Category Archives: Turnover

When Should You Retire?

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We tend to believe retirement is an age thing. Well, once you turn 65, it’s time to retire! Do you know where ’65’ actually came from? Most HR pros will probably guess it, it’s when America instituted social security insurance back in 1935.

The U.S. Government, in 1935, didn’t even use any science to determine 65 years old.  At the time, the national railroad pension retirement age was 65, and about half the state pensions were the same (the other half were 70), so 65 years old was chosen. Way less red tape back in 1935! Can you imagine the government trying to make that decision today!?

So, you turn 65 and you’re supposed to retire. In 1935, that probably was fairly accurate. The actual life expectancy in 1935 was only 61! So, we built social security knowing most people would not live to receive it. Today, life expectancy is around 79 years old!  As you can imagine, 65 years old is no longer a realistic retirement age.

I’m currently 45 years old.  It’s my belief that I have about 25 years left to work and save for my retirement. I’m assuming I’ll work until I’m at least 70.  70 years old today doesn’t seem like 70 years old when I was a kid.  My parents are now in their 70’s and they don’t seem ‘old’. I mean they’re old, but not like they can’t do anything old.  Both could still easily work and produce great work if they wanted to.

All of this should change how we look at succession planning in our organizations, but we still use 65 as the ‘expiration’ date of when someone no longer seems to have value. “Oh, you know Tim, he’s going to be 65 next year, I’m amazed he can still stay awake all day!”

65 in 2015, is not the same 65 we saw in 1935!  The health and physical wellbeing of those two people are worlds apart in difference!

Succession Planning needs to catch up with this difference.  HR needs to lead this charge.  Part of this change starts with us changing the language and numbers we use when describing retirement.  Regular retirement age needs to start at 70 years old, at a minimum and move up from there.  We need to eliminate 65 years old from everything we write and speak.  It’s just no longer valid or accurate.

Once we push this date out, we can then start to plan much more accurately to what our organizational needs will truly be.  Next, we need to have frank conversations with those who we believe are reaching an age where they want to retire and have real conversations.  HR pros have been failing at this for years!  It’s actually not against the law to ask an employee what their retirement plan is! It should be against the law that you don’t ask this question!

If an employee knows that you are working with them to reach their goals, and you let that employee know that ‘hey, we need you for another five years’, most will actually happily stay on the additional time.  My Dad worked in a professional job until he was 72, and they wanted him longer! Don’t ever underestimate the power of being wanted. As we age, that desire to be wanted just increases!

So, I’ll ask you. What age do you think someone should retire?

Where Does Retention Start?

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The biggest thing in HR and TA in 2016 will be retaining your employees. Not just top talent, but that middle of the road, shows up every day, glue type talent.  Retention is a concept that most HR and TA pros haven’t had to worry about this for a long time, but it’s quickly the hottest issue facing most organizations.

My question is, where does retention start?

My friend Laurie Ruettimann and Dawn Burke talked about this on Dawn’s FOT Videocast ‘No Scrubs‘ earlier this month. Laurie’s opinion is that retention starts at the Orientation. Solid theory for sure. You want to catch them day one and start retaining them from the start.

What Laurie knows, is that most organizations don’t start retaining employees until it’s too late. You know, when you find out that the person is out interviewing with your competition! Or when you find their resume on CareerBuilder, or see that they recently updated their LI profile, or when they turn in their two weeks notice!

I tend to believe that retention, at its core, starts with selection.  Hire people who actually want to work for your company, and crazy as it sounds, they tend to stay around longer!  Most turnover happens because of poor organizational, or positional, fit. Hire people who have a strong desire to work for your company, specifically, and retention tends to take care of itself.

So, if retention starts so early, regardless if Laurie or I are correct, why do organizations still wait so long to address it?

I think organizations are still under the belief that employees leave organizations because they hate their boss.  We’ve allowed this thought to percolate for a decade and its now become fact.  This is one small aspect of turnover, but I tend to believe now that most employees expect and deal with bad bosses fairly well.

The problem with focusing retention efforts so late in the process is that it’s, well, too little, too late!

Another piece to this retention dilemma is that HR doesn’t really believe they own it, and I tend to agree with this theory. The reality is the direct supervisor should have a better handle on retention. It should be a measure that all first-line leaders are held accountable to. Therein lies the real problem. We all take some responsibility for retention, but no ownership!

It’s the classic house on fire analogy. One person sees a house on fire and they do all they can to help. Ten people see a house on fire, and they all watch, believing someone else will do something about it. Your organizational retention is a house fire. To stop it, one person, one group needs to own it, measure it, make it public, ensure everyone sees the fire burning.

I’m not sure, exactly, when retention starts, but I always know how it will end.  With you posting a job and refilling a position, you already had filled…

You’re Not Bill Simmons!

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On Friday, right before the end of the business day, ESPN announced that it was shutting down its very popular site Grantland.  Grantland was a site started by sports author Bill Simmons, and it was purchased by ESPN a few years ago and Bill came over to ESPN to continue to run it successfully. Bill Simmons is an exceptional writer, and assembled a great writing team, and Grantland was a blog I read every day.

This is from ESPN on the announcement of shutting down Grantland:

“Grantland distinguished itself with quality writing, smart ideas, original thinking and fun. We are grateful to those who made it so. Bill Simmons was passionately committed to the site and proved to be an outstanding editor with a real eye for talent. Thanks to all the other writers, editors and staff who worked very hard to create content with an identifiable sensibility and consistent intelligence and quality.”

So, what happened?

Bill Simmons was let go by ESPN in May.  Bill had creative differences with ESPN executives. This happens with great talent and management. One is trying to make great art. One is trying to make great money. Those two things many times don’t travel a parallel path.

Since his leaving, many of the great writers and editors that he brought onboard at Grantland, and stayed at Grantland, left ESPN, either to follow Bill to his new projects, or to other media outlets. These were really talented people, who worked at Grantland because of Bill Simmons.

You are not Bill Simmons!

In my career in HR I’ve seen a ton of talented people decide to leave companies I was working at, and they truly believed the company couldn’t go on without them.  In every single case the company did go on, and usually prospered.  You see, very few us are a Bill Simmons.

Bill left Grantland, and it failed.  Some would say, he was Grantland, or Grantland was him, either way, the site could not live without him.

You probably don’t have one employee in your entire company that is that important that if they left the company would fail to go on without them. Most of us are in similar situations.  Your executives know this as well, even if they won’t admit it. The organization will live on without them. It’s a tough pill for us all to swallow, but it’s 99.9% true in almost all cases.

We are not Bill Simmons!

Which is to say, you don’t have a defining discernable talent that is unique enough to carry or bring down a company. That’s okay! The world needs ditch diggers, and lawyers, and accountants, and developers, and clerks, and trash collectors, etc. It sucks to replaceable. It’s just a fact of life for almost all of us.

Bill Simmons couldn’t be replaced.  That’s might be the ultimate job performance review you could ever have.  I’m so f’ing good at my job, if I leave this place will fall apart.  We all want to believe we are that person, but we aren’t!

 

What is your Organizational Expiration Date?

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We got home from vacation recently and like most families we were foraging through the cupboards and refrigerator to make dinner our first night back home.  I poured some milk for my son, and he asked me “is that milk alright?” Like somehow I hadn’t considered its feelings, but he mostly meant was it still good.

Sure the expiration date had passed a day, or so, prior, but I did the Dad smell test, and that milk was more than alright!  He wasn’t in agreement, so our “alright” milk took a trip to never-gonna-get-drank-land down the sink.  Expiration dates on food are great. They help us understand when something goes bad, protects us from ourselves and what we think is good and bad, which can be subjective.

All this makes me think that we should have expiration dates on our employees!

It was recently rumored that Detroit Tigers Manager, Brad Ausmus, is probably going to get fired after this season.  He was a popular hire two years ago and led the Tigers to the playoff.  This year, though, the Tigers have not met expectations, with a team filled with high price talent.

So, why has his expiration date come up?  It’s all about expectations.  Once you gain success, it’s not good enough to maintain that success or, G*d forbid go backwards, you have to keep getting more successful.  The only way Ausmus get’s more successful is to win the World Series, which is tough to do.

There are a number of other reasons people should have expiration dates with organizations; these include:

  • Chronic Average:   This is for the people who just never really do anything- they just exist in your organization.  After a while, they need to just go exist at another organization.
  • Convicted Idiot: This is the person who makes certain bad decision, so bad, that their expiration with your organization must come up. Think, hitting on the bosses wife at the holiday party, or worse!  Probably can’t legally terminate them, but they need to go someplace else.
  • 1997 Top Salesman/woman:   This happens way to much – yeah, you were top sales person a decade ago, either get the trophy back or give another organization your attitude!  We tend to keep them around because we are hoping they’ll regain their top form – but they don’t – let them expire.
  • My Boss Is Dummer than Me: An organization can take only so many of these, for only so long – Ok, you win, go be smarter than us someplace else.
  • No Admins Left To Sleep With: I’m hoping the title of this one explains it as well – otherwise you might have reached your HR expiration date at your organization!

What if a drug could save your career? Would you take it?

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It seems like daily we are bombarded by stories coming out in the media of professional athletes who are caught taking performance enhancing drugs.  They risk their entire career by taking these drugs and getting caught. This week and next NFL teams will cut down their rosters, and many players will lose the one job they’ve worked their entire life for.

I’ve often wondered if I was in that position, being a professional athlete making millions, would I take PEDs to sustain or grow my career?  I can’t initially say I wouldn’t.  I’m always thankful for not having been put in that situation. I’m extremely competitive; I’m not sure I would have the will power not to take PEDs if I thought I was failing.

Slate had a great piece a while back about a former professional football player, Nate Jackson of the Denver Broncos.  Nate was a tight end and was cut from the roster after 6 years and turned to PEDs to get back:

“I sit down in my locker for the last time. It was always a bit out of sorts, full of clothes and shoes and tape and gloves, notebooks and letters and gifts. Do I even want these cleats? These gloves? These memories? Yes. I fill up my box. Six years as a Denver Bronco. Six more than most people can say. Still feels like a failure, though. So this is how the end feels? Standing in an empty locker room with a box in my hand? Yep. Now leave.”

That’s it, right?  It’s the fear of losing all that you have.  It doesn’t matter if you’re rich or poor, fear of losing what you have is a powerful adversary.

I’ve seen a grown man, with a wife and children, and a strong member of his church, sit in down in front of me and lie to my face, because of this fear.  You don’t have to be a professional athlete.

I completely understand this fear, and why athletes do PEDs.  So, I’ll ask you the question, if tomorrow you had a choice, lose your job or take a drug that will save your job, would you do it?

Hit me in the comments.  I have a feeling many people will say they wouldn’t.  I’ll let you know right now, based on my experiences, I’ll be skeptical.

Saying you wouldn’t tells me potentially two things about you:

  1. You don’t have fear of losing your job because you have another source income (I run into a lot of women who ‘become’ consultants and talk about how you have to ‘do what you love’, all the while having a husband who is paying the bills);
  2. You lack self-insight and/or haven’t ever experienced this fear of loss.

I guess, in a round about way, I answered my own question about what I might do facing the end.  Fear sucks – remember that HR Pros.

HR Never Wins the Dress Code Game

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You probably saw this last week when the internet got all hot and bothered over a 17 year old girl who worked at JC Penny got sent home for a dress code violation. She tweeted out a picture of herself dressed in JC Penny bought ‘career’ apparel that she was wearing at the time (see pic above). The only place where I see this being dressed appropriate for work is probably Hooters, but you know me, I’m super ultra conservative right winged nut job, so what the hell do I know…

Many wanted were angry over what they saw as a double standard, although I’m not sure what that double standard is. I would have been more upset over a 17 year old boy wearing this outfit to work than the girl!  I would have sent both home, so there goes your double standard.

The real issue here is that JC Penny labeled this outfit ‘career apparel” to the customers, but didn’t find it career appropriate for their own associate. If JC Penny is labeling this outfit on their shelves appropriate work wear, why is it inappropriate work wear for their own employees?

Well, I have some reasons:

1. It’s tight and revealing for the average customer of JC Penny.  The average age of a JC Penny shopper is 103 years of age.  The last thing an old person wants to see is a fourth of July wannabe stripper.  That’s knowing your customer base.  I’m sure if she was working at Hot Topic, she wouldn’t have been sent home.

2. There a difference between marketing and operations.  Just because marketing is calling something ‘career appropriate’, doesn’t mean your HR and Operations folks will feel the same way.  Welcome to the reality of working in a corporation. People aren’t always on the same page, and that is a bad thing.

3. 17 year olds have no ability to understand the broader picture of the corporate politics at play here.  It’s too bad someone couldn’t have better coached this young lady on how to handle this situation to have a better impact for herself and fellow employees. Going nuclear wasn’t the best option for her.

4. HR never wins when it comes to dress code, because of these kinds of issues.

HR should give up the dress code policy whenever it’s an option and let your operations team own it. They know their customer base. They know their work environment. They know their employees.  Let them build a dress code that works for them, and trust they’ll do what’s right for the organization.  I’ve done this three times in my career, and all three times it worked out wonderfully, and I didn’t ever have to deal with dress code ever again!

Hiring Is About To Get Really Difficult!

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One thing was abundantly clear from speakers and thought leaders at SHRM 2015, hiring is hard, and it’s about to get much harder!

That isn’t good news for any of us in HR and Talent Acquisition. There are two forces that are currently happening that are making hiring more difficult than it has been in over ten years:

  1. Solid economy and job growth.
  1. Baby Boomers leaving the workforce.

This isn’t earth shattering information, we all kind of new this was happening.  The issue is we are now all beginning to feel this in every part of the country and in almost every job category.  This means some things are going to happen, and the top HR and Talent Pros are already preparing for these:

  • Wage Growth: CareerBuilder CEO Matt Ferguson spoke at SHRM on Tuesday and had some great data showing that organizations see wage growth of around 5% in 2015, and similar in years to come. Are you budgeting 5% increases? I’m guessing not!
  • Recruitment Process Challenges: How many steps does it take to apply for a job in your organization?  If it’s more than two, you’ve got problems!  Can someone apply for a job online with your organization without having a resume? Why not?  Matt also showed data from CareerBuilder showing 40% of HR and Talent Pros have never applied for one of their own jobs to better understand the true experience!
  • Technology Challenges: Do you have a way to reengage candidates in your system on a regular basis?  A system that allows you to let great talent know, that you already have in your system, when you have an opening that fits them? It’s called CRM, and only about 20% of companies have technology that can do this important recruitment marketing function!
  • Job Design Challenges: Too many of us are working and designing jobs like we are living in a society that was pre-internet, pre-ultra connected. We still think we need employees sitting in front of us from 8-5pm, Monday thru Friday. If they aren’t sitting in front of us, they must not be working! Indeed shared that 80% of job searches on their site include this single word: “Remote”!  Are you adjusting those jobs that can be flexible?

Those organizations that believe they can recruit and get talent like they have been doing for the last couple of decades are going to fail.  It’s really that simple.  Talent attraction will be a powerful strategic differentiator for organizations over the next decade, like almost no other time in our history.

The good news?  At no other point in our history do have access to the information on how to be successful!  Twenty years ago, doing great talent acquisition was mostly trying stuff and getting lucky.  In today’s world you can learn easily how the best organizations are attracting talent at conferences, on websites, in blogs, webinars, etc.  There are so many sources of this information, that we now have no excuse to improve what we are doing.  We just have to do it!

 

Do Demotions Work?

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Quietly, Brian Williams returned to NBC last week. Not in his usual spot of nightly news anchor, but in a demoted spot, for less pay:

The embattled former NBC Nightly News anchor has been demoted and will receive reportedly less money in his new role, The New York Times reported Thursday.

Williams is being replaced by Lester Holt, who took over for him after he was handed down an unpaid six-month suspension for making factually incorrect comments and “misremembering” details spoken about on-air.

The newspaper reported that Williams will receive “substantially” less money when he returns to the network as a breaking news and special reports anchor for MSNBC, a division of NBC. He had been making at least $10 million a year for the last five years.

It begs the question, do demotions work?

They certainly aren’t popular. Both, employers and employees, dislike demotions.  Employers feel like if they demote an employee they are just giving them notice to go find another job.  Employees feel like a failure and that the organization is probably just trying to push them out the door. In my experience demotions rarely work.

What kind of demotions work?

There are times when you promote a good worker into a new role, a promotion, and both you and the employee think it will be great, but then it ends up not being great. The employee can’t handle the new role, you did a bad job preparing them, there were other organizational issues at play, whatever the reason, it’s not working. This happens more than you realize, but we usually just end up firing the employee for performance, or they see the writing on the wall and take off before you get a chance to shoot them yourself.

I always find it ironic when I hear about this type of turnover. I’ll ask, “was this person a good, solid employee before they got promoted?”  The answer is always yes.  They wouldn’t have gotten promoted if they weren’t. So, then, why did this person have to be a turnover statistic? Why couldn’t we figure out how to get them back to a position where they were productive and successful again?

Modern organizational theory doesn’t allow for this.  We don’t believe that a person will ever want to go backwards in their career. Once they have been promoted, they will not want to go back into a position they had prior, and they definitely don’t want a pay cut!  We assume this to be true. Also, it might be true in many cases. So, we take a ‘good’ employee and terminate them or let them just go away on their own.

I think the only way you make a demotion work is if you set it up within your organizational culture that this ‘demotion’, going back into a very important role in the company, is something that happens here.  We want to challenge people, and sometimes those challenges won’t end well.  That’s okay, we still love you, and respect you, and we want to get you back on a path of success.

This conversation has to happen, not after failure, but before the person is ever promoted.  That moving along the career path here, at our organization, isn’t just up, it’s down, it’s sideways, etc.  We are going to constantly want to get you into a ‘role’ of success.  Yes, failure happens, but we will want to get you back to success as fast as possible.

The reality is, people don’t stay around if they’re failing.

Brian Williams is damaged goods, so he accepted the demotion.  He’s talented. He’ll get back on the horse, show his value, and then he’ll go someplace else.  NBC is giving him an opportunity, but this kind of demotion doesn’t usually end well, for the employer.

The Secret to Employee Retention

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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 progressive and 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 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, where we tend to overcommunicate 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 used 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 “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.

 

The Number One Reason Hires Fail

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“Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid.”

Albert Einstein

Its about that time when the HR conference season gets into full swing, so I’m beginning to prepare myself for the hundreds of conversations I’ll have with great HR Pros all over the world.  One thing that I will hear over and over, and more than anything else is: “HR just doesn’t get…”  To be honest,  I think HR gets a whole bunch, but I think many of us lack the courage it takes, at the right time, to show how much we actually get.  So we sit there with our mouths closed, and others then have this perception we don’t get it.  But we do. We just weren’t able, or ready, to put our necks on the line, at that moment.

I do agree, though, that there are still certain things we struggle with in HR.  For me, the above quote from Albert, sums up what we still struggle to appreciate in HR. We hire people for one set of skills then upon arrival, or at another point in their tenure, expect them to perform a different set of skills.  This behavior happens everyday in our organizations. It’s a classic reason at why most people fail in your organization.

I bet if you went back and measured your last 100 terminations in your organizations, 60% of your terms would fall into this category:  person wasn’t performing, but the job they were asked to do was different from what they were hired to do originally.

So, what is it that we still don’t get in HR?

We don’t get the fact that we hire for a certain set of skills and the job changes, so we now need a new set of skills.  Training and Development are still living in this dream that they can drastically change adult learners by having a 4 hour training session and having each participant sign a sheet saying they received the training. Then, we all sit around a conference table analyzing our turnover and wondering what happened, and why all these people magically turned into bad performers.  It’s not them, it’s us!

So, what can we do about it?

The first step is realizing HR, and the organization, are part of the problem.  You can’t hire a bunch of fish because you need great swimming skills, then change the skill need to climbing and expect your fish to turn into monkeys.  It has never worked, and it will never work, even if you change your department’s title from Training to Organizational Development.

So, do you just fire everyone and start over?

Maybe, if the skill needed to change is that drastically different. More realistically, we need to have better expectations on the amount of time and effort it is going to take to get people back to “average” performance, not “great” performance.

Setting realistic expectations with your operations partners will give you a better insight to what route your organization is willing to suffer through.  Either way, there will be some suffering, so plan on it and prepare for it. Then go buy a bunch of bananas, because if want those fish learn how to climb, they’re going to need a lot of incentives!