Category Archives: The HR Rules

3 Steps to Getting Rid of an Overpaid Employee

Posted on by
1

One of the biggest issues we face as HR Pros is trying to get rid of our overpriced employees.  Let’s be real – we made our own bed with this issue!  We were the ones going to our ‘comp’ guy, going “No, we have to go over range, this talent is worth it!”  Now you’re living with an employee making $20K more than the rest of team and all hell is breaking loose!  To be fair, we aren’t the only ones who do this.  Pro sports are classic for overpaying talent, that when the person signs looks like a great deal, but by year 4 or 5 all of sudden you wonder how do we get rid of this stiff! Hello, A-Rod!   The Yankees overpay worse than any other pro sports team in history.  For those who have been following recent developments with the Yankees – they have a major overpay problem with Alex Rodriguez.  From CBS Sports:

“Rodriguez has five years and at least $114 million left on his deal and is recovering from a major hip injury that will cause him to miss a huge chunk of the 2013 season, if not all of it. He’s 37 years old and, while still productive when healthy, is clearly in the decline phase of his career. So obviously the Yankees would love to get out of this contract.

The only issue is … they likely have no shot at doing so.”

$114M – for a broken down, can’t hit his weight, third baseman!  Makes you feel better about your overpaid employees, right!?

Let’s assume your overpaid employee isn’t horrible, but has become just average.  Familiar? How do you get rid of an overpaid, high priced, average employee?  I’ve got a few ideas:

1. Buy Out/Severance/Job Eliminataion – These aren’t all the same – but can be used to help you with this issue. For those HR Pros who have never used these options – you’re missing out.  Let’s be clear, it costs money – but it also gives you legal protection and gets rid of a problem very quickly.  Don’t blow this option off – you would be shocked at what amounts of money an employee would accept to go away.  Start low in your negotiations! Make sure you work with legal to get the right paperwork drawn up to protect yourself against future litigation!

(I’ve been able to get middle management levels folks to go away for $25K!  Huge positive impact to the team, production, engagement, etc.  Best $25K I’ve ever spent)

2. Put them in a box – Most of our leadership teams suck at accountability – to get rid of an overpaid person you need to turn up the accountability to an uncomfortable level – this usually pushes them out the door. You can’t let off the gas – you really have to follow up on the accountability until the person bails.  This can be painful and loud – and usually isn’t the cleanest way to get rid of person – if they’re smart, they’ll know exactly what you’re doing and could cause further problems then your overpay issue! Ironically, most HR Pros use this technique, over all else.

3. The Breakup Conversation – I’ve also had some good success having the breakup conversation.  Face-to-face, nothing in writing, close the door and just get ‘real’.  “Tim – we need to talk. You’re making $20K more than the next highest person on the team, and you’re not delivering that level of compensation.  We’ve got to do something. That could be you leaving in some form – or, what do you think?”  I’ve been amazed what my overpaid workers have come up with in terms of possible solutions.  I’ve had people retire after these conversations. Put themselves into a tighter box then I ever would have created. Even offered up taking a pay cut because they love the company and the job – and realize ‘we’ made an error and it’s become a problem.  I’ll be honest – in my career – pay cuts rarely work out – be cautious using them – but breakup conversations can lead you to a solution!

The Importance of ‘Dear John’ Letters

Posted on by
1

Check out this great letter from Coach K to Michael Jordan, after Jordan told Coach K he was going to North Carolina:

Jordan letter

 

 

 

 

 

 

 

 

 

 

Coach K gets it.  Yeah, Jordan went to North Carolina, won a national championship and became the greatest basketball player of all time.  But Coach K gets it!

Coach K understands what over half of HR and Talent Pros don’t get – in recruiting top talent – you never burn a bridge.  I’m sure he was upset about losing MJ to UNC – but he never let on that he was.  He sent a very cordial letter, complimenting him and wishing him well.  How many of you do that when a candidate turns you down?  My guess is – not many.  Better yet, how many actually have these letters coming from the hiring manager that interviewed the person, hand signed?  BETTER YET, how many of you have these letters coming from the CEO of your company, hand signed?

The world is a small place and you’re going to be on for a long time.  MJ respects Coach K, because Coach K treated him with respect and always left the door open.

People make mistakes all the time.  Candidates take jobs thinking its going to be great, and some times it turns out to awful.  Many of those folks believe, since they turned you down, and her nothing after – you were pissed.  So, they’ll never reach back out to you and say – “Hey, give me a second chance – this current place sucks!”  Takes about 33 seconds to send this letter out – could have years worth of payback.

 

 

The Most Dangerous Word In Performance

Posted on by
Reply

What is the one thing you can count on a supervisor saying in 99% of all performance evaluations? Try.  It probably comes in the form of: “You can ‘try’ harder” or “Maybe you should ‘try’ to do…” or “Give this a ‘try’…” But that little 3 letter word – Try – is a very dangerous word.  Remember Yoda from Star Wars –

Fortune had a great article on the use of the word ‘try’ recently:

“Whether in a job interview, on a resume, or in the office, try simply shows a lack of belief, passion, commitment, and confidence — all the qualities you need to succeed in today’s tight job market. Grammarly’s contextual thesaurus has a whopping 66 different synonyms for try, yet none of them are as convincing as words like do, believe, act, tackle, accomplish, or succeed. While try might get you 10%, or even halfway there, employers are looking for strong problem solving skills and unwavering dedication.

I cringe when I hear, “I’ll give it a try,” because the phrase suggests failure. “I’ll do it” inspires confidence every time.”

When I coach supervisors on delivering performance feedback this is a concept I work hard on getting them to understand – the words you choose to use have great impact.  Also, the words they allow the employee to respond with, sets them up for future success or failure.  One thing I’ve always done with performance feedback is allow the employee to give me their performance objectives, instead of dictating what performance I expect.  How I coach the performance, though, is to frequently help in rewording their objectives with the words that is going to ensure they go after the performance they want – not to ‘try’ and get the performance they want.

This might seem a bit nit-picky to some – but using words the convey conviction of a goal do wonders for setting someone off on the right track to reaching that goal.  I can’t say it any better than the Yoda, Jedi Master, “Do, Or do not. There is no Try.”

To Be Honest, We Hate Analytics

Posted on by
4

Don’t kid yourself – you hate analytics.  It wouldn’t be politically correct to say that you hate analytics, so you won’t.  That’s why I’m here.

You hate analytics because using them in your organization increases accountability.

Increased accountability = Increased stress.

Increased stress = Increased job dissatisfaction.

Increased job dissatisfaction = Increased Turnover.

You see the cycle, right?

So, who likes Analytics?  Bosses. Why?  Because they like having increased accountability on you.  It makes them feel all strategic and shit.   When analytics are used against you like a weapon – they suck.  Too many organizations are analytics as a weapon to judge your performance.  Leadership justifies this because ultimately they are held accountable to the ultimate analytic – the bottom line.  So, they feel you should be held accountable to.  We would like analytics better if they weren’t used to bash us over the head.  If they were used to help make us better, to help us improve, to help us understand.

Harvard Business Review had a great post on this subject: The Real Reason Organizations Resist Analytics by Michael Schrage

The evolving marriage of big data to analytics increasingly leads to a phenomenon I’d describe as “accountability creep” — the technocratic counterpart to military “mission creep.” The more data organizations gather from more sources and algorithmically analyze, the more individuals, managers and executives become accountable for any unpleasant surprises and/or inefficiencies that emerge.

For example, an Asia-based supply chain manager can discover that the remarkably inexpensive subassembly he’s successfully procured typically leads to the most complex, time-consuming and expensive in-field repairs. Of course, engineering design and test should be held accountable, but more sophisticated data-driven analytics makes the cost-driven, compliance-oriented supply chain employee culpable, as well.

This helps explain why, when working with organizations implementing big data initiatives and/or analytics, I’ve observed the most serious obstacles tend to have less to do with real quantitative or technical competence than perceived professional vulnerability. The more managements learn about what analytics might mean, the more they fear that the business benefits may be overshadowed by the risk of weakness, dysfunction and incompetence exposed.

I recall a very technical business acronym I was taught in my Master’s program called: CYA.  Be very careful with your big data initiatives because many turn into CYA projects.  If I can show these analytics – it will show why this major issue doesn’t have anything to do with my department, but everything to do with another department.  Days To Fill reports are filled with CYA.  “It’s the hiring managers not getting back to us in a timely matter to set up interviews – this is why are Days to Fill is so high.”

Accountability sucks – when it is happening to you.  It’s great when you’re holding someone to it. Big Data might be the biggest weapon you have in your tool box – be very careful who you point it at.

 

How Does HR Think?

Posted on by
2

I’m not sure how HR thinks.  I know how I think, and from what people tell me, I don’t think like a ‘normal’ HR person.  One thing I really like, though, is to see how other pros think.  I learn a lot from how maybe an engineer addresses an issue versus say how a Designer would address the same issue.  I like to take aspects of how other professionals think and incorporate those thought processes into how I think about HR.  I think this helps me solve HR issues in ways that the business can grasp onto better.

I found a cool article recently on how Designers think.  Here are some of the ways Designers think:

– “Design is not about solving problems.  It’s about making people happy. And there are always so many personalities and ideas to consider. So you’re trying to simplify it to its fundamental structure.” 

– “You have to understand when the timing is right for dialogue, and when its time to move the limits. Designers arrive at a company to move its limits.”

– “Try to pare things down. Very few moves do a lot.”

– “Unoriginal, ugly and cheap. Revolutionary, gorgeous and luxurious. These do not have to be contradictions.”

– “The idea of innovation as a structured process has been taken to the extreme, where it is no longer a really useful or robust concept. You’ve got to go about letting people take sensible risks.”

– “…Pain is temporary. Suck is forever.”

In HR, I tend to believe that most HR pros don’t believe they work in a creative function.  In reality what you create in HR speaks volumes about the culture you’re shaping in your work environment.  If HR lacks creativity – your work environment is going to lack creativity.  The rule setters need to show the organization that from time to time, we need to break the rules to get us to the next level.  Sensibly, but rule breaking nonetheless.  Breaking the rules is like ‘kryptonite’ to HR Pros.  It goes against our very being.  Most HR Pros pride themselves on being ‘the one’ part of the organization that actually follows the rules. “If we don’t do it, Tim, who will?”

I don’t know.  What I know is I like how designers think.  It seems like a thought process that opens my mind and gets me thinking about how I can make things better.  It’s a thought process that challenges me to rethink what I’m doing and why.  That seems like a good thing. I don’t want to suck.  I hear suck is forever.

 

 

I’ll Retire When I’m Dead

Posted on by
2

In case you missed it last week, America’s CEOs want to change the social security eligibility age from 65 to 70.  Of course this isn’t shocking and this argument has been building for decades as a possible solution to the social security funding problem as so many baby boomers start to collect.  From Bloomberg:

Raising the Medicare age to 70, from today’s 65, would keep the oldest workers, who generally have the greatest health costs, on private insurance for an additional five years. The shift would hit states that cover more low-income seniors through Medicaid, and it would raise premiums for younger people who buy health insurance through state exchanges, as more people with higher health costs enter the risk pool.

This would save Medicare money—a good thing for taxpayers. But it would effectively increase health costs for the country overall, including employers. “For many seniors, their costs will go up. For employers in the aggregate, their costs will go up,” says Juliette Cubanski, associate director for Medicare policy at the nonprofit Kaiser Family Foundation. That’s because Medicare pays doctors less for their services than private insurers do…

Workers might not relish spending those extra years on the job to keep their health insurance. But it’s the cost of living longer, as Gary Loveman, Business Roundtable member and chief executive officer of Caesars Entertainment (CZR), illustrated with a personal anecdote at a press conference:

“My father, who was an employee of AT&T (T) for more than 40 years, retired at age 61 and lived to be 95. He was a 34-year recipient of Social Security benefits—something that near his death, he noted to me with great pride that he had been on both [AT&T’s] payroll and the federal government’s payroll for much longer than anyone could possibly have anticipated. That’s, of course, generally speaking, good news,” Loveman said. “But it’s a problem the country simply can’t afford over a sustained period of time.”

I’ve witnessed this personally.  I have a grandparent who spent 30 years with good old General Motors – retired at the ripe old age of 51 and collected pension and eventually social security benefits for more years than they actually paid into the system.  That is why our ‘traditional’ way of retirement in America is broke.  The system was not created to have people collect social security for 15-20-25+ years.  When it was created, social security was a plan that the founders probably figured individuals would be on for 10 years or less.  While I don’t want to have to work until I’m 70 – for me and most Americans this is a foregone conclusion.

The new reality we face is 70 years old today, is not 70 years old of 20-30 years ago.  My Dad turned 70 this past year and still works in professional job and really doesn’t want to retire.  He’s reached a point in his career where he knows just about everything in his business and he has 30+ years of great relationships to leverage, and he has no fear about getting ‘fired’ – he’s 70!  Work can now be fun.

I have friends who still talk about wanting to retire at 55 and I tend to just shake my head and let them have their dream.  They really have no idea the amount of money it will take to live from 55 to 90 or so.  You’re talking millions of dollars in retirement investments – not 1 million – multiple millions to live another 30+ years.  I’m realistic.  I figure I’ll get to retire the day after I die.  At least I hope I get to.

You Never Truly Leave Your Favorite Job

Posted on by
4

I wasn’t a huge fan of high school.  I didn’t hate it – I just always felt my time was not the four years of high school – or at least I hoped it wasn’t! As you can imagine, being 5’7″, with above average intelligence and a ginger isn’t normally the recipe for high popularity in an American high school environment.  I wasn’t great at any sport, but participated in a few.  I was involved in theater and had fun with that.  I had friends, but none that I call a close friend now.  I know people who won’t ever admit, but you can tell about how they talk about it, that high school was the best years of their life.  It’s sad really – four years – all happening so early.  They haven’t left high school, even though they graduated long ago.

Everyone has their own ‘high school’, that place where for that one moment in time – everything seemed to fit together just right.  Maybe it was college for you, or your first job, or your current job or maybe you are still searching.   If you’re lucky that ‘time’ lasted for a while, for some, it might only last a few weeks or days.   Right now, in your mind, you’re picturing your time (if you’ve had it!).  As I’m writing this, I’m picturing mine.

In June 2001 I started my first ‘real’ HR job with a company in Omaha, NE called Pamida.  Our HR Department had a great group of men and women – people I’m still in contact with today. The one reason that my position at Pamida is ‘my time’ is because of 3 guys I had lunch with almost every day over a two year period.  Luke, Bob and Ray.  The four of us worked within 50 feet of each other and interacted throughout the day, but each day we would go off to some fast food restaurant for lunch and laugh.  Laugh like your sides hurt, like you were going to pass out, laugh.  Every stress we had in life, in our job, etc.  would get made fun of in some way or another.  It was the best therapy session you could ever have.  It made coming to work, fun.

Now, don’t get me wrong.  I’ve had other great positions, with other great companies and have made great relationships (heck, I talk about my time at Applebees like we somehow created burgers and beer during my time there).  But if I had to force rank which job I’ve had that just felt the most comfortable – it would be that.  Comfortable is a good word for it.  I’ve had higher level jobs that have paid me more and challenged me more – but none where I was just completely…comfortable.  The best part of having ‘that time’ is it will always be ‘that time’ in my mind.  I know I could never go back.  Lunch with Luke, Bob and Ray would never be like it was.  It as a moment in time, and it was great.

Some people will find this exercise depressing.  Those are the people still stuck in ‘high school’.  I find it refreshing.  I’ve enjoyed certain parts of every single position I’ve ever had.  I’ve made great personal and professional relationships with people in every position.  I’ve been apart of ‘that time’ for other people in other companies, and I cherish those times as well. I like having my time, because it helps me as a leader want ‘that time’ for those I lead.  It’s like a goal.  I want their time, under my guidance, to be ‘that time’! That would be awesome.

What has been your favorite job?

Ex-employers, Please Send Gifts!

Posted on by
1

Dear Applebees,

I use to work for you in Human Resources.  It was a great 3 1/2 years, I loved working for you.  I was surrounded by the most talented group of Human Resource, Operations and Training professionals I’ve ever been around.  I tell this story often, but you know when you go into a large business meeting with like 20-40 people all sitting in a large square or circle of tables?  And you look around and you instantly see a couple of slugs, people who shouldn’t even be working for the company, let alone be in this meeting.  The first time I traveled to Applebee’s headquarters for a large operations meetings and I walked into the entire group of HR professionals that the Applebee’s leadership team had assembled, I looked around the room and couldn’t find one of those people!  Then it hit me – I’m that person – I’m the slug!  It was the coolest feeling to be challenged like that – to be surrounded by talented, caring people all working to make a company great.

I’ve moved on to bigger roles and a bunch of new experiences, but I still share so many things I learned while I was with you to those HR Pros I’m connected to.  I still talk so highly of the brand and the people that make your brand what it is today.  You’ve got some really great people still working for you, even after that crappy pancake place bought you.  You’ve lost some great ones as well – I could point out a number and where they are currently working and what their numbers are – who knows, they might want to come back.  You knows, maybe I want to come back.

Tell you what.  Why don’t you send me something. Just a little something to remind me of what I’m missing – a gift card, a free appetizer coupon, a carside to go Frisbee – you could even have someone drop off lunch to my office — grilled chicken oriental roll-up .  You see, I might want to come back, but no one has ever asked.  No letters, no phone calls, no tweets or Facebook messages.  I know I left you and that probably didn’t feel very good, but I think we can all be adults about this.  I had some growing up to do, I needed to see if those fries on the other side of the street really were hotter.   You can’t blame a guy for that.

So, who knows, we were so close once – and there’s nothing to say we can’t be close again,

Tim

****************************

Just in case you are very lost at this point – check this out from Yahoo! Also, Marissa Mayer if you want to send me stuff, I’ll even think about coming over to Yahoo! Who knows – I like gifts!

In case you’re still lost: some of the best recruits you’ll ever get, are people who’ve already worked for you and were good, but you’ve never asked them to come back.

 

The A+ Player Employee

Posted on by
Reply

I know a ton of HR/Talent Pros are sick of hearing employees broken down into A, B and C players.  It seems played out and dated.  But I like it.  I’m simple and the ABC player scenario is easy for me to describe, in very quick manner, how someone is performing.  I’ll give you, though, there are problems.  Once you have your “A” players, how do you tell which is the best one?  Can’t a “C” player be close to moving up to “B”, but another “C” be close to getting terminated?  The problem is, ABC doesn’t accurately enough describe individuals, it just describes groups of employees – a range of performance at any given snapshot in time.

I was having a conversation about this the other day with a peer and was describing a person’s performance who worked for me – an “A” player.  As I was describing this person, I said, “but you know what, they are better than an “A” player – they’re an “A+” player”!   Oh, boy, here we go.  What the heck is an A+ player?!

Traits of your A+ Players:

– All the talent and performance of your traditional “A” player, but with:

A.  Work like they’re a “B” player hungry to get to “A” status

B.  Lack the ego some “A” players tend to catch upon gaining “A” status

C.   Don’t believe they’ve reached “A” status, even when they have.

A+ players are special.  As soon as you read the traits you had an individual come immediately to mind.  That person who is a great performer, but also someone you wish all of your employees would emulate.  A person who is a joy to work with, and gets things done.  Maybe not the best at any single task – but the person you want to do every task.  A+ players aren’t culture changers, they are the culture.  Not everyone has an A+ player, and I don’t believe you can create one.  You usually have to hire them – and they ascend to A+ level very quickly.

When people tell me they only hire “A” players I tend to judge them as not having any idea about HR/Recruiting/Life.  You don’t hire “A” players.  You hire talent you believe is capable of becoming an “A” player within your organization.   Because they were an “A” player at another organization, has very little impact on their performance level within your organization – unless you somehow magically cloned their previous environment, leadership and resources and put them back into that same place.  It’s true that past performance is predictive of future performance – but only when you put that talent into a very similar circumstance.

That’s why it’s really hard to find A+ players, because you don’t even know when you hire someone if they will reach that level.  You might have a feeling – like – “oh boy, we’ve got someone special coming in”, but you don’t know, until you know.  All I really know is when you have one, do what you have to keep them around, because you’ll never know if you’ll get another one.

 

Employee Retention is Easy

Posted on by
Reply

What is the one thing that employees hate more than anything else?

Change.

Bar none – ‘change’ would rank as the most disliked thing that a company can do to employees.  I know, I know – all of you reading this are really progressive – you ‘love’ change, you embrace ‘change’, you’re ‘change’ advocates.  Yeah, right.  The people who say they ’embrace’ change are the same folks who go into a deep depression when their favorite TV show is cancelled.  Change for most people sucks.  People like what they know.  They like knowing that they’ll stop at the same place each morning to pick up their morning coffee and Joe behind the counter will know they like it with low fat milk and one sugar.  They like knowing that the doctor they’ve gone to since they started with you right out of college, is in your insurance plan, and they can keep going to that doctor.  They like knowing that their check will always be deposited into their bank account on the first and third Friday of each month. No. Matter. What.

That is the secret of Employee Retention.

People – your employees – don’t actually want to leave your employment.  Starting a new job, in a new location, working a new boss, etc. – Sucks!  It’s major change!  Your employees actually want to stay with you – they just don’t want their job and the company to suck.  So – you Change!  And change causes them to what?  Ugh…this is hard.

So, how do you keep your employees, without changing?

Most change fails because of the communication.  This is especially true in so many HR shops – we tend to over communicate and over complicate minor changes, with major communications!   We are implementing a new payroll system that will save us time and money, but in doing so checks will now be deposited on the second and fourth Friday of each month.  OMG!  Our employees are going to freak out – they are use to the first and third Friday!  This. Is. A. Major. Change.  We need a committee.  We need posters and wallet cards.  We need changes to our policies.  We need to have a six month transition period – where we will communicate this over and over.  We need…Stop.

What you need is a simple message out to the troops.  Hey all – payroll is getting a great new system.  We’ll have less errors, save the company a bunch of money.  We’re happy we could get them some really good technology for their function.  Checks will now come out on the second and fourth Friday of each month. Plan accordingly.  Let your supervisor know if you need some help in this transition. This will go live next pay period.  Bam!

People don’t like change.  So, don’t maximize change that doesn’t need to be maximized!   If you only communicated truly “Big” change and it “Big” change happens rarely – it doesn’t seem like change is happening all the time.  Your employees WANT to stay with you.  They HATE change.  Stop making them feel like change is happening all the time – just so you feel like you have some IMPORTANT to do.

Employee Retention is Easy, simply because deep down, your employees really don’t want to leave.