Hiring Managers

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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More Corporate BS

Well, I’ve been absent for a while, the reason being I’m miserable and not in the mood to write much.  My current job sucks, we get near zero off time, and what little we get, I needed to use for medical purposes.  So, as with many Americans who work in this shit-fuck country where employers don’t feel any obligation to give people reasonable amounts of PTO, I will likely soon hit a conflict where it’s stay employed or go to that doctor appointment.  And for context, I’ve had to use five days so far, for the year.  That’s less than half of what the average US worker gets for vacation alone, with sick time added on, and I’m already through the majority of all the time my employer ‘allows.  But, I figured I’d drop a post for fun and to cheer myself up.

My current favorite corporate/recruiting bullshit phrase, “we want someone who has ‘lived in’ that world.”  You hear this when recruiting for all kinds of positions.  It’s yet another subjective, unquantifiable bullshit ‘requirement’ hiring managers throw at you to as a catch-all excuse to reject anyone and everyone they want for not having ‘lived in that world.’  Of course, why the fuck would you want someone who has lived in that world, in any function?  If they’ve already been in that world successfully, wouldn’t a good candidate want to move up and out of that fucking world, jackass?  And if they do want to stay in that world, do you really want someone with a complete lack of ambition or of such a narrow scope of experience working for you?  What value do they add?

The recruiting train of bullshit continues.  If you like my posts, a better way to get them is to check out my comments at Ere.net or Recruiter.com.  Sniping at all the bullshit written by many others in the industry is, right now, easier than coming up with original material.

Typical Recruiting Fuckery

I recently had a client come to me looking for a consultant to deal with reporting from their ERP system, specifically supply chain information.  They wanted someone who was expert at Excel, and who could pull and analyze data, get it into presentable report, for which they already had templates, and get it out to the required stake holders.  I found them that plus more in less than 24 hours.  What I found was a guy who had done all of the above, and had enough development experience to automate the process for them, and who was willing to take the position because it’s literally down the road for him.  He’d be cutting his commute time and costs by a ridiculous amount, so even though he’s getting nominally less, he’d be netting more in salary.

The client doesn’t want to interview him because he’s consulted too much.

This is the typical bullshit we recruiters run into.  Clients want a consultant who has a ‘stable’ background, or in other words a consultant who has never consulted before.  They want a person who can “grow into” a position so they don’t have to pay as much, but aren’t willing to tolerate growing pains.  They’ll ask for someone who can do A, B, and C, and then reject them because they have done A, B, and C in their past.

The point of this blog will, unfortunately, be to communicate often to candidates and hiring managers, and all other readers, how ridiculously screwed up, random and arbitrary most hiring processes are.  This will help candidates understand the root of their frustrations, and hopefully spur hiring managers to clean up their acts.

And now I’m off to see if can I find a consultant who has never consulted, which will mean a recently laid off or fired person who was never a consultant, who the hiring manager will then reject because they’re not working and so can start immediately, which is what he wants, someone who can start immediately…

The Salary Barrier

The salary question is the first one I’d like to address here, or more specifically I want to address The Salary Barrier.  The Salary Barrier is that point in a conversation where you have ascertained that the person in question understands and accepts the concept of prices and pricing, but still can’t see how that applies to labor, or salaries.  We’re going to have to start with some basics on this one.

Prices.  Everything that is scarce and valued has a price.  Prices are developed on markets, they are bid up and down based on supply and demand conditions, all based on the subjective perceptions of the people doing the bidding.  I prefer the most and least competent buyers and sellers model, but I forget who first proposed it.  However, it’s enough to know it’s a process of discovery that occurs continuously.

Now, if you were to run into a Rolls Royce dealership and demand a Grey Ghost, but only offer the price of a Honda Accord, almost everyone understands you will be asked to leave, or laughed out of the place.  This concept, using various goods and services, is understood by most every human being on the Earth.  Except with regard to wages.

What’s more, HR and recruiting professionals, at least some of them, seem to make a living not doing much HR or recruiting, but writing about those things.  They tend to hive off into high minded theoretical horseshit.  One such avenue their thoughts travel is the role of compensation in motivating people.  They will often talk about allowing employees to be creative, to stimulate them, to do any number of things.  Other than pay them.

Now, CEOs and business owners read these articles, and you must understand, most of them are incompetent.  Most companies in the US are small to medium sized businesses.  They are run by amateurs who were in the right place at the right time, with the right service or product.  they are not necessarily run by people who have a clue how to manage a business, much less other people.  So, they read these articles and always come away with the idea that you offer alternative forms of compensation in lieu of actual salary, not in addition to salary.

No, it’s also important to remember that salaries fall on a normal distribution like anything else.  There’s a mean, a median, and a mode.  These are instructive as to what the going rate for a given type of labor would be, and these numbers are easily accessible these days at websites like salary.com.  This means both employers and potential employees know what they should be getting in a general sense.

Now, the kicker is that in recruiting, whether you’re corporate or agency, you’re still likely inundated with requests to fill positions at salaries that are 30-50% below where the market says they should be.  Here’s why…

No one thinks to check first.  Or, very few people do.  It’s really that simple.

So, we have a perfect storm of recruiting and HR professionals basically earning money by telling CEOs and business owners that they don’t actually have to pay their employees.  You get incompetent managers and HR departments that decide on budgets before looking at actual job requirements.  And you have agencies working mostly on spec who take the orders, with no DSLA in place and so no consequences for the originating company beyond the cost of their vacancy, and those agencies will sit on the order and work it and eventually what happens is the job doesn’t get filled, they get really lucky and find someone who is undervalued and willing to take the position at the salary proposed, or, and this is the least likely, the company caves in and pays market rate for what they actually need.

Here’s the reality…

You get what you pay for in the labor market as in every other market.  Labor has a price, you either pay it or put up with a more junior person who you can afford.

If you want to fill a position, you will figure out what the job description is and then look up the salary ranges for that type of role in your area, and aim there.  If you’re below the mean salary you will have problems filling the position.  If you’re significantly below the mean salary, you will not fill the position.  If you have alternative forms of compensation you can offer, these need to be offered to your high performers as a means of retaining them.  You can not make up for any significant shortfall in salary with other benefits except in rare instances where what you’re offering is exactly what the employee wants.

It is way past the time HR and recruiting professionals pulled their thumbs out of their asses and told companies they have to pay their employees and pay a market wage.  If they are not willing to do that, you can still find them people, however they will be more junior than where they were aiming, or of lower quality, like lacking leadership potential, etc.  You can’t simply “get people” at any price for any job.  Recruiters and HR professionals need to set better expectations and push back more on these companies run by idiots who think they can go to an electrical engineer who would be earning 90K at any random company in area and offer that person 50K and that they’ll jump at the offer for some reason.

To all business owners: you are not the only game in town.  There are other companies out there, and they’re offering jobs pretty much like the ones you offer, with pretty much the same benefits and working conditions, etc.  You need to look at your company in a totally honest fashion with no marketing or PR bullshit in the way and find out why someone would want to work there.  If you can’t answer that, or if there really is no reason, you need to look at your compensation rates because that will become the only way to differentiate your company from the competition.

And to finish up, you need to stop listening to morons who try and tell you salary is not a motivator for people.  It is the primary motivator.  People need food, shelter, and clothing.  They do not get that by having more creativity at work, or working for a company with a prestigious name.  Try and pay your rent or mortgage with either of those things, it won’t work.  You first need to compensate your employees fairly for what they are doing for you, and then target the ones you want to retain and hit them with non monetary compensation to try and keep them around longer.  Money is without fail the first question candidates ask about in any inquiry about a position.  People need to stop tip toeing around this issue and address up front and in the open: pay matters.  Deal with it and pay your employees with money, not freedom or opportunity or any other non monetary piece of bullshit.