Category Archives: The HR Rules

The Best Thing HR Can Ever Do For Employees

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By random circumstance I’ve had three of the most boring HRish types of conversations in the past month about 401K!  Can you imagine me talking about 401K?  It’s so, well, it just regular old HR talk!  One conversation was with our banking partner (Shoutout to PNC, 33 year business relationship with them and I value that greatly!), two others with trench HR peers, but all three conversations were about the exact same thing — Auto Enrolling employees into 401K.

This is actually a really polarizing topic in HR, I’ve found!  It comes down to two schools of thought:

1. HR Pros who believe auto enrolling is helping their employees

2. HR Pros who believe they are infringing on the privacy of their employees by auto enrolling their employees

I’m in camp #1!  In fact, I’ll go on record in saying that auto enrolling your employees into 401K is the single greatest gift you can give to your employees over their career with your company.  Bam!  I said it.

Let me give you a few facts about employees:

1. The majority of your employees that are under 30 have no idea they should be saving for retirement – when it’s the most important time to do so.

2. The majority of your employees at any age – don’t save enough for retirement.

3. The majority of your employees think a magical fairy will come along at age 65 and pay for them to live the next 25-30 years.

These are all actually true!

Most people don’t think about retirement and the amount of money it will take to retire until they get to be around 50.  At that point, it’s too late and they are then on a path to be a senior citizen greeter at Walmart.  HR can change all of this.  HR can ensure that when your employees get to be around retirement age, at least they might have some hope of sitting around enjoying not working!  It’s easy. It’s called Auto Enroll – check it out.

If it’s so good why aren’t all companies doing this?

It’s America, right?  We hate being forced to do anything.  What!? You mean your going to force me to sign up for 401K and save for my future! How dare you!  This isn’t Russia!

Want to take 401K Auto Enrollment one great step further!?  Auto Enroll your employees and have 3% taken out of their pay automatically as well.  Just auto enrolling really does nothing but making it easy for people to start saving, but you can actually auto enroll and start them out with an automatic deduction of your choosing. The employee at anytime can choose not to participate and stop the deduction, but very, very few ever will!

Can you imagine the difference you could make in your employees life by forcing helping them start saving for retirement?  For many of your employees, it would be the best thing HR ever did for them, period.

HR You’re the GM of your Company!

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I’m a huge baseball fan – specifically a Detroit Tiger fan – and I was reminded last week by the Tigers how important talent is to your organization and how HR could be at the center of it all.  In professional sports, like Major League Baseball, they call the main person in charge a General Manager (GM).  He’s the person behind the scenes (kind of like HR) making deals to keep their club competitive during the season or looking into the future.  It’s a very strategic role.  While they are not managing or coaching players on a daily basis, or playing the game – ultimately they are making decisions that have huge impact to the team you watch play the game.  Doesn’t that sound like a role you would love to have in HR?

The Tigers made some major moves last week to a team that is already one of the best in the majors.  Why would a GM do such a thing?  It would be like you going into your sales department, who is having record breaking sales, and moving on of your top sales people out and bring in someone new.  Doesn’t seem like it makes sense – if it’s not broke, why break it! The Tigers were facing a couple of things – 1. the pending suspension of their starting shortstop; 2. the need to bolster their pitching staff for a run at the world series.  They also have some long term needs – an aging short stop, so they need someone for the future.  I know, I know – boring sports stuff – but it shows how HR should be thinking in a similar matter.  How do we keep our organization running smoothly, and how do we make it better in the future – those two things don’t necessarily go together.

It’s HR’s job to figure all of this out.  It’s actually easier as an HR Pro to come into a broken company.  At that point you know what has to be done, and you start doing it.  If you come into a great company the question is how do you make it better, and potentially any change you make might make it worse.  Harder yet, is how do you make that organization better, when it’s already doing great?  Your the GM what do you do?  Sit on your hands and ride out the run?  Look to the future and start getting the next generation ready?  It’s the heart of people strategy and the single coolest thing we get to do in HR!

The Tigers are one of the top teams in the MLB for a simple reason – they have one of the best GM’s, Dave Dombrowski.  He constantly is looking for ways to make his team better, but also not mortgaging the future away be giving away their developing talent. It’s a difficult balance.  It’s the same in your role in HR.  Your organization needs you to find ways to make them better right now, and keep them great in the future – sometimes that means making unpopular changes.  Sometimes that means you’ll be helping influence your leaders to make courageous decisions.  Decisions you not only have to support, but champion.  A good GM helps the fans of their organization see the bigger picture – half marketing person, half prophet. HR needs to do the same.  Our employees look to leadership and HR during major decisions and changes to see the reactions.  They analyze every word, every facial expression and read into everything. Great GM’s/HR Pros know how to paint a bright future and a realistic positive outlook presence.  Are you ready to be the GM of your organization?

I’m Going to the 2013 HR Tech Conference!

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If you read this blog you know that I’ve attended the SHRM National Conference for years.  There is also one other conference – The HR Technology Conference – that I haven’t missed for the last 4 years, and now that my friend, Steve ‘The Call Him Mr. HR Tech’ Boese, is running the show – I doubt highly I’ll miss again!   I love attending The HR Tech conference for a number of reasons that are different from why I like attending SHRM – but I think both should be on the list of every serious HR Pro.  If you can only attend one – might I recommend every other year between the two.

Here’s why I attend The HR Tech Conference:

 1. HR Technology Smarts! (Duh! Right.  But listen, great HR Tech knowledge is the one way Trench HR Pros can separate themselves from the pack!  Want to move far in your HR Career – this is a must have competency for the now and for the future.  HR Tech does something better than most in that most of the speakers I’ve seen are like you and me – they actually work in HR.)

2. The Crowd!  (The HR Tech Conference pulls in a completely different crowd than SHRM.  I love the SHRM crowd – I feel one with the Trench HR Pros who go.  HR Tech is filled with HR decision makers!  You know the ones who can say yes to buying hundreds of thousands of dollars, if not millions, of cool HR tools.  Plus, some really smart HR pros who think about HR differently.)

3. The HR Vendors. (Any company in the HR space trying to make a name for themselves is there.  I first met HireVue at HR Tech 3 years ago in some back little booth with nobody around – and thought – ‘Holy shit! This is the future of interviewing’ – they a bit bigger now!  At HR Tech you actually get to see the future of HR before anyone else.  It’s like going to the annual Car Shows and seeing the concept vehicles!  How we work in HR will be different 5 years from now – want to know how – attend and find out!)

The 2013 HR Technology Conference will also be the last for the ‘Godfather of HR Tech’, Bill Kutik (that’s Bill in the picture above!), as he passes on the torch to aforementioned, Steve Boese.  That is one final reason I’m attending.  Bill has had a huge impact on HR Technology in his tenure and that should be celebrated.

Here’s one reason you should attend – the gang at HR Tech (because I blog a bunch and they think I’m influential – jikes on them!) has given me a special discount code ‘SACKETT’ – which saves you $500 of the price of the conference.  Sign up HERE!

Besides the $500 – I’ll let you buy me a drink or take me to a cool Las Vegas show!  Your choice!

 

Inclusion – As Defined By A Conservative White Guy

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Before I go off – let me say I’m 100% sure Pro Diversity and Inclusion camps don’t have me in mind to be their spokesperson.  You see I’m white. I’m middle-aged. I’m a male.  I tend to lean conservative in my political views, moderately.  So, if you’re really into Diversity and Inclusion – I can totally see why you’ll immediately discount everything I’m about to say.  If I was a women – a black woman – a liberal black woman – a liberal black woman in a wheelchair  – well then – I’d expect you’d listen pretty closely. Right? Don’t kid yourself.

If that’s the case – you’re as closed minded as you believe I am.

I’m completely sick and tired of hearing about Diversity and Inclusion in the way it is being advocated for by my HR brothers and sisters.  It literally makes me sick to my stomach.  Here’s why – with every program, every communication you espouse about your organization being ‘Inclusive’ – what you’re really saying is –

“ABC Company values Inclusion as long as you’re view points are the same view points that we share.”

This isn’t Inclusion!  This is ‘Exclusion’ to the definition!  But you’re selling it as Inclusion.  Am I insane!? (Don’t answer that – it was rhetorical!) Or did someone change what Inclusion really means?

You see – by my middle aged white conservative viewpoint – Inclusion means we should accept everyone – all view points, all colors, all shapes and sizes.  But when ‘I’ the middle aged white conservative guy wants to share ‘my’ beliefs – your organization doesn’t want to hear those.  What you want to hear is that I really have liberal beliefs, that I support abortion, that I think marijuana is harmless, that tattoos are super cool, that everyone should be working from home, that all people have the ability to do all jobs, that I’m not religious – and if I am it’s a religion that you totally support, and that if my religious beliefs somehow don’t support your liberal view of inclusion that I’ll never speak those views publicly and make those employees who do have different views that I uncomfortable – although it’s fine if they throw their views in my face, since that is what ‘Inclusion’ is all about…

The funny thing is – I would define myself as a fiscal conservative, socially liberal and I don’t go to church but was raised around many religions- so I can adapt and fit into almost anywhere.  But since I’m white and middle aged and voted Republican – I can’t fit into most of your Inclusion demographics – which is again is funny to me – since Inclusion is defined as:

“the act of including or the state of being included”

No where in the dictionary did the definition include: “if you believe the same things we believe ‘inclusion’ to mean” or “if you some form of minority”.  The definition is short and clear – Inclusion means everyone is included – even Me – middle aged conservative white guy!  My HR peers are forgetting the “Inclusive” part of “Inclusion”.  I’m reminded of this daily, not because of my own demographic makeup – but I have a 70 year old father still in the work force and he continues to share stories with me about how his 50 years of experience is no longer relative.  That somehow 50 years of experience is becoming worthless.  That on a daily basis – he feels his organization is less inclusive, and more exclusive – because the only people who know anything are the young.  Again – Inclusive-Exclusion at its finest.

But – I understand while you’ll discount this – I’m not liberal – I’m not a minority – the only disability I have is horrible grammar.  I don’t count.  Maybe we can call this ‘new’ Inclusion – “Inexclusion” – being inclusive to those that we share our same ideas, beliefs and opinions.  What do you think?

The Cost of Bad Hires

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If there is one constant in HR and Recruiting – it is the fact that no one will ever agree on how much a bad hire costs an organization!  Never!  It doesn’t matter how much time you put into coming up with some algorithm, how much research to back up your numbers – it’s still going to be 90% subjective/soft numbers at best.  This is the main reason executives in our organizations think the majority of HR/Talent Pros in the world don’t get business!   We come to them with stuff like this:

“We need to reduce turnover because of Engineer who leaves us, costs the company $7,345,876.23!”

Then you go through a 73 slide PowerPoint deck showing how you came up with the calculations all the way down the parking meter expense during the interview, and when you’re done – no one believes you’re even close to an actual number.

The gang over at National Business Research Institute put together a pretty good infographic proving my point – take a look:

NBRI - The Cost of a Bad Hire Infographic

97%+ of the ‘lost’ cost is from “Training” and “Productivity Loss” – those are very subjective measures in almost all organizations.  What that says is – ‘Oh, Jimmy isn’t working out – fire him – and because he wasn’t working out we lost ‘X’ percent of productivity over any other possible replacement (which in itself is a whole other leap)’.  And, we lost 100% of training we put into Jimmy because he is now not here.  Which again is subjective, since most training isn’t one-on-one, and resources used to train are almost always not used just on one person, etc.

So, here’s a better way to figure out the cost of a bad hire:

1. Ask your head of finance or accounting what they think it costs? “Ballpark it for me?”  $10K? Sounds great! We’ll use $10K.

2. Use $10K as your cost of bad hires.

Your reality – HR’s Reality – is it really doesn’t matter what the number is – only that the powers that be in your organization all agree on the number. Stop wasting your time trying to come up with a better number – just come up with a number that those signing the check agree is probably legit.

 

The 4 Letter Word We Never Use In HR

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I’m not sure about your HR experience but in my HR experience I’ve used every 4 letter word known to man – except one.  That word is:

Luck.

This came to mind recently when I was speaking to a really close HR friend of mine who happens to work at a really great company.  The kind of company who wins all of those HR and Recruiting awards and accolades for doing ‘great’ HR work.  For being the industry leaders in HR and Talent.  For being the company ‘we’ should all follow and emulate.  My friend is funny, I like hanging out with funny people, and she told me the only reason they’ve won any of those awards is luck!  Not skill, not hard work, not better HR/Recruiting talent – it is luck.  Granted, their team had to do some work after the luck to take advantage of timing – but the Luck is the reason they got to ‘greatness’.

She says that they were your average to below average company – nothing special – when a perfect storm of timing hit them.  They had a product that became popular and they went virtually overnight from being a nobody to a somebody.  “We were the same company, but now everyone wanted to know how and what we were doing in HR and Recruiting!  Internally, we laugh about it – we weren’t doing anything new or different – but being asked to accept awards and come speak.  To hear professionals all of sudden think your something special is a pretty cool feeling!  Everyone should experience it, but it makes me sad because I know HR pros who are hell of lot more talented than I working at crappy companies doing much more than we are in HR to turn their companies around – and they’ll never get awards and no one wants to hear them speak – and quite frankly they do HR better than we do!  We got lucky…”

In HR, and probably most parts of our organization, we never want to give Luck credit for anything.  It diminishes us as professionals, and diminishes the profession.  It can’t be LUCK that is making us ‘better’ it’s our skill!   We didn’t get lucky by hiring that designer who after 5 years just had inspiration and got our company noticed, our selection process picked that person. We didn’t get lucky by winning that harassment lawsuit, it was our training.  Luck is a very bad work to use in the corporate world!  Can you imagine going into your CEO when she asks “So, how did you guys lower our turnover by 25% in the past 12 months?”, and you go “Luck”!  But how many of ‘us’ had these conversations in the past few years when we saw our turnover plummet because of the recession, and our employees having no other job choices – go into our executives and talk about our ‘processes’, our ‘engagement programs’, our ‘programs to reduce turnover’ – when in reality you could have done nothing and turnover was going to plummet.  Luck, was on our side.

I like to give Luck credit.  I’ve been very lucky in my career – and I’m always willing to give it credit.  I think luck has more to do with success than people want to give it credit for.  Sure, once luck comes your way, you better have the skill and motivation to take advantage of your situation – but luck is behind so many great pros.  I still believe in hard work and skill will take you far – but hard work, skill and luck – will take you farther!   That word Luck is real tricky.

People As Revenue Drivers

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Is everyone in your company valuable?

Your CEO will say “Yes” publicly, but privately we all know the deal – some employees are more valuable than others.  That’s life, that’s why we all don’t make the same salary.  Some skills are more valuable than others.

Do you measure the value of your employees in terms of revenue?

Most companies don’t.  Why?  It puts too much reality in the face of your employees.  It’s like drunk uncle Charlie at Christmas, no one talks about him, but everyone is keenly aware how many he’s had and when it’s time to start cutting him off.

What would happen in your company if you put together an algorithm to measure value in revenue and compensated your employees based on who are the ‘true’ revenue drivers of your company?

Hard question to answer.  You would probably see a number of things. You’d see none sales executives making a hell of a lot less, that’s for sure!  You would see individuals who had a direct impact to driving revenue be in a much higher influential position within your organization.  You would see HR begin to support areas they are not supporting right now, or not supporting as much as they should!  Like?  Like, sales training and motivation.  Like, a performance management system that didn’t lack accountability and movement out of low performers. Like, compensation models that weren’t designed to keep the masses ‘satisfied’.  Just to name a few.

I’ve seen companies begin to look at these numbers. Simply, they’ll take their total revenue divided by headcount to really just have some numbers to start playing with, when positions are filled in a timely basis.  If we can assume, in a perfect world, that ‘all’ employees have an impact to revenue, that means every single day you have an open position within your organization, at every level, you are losing revenue.  Talent Acquisition/HR is losing the company money because it can’t keep up with turnover or growth.  That’s very simplified, but the reality we face.

Too few Talent and HR Pros don’t view their jobs in that context – ‘loss of revenue’.  They have excuses reasons why they can’t fill those positions – the list is endless.  When I see organizations with hundreds and thousands of open jobs – I start calculating in my mind the millions of dollars their failed HR shops are costing their companies and stakeholders.  It’s a very sobering way to look at the HR function – # of Open Positions * Days = Loss of Revenue.  If you can come up with that number – it makes the business case to upgrade your HR shop extremely easy.  If you can’t come up with that number – I wonder how many positions you are hiring that don’t drive revenue and costing your company in unneeded expense?

I wonder how much revenue you are costing your organization, today?

HR Lady in Topeka: You’re Meaningless

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Take a look at this map depicting how big California’s population is as it relates to the rest of the United States:

Map

Each colored section represents roughly 38 Million people.  Want to know why so much focus in HR (heck, most things in the US) is spent on what California is doing?  It’s because California would be the 33rd largest ‘Country’ in the world if we allowed them to be their own country!  Want to know why your voice at SHRM is never heard?  Take a look at the map.

Every voice is important as long as it comes with 38 Million votes.  Sometimes it’s hard for us to understand why certain things happen in the U.S., especially all my HR brothers and sisters in the Midwest, until you take a look at population concentrations.  Then it becomes painfully clear.  No single state has as much influence on HR policy in this country than California.  Which potentially has big problems down the road – as many California ‘ideals’ about workplace laws and practices, might not match those in the South, Midwest, East and/or Northeast.  It’s one thing I said my entire HR career – I’ll work anywhere for the right job – except California! You want to see bad HR policy run a muck at its finest…

Don’t hate the HR Pros in California – they’re just playing the game – and paying $1 Million dollars for a 1200 sq. foot home. But, hey, it’s sunny!

What can you do about it?  Move.

 

Are You A Big Deal?

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I have a pin in my office I picked up a couple of years ago at the SHRM National Conference from the Baudville booth (no this isn’t a paid post! But I love their company!), it says:

“I’m Kind Of A Big Deal”

I thought it was funny – it’s been stuck to the board behind my desk for over 2 years now.   I like it because it reminds me daily – I’m not a big deal – far from it.  In fact it makes me laugh when someone thinks I’m a big deal because I’m the President of a company, or because I write a blog (you know anyone can do this, right!?) or that at one point in my kid’s life they believed that I use to be Batman, but stopped to be a Dad.   I’m not a big deal.

Here’s the thing about being a Big Deal.  If you truly are a ‘Big Deal’ you don’t act like a ‘Big Deal’ – if you’re a wannabe ‘Big Deal’ then you certainly try and come across like a ‘Big Deal’.  Do you follow me?  Apparently getting an executive HR job in corporate America makes you a wannabe ‘Big Deal’ – or that might just be how certain HR executives like to treat almost anyone they come into contact with.  You might think I would have to worry about writing something like this – but I don’t – wannabe ‘Big Deals’ don’t read HR blogs.  Wannabe Big Deals read their own press clippings – which are usually those articles in the monthly employee newsletter, or local shoppers guide – because they’re a big deal.

I’ve never really understood the ‘Big Deal’ phenomenon.  When I was on the corporate side of the desk I would get bugged by numerous calls from vendors and hiring managers and community groups – all wanting a piece of your time.  I get it, it gets frustrating. Being a Big Deal has those draw backs – people wanting your time.  Being a Big Deal, though, doesn’t give you a license to be an asshole.  Asshole Big Deal is not the kind of Big Deal you want to be.  Treating people like they are a small deal, does not make a Big Deal any bigger, it makes the Big Deal smaller.

I have people reach out to me frequently because of all the writing I do – I respond to each one as if I was responding to a coworker or friend.  If I can’t help, then I will try and find someone who can.  If I can help, I will.  If they want me to sell their product – I will tell them how that works – I’m a really good salesperson if you pay me – I tend to be a really bad sales person if you’re asking me to do your job for free.  At no point do I become a Big Deal – because I’m not.

But I have a blog which allows me to write about ‘Big Deals’ – I guess that’s something.  I might have to reach out and ask Baudville if they’ll send me some of those pins so that when I run into ‘Big Deals’ I can make sure to send them one – just so everyone is clear on what who they are…

 

Profiling Needy

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Last week I wrote a post about how money can buy happiness – and decided to do a ‘Pay-It-Forward’ exercise with my team – this is from that original post:

“Tomorrow morning I’m handing each one of my employees a $100 bill and asking them to go out into the world at some point their day and give it away – randomly – or not randomly – to someone other than themselves.  $100 isn’t a giant amount for my staff – but I’m sure it will have a big meaning to someone else – I think some of the people on my team will feel good about helping someone out – about surprising them and making their day/week/month.   My hope is they’ll come back with a smile and a story.  My hope is they’ll feel a little better about their day.  My hope is they’ll feel happy.  My hope is – money can buy happiness.”

So, this went down – a stack of $100 bills and we all went off to find who we thought needed that $100 the most.  First, I want to share some learning from this activity:

  • I gave very few rules – one was that they had to ‘give’ the money away that day, by midnight – almost everyone wished they had more time.
  • Apparently when you go to give out money – you do a lot of stalking! You want to make sure the receiver deserves it so you follow them around for like 10 minutes which tells you all you need to know about a person!
  • When given the chance to help – it’s hard to find someone to help! In any random day you see all kinds of people to help – someone hands you cash and says ‘Go Help’ and they all disappear…or do they!?  It seems when you actually have the resources to help – you do more ‘Profiling’ and become much more selective about who is actually needy! I say this with all positive intent – my team wanted to help out the ‘most’ deserving person – and you find out it’s hard to tell degrees of deserving apart!
  • In this exercise many on my team set very high expectations for the event of giving – reality is you probably don’t change someone’s life with $100 – but you surprise a lot of people!
  • Some people on the receiving end – are very cynical! (We actually had people say: “So, what do I have to do for this”; “Do I have to fill out a survey”; “What church are you from”, etc.  Just take the damn money! I was trying to be nice!  Others are very gracious.
  • You can find out a ton about what is important to your team, by listening to how and what they wanted to help others!

The Stories:

We had plenty of hugs, some crying, some cheers and a whole bunch of smiles!   We had people help out animals, babies, old people, young people, poor people, families, teens, schools, bartenders, servers and entrepreneurs.  I had one team member who wanted to share our experience and asked the person he gave his $100 to keep $25 and pass the rest on with the same instructions – 4 total people getting a nice smile in their day.  I had many team members stalk local grocery stores wanting to help others pay for their groceries – to make their week a little easier  – these stories were the funniest hearing how they stalked the aisles and ‘profiled’ the neediness of the individuals.   We heard from teammates who seemed to have a hard time giving the money away at every turn – some people, it would seem, are to proud to accept a simple gift of help (not something you see everyday in today’s world).

One big learning my team took away from this was that quite possibly – it would have been more rewarding if it was their own personal money – and not the companies money (I said I be willing to take it out of their check! 😉 ) But many decided the experience was so rewarding they wanted to do it on their own – and share the experience with their families – the Pay It Forward principle at it’s best.

I think I learned the most – about myself.  In the end I gave my money to a young Latino who had just started up his own business.  It’s tough to start a business in any climate – to be a young minority in Michigan, it might be even harder.  He captured my heart – his will, his enthusiasm, his naive confidence that it could only be successful!  I went looking to help someone who couldn’t help themselves and found myself supporting someone who decided, against all odds, to help himself.  I was drawn to support that.  I’m not sure what that says about me – but the experience made me ‘happy’ and made me feel a connection to my community that I didn’t feel before.  I’ll do this again.  Like my teammates at work – I’ll use my own money – I’ll involve my kids – I’ll try to hear more stories.

The money invested in this was the best investment in my company that I’ve made in a very long time.  Please steal this idea – it doesn’t have to be $100 bills – it can be $5, $10, whatever – you’ll be better for it!