The Single Biggest Truth in Hiring That No One Will Admit!

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I’ve had my mind changed about a lot of things over the past decade of writing. I look back at posts I wrote 5 years ago, and think, “Wow, that was a stupid way of thinking!” I’ve also consistently written about things that I can’t prove, but I know to be true with every ounce of my being.

So, every time I find data that confirms my bias, I like to share it! It makes me think I’m still correct in my viewpoints!

The more attractive you are, the more opportunity you’ll get in your job choice and career! 

Think it isn’t true? Here’s the latest study from 2021, from three PhDs in Economics from Cal and the London School of Economics,  “Do Looks Matter for an Academic Career in Economics?” Want the short answer? Yes! Of course, don’t be stupid!

“Using unique data on Ph.D. graduates from top economics departments in the United States we test whether more attractive individuals are more likely to succeed. We find robust evidence that appearance matters for job outcomes. Attractive individuals are more likely to study at higher-ranked Ph.D. institutions, are more likely to find themselves in private sector jobs than in government jobs or in academia. Within academia, attractive Ph.D. graduates are more likely to be placed at higher ranking institutions. More surprisingly, appearance also predicts research productivity on the job.”

What did the study find?

  1. The more attractive you are, the better schools you’ll get into.
  2. The more attractive you are, the better jobs you’ll get.
  3. The more attractive you are, the better you’ll actually perform!

Now, come on. I get pretty people will get into better schools and get better jobs, but why in the hell do pretty people actually perform better!?! This has to be a flawed study, right!

“Pretty Privilege” is alive and well, at least in the United States, where this study took place. Maybe in other countries, like Canada, ugly people still have a chance. But, I’m doubting it. (Also, shout-out to Maria Alvarez for the “Pretty Privilege” title!)

Can people really have “Pretty Privilege”?  (FYI – the title of my upcoming autobiography is, “Of Course I Have Pretty Privilege, Just Look at Me!”)

So, I’ve laid out my theory of this before, but how soon people forget. So, here it is again:

Step 1: Pretty person gets a great job. Is Successful.

Step 2: Success and Good Lucks, get you a great choice of Mates.

Step 3: Pretty, Successful people get married and procreate.

Step 4: Pretty kids get into the best schools.

Step 5: The cycle repeats.

So, yes, of course, there is pretty privilege. So much so, we pretty people actually talk about it behind the Uggs backs! There are only two privileges stronger than Pretty, being white and being rich! If you have the trifecta-privilege, well, you’re basically unstoppable.

Now, some will want to argue. “Tim, attractiveness is in the eyes of the beholder!” This is usually said by a person who is a six, or lower, on a scale of 1 (troll) to 10 (goddess). To which I could lay out countless studies on attractiveness and call bullshit, but hey, you’re not very attractive, thus, not really my competition, so believe whatever you want, I’m 2/3 of the way to the trifecta!

So, if you have never read my stuff and this is the first time, and you’re ugly, right about now, you’re pissed! So, let me say, the paragraph before is half-joking, I’m 3 for 3, baby! 😉

What can you do if you’re not Pretty? 

First, if you’re asking yourself this question, I’m sorry, you should have more confidence, high confidence is super pretty! But, I get it. We all can’t be the belle of the ball.

If you don’t have Pretty Privilege, you need to do some other stuff extraordinary well. Be way smarter. Grind and Hustle way harder. Network way better. You must outwork the Pretty People. Invest a lot in your outward appearance. You might not be super attractive, but you can definitely be prettier than a lot of other folks! Be the tallest of the Seven Dwarfs, is all I’m saying.

Let’s break it down.

You and the people at your company responsible for hiring aren’t always hiring the best candidate. Mostly, they hire the candidate who can do the job, which also happens to be the best looking of the candidates they interviewed. All things being equal, hire pretty, is the strategy. I’m not saying it’s the best strategy, I’m just saying it’s the strategy most organizations follow, but would never admit to.

We see this in organizations all the time. You walk into an organization and you start to go, wait, I think there’s a problem, everyone here is way too good looking! Almost always, those organizations are super successful as well. Back in the day, the c-suite would call this “image”. We are upholding an “image” of the firm. What they were really saying was, you need to be prettier to hang with us!

So, keep ignoring Pretty Privilege if you want. It’s alive and well and most likely determining your next hire.

 

 

 

Do you know what you really want in your career?

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About 15 years ago I came home one day and said to my wife, “I can’t do this anymore”. It doesn’t matter what I was doing, I just couldn’t do that anymore. I knew it. Something had to change.

Steve Jobs is famously quoted as saying, “people don’t know what they want until you show them”, I think Henry Ford said something similar about one hundred years before Jobs. Both were talking about consumers, but in reality, it fits people in almost every aspect of life.

I find it really rings true for people in their careers. We think we know what we want. “I want to be a vice president by the time I’m 35”, I told my wife when I was 25 years old. I thought I knew what I wanted in my career. In reality, I was just title chasing.

I became a vice president and I found out I felt no difference in my career, and I definitely didn’t feel satisfied. So, a title was not what I truly wanted. What I discovered was I wanted to be in control. Success or failure, I wanted that on my shoulders. It didn’t matter what I was actually doing in my career, I needed control.

How many of your employees truly know what they want in life? 

As a leader, I find probably only about ten percent of those who you support will truly have an idea about what they want out of a career. The other ninety percent, are just like me, they think they know, but they really don’t until they’ve reached whatever goal they’ve set for themselves, then they’ll find out if they actually had any clue, or they were just guessing.

If we start with most employees have no idea what they want in their career, or at best they have an idea, but it’ll be wrong, it’s now up to leaders to help shape this path. It might be the only real thing we can do for those we supervise as leaders are to help guide them on their career path.

Employees don’t know what they want in a career until you show them. 

If you believe this is your job as a leader to show those you work with what their career can be, this really helps to crystallize what you do each day.

What I know from my experience is the best people I ever worked for had a vision and path they wanted for their career. That path was usually developed and born from a mentor or boss that took the time to care about this person enough to show them what their career could be.

I can point to four different leaders and mentors in my life who helped shape my path, and by the way, all said I was an idiot for my obsession with a title. I was too young to listen, and thankfully they were too smart to give up on me.

It’s your job as a leader to show your people what they want. Don’t ever assume that your people already know what they want, most don’t. They won’t admit this because admitting it makes you sound like a moron, but it shouldn’t stop you as a leader from showing them the possibilities.

What I find is the more you show them the path, the more they’ll gravitate towards it and raise their performance to meet it.

Ultimately, I find people want two things: 

  1. They want to be and feel successful in what they are doing.
  2. They want to feel wanted.

What Does Tim Sackett Actually Do?

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So, besides my beautiful wife asking this question, frequently, I get asked this question all the time! During the spring and fall conference season, I’m out and about all over the world speaking. At almost every stop I’ll have at least one person come up to me and ask,

“So, what do you actually do?” 

Ugh! It’s the single biggest failure of my life! How did I do so well to “brand” myself, but then have so many people not know what I actually do for my job?!

I probably should start each conversation like an AA meeting:

“Hi, my name is Tim Sackett, and I run a technical staffing company!” 

BTW, I think that’s actually Step 13 of AA! Staffing firm owners will agree with this!

That’s the real job. That’s the money maker. I run a recruiting shop! Like most of you, I have to go out and buy a recruiting tech stack that works. I need to decide if I spend money on Indeed, or LinkedIn, or ZipRecruiter. I need to hire and train recruiters. At the end of the day, I’m in the weeds finding talent.

Unlike most Staffing Firm executives, I can’t really hide. I’ve been blogging and speaking for ten years in our industry. When I meet with new clients who want to use my team, I try and tell them, “I think we’re better than most, but the one thing I can guarantee is I won’t lie to you, or take advantage of you! I’m too public! You could kill my brand overnight if I was one of those cheesy staffing guys selling you a load of bullshit!”

The name of my company is HRU Technical Resources. I own the company, now, but in reality, my Mom started the company in 1980. (Check out her profile pic from the 1st day! She looks like Farrah Fawcett!) She’s the original OG Recruiter! In her 70’s, she still could out recruit probably 99% of Recruiters in the world! Old school and proud of it! I like to tell people I was “born” into staffing, as my Mom started the company when I was a boy and I would sit on her bed as she made interview calls at night and watch TV with the sound off.

Want to work with me? I want to work with you! 

Here’s what we do:

  • Contract staffing – helping organizations for 40 years build that part of their company that they want to maintain as contingent to add flexibility to their workforce.
  • Sourcing Projects – we will your funnel with talent and let you do the recruiting
  • Project RPO – we bundle some critical hiring for you and do the entire thing end-to-end
  • Traditional Direct-hire staffing

But, wait! What else do you do? 

I also do a bunch of Talent Acquisition consulting with corporate clients as well, helping them build out their own recruiting tech stack and just flat out execute better when it comes to their own direct hiring and figuring out what’s the best way to get the most out of your recruiting team. It usually starts out like this, “Tim, can we talk? Our talent acquisition department is broken and we need some help!”

I’m also an influencer, advisor, and analyst in the HR Technology industry. I work with tech companies in a number of ways from brand awareness, to product marketing and development, sales strategy, etc. As a reader, you see this in the demos and reviews I do, over 100 per year, but behind the scenes, that’s actually working with these organizations in a number of ways.

So, yeah, I write a lot. I speak quite a bit. I do webcasts, etc. But that’s not the full-time gig. I wrote a post a few years ago titled “What would it take to get you to work 80 hours per week?” I don’t work 80 hours per week, but I probably work 60-ish. A lot of nights and weekends to make both my full-time and my side gig work.

The reality is, if I don’t work my full-time gig, my bills don’t get paid. That’s real life. So, let’s work together! I would love to get to know more of you and work with a bunch of you. Send me a note and let’s connect – sackett.tim@hrutech.com.

How do you go to the bathroom during a Zoom conference call? #HRFamous

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Traditionally, this is a very common and easy scenario. You’re in a conference room meeting, you need to use the restroom, like a freaking adult, you just stand up and quietly walk out of the conference room and do your business. Today, you’re on a Zoom conference, at home, what do you do?!

In episode 48 of The HR Famous Podcast, long-time HR leaders (and friends) Tim Sackett, Kris Dunn, and Jessica Lee come together once again to discuss having to go to the bathroom during a video call, fake commute routines, and what to do for a one year WFH anniversary!

Listen (click this link if you don’t see the player) and be sure to subscribe, rate, and review (Apple Podcasts) and follow (Spotify)!

Show Highlights:

3:20 – JLee tells the crew that her sister was born in Michigan, where Tim lives.  She can’t remember where in the state she was born, so we’re going to need an update on that!

5:45 – JLee brings up the Air Force One’s appearance at the inauguration a few weeks ago. Tim says that those shoes went for $5,000 on StockX!

6:30 – First topic of the episode: You’re on a Zoom call and you have to go to the bathroom. What are you supposed to do?

7:30 – KD thinks best practices are having all cameras on, but that complicates the bathroom issue.

10:00 – JLee sometimes gets ready for the day in the bathroom while on a video call. Can you hear the echo from people that get ready in the bathroom?

12:00 – Are you experiencing Zoom fatigue? Tim thinks it’s B.S. because there are just as many calls as before but some were not video. KD thinks that the number of video calls has declined since the earlier days of the pandemic.

13:30 – JLee mentions the rise of “fake commutes.” She misses the transition she used to get from being a parent to work/life throughout the morning.

16:00 – KD spends his “commute” time sleeping in instead of trying to recreate his work commute.

19:00 – Second topic: Silkroad Technology conducted a survey among office workers and executives and found ⅖ of office workers plan to resign because of how their companies handled the pandemic.

22:00 – KD thinks Silkroad is the Dark Web. Tim and JLee don’t know how to access the dark web and we want help! Tim and JLee are interested. 😉

23:00 – KD recommends reading the book American Kingpin by Nick Bilton about the creation of the dark web!

24:45 – KD and Tim are a little confused by the 40% of people who want to quit their jobs because they can’t think of that many companies that have really fumbled a Covid response.

28:00 – JLee thinks there needs to be some humility and grace for those trying to handle “unprecedented” times.

31:00 – It’s coming up soon that we’ve been working virtually for a year. An employee on JLee’s team mentioned celebrating the one-year anniversary and maybe getting a WFH gift for their teammates. JLee asked Tim and KD what ideas they have for a WFH gift.

36:00 – JLee’s brother-in-law went through a Gary V rabbit hole and found that he is bringing value to old sports cards.

The #1 Thing You Need To Do To Find The Job You’ve Always Wanted!

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Last week I got a call from an old work friend. He wanted to have a “virtual” lunch or cup of coffee.  He just left a position and was in transition.  Not a bad or negative job loss, just parted ways.  When you get to a certain executive point in your career, it’s rare that bad terminations take place. It’s usually, “Hey, we like you, but we really want to go another direction, and we know you don’t want to go that direction, so let’s just shake hands and call it a day, here’s a big fat check.”

Executives get this.  For the most part, there aren’t hard feelings, like when you were young and lost a job. I usually find that the organization the person is leaving from are super complimentary, and usually takes the blame for the change.  Executives in corporate America are like NFL coaches. You get hired with the understanding that one day you’ll be fired.  It’s not that you know less, or aren’t going to be successful in your career, it’s just that the organization needs change, and you’re part of that change.

Welcome to the show, kid.

My friend decided that he was going to find his next position not through posting for positions online, or trolling corporate career pages, he was going to have lunches.  About two per week, with past work friends. Let’s connect, no pressure, we already know each other and I want to catch up.

You see, in 2021 you don’t find great jobs by filling out applications in ATSs and uploading your resume to Indeed. You get great jobs because of the relationships and personal capital you’ve built up over your career.  Having lunch and reconnecting turn on a relationship machine. I believe that people, innately, want to help other people. When a friend comes to you with a situation, and you have something to offer or help, you will do that.

The problem is most people who are looking for great jobs don’t do this. They lock themselves in their home office and apply to a thousand jobs online and get upset when nothing happens. Great jobs aren’t filled by ATSs and corporate recruiters.  Great jobs are filled through relationships. Every single one of them.

Want to find a great job in 2021?

Go out to lunch.

2021 Workforce Report by @iCIMS – 84% of HR Pros Believe Their Diversity Recruiting Sucks!

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I love workforce data and you love workforce data, so I’m super excited to share my breakdown of iCIMS’s latest report on the 2021 Workforce. Of course, we anticipate there will be a ton around remote workers and virtual hiring, and we can also anticipate the level of focus on DEI hiring and culture initiatives are only going to increase in 2021.

Let’s breakdown the iCIMS 2021 Workforce Report: 

– iCIMS hiring data seems to point to a moderate economic recovery when you look at the overall job postings, hiring activity, and employer sentiment to hire more in 2021 with 91% of employers stating they will be hiring in 2021. That’s a big number!

– Recruiting tech stacks are evolving in 2021 in a big way to accommodate the ongoing trend of being able to hire virtually. 97% of organizations stating they will invest in virtual interview technology. That’s a lot of video interviewing tech buys! And, online assessment buys! Probably some video job posting buys as well.

– Gig hiring isn’t going away anytime soon, in fact, it’s growing internally. 60% of organizations are relying on contingent labor to help meet workforce needs, which tends to go in the opposite direction of the economy. Meaning, as the economy weakens, we usually see growth in contingent as organizations get nervous about the future. In strong economies, we less growth in contingent. Also, organizations are posting more and more internal gigs for their own staff as development opportunities.

– 84% of organizations are concerned that their current strategies and tools are not reaching diverse and inclusive pools of talent. Hmmm…should be an excellent opportunity for sourcing and recruiting technology that states they can reach DEI talent, but be careful. Most of those tools, just reach back into the same pools you have already been trying to get talent. DEI recruiting starts and ends with real recruiting and outreach, professional apprentice programs, paid internships for DEI talent, employee advocacy programs, etc. There is no magic technology that will pull DEI talent out of a hat. Most fail at DEI recruiting because they keep doing the exact same thing they’ve always done, but added a picture of a person of color to the job posting.

– Probably one of the most overlooked tech items of 2020 from a recruiting standpoint. Internal collaboration tools like Teams and Slack had massive increases in usage. Recruiting teams that can figure out how to leverage these tools best, will have a distinct advantage at leveraging their employees to help them recruit better and faster. 90% of organizations started using these tools over the past year!

– Finally, 2.7 million candidates applied to jobs via Text Messaging in 2020, and that number is increasing every single month moving forward. Anytime I present and mention utilizing text messaging in recruiting it always gets more questions than anything else! Applying via text, communicating with candidates via text, is the new norm, not innovation. If you’re not doing it as a recruiter, you should be fired.

Go download the report, it’s packed with great information and data around how organizations of all sizes are moving forward with their recruiting technology and strategies.

The Weekly Dose: @OurTilt – Leave that doesn’t suck!

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This week on the Weekly Dose I take a look at the startup employee leave technology Tilt. Tilt is reimagining Leave Management to help companies improve retention, streamline processes and reinforce corporate culture.

Let’s face it, most organizations use an Excel Spreadsheet to track company employee leave. No judgment! The vast majority of organizations have tracked leave this way since the invention of Excel! Before that, it was written files. But, now, thanks to Tilt there is a more elegant way to administer employee leave that helps all the stakeholders.

You might be thinking, “do we really have a problem tracking leave?” Maybe not, but leave is more than just HR tracking it. You also have the employee who is on leave, and the manager of the employee who is on leave, who often feel in the dark the entire process.

What I like about Tilt:

– One easy platform to streamline all of your employees leaves into one place where all parties can log in the get the information they need. Super easy to add an employee to leave, and each employee has their own access to track and get answers they need while on leave.

– Fully compliant, in every state, so a perfect solution for those organizations that are multiple states and find it hard to keep up on changing legislation. Tilt helps ensure you stay in compliance and don’t’ find yourself in legal hot water.

– Tilt guides help employees and managers through the process, lowering the amount of time and questions leave administrators have to deal with on an ongoing basis. Also, integrates auto-nudges to ensure both employees and managers do what they need to do, when they need to do!

– Direct communication from employees, managers, and leave administrators that are logged within the platform to ensure all communication is tracked and documented. Plus, great, ongoing manager education around the do’s and don’ts in having an employee on leave.

– Tilt works with every client to review and update leave policies and plans, to ensure your leave plans are built on what’s best for your organization and your culture.

I really like what Tilt is doing. Organizations big and small struggle to administer leave in a really easy way and most of the time all the company leave knowledge is usually stuck in one person’s brain. Also, administering leave is a complicated job, the more employees who have on leave, and the more states you must administer it in.

Pre-leave, leave, and post-leave, you, your employees, and your managers will have the information they need when they need it. All the while the tech helps you stay compliant, saving you time and money. Well worth a demo, especially for those companies managing leave in multiple states.

The Rules for Office Romances

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Valentine’s Day is coming up in a couple of weeks. As HR pros we know what this means, which is usually a lot of unwanted advances by horny dudes who think they have a shot at the hot co-worker, who has absolutely no interest in them at all.

Welcome to the show, kids!

I’ve given out some rules in the past. Everyone on the planet has read my Rules for Hugging at the Office, but Office Romances are a little more complicated than the simple side-hug in the hallway. So, I thought I would lay out some easy to follow, simple rules for Office Romances for you to pass out to your employees on Valentine’s Day:

Rule #1 – Don’t fall for someone you supervise. If you do fall for someone you supervise, which you probably will because this is how office romances work. In that case, get ready to quit, be fired, be moved to another department, and or get the person you’re having an office romance with fired, moved, etc.

Rule #2 – Don’t fall for anyone in Payroll. When it ends, so will your paycheck. At least temporarily, and even then it will be filled with errors from now until eternity. It’s a good rule of thumb to never mess with payroll for any reason.

Rule #3 – Don’t mess around in the office, or on office grounds. Look I get it. You’re crazy in love and just can’t wait until you get home. The problem is the security footage never dies. It will live long past your tenure with us, and we’ll laugh for a long time at you. So, please don’t.

Rule #4 – Don’t send explicit emails to each other at work. It’s not that I won’t enjoy reading them, it’s that I get embarrassed when I have to read them aloud to the unemployment judge at your hearing. Okay, I lied, I actually don’t get embarrassed, but you will.

Rule #5 – Don’t pick a married one. Look I get it, you’re the work-spouse. He/She tells you everything. You get so close, you really think it’s real, but it’s not. You’ll actually see this when the real spouse shows up and keys your car in the parking lot.

Rule #6 – Don’t pick someone who has crappy performance. Oh, great, you’re in love! Now I’m firing your boyfriend and you’ll have to pick between him and us, which you’ll pick him, and now I’m out two employees. Pick the great performers, it’s easier for all of us.

Rule #7 – Inform the appropriate parties as soon as possible. Okay, you went to a movie together, not a big deal. Okay, you went to the movie together and woke up in a different bed than your own. It might be time to mention this to someone in HR if there is at anyway a conflict of some sort. If you don’t know if there’s a conflict of some sort, let someone in HR help you out with that.

Rule #8 – If it seems wrong, it probably is.  If you find yourself saying things in your head like, “I’m not sure if this is right”, you probably shouldn’t be having that relationship. If you find yourself saying things like, “If this is wrong, I don’t want to be right”, you definitely shouldn’t be having this relationship.

Rule #9 – If you find yourself hiding your relationship at work, it might be time to talk to HR. We’re all adults, we shouldn’t be hiding normal adult relationships. If you feel the need to hide it, something isn’t normal about it.

Rule #10 – Everyone already knows about your relationship. People having an office romance are the worst at hiding it. You think you’re so sneaky and clever, but we see you stopping at her desk 13,000 times a day ‘asking for help’ on your expense report. We see you. We’re adults. We know what happened when you both went into the stairwell 7 seconds apart. Stop it.

There you go. Hope that helps as you prepare for Valentine’s Day!

Buy Game Stop! No wait, get back to work!

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Everyone is talking about Game Stop and AMC and a bunch of other companies that no one should really be talking about! Why? Because a bunch of remote workers are sitting at home, not working, and playing around on Reddit and their Robinhood brokerage accounts!

Yeah, I said it!

You have employees you’re paying to work remotely who are messing around thinking they’re day traders by buying crappy stocks off Reddit suggestions. Also, they think they’re sticking it to the “man” by doing this, so in their mind, they’re really saving the world. All while you’re paying them to sell more Saas software…

This is why Remote Work doesn’t work! 

Everyone loves Remote Work. Why wouldn’t you. You get paid to do the same work in half the time, and you get to do it sitting on your couch with Netflix running in the background and you’re still wearing the same stretchy pants you woke up in! God Bless America! Am I right!?

Remote Work fails when leaders feel like even one person is taking advantage of the system!

Look I get it, I get that Timmy is sitting in his office, at the office, and still not doing anything, but Mary, your CEO, can walk by Timmy’s office and scare him enough into thinking he should probably do some work.

Most organizations suck at having measurable performance indicators for every position, or any positions, besides sales. Most performance measures that employees have, would happen regardless if they actually did their job or traded crappy stocks all day, or ran an Etsy shop out of their cube.

Can’t we all just be adults!? 

Apparently, no.

You don’t want to be micromanaged at work, but the true future of “Remote” work is we are going to micromanage the sh*t out of you! (No, not me, all the other bad folks!) The bigger the company, the better the technology they’ll be able to afford to ensure you’re actually working and not acting like a wannabe revolutionary taking down the stock market by buying bad stocks.

If you have over 500 employees working remotely right now, at least 3% of those people are amateur day trading on your dime. It’s just a numbers game, at this point. Depending on what your business does, you can probably raise or lower that number 1-2%.

“But, Tim! You don’t get it! I work a flexible schedule, so I’m putting in more hours and still being a bad day trader!” No, you’re not. You’re an idiot who is going to cry you got wronged when you get fired because your company found out a part-time seventeen year old can produce more than you, without any formal college education.

Gawd, I actually love being the voice of reason! 

Man! I’m not a life coach, but what I wouldn’t do to punch some stupid 35-year-old dude in the mouth who’s trying to explain to me why Game Stop is a good investment, ‘really’! Turns out, no one needs a brick and mortar store to buy online games! Thanks for the advice, Trevor, how did all those folks at your company respond to that analysis in the company Slack!?

Okay, you don’t have to work forty hours a week, because when you’re home you have fewer distractions and you get your job done in thirty. The question you should really be asking yourself isn’t if America is considering you a hero for buying Game Stop stock, but if you can do that all day and still get your job done, who else is thinking they probably don’t need to be paying you any longer?

I can guarantee you, Game Stop doesn’t care about your job!

Does a $15/hr Minimum Wage Really Help Workers?

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There might not be a more controversial topic in 2021! Whether or not we (the United States of America) should raise the minimum wage for all workers, in all states, in all jobs to $15/hr.

I would love to say this is ‘simply’ a political issue, but it’s not. It’s much more complicated than politics. Both sides will point to studies that prove why or why not we should have a minimum wage of $15/hr. The reality is, a $15/hr minimum wage is more of an economic issue than political.

What is the argument, really, for and against a $15/hr minimum wage? 

For $15/hr:

  • People need a living wage. $15/hr for a forty-hour week, roughly puts a person at an income level of $30,000 per year. Which, in theory, would bring that person above the poverty level. Let’s be clear, “above poverty level” is still a freaking tough life!
  • Corporations are making record profits on the backs of hourly workers. Hello, Jeff Bezos!
  • Other countries have done this and it’s worked out just fine.

Against $15/hr:

  • Raising the minimum wage to $15/hr and above will cost jobs. If you force employers to pay $15/hr as a minimum they’ll hire fewer workers and have them work fewer hours.
  • $15/hr minimum wage is too little for some markets and too much for some markets. We should let market dynamics decide what the minimum should be.
  • Other countries, like Australia, pay a living wage, but have you been to Australia? It’s not the U.S. It’s U.S.-like, but when you go to a “bar and grill” in Australia you don’t get waited on. You go to the bar, order your food, and they yell your name when it’s done. Need extra ketchup? Go to the bar, wait in line, and hope you can get the one bartender to get it for you. Why? Because wait staff costs too much, so they use them. Things are different. So, yeah, “waitstaff” in Australia gets paid a living wage, but those places just don’t hire very many.

What does the research really say? 

Here is where the rubber meets the road because we can always find a study that will back up whatever point we might have. I’m for an increase in the minimum wage, or I’m against it, I can share with you five studies each supporting my take. Ugh! So, what is it really?

I found a study that looked at all the minimum wage studies (not some dumb Forbes article, real academic research), both for and against, to break down the facts and the myths. Here’s what they found:

  • There is a clear preponderance of negative effects on employment when raising the minimum wage.
  • The evidence is stronger for teens, young adults, and less-educated.
  • The evidence around specific industries is less one-sided.

What does all of that mean? 

First, while you will find studies saying that minimum wage does not impact jobs, there is way more academic and economic literature supporting the other side. Also, the evidence shows a strong effect on younger workers and lower educated, so there might be some room to talk about family or adult minimum wage standards verse just the standard one-size-fits-all. There is also a need to look at minimum wage by industry, again not just across the board.

An example might be, manufacturing sectors can pay $15/hr but service level restaurant jobs can not. Or, $15/hr makes sense in New York City, but not in Winona, MN. Maybe it could be looked at via high margin industries verse low margin industries.

What is clear, from the evidence, is that a straight $15/hr minimum wage, for all people, for the entire country, is not the best remedy for our current dilemma. Most likely, what will happen, if the $15/hr minimum happens is you’ll see organizations adjust accordingly by doing a combination of rising prices, cutting costs, cutting hours, and cutting jobs.

If you believe corporations are just going to “eat” the additional expenses, at the cost of profit, you are at best naive.

What’s my take?

I don’t like the proposal of just across the board we are going to raise the minimum wage to $15/hr across the country. I don’t like it because it won’t do what people think it should do, it’s really just more political posturing. In the end, consumers will pay more (which maybe we should) and corporations will cut to make the same profits. Ultimately, workers will take it on the chin, again.

If politicians truly cared about workers, they would dig in and do a minimum wage by market. It would be way higher than $15/hr in some locations and probably a bit lower in some locations, but there would be more strategy and thought behind it. The federal government does this now with pay bands for federal workers, they should be able to do it for all workers with minimum wage.

To not include market dynamics in compensation policy shows the government doesn’t really care about workers, truly. Because when it comes to taking care of their own, federal government employees, they do take into consideration market dynamics. $15/hr in Los Angles, San Francisco, and New York City is nothing, let’s be real.

Let me hear it in the comments! Are you for or against a $15/hr minimum wage and why?