Author Archive

Don’t Lose Your New Star on the First Day

Thursday, July 21st, 2016

The first day on a new job – Excitement, anticipation, fear, for the new employee AND their family. An employee’s first day can make the difference between them staying and leaving, between them being motivated and engaged or just riding out their time until something better comes along.  I’m going to illustrate my point by tracking the first day experiences of two new star employees: Jane Regret and Tom Happy. Think about which story sounds like your company.

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Jane’s first day starts with her husband wishing her luck.   She arrives early, beaming with excitement.  Jane becomes concerned as she learns the receptionist wasn’t expecting her and didn’t know if her boss Joe Smith was even in.  After ten minutes of calls and pages the receptionist finally reaches Joe, who apparently forgot she was starting that day.  Jane is asked to go to HR to fill out paperwork and told that Joe will meet her later.   Jane spends the next two hours in HR signing forms, hearing about benefits, and watching an old company video.   HR takes Jane to her desk, which really isn’t her desk because they haven’t figured out yet where Jane will sit.    HR gives Jane the policy manual to read and sign now, a catalog to order supplies and is told her computer should arrive in a few days.  Joe Smith finally pops in between meetings for a quick hello, telling Jane he’ll see her at Fred’s going away party this afternoon.   After going out to lunch by herself Jane attends the party for Fred, who is moving on after only 5 years.  Joe actually missed the party so Jane will try to find him on Tuesday.  Jane gets home and tells her husband that she may have made a big mistake.

Tom Happy’s wife Linda was surprised to find a rather large package from Tom’s new employer on the porch, especially since he hadn’t even started working there yet.  As Linda opens the box she calls to Tom, “Wow, it’s all kinds of company merchandise, shirts, hats, sweatshirts, etc.  There is also a copy of the company handbook for you to read.  And look there are tickets to the local baseball game – how did they know we love baseball?  And a note from your boss Jack Smith – Welcome aboard, can’t wait to start hitting home runs together.  See you in a month!”

happyTom leaves home on day one and Linda kisses him goodbye and wishes him well.  He arrives early and as he approaches the receptionist he sees his picture on the large TV in the lobby that reads “Today is Tom Happy day! Welcome Tom.”  The receptionist tells Tom they are glad to see him and that Jack will be right here.    Jack greets Tom, “I am so glad you are here, look we need you to sign some paperwork but first, let’s meet your teammates.”  As they approach Tom’s work area he sees streamers, balloons, and a gathering of people.

Tom’s teammates have gathered for coffee and bagels to welcome him.  They talk baseball, kids, share funny stories, etc. When Tom enters his office everything is there – supplies, computer, business cards, etc. After a quick visit to HR, Tom and Jack meet for several hours to review Tom’s 90 day plan and success factors. Several co-workers take Tom to lunch and share company history, why they came here, how important Tom’s role is to the team, and answer his questions about what it is really like to work here. Tom arrives home beaming and tells Linda how she won’t believe the day he had. Replies Linda, “I have an idea – look what Jack sent us – a bottle of wine with this note – Welcome aboard Tom and Linda, let’s raise a toast to a great new relationship.   We’re so glad you two have joined our family.”

These stories, while extreme, do teach us some valuable lessons about how we start our new employees. Think about Tom and Jane.  Which one is more motivated?  Which one is already questioning their decision?  Which one is susceptible to being recruited away? What will each person tell their family, their friends?  What might they post on Facebook or glassdoor.com?

Now, think about which story most resembles your company.  Most organizations I’m afraid resemble Jane’s experience.  Everyone’s doing more with less so few have time to go that extra mile for new employees.  At other companies “only the strong survive,” so they intentionally do not pamper newbies.

Feeling unwelcome, having a boss that doesn’t have time, an unclear job plan all increase the odds that you’ll lose that new star.  And once word gets out about your culture you’ll have a harder time attracting new stars.   You’ll also lose the training costs you’ve sunk into new employees as they leave. Depending on the level of position it can take anywhere from 8 to 28 weeks for a new employee to reach full productivity.

With this backdrop, here are some components of the best on-boarding plans.  Notice that these activities don’t require a large budget, just time and attention.

  • Activities that make a new employee feel welcome.  First impressions that people form about your company are extremely hard to overcome. Instead of just throwing parties for people who are leaving, celebrate your new stars.
  • One-on-one time with supervisor and other leadership. Don’t rush someone onto the payroll if you don’t have time to spend with them. Consider having new employee start on a day other than Monday if that’s your busiest.
  • Introduction into the formal and informal culture. Consider activities such as CEO meetings with newhires, “skip level” lunches, lunch-n-learns, and a buddy system to help new employees understand expected behaviors.
  • A carefully chosen mentor or buddy to help them navigate through your culture, processes and operation. A safe place to learn how things really operate.
  • Just-in-time resources that provide answers for the new employee.  Company acronym dictionaries, process diagrams, auto-enrolled into appropriate listserves and forums, phone lists, community information for relocations, etc.
  • Feedback and guidance on job performance.  Make sure your new hires are working a clear 90 day plan versus walking around aimlessly, with regrets.

A successful on-boarding process should cover the entire first year for the new hire and include all activities through which new employees acquire the necessary knowledge, skills, and behaviors to become effective.  When done right, on-boarding can lead to higher job satisfaction, better job performance, greater organizational commitment, and reduction in stress and intent to quit.

So start them off right and watch them soar.  Or, start them off wrong and watch them fly away.  Your choice.

p.s.  And when you lose a long term star from your team, odds are they’ll find themselves in a bad first day questioning their move.  Call them that first day and just tell them you’re thinking about them and hoping they are having a great first day!

Learn more about how our Advice & Resolution team can help you design a great onboarding program for your organization.

doug

Doug Blizzard, MBA, SPHR, SHRM-SCP serves as CAI’s Vice President of Membership, and has been with CAI for more than 15 years. Doug is well-versed in the world of HR from compliance issues to workforce management to aligning business objectives with HR. He strives to constantly improve the member experience and provide employers with the confidence needed to turn fears and opportunities into practical actions and results. If your HR team could benefit from some guidance, you’ll want to learn more about CAI.

 

Two Questions HR Must Answer Correctly

Thursday, July 7th, 2016

I once spoke to a large group of HR professionals and I asked them two very important questions.  WARNING: Getting the answers correct may require you to radically shift your perspective and focus.  However, making the shift may be the most important thing you can do as an HR professional to dramatically elevate your value to your organization.

Hopefully I’ve piqued your interest.  So here goes.

Question number 1.  Look at the pictures below and tell me who the most important group is to your business. This isn’t a trick question. There is only one correct answer.

ee cust inves.JPG

When I asked this question in a speech I once made to over 120 HR professionals, the most common answer was “the employees.”  As one participant confidently articulated, without employees and their contributions and innovations there would be no business.  Good point.

One person sheepishly said “the customers,” but I could tell she didn’t feel comfortable saying that in front of her HR peers.

No one said “the investors.”  Some experts argue that without investors you couldn’t have a business because there would be no capital to buy the equipment and infrastructure needed to deliver the product or service.

So what’s the right answer?  The answer came most succinctly from the late Peter Drucker who many called the Godfather of Modern Management: “The purpose of business is to create and keep a customer.”  All three groups are important, but without a customer there is no business.  You can have investors in search of a business, and you can have employees in search of an employer, but as the customer goes so does the business.  A business will only continue to exist as long as it has products and / or services that satisfy customer needs.

Question number 2: Who is HR’s most important customer?  I asked the same group of HR professionals this question and overwhelmingly and emphatically they said “employees!”  Wrong again .  Now obviously HR spends a lot of it’s time serving employees, and yes the employee group is clearly a customer of HR, as are managers, other departments, executives, retirees, covered family members, etc.  However, HR’s most important customer is the company itself.  In today’s business environment, HR exists, along with other support functions like IT, to help the company create value for it’s customers.  Let that statement sink in for a minute.  When I ask many HR professionals what HR’s primary role is, I hear some version of “HR’s job is to sit in between employees and management…”  “To sit in between” suggests that HR isn’t part of either group.  Others tell me it’s HR’s job to “look out for” the employees.   Other’s say to “hire and fire.”  These views represent traditional notions of HR, or really “Personnel” or “Labor Relations.”

Companies of all sizes need much more from HR today.  Viewing HR”s primary role to support the company (and it’s customers) results in a much different view of what the HR function should be doing.  I’ll illustrate this point with a few examples I borrowed from a CAI conference speaker and noted HR guru David Ulrich.  Dr. Ulrich calls this new customer focused view of HR “Outside-In” HR.

hr outside in_ulrich_hr domain.png

Companies exist to satisfy a customer need.  In doing so they provide jobs and shareholder returns.  A firm’s talent is at the heart of satisfying that customer need and HR should be driving what kind of talent is attracted to and remains at the company.

Where does an HR leader start?  The most important, and difficult step, is to shift your perspective and your team’s perspective to a company – customer focused view. Next, go visit some of your company’s customers.  That’s right, ask sales to attend a few customer meetings.  These experiences will open your eyes to how your company provides value to customers and what attributes attracts them to your company.  The neat thing is that customers and top talent are attracted to similar things.  And when both groups are happy, amazing things can happen!  Think about it!

Let us know if CAI can help you transform your HR focus.

doug

 

Doug Blizzard, MBA, SPHR, SHRM-SCP serves as CAI’s Vice President of Membership, and has been with CAI for more than 15 years.  Doug is well-versed in the world of HR from compliance issues to workforce management to aligning business objectives with HR.  He strives to constantly improve the member experience and provide employers with the confidence needed to turn fears and opportunities into practical actions and results.   If your HR team could benefit from some guidance, you’ll want to learn more about CAI.

 

Fixing a Broken Performance Management System – Part I

Tuesday, July 5th, 2016

As a manager, few things are harder than delivering honest performance feedback to an employee.  Of course giving bad news isn’t supposed to be Performance-Review-Chalkboardfun.  Some managers avoid giving bad news altogether hoping performance improves on its own.  Others sugar coat the news to the point that the employee can’t see the problem.  Then there are those managers who just “tell it like it is” with no filters or tact.  They may succeed in getting their point across but at a cost.  

Many managers struggle equally at giving good performance news.  Some pour on the kudos so much or so generically that employees aren’t sure what specific actions are being praised.  And then far too many other managers don’t take the time to give any feedback at all, usually because they are so “busy.”   It’s no wonder why HR professionals and executives alike regularly bemoan the state of their performance management process.  So it seems that the only people that like how performance management is practiced at many companies are those slackers who aren’t being appropriately addressed …

At what cost? Employee underperformance is at epidemic proportions in some companies.  On average, U.S. managers waste 34 days per year dealing with underperformance.  Tolerated underperformance is also a leading reason top performers, who have to work harder to cover the slack, leave for greener pastures.  Eventually this underperformance affects customers and that of course affects the top and bottom line.  Don’t believe me, think of how frustrated you are as a customer when you’re at the hands of an underperforming employee.  How does that employee’s behavior affect your future buying patterns? 

The Cure.  Fortunately the cure for poor performance management is simple to understand and it doesn’t hurt.  And to be clear, the problem isn’t with whatever appraisal form you use. I’ve never seen an appraisal form that makes up for poor hiring, unclear expectations, infrequent or non-existent 1:1 meetings with employees, poor managers, poor execution,  and so on.  More on the form in next week’s article.

First, most employee performance problems are really hiring problems.  We regularly hire people that don’t fit our culture and then we waste valuable time trying to “fix” them.  I heard it put once, you’re hired [too quickly] for what you know and fired [too slowly] for who you are.  The cure: only hire people that fit your culture.   At this point I normally see executive eye rolling when I speak on this subject.  I realize that “defining your culture” seems like another “squishy” HR thing to a busy executive but the process really can be quite simple.  Minimally take your company values and find people that possess those values.  Of course this assumes we have values, and that we live those values daily.  Applicants either possess the values or they don’t.  This isn’t a 1 – 10 rating kind of thing.  If they posses the value, then take Gino Wickman’s advice in his book Traction and ask yourself for each applicant:  Do they Get it [the role], Want it [to work with you], and have the Capacity [knowledge, skill and capability] to do it (GWC).  I could add twenty more steps for defining your culture, and they probably won’t get you any farther than your values and GWC.

Second, there should be no disagreement over what successful performance looks like at your company. Instead of using out dated and/or generic job descriptions, consider setting clear expectations and measures for each employee that are directly or at least indirectly tied to organizational priorities.  So for example, a typical CFO job description might say “Assure optimum utilization of financial resources through sound forecasting and cash management.”  Alternatively, a success profile would say:

  • Reduce costs by 10% across-the-board to achieve EBIT objectives for the next fiscal year. 
  • Establish cross functional cost reduction teams within three months completing work in 12 months.
  • Within nine months, achieve a 15% price reduction in raw materials.
  • Develop a back-up sourcing plan to ensure cost reduction of $700,000 in year one.

Now imagine you’ve taken the time to establish annual performance objectives like that with each of your employees.  I realize it takes time for the manager.  But think how much easier it would be to measure performance, to deliver feedback.  Think of how much ownership the employee would have over the results.  And think of how much better your company performance would be if all employees were working a similar plan.  Unfortunately, without such specificity, the responsibility rests on each manager to subjectively determine if someone’s performance is satisfactory.  And that is a very uncomfortable place to be and is one explanation for why typical performance ratings don’t reflect reality.

So, hire people that fit your culture and provide crystal clear expectations of success for each employee and you’re well on the way to fixing your broken performance management system.  Tune in next week when I cover more secrets to fixing your broken system.

If you have employees in North Carolina and need help implementing or fine-tuning your Performance Management system, CAI can help with advice, information, tools, templates and more.

Three Messages from My Wife to Every HR Professional

Tuesday, March 8th, 2016
Doug Blizzard, VP of Membership

Doug Blizzard, VP of Membership

Not to air my personal laundry, but my lovely wife who recently went through a trying career experience has some important messages for HR.  I had to hear these messages almost every night for six months, so now you’re going to hear them.  Enjoy!

Let me set the stage.  Her employer of 27 years was purchased and her job was relocated to another part of the country. Suddenly her very predictable, comfortable world was turned upside down.  Her employer treated her very well on exit, but suddenly she had to figure out what to do with the rest of her life.  Sound familiar?  She devoted her entire working life to this one company.  I realize I’m biased, but she offered an impressive set of skills to future employers.  Promoted frequently, she was a solid professional.   Finding a new job would be easy…so she thought.

Message #1: Are companies really looking for good people?  My wife applied for over sixty positions during her six month job search, most of which were lower level. She just wanted to get a foot in the door.  She didn’t receive so much as a thank you email or even an acknowledgement from ANY of the positions for which she applied.  Not one, ever. And she was applying to name brand companies…who frankly should know better.  Ask yourself if your application process works the same way and if it does is that the message you want to send good people?

Message #2: Dial back your Applicant Tracking System a little, you’re missing good people!  She clearly understood why a company would have an ATS, however her experience was that there were so many nit-picky questions and it was obvious to her when she would fall out.   When was the last time you reviewed your ATS screening process?  Have you dialed it too tight to weed out the occasional bad apple?

Message #3: Don’t be too busy to network like I was.  I throw this last message in because rarely does a week go by that I don’t hear from an HR professional who suddenly finds themselves in the same position as my wife.  While she was working, my wife didn’t make time to network.  When she lost her job she just couldn’t get her head around what networking meant.  Is that an event I go to?  Is it Linkedin?  I don’t have a lot of contacts since I didn’t work to develop them during my career.  I don’t feel comfortable asking help from people I haven’t talked to in awhile.  Sound familiar?  Here’s one easy way you can build your network – visit the MyCAI Forum everyday and answer someone’s question.  That’s it, five minutes max! You’ll help someone and become known as an HR problem solver, and suddenly everyone will want to know you.  And then when you need help…

So how did my wife’s story end?  Well she was pretty depressed with the job search.  One night we went to a party at a friends house (she didn’t want to go).  A friend asked her what she’d been up to.  He needed someone with her skill set to do commercial business development for his small business.  She’d never been in BD before, but had a lot of knowledge of and contacts in his industry.  She started six months ago.  His little company had it’s best year ever and is now the fifth largest provider in the country.  He attributes a good part of the growth to her.  Not bad!  And again, sixty other local companies didn’t even acknowledge her application.  Their loss.  Think about it!

Have any other helpful messages you’d like to send to HR? Let us know in the comments!

How to Create an Attendance Policy That Fits Your Culture

Tuesday, December 29th, 2015

In today’s post, CAI’s Vice President of Membership Doug Blizzard shares helpful tips to create an attendance policy that will work well for the needs of your business.

Absent.  Tardy.  Leave early.  Words that have made managers cringe since the first workplace.  “Attendance” can be a real hornet’s nest that can go in many different directions.  When you’re too lenient people can take advantage. Too strict and it can damage morale and/or drive away good people.  Finding the right balance can be tricky even for the most seasoned of managers.

When you think about an employee’s overall work performance, job requirement number one is that they come to work, right?  Duh. Well “come to work” isn’t as straightforward as it used to be, particularly for workplaces with higher numbers of “white collar” employees.  Telework, telecommute, and flextime are all much more prevalent today than say ten years ago, and all of them seem to live in a realm above something as disciplinary or 1970’s sounding as absenteeism and attendance.

So step one for a good manager is to understand the company’s stance and/or policy on attendance or absenteeism and then fall in line with it.  I’ve seen many technically minded managers fail when they attempt to implement their own attendance policy in the absence of a clear company policy.

Let’s now turn to how to handle the chronically late or absent professional employee.

Strike three you’re out!  One strategy is to adopt a very strict attendance policy.  Every tardy, leave early, or absence is documented to the minute and after a preset number has been exceeded disciplinary action ensues.  While this approach is a way of life for many employers who have large numbers of hourly employees, it will sound totally foreign to more white collar environments.  If you’re managing in a strict policy environment, perhaps this article isn’t for you.  Otherwise, read on …

Keep those germs out of here! It bears saying that you really don’t want sick employees in your workplace infecting other workers, a situation some call “presenteeism,” meaning they’re present but very unproductive because of an illness (and infecting others making them less productive).  And this advice goes for you as the manager when you’re sick.  No one wants you there and you’re setting the wrong example. Work from home if you must.

But what about the person that is just sick a lot? There are a few regulations you must consider that deal with sickness such as the Family Medical Leave Act (must have 50 employees or more) and potentially the Americans with Disabilities Act (15 employees or more).  Once you’ve exhausted those requirements, you may find that you just can’t continue to employ someone who is chronically not there or late, even if they have a legitimate reason(s) for being absent.  My typical advice is to stay focused on job performance.

If someone is always calling in sick or late, if you’re paying attention, their job performance is suffering as measured by project completion, customer satisfaction, effect on other employees, cost, etc.  Focus on the performance and not the “sickness.”  The more you make it about the sickness the more you’re making their case for being “disabled” or covered by some other law.

What about the person that is out a lot and/or absent who really isn’t sick?  Think of all the reasons, legitimate and not, for someone to be absent.  Hundreds of scenarios.  Some are obviously ok and not ok, many are grey.  Do you really want to have to make an individual decision every time someone is absent as to its legitimacy?  That’s why my advice, absent a clear policy, is to stay focused on job performance, unless of course they are misleading you as to why they are out, in which case disciplinary action is usually called for.

In fact, I don’t believe in regulating attendance very strictly on professional exempt employees unless someone gives me a reason to do so.  We compensate professionals with a salary to get a job done regardless of how many hours that takes each week.  The more you treat them like hourly employees, for example strictly regulating their attendance, the more they will fall into an 8 to 5 mentality, which is not what you want from a professional employee.  I had a technical manager that insisted on managing his exempt professionals with our hourly attendance policy.  He was flabbergasted that the professionals demanded overtime pay whenever they stayed late or worked during a weekend.  Again, he created that 8 to 5 mentality.

But what if their job performance isn’t suffering? Perhaps some of your “best” employees just don’t like to work to a strict schedule. You’re concerned if you lean on them they might leave.  I would look to your company culture and policy.  If your firm expects people to work a strict schedule then you will need to reign in your prima donna or risk losing other people and /or getting in trouble yourself.  Other employees who aren’t out a lot are watching your every move.  At some point their attendance will also start to slide if they see you’re ineffective in dealing with it.

What about consistency? Should you give more leniency to a long service solid performer who gets into a temporary bind or do you treat them the same as you would a six month employee?  Trying to be 100% consistent with attendance on professional employees is a losing proposition.

When to take action? When someone’s attendance is affecting their performance or others, or is so far above the norm from the average employee, it’s time to start the disciplinary process.  Follow your company’s process, or in the absence of one I like the three strikes rule.  Talk to them about it once, then provide a written warning, then on strike three let them go.  At each step make it clear what successful attendance looks like and the consequences for not improving.  And make sure you document every step clearly so you can go back and see a clearly communicated line from offenses to termination.

One policy or two? Am I suggesting you treat exempt employees different than hourly employees?  Well legally they are different.  The hourly employees typically only get paid when they work unless you provide them with a paid time off benefit.  Absent a policy, I would also stay focused on performance with hourly employees when it comes to attendance issues.

You may be the problem. Your own management style and behaviors can greatly contribute to or reduce employee absenteeism.  Poor management causes more employee “sickness.” Chose to be a good manager.  Set clear and high expectations, hold people accountable, and treat them like adults and you’ll be amazed at how those attendance issues you’re having go away.

Have any more questions about how to tailor an attendance policy for your firm’s culture? Call our Advice and Resolution team today at 919‑878‑9222 or 336‑668‑7746.

If you have any further ideas about how to handle absenteeism, please let us know in the comments!

The Best Metric for HR Effectiveness: Revenue per Employee

Tuesday, September 18th, 2012

I recently did a quick Google search on the number of different HR metrics out there to “help” HR professionals better measure their effectiveness, their return on human capital, etc. I found 441 on one list. Holy cow! No wonder many HR Pros struggle with metrics…

The problem with many HR metrics is they are just that, HR metrics (versus business metrics). We struggle to explain their relevance and bottom line impact to our C-Suite executives. If you could only pick one metric, or perhaps more appropriately only had time to measure one metric, I would submit that Revenue per Employee (RPE) would be it. It’s been around forever and is well understood in B-schools. Just take the revenue produced by your company or business unit and divide it by your total number of Full Time Equivalent (FTE) employees.

Many HR activities impact both sides of the equation and it’s our job as HR Pro’s to show our executive teams how. Employee Performance, Innovation, Sales, Culture, Employee Engagement, headcount, turnover, recruiting effectiveness, supervisory skills, training programs, etc. They all impact RPE.

How to use it… Just compare your number over time – is the number going up or down. Go online and find out what your industry averages look like. How do you stack up? You can also use RPE to help justify your next HR initiative. RPE thinking can help you determine if your department is focused on the right priorities. Try it out!

I’d love to hear from companies using RPE in their HR strategic planning. Please share!!

Photo Source: Victor1558

Human Resources Strategy for the Rest of Us

Tuesday, February 22nd, 2011

A practical approach to becoming a key strategic player in your organization.

In part one of this post, I encouraged HR professionals to avoid the red herrings that distract you from maximizing your organizational impact.  So what should HR professionals be focusing on?

I believe it’s improving the most important asset the company invests in – its people.  The adminstrivia around HR can be like kudzu taking over and killing any strategic inclination many HR professionals have.  Believe me, I’ve been there.  But by focusing too much on administrative tasks, whether by choice or force, we lose sight of what my dad knew 30 years ago as an HR professional and what Gallup and others now proclaim (and charge big bucks for).  And that is the simple fact that companies that practice positive HR and people management have more engaged employees.  More engaged employees result in more engaged customers.  More engaged customers mean higher sales.  Higher sales mean higher profits (usually).

“Positive HR and people management” put simply is a strict focus on recruiting and retaining top talent leading to an engaged workplace.  Gallup has found that almost 20 percent of employees are actively disengaged, costing companies $3,400 for every $10,000 in salary in lost productivity.  A recent Cornell University study found that companies practicing positive HR and people management had 22 percent higher sales growth, 23 percent higher profits, and a 67 percent drop in employee turnover.  Bottom line, it’s in your best interests and your company’s best interest to focus more on engaging employees and less on the administrivia.

I doubt few HR professionals would disagree with the benefits of employee engagement.  Understanding is the easy part; however implementation is tricky, particularly if you work in a company that doesn’t yet subscribe to the benefits of positive HR and people management.  I will concede that some companies will never buy into positive HR, so how can the average HR professional in the average company really impact employee engagement?  Well, two primary ways – first, only hire people that match the critical success factors for your positions.  Quit focusing so much on how applicants meet the “job description” and focus more on their past success and how that matches the success you need in the job.  I’ll discuss this topic in an upcoming blog.  Stay tuned.

If you can find top talent but can’t keep them, you’ve got a bigger problem.  That’s why I feel the most important thing you can do right now to impact engagement is to become what I call the “Chief Supervisor in Charge.”  Focus on improving every aspect of the performance of your supervisors and managers.  There have been countless research studies showing how important people’s supervisors are  on their decision to stay, their productivity, their morale, how they view the company, how they treat customers, etc. —in short their engagement (and the company’s profits).

So how do you measure up?  Ask yourself a few simple questions.

1.      Are you focusing on improving the effectiveness of your supervisors and managers or rather on constantly telling them what they can and especially what they cannot do?  Put differently, are you primarily a coach or a cop?

2.      Do you conduct more supervisory and management training on harassment, workplace laws, permissible interview questions, etc. or more on helping your supervisors and managers become more effective communicators, motivators, counselors, performance coaches, etc.?  It’s all important, but you choose where to focus more attention, the culture you create and the results you’ll see.

3.      Are you modeling the effective behaviors you want from them as employee situations arise or are you beating them over the head for the mistakes they make?

4.      Do they see you as a partner, a valued confidant or as an irritant?  Don’t know?  Ask them.

5.      Are you weeding out those supervisors and managers who don’t share the company’s values, or do you just continue tolerating them while they poison everyone else?

6.      Are you measuring the impact of your supervisor and manager behaviors with regular employee surveys, exit interviews, focus groups, etc.?

I could go on, but I think you see the point.  If you don’t know where or how to start, consider conducting an employee survey.  When done correctly, employee surveys can give you a quick read on supervisory and management effectiveness and also how you measure up on employee engagement.  You can also look at your turnover – many times that results from poor supervision.  Find out why people are really leaving and the costs to your organization.  These tools are good ways to help you make the case to management that you should be spending more time improving supervision.

To wrap up, when I talk to HR professionals that are in fact “at the table,” they spend the bulk of their time either finding top talent or, as I’ve discussed, keeping and motivating top talent.  They try to outsource the administrivia.  Surprisingly, you don’t need a lot of extra money or perks to retain key talent, but you do need a great work environment, and that starts and ends with very good supervisors and managers.  They are the key.  In fact, Gallup maintains they are the company for most of your employees.  Spend more of your time coaching them and you’ll quickly find yourself in the middle of the game, at the table, and helping your company grow and succeed.

Photo Source: Wikimedia Commons

Good Strategic HR Discussions? Or Just Dead Ends?

Tuesday, February 15th, 2011

Back in 2005, Fast Company magazine published the now famous (or infamous depending on your perspective) article entitled “Why We Hate HR.”  The basic premise was that HR professionals are good at transactional “administrivia” like pay, benefits and retirement (all functions that are being outsourced) but lack the skills (or interest) necessary to play a more strategic role in managing talent.   Since then, thousands of articles, presentations, webinars, conferences and the like have advised HR professionals on what they need to do to “get a seat at the [executive] table.”  Most advice, while good, follows a few key themes and in my opinion either distracts our attention or confuses us.

Theme 1: To get a seat at the table, you must talk the language of business. If you want to be taken seriously you must understand financial statements, gross margin, EBITDA, return on investment, depreciation, cash flow, retained earnings, etc.  These terms are important, and I agree that HR professionals need to improve their business acumen, but just because you can explain how to play the game doesn’t mean you will be able to play the game or even be put in the game for that matter.

Theme 2: To get a seat at the table, you must align HR Strategy with business strategy and overall think and talk more strategically. Ever sit through a presentation on HR strategy?  I’m an educated man, but frankly, I don’t understand half of what they’re talking about.  I hear a bunch of words like synergy, value added, key performance indicators, knowledge base, alignment, etc. and of course a bunch of fancy charts and diagrams.  In the Fast Company article Keith Hammonds describes an HR strategy presentation he sat through: “There is mention of ‘internal action learning’ and ‘being more planful [sic]in my approach.’ PowerPoint slides outline [the company’s] initiatives in performance management, organization design, and horizontal-solutions teams.  [The presenter] describes leveraging internal resources and involving external resources — and she leaves her audience dazed. That evening, even the human-resources pros confide they didn’t understand much of it, either.”  Strategy is very important, but we’ve overcomplicated it and we spend way too much time trying to describe what “IT” is and how we need more of “IT.”  People in the real world don’t have time for that.

Theme 3: To get a seat at the table, you must become certified and the more initials the better. PHR, SPHR, GPHR, CEBS, CCP, MBA, etc.  Isn’t it funny how some of the most successful people in the United States never graduated from college?   People like Bill Gates, Michael Dell, Steve Jobs, Larry Ellison and Richard Branson to name a few (I know a few of them later earned honorary degrees – but you get the point).  Don’t get me wrong, I’m a big fan of higher education and have a few initials myself (MBA, SPHR), heck, we even have a highly successful HR certification prep course here at CAI, but that alone will not help you get, or keep, a seat at the table or to become more strategic.

Theme 4: To get a seat at the table, you must implement HR Metrics. To get a seat at the table, you must develop a robust HR scorecard and track those key performance indicators that result in HR success.  Turnover, absenteeism, time to hire, cost to hire, HR as a percentage of payroll, etc.  While I’m a big fan of numbers (thanks to my mom the accountant) and I firmly believe what gets measured gets done, developing really good and relevant HR metrics is hard and tracking them even harder.  I’m not saying you shouldn’t develop them, just don’t start here.

Theme 5: Forget it, you’re not getting a seat at the table so complain about it – blame the company. I hear a lot of HR professionals complain about their companies, their management teams, the CEO, etc.  “I would love to be more strategic but my company just doesn’t understand the value of HR” or, “We don’t have the money to spend on training, day cares, health care centers and the like.”  So basically, it’s the company’s fault you’re not more strategic. Fortunately, there are plenty of HR support groups out there to help you refine and develop your own sad story if you are so inclined.

Ok, so with all the books, articles, presentations, consultants, etc. out there telling HR professionals how to be more strategic, how to get a seat at the table, and how to be a key business partner, why is it that many still aren’t?  I’ll address that in my next post.

Photo Source: U.S. Department of Defense

Recent Studies: Better Management Equals Better Financial Results

Monday, April 12th, 2010

Recent research studies from Cornell University and RainmakerThinking, Inc. point to direct links between how well organizations manage employees and their financial results.

The Cornell study of small businesses (average size of 53 employees) found that companies implementing effective employee management strategies experience 22.1% higher revenue growth, 23.3% higher profit growth and a 66.8% reduction in employee turnover compared to companies that don’t.  Workforce alignment practices in the areas of employee selection, people management, and motivation had the most impact on business results.

The most influential strategies include:

  1. Basing recruitment on organizational fit rather than on just job skills.
  2. Using self-management rather than a controlling management strategy, giving employees greater discretion in how they work.
  3. Creating a family-like environment/community to motivate and retain employees rather than focusing on just pay as a motivator.

The second study, by Bruce Tulgan and RainmakerThinking, Inc. , found that increased supervision and management was the number one most effective business strategy during the economic crisis of 2009.  The findings are based on a study of thousands of managers from organizations in the private, public and nonprofit sectors. You may recognize Bruce Tulgan – he was a keynote speaker at CAI’s 2008 HR Management Conference.

The research found that leaders and managers were likely to pursue at least one of three strategies to survive during 2009:

  1. Cost cutting;
  2. Innovations other than cost-cutting; and/or
  3. Increased supervision and management, including more one-on-one training, direction, and feedback from managers and/or more written tracking of individual performance.

Managers who pursued all three strategies reported having the strongest bottom line financial results in 2009.  The individual strategy that had the biggest impact on results was better management.

Photo Credit: nDevilTV