – great recruiters call candidates)

Step 2: On week 3 – set daily outgoing call goal 25% higher than the two week daily average.  (don’t let on you will do this on week 3 or you’ll have low numbers your first two weeks)

Step 3:  Hold those recruiters accountable who aren’t reaching their call goal.

You’ll hear every single excuse in the world – you have to stay strong.  “I have too many meetings” – tell them you are giving them permission to no longer attend those meetings.  “I have to much paperwork” – stop doing paperwork – that’s for after 5pm and on weekends (recruiting isn’t a 40 hr per week job). Only concentrate on calls.  Calls. Calls. Calls.

Miracle, delivered, almost instantly.

Want to hear some more?  Call me – I’ve got more miracles. Sackett.tim@hru-tech.com; 517-908-3156 or @TimSackett  – my company delivers staffing miracles every freaking day!

CareerBuilder Empower 15 Live Stream Wednesday Sept. 10th!

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Next week Wednesday, September 10th, CareerBuilder has asked me to Host their Live Stream of Empower 15!

That’s right, someone made the brilliant decision to put me on LIVE. Lights, camera, action!  To bring to you all the cool stuff happening at Empower!

The Live Stream will start at 8am CST and go all day until 5pm CST (that’s 9am for you East Coasters – and way too early for those on the left coast!).  My friend Laurie Ruettimann will be joining me to kick it off in the morning, then I’ll be bringing you many other great HR and Talent Pros/Celebs throughout the day. Click on the link above for Wednesday’s lineup of great presenters!

Click below to get to Live Stream feed:

Empower 15 Live Stream

What is Empower?

DISCOVER. ELEVATE. INSPIRE.

The act of connecting employers and job seekers to make meaningful matches has changed dramatically over the past 20 years. And new economic, digital, and social trends have introduced an entirely new set of challenges. We’re giving you a front row seat to share the journey as we look back and, more importantly, ahead to the next 20. Join CareerBuilder and 1000+ other leaders for the talent acquisition event of the year where we’ll identify opportunities to continue to move the industry forward and work together to make recruitment easier and more effective.

Empower is Talent Acquisition’s version of all those cool HR conferences your HR peers get to go to, but they aren’t really designed for true Talent Acquisition leaders!

Positivity: The New Red Flag in Hiring

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I’m trained as an HR pro to pick up on ‘red flags’ in interviewing, in employee behavior, potential turnover risks, etc. Sometimes those red flags are really obvious.  I tease my staff all the time, but missing time on Mondays and Fridays, unexcused time, is a red flag.  It says something about how you feel about work, that you want to extend your weekend. It’s subtle, but in my experience it doesn’t play out well.

My new red flag is Positivity.

First, I’ll admit to you that I’m a mostly positive person.  My normal gauge is set to “things will probably work out in the end”.  I try to be realistic, without thinking the sky is going to fall when something doesn’t go my way.  Life has been pretty good to me. My glass is over half full, and when it’s not, I believe I can find a way to fill it up.

What I don’t buy is the people who are so positive they seem to be telling themselves they’re positive.  I tend to believe if you’re positive, you don’t need to say you outlook is positive, people will hear it and see it in your daily interactions.  Those are the people you get drawn to. They are truly positive people who enjoy the life they’ve created for themselves.

There is another kind of positive person.  This is the person who needs to keep reminding themselves and anyone around them they’re positive. This positive scares me. This positive is a red flag for me.  This type of positive makes me believe you are actually fairly negative, but trying to turn yourself into positive.

Now, I don’t necessarily think that’s bad, someone wanting to change from negative to positive.  I applaud the effort. I also know that most people are hardwired to lean one way.  It’s your personality, and that’s really hard to change long term.

My friend, Kris Dunn, loves to ask applicants about what work experience in their life they enjoyed the most, and which one did they dislike the most. Each tell you something about the person.  A truly positive person will have a hard time finding a place they truly disliked, but they’ll speak a ton about what they really liked. A truly negative person will do the opposite. They’ll go on and on about what they dislike, but move on quickly with their answer about what they like.

Basically, you can fake positivity, and it’s common amongst candidates.  The problem is, you can’t fake it for long, and even if they can fake it, fake positivity can get down right annoying!

I think it’s important to remember that opposite of Positive Thinking isn’t Negative Thinking. It’s Possible Thinking. I want to hire people who are realistic about what is possible. Blind positivity doesn’t last and usually leads to a big fall.  I don’t need the drama in my work environment. Who would have ever thought that positivity would be a hiring red flag!

Blame the Search Firm for Your Crappy Hires

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It’s become common practice in high level NCAA Division Athletics to use retained search firms to hire Athletic Directors and Coaches.  Recently, the University of Minnesota Athletic Director resigned, before UM could terminate him for inappropriate activity, after being on the job for two years.  How did the University of Minnesota respond to this termination?  Well, they blamed the original search firm of course!

Both the University of Minnesota Twin Cities and UMD (each part of the state’s public University of Minnesota system) hired Atlanta-based Parker Executive Search to find athletic directors.

It’s easy to see why they chose Parker, as the firm has been profiled by ESPN as one of the most influential search firms in college athletics and has had Indiana, Kentucky, Notre Dame, Oregon and Northwestern as clients.

Parker’s searches in Minnesota resulted in the 2012 hiring of Teague, who resigned last week while facing reports of sexually harassing employees. It also brought Athletics Director Josh Berlo to UMD, where he is facing criticism for firing five-time national champion women’s hockey coach Shannon Miller.

One Gophers booster told the Pioneer Press he won’t give any more money to the university if it uses any search firm again.

How much blame should the search firm get for Teague’s hiring? That’s a question likely to come up when the University of Minnesota Twin Cities conducts an outside investigation into the case.

I get it.  If I paid $125K for a company to do a retained search, I would hope they would let me in on every single thing in the candidates background, and even stuff that wasn’t in his background but they found anyway! It seems like the search firm, in this case, missed that Teague, Minnesota’s ex-Athletic Director, has previous issues related to harassment.

I doubt highly they hid this information. One placement fee, no matter how big, is worth burning a client.  I’ve never met anyone in the search business who was willing to burn a client over one placement fee.  I’m not saying it doesn’t happen. I’m sure there are firms that have done it after they’ve made the decision they no longer care if they have a long term relationship with a client.

What I rarely see happen is that the organization takes responsibility for making the hiring decision. In this case, the University of Minnesota wanted to hire Teague, who had help VCU rise to a national basketball power.  They were hoping Teague could bring some of that magic to the twin cities.  My guess is, even if they new of the harassment issue, they still would have moved forward with the hire.

The reality is search firms don’t hire anyone.  You hire.  You make the final decision.  The best search firms will advise you on the candidate and the market, but none hold a gun to your head.  When that decision goes south, it has very little to do with the search firm, yet, and I see it constantly, organizations love to blame search firms for their bad hires!

What’s the morale to this story?  Never pay $125K for a search.  You will never feel like you got value for that cost!

There’s No Free Staffing Option

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I’ve gotten a chance to work both sides of the fence for an extended period of time in the Talent Acquisition/Recruiting/Staffing game. For ten years I ran corporate talent acquisition shops for some very large organizations.  One organization spent over $3M annually on staffing agency fees! Obviously, prior to me getting there!

I’ve spent almost fifeteen years on the agency side, sandwiched in between my corporate experience. What I’ve learned along the way is that there isn’t a “free” option when it comes to hiring great talent.

Frequently, I get asked from clients for discounts to my fees on the agency side.  I get that. When I was on the corporate side, I would never take an agency’s first offer.  Here’s the main problem with all of this:

Corporate talent acquisition pros don’t want any of it. They don’t your 20% direct fee, they don’t want your retained plan, they don’t want your RPO plan. What they want is Free. A free option.

Therein lies everything you need to know about staffing agencies and corporate talent acquisition.  One side wants free. One side needs to get paid.

The reality is, even staffing on your own on the corporate side isn’t free.  Corporate talent acquisition done right, has a ton of costs. Recruitment tools, automation, branding, job boards, applicant tracking, college strategy, recruiter training and hiring, etc. None of that is free.

All of this, though, should be screaming to the agency folks that something isn’t right.  What corporate talent acquisition pros are saying is “we don’t like the options we are getting from agencies”.  This should be of serious concern, because there are companies trying to design other options for corporate talent acquisition pros.  Options where they’ll feel like they are getting the value they want.

These options aren’t free, either, but they are less than all of the traditional options that 99% of staffing agencies are offering.

When I was on the corporate TA side of the desk, here was my decision matrix to when I would use a staffing agency. This matrix made me feel good about my decision to use an agency:

1. Does my team have the capacity to do this search? If Yes, why would I pay to have this done. If No, the cost if justifiable.

2. Does the agency offer me a recruitment expertise and/or pipeline I don’t have on my team?  See #1 for Yes and No options.

3. Is it financially feasible for me to add more capacity to my team, as compared to an agency option? This one took some more work. If I had a need for an agency to fill, let’s say, three positions and it was going to cost me $100K, well, obviously I could hire a pretty good recruiter for $100K. But, would I need that Recruiter in year 2, 3, etc.? Adding headcount isn’t a one time cost for an organization.

Ultimately, for me on the corporate side, it was almost always a capacity issue.  I had the expertise, but we had bubbles of work I needed extra support with.  Too often, I see corporate TA leaders upset over agency spend and it’s based on the fact they don’t have good recruiters on their team, yet there unwilling to change this fact. I’ll pay for additional short term capacity. I won’t pay for expertise I should have on my team everyday. That becomes my issue!

Corporate TA leaders become frustrated over agency spend because ultimately it’s a reflection on the team they have created.

 

The Most Important Question You’ll Ever Ask a Hiring Manager

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How are those hiring manager “intake” meetings going?

You know, those meetings you have with a hiring manager every single time they have an opening.  You sit down with your hiring manager, face to face, and ask them a page full of questions.  Why is this position open? What would make a candidate most successful in this role?  What color of skin would you like this candidate to have? Boobs or no boobs? Whoops! Scratch those last ones, we would never ask those…

The reality is Talent Pros really only have one question they need to ask hiring managers. That question is this:

“Do you trust that I can find the talent you need?”

Ultimately, this is all that really matters for your success.  If they trust you, they’ll give you all the information you need to be successful.  If they don’t trust you can find the talent they need, they tend to hold stuff back.

Yes, I know that doesn’t make sense, but that’s real world talent acquisition stuff! Welcome to corporate America, a lot of stuff doesn’t make sense!

Most hiring manager have no faith you’ll find them great talent.  They have this belief because so many bad Talent Pros before you failed them.  So many before you didn’t really go out and find the best talent, they just delivered whatever warm body came into the ATS.

I just come out and ask the question.  The first answer you’ll get from 99% of hiring manager is a weird, “Well, sure, I do.” If you really dig into this answer, you’ll get the true answer which 90% of the time is, “Hell no! Why would I?  Your department has really never gotten this right!”

Thank you! That’s what I really needed.  I needed to get that out in the open, so now we can really build trust, and make great things happen.  They’re mostly right. Talent Acquisition fails many of our hiring managers for a number of reasons. Right now, your hiring manager doesn’t need to hear those reasons, they need to hear why this time will be different.

Then, you have to live up to ‘different’! You have to be better.  You have to get it right. Getting it right earns trust.

Once they trust you, great things will happen. Earn that trust.

The New “Radio” Job Ads

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Have you listened to an actual radio station lately?

I’m guessing you probably haven’t. You see radio, as a media consumption, is down to 12% of your total consumption, from 19% in 2009.  One big change during that same period, is that a large number are switching to from 25% in 2009 to 55% today. Also, listening off various Apps on your smartphones, in your car, have increased to 35% today. In 2009, it was under 5%!

We are changing the way we consume music and talk programs.  Radio used to be a solid medium to advertise jobs. Especially, those jobs in the service sector, skilled trades, etc.  The advantage of job advertising on the radio was that the radio station had great data on their demographic of listeners. Age, location, gender, income, etc.  This meant you could select fairly accurately who was listening to your job message.

Today, over 140 Million people are listening to Pandora and Spotify.

No longer when entering an office building do you hear the local ‘easy listening’ station, with about 20 minutes of commercials per hour.  Now, you usually hear some version of internet radio, and usually that means Pandora or Spotify.

So, what does this mean for HR and Talent pros who still want to advertise their jobs on radio?

I think there is a huge opportunity, depending on your hiring demographic, to test using Apps like Pandora and Spotify to market your job openings.

Think about the advantages you could get using internet radio for job postings:

– They have similar demographics as traditional radio, plus you can get more targeted by location. Pandora and Spotify take user information to target local advertising, for unpaid subscribers.  Let’s say you have a major competitor in Lincoln Park, IL.  You want to advertise in just that market, and those users who self-identified to be in that market.

– The advertising model is based on impressions, so you can say I have a $100 per day budget, and only want it to run for 5 days. The ads will stop once he limit is hit. If it’s not hit, let’s say your advertising in a small market, the money comes back to you.  So, this type of advertising is fairly inexpensive, as compared to traditional radio and other formats.

– The audience is going to skew millennial and younger.  For those looking to hire in that demo, it’s not a guarantee, but the numbers don’t lie.

Truth be told I haven’t done this, but I would love to hear from someone who has tried this medium for job advertising.  What I know is that there is a huge audience, and almost no employers are advertising in this space.  That means one of two things: 1. It’s ripe for some great, cheap hiring; 2. It’s a total bust.  I don’t think it’s a total bust.  I think it’s just something people haven’t thought of, yet.

Let me know if you try it, and what your results are!

Working for Free – Contingent Search Model Changing

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A funny thing happens when the economy is good. Corporate Talent Acquisition pros believe that agency contingent recruiters should work their job openings like its the most important priority the recruiter has ever had.  There are a couple reasons for this:

1. This opening is the most important priority for the Corporate TA pro, so it should be yours.

2. When the economy was bad, you treated the Corporate TA pro like they were your number one priority.

Then the economy gets good, and the agency folks have choices and now as a Corporate TA pro you find out who your real agency recruiting friends are!  Those who will actually come through for you, when you call on them and tell them you have something urgent.

My Corporate TA friends are the ones who pay me.

Don’t take that wrong.  You see this is the game we all play.  You want me to work your opening, but you ‘really’ don’t want to pay me if you don’t have to.  I get it. You get it. It’s the world of contingency recruitment.  I spend most of my time just trying to truly determine who will pay me for the work I do.  Because most of the work I do is for free.

So, now that the economy is good, way too many Corporate TA pro have unreasonable expectations of their agency counterparts. If I’m working for free, mostly, I’m going to be more picky about who I work for free for.  If you have me work five openings, and you then fill all five on your own, I’m probably not working your ‘urgent’ number six. If you have me work three, and I fill one, I’m helping you out. It’s simple economics.

Something new is being added to the game. This happens when times are good for agency recruiters.  There are two types of recruiting on the agency side:

1. Contingent – see above. Basically, I work for free until I find you someone you want to hire, then you pay me.

2. Retained – You pay me my big fee up front, and I work until I find you the person you want to hire.

Traditionally, retained is really only used for executive search, but when talent is hard to come by, you’ll also see it used in the professional ranks.

Recently, I’ve been seeing a new hybrid model of search show up, called Retained Contingent.  Retained contingent is a mix of both models. It’s still a contingent search, but you’re paying me about 10-20% of the fee up front for me to prioritize your search to the top of the workload.

Let’s say you’re searching for an Engineering Manager for $100K, and signed a 25% fee agreement. The total fee upon placement is $25K. In the Retained Contingent model you would pay me $5K to start the search up front, then $20K upon placement guarantee. If I don’t find the person, after a contracted amount of time, the $5K is for my work, no other fee is owed.

This is a win-win for both the Corporate TA pro and the agency, but only if the Corporate TA pro is sure they want to pay for the search.  If that’s the case, I want the benefit of retained focus and prioritization, without the risk of paying the full fee up front and having the firm not come through with a successful hire.

I don’t want to take you cash and then fail. You’ll make sure everyone knows I failed.  But, I also have limited resources and want to focus those resources on the best clients. We both have skin in the game.  That creates a partnership. That creates success.

Just wait. You’ll see a lot more of this over the next five to ten years.  Corporate TA pros are getting smarter, and so are the agency pros.  In the end, both sides want value for their work.

The Jealous Girlfriend Interview Technique!

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About a year ago Forbes had an article, Top Executive Recruiters Agree There Are Only 3 True Job Interview Questions, that shared the “wisdom” of a handful of Executive  Recruiters on the only things that you should really have to ask a candidate.  There 3 questions where:

  1. Can you do the job?
  2. Will you love the job?
  3. Can we tolerate working with you?

Simple enough.  Straight to the point, and you can assume for the $75,000 you’re paying, this is probably the extent of their screening as well!

In my Recruiting/HR career it’s probably the single most often asked question I get:

“What are your best interview questions?”

Then, you get to hear their questions. About how Google has some really great ones. Even, how I heard once about a company that asked people if they were an animal which animal would they be? Or, if you only pick one vegetable to eat the rest of your life, would it be carrots?  It goes on, and on. Until you want to vomit!

The actual interview questions have very little impact in the success of the interview.

If you are interviewing anyone with some decent smarts, they are going to be able to ace your questions with little effort.  What is important in interviewing is what you allow the candidate to get away with.  I find that most recruiters and hiring managers to be way (I mean WAY!) to easy when it comes to questioning candidates.  See if this example sounds familiar:

Interviewer: “John, looks like you left your last next to last company in May, but didn’t start your current position until July. Can you explain that gap?”

John: “Sure, you know I was doing a great job and I didn’t see myself moving up in that company, so I wanted to go find somewhere I could move up the ladder.”

Bam! At this point, most interviewers move on to the next questions.  When clearly, John deflected, and someone needs to rip into some Gestapo interrogation tactics and find out what’s really going on.  But they don’t, it would be a conflict, he might think we are rude, and well, we’ll move on…

Follow-up questions to original answers during an interview is a skill in itself.  The only interview questions you ever need are the questions a Jealous Girlfriend asks when you come home on a Saturday morning around 3am.  Shoot, just hire Jealous Girlfriends as your interviewers! They’ll get to the bottom of a candidates background!

The hardest interview I ever had was with a woman that was eventually my boss, who was a former U.S. Army interrogator. It was exhausting! It was painful! It was Awesome! I actually lost my voice (after the 7th hour – True Story!).

She was the ultimate Jealous Girlfriend, in fact, I think she trains Jealous Girlfriends in her spare time.  There wasn’t an answer I could give her that she was satisfied with. She just kept at it, until I would slip and say something I really didn’t mean to. Once she smelled the blood, it was over.

The result? She hired the best talent (excluding me) in the entire organization by far!  Bad hired did not make it past here interviewing technique.

So, don’t worry about having the “best” interview questions. Really any will do. Just don’t accept the first answer you get!