Ping pong and Taco Tuesday won’t save you!

Check out this previous blog from 2017 – it’s like the Yoda of employee retention. You don’t need to keep everyone! Crazy, right? Does this still hit the mark? Share your quick take!

You Don’t Actually Have To Retain Everyone!

In 2017, and beyond, employee retention will become a huge focus. Some could argue that employee retention is always an important issue, but during major recessions, it becomes less of a stress for sure. With shifting employee demographics, retention will be a hot item over the next few years as we see more and more of the baby boom generation leave the workforce, and we do not have enough young skilled workers entering the workforce to replace those leaving.

Here’s a dirty little secret, though:

“You don’t actually have to work to retain every one of your employees!”

Why? Because most of your employees won’t leave. We like to tell ourselves that every employee can leave, and by the law of the land (at least for now under the Trump administration), they actually can, but statistics clearly show that most don’t leave.

The average retention rate across all industries is about 85%, year over year. That means 85 out of 100 employees will probably not leave you. You are really worrying about 10-15% of employees. Ironically, it’s about 10-15% of your top-performing employees that make the most difference in your company.

First, we have to solve one problem you have. Your ‘retention’ strategy is flawed and is pushing good employees out the door, the ones you want to keep!

Here’s why:

  1. You’re smart and send out a retention survey to find out from all of your employees what they want to be retained. You’re like 99% of organizations.
  2. The results of that survey tell you what the majority of your employees want to be retained. Things like ping pong, hot yoga, 27 smoke breaks a day, free tacos on Tuesday, etc.
  3. You implement a variety of the desired retention ‘fixes’! Yay!!!
  4. Your retention number actually stays the same, or maybe even gets worse.

WTF!?!?!?

Remember what I said above? You shouldn’t be concerned with about 85% of your employees who will never leave. They are not going anywhere! You shouldn’t be surveying all of your employees, you should be surveying only your best employees, those you are desperate to keep!

What you’ll find is that the 10-15% of highly valued employees you want to retain, what they want to be retained is very different from what the hoard wants to be retained! They’ll want a clear career path, performance-based compensation, more talented co-workers, better work tools, etc. They couldn’t give a shit about ping pong and Taco Tuesday.

Great HR isn’t working to make everyone equal. Great HR is working to make your organization better than your competition. That happens by having noticeably better talent. You get that kind of talent by listening to those employees who are noticeably better, not those who complain about the color of your new carpet.

What would this create?  It creates a high performing organization that attracts high-performing employees. Most organizations won’t do this because they believe they need to work to retain all of their employees. “We’re all high performing, Tim!” No, you’re not. Once you get that idea out of your head, you can do some really cool, industry changing stuff!

Why You Should Recruit from Competitors

Is it cool to hire from your competitors? This usually gets mixed responses. If you ask 100 Talent Acquisition Pros, half might say it’s a no-go due to agreements not to poach from each other – a common practice in the corporate world.

Infamous legal dramas, like the Silicon Valley case, highlight the downsides of these secret pacts. Between 2005 and 2009, tech giants allegedly avoided recruiting each other’s people, causing lower wages and less job mobility. The lawsuit claims this left workers in the dark about better-paying opportunities.

Surprisingly, openly declaring an agreement not to recruit from competitors is not just ethically weird – it’s illegal. Yes, you heard that right. While it’s tempting to dodge the hiring treadmill in a competitive market, there are smarter ways to deal with it.

One approach is to invest in better pay, engagement, and talent development. DUH! Smart companies know it’s crucial to pay at or above market rates to keep their team happy. Instead of reacting to high turnover with higher wages, these companies stay ahead by regularly adjusting compensation to retain top talent.

Choosing between paying upfront or dealing with turnover costs is a classic business challenge. Reactive companies end up paying more on the back end due to turnover and higher wages. On the flip side, proactive organizations invest upfront in talent development, keeping a competitive edge by promoting from within and having visionary leaders.

I would actually love to see legislation that makes it illegal if you’re a corporate recruiter and you don’t make cold calls to recruit! You saying you’re a ‘Recruiter’ but you don’t recruit! That’s the real criminal activity going on!

The Change Code

What’s the one thing that drives employees crazy? Adoption new technology? No. Not enough PTO? Probably, but no. The biggest thing? Change.

Seriously, it’s the top contender for the most disliked thing a company can do to its employees. I know, some claim they’re all about change—love it, embrace it, advocate for it. But let’s get real. Those folks who shout about embracing change? They’re the same ones devastated when their favorite TV show gets the boot. Truth is, most people hate change. They like things steady—the same morning coffee routine, knowing their familiar doctor is on their insurance plan, the predictable paycheck schedule. That’s their jam.

So, here’s the secret to keeping your employees around.

Your folks don’t secretly plot their escape route. Starting a new job, dealing with a new boss, different location? It’s a headache! They actually want to stick with you. But, and this is a big but, they don’t want their job or the company to become unbearable. That’s where the problem lies: Change is bound to happen, but it’s also what they can’t stand.

How do you navigate this without causing an uproar?

Simple: Communication is key. Many HR departments tend to blow small changes out of proportion by drowning everyone in unnecessary info. New payroll system? Cue the panic. Checks arrive on different Fridays now! The usual reaction? Form a committee, plaster posters, rewrite policies, and talk about it endlessly for months. But hold on.

What’s needed is straightforward talk. At all times. Hey team, our payroll’s getting an upgrade. Less errors, more savings for the company. Checks will come on different Fridays. Get ready, and if you need help, your supervisor’s there for you. Change kicks in the next pay cycle. Done!

Here’s the thing: People hate change. So, let’s not make a big fuss over small changes! Only communicate the big stuff. When major changes happen less often, it won’t feel like a constant whirlwind. Your employees WANT to stick around. They HATE change. Stop bombarding them with unnecessary upheaval just to look busy.

Employee retention? Not rocket science. Because, deep down, your employees would rather stay put.

Maximizing Employee Referrals: The Key to Hiring Success

Referral hires often stand out as the cream of the crop in any company’s recruitment efforts. It’s a simple equation:

Good Employee + wanting to stay a good employee + employee’s reputation = usually good people they recommend to HR/Recruiting to go after and hire

I’m like Einstein when it comes to HR math! However, here’s the challenge: despite this equation, many companies struggle to receive enough referrals. We’ve analyzed our referral process, fine-tuned collateral materials, and even leveraged technology to automate referrals. Yet, the numbers remain short of our expectations and needs.

There’s a straightforward but often overlooked aspect: giving employees explicit permission to share job openings within their personal and professional networks every time a referral is needed for a specific position.

HR excels in roll-outs—we’re masters at initiating programs. However, where we often stumble is in the continuity of these programs post-roll-out. Brutal truth, but true.

So, how can you ramp up your referral game?

  1. Establish a program (surprisingly, not all companies have one).
  2. When in need of a referral, ask for it every single time. Assuming that employees will naturally share openings isn’t always effective.
  3. Specifically “give permission” to employees to share job openings on their social networks—Facebook, LinkedIn, Twitter, Instagram, TikTok you name it!

BEST PRACTICE TIP: Create departmental email groups. When a relevant position opens up, send an email to the group with standard referral language and an easily shareable hyperlink along with clear instructions.

Granting “permission” triggers action—it’s a psychological thing, and it works wonders. Think about it, like you were a 5 year old.  Your parents tell you, you can’t ride your Green Machine in the street.  Then, one day, Mom is out getting her nails done and your Dad sees you doing circles in the driveway on that Green Machine and he goes “Hey, why don’t you take that into the street?!”  What do you do?  You immediately take that bad boy for a ride in the street! Dad “gave you permission” and you ran with it!

Referrals aren’t quite the same, but it’s surprising how some employees question whether they’re allowed to share job postings with friends and family. Don’t assume—they might surprise you.

So, empower your employees. Give your employees permission to get you some referrals! Or what if you allowed anyone in your company to hire?

Does Your Average Employee Tenure Matter? (New Data!)

I keep getting told by folks who tend to know way more than me that employees ‘today’ don’t care about staying at a company long-term. “Tim, you just don’t get it. The younger workforce just wants to spend one to three years at a job than leave for something new and different.” You’re right! I don’t get it.

BLS recently released survey data showing that the average employee tenure is sitting around 4.1 years.  This speaks to my smart friends who love to keep replacing talent. I still don’t buy this fact as meaning people don’t want long-term employment with one organization.

Here’s what I know about high-tenured individuals:

1. People who stay long-term with a company tend to make more money over their careers.

2. People who stay long-term with a company tend to reach the highest level of promotion.

3. People who tend to stay long-term with a company tend to have higher career satisfaction.

I don’t have a survey on this. I have twenty years of working in the trenches of HR and witnessing this firsthand. The new CEO hire from outside the company gets all the press, but it actually rarely happens. Most companies promote from within because they have trust in the performance of a long-term, dedicated employee over an unknown from the outside. Most organizations pick the known over the unknown.

I still believe tenure matters a great deal to the leadership of most organizations.  I believe that a younger workforce still wants to find a great company where they can build a career, but we keep telling them that is unrealistic in today’s world.

Career ADHD is something we’ve made up to help us explain to our executives why we can no longer retain our employees. Retention is hard work. It has a real, lasting impact on the health and well-being of a company. There are real academic studies that show the organizations with the highest tenure outperform those organizations with lower tenure.  (here, here, and here)

Employee tenure is important, and it matters a great deal to the success of your organization. If you’re telling yourself and your leadership that it doesn’t, that it’s just ‘kids’ today, we can’t do anything about it, you’re doing your organization a disservice. You can do something about it. Employee retention, at all levels, should be the number 1, 2, and 3 top priorities of your HR shop.

Why are we always trying to move up? #SHRMTalent

Yo! I’m still out in Denver at the glorious Gaylord Rockies for SHRM Talent. If I don’t make it back to Lansing, MI, there’s a 74% chance I got lost in the Gaylord and I’m thriving off the food small children dropped along the way.

Some common themes coming out of SHRM Talent:

  1. Hiring is hard.
  2. Employees seem changed. Neither good nor bad, but different.
  3. There’s a new normal, but we don’t know what that normal is yet.

One of those things that a lot of folks are talking about is what most of us consider the normal career ladder. You start at the bottom and then you spend the next 40 years of your life climbing up it, and then you die. Turns out, people seem to think that isn’t as glorious as we make it out to be.

The problem is we still view this climb and desire to climb as one of the main characteristics of a great employee. Another problem is people want more and more money and the way to get more money is to get promoted. Another problem is many times the people who want to move up, actually suck at the next level. Another problem is we use the promise of promotion as a way to retain talent when our total compensation isn’t great.

We’ve got 99 problems, and moving up the career ladder is one big one!

How could we burn down the ladder and create something else?

If I had this answer, I would not be writing blog posts from the desk at a Marriott hotel in Denver on a Tuesday evening! Let’s be honest.

What I know is the future of talent development is going to look different. There will be ways for employees to move horizontal, down, and on an angle, not just up. We will figure out the compensation stuff. I mean we already have, but we get caught up in traditional compensation design and philosophy, another problem. Traditional labor seniority systems really did a job on us over the decades! We fight constantly to stay within those constraints at all levels and within all industries.

I think it starts with us developing employees around a concept of professional competence and skill development, and not around the next level up within the organization. There use to be a time in our world were we valued mastery. We devalue mastery in today’s world, and we overvalue one’s ability to navigate the path upward. Our children are taught that they should strive for and desire upward levels. Instead of reaching mastery within a field.

That’s a hard organizational culture shift to make happen.

I think the tech world might have a better chance of reaching it faster. In that world, the value of mastery is greater. You can be a master developer and definitely make more and bring more value to a company than the manager of product management. And that’s not dumping on someone who wants to lead people, because we all know how difficult that is as well. But, just because you lead people doesn’t mean you necessarily are more valuable than the people you lead individually.

It’s such a complex and difficult topic, which makes it fascinating to talk about the future and its potential. To work in a world where each person is valued on their individual skill set and not based on the level of organizational ladder achievement would definitely be something to see. I think we all know some managers that would be in for a pay cut!

Should NCAA Coaches Try and Save Athletes Who Enter the Transfer Portal?

It’s fairly rare that I open up on this blog about my love of college athletics, but there is something going on in college sports that has such a great parallel to our world of work. It’s called the Transfer Portal.

If you aren’t familiar with the NCAA Transfer Portal, it’s basically a site set up that aids a college athlete wanting to move from their current school to another school. For all intents and purposes, it has added free agency to college athletics.

Previously, when college athletes signed with a school and wanted to transfer, they had to get releases and sit out an entire year, wasting a year of eligibility, so it wasn’t done very often. Basically, the colleges sort of owned the college athlete and the college and coaches had all the power. The transfer portal and new rules have flipped the script on this idea completely and the athletes now really have the power.

Across all divisions of the NCAA, there are thousands of student-athletes who entered the portal looking to transfer to another school where they believe the opportunity will be better. Some will elect to stay at their original school, some will transfer and find more success, some will transfer and find less success.

The reality is we are asking 17 and 18-year-old kids to make a giant decision and they are heavily recruited and promises are made, and when it all comes out in the wash, many times the athlete determines they made a wrong decision. You also have kids who had a dream of attending a certain school but didn’t get offered, they have success at the school that would take them, and now they are in a position to reach that dream.

The question is, how should college coaches treat those who are looking to transfer?

If you read this blog, you know I’m a huge fan of re-recruiting and save strategies. I think if you believe in someone and made a commitment to them, we owe it to them to try and keep them. “We didn’t offer you a scholarship thinking you would be awful. We believe you’ll be great and we believe this is the place you’ll be great!”

For all the focus college coaches put on getting talent from the transfer portal, I believe they should be putting as much focus, if not more, on ensuring their own team doesn’t enter the portal. We have yet to really hear much about how college coaching staffs have had to change their strategy around high-level recruits and younger players who didn’t get the playing time they believe they should get, and how they are working to keep those individuals engaged and believing their school is still the school for them.

The conversations seem one-sided right now, but I believe we’ll start to see retention strategies similar to what we see from employers. These colleges invest a ton of time and resources to get high school athletes to sign and every one that leaves is a wasted opportunity. I would think you will start to see more one-on-one development happening where these coaching staffs are bringing in each player, those who are close to them and building a plan of development and success. “Let us show you how we are going to get you to your desired goals…”

We already see universities using NIL agreements/strategies to incent college athletes to come and to stay, so compensation is a part of this strategy as well, just like employers using retention bonuses and promotions. The question is always going to be for college coaching staff how much is too much? How much do we need to do for a third-string linebacker? What about a backup quarterback? You see a value chain growing across each sport and each position.

I foresee a time in the near future where every college athletic department, and some teams specifically, will have departments where their entire job is about athlete retention. Some individuals on athletic staff’ currently have this responsibility, but it’s not enough. When in any given year you can see 10-25% of your athletes leaving, it’s too much investment not to more effort into trying to save them.

Are Employer Vaccine Mandates Going to Kill Diversity Hiring & Retention?

If you follow most mass media outlets you would think the question posed is ridiculous! How the heck would vaccine mandates hurt diversity hiring, Tim? We all know the unvaccinated are mostly uneducated, Trump-loving, white folks! Right?! Right? Right…

Turns out, the “Unvaccinated might not be who you think!” The link is to a recent NY Times article and the current administration and the mostly left-leaning mass media don’t want all of us to know something:

“Almost 95 percent of those over 65 in the United States have received at least one dose. This is a remarkable number, given that polling has shown that this age group is prone to online misinformation

In New York, for example, only 42 percent of African Americans of all ages (and 49 percent among adults) are fully vaccinated — the lowest rate among all demographic groups tracked by the city.

This is another area in which the dominant image of the white, QAnon-spouting, Tucker Carlson-watching conspiracist anti-vaxxer dying to own the libs is so damaging. It can lead us to ignore the problem of racialized health inequities with deep historic roots but also ongoing repercussions and prevent us from understanding that there are different kinds of vaccine hesitancy, which require different approaches.

If you check the data in every major urban center, you see basically the same data. African Americans are more likely to be unvaccinated than white Americans.

Why does this matter?

I’m not judging African Americans about not getting vaccinated. I’m pro your body, your choice! I know this community has a deep mistrust of government and health care in our society based on history!

Here’s the problem! Every decision we make in organizations has short-term and long-term impacts. Many times we know and understand the short-term impacts. Often we have no idea of the long-term impact.

If Biden and his administration mandate all employers require employees to be vaccinated (I won’t get into the specifics of over 100 employees, etc.), and many enterprise employers, like major airlines, etc., require employees to be vaccinated or get fired, we are disproportionately impacting Black employees over every other race of employee!

Thank you, Democratic administration and President Biden! Thank you for getting more black workers fired than any other race by mandating vaccines. This is super helpful to our diversity hiring initiatives! What the what!?!

Stop it, Tim! This is about Workplace Safety!

Yes, it is. It’s always about something when we are firing black workers, isn’t it?

Ironically, I say this with a smile at how stupid we all are, the amount of workers who are getting fired, who are refusing to get a vaccine, who by a higher percentage are black workers, happens to almost identical the same percentage of Americans who actually die from Covid.

That’s to say, this number by percentage is extremely small!

“Yeah, but every life matters! If everyone was vaccinated we could have saved hundreds of thousands of lives!” Yes, you are correct, and I agree with you. Every. Life. Matters.

Inclusion.

Those vaccinated, matter. Those unvaccinated, matter.

Even all those black employees you have, who are fearful of taking a rushed vaccine that hasn’t had years of testing. Who have a history of bad stuff happening to them when it comes to government, healthcare, and mandates.

We love to think employer and government vaccine mandates are fine because it only impacts “the stupid”. Natural selection! If you’re too stupid to get the vaccine well then who cares if you get fired and die. Which is kind of the opposite of inclusion, right?

Mandates are easy when you are led to believe that it’s all about firing poor, dumb, white folks. But, when you look at the data and realize that once again we are targeting black folks more, are vaccine mandates still the correct answer?

(Okay, that’s like 3 vaccine posts in the last week. I’m done, you know my stance. I’m pro-vaccine, I encourage it for everyone, but I’m also pro-choice about decisions that impact your body.)

Delta Airlines Charging Unvaccinated Employees $200/mnth! Why?

At this point, if you’re in HR, you have seen news of Delta Airlines charging unvaccinated employees an additional $200 per month in health insurance premiums. Needless to say, there has been a strong reaction from the HR community to this announcement.

It’s interesting for sure as you have most HR pros believing everyone should get the vaccine, but also that corporations should not be charging employees if they do not get the vaccine. Some other reactions have been why should an employee be charged a premium, now that we know the vaccine won’t stop you from getting Covid. And an unlimited amount of other opinions as well!

Isn’t this just the smoking premium?

About a decade ago employers started charging employees who smoke higher health care premiums. Walmart charges employees who smoke an additional $2000 per year in increased health insurance premiums. When this was first done by a small employer in Lansing, MI a decade ago, lawsuits were filed, the HR community became unglued, and we had these huge ethical arguments over whether this was right or not to do to an employer.

What right is it of an employer to charge me more if I want to smoke or not! You’re not charging Tim over there eating a Big Mac and drinking a gallon of soda!?

Delta’s Covid decision is causing similar outrage about the vaccine.

Here’s the thing…

From the data we currently have, and the recent FDA approval of the Pfizer vaccine, we know statistically those with the vaccine are much less likely to be hospitalized or die from Covid. The “average” cost of a Delta employee who gets the virus and is hospitalized is $50,000!

$50,000 is not a small cost! Multiply that by hundreds of employees and it’s becoming a major issue. The issue being, on individual employee’s personal decision to not get the vaccine, is actually costing every single Delta employee, with upcoming increased insurance costs!

“Yeah, Tim, but someone made the personal decision to light up a cigarette. No one is making the personal decision to get the Covid!” Ugh…

You know you can’t send your kid to public school in the U.S. unless they have their approved vaccines. Millions of kids each year, go get their vaccines and go to school. We’ve pretty much eradicated all kinds of terrible diseases. An extremely tiny amount of parents have an issue with this. Ultimately, science has proven to be effective in helping our kids stay alive. Yay! Science!

More employers will go down this path.

Already we are seeing more and more employers mandate vaccines for employment. SHRM, the largest HR association in the world, has mandated vaccines for its employees. This isn’t a political statement. It’s actually not a statement of empathy, either, although most PR teams will try and turn it into one. It’s a financial statement of fact. We can’t afford for you to be stupid and play Russian Roulette with the virus.

All of this does lead us down a slippery path. It started out with something we all now know is harmful to our health, smoking. If you smoke, you will pay more for health insurance. Now it’s Covid. If you don’t protect yourself, by getting a vaccine, we will charge you more for health insurance. What’s next?

If you’re fat…don’t think it’s not coming…

The Dance We Call Work.

I read a statistic the other day that said on average a person works about 6 hours per day, Monday through Friday. The number of hours worked per day has actually decreased during the pandemic. It’s interesting because when you ask people how many hours per day they work almost all would say at least 8, or more.

But, do we really “work” eight hours per day?

Prior to the Pandemic when most people went into an office, you definitely “worked” at least eight hours most days. Or at least you were present in your office environment for eight hours. How much work you actually did during that time varies widely!

The Pandemic hits and people work remotely and we begin to hear a different narrative around work. The conversation switches from “hours” to what actually got done. Let me be clear, this should have always been the conversation, but culturally we still have so much “asses in seats” management going on it was tough to break through.

When people started “working” remotely they began to have the flexibility to integrate all of their life at one time. No longer did you have to shut down one part of your life to go to work. You could now seamlessly start a load of laundry on the way to fill up your cup of coffee and still make it back in time for the beginning of your sales Zoom meeting. It all just kind of made sense, for those who could do it.

All of this now makes “The Dance” we do in the office seem a bit silly!

I’ve always been a giant fan of set solid productivity goals and if someone hits those goals, I could care less if it takes them 10 hours a week or 60 hours a week. You make life decisions on how you work at the office, at home, etc. If you are super productive and kick out your job in 32 hours a week, but still get paid a full salary, you’re winning the game! If it takes you 50 or 60 hours a week to complete your job, you need some development to help you, or to find a new job/career!

You show up at the office at 8 am, dink around a bit, catch up with co-worker-friends on what happened in the 12-16 hours since you saw them last, do some stuff until lunch, do some more stuff, wait until 5 pm, then run off to do life stuff. Rinse, lather, repeat. The Dance is never-ending.

But something cool happened during the Pandemic and now everyone wants to dance a different dance! It’s not that everyone wants remote. If you say that out loud, just know I’m judging your intelligence! Everyone doesn’t want to work full remote. A lot of people love working with others and seeing them face-to-face, many on a daily basis! You might not like your co-workers, company, job, etc., but actually, most people do.

The New Work Dance is really about finding ways to add in some flexibility.

A little bit goes a long way! “Yeah, but Tim, our jobs don’t allow flexibility! We open the doors at 7 am and customers start coming and we need our workers there!” Yep, I get that. You can’t have someone make coffee at home for customers who come to your location to buy coffee! But that doesn’t mean you can treat your employees like adults and allow for some flexibility.

Let me share an example. I have a friend who manages a retail chain. She’s a really good manager. A single mom who works her tail off to make ends meet. Her child is starting to play sports and on Saturday mornings for an hour, she wanted to go watch him. She was told she couldn’t have every Saturday off, so she would have to miss some games. She said I don’t want to take off every Saturday. I’ll come in, open up, run over to the game, run back, and the other workers said they’ll cover for me. Adults working out a solution.

What happened? You know! Nope, you can’t do that, because if we allow you, then everyone will want to start doing stuff like that!

Yes!!! They will, and if it works out, fine, that’s okay! Adults being adults, making adult decisions and solutions. Let them Dance! Find ways to give them a bit of flexibility in a mostly inflexible world. They’ll be happier, perform better, feel good about working for you, etc.

Will it always work out? No. Real-world, some folks will take advantage of the situation and those are the people you don’t want working for you. But, we have to change the dance. We have to find more dances that work for more people. We will not find one for everyone, but we can find more.

My hope is the Pandemic taught us one thing. This dance we call work is a fraud. 8 hours, 40 hours, whatever it is, it’s not about time, it’s about results, it’s about getting a job done well. I want to hire people who think about how to get the job done well in less time verse hiring people who want to show up and dance for forty hours a week.