Eric’s Rules of the Road

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I currently have 8 HR professionals working for me.  I’ve been working with HR pros since 2001.  There’s a big difference with consulting (which is what we do) and being on staff.  When you work as an HR pro for a company, you can say ‘no, you can’t do that’.  Not so, when you’re a consultant.

So, after 18 years of working with HR consultants and with a nod to Jerry Perenchio, here are my Rules of the Road:

  1. Take 100% responsibility for your actions.
  2. Be relentless about your intellectual curiosity. Nothing makes you obsolete faster than refusing to learn new things.
  3. It’s all about results. I’m not interested in “how”; I’m interested in “if”.
  4. Never say “no”. Your job isn’t to tell someone they can’t do it, but how they can do it.
  5. Sometimes the answer may actually be “no”, but don’t you think it is about being sure that you understand the outcome the client wants to reach?
  6. Being late to a client meeting is unforgivable. Exception: calling the client and letting them know you’re running late.
  7. You’re the Option King or Queen. If a client has a challenge, your role is to present options and the risks therein.  There’s rarely just one way to solve a challenge.
  8. Mistakes are never a problem. That’s learning.  Making the same mistake twice is a problem.
  9. Never ignore an e-mail or voice mail. Even if your response is “let me get back to you tomorrow”.  Clients don’t like to be left hanging.  (Neither do I!)
  10. Have fun and project enthusiasm. No one wants to deal with a downer.
  11. Minimize drama. We’ll all live longer.
  12. Care as much about your client as your client does. (You can’t care about a client’s business more than your client cares about their business).
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Why Experience No Longer Matters

It’s almost comical.  I’m referring to the amount of money businesses globally are spending to streamline resume reviews – reading bots, artificial intelligence, and the like.  The idea is for the bot to scan resumes looking for keywords – college degrees, or at least 5 years as a software engineer, for example.  The bot then ‘approves’ selected resumes for follow up by HR or the appropriate hiring manager.

Everyone likes having the newest technology, and every company looks for efficiencies – but really?  In hiring?  As Jack Welch used to say:

What could possibly be more important than who gets hired?

And the kicker is – everyone’s doing it wrong, because experience no longer matters.

Yep, I went there.

Most businesses still look at employees and job candidates through the same lens as they did two or three decades ago. They review résumés and interview using the same old, tired questions. They look for experience and technical competency as if these are the only criteria needed in this world of massive and constant change.

Today, we are confronted with a multi-cultural and multi-generational workforce with investors and shareholders demanding more profits, lower expenses, and better efficiency. In an era of social media, every employee and every customer are broadcasters, having the ability and ease to shout their complaints or problems to millions of people.

Today’s employees are significantly different from those who came before, and employers have significantly different needs from what they ever had before.

There are two major excuses offered by companies who wrongly insist that experience is the most essential factor in hiring.

  • Because that’s the way we’ve always done it. A bank in the southeast U.S. asked me to help with an issue with their tellers.  Seems that they were having a problem hiring and retaining bank tellers.  It took me 5 minutes to spot the issue – a college degree was required.  Really?  For a $10 an hour bank teller position?  Turns out the CEO liked having employees with college degrees – that was the way it was done when his father (and grandfather) ran the bank.  But the insistence there be a college degree was the reason many potential applicants declined to interview, and also why existing tellers bolted when the first better offer emerged.

It took 5 minutes to find the issue and about a month to talk the CEO into changing the policy.  A college degree is a piece of paper and proves many qualities, but being a great bank teller isn’t one of them.  I instead re-focused the bank’s hiring managers into looking for a genuine customer service orientation; a values system aligned with the banks culture; and a hunger to work at the job.  Desire and passion are very good motivators.  By opening the position up to a larger pool of candidates, turnover decreased and hiring became easier.  Within a year, there was even an uptick in customer satisfaction!

  • So the new employee can ‘hit the ground running’. This is code for “I don’t want to spend time training this person.”  Yet there’s going to be a significant amount of training no matter what.  A CPA firm I work with requires of its newly hired CPA’s to have at least 3 years of experience in a certain software program.  The problem is that the software dramatically changes every few years, so there inevitably must be significant training or re-training anyway.  And why 3 years of experience?  What’s the difference between 1 and 2 years or 3 years?  Very little, in my opinion.

I learned the lesson about over-relying on experience nearly 20 years ago.  I was managing a sales and service operation for an insurance company – about 30 employees.  I was having problems hiring an inside sales representative.  After 6 weeks, my boss called and told me he’d hired a person for me.  I thanked him and asked for her resume and when I would get to interview her.  He indicated I’d forfeited that chance – I’d meet her when she completed corporate training.

When I met finally met her, I was impressed by her desire, and during the first day our client clearly responded to her positive and friendly attitude.  So I called my boss and asked to (at last) see her resume.  Turns out there wasn’t a resume.  She was the checker at his grocery store.  He’d been going there for years and was impressed by the way she remembered his name and her friendliness.

And my boss was right: no way I would have even interviewed her, because I wanted insurance “experience”.  I missed out on a whole number of great potential candidates because I over-focused on experience.

I’m not saying to eliminate experience and education entirely (you wouldn’t want a high school student performing your brain surgery); but I am saying you need to re-think exactly how critical (and how much) is necessary for your hire.  Experience only proves the past – attitude, agility, and alignment predict the future.

Artificial Intelligence might be able to screen for attitude, agility and alignment in the future, but they can’t and aren’t doing it now.

Hiring is critical. Not only do you want to hand-select employees who are likely to stay on board for more than a little while, but you also want employees who will blow you out of the water in terms of performance. You need to find employees who have the intangible values and characteristics that your company needs, and you must also find those who will flourish in the face of change.  You won’t find that reading a resume.

 

Are You Happy With Your HR Department?

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CEO’s and business owners: are you happy with your HR department?  In small businesses, you might be happy with your HR person, but then take this short questionnaire.

What is your level of confidence – on a scale of 1-10 – in your HR Department to:

  • Keep up-to-date with state and federal labor laws?
  • Be accessible to employees and management?
  • Integrate automation/technology into the HR function?
  • Coordinate and offer the best possible benefits?
  • Effective coordinate and teach performance reviews?
  • Guide effective leadership and organizational strategy?
  • Manage employee relations issues?
  • Lead the Training & Development function?
  • Ensure Workplace Safety?
  • Manage employee compensation?
  • Lead the recruiting, interviewing & hiring process?

Now – tell me again: are you happy with your HR Department?

Managing Your “Supporting Actors”

In the talent management world, a great deal is written and discussed about the management of the “A” players – the best employees, or those with the highest potential.

But what about the “B” players?

First, it’s ridiculous to conclude that your entire workforce is made up of (or should only include) “A” players.  There simply aren’t that many great employees to go around, and let’s face it: Not every company is Google or Patagonia with 1,500 applicants for every position.  In the real world, you’re going to have some “B” players on your team.  And given the right direction and leadership, those employees have the capability of being extremely valuable to your organization.  A 2003 Harvard Business Review study concluded that “that companies’ long-term performance—even survival—depends far more on the unsung commitment and contributions of their B players (than on A players).

Let’s use baseball as an analogy.  The great teams have superstars – the .300 hitters with 40 homeruns.  Those are your “A” players.  But teams that win the World Series invariably have several role players, sometimes called “utility” players.  This is the player that will never hit 40 homers – but can play catcher, or right field, or second base.  They’re the ones that are able to sacrifice to advance baserunners, or break up double plays – they’re the unsung heroes.  And it’s no coincidence they are sometimes called “character guys”.

In the film industry – whether you’re best supporting actor or best actor, the trophy’s the same.

In the workplace, I’d define “B” players as those who:

  • Show up for work every day, put their nose down and grind out the work;
  • Have little, if any drama associated with their presence in the workplace;
  • Stay at your company for a longer than most employees;
  • Utilize their abilities to the maximum;
  • Consistently perform good but not spectacular work; and
  • Often, their work is not what defines them – they have other priorities in life, whether it be family or a significant hobby

Give me a group of people like this, and I’ll show you a very very good workforce.

I’ve worked with a mid-sized CPA firm for a number of years, and I recall one such employee.  “Brad” was very quiet (except at the company holiday party), showed up to work every day, and was incredibly reliable.  Brad was well paid for a staff accountant, but because he was not spectacular, he never received significant promotions.

At corporate review meetings, the partners always wondered if they should let him go, because he wasn’t partner material.

My response to them was – not everyone is partner material!  Not everyone has the capability of being a CEO!  If you are under the impression that everybody in your workforce must have that potential, you’re deluding yourself.  Every workforce needs people to actually do the work, not just manage and lead.

The problem is, most managers and executives don’t know how to manage “B” players and as a result, those employees become disillusioned, lose their edge or worse, leave the company.

Here are some thoughts on how to manage “B” players:

  1. Know Who They Are. A “B” player is not a mediocre or failing employee; they are hard workers who for reasons tangible or intangible are not going to be CEO some day.
  2. Manage them the same way you do your “A” players. That is, find out what their goals are; set your expectations clearly and adapt a ‘one size fits one’ approach.
  3. Let them know their performance is valued. If a good employee sees their superstar colleague get all the recognition and rewards, they’re going to be disheartened.
  4. Make clear what their career path is. If they aren’t ever going to be an executive or manager – let them know that.  (It’s not fair to them if they’re laboring under the illusion that some day they’ll be promoted).  There are other ways of rewarding performers than simply promotions.
  5. Pay them at the top of the market. The value of the “B” player is their stability to the company as well as consistent performance.  If that employee leaves, it’s going to be really expensive, and time consuming, to replace that person with a similar performer.  It’s much less expensive to simply pay them at the top of the market.

I once worked with a commercial real estate firm that had the greatest receptionist I’ve ever seen.  When she answered the phone, she did so as if she’d been waiting for your call all day long.  Colleagues and competitors would constantly try to steal her every month.  She had been in the position for eight or nine years when she decided to apply for an promotion within the company.

The owner knew that wasn’t the best use of her skills and wanted to keep her in her role.  Their answer?  They raised her pay to 20% over what any other receptionist was making in town – and about 10-15% more than administrative assistants were being paid.  She stayed.  If she was going to leave, it wasn’t going to be because of money.

Supporting actors have an increasingly critical role in business, but they won’t flourish or remain without an intentional strategy for managing their performance and careers.

 

 

 

 

 

There’s no “Holy Grail” in hiring

Just last week, a client came to us asking what we thought of a proposal they’d received from a vendor.  The vendor was offering a pre-hire screening program that purports to screen out applicants who have a propensity to steal, use drugs, lie, etc.

This is a question we frequently get; it seems that every employer is looking for the ‘holy grail’ of 100% certainty in hiring.

I’ve personally interviewed thousands of candidates in my career.  I’ve seen and used virtually every personality, IQ, and behavior test in existence.  I’ve read dozens of books and worked with clients around the country on improving hiring techniques, and I know one thing. There is no ‘holy grail’ of 100% certainty in hiring.

I think I’m as good as anyone in hiring, and even with all my experience, I’m going to be wrong 20% of the time. So if there is no one thing that can give you certainty in hiring, what can you do?

For one thing, the C-Suite and HR professionals need to understand that today, a 70% or above success rate in hiring is very good.  (I’d define success as an employee who does a good job and lasts at your business for 3 years or more).

Every business is different, with their own unique culture, but here are some techniques I use when helping a company improve their hiring success rate:

  1. Train hiring managers on how to interview and what to look for.  It constantly amazes me that the vast majority of managers who interview have never actually been trained in how to interview! It’s a lot more than just providing a list of questions to ask (or not ask).
  2. Develop a better process of interviewing.  We worked with a bank in Arizona last year whose interviewing consisted of meeting with one manager who had the sole authority to hire or not.  At that time, 4 out of 5 new hires were not successful.  We redesigned their hiring process to include multiple manager interviews, a meal with potential peers, and a final interview with the CEO.  Hiring success has doubled since then.
  3. Less emphasis on an interview and more on character and culture fit.  Most industries are extremely insular.  I guarantee someone at your company knows someone who your candidate has worked for previously.  Call your contacts and networks – they’ll be a lot more open to talk to you about the potential for success than a blind call into the HR department of the previous employer where the standard response will be “That person worked here from this date to that date.”
  4. Spread a wide net.  A typical process for considering candidates might be to phone or skype screen 15-20 candidates and interview 5-10 candidates.  Yes it’s time consuming, but it will give you much more information and ability to determine the best possible hire.

After all, what could possibly be more important than who you hire?

This post was modified from an article Eric recently wrote for the Western Independent Bankers magazine.  As always, thanks to Mel Kleiman for the last sentence!