economics

A Recruiter.com Article I Commented On

There’s an article here at Recruiter.com that I decided to comment on.  Here’s the comment:

“‘It’s weird that we haven’t built any tools for team leaders at all,’ Buckingham says. ‘We have none – not even a few good ones. We have zero.'”

Team leaders themselves are employees, and at the root of this disengagement problem is the fact that companies do not actually value their employees. That’s why they don’t have the tools they need. Companies say they value their employees, they give lip service to doing so, but this value is not reflected in their actual actions; pay offered, benefits offered, work-life balance, having skilled managers, and opportunities for development and advancement. You have to actually have all those things to get people engaged, not just mention them in a speech every now an then but never deliver. Rhetoric is not enough, we are in the information age where reality trumps Sales! oriented rhetoric of promises with no follow through, and people can increasingly see through the BS on a shorter and shorter time scale. It takes them far less time these days to realize their CEO is full of crap.

As long as companies fail to deliver on the things that will create engagement, they can measure it all they want and it won’t get better. As mentioned in the article, you can’t make a pig fatter by weighing it more often. So, the message to companies who want to increase engagement should be, pull your heads out of your posteriors and start taking actions that will increase engagement instead of endlessly fussing about it, but not doing anything about it. Most will do nothing, because increasing engagement will mean addressing and valuing employees’ concerns which may not seem immediately tied to bottom line improvements, because few if any companies tally the cost of disengagement and factor that into their financial judgements. But, it’s an easy start.

Step one, examine your salary structure and make sure people are making market wages, perhaps pay more if you think you need to compensate for things you can’t deliver, perhaps a bit less because of other perks you do offer, but there can’t be a massive disparity between your pay and the market mean, or you’re screwed.

Step two, examine your benefits and again, make sure they are on part with the market. This is an area where you can make a big dent because while time off is not very costly to offer, it makes a huge difference in people’s lives. Examine your health plans, time off plans, and work hours, and make sure they are all reasonable from an employee’s perspective. Try adhering to it yourself, and if you can’t do so without availing yourself of the perks of ‘flexibility’ offered to higher-ups, how the hell do you expect them to live on it? If people are working significantly more than 40 hours a week on a consistent basis, find out why and put a stop to it, or they will burn out and turnover, plain and simple. If your vacation plan is the standard plan of Go To Hell, Get Back To Work, revise it. Talk to a few brokers and see if you can get better health coverage if that’s a factor as well, it’s not hard.

Step three, start looking at your existing employees as resources and start considering advancement and succession planning. The institutional knowledge they have is often priceless, so capitalize on it and actually try to retain them proactively instead of waiting for their resignations and then wondering what happened. This can dramatically cut recruitment costs by shifting the need to back filling more basic positions. Always exhaust the internal pool of all possibilities before hiring outside.

These are not hard, and if done would correct most companies’ engagement problems. In many cases they’re not even costly, and yet companies still refuse to do them. That is an indicator of how much they actually care about engagement. In simpler terms, they don’t care, or it would be dealt with already.

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The! War! For! Talent!

Lately I’ve been seeing a lot of posts prognosticating that 2015 is going to be The Year where everything turns around. Employees are in the driver’s seat! Salaries are going up! The economy is in real recovery!

All from the same troop of jackasses who thought real estate prices could never go down, and that pre crash we were in a post scarcity world where wealth would just pile up endlessly for everyone.  Well, I say horse shit.

One, prediction can only be made in broad, qualitative terms.  Quantitative predictions are almost always wrong.  Two, trends are great, until they reverse, and then they’re not trends anymore.  So, here’s my prognostication:

There may be a slight uptick in salaries in 2015.  The Fed against all probability has managed to reflate a bit of a bubble, so people might feel richer for it, at least for a while.  However,  some policies and realities continue regardless of the optimism of a few.  For one, monetary policy here and in almost every other country has gone full retard, and the underlying misallocations of capital thanks to near zero, and in reality negative interest loans when you account for devaluation, will eventually have to be exposed and corrected.  What that means is the crash of 2008 was chump change compared to what’s coming.

The end of the petro dollar seems inevitable, and without that the US loses some clout in the world.  China and Russia will get friendlier, and India will go along with them.  And specifically to China, my guess is that’s where the black swan event will occur that will bring on the next depression.  You’ve got them being the latest blip on the skyscraper index, and they are literally building entire cities for no one in that country.  If ever there was a real Austrian Economics style bubble economy happening, it’s in China, and when that one pops it’s going to take a big chunk of the world with it.

And, to top all that off, monetary and trade policy remains moronic in the US, regulations are piling up, and income inequality is being exacerbated to an extreme, with the levels of expatriation of the rich going through the roof.

In the US we are seeing a blip upwards on what is otherwise a very long path downward, and it won’t be long before capital starts flowing out of the US en masse.  I’m with Peter Schiff, eventually this will resolve itself into a currency crisis, and I’m pretty sure most currency crisis lead to military crisis.

So, overall, my guess is it’s not too much longer before World War III gets going in earnest.