Wage Growth Means You Usually Screw Your Female Employees!

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I’ve been talking a lot lately about how women are getting paid less. Much of it is legitimate, some of it is not. Either way, it’s about to get worse!

Take a look at this chart from Business Insider, wages are growing at a fast rate:

Screen Shot 2016-07-08 at 2.12.49 PM

What does this mean?  You are about to start paying your employees and new hires more. This is bad news for women, since historically two things happen that screw them over in times like this:

  1. They’re less likely to leave their current organization.
  2. They’re less likely to negotiate higher salaries when starting a new job.

How does wage growth hurt women in these two cases?

First, if you stay at an organization, and don’t ask for more money, most organizations aren’t just going to give you money. At the same time, the organization is hiring new people, in the same positions, for more money! Now, you would hope that organizations would do the right thing, and make everyone whole, but we know this doesn’t happen as often as we would like.

Second, studies show women are less likely to negotiate for higher salaries when they are starting a new job. This becomes an issue as some organizations will pay whatever it takes in hard to find talent environments, meaning those who are tough negotiators are going to come in at higher rates. This usually means men will make more in the same or similar positions.

As wages grow fast, and talent is hard to find, many times in large organizations these inequalities will get missed.  This is part of why women get paid less. Things happen fast, a hiring manager has a shot at a great male developer and they pay more than others in their group. They know it’s more, but they’re desperate. They think they’ll take care of it when things slow down, but we know, things never slow down!

HR pros need to be very careful to watch incoming salaries and salary changes during these times of high wage growth. The market compensation is changing so fast, you might have to look at this quarterly, or even monthly, depending the industry, location, or position.

You already have a problem with paying females less, don’t allow fast moving markets to make your problem worse!

#DisruptHR – Failure is the New Black

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I’ve been fairly vocal over how I feel about the concept of welcoming failure into your life. It’s kind of like welcoming heroin into your life. It feels great when you first do it, then it quickly ruins you! Failure is heroin to your mind and confidence!

You are being sold a giant line of bullshit!

You have been told that ‘you just need to fail more’! If you just fail, you’ll find success! Failure is a good thing!

It’s not!!!

You know what happens when you actually fail?  It makes it easier for you to fail again. You’re actually teaching your mind and body how to fail! The way to success is not through continued failure. They way to success is by finding small ways to succeed. Giving your mind and body the pathway, the confidence it needs to succeed big.

Statistically, you are more likely to fail, the more you fail! It’s simple mathematics. Have you heard the statement, “It’s hard to beat a team three times in a row!” This is said in sports a lot after one team beats another team two games in a row. Statistically, it’s actually more likely you’ll beat a team the third time if you beat them twice already, but we so want to believe it’s not true!

Failure + Failure + Failure + Failure = crippling fear that you’ll never get it right for 99.99% of people.

Small success + Small success + Small Success = eventual big success!

It’s how we teach a child to do something new. You don’t teach a child to ride a bike by throwing them down the largest hill on the block and just let go. They’ll crash. They’ll crash again. They’ll crash again. Eventually, they’ll never get back on that bike!

We start small. You get on and I’ll hold and I won’t let go! You go a little ways. You show them that it’s fun. Eventually, you build up to being able to let go, but you make sure it’s by grass, so if they fall, hopefully, they fall into the grass.

Little successes. Lead to big successes.

That’s what my DisruptHR video is all about – check it out!

Failure Is The New Black | Tim Sackett | DisruptHR Talks from DisruptHR on Vimeo.

How To Build a Dream Team at Work

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If you pulled up any sports-related website or watched any sports news show on TV in the past few days you know that NBA player Kevin Durant left Oklahoma City Thunder and accepted a free agent offer to go and play for the Golden State Warriors.

It’s a big deal because Golden State was already pretty good, now, with Kevin, they look to be unstoppable! Basically, Golden State has built a team with arguably 4 of the top 20 players in the NBA on one team (Durant, Curry, Thompson, and Green). Most ‘great’ teams might have three top players, no one in history has had four when all playing at their peak!

Building a dream team seems to only happen in sports, but you hear talent acquisition leaders and executives talk about it a lot. How do we build a sales dream team, a marketing dream team, a design dream team, etc.? We all want to be a part of a dream team, or be a part of building a dream team for our organization!

So, how do you build a dream team?

1. You have to know how you want to ‘play’. You have to define what it is you want to do. An outcome. A style. “We want the best designed UX of any platform that supports patient safety in a hospital environment.” As an example.

2. You have to know who is the top talent in your industry that can accomplish the outcome you desire.  This is actually the hardest part of building a dream team in a non-sports environment because we usually don’t have comparing statistics or analytics to even start to understand who the best is.

3. You have to be able to recruit those individuals to your team. This is actually easier than in professional sports. In pro sports it usually takes one or two superstars to make a decision to get together, then they help recruit the others. In the real world, it helps to have a well-known professional, but it’s not necessary if you can sell the right story, compensation, and location!

4. Just having the ‘best players’ doesn’t guarantee success, they have to buy into the goal of the entire organization. This means having leadership with a clear vision that goes beyond the outcome. Yes, we want to win a championship, but we want to win that championship together, utilizing all of our strengths. This is another really tough thing in a real-world setting because it takes great visionary leadership.

5. Having a ‘Dream Team’ is about “Team”. You’ll have great talent and that great talent needs to understand that they go nowhere without those who support them to do great work. So, your dream team members have to be servant leaders. If they have great talent and treat people like crap, they won’t end up being a great talent!

I love it when great talent makes the conscious decision to get together and try and do something great. Some people don’t. They would prefer to see one great talent try and do it on their own. I love watching highly talented people get together and see how far they can push the levels of greatness! That’s what dream teams are all about, the dream.

Why Doesn’t Corporate Talent Acquisition Change The Way They Pay Recruiters?

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For the most part, Corporate Recruiters are paid a salary. That salary ranges widely from organization to organization, industry, function and location. I’ve seen corporate recruiters who make $40,000 and ones that make $150,000. The $150K corporate recruiters are overpaid, let me just throw that out there right off the bat!

Agency recruiters are usually paid some salary and a combination of commission and bonus. The average goal for an agency recruiter compensation model is 1/3 salary, and 2/3’s bonus and commission. So, if your base agency salary is $30K, the hope is you’ll get to $60K through commission and bonus. It takes some time to get to $90K-ish total, but it’s fairly common for agency recruiters to make six figures. Again, this depends on what kind of agency, location, commission structure, etc.

On average, you’ll see more six figure recruiters working on the agency side, then you’ll see on the corporate side, by a wide margin.

So, are agency recruiters worth more than corporate recruiters?

Worth is defined by those paying! What I’ll say to this question is agency recruiters are more likely to ‘prove’ their worth than you’ll see on the corporate side. Which begs the question why has corporate Talent Acquisition not adapted their pay structure to something similar to that of a recruitment agency?

I’ve run both corporate TA shops and agency shops. I can tell you, realistically, there is no reason, that makes sense, not to at least test different pay structures on the corporate side! My goal in was always how do I get my corporate recruiters to be 2/3’s salary and 1/3 bonus. I wanted to make sure there was some performance-based compensation as part of their total compensation.

Here are some reasons I ran into each time I changed the pay structure of corporate recruiters”

  • “If you change the pay structure the best recruiters will quit!”
  • “We can’t change the salary structure, it’s the law!”
  • “Paying bonuses to recruiters in a corporate setting isn’t fair to the other people in HR!”
  • “The executives will never agree to performance-based pay in a non-sales role!”
  • “We want our recruiters to be hiring manager focused and paying bonuses would change that!”

All of these excuses are complete B.S.!

I did have Recruiters quit everything I came into an organization, but not because of pay. They quit because I made them actually recruit for the first time in their life! They had to pick up a phone, they had hard measures and weekly and monthly goals, they quit because they weren’t recruiters, they were administrators. But, being paid like they were recruiters.

Corporate TA Leaders don’t change their pay structure because they don’t know what to change it to, and change is scary!

I get it. It was the first time I did it as well, but in the long run, we had higher performing recruiters, better hiring manager satisfaction and we flat out performed better as a department, as compared to what we did previously.  Here are some tips to making this change:

– Make sure your high performing recruiters can actually make more money in the new model.

– Make sure low performers make less in the new model.

– Set black and white measurable goals before changing pay, and work with these goals for a while before aligning them with compensation.

– Be flexible to change. The first time I did this I found major holes and had to make some immediate changes that were fair to the recruiters and the organization.

– Communicate with your team and executives through this process.

– Have written outcomes you want to see from this change and watch those metrics closely.

– Paying per hire is never a bad thing, just make sure the pay matches the effort of the hire. Don’t pay the same bonus for hiring an admin as you do to hire a Java Developer. I tried to equalize this by the time and effort it took to fill each position. If it took 1/10 the time and effort, the bonus was 1/10 the amount of a full effort position. Again, you’ll have to test and adjust this for your organization. Don’t write it down in stone, to start!

– You’ll never really have to have a performance management conversation again! Oh, you want to make more money….

Recruiting, even in a corporate setting, is a sales type role and should be paid as such. There is no reason why you can’t have a more effective pay structure in your corporate TA department.

Want some help in getting this off the ground?  Contact me!

 

 

2016’s Newest Benefit – Baby Sign-on Bonuses!

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According to this USA Today article, the U.S. birthrate is in sharp decline and is at it’s lowest levels in the past 25 years.   Here are probably a few facts you don’t know:

– Projected 2013 birthrate in the U.S. is estimated to be 1.86

– Birthrate needed to maintain a population over a 20 year period is 2.1

Why should this concern you?

There are a number of reasons one might be concerned that you need as many young people as old for the simple fact of having enough young people to take care of your older population.  If you turn that equation upside down (Taiwan 1.1 or Portugal 1.3) you have a society full of older people and not enough young people to fill the jobs needed to keep running your society.

The U.S. already has 3 Million jobs left unfilled because of lack of skilled employees today. Imagine if you now have millions of fewer workers to even choose from, and by the way, skilled workers aren’t coming from other countries because their societies are growing and need them as well.  That is what our country’s employment picture will look like in 2032.  I know for many people right now this sounds very good – because of our high unemployment – but this will be

That is what our country’s employment picture will look like in 2032.  I know for many people right now this sounds very good – because of our high unemployment but this will be an HR/Recruiting nightmare for those young HR/Talent Pros starting out their careers in the next 20 years.

Being the Futurist that I am, I’ve already provided a solution to this problem back in 2011 over at Fistful of Talent, Should You Encourage Your Employees To Have Babies, check it out. Basically, my advice remains the same as U.S. employers we need to create a positive, encouraging environment for our employees, with family-friendly policies that make our employees feel like starting a family is a good thing, and that if they do start a family their job and ability to get a promotion won’t be compromised.  This is not the case as many U.S. employers right now for both men and women in the workforce.

As HR Pros and organizations we tend to think this isn’t our issue.  It will take care of itself.  But as we look at countries with low birthrates the issue doesn’t take care of itself and those countries have a worker crisis going on right now.    We need to change our ways right now. We need to be family friendly employers. We need to, as HR Pros, be concerned and find solutions for our employees around daycare, flexible schedules and other practices that will help our employees with families.   I know it sounds a bit the-sky-is-falling-ish, but the numbers don’t lie we are headed for some of the hardest

I know it sounds a bit the-sky-is-falling-ish, but the numbers don’t lie we are headed for some of the toughest hiring this country has ever seen.

One solution I’ve thought of, that I didn’t bring up in 2011, is baby sign-on bonuses!  We already do it for college students! I think we start doing for babies of our best employees.  I mean if parents can arrange their kid’s marriage, what stops us from arranging their first job?  Nothing! That’s what.  Imagine how happy your employees would be to cash a $20,000 check to help with baby expenses for the simple task of forcing their kid to come to work with your company upon college graduation.  It seems so simple, I’m not quite sure why no one has started this yet!

It seems so simple, I’m not quite sure why no one has started this yet!

What if it’s impossible to fix the Gender Wage Gap?

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I love the HR and Talent data analytics platform Visier and have been following them for years. Recently, Visier released a study called the Visier Insight’s Report: Gender Equity that I found fascinating!

Basically, Visier claims they discovered the main reason behind the gender pay gap and they titled it the “Manager Divide” (You can download the report here). The Manager Divide—an underrepresentation of women in manager positions—significantly contributes to the gender wage gap. To break it down simply, women begin to leave the workforce around age 26 to begin having babies. At this point, the wage gap begins and women never catch up!

Screen Shot 2016-06-28 at 2.33.25 PMYou can clearly see it in this graph from the Visier report. Men and women virtually earn the same up until age 26, in fact, women earn slightly more. At age 26 there is a huge split in the graph, and women don’t even start to close that gap until close to retirement.

Visier gives a bunch of great ways for organizations to close the gap:

– Implement the “Rooney Rule”: for every manager position you have open to fill, consider “at least one woman and one underrepresented minority” in your slate of candidates.

– Implement blind screening, removing names (or other gender identifiers) from resumes when selecting candidates for interviews.

– Increase measurement and awareness of gender equity in the rollout or implementation of HR policies, including manager promotions and hires, and compensation policies.

– Support meaningful paid parental leave that is equal for both women and men.

– Ensure it is socially acceptable for both men and women to take time off to care for their children.

All good stuff, right?

Here’s my question: if this gender wage gap phenomenon happens because of a natural cause (childbirth and rearing), how does any of this change it?

It doesn’t. The majority of women are till going to leave the workforce, on average between 26 and 36, to begin raising their family. Whether these women leave for 9 months or 9 years, they’ll return to the workforce with that much less of experience.  So, they’ll always be playing catch up, for the most part, to those men who didn’t leave to have babies and raise them.

The reality is, because of women leaving to have babies and raise families, they’ll always be a pay disparity between genders. Should it be 21% on average? No. That’s why we need to focus on the real issue at hand.

In most organizations of any size, you have females making less than men who are in the same position with basically the same experience, performance, and education level. The only reason they are making less is because they’re a female. That’s the real issue.

How do you fix this?

The old fashion way. It’s a big project. You’ll have big spreadsheets and you’ll have uncomfortable conversations with managers who gave larger raises to men, for no reason other than their bias. It’s an uncomfortable project, but it’s the only way to solve the real issue. Painstakingly one position, one department, one person at a time.

You can do high-level analysis in your organization and you’ll find a gender pay gap. That’s natural, the Visier report pointed this out. It’s going to continue to happen because we live in a society and culture where women still do most of the heavy lifting when it comes to childbirth and raising the children. You have to get into the weeds to find the real issues within your organization in terms of gender pay gap, not a 20,000-foot flyover.

Every large organization I’ve ever worked in had gender pay issues within specific positions and departments. It wasn’t rampant, but it was there. A word of caution, don’t point fingers at fault. Just work to solve the problem. It happened, how do we move forward and fix it. Placing blame will cause stalls and fights, you don’t want to be a part of at an executive level. Just find ways to quietly fix the problem and make things right.

 

In Recruiting, Content Is NOT King!

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Something happened over the past five years. Content marketing, which is a brilliant way to connect with a customer base and build sales, became very fashionable in the recruiting space.  So much so, that I constantly read vendors telling in the trenches Talent Acquisition pros and leaders:

“In Recruiting, content is king!”

No. No, it is not! In recruiting, activity is king.  I think the confusion comes into play with people treating employment branding and recruiting as the same thing. They’re not the same thing. One build’s awareness of who you are and what kind of employer you might be, possibly you can stretch employment branding into awareness of your job openings as well.

Content in employment branding is important if you’re doing content recruitment marketing. Again, you don’t have to do this to do employment branding. Many organizations build their brand without content. If you have a great consumer brand, you are less likely to need content to build your employment brand.

I’m not against producing great content to build your brand, believe me! It can be super helpful, especially if you don’t have a larger consumer brand behind you.

The point is you can be awesome in recruiting and never produce a single piece of content. I see so many TA shops missing this right now. The question is why? Why are TA shops believing that the only way to recruit is to build content and build an audience?

Employer Branding is a huge business right now! Organizations are spending millions of dollars per year to build, maintain and grow their employment brand. For huge organizations, or organizations in highly competitive environments, this is very important. For many organizations, this is a complete waste of time and resources!

The noise in the employment branding space is so loud right now, most organizations are not going to be heard. In that case, why are you spending the resources? You’re doing this because it’s easier than picking up a phone and calling a candidate! That’s recruiting.

Recruiting are the activities you do to hire people for the jobs you have open. Included in those activities are not only candidate attraction but candidate interaction. Candidate interaction, the function of a recruiter interacting with a candidate, might be the most forgotten skill in all of Talent Acquisition.

The skill of interacting with a live person is lost on most talent acquisition shops. Sure you can connect with candidates via email, messaging, text, twitter, Snapchat, etc. Eventually, though, someone has to speak to a live person. Someone has to close this person on coming to work for you. We, the talent acquisition industry, continue to spend less and less time on this side of our business, and it’s showing.

Great recruiting organizations are activity focused and activity driven. Sales funnel. Candidates come in the top, and hires come out the bottom. It’s not difficult. It’s not art. It’s a process. It’s metrics. Teach your recruiters to be able to engage live people on the front side, and you will see a great return on that investment in more hires. No content needed.

 

 

T3 – HR & TA Technology Startup Competition at The HR Tech Conference!

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I get to review some really great HR and TA Technology on a weekly basis. Many of those companies are just looking for a ‘shot’. A way to be heard, to let people know what they do and how it will help their organization. Well, this is it!

The HR Technology Conference is having a competition called, “Discovering the Next Great Technology Company”.

It will be a “The Voice” like a competition where each company that gets selected will be given a ‘coach’ to help them before the competition be prepared for their presentation, then at the competition, there will be voting and someone will be named the 2016 Next Great HR Technology Company!

Okay, I’m not a coach, but there are some other great folks who will be that understand the industry really well (Jason Averbook, Trish McFarlane, Madeline Laurano, George LaRocque, and Kyle Lagunas).

Here are the important details:

HR Tech startups can submit to be considered and get more information at:

http://www.hrtechnologyconference.com/ant.html

One that page you will find instructions, information, and the link to the application forms. There is no charge to apply, but the deadline is coming up fast, so interested HR technology providers should not hesitate in applying.

And one last note, because I know I am going to be asked – the “Awesome New Technology” session at the Conference for larger, established HR tech companies will once again be held at the event, and it uses the same application form at the same link as above. The HR Tech Conference has not, (this year anyway), given that session the reality TV makeover just yet.

What’s In It For You? 

1. You’ll get some great free advice from some of the top Analyst in our industry.

2. You’ll get to present, on stage, your product in front of one of the most attended sessions at HR Tech!

3. It’s great publicity for you to even be selected to present, to be one of those “next great HR Tech companies”, it’s even better if you win!

The Deadline is June 30th!  But, a little HR Tech Conference birdy told me that they’ll extend registration for this competition an additional week! So, get on it today and apply. It doesn’t cost anything and only takes a few minutes to apply.

5 Things You Should Be Doing in June to Prepare for Your Open Enrollment in the Fall

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It’s a beautiful day here in Michigan! 75 degrees and sunny, not a cloud in the sky. In the north, we get only a limited time to enjoy summer, so when it finally arrives you better believe I’m taking full advantage! (For, me that’s tending to my flowers and doing some yard work.)

What’s my point? The last thing you probably want to be doing right now is brainstorming ways to prep for open enrollment!  But guess what—you don’t have to…Because, while I’m still here in the office, I’m going to do it for you, so you (and I) can spend a little more time enjoying this great summer weather!

Here then is my list of Important OE Stuff You Should Be Doing Right Now:

  1. Schedule employee roundtable meetings to get the feedback you need on the last benefit design. Make it fun. Provide an ice cream sundae station! It will work twofold: you’ll get the feedback you need to start your next design, and people love ice cream! You connect talking about benefits with having a positive experience. Simple psychology is the best psychology!
  2. Do a mid-year follow-up with your benefits broker.They should already be on top of this and begging you to go out to lunch, or golfing, but if they haven’t, remind them. Specifically, this is a great time to look at your brand-name drug utilization and talk about some strategies to increase generic use and reduce this cost to the organization.
  3. Executive cost foreshadowing should be happening right now.At this point in the year, your broker can have a pretty good guess at where your new premiums are going to come in at, and what this might mean to your new benefits design. Schedule a meeting with the C-Suite to give them some insight now, so they’re prepared when budgeting season comes. The best way not to ‘shock’ an executive is to get to them early in the process.
  4. Deliver your own Summer Tips and Tricks communication to your employees on proper benefit utilization!Summer seems to be the time when people find their way to the emergency room when maybe the could have gone to urgent care. These are also a great time to highlight wellness initiatives since we are all trying to get into those swimsuits before vacation! Simple reminders like these save the organization money and keep your most important messages top of mind to your employees.
  5. Schedule an OE marketing session before all the summer vacations start.As benefit pros we spend a lot of time and care figuring out what to say to our employees. What we tend to figure out too last minute is HOW we want to market these changes to our employees. Summer is a great time to not only think about the how—but to play around with some new ideas. What if you texted employees tips about OE on top of emailing them? What if you decided to send postcards to everyone’s homes? Now’s the time to figure out what you want to try—and establish a schedule for getting it done in time.

(Speaking of schedules, if you want even more ideas on what to be doing in June and July for OE, check out this excellent post—What to Do 12-16 Weeks Before OE, by the folks at Jellyvision.)

Anyway,  I really do believe you can never be too prepared for Open Enrollment. A little extra effort now will lead to a great experience for you and your team come fall—and let you have more fun this summer, knowing you’re ahead of the game.