Ladies, would you prefer not negotiating your salary?

An article recently written on NPR speaks to a ‘new’ trend in organizational compensation.  What’s that trend? Apparently, companies are now not negotiating new hire or promotional salaries.  Basically, here’s what we pay for this position, take it or leave it.

Do you believe this would work?

Here is more from the article:

When it comes to negotiating salaries, the research is pretty clear: women are less assertive than men. It’s one reason women who start their careers with a narrower pay gap see it widen over time.

Carnegie Mellon economics professor Linda Babcock, who studies the gender pay gap, says men are four times more likely to negotiate their pay. That keeps women at a disadvantage, though they’re not always aware of it.

“The standard now is that people don’t really know what each other earns, that some people negotiate and some people don’t, and so there’s tremendous inequities in salary,” Babcock says.

Here’s what I’ll say, Yes, we have inequities in salaries.  Having non-negotiable salaries can help these inequities, but this isn’t a solution. The reality is organizations need flexibility to negotiate salary, especially when it comes to attracting hard-to-find talent. Organizations that take a hard stance on this, will lose in the talent attraction game.

What organizations need to do is have a policy on making quicker market compensation moves when they begin hiring in individuals, male or female, at higher rates than someone who might have started a few months prior. Most organizations are very weak on this practice, which causes most of the inequity.

You hire someone last year at $50K, and this year you hired someone into the same position, doing the same job, with a very similar resume at $58K. You now need to go back to your employee making $50K and give them an increase to $58K.  This hurts, but it needs to be done. That’s why it is critical for your talent acquisition team to have great negotiation skills.

It’s not a $8K increase to your budget, it’s a $16K increase to your budget. Now, think about in terms of a company that has hundreds, or thousands of employees in the same situation.  That $8K dollar negotiation can turn into hundred’s of thousands of dollars across the organization in market increases.

This is why most companies turn a blind-eye to market increases, and why so many organizations have pay inequalities. If females are less likely to negotiate higher salaries, and your organizaitons is going to ignore the difference, you’re going to have a growing problem that only gets worse the longer you ignore it.

I recently had a situation with a Fortune 500 client you completely gets this, and refuses to let it becomes a problem. We had a female candidate interview and get an offer. She wanted $47K. She was way under market for the position, and for the company. They knew she only wanted $47K, and they came back and paid her $63K! That was the value of her position to the organization and what similar people in her role were going to make, with her experience.

Like I said, this isn’t a salary negotiation issue. This is a do-you-want-to-do-the-right-thing organizational issue.

What do you think?

What ATS Should You Select For Your Company?

If you read Monday’s post on Crappy Employment Brands, I told you I would answer the most asked question in HR and Talent Acquisition of all time.  It’s goes with the title to this post, and almost anytime I speak I get at least one person who will ask me this question during the Q&A:

What ATS (Applicant Tracking System) do you use?

The question is basically irrelevant unless the person asking me works in the exact same industry and business that I work in (IT and Technical contract staffing). Which they usually don’t. Usually, it’s a corporate HR or Talent Pro.  My ATS software is designed for something completely different for what they want.

But, more importantly, the question is asked because so many people believe that the ATS is the secret sauce to successful recruiting in corporate talent acquisition.  It’s not.  The secret sauce to great hiring is only expedited by your recruitment technology.  If you suck at hiring, the best ATS on the market will only make you suck at hiring much faster!

The best ATS systems will give you great functionality that includes CRM, recruitment marketing, recruitment automation, talent communities, great sourcing tools, assessment/screening technology and interview technology baked into the product,  onboarding, etc.  The worse ATS systems give you a basic product that will allow you to accept applicants online and process them through some sort of hiring process.

There are literally hundreds, if not thousands, of ATS systems on the market.  Most people will demo three or less. There is an ATS that is right for you, but you have to be willing to look at a lot of them.

So, what ATS should you select for you company? I’ll give you some tips:

1. Select an ATS you can afford. That sounds obvious, but most HR and Talent pros over-buy on their ATS, for the amount of hiring they do. If you only hire a hundred people a year, you don’t need an ATS that costs $100K per year to own/rent.  You can great ATS software for a few thousand dollars per year.

2. Select an ATS that has the functionality your business needs.  Again, obvious, but missed by most new buyers. If you don’t need talent communities, paying for talent communities is a waste. If you organization won’t use video interviewing, why are you buying it baked into your ATS.  If you definitely need a pre-employment assessments baked in, you can find a system that will meet your needs. Don’t settle.

3. Select an ATS that most closely fits your hiring process. This sounds stupid, but the majority of ATS failures have nothing to do with the ATS and everything to do with you not willing to change your process. You take the ATS and force them to do all sorts of changes to fit your broken process, and in turn break their proven best practice process. In the end, you fail and blame the ATS. Save yourself the headache and find an ATS that does the flow exactly how you want it. Some are very configurable and will allow you to change and keep changing your process. Some aren’t configurable at all.

4. Select an ATS that you feel you could start using immediately after the demo. ATS systems should be very easy to use. If you feel overwhelmed by the demo, it’s not the right system for you.

5. Select an ATS you can grow into. If you aren’t going to grow, you don’t need to worry about this, so don’t get talked into it.  Most ATS systems are designed for a certain level of hiring. The best vendors will be honest and tell you, the worst will tell you what you want to hear. Find out who their clients are that are your same size and demand to talk to them. If they don’t give you that access, run.  The good vendors will bend over backwards to get you to talk to their current clients.

If you don’t have an ATS, you should be fired. There are literally four or five major players in ATS technology that will give you a one user system for FREE (and only a few hundred dollars to add other users)! Of course, you get what you pay for, but you need to start somewhere! No company that is hiring should not have an ATS. The prices range from Free to millions of dollars.

What ATS systems do I like?  There are bunch: Workable, Jobvite, Bullhorn, Greenhouse, Taleo, Newton, The Resumator, Silkroad, iCims, SuccessFactors and Gr8People, in no specific order.

Here’s the funny thing. Some of you use one of these from above and hate them! That’s ATS technology. Most people think everyone elses ATS is better than what they’re using. The reality is, most do about the same thing – post jobs, accept resumes, some stuff in between, BAM you’re hired.

How Do You Turn Around a Crappy Employment Brand?

I get two questions more than any others since I started blogging in HR and Talent over six years ago:

1. What ATS do you use?

2. How can we turn around our bad employment brand? (You can also replace “brand” with “culture” – I get that a lot as well!)

For question #1 on the ATS selection is for another post. Check back Wednesday and I’ll tell you.

Question #2 isn’t necessarily difficult, but it does take work!

There’s a reason you have a crappy employment brand. You need to find out what that reason(s) is and solve it. Sometimes the reason is difficult to solve, sometimes it’s very simple.  If you have a bad employment brand because you have a history of treating employees like garbage, that is going to take some time to turn around. If you have a bad employment brand because you recently had one bad issue in the news, you can recover pretty quickly.

The first step to turning around a bad employment brand is knowing what the problem is.

Sometimes you just know, sometimes you need to do the employee surveys. I love doing employee alumni surveys for this as well, and only sending to those you voluntarily left on their own. Those folks usually give you better, more productive, feedback, than those you laid off and fired.

The second step to turning around a bad employment brand is you need to get your entire leadership team to agree on why you have this problem.

It doesn’t matter what you do in HR, if your leadership is not in agreement, you will never fix this problem. And, it can’t be just the CEO who agrees with the problem. Any leader with influence needs to buy in completely and drink the Kool aid. Once you have this buyin from leadership, it becomes fairly easy to fix.

The third step to turning around your employment brand is your current employees have to begin believing that real change is happening.

They need to hear it, constantly, and they need to see it.  It starts from within. If your current employees believe it’s changing they’ll begin to refer people to be apart of the change. One step I suggest, that almost no organization ever does is to find your true believer employees. Those who you are 100% sure are on board for the change, and do a special referral bonus for only them. You want your true believers referring people, you don’t want your cancer employees referring people.

The fourth step to turning around your employment brand is to change the perception externally.

Most organizations flip-flop steps three and four, and it’s the main reason they fail. They try and change external perception with commercials and marketing, news releases, etc. This creates buzz on the outside, but your internal folks kill it as soon as that first person interviews or is hired.  Do steps 1-3 first, and step four really is just fairly easy employment branding marketing strategy and plan.

The first three steps will take 90% of your time to fix. You’ll be shocked at how hard step two will be, and how long it will take to come to agreement on the ‘real’ problem. That’s because most bad employment brands start with bad leadership.  Bad leaders don’t easily take responsibility for this, and want to blame everyone and everything, besides themselves.

There’s no silver bullet for a bad employment brand. Unfortunately, marketing firms are going to sell you step four as a silver bullet, which is much like putting lipstick on a pig. The pig might look a little better, but it’s still a pig.

HR’s Work Uniform

I got put on to an article recently about a female Art Director who decided to where the exact same outfit to work everyday.  She’s been doing it for the last three years:

“I have no clue how the idea of a work uniform came to me, but soon, the solution to my woes came in the form of 15 silk white shirts and a few black trousers. For a little personal detail, I remembered my mother loved to put bows in my hair as kid, so I chose to add a custom-made black leather rosette around my neck. Done. During the colder months, I also top my look off with a black blazer. I shopped all the pieces in one day. It burned a hole in my wallet to say the least, but in the long run, it has saved me—and will continue to save me—more money than I could imagine.

To state the obvious, a work uniform is not an original idea. There’s a group of people that have embraced this way of dressing for years—they call it a suit. For men, it’s a very common approach, even mandatory in most professions. Nevertheless, I received a lot of mixed reactions for usurping this idea for myself. Immediately, people started asking for a motive behind my new look: “Why do you do this? Is it a bet?” When I get those questions I can’t help but retort, “Have you ever set up a bill for online auto-pay? Did it feel good to have one less thing to deal with every month?”

I love the idea.

I recently went on a diet. I’m not a big dieter type.  But I’m completely comfortable with eating the same thing, every day, every meal. Give me a plan, and I’ll follow it.  For breakfast I have a banana and two eggs, mid-morning snack is a protein bar, salad with grilled chicken and fruit for lunch, Greek yogurt in the afternoon and a piece of fruit, for dinner it’s fish/chicken/steak, brown rice, veggie combo of some kind. I’m down about 15 pounds. I’ve been doing it for about six weeks or so. It’s easy.  I don’t have to think about what I’m going to eat, and I like what I’m eating.

I could so easily wear the same thing to work every single day. I basically do anyway for the most part, dark dress slacks and button down shirt. It would be even easier to just keep it all the same.

I wonder what a good HR uniform would be?  Here’s my suggestion:

For the Men of HR: 

– Dress khakis (not the cotton type, the poly blend type. Cotton wrinkles to easily, and the cotton ones that don’t are Dockers and no one wants to see those.)

– White button down or predominantly white patterned button down (In HR you want to wear white, it symbolizes you’re on the right side of things. Pressed. Crisp.)

– Sweater vest  (Sweater vest screams secure, conservative decision making and trust. HR in a nutshell.)

– Wingtips (Brown, not black. Brown is soft and comfortable. Black is cold and hard.)

– Socks (Fun colors and patterns. This speaks to the culture you want, but aren’t willing to go all out for.)

For the Ladies of HR: 

– Dress slacks (Black or Navy, no Khaki for the ladies. Get some pants with some structure to them, no pseudo yoga pants, no one wants to see the HR lady’s cookie – shout out to my girl Mer! – and make sure they’re long enough.)

– White open collar shirt, sligh v-neck (You want classy, not sexy. Long sleeve or 3/4 sleeve. Spend some money so it’s not see through, or get white camis to go under.)

– Lightweight cardigan sweater (Color to match the season, plain, no patterns or picture of cats. This adds softness and approachability.)

– High heels to match the pants (Not hooker high, appropriately high.)

I would totally trust these two HR Pros above!

What do you think? What would you like for your daily uniform if you were going to wear the exact same thing to work every single day?

Job Title Killers

You know what position I would love to apply for!?  Jr. Human Resource Manager, said no one ever!

I hate spending 3 seconds on job titles, because job titles just scream, “Personnel Department”, but I have to just take a few minutes to help out some of my HR brothers and sisters.  Recently, I came across a classic job title mistake when someone had posted an opening and then broadcasted it out to the world for a, wait for it, “Jr. Industrial Engineer”.  I almost cried.

Really!  No, Really!  “Jr.”  You actually took time, typed out the actual title, and then thought to yourself, “Oh yeah! There’s an Industrial Engineer out there just waiting to become a ‘Jr. Industrial Engineer’!”  Don’t tell me you didn’t, because that’s exactly what it says.  “But Tim, you don’t understand we’ve always called our less experienced Industrial Engineers, Junior, so we can differentiate them from our ‘Industrial Engineers’ and our ‘Sr. Industrial Engineers’.  What do you want us to to do, call them: Industrial Engineer I, Industrial Engineer II and Industrial Engineer III?”

No, I don’t want you to do that either.

Here’s what I want you to do.  I want you to title this position as “Lesser Paid Industrial Engineer”. You’ll get the same quality of responses!

You know how to solve this, (but why you won’t) just have one pay band for “Industrial Engineer”, from $38K to $100K.  Pay the individuals within that band appropriately for their years of experience and education.

This is why you won’t do it. Your ‘Sr.’ Compensation Manager knows you aren’t capable of handling this level of responsibility and within 24 months your entire Industrial Engineering staff would all be making $100K – Jr’s, Middles and Sr’s!

Please don’t make me explain how idiotic it looks when you list out your little number system on your post as well (Accountant I, Accountant II, etc.). Because you know there just might be an Accountant out there going, “Some day I just might be an Accountant II!”

If SHRM actually did anything, I wish they would just go around to HR Pros who do this crap and visit their work place and personally cut up their PHR or SPHR certificates in half, in front of them, like a maxed out credit card that gets flagged in the check out line.  That would be awesome!

All this does is make it look like you took a time machine in from a 1970 Personnel Department.

But, seriously, if you know of any Sr. Associate HR Manager III positions please let me know.

8 Hacks Benefit Managers Can Do to Raise Employee Engagement

Tomorrow (Tuesday April 21st) at 2pm I’m hosting a free SHRM webinar (Link to register below) on how you can use your normal, boring employee benefits communications to drive better employee engagement. Well, let me take that back, it won’t be your normal, boring communications, it will be newer, better employee communications!

This won’t be your normal SHRM webinar, because it’s me and the company sponsoring the webinar is called Jellyvision (and their benefit communication technology called ALEX)! This will be fun!

The days of the low-strategy, low-impact benefits communication plan are over. Today’s HR professionals can no longer approach benefits communication as a chore that must get done as quickly as possible.

Smart HR pros know that strong benefits communication strategies drive employee engagement levels through the roof. In this lively program, you’ll learn that it’s not company picnics and spiffy logo polo shirts that make people love their jobs but smart, strategic benefits communication.

What do you know? The benefits team just got elevated to strategic employee engagement driver number one!

What can you expect to hear? 

1. What and how can Leaders in your organization do to aid your benefit communications? Simple tips to get them involved without them lifting a finger!

2. Research shows that 3/4 of your employees don’t understand their benefits, BUT 3/4 also don’t want more Benefit Communications! So, what are you supposed to do!?!

3. Research also shows that the higher percentage of employees to actually understand their benefits, the higher the organizations overall employee engagement is.  I’m going to walk you through some easy to do hacks that can help you, and show you some technology that is transforming how great companies are turning employee benefit communication upside-down!

Click Here to Register! 

What is ‘Meaningful Work’, really?

I had a couple of communications recently that lit a fire under my ass over the concept of ‘meaningful work’.  You see, there is this widely held belief by a great number of HR pros that to have true employee engagement your employees must feel like they have meaningful work.

I don’t necessarily disagree with that thought process.

The problem is, well meaning, HR pros have taken this concept and started to cram social platforms down the throats of their employees misinterpreting ‘meaningful work’ as meaning as an employer we must have support social causes so our employees see we are giving back.

The best example I can think of is everyone’s darling employer Tom’s.  With complete transparency there is probably ten pairs of Tom’s shoes in my house, none of which are mine.  Each pair of Tom’s costs around $45.  The material and labor to make a pair of Tom’s probably runs around $5. Let’s be honest, these shoes are crap. It’s a piece of canvas, rubber and some thread.

“But, Tim!, they give one of these crappy pairs of shoes to a poor kid!” Great, they just cut into their margin by $5, oh how will they survive on only a gross of $35 per pair?!

So, I’m to believe that because they give a shoe for every shoe they sell, people find this as meaningful work?

What about those companies that put big money and volunteerism towards things like Habitat for Humanity?  Great cause, right?  I worked for a company that did this. It was nice. But I grew up volunteering for Special Olympics and supporting this organization. The company I was working for wouldn’t support my cause, because they already did so much for Habitat.

What about my ‘meaningful work’?

Meaningful work isn’t about supporting causes.  Meaningful work is do your people feel that what they do on a daily basis is important to the success of your organization.  This doesn’t necessarily have anything to do with supporting causes.  It definitely does for some organizations, but not most.

Employees need to know that when they show up in the morning the effort they give helps the organization reach its goals.  Not that the organization they work supports one cause or another.

The failure in believing meaningful work is tied to causes is that everyone has their own personal causes they want to support. If you believe helping the homeless is your organization’s cause, that’s wonderful! But, now you have to go out and look for talent that also believes this is their cause as well, to make work meaningful for everyone in your organization.

In HR we try and make this concept of meaningful work too difficult.  We need to help our leaders be better communicators to their staffs on how what each one does individually has impact to the greater good of our organizations.  How they, individually and collectively, make an impact to their function and to the business.

Meaningful work isn’t saving puppies. Meaningful work is using your talents to help your organization be successful.

Surprise! You’re an HR Manager! Now what?

It’s graduation season and soon many new HR brothers and sisters will be entering into their first real HR gigs. Many will be titled, “HR Manager”, even without one day of experience.  That’s because in many organizations, HR Manager is the only HR position they have, and they’ll gladly take a young, fresh new HR grad.

The tendency for new managers, especially HR Managers thrust into a generalist role, is to get buried with tasks.  We all know the drill, you get started at the new company, and by day 3 you already have so many projects, improvements, process changes, etc. that need to be made you determine you probably have about 18 months worth of work.

Whether you’re a new manager, or seasoned HR Pro, we tend to forget the above concepts from time-to-time and get bogged down in the everyday details within HR Departments.  So, for the new HR Managers (and maybe some seasoned vets) I wanted to give you 3 tasks that should be accomplished everyday as a HR Manager who wants to be strategic and add value to your organization:

1. Keep Track of the Score,

2. Find Better Talent,

3. Be a Relationship Bridge.

Keeping track of the score, means you must create and track metrics, for your people practices, that have bottom-line impact to your organization. Communicate these constantly and educate your organization on how they can impact these results.

Finding better talent for your organization is really the only reason the HR Department exists.  If you did only this all day, every day, your company would be better for it.  No, having a better dress code policy isn’t going to make you world class. In the end, talent wins.

The single largest factor to inefficiency isn’t bad processes, it’s bad, or non-existent, relationships. It is your job to develop your leaders, and part of that is helping them understand the value of each part of the organization and getting them to dance with each other.  Being a bridge, and bringing leaders together, with understanding will have the greatest impact on efficiency.

Leaders understanding, and actually knowing, each others pain will solve most organizational problems. Why? Because you hire great talent, and great talent with good relationships will move mountains and get you to world class.

Never underestimate the power of relationships (good and bad).

Show me a leader who claims they can “work around” someone (meaning they don’t get along with that person), and I’ll show you a below average leader who needs to leave your organization.  New, and seasoned, HR Managers underestimate the leverage they have at helping organizational efficiency through better relationships.

Good Luck new HR Managers!

5 Ways To Make Learning Matter In Your Company

It’s true. You know the true power of learning and development, known to the laypeople in your company by the pedestrian term “Training.”   A revamp of your approach to learning and development has been on your project list for no less than two years—but day-to-day HR and workforce management duties has kept it in the “someday” bucket.

We feel your pain. That’s why Fistful of Talent is focusing our April Webinar on L&D. Join us on Thursday, April 23rd at 2pm EDT for Bootstrap Your Training Function: 5 Ways To Make Learning Matter In Your Company (sponsored by the L&D experts at Meridian)We’re going to give you a roadmap to build your training function from scratch, including the following goodies:

What the modern Learning & Development function looks like across core job skill training, leadership development and more. You don’t have to focus on everything to have an effective L&D function.  We’ll walk you through how leaders in the space prioritize tough choices in this space.

How smart HR and Talent leaders are building their approach to L&D with a mix of company provided training, outsourced training and self-paced activities tied to competencies of the most critical positions in their company.  It’s 2015.  The classroom matters, but there’s this thing called Google…

Why you need an LMS/technology solution to bootstrap and make learning matter. There’s only one of you, right?  Then you’re going to need to use technology to make your L&D initiatives look bigger than they really are and deliver the way the end user wants—just in time, on the device your employee is using.  You don’t have to break the bank… we’ll show you what to look for.

5 ways to effectively market your L&D/training function to look fabulous as a Talent Leader. You could build the best L&D machine in the world and there’s a good chance nobody would notice.  We’ll show you the 5 biggest lessons you can learn from marketing and how to put them into play as you build your training function.

A roadmap for how to effectively optimize your training strategy to positively influence turnover and retention in your workforce. This just in: Some people aren’t going to leave—ever. That means you’ve got choices to make related to how you spend the limited L&D budget you have.  We’ll show you how to do that.

You know ramping up your Learning & Development function has been on your “to-do” list for too long.  Join us on Thursday, April 23rd at 2pm EDT for Bootstrap Your Training Function: 5 Ways To Make Learning Matter In Your Company, and we’ll jump start your planning process and help you get things done in 2015!

Recruitment Non-Poaching Agreements and Bad HR

Workforce had an interesting article – When the War on Talent Ends with a Peace Treaty – regarding some national non-profit teaching institutions who regularly found themselves competing against each other for teacher talent. Being “non-profit” these organizations felt that it was their “mission” to find a better way to recruit teachers. A better way, meaning more cost effective and using less organizational dollars in recruitment.

For them, non-poaching agreements were part of the answer to help save costs. Non-poaching agreement = staff retention. Less turnover = money saved.  And in the end? This would allow these organizations to spend more money on their “missions” and make the world a better place to live. Amen.

Sounds good, right?

Non-profits squeezing every penny out of every donated dollar to ultimately give “our children” the best education in the world? Let’s not kid ourselves, Teach For America (TFA), KIPP, etc. are organizations that are “non-profit” by definition, but I’m positive their Ivy League educated leadership are not living in one-room apartments, eating government cheese and taking the bus to work – as many of their constituents are. And ultimately, the individuals hurt by non-poaching agreements are those professionals looking to get a job in that chosen field (in this example they’re teachers – but all the examples play out the same way).

Let me explain. Instead of education, let’s take a look at health care. Under the premise above, it would seem safe to believe that all “non-profit” hospitals should be able to come up with similar agreements, right? I mean, we are just trying to make people better, keep them healthy, it’s our mission. We won’t take your doctors, nurses, etc., and you don’t take ours; agree? Good. Now, I can go back to coming up with some policy, like dress code, how to make our lunch menu more exciting, or some other valuable HR deliverable…

Instead I have another novel idea, how about don’t suck!

Yeah, that’s right, stop sucking as a place to work, and you won’t have to come up with agreements with your “competition” about not recruiting your people away from you. Stop sucking in not paying what the market bears for pay and benefits. Stop sucking in developing your employees and giving them a great environment to work in.  You don’t hear about Google or Zappos or Pepsi meeting with their competition about not poaching each other’s talent. Why? It’s illegal, it’s called collusion.  It’s the main reason we have Unions and Unions suck more. so stop it!

To recap: Non-poaching agreements are bad. Bad for talent, bad for business, and bad for America (but good for HR folks who don’t want to make their places of employment better). Stop Sucking as an employer. And, Unions Suck.