Category Archives: The Rules

Teens Feel Speaking In Class is Unreasonable & Discriminatory. What do you think?

Posted on by
7

A recent article in The Atlantic brought up is seemingly troubling subject. Teens are voicing their opinion that being forced to speak up in classes is discriminatory:

“in the past few years, students have started calling out in-class presentations as discriminatory to those with anxiety, demanding that teachers offer alternative options. This week, a tweet posted by a 15-year-old high-school student declaring “Stop forcing students to present in front of the class and give them a choice not to” garnered more than 130,000 retweets and nearly half a million likes. A similar sentiment tweeted in January also racked up thousands of likes and retweets. And teachers are listening.” 

Hmmm. I’ve got some thoughts…

I was out at LinkedIn’s Talent Connect recruiting conference this past week. Great content, engaged recruiting pros and leaders, and a lot of great data being shared. One of those data points shared by CEO Jeff Weiner was the largest skills gap currently in need by employers. Can you guess which skill was most needed?

  • Tech/IT/coding-type of skills? No, but not a bad guess!
  • Healthcare/Nursing skills? No, but another great guess!

The #1 most sought after skill by employers is Oral Communication!

Turns out that we have a ton of kids coming into the workforce that have a hard time communicating orally! Hmmm…

Yeah, so we should probably not make kids who have anxiety over public speaking not speak in the safe environment of a classroom in front of a trained educator!

You know what, most people have anxiety about public speaking. The answer isn’t let’s try and find ways for these kids not to speak, its let’s find ways to get these kids to begin speaking in small ways where they start to gain confidence and little by little start ramping up how and where they speak.

Education isn’t about making some comfortable. It’s about making you uncomfortable in a safe way. If we know kids need oral communication skills to be successful in the work world, we must demand that our educators help make this happen.

I get we are in a time where kids have a great platform to voice their opinions and desires. Good for them! It’s awesome time to be alive. Also, these are kids. Kids can be super smart, and super short sited. It’s our job as adults to say, “I hear you! Public speaking in front of your peers is hard. That’s why you actually need to do it more, not less.”

So, knowing this is a skill that most adults also struggle with, what do you think? Should we be finding alternatives for kids who don’t want to speak in front of their class, or should we make them stand up and speak?

I’m all for making them uncomfortable and teaching them a skill that will help them the rest of their life. I don’t need them to get on stage and speak in front of an audience, but I do need them to be in a meeting with ten co-workers and be willing and active in that conversation!

Influencers or Analysts – Who has the most impact to your brand?

Posted on by
4

The worlds of Influencers and Analysts have never collied more than they are right now in the HR industry. Most of this has to do with the popularity of Influencer Marketing that has taken off in the past decade, and like most things in HR, we are now just catching up with the marketing trend.

Traditionally, in the HR space, companies selling products, technology, and services only really cared about two things: 1. What do our clients think of us, and 2. What do the “Analysts” think of us?

What’s an Analyst? 

Every industry has them. These are basically individuals who work for organizations like Deloitte, Gartner, Forrester Research, IDC, and hundreds of boutique firms specializing in specific parts of the HR ecosystem. The individuals spend a great deal of time understanding the landscape of a specific function in HR, the technology, the processes, what works and what doesn’t, etc. Then your organization pays their organization a great deal of money for this expert knowledge.

The hope is, using this expert Analyst knowledge will ultimately help you save time, money, and missteps because you’ve hired a firm of experts to help you make the right decisions. Many of these experts have never actually worked a day in HR, but hold MBAs and such. Some of these people are some of the smartest people I’ve ever met, and if you listened to them, they could truly help you. Some are idiots working for a big firm.

Examples of Analyst I admire: William Tincup, Madeline Laurano, Trish McFarlane, George LaRocque, Ben Eubanks, Kyle Lagunas, John Sumser, Holger Mueller, Jason Cerrato, Josh Bersin, etc.

This will then beg the question of well, then, what’s an Influencer? 

Influencer marketing has been around for a hundred years, but Kim Kardashian is the queen of modern day influencers. I’m famous! You see me talking about or using this product. You buy this product. That’s really the backbone of influencer marketing. I mean Kimmy D would never steer you wrong, would she?

An Influencer is anyone in an industry that a measurable amount of people are listening to, that will the influence their buying behavior. I write a blog post on some product that I’m using in my own shop. It’s super awesome! You go out, look at it, and decide to buy it and use it with your team. You’ve been influenced.

Most of the influencers in the HR industry are current or former practitioners, they’ve lived your life. Some are super smart and have the resume to back it up. Some are complete idiots. Any idiot can have a blog (I’m a great example!). Most influencers, like an analyst, have a specialty, something they’re better at than other stuff. Some influence full time, but most hold down ‘real’ jobs to pay the bills. So, they probably don’t have the time to deep dive into the industry, as you’ll see with analysts.

Examples of Influencers I admire: Kris Dunn, Dawn Burke, Carmen Hudson, Robin Schooling, Jason Lauritsen, Laurie Ruettimann, Jennifer McClure, Sharlyn Lauby, Steve Browne, Sabrina Baker, Joey Price, Mary Flaukner, Jessica Merrell, Janine Truitt, etc. (there’s really too many to name!)

Many of these people are HR Famous! They have worked hard to create an audience who for the most part listens to what they have to say.

You also have people that fall into this strange middle ground of Influencer-Analysts types that have no name. Maybe they started out as an influencer, then became an Analyst, or maybe they were an Analyst who became popular and started influencing. Examples in this camp are folks like: Josh Bersin, Jason Averbook, Sarah Brennen, Trish McFarlane, Ben Eubanks, etc.

(BTW – All of these people you should connect to! )

So, who has the most impact on your Brand? Influencers or Analysts? 

This is not an easy question to answer because like almost anything it depends on a lot! We all know of a certain product we love and regardless of the influence or what some expert is telling us, we will just buy it because we love it!

We also have an untold number of products and services we buy because someone we trust told us about it, and because we trust them, we go buy it.

If you’re a large enterprise level product or service, basically selling to companies that have more than 5,000 employees, you better make nice with the Analyst community! They tend to have the ear of more enterprise buyers then you’ll typically see from influencers. I doubt very highly the CHRO of Google is reading this blog! (but I know the CPO of GM is!)

What I see is companies selling to enterprise usually work with both Analyst and Influencers. They want to ensure their message is heard across the buying community, so they don’t miss out on a potential buyer, and they have the money to do both.

Companies selling to under 5,000 employees and it starts to get a little harder to determine the impact of Analysts. I mean how many HR and Talent shops in Small to Medium sized businesses have the money to pay for Analysts Research? Not many! If you run an HR shop of a 1500 person company, you do not have $50,000 to hear what the best ATS is! The ATS you buy won’t even cost $50K!

Behind the scenes, most analysts understand their biggest impact in on the enterprise buyer, and because that’s where the money is, that’s exactly where they want to be! If you have buyers across small, medium, large, and enterprise markets, it then becomes a more difficult decision on how you use Influencer marketing.

The real answer to the question above is you engage with the analyst and influencers that have the most positive impact to selling your product. Unfortunately, most organizations have little or no idea if either side is having an impact to selling their stuff.

Who has the juice? 

I call someone who has ‘real’ influence as having the “juice”. If you have the ‘juice’ you have the ability to influence real buying decisions on a regular basis. Laurie Ruettimann tells you to go out and buy this new great HR product, and that organization will see a measurable sales increase directly tied to the links in her posts. She’s got juice!

I wrote about an HR Tech company a few months ago after a demo and a month later they sent me a bottle of gin because they landed a six-figure deal directly from my mentioning them in a post. That’s gin and juice! 😉

Most people who call themselves influencers in the HR space have little or no juice. Usually, because they just don’t have a large enough, sustained audience who is listening. They might be 100% correct in their recommendations and insight, but not enough people are listening to move the buying needle.

I love what the folks are doing over at HRMarketer because they are actually showing organizations who have the juice and who doesn’t. I can tell you I have the juice and say I’m the #1 Influencer in the HR marketplace, but the reality is, anyone can say that! HRMarketer is actually giving data behind those words to let people know where the real juice is.

The truth around all of the analyst vs. influencer chatter is that you’ll find people in both groups who can help you, and people in both groups who are complete idiots and have no value. The best thing to do is build a relationship with both, find out who moves your needle and aligns with the messaging you’re trying to get out, and then measure. Eventually, you’ll find the right mix that will work for your organization.

Co-Managing with an A–hole!

Posted on by
1

In the modern work world, we are often tasked as leaders to co-lead, co-manage a team, a function, a location, etc. The challenges to this are many, but none is more difficult when you have to do that and the other person is a complete a-hole!

What I find is that most a-holes have no idea they’re an a-hole, or they know they’re an a-hole but some broke in their brain to make them believe their actually a better person/leader as an a-hole versus a normal person.

What are the jerk, a-hole leader behaviors? Being condescending to the employees they lead. Talking behind the back of those they lead to others on the team that are a peer of that person. Not supporting their co-leader on things that were previously agreed to, etc. You know what I’m talking about!

I’m lucky that I haven’t had this issue for a while but I see it happen all the time in organizations I support, and it’s one of the most talked about issues I hear from friends and peers that work in corporate gigs. Here’s some of my advice for co-managing with an a-hole:

– A–holes hate being put in a box. Put them in a box. Get agreements on things, then get written confirmation of those agreements. I find a-hole leaders will work not to confirm via email or written communication, especially if they don’t really agree with the direction and plan to screw you later!

– Always stay above the line in front of those who report to you and your peers. “Above the line” means you never allow yourself to do or have the same bad behaviors as your co-manager. You take the high road, always. Trust me, in the end, you’ll benefit greatly from this!

– Be brutally honest in your assessment of your a-hole co-manager. I find most a-hole leaders are never told by a peer that they’re being an a-hole with real specific examples. Most if told, will actually try to change those behaviors. Some are truly just a-holes and they won’t change, but it will make you feel better to address it. Also, don’t stop addressing it! Every time it happens, call them out. That is actually an “above the line” behavior by you calling them out!

As a leader dealing with this situation will probably be the most challenging you’ll have in your career, but ignoring it, complaining to your boss, to matching their behavior are all losing propositions that take your career nowhere.

I love killing a-holes with kindness! It doesn’t happen often to them, they are used to getting the opposite reaction from their behavior, so extreme kindness to them really throws them off guard and unsettles them which can be quite funny!

Fortnite, not athletics, is Our Saving Grace for Team Building at Work!

Posted on by
5

Remember when it was super cool to go out and hire ex-college athletes into various roles in your company? Enterprise Rent-A-Car basically made their entire brand out of it! Pretty much every mortgage banking firm, sales office, etc. followed with the shared understanding that college athletes make great hires.

Why? It’s tough to go to school and fit in athletics. Athletes are normally self-motivated individuals who care about winning. Most are coachable. They actually like working in a ‘team’ environment.

Then came along gaming, and currently, Fortnite is the vain of every parent’s existence!

Don’t know what Fortnite is? Have you been living under a rock for the past year? Basically, Fortnite is a shooter game that has over 50 million active users. Originally it was designed where 100 people get dropped into a small online world all at the same time and you play until you’re the last one to survive. The world gets smaller and smaller every so many minutes, so that the games don’t take forever. The game forces you to move and fight. It’s super addicting. Just ask any parent with teens.

Fortnite found that the kids playing these games actually liked playing with friends so you could invite people you know to join you and try to kill each other. Then, it was duals and teams, where you get your friends together and play against other teams, or pairs. All the while the kids are all talking to each other on headsets, sometimes states and countries apart from each other.

Okay, if you don’t game, I get how all of this sounds ridiculous. The thing you’re missing is the interactions and strategy that takes place in the game.

If you stop for a few minutes and listen to these kids play, after you get through the language being used, you see real strategy and communication taking place. You see kids talking to each other, helping each other, sacrificing themselves for the good of the team, working through extreme time-sensitive decisions in the attempt to win.

Some of this stuff would make military generals super proud! But it would also make executives pretty impressed as well. Fortnite is getting kids to communicate who would previously never talk to anyone! Getting them to work together. Getting them to make tough decisions. Getting them to play 24 hours straight!

Find something you love to do and you’ll never work a day in your life. I’m not saying that Fortnite and shooter games are what you should love. I think it’s way beyond the ‘game’. The kids actually really like the communication, the strategy, and decision making that has ‘real’ implications in their current world.

We spend so many resources in our current work world to get our adults to learn how to interact well in teams. We have an entire generation entering the workforce in Gen Z, that are already demonstrating they have some pretty good skills in this area, and they didn’t even have to know how to throw a ball to show this skill set!

It’s Going to be Hard, but it’s Going to be Fair.

Posted on by
1

I heard this quote recently, it was used by an old football coach to his players:

“It’s hard, but it’s fair.”

He wasn’t the first to use this and probably won’t be the last – but the line stuck with me because of how I don’t think many people in today’s age really think this way.  Many want to talk about what’s fair, few want to discuss the ‘hard’ part.  The football coach’s son described the meaning of what he feels the phrase means:

“It’s about sacrifice,” Toler Jr. said of the quote. “It means that if you work hard that when it’s all said and done at the end of the day, it will be fair based on your body of work. It’s about putting in the time, making sure that you’re ready for the opportunity.”

I think we all think our parents are hard on us growing up.  I recall stories I tell to my own sons of my Dad waking me up on a Saturday morning at 7 am, after I was out too late the night before, and ‘making’ me help him with something, like chopping wood or cleaning the garage out.  He didn’t really need my help, he was trying to teach me a lesson about choices.  If I chose to stay out late at night, it was going to suck getting up early to go to school.

He shared with me stories of his father doing the same thing, one night my Dad had gotten home late, so late, he didn’t even go to bed, just started a pot of coffee and waited for my grandfather to get up, figuring that was easier than getting a couple of hours of sleep and then hearing it from my grandfather the rest of the day.

As a HR Pro, we see this every day in our workforce.  There are some who work their tails off, not outwardly expecting anything additional, they’re just hard workers.  Others will put in the minimum, then expect a cookie. It’s a tough life lesson for those folks.  Most usually end up leaving your organization, believing they were treated unfairly, so they’ll go bounce around a few more times.

Eventually, they’ll learn to put in the work, put in the time and more times than not, things work out pretty well.  Sometimes it won’t, so you go back to work even harder.  It’s been very rare in my 20 year HR career that I’ve truly seen a really hard worker get screwed over. Very rare! Now I know a ton of people who think they work hard, but they don’t, and they’ll say they get screwed. But the reality is they don’t work hard, they do the same as everyone else.

Do some idiots who don’t deserve a promotion or raise sometimes get it? Yep, they sure do, but that doesn’t happen as much as you think. The hard workers tend to get the better end of the deal almost always.

I hope I can teach my sons this lesson:  Life is going to be hard, but if you keep at it and put in the work, it’s going to be fair.  I think that is all we can really hope for.

DisruptHR Detroit 2.0 – September 20th! Tickets Available Now! #Detroit #DisruptHR #HRParty

Posted on by
2

Detroit Metro HR and Talent Peeps!

We’re back!!!

On September 20th in Midtown Detroit, DisruptHR Detroit 2.0 will be taking place onsite at our host Quicken Loans! The cost to attend this event is $30 which includes some great food and drinks, an exceptional list of speakers, and great prizes!

Here are our 2.0 speakers for this event:

Speakers for the 2018 DisruptHR Detroit 2.0:

Tina Marie Wholfied

Don’t Fear The Peacocks! Embracing Organizational Change through Diversity

Melissa Fairman

Make Work Suck Less! 

Melanie Stern

Hiring for Culture Fit Not Add
Becky Andree

CODE RED!  Leadership Development has flatlined!
But I have a Defibrillator!

Kimika Garrett

Planning with a Twist
Danielle Crane

Nobody Smokes in Church
Kat Hoyer

Stop trying to make your employees Happy
Josh Schneider

The Tingly Feeling Compass
Michelle Clark

The Power of Purpose – Stop Sucking the Life Out

of Your People!
Chris Groscurth

Hustle Smarter: Future-Ready Human Resource

Leaders
Iris Ware

They said we couldn’t do it, but we did!

Cody Grant

The Dynamic Art of Job Descriptions

Not only will this event be awesome, but this year we added an “After Party” to take place onsite for continued networking with peers and friends!

DisruptHR Detriot 1.0 had over 200+ participants and it was a sellout. This event is almost half sold already, so get your tickets today!

Register for DisruptHR Detroit! 

 

Is employee experience really all about your manager? #Maslow #Drink!

Posted on by
3

So, I’m sharing a post I wrote over at EXJournal.org (EX = Employee Experience). It’s site started by some brilliant people from all over the world and they invited me to write to bring down the overall quality of the site! I wrote this post and immediately thought, “Hey, I just leveled-up from my normal poorly written stuff!”.

I thought this because it’s an idea I’m passionate about and truly believe. I think we get lied to a bunch by HR vendors who are just trying to sell their shit. We’ve been lied to for a long time on the concept – “People leave managers, not companies” – that’s actually not true…enjoy the post and check out the new EXJournal site!

“Employees don’t leave companies. Employees leave managers.” 

How often have you heard this over the past decade? A hundred times? A thousand times?

We love saying this in the HR, management consulting, leadership training world. We use it for employee engagement and employee experience, to almost anything where we want to blame bad managers and take the focus off all the other crap we get wrong in our companies.

The fact is, the quote above is mostly bullshit.

Employees actually care about other things more

The truth is, employees actually leave organizations more often over money than anything else. We don’t want to believe it because that means as leaders we have to dig into our budgets, make less profit, and pay our employees true market value if we want them to stay.

Managers might be the issue if you’re getting everything else right. So, if you pay your employees at the market rate. Ifyou offer market-level benefits. If you give them a normal work environment, then yes, maybe employees don’t leave your company, they leave their managers.

But you forgot all that other stuff? Maybe the ‘real’ reason an employee left your company wasn’t the fact their manager wasn’t a rock star. Maybe it was the fact you paid them below market, gave them a crappy benefits package, and made them work in the basement?!

The dirty little truth about Employee Experience is that managers are just one component of the overall experience, and we give them way too much weight when looking at EX in totality. We do this because we feel we don’t have control over all of the other stuff, but it’s easy to push managers around and ‘train’ them up to be better than they actually are.

Rethinking Maslow for EX

There is a new Maslow‘s Hierarchy of Employee Needs when it comes to Employee Experience and it goes like this:

Hierarchy of needsLevel I – Money – cash!

Level II – Benefits – health, fringes, etc.

Level III – Flexibility of Schedule – work/life balance

Level IV – Work Environment – short commute, great design, supportive co-workers

Level V – The Actual Job/Position – am I doing something that utilizes my best skills?

Level VI – Your Manager – do I have a manager who supports my career & life goals?

We all immediately jump to Level VI when it comes to EX because that’s what we’ve been told is the real reason people leave organizations. Which actually might be the case if all of the other five levels above are being met. What I find is that rarely are the first five levels met, and then it becomes really easy to blame managers for why their people leave.

Managers aren’t the difference maker

When I take a look at organizations with super low turnover, what I find are that they do a great job at the first five levels, and they do what everyone else does at level six. The managers at low turnover organizations are virtually the same as all other organizations. There is no ‘real’ difference in skill sets and attitudes; those managers are just managing employees who are pretty satisfied because most of their basic needs are met pretty well.

I think the new quote should be this:

“Good employees leave companies that give them average pay, benefits, and work environment, that don’t utilize the employee’s skill set, and that make them work for a crappy boss.” 

(Tim note – Why the #Drink? It’s a game that my fellow HR/TA speakers and I play. We hate when someone uses the Maslow pyramid in a slide, so we make fun of it by claiming every time a speaker mentions “Maslow” or shows the pyramid the entire audience should have to take a drink – like a drinking game for bad speakers! The more you know…) 

The “Real” Man Talent Crisis in America!

Posted on by
3

I have to admit, I’m not much of a  “real man”. I don’t know many ‘man’ things. I don’t fix cars. I’m horrible fixing almost anything. I have a lot of tools, but the reality is I usually cost myself more money by trying to fix something myself than just paying to have a ‘real’ man fix it.

That’s hard to admit. I want to be a real man. I want to have something go wrong in my house and instantly know what to do and how to correct it. I usually just go to YouTube and watch a real man show me how to fix it, then I call a real man to come over and fix it.

It seems like there is a huge need for real men right now in the world. It’s a shrinking talent pool for sure!

My mother is at a point in life where she finds herself without a man, real or fake, but she needs the skills of a real man to help her keep up her house. We found her someone and all I can think is I really need this guy for myself, not her! I need her real man for me!

I have three sons and none of them are real men, and unfortunately, I don’t see them becoming real men. I’m teaching them to pay for a real man. It’s cheaper and less frustrating in the long run. I don’t really have a desire to learn to plumb, do electrical work, appliance repair, engine repair, carpentry, etc. I mean I wish I had those skills, but that’s a lot of life experience and it’s almost too late for me to pick those up and be any good at them.

I have some great qualities that most ‘real’ men probably don’t. I’m awesome at gardening. I love to shop. Go to the movies. I love to go to the theater. I can cook up a storm. I do some basic sewing. I’m awesome with children. Just don’t ask me to ‘fix’ the front door when it won’t close properly.

While you might think this is a ‘me’ problem, it’s not. This is an “us” problem. I can foresee a time when ‘real’ men are so scarce we won’t be able to find anyone to fix our stuff! We have a real man talent crisis on our hands and I don’t think people really understand how bad it is, and how bad it’s going to get.

I don’t need someone to show me how to play Fortnite! That is a skill I can live without. But I can’t have the deck falling off my house and just let it dangerously hang there! I don’t need someone to show me how to watch the entire series of The Office on Netflix, but I do need someone to help me fix my garage door when it won’t go up or down!

I’m sure there is a correlation between skilled trades leaving public education and downfall of “real” man skills in the U.S. I’m also sure that there is a correlation between white collar jobs and blue collar jobs and real man skill level. You could probably add in a number of other factors around higher education, income level, etc. But, it’s all really meaningless, I still need have a need for real man skills no matter the reason I lack them!

So, I’m wondering. Is this just me or are others feeling the real man skill pinch as well? Hit me in the comments with how you lack real man skills, or how you got your real man skills, even if you’re a lady with ‘real man’ skills!

7 Things Startups Teach Us That We All Need to Learn!

Posted on by
1

My buddy John Hill works for Techstars as the VP of Network, go connect with him, he’s completely an awesome guy who will sit down and have a beer with you and talk about how to change the world for hours!  Last week he got to meet the latest crop of Techstar startups and came away motivated with some great learnings.

Here are John’s takeaways from the newest Techstar startups:

1. Nothing beats hustle. Nothing.

2. The world is full of good ideas, but only a few will execute on them.

3. Relational capital is vital.

4. Networks matter. Surround yourself with those who can help you.

5. There are some wicked smart people in the world.

6. To build a great company you need help with funding, talent, and connections to business/industry to scale and the understanding of how to navigate each.

7. Suspend disbelief!

I’m drawn to each of the seven for different reasons but #2 jumps out because I witness this on a daily basis. There are two kinds of people in the world: those who execute and those who talk about executing. Hire those who execute. Understand that they are rare and you should overpay for this ‘skill’.

Do you notice nowhere on his list does he talk about failure. John is a motherfucking doer! He gets shit done. Techstars will only take a chance on startups led by people who will execute. John talks about ways to succeed not about just throwing caution to the wind and failing. The reality is most will fail, setting yourself up for success is key.

I love that he ends his list with “Suspend disbelief”. The world is a critic. Those who make it big have that special combination of John’s list. Great idea, ability to execute, the right network to make it happen, super smart, etc. What they also have is true belief! At the end of the day, you have to believe 1000% your idea is going to work. No part of you even questions that it won’t.

If it didn’t work you would be destroyed because your belief was so strong that you never saw it coming when it fails. That’s how most great ideas actually make it. You find a combination of all of these things and you put money and resources behind it.

These 7 learnings aren’t about how to make a startup successful. These are how you make anything successful that you’re working on.

Why do we hang on to bad hires for so long?

Posted on by
Reply

I’ve been very public about my philosophy on hiring. I do not hire to fire. In no way do I hire someone thinking “I can’t wait until the day I fire them!”, I don’t think any of us really think that!

I hire someone believing that with the right training, development, and support, they will be wildly successful! I own at least half of that equation, the person I hire owns the other half. Many times it works, sometimes it doesn’t.

The problem with my philosophy is “Sunk Cost”.

Sunk cost is an accounting philosophy that means a cost that has already been incurred and cannot be recovered. So, you’ve already sourced, recruited, and trained an employee. You’ve gone beyond training working to develop them. All those costs are now spent.

BUT – because you’ve ‘invested’ those costs into an employee, you are less likely to let them go believing you are more likely to get a return on those costs. In reality, there is absolutely zero evidence that shows you’ll get any return for future investment into that employee, but we really struggle to give up on them based on what we’ve already spent.

This is super common in the management of people resources!

Well, I’ve already dropped $50K into Tim, I guess another $10K isn’t that bad. When in reality that $10K is actually way better spent on another employee, and you fire Timmy!

I’ve known about Sunk Cost for a long time, but now there is actually scientific evidence to back up the fact we should be firing failing employees sooner:

“Sunk costs are irrecoverable investments that should not influence decisions, because decisions should be made on the basis of expected future consequences. Both human and nonhuman animals can show sensitivity to sunk costs, but reports from across species are inconsistent. In a temporal context, a sensitivity to sunk costs arises when an individual resists ending an activity, even if it seems unproductive, because of the time already invested. In two parallel foraging tasks that we designed, we found that mice, rats, and humans show similar sensitivities to sunk costs in their decision-making. Unexpectedly, sensitivity to time invested accrued only after an initial decision had been made. These findings suggest that sensitivity to temporal sunk costs lies in a vulnerability distinct from deliberation processes and that this distinction is present across species.”

This scientific study showed both humans and rats basically do the exact same thing. If we feel we have already invested a ton of resources to a task, we are more likely to continue pursuing this task even when all the evidence to that point has only shown failure!

This is Poor Performing Employee Management 101!

-You hire an employee.

-The employee gets trained and should have the skills to perform the job.

-The employee doesn’t perform the job, so you give more resources to help get them up to speed.

-The employee still doesn’t perform.

-The manager decides not to terminate the employee, but to continue to give more resources and chances.

Why do we do this?

You hired 3 employees before the failing employee and all three completed training and did the job successfully. We know the process works. So why do we not fire the employee?

Sensitivity to Sunk Cost. We are as dumb as rats when it comes to investing our own resources into failing employees. We act the exact same way!

It has nothing to do with the employee and our desire to give everyone a fair shot (I don’t hire to fire). It has everything to do with our own internal drive of not wanting to lose, what we fell we’ve already invested, even when all the data tells us future investment is akin to burning a pile of cash.

So, don’t hire to fire, but also don’t be as a dumb as a rat and not fire someone who shows you they can’t and won’t do the job you hired them to do!