Category Archives: The HR Rules

The Top 5 Predictors of Employee Turnover

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Quantum Workplace recently released a study they put together on the predictors of employee turnover. Employee turnover is becoming a huge issue as the unemployment rate falls, which is expected. As your employees have more options, they’re more likely to leave.

I’ve always been a fan of Quantum’s research but this one seemed a little light. Here are their five predictors:

  1. Lack of job satisfaction.
  2. Individual needs unmet (health, wellbeing, balance)
  3. Poor team dynamics (Basically they hate working with the people they work with, or the team hates them, either way, they’ll be leaving)
  4. Misalignment (this is a hiring fit issue – you hired the wrong person for the job. Could be culture, skill set, etc.)
  5. Unlikely to stay (when an employee indicates they want to leave, most likely they will leave. DUH! This was actually #5! How can this be a ‘real’ indicator of turnover?!)

Okay, I’ll give them the first four reasons. Of course, those are all real reasons someone will leave. Are they the top 4? Depends on your environment. Number five is just flat out silly! “Hey, when someone tells you they’re about to leave, that’s a predictor they’re going to leave your employment.”

Really!? When I tell someone I’m hungry, guess what? That’s a predictor I’m hungry! Probably could have come up with a better number five! But, check out the study, they also give some tips and insight on how control turnover.

What are the real Turnover Predictors?  Here are my Top 5:

#1 – My boss is an asshole.

#2 – I hate what I’m doing, so I’m unwilling to put up with any B.S.

#3 – I oversold myself and I will most likely fail, so I’m leaving for a new position before you fire me, so it will look like this was my position.

#4 – I’m a bit crazy (or a lot bit crazy) and my co-workers hate me, so I need to find new co-workers to creep out.

#5 – I’m telling you I’m leaving! (Ha! Just kidding!)

#5 – You’re underpaying me for what I’m doing and we both know you’re underpaying me.

Bad bosses and not paying market will kill your retention of great talent faster than anything! The crazy piece of this is I always find that organizations clearly know about both of these issues.

If you ask an organization who the worst managers are they almost always align with the highest turnover by department, location, etc. The same thing works with those being underpaid in your organization.

People will take off if the market is clearly paying more and your organization is just average. The worst part of this is most organizations will then overpay to get back average or less talent when their good talent leaves. The market always wins. Always.

 

 

 

 

The 5 Skills I Honed From Other Jobs That Have Served Me Well in my HR Career

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Believe it or not, I didn’t go to college thinking, “Oh boy! I can’t wait to work in HR!” And there’s a pretty decent chance you didn’t either.

Eventually, if you’re like me, you got some official HR education under your belt. But a lot of the skills you use every day are skills you probably didn’t learn for the first time in an HR class. You learned them before all that—at home, or at some earlier job, right?

Here’s how it went for me:

My undergrad degree was in elementary education. Back then, my goal in life was to teach your kids how to finger paint and blow up stuff in science class. At the time it seemed like the best gig on the planet. Kids are easy to make laugh and I got my summers off. That all seemed pretty awesome. Plus, being a dude in elementary education, meant it was usually me and like 30 female teachers in the school. I wasn’t the best looking guy, so I liked those odds!

After doing a little teaching, I moved into sales and recruiting for a while. I’m a mile wide and inch deep, as they say, so I was able to carry on a conversation about just about anything. So, those two careers worked really well, because it’s pretty much just getting people to trust you and then talk them into something where they’ll never trust you again!

Then, to my good fortune, I sort of fell into HR. When I was in recruiting, one of my clients was an HR leader for General Motors. He took a liking to me and I thought he had the best job on the planet, so he encouraged me to get my master’s in HR and he would help me get a real HR gig.

When I got my first job in HR, what I found was that all of the skills I learned being a teacher, a sales pro, and a recruiter were all skills I that really helped me in HR. Here’s five in particular that have come in handy.

Being Confident: Turns out elementary age school kids can smell fear like a pack of wild dogs! When you step into a classroom and you lack confidence these little monsters will attack! So I had to learn very quickly as a teacher that even if I didn’t really need to know anything about what I was trying to teach, everything would be okay as long as I controlled the room with confidence.

Similarly, in HR, people will question you constantly, unless you can portray similar confidence in your abilities. And compared to a pack of eight-year-olds, they’re pretty tame by comparison!

A Good Attitude:  When I got into HR people kept telling me, “Hey, you’re not like every other HR person I know!” What they were saying was, you’re always positive, most HR pros come across negative. (Which I don’t think is fair.) My first job out of college was as an agency recruiter. You better have a great attitude in that job, or you’ll fail for sure!

Being Proactive: A lot of HR folks see their jobs as being firefighters. In other words, they wait for problems, and then try to solve them. When I got into HR, I decided I didn’t want to think that way. I wanted to be proactive. Nothing was ever good enough, we needed to make it better. Everything was broken because I just broke it, so we could make it better. I found as a recruiter early in my career the engineering hiring managers I worked with had thoughts like this and responded well when I came at them with ideas in the same mindset.

Being Humble: How can you be confident and humble? It’s hard, but you can do it. As a teacher, you have to do what you say, or your kids will never let you forget. Their memory is a like an elephant’s! The best sales pros are also very humble in a way you feel connected with them, that makes them relatable. The best HR pros are reliably humble. You can count on them and admire their willingness to put the organization’s needs in front of their own.

Being Persuasive: As a teacher, I had to ‘sell’ ideas to kids thousands of times per week. As a recruiter, I had to sell jobs to candidates all day, every day. And having the ability to sell ideas and projects sets great HR pros apart from average HR pros.

Why were these skills important for me to learn? They all help get the tools and technology I needed to be a great HR Pro!  These skills help make me build a story around how we are going to get better and eventually become world-class. I want those that I support and those who support me to truly believe the only choice we have to get better is to take Tim’s advice and go get that technology solution!

(P.S. If you want more ideas on how to convince your boss to give you the budget for cool new stuff, download this eBook I wrote.) —

Anyway, that’s how it went for me. How about you? What skills did you never learn in HR-school have been the most important to you? Please share in the comments below.

(Oh, and if you’d like to read more interesting posts on how to bring more of the soft skills you learned outside HR to your job, check out this awesome blog post right now:

6 Tips on Creating a More Empathetic Leave of Absence Process,  by my friend, the excellent Dawn Burke, VP of People for Daxko!

Why Hasn’t Employee Referral Automation Caught on? #SHRMTalent

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I spoke at SHRM Talent this week. One of the best corporate recruiting conferences around. Many people don’t believe me when I tell them, but the content, speakers, and audience are really engaging.

TA Tech companies and vendors haven’t caught on yet to the new SHRM Talent. Most corporate TA pros I spoke to might not have million dollar budgets to spend, but every one of them had decisions making over tens and hundreds of thousands of TA budget dollars!

It’s becoming one of the favorite conferences because the audience of corporate TA pros and leaders are very open to wanting to learn and get better. Their questions are genuine and the truly want to learn how to improve recruiting and talent attraction in their organizations.

One topic that I bring up during my sessions as the most under-utilized TA technologies on the planet is employee referral automation. Jobvite created the space, others followed, like RolePoint, Zao, Gooodjob, etc. Still, main stream corporate TA tech in mass aren’t using employee referral automation. It’s one of the great mysteries in the TA space for me!

When you ask corporate TA pros and leaders what their top source for talent is, employee referrals will always come in the top 3. When you ask what is the highest quality of hires by source, employee referrals are almost always number one! When you ask how much money have you invested in increasing employee referrals, it’s almost always $0!

So, help me out, what am I missing?!

The SHRM Talent audience told me I wasn’t missing anything, they just simply didn’t know this technology was available to them! Jobvite was in the expo hall, but mainly they were selling ATS, not employee referral automation (huge miss, but I know ATS margins are bigger than employee referral automation!). 97% of my audience weren’t using this tech, but almost all had an interest in learning more.

It’s really a zero-budget buy for most companies! If you use this type of technology you can basically get rid of your referral bonus program and your numbers will still go up on employee referrals. So, there’s the money you need to buy the tech that will put your employee referral program on steroids!

Truly, the bonuses per referral are not needed! You will have to actually begin recognizing those who do refer in your company, but almost all employees will refer people to your organization without a monetary gain! Also, increasing bonuses does little to actually increase the number of referrals you get.

So, why isn’t the vast majority using this tech?

First, they aren’t being sold this technology. Most corporate TA pros and leaders buy because of what is being sold to them, not necessarily what they need.

Second, I’m guessing the companies that sell this tech are for the most part fairly weak at marketing because it seems like a pretty easy sell to the groups I have in front of me!

Third, most corporate TA pros and leaders just have no idea this tech is even on the market for them, and if they do, they believe it’s too expensive to purchase.

They’ll spend a million dollars on LinkedIn and Indeed, but not $50,000 on technology that gives them more hires of their highest quality source?! There’s a major disconnect here on both sides of the market, which means there’s a giant opportunity for a company with a great brand with great tech that can make it simple for corporate TA leaders.

 

 

Trump Can’t Stop Immigrant Hiring!

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Before Trump was hired, err, voted in as President. I was asked to respond to this question:

What impact do you think Trump will have on immigrant hiring? 

My response was probably a bit more positive at that point, pre-Trump than it is now, but I still remain bullish on immigrant hiring. Why? Because it’s what America actually wants! I still believe that any President wants what is best for America. How they get there might be drastically different, but Trump is very similar to many Presidents we have.

Even his recent Executive Order to “Buy American, Hire American” (My grandparents who retired from GM would love this, BTW!) has little if any impact on actual H1-B hiring. H1-B hiring is broken, and random, and needs major overall, everyone can agree on that! Not hiring immigrants is just ignorant and uninformed.

Trump is easily swayed by high public opinion. He cares about what people think of him. No, really! He actually does, probably more than any other President we’ve ever had. What he doesn’t care about is crazy folks yelling on the fringes. He cares about being ‘popular’. American businesses need immigrant workers. If he gives this to them, he’ll be popular with people he views as peers in many ways.

CareerBuilder released a study today showing 33% of American companies plan on hiring immigrant workers, which is virtually unchanged from this time last year. Also, the American public doesn’t view immigrant hiring as a challenge to their livelihood. A whopping 90% feel like immigrant hiring has no impact on their career possibilities. That’s a giant number!

If you put all the psychology and data together, I think we’ll get to a place in America and the hiring of immigrants that makes more sense than what we have now. A lottery system? That’s what we pin our hopes on for American companies!? No one in business thinks this system is good. Trump is all about, well, that changes daily, but let’s say he’s a little more consistent on what American businesses want.

I can foresee, for good or bad I’m not sure, a tiered system of immigrant hiring. The Visa system really has already created this. Professional workers get preference over service level, unskilled immigrant workers. I can see this widening as this is what Trump voters are really worried about. They aren’t worried about the Software Engineer or Doctor coming into America, they’re worried about that cook at Applebee’s, the immigrant on the manufacturing line, etc.

We know the reality, most American workers don’t want those jobs anyway, but they feel that having an immigrant take those jobs is somehow holding them back. The real issue is American companies offshoring high paid manufacturing jobs, not highly skilled professionals coming into the states. Again, the CareerBuilder study backs up this assertion, “I’m not worried about an immigrant taking my job” because immigrants don’t take normal American jobs, they take the jobs on the fringes – high-end and low-end.

The Single Best Incentive You Can Offer Millennials!

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The world is millennial crazy. If you read this blog you know I think about 99% of the millennial stuff is pure B.S. (we were all young once, it’s mostly great, but sometimes sucks, buy a helmet!), but every once in a while I find something that really hits home.

Student debt is the real deal!

I’ve gotten up close in personal with this. I have two kids in college who are just starting down this debt path. I also have a brother who is a millennial who gets punched in the gut each month he has to make his mortgage-sized student loan payment! Great white collar, professional career, well paid, can’t even think about buying a house. That sucks!

Take a look at his chart:

So, if you truly want to attract great millennial talent you need to do a couple of things:

1. Offer as a sign-on to pay off their student debt.

2. Offer home buying, mortgage assistance.

Why? Turns out employees who own a home, stay around a lot longer, are more productive, and I work for a company that cares enough about me to help me with my student loans and to buy a house, I’m probably a bit more engaged as well!

Here’s the other dirty little secret we know in HR. Let’s say you have a program that pays off student loan debt for employees. With those agreements, you usually have an amount per year payoff (I.E., We pay off $30K, you give us three years of service, or pay us back the money, or something along those lines).

Very few employees leave you after they’ve been employed with an organization for three years. Three years is that tipping point where you decide you’re all in, or all out. So, your job as an HR leader is to get them past three years! Okay, every organization has their own tenure tipping point, but on average most are around three years. Go find yours!

One other item from the chart that sticks out like a sore thumb? No college degree means you’ll more than likely never own a home. That sucks! Guess what, we all have people in our organization without college degrees. These folks need our help with major financial situations, like buying a home, more than any of our employees.

We should be able to figure this out as well. What would stop an employer from offering home buying assistance, for years of service, to their employees? Nothing. But we don’t do it because we see ‘those’ employees as easily replaceable. So, why put in the extra effort?

Employees are our most valuable asset, well, unless, you know, you only make $15 per hour, then you’re just an asset, not really that valuable. Isn’t that what we’re really saying?

Long, story, short: Help your employees buy homes. You’ll never regret it.

 

The real value of A.I. is in HR, not Recruiting!

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What if you could catch and stop sexual harassment in the workplace before it got started? What about other types of violence, embezzlement, etc.? What if you could determine when disengagement was starting with an employee and address it immediately?

All those would be pretty powerful advantages to HR and leadership, don’t you think!?

Google is beginning to use A.I. and machine learning to find objectional content on the internet. Now, the main reason for this is a little less moral than it sounds. Google was losing advertisers because many ads they were paying for were showing up on content that was not something they would want to be associated with their brand.

Seems like most solutions to problems happen because of money…

Recently, in HR, we’ve seen some really high-profile cases of harassment come to light with Uber, Tesla, etc. These cases have had a major impact to both the consumer brand and especially to the employer brand of these organizations. While those of us who work in HR understand this is far too often occurrence, it seems like little gets done to stop it.

Say hello to my little friend!

Why couldn’t an artificial intelligence technology tell me when some creepy employee is sending inappropriate things to other coworkers, customers, vendors, etc.? What about when an employee uses threatening language to intimidate another employee? Wouldn’t you want to know about that? I think Mary just told Jennifer she’s ‘done’ and wants ‘out’ and she needs to get her resume together.

Would love to know that, so I can find out how to talk Mary off the ledge!

Say hello to Big Brother!

Yikes, right!? But, this is probably closer to reality than we realize and it will probably actually help our work environments a ton! Our employees communicate in a number of ways: email (primarily), messaging, voice, various tech platforms we use to do our daily work, etc. Almost all of which have unstructured data that A.I. could analyze and make predictions.

Some of those predictions could help you as an organization reduce risk. Tim seems to be coming very close to crossing a line with Mary, maybe we should give him a little reminder about our policy on harassment in the workplace. Bam! A nice, neat, little piece of content automatically hits Tim’s inbox and a message gets sent to his boss to stop by and remind Tim about what’s appropriate behavior in the workplace.

Some might help the organization retain their talent. There’s already predictive analytic solutions in play that predict employee turnover, add in machine learning, and A.I. will begin to show you employee who might turn before they’ve even thought of turning!

This might seem all futuristic, but the technology is really already here. Eventually, someone will launch a solution that does all of the stuff mentioned above, I’m quite certain someone already has this in development. It will only take one company to put it in place and the dominos will fall.

What you get paid to do at work is owned by your employer. We’ve all known this for a long time. What we never realized was that eventually, technology would actually hold us to not only the work but the behaviors as well!

Would you want to work in an environment where every move you made was measured by A.I.? I’m guessing not, but I’m also guessing it won’t be a choice!

Can I be Totally Honest?

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“Can I be completely honest with you?” is a phrase usually followed by some sh*t you don’t want to hear.  We talk about this concept a bunch in HR.  We need to tell our employees the truth about their performance.  We work to coach managers of people on how to deliver this message appropriately.  We develop complete training sessions and bring in ‘professional’ communicators to help us out on the exact phraseology we want to use.  All so we can be ‘honest’ with our employees.

Can I be completely honest with you?

No one wants you to be honest with them.

Employees want you to tell them this:

1. We like having you work here.

2. You’re doing a good job.

3.  You are better than most of the other employees we have.

4. We see great things coming from your development, and you’re on target for promotion.

5. Here is your annual increase.

Now, that might actually be ‘honest’ feedback for about 5% of your employees.  That means you will be saying a different version of honest to the other 95% that won’t like you being completely honest.

That is why talent management is really hard.  No piece of software will help you with this one fact.  Most people don’t like honest.  The cool part of this is that most managers don’t like to be honest. It’s uncomfortable. It causes conflict.  Most people aren’t comfortable telling someone else that they have some issues that need to be addressed, and most people don’t take that feedback appropriately.  You tell an employee they have ‘room for improvement’ and they instantly believe you told them they suck and they’re about to be fired.

So, as managers, we aren’t completely honest.  We tend to work around the truth.  The truth is we all have things we need to get better at, and it sucks to hear it out loud.  If someone tells you they welcome this feedback, they’re lying to you and themselves.  Those are usually the people who lose it the most when they are told the truth.  People who tell you they want honest feedback will believe you’re going to tell them ‘honestly’ they’re a rock star.  When you say something less than ‘rock star’ they implode.

So, what’s the honest solution to this?

Say nothing.  Set really good metrics. Metrics that show if a person is performing or not.  Make sure everyone understands those metrics.  Then, when the employee wants feedback, set down the metrics in front of them, and shut up.  Don’t be the first to talk.  The employee will give you some honest feedback if you wait.  Which will open the door to agree or disagree? Otherwise, you’re just working on subjective.  Subjective and honest don’t go well together.

But, you knew that. I really like having you stop by and read this.  You do a great job at your job. You’re certainly better than all those other readers who stop by and read this.  I’m sure you’re on your way up!

What if you could predict all of your Turnover? #UltiConnect @UltimateHCM

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Out at Ultimate Software’s Conference, this week and one of the cool features that Ultimate has within UltiPro is Retention Predictor. Ultimate has done a really good job at going out and buying some great data analytics companies and implementing that tech and talent into their organization.

So, what’s Retention Prediction? 

The concept is that if you analyze enough of your employee’s data points you’ll see trends that show if someone is highly likely to leave your organization as a voluntary term. As an organization, we really want and need to know data this to help retain our best performers.

UltiPro delivers a ‘score’ of each of your employees showing if someone is a flight risk based on their level of performance, so that you can filter, if you want, by high performers to low performers. The notion being, you definitely want to ‘save’ your high performers.

So, how do you save an employee that shows up as a High Risk? 

UltiPro will then deliver to the manager of the employee at risk specific “Leadership Actions”. These actions are recommendations of things the manager can do to help retain this employee. Currently, UltiPro has over 50 actions built into the system, and you can build in your own actions if you want for specific things you might want to do in your organization.

Does this really work? 

I spoke with multiple Ultimate Software customers who raved about how this one feature has literally changed their entire culture! One great example is Gregg Paulk, an executive at Anderson Center for Autism in New York.

Anderson had high turnover of their support staff, and also had an issue of lack of quality leadership training. Before they began using UltiPro’s Retention Predictor they had 30% turnover. In the two years since turning on the prediction feature, they’ve lowered their turnover to 15%! That’s giant! That’s real money that can now be used in other ways to better their organization and increase student care.

Anderson also saw higher engagement with their managers because they were now being able to deliver each manager specific actions to help them retain their staff, and ultimately help them become better managers of their team.

Paulk said one of the challenges in implementing anything like this is always the potential of false positives. One of your employees comes up a high flight risk, but in reality, they’re not. Yes, this can happen and will happen.

He said the key for them was to get their managers to understand how data prediction works. Yes, we’ll have a few false positives, but the majority of the data will be highly accurate and the percentage that is correct is so high, you can’t ignore what the predictions are telling your team.

What I really like about this feature is it puts HR into an immediate strategic position within the organization. It helps to make your entire team proactive and stop reacting to turnover as it happens. Your organization can finally become proactive in developing your team and leaders, which will naturally just help you drive a more dynamic culture.

What’s next? 

Ultimate Software is not just sitting on this, their data team is off the charts brilliant and they’re already working on their next generation product called “Perception” that will add in even more unstructured data into the algorithm and make these predictions more accurate, faster.

Check it out. I was super impressed by the accuaracy and real-life outcomes of this. It’s definitely a game changer for organizations.

Every Moment Matters! #UltiConnect @UltimateHCM

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So, I’m out at the Ultimate Software Conference this week and they had one of the most unique keynotes, Will Smith! Yeah, that Will Smith! Fresh Prince, I Am Legend, Hancock, Men In Black, Bad Boy himself!

At HR Conferences you don’t normally get big time Hollywood. You usually get a dude who’s really good looking, who wrote a book, telling motivational stories. The HR ladies tend to like those types. Well, they really liked Will! I really liked Will!

For starters, Will Smith is an entertainer. He immediately grabbed the audience and didn’t let go. He knows how to control and audience, tell great stories, be funny, and hit on big themes that make you think and leave you feeling motivated. That’s what a great keynote can do.

My favorite story he told was about his father dying. His father was told he had three months to live and he ended up living about six months. Will said after they got to three months every single moment felt like it really could be the last moment.

Because of this, hellos became special, goodbyes tended to linger longer, embraces were more special. It went on like that for another three months, and it made Will realize that all moments with those that you love and care about, should be moments like this because we don’t know if that will be the last moment.

On the last day of his dad’s life, Will was in LA and his dad was back in Philly. Will’s dad called him on Facetime and told him he thought this was it, that this was going to be his last day. Since he was going through this, it wasn’t a shock, but he stayed on the phone with him for a while.

Will said they went about fifteen minutes without saying anything to each other, just staring at each other, just spending this time together in the only way they could at that moment. Will’s sister was with her father in Philly and eventually broke the silence and said, “Well, dad, do you have anything you want to say to Will?”

His response was awesome and it brought down the house in classic Will Smith fashion:

My dad said, “Shit, anything I haven’t told this motherfucker isn’t going to make a difference now!”

He died that night. The crowd laughed. Will laughed. At the story, not at his dad dying!

The crowd laughed. Will laughed. At the story, not at his dad dying!

Most of us won’t be as lucky as Will to know you have that time and also in that time realize the importance of those moments. Our loved ones will die today, tomorrow, next week, and we won’t have any idea that it’s coming. We live with this reality.

We also live with a reality that we don’t have to let these moments go by. We can choose to not let moments go by and let people know how much we value them and care about them. For me, that was the real message Will was sharing.

You’ll have a bunch of moments today with people you care about. Try not to miss them!

Who Knew the World’s Best HR Technology Talks Happened in Cleveland!?

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That’s right kids! I’m coming to Believeland!

Wednesday, April 12th, from 4-6pm, I’ll be speaking at Cleveland SHRM’s – HR Technology SIG.

This will be a great night of learning and fun. It’s awesome that the HR and TA community leaders in Cleveland are putting this on, I can’t tell you how forward thinking that is for any city around the world, to the HR and TA pros and leaders in a great position to be successful! I follow my friend and HR technology guru, Steve Boese, who came out in February to speak at SIG!

The event will be held at Great Lakes Science Center in Cleveland, a great venue, and you will receive HRCI and SHRM credit for attending.

What’s the talk?

“See What’s Next! Be What’s Next! The Future of HR, TA, and Technology” 

Where I’ll present on where I see the future of HR and TA going over the next few years from a practical perspective of “what is the stuff you might actually do in your own shops!” I’ll also highlight a ton of tools that are new to the market and things you might want to take a look at, plus talk about some of the most innovative things happening in HR and TA, and if those are things you can do yourself!

If you attend this event, we’ve got 2 extra tickets (GREAT SEATS!) for that night to see Lebron James and the Cleveland Cavaliers play their last regular season home game with Me! Okay, you might not want to sit next to me, I tend to yell at the referees, a lot! But, if you do, I’ll buy you drink or popcorn and we can take selfies and try to get Lebron in on it!

It’s only $25 bucks to register for Cleveland SHRM members, $40 for non-members, and Students and Transitioning folks can get in for $15! Food and open bar at the event, so come on over and I’ll buy you a drink! Thanks to the great folks at Willory for sponsoring and taking me to see Lebron! (it’ll be my first time seeing him play live, I’m kind of excited!)

REGISTER FOR THE EVENT HERE!

Hope to see you in Cleveland! (boy, you don’t say often!)