Emergency Situation…AND…the HR Program of the Future

Two of my favorite topics – personal finance and HR.  When I got the idea to write this post, I had second thoughts because I wondered if anyone would really care.  Then, the more I thought about it, I realized that if they don’t, I believe they should.

I've been fortunate to work in a company that did wellness as well or better than I've ever seen or heard of elsewhere.  There was a free on-site gym and personal trainer for all staff.  A fit point program was put in place that could earn employees up to $75 per quarter just for engaging in healthy behavior.  On-site yoga, Pilates, and dance classes were offered in addition to boot camp twice per week.  Fresh fruit and smoothies were always available in the gym for staff wanting a healthy snack.  You could even wear work-out clothes to work if you used the gym that day!  The trainer walked throughout the offices during the day motivating people to make healthy choices, and it really helped having a cheerleader always there to push.  In addition to typical screenings and everything offered by other robust wellness programs, other programs like Weight Watchers were available, smoking cessation classes which paid you $1000 for staying smoke-free up to a year and an on-site massage therapist.  We even had a chicken coop on the company campus to provide fresh eggs for breakfast.  It may seem a little over the top, but it was very cost effective for the organization.

What does this have to do with finance?  Well, I’m lucky to have worked in companies (that organization included) where people are well paid, particularly anyone in a pay-for-performance role, like sales.  I say I’m fortunate because we all know people who have suffered unemployment or underemployment over the last 5 years.  Yet, I hear complaints about how tight money is for people, or why the high deductible health plan is breaking the bank for staff.  I find it puzzling, because of the complaints are from employees making six figures.  What this tells me is that they are spread thin, and highly leveraged.  They make good money, but are they financially healthy?  Webster’s defines “wellness” as the quality or state of being healthy in body and mind.  What is one of the number one factors contributing to marriage problems, stress, and anxiety in America?  Money problems.  If you think employees are leaving all that at the door, you are unfortunately living in a fantasy.

This is a minor tangent, but you’ll see the tie in – I promise.  Generation Y is the most in debt generation in American history.  I’m no exception.  I haven’t always made the most intelligent decisions with my money, and I made the questionable decision to acquire a mountain of student loan debt to get a graduate degree.  I’m pretty normal.  And if I chose to stay on a normal path, I would keep my student loan debt around for at least 20 years, over-extend myself on a home and car purchase, max out my credit cards in the name of instant gratification and take expensive vacations just so I can post the pictures on Facebook to maintain the perception that I've done pretty well in life.  If you think about this for a moment, the truth of it should frighten you a little.

Now for the argument as to whether finances can be considered part of the fad of “wellness”.  Well, I’m typically a pretty scientific person, but I recently asked employees who came to see me about other issues in our company to tell me what is on their mind.  I know this experiment lacks validity, but work with me.  What do they think about the most at work that is unrelated to their job.  I asked 6 employees.  Here are their responses:

1. My mother’s declining health and mental condition – she has trouble taking care of herself. 
2. Our dream home we purchased six years ago is severely under water, and we want to move to a new school district for when our children start school this fall. 
3. Our furnace went out this month and needed replacement and we also had a dishwasher that needed some parts replaced.  Last year, we had to replace our AC unit and a portion of our roof.  Our insurance just skyrocketed and the fiscal cliff shrunk our paychecks.  January has been tough. 
4. My wife is overworked and burning out – she didn't get home yesterday until after 3am working on a deal that came in.  It makes her stressed and emotional.  
5. My husband was laid off 3 months ago and is still unable to find a replacement position.  He took a food service job for the short term. 
6. My child was just diagnosed with scoliosis and the resolution is a complicated surgery that will require extensive physical therapy afterwards.

Employee problems are all over the board, and I’m sure the same would be true in your organization.  However, nearly all of them are related to personal finance in some manner.  An elderly parent with declining health is not only sad, but it’s expensive!  Underwater homes are commonplace now, and financially detrimental to millions of Americans.  We all have peaks and valleys financially.  I guarantee you that one of your employees is in a valley at any one point in time.  Overworked and over-stressed are commonplace.  Some do it because they love to work; others do it because they need the money.  Layoffs are also pretty common now – you may even be desensitized to them.  Ill children, especially those requiring medical procedures are tragic, but they can also break the bank.  A major surgery plus ongoing physical therapy will hit any family hard, even if you do have insurance.

The concept of being financially “well” is not new – I bet your grandmother could teach you a thing or two.  Much of it is common sense, which is unfortunately not so common any longer.  While some argue that it is the job of parents or the public school systems to teach people to manage their money in a responsible and healthy manner, the effects of not doing so fall on employers when our children become working adults.  What’s even more unfortunate is that managing money well is more about behavior than knowledge, meaning that bad habits are harder to break in adults.  However, giving employees the knowledge, tools and resources to improve their financial futures will bring peace to the lives of those interested in making a change (which is probably more people than you think). 

There are several organizations that can help provide and build programs for your organization around financial wellness.  I've also seen a couple organizations build the programs themselves.  Whatever route you choose, your program should include a few basic principles.

• Budgeting
• Reducing/eliminating debt
• Saving (in an emergency fund or elsewhere)
• Retirement planning

The need for such programs is staggering.  MetLife’s annual report said that 78% of employers agree that financial problems render employees distracted and less productive. 69% acknowledged that financial stress contributes to health costs; 58% admitted that financial “illness” contributes to employee absence.  81% of employees who admit that they are financially stressed want help and would definitely be interested in financial advice and guidance.  The most common financial problems cited by workers are credit card debt, student loan debt, and too much house.  It has been reliably calculated that lost productivity due to stress-induced absence, tardiness or inattention can cost companies as much as $7,000 per worker per year.

I think you get the picture.  HR – it’s time to make a difference for your organization and in the lives of your staff.  Now, get to work!

The Meaning of Entrepreneurship for Today’s Workforce

My last post got me thinking a little bit more about how different generations view the workforce.  I’m interested in entrepreneurship, and frankly, I’m not sure why or where the fascination comes from.  Neither my parents nor grandparents are entrepreneurs.  Everyone in my family worked for “the man” in corporate America.  They put in the hours, gave 100% effort and loyalty to their companies, and were rewarded over the years for their dedication.  My grandparents were particularly loyal to their employers – both of my grandfathers worked for the same major corporations for nearly their entire working life, which wasn't atypical of the generation.  My parents have had a couple employers throughout their careers, but that list has never included themselves.  My brother is an entrepreneur, and a surprisingly good one considering his lack of experience.  I, like my parents, work for an employer as do a majority of my friends.  In fact, I went to college, and then grad school, just so I could have my pick of employers.  However, I have this deep fascination and respect for those who work for themselves.

I think a lot of people in today’s workforce consider themselves entrepreneurs, even in the smallest of senses.  However, I believe this is due to fear, and not true innovation.  Younger generation workers are scared of getting screwed by corporate America.  I’ll admit it, I have felt that way before and worry about it occasionally.  My control freak tendencies push me to identify this area of my life as having some risk, which helps me relate to some of those feelings I'm describing.  Many American workers saw their parents give up everything for corporate life and then get let down.  Workers today are fearful of repeating this in their own lives.  I read today that some hockey teams were releasing some of their business staff due to the recent hockey strike.  My organization could be similarly impacted by a prolonged labor strike, and it’s terrifying that I would have little to no control in that situation.  It’s easy to see why workers are looking at contingency plans, particularly with so much uncertainty about US employment and economic growth.   

For this reason, much of today’s workforce believes that the safest route in employment is entrepreneurship, which is a departure from previous beliefs on the topic.  Owning your own business has traditionally been viewed as the “risky” career move, and the idea it is a “safety” route sounds absurd to most serial entrepreneurs.  In many polls, Gen Y indicates that they want to own their own business.  Decoded, I think what this really means is that people want a safety net.  They want to feel like if they were to be let go from their job, they wouldn't be left high and dry like their parents were.  This creates a disconnect for many workers.  The Society for Human Resource Management (SHRM) has done studies that show many people in today’s workforce like assignments, meetings, feedback, group efforts and after-work happy hours.  These are all signs of people who work for someone else.  Most entrepreneurs experience phases in their careers that come with loneliness and anxiety.  Entrepreneurship is living on the edge of what’s normal, and that is enough to make most people run right back to corporate life.

What are your thoughts?

3 Kick-Butt Tactics that Start-Ups Should Use to Acquire “A” Talent

This post will only scratch the surface of a deeper topic on acquiring the right talent in a start-up or small business setting.  Anyone who has worked for a start-up knows what I’m talking about.  In order to achieve the ultimate goal of growth, you need “A” players (and only “A” players).  Start-ups are generally in a fight to survive within their first several years of operation, and that’s no environment for mediocrity.  There’s a paradox though, because as you’re trying to grow, you need capital for growth, and sometimes the funds are short when it’s time to hire that “A” talent. 

I’m going to give you some strategies for finding talent, but first you need to know what you want.  What are characteristics someone might possess that will enable your business to be successful?  I’ll share a list I compiled at a start-up I previously worked for.  Your list might be different or it could be similar.  My point is that it should exist.  If you can’t name qualities and skills that you need or value in your business, you need to stop what you’re doing and make a list.  Here is mine. 

• Problem solver
• Takes initiative
• Leads without being told to do so
• Is well networked
• Wants to make an impact
• Feels that they have something to prove
• Modernizes
• Innovative/thought leader
• Record of excellence
• Smart
• Adaptable
• Effective communicator with various types of personalities

Some of these things are easier to assess in a candidate than others.  We had methods for assessing each, some perhaps more effective than others.  Each of our hiring managers had an area or two on the list that they were awesome at assessing in candidates.  Start-ups are effective at attracting inexperienced talent, because the opportunity to prove oneself is typically greater than at a large company because so much responsibility is put on each individual.  Peter Drucker argues that start-up environments benefit from “generalists” - someone who has demonstrated learning in one field, who has an open mind and who can articulate relationships between known domains and new ideas.  In my experience, we expressed those qualities as “smart, flexible thinkers who communicate well.”  The salary expectations with inexperienced talent also tend to match the funds available in start-up hiring. 

Now that you have your list, and a better idea of what you’re looking for, it’s time to talk about 3 solid strategies for getting the talent you need.

          1.       Where to look:  Expand your use of LinkedIn and other online communities.

Some recruiters talk about finding talent on other social media sites like Facebook or even Pinterest.  Maybe in the future, these could be valid sites for finding candidates, but as of today, the effort may not be worth the reward. 

LinkedIn caters to the professional world.  In addition to utilizing their job postings, which I recommend, groups on LinkedIn provide a special insight into thought leaders and individuals committed to their respective areas of interest.  Look for groups that target your industry or the particular occupation you are looking for.   Then, look at the discussions in that group and look for consistent contributors, or individuals who start great discussions, or give solid input on a subject.  They took time out of their day to engage in these groups, so unless they were just bored, they are likely interested in the topic and potentially even passionate about it. 

          2.       Behavior to look for:  Don’t consider candidates who are not actively blogging or using social media. 

To blog, you have to be an active thinker and a creative person.  Actively thinking and innovation are prerequisites to many of the qualities on my list, and likely on your list also.  Individuals who use social media think quickly.  There’s so much information on the web, particularly on Facebook, Twitter, LinkedIn, etc., that in order to use these sites, an individual has to quickly process what they are reading, decide whether to respond, and if so, what the message will be, and move on.  It also means they are probably up to date on trends, usually in areas they’re interested in, meaning they are an asset if you’re trying to compete with the latest and greatest – which most start-ups are.  Owning their own business or start-up could potentially be a substitute for strategy #2, but do a good job of assessing why their business failed before committing to the hire.

          3.       Values to look for:  Don’t consider candidates who don’t give you (or can’t show you) measurable signs of their success.

Much of the workforce, particularly those in Gen Y are more interested in looking like winners than actually being winners.  That’s not what you want or need in your company.  The last several decades have been defined by soccer leagues where everyone gets a trophy for participating and dressing in status clothes despite income or what the rest of the office is wearing.  In the interview process, be sure to test candidates on their accomplishments, and ask them to clearly define the results and why they’re important.  Articulation of such points indicates they understand why they are of value, and helps you make sure you aren’t getting a hire that just appears to be really great.  Some candidates put up really good facades, and it can be hard to break through, so make sure you’re convinced they are the real deal before making an offer.

There you have it.  Unfortunately, it’s not a direct science, but still a helpful, straight-shooter way to get that “A” talent in the door.  Just don’t forget, once you get “A” talent, you have to keep it.  

New Year, No Promotion? 4 Little Secrets for Bouncing Back

Happy 2013!

In the spirit of New Years blog posts, I began thinking about the New Year in 2013 compared to last year’s in 2012.  I was feeling pretty low this time last year.  I had changed jobs in 2011, worked incredibly hard at my new job and emerged as a star within both the department and general young talent at the company.  I was the go-to person in HR, and built a reputation for getting things accomplished on time, on budget, and with a high level of quality.  When organizational leaders had HR needs, they wanted to work with me.  I knew the opportunity for a promotion would be coming due to organizational growth, and executed each day with the achievement of that promotion in mind.  To be frank, I busted my butt trying to prove myself.  The holiday season arrived, and my boss pulled me into her office a couple days before Christmas.  I wasn't expecting anything in particular that day, but was informed that the promotion had been given to a colleague of mine. 

I was devastated.  I had taken a significant pay cut when I took the opportunity with that company.  I did it because I wanted to work in technology, and I was confident I could prove myself worthy of a promotion.  I felt I had done exactly that, which made the decision look and feel unjustified.  I equate the feeling to running and pushing up to the top of a mountain, only to emerge at the top of the crest and realize that it was not the top, but rather just partway up a much larger hill.  Runners call this a “false plateau” and it’s a deflating feeling.  My colleagues and even my boss told me that my overall performance was better than the individual who received the promotion - so why didn't I get the job? 

With more than a year to ponder this question, and with some honest feedback from my manager, I realized that I had more work to do.  For me, the skill I needed to obtain that promotion (that I lacked) was the ability to nurture.  I set small goals over the last year to improve this quality, and tried to mimic others who are good at nurturing.  I am steps ahead of where I used to be in this aspect, and others have taken notice of my efforts and improvement.   I was later considered for other (even larger) promotion opportunities at that company, but I ultimately made the decision to relocate, and found a new opportunity that many people including me consider to be a dream job.  Everything worked out, just like I kept telling myself it would. 

I’m not the first person to encounter a challenge like this in my professional career, and I won’t be the last.  If you or someone you know has recently been overlooked for a promotion, I have 4 recommendations based on my personal experience and perseverance.

1. Make sure you’re focusing on the right things.  I was focused on being a strategic planner and executor, because I thought that was most important for the role I wanted.  In reality, I was already good at those things, which made it easier for me to continue getting better at them.  With the benefit of hindsight, I should have been focused on improving my nurturing capabilities.  I should have had a discussion with my manager to determine that this was a deal breaker quality, and that she felt I lacked it.  I was in the dark as to what to focus on, and can only blame myself for not knowing better.  If you are not getting feedback, solicit it.
2. Get a coach.  Coaches can keep us focused on what is important, particularly in difficult times.  Coaches can keep us disciplined and hold us accountable to our plan – and a good one will give you a honest assessment of where you stand.  I personally struggle to set up formal mentors or coaches because I feel it undermines what I’m really trying to get out of the relationship.  I prefer relationships where I can have a conversation with someone about these topics, and there’s no expectation that this is a mentoring relationship where the person is supposed to give me advice as a mentor would.  I get the advice as a “friend” and feel it’s more genuine that way.  Whatever works for you, don’t overlook the benefits of having a coach in your life.
3. Set your sights on interim milestones on the way to your goal.  It’s important to be aware of where you stand today, and what your ultimate goals are in the future.  But don’t fixate on either of these things because they won’t help you move forward in a way that’s most productive.  While focusing on the end result or goal, choose smaller, more visible milestones.  I recommend looking in the 3-6 month range initially.  Achieving goals is more about behavior than knowledge, and having a few wins (even if they’re small) every couple of months will keep you motivated to get where you ultimately want to go.
4. Start moving!  Achievers don’t wait long to get started again after stumbling.  It’s important to regroup, but be sure not to dwell on the negative.  Develop an action plan – this will help more than anything to make sure you don’t get stuck.  Once you have an action plan, get going on it.  That is what great professionals do.

Inspired by Daniel Shapero's LinkedIn blog.