Category Archives: talent management

Rethinking a Few of the Millennial Myths

At the risk of exceeding our quota for stories about millennials (both our Jan./Feb. and upcoming April issues explore different aspects of this workforce demographic), here’s some new research coming out of IBM yesterday that’s worth a closer look.

485373695Not surprisingly, the study titled “Myths, Exaggerations and Uncomfortable Truths” identified the difference between millennials and older employers when it comes to things like digital proficiency. But on issues such as career goals, employee engagement, preferred leadership styles and recognition, the study shows that Gen Yers share many of the same attitudes as their Gen X and baby boomer counterparts.

More precisely, the IBM research took aim at the following five myths:

Myth 1: Millennials’ career goals and expectations are different from their elders (i.e., unrealistic).

Rather, millennials want financial security and a diverse workplace just as much as their older colleagues.

Myth 2: Millennials need endless praise and think everyone should get a trophy.

For Gen Yers, the idea of a perfect boss isn’t someone who pats them on the back, but someone who is ethical and fair, and shares information. Thirty-five percent of boomers and millennials listed this as the top quality they seek in a boss. (Someone who asks for their input is last on their list of priorities.)

Myth 3: Millennials are digital addicts with no boundaries between work and play.

Not really. The research reveals that they are less likely than older generations to use their personal social-media accounts for business purposes. Twenty-seven percent of millennials said they never do so—compared to only 7 percent of baby boomers.

Myth 4: Millennials can’t make a decision without crowdsourcing.

Millennials value others’ input, but the research suggests they are no more likely to seek advice when making work decisions than Gen Xers. (Even though they think gaining consensus is important, more than 50 percent of Gen Yers believe that their leaders are most qualified to make business decisions.)

Myth 5: Millennials are more likely to jump ship if a job doesn’t fulfill their passions.

The IBM research suggests that millennials change jobs for the same reasons other generations do and are no more likely than older colleagues to leave a job to follow their passions. In fact, millennials, Gen Xers and baby boomers are all two times more likely to leave a job to enter the “fast lane”—i.e., to make more money and work in a more innovative environment—than for any other reason, including saving the world.

In light of these findings, IBM’s advice to employers is to stop relying on generational stereotypes when planning and serving their workforce. Instead, they should be pursuing more robust, nuanced talent strategies and analytics to better understand employees as individuals to make the most of their skills.

Considering the source, it’s no surprise IBM might offer up such advice. But that said, there’s no denying that placing entire generations in single buckets is never a good practice and treading carefully as you formulate strategies like this usually is a sound idea. (As most of us know only too well, there’s often another study lurking just around the corner that could turn the latest one on its head.)

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Promotions on the Rise

If this isn’t a sure sign of an ascendant economy, then I’m not sure what one is: The percentage of employees receiving a promotion on an annual basis has increased from 7 percent to 9 percent since 2010.

This is according to a new survey titled “Promotional Guidelines” conducted by WorldatWork, a nonprofit human resources association and leading compensation authority based in Scottsdale, Ariz.

The association conducted the 2014 survey — its fourth such survey — of its membership to better understand the trends in promotional guidelines.

The survey focuses on a variety of practices and policies including what employers consider to be a promotion as well as the standard pay increases that often accompany promotions. WorldatWork conducted similar compensation practices surveys in 2012, 2010 and 2006.

“The steady upward trend of employee promotions mirroring the economic recovery is further evidence that organizations are relaxing their budget purse strings,” says Kerry Chou, WorldatWork senior practice leader. “While the gradual trend is good news, the data also suggests that employee vacancies are helping employers foot the bill for these promotions.”

Additional highlights from the 2014 survey include:

  • Less than half (42 percent) of responding organizations budget separately for promotional activity.
  • In order to define employee movement as a “promotion,” 77 percent of responding organizations require higher-level responsibilities and 75% require an increase in pay grade, band or level.
  • 63 percent of respondents said their organization does not feature or market promotional opportunities or activities as a key employee benefit when attempting to attract new employees.
  • More than 60 percent of workforces consider their organization’s promotional opportunities to have a positive effect on employee engagement and employee motivation.
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A Low Bar for Re-entry?

Most organizations are going to want to avoid bringing back former employees with performance and behavioral issues, right?  I think we can all pretty well agree. But according to a just-released government report, the Internal Revenue Service isn’t one of them.

153475640According to the latest Treasury Inspector General for Tax Administration report, released yesterday, the IRS rehired hundreds of former employees who had substantiated conduct or performance issues. In fact, the report said the agency brought back 141 former employees with prior substantiated tax issues, including five who the IRS found had willfully failed to file their federal tax returns.

The report noted that …

 “Problem behaviors have included employees who willfully failed to file their taxes, gained unauthorized access to taxpayer information, abused the agency’s leave policy, misused IRS property, falsified official forms, did a bad job or had behavioral or legal problems off-duty, such as alcoholism or bankruptcy.”

TIGTA found that the IRS met the Office of Personnel Management’s suitability standards (e.g., determining whether applicants had prior criminal activity or engaged in drug use), but still rehired many former employees with prior conduct or performance issues.

In a press release on the report, Treasury Inspector General for Tax Administration J. Russell George said these rehires put both the agency and taxpayers at risk.

During the audit, the report said, IRS officials acknowledged that prior conduct and performance issues do not play a significant role in deciding the candidates who are best qualified for hiring.

The audit—which reviewed a random sample of more than 300 employees with significant prior performance or conduct issues who were hired between January 2010 and July 2013—cited one case in which a former employee was rehired despite a note from a division head saying “ ‘do not rehire’ because the individual had been absent without leave for a total of 312 hours.”

The IRS said it believes its current process is adequate to mitigate any risks to American taxpayers, though TIGTA said it isn’t so sure.

As a next step, the IRS, at TIGTA’s suggestion, is now working with the General Legal Services and the Office of Personnel Management to figure out what changes might be warranted.

For now, though, I think we’ll probably skip calling the IRS the next time we do a story on best rehiring practices, since, at least on the surface, it would seem the agency could be adding special meaning to the term “boomerang employee.”

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When It’s OK to Fake It

grin“Be authentic!” today’s leaders are urged. But what if they don’t know how? Worse yet, what if — in being authentic — they bare their soul to their direct reports in a way that causes them to lose confidence in said leader?

Herminia Ibarra, a professor of organizational behavior at INSEAD, tackles this subject in the cover story of the Jan/Feb Harvard Business Review, “The Authenticity Paradox.” Today’s leaders are under pressure to be “their true selves” as an antidote to the record-low levels of trust and engagement among employees today, she writes. However, new leaders also have a relatively short time frame in which to gain the trust and confidence of their direct reports — should they unwittingly alienate or lose the confidence of those employees within that time by failing to adapt their leadership style to the situational demands, then their goals will be that much harder to achieve.

Ibarra cites the examples of “Cynthia” and “George.” Promoted into a high-visibility role that included a 10-fold increase in the number of her direct reports, Cynthia sought to establish her role as a leader who valued transparency and collaboration by sharing with them her trepidation and need for their help.  But her candor backfired when she lost credibility with people who were looking for a strong leader. George, an executive at an auto-parts company where chain-of-command and consensus were paramount, felt conflicted when the company was acquired by a firm with a much more freewheeling culture: Urged by his supervisor to sell himself and his ideas more aggressively, George felt he was being pressured to be a “fake” by subsuming his modest nature.

Career advancement requires most of us to move beyond our comfort zones at some point, writes Ibarra. Yet, because going against our true inclinations can make us feel like impostors, “we tend to latch on to authenticity as an excuse for sticking with what’s comfortable,” she writes.

However, moments like these can help us grow into better leaders — if we take advantage of them, writes Ibarra:

The moments that most challenge our sense of self are the ones that can teach us the most about leading effectively. By viewing ourselves as works in progress and evolving our professional identities through trial and error, we can develop a personal style that feels right to us and suits our organizations’ changing needs.

Learning often begins with behaviors that may feel unnatural and fake to us, says Ibarra. But the only way to avoid being pigeonholed and to ultimately become better leaders “is to do the things that a rigidly authentic sense of self would keep us from doing.”

 

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Gazing Into the Crystal Ball

As 2014 draws to a close, folks — as you might expect — now have their eyes set on 2015, and are figuring out what might be in store for their organizations as far as HR and the workplace are concerned. For this final post of the year, I did a quick search of the web to see what  people are predicting for next year. For your reading pleasure, here are a few of the things I stumbled upon. (Feel free, of course, to click on any of the links to see the sources’ full list of predictions.)

159188661Establishing a “chief of work.” Peter Andrew, workplace strategy director for Asia at real-estate company CBRE, predicts in Fortune the addition of a new position: chief of work. Most C-suites have not added new roles since the chief-information-officer title took hold about 20 years ago, but CBRE’s research suggests that’s about to change. For one thing, Andrew writes, companies today have human resources, IT and real-estate all acting separately and, often, unwittingly working against each other. He suggests that a chief of work would coordinate all that, with an eye toward building a culture that attracts top talent. Finding the most efficient balance between full-time employees and a growing army of independent contractors, he adds, will also be in that individual’s wheelhouse.

The rise of mobile assessments. From website CPA Practice Advisor: Mobile assessments will be increasingly tapped for selection, performance management, and training and development decisions. Technology, including social media and social collaboration, is changing the science and practice of selection, recruitment, performance management, engagement and learning, the article says. And I-O psychologists, it continues, will work to design assessments that are valid and reliable, regardless of how and where they are delivered.

Every child born in the next 12 months will learn coding as a core subject. Increasingly, Samsung writes, governments are recognizing that computer literacy is a fundamental, basic skill and are incorporate coding into their curriculums. For example, the UK, it says, launched a new computing curriculum during the current academic year, in which children as young as five are taught programming skills. In 2015 and beyond, Samsung predicts, such education innovations will gradually become the norm, with businesses, educators and governments working together to raise skills across Europe. Longer-term, it says, this trend will help spur the use of internships, as businesses recognize that they can benefit from welcoming young, computer-literate people into their organizations. “The need for employees to be computer literate,” Samsung says, will result in a wave of coding schools that will help longtime employees learn coding quickly.

Honesty will become a revered leadership trait. In a Forbes article, contributor Dan Schawbel predicts that “companies are going to start embracing transparency more next year as younger generations are demanding it.” Leaders, Schawbel writes, won’t just have to be good at inspiring and educating; they will have to be able to instill trust through honesty. “It’s only natural that people would want to work under leaders who are open about what the company is doing [and] where it’s heading in the future, and give honest feedback regularly,” he writes.

Niche becomes the norm. Korn Ferry’s Futurestep unit predicts “niche will become the norm” in talent acquisition.Now that organizations grasp the power of data,” Futurestep says, “next year, the challenge will be to prove ROI on all activities using analytics.” Organizations, it notes, need to be clear on the touch points that fit best with the types of candidates they are looking to attract. To that end, it says, interest and demand in creating functional talent communities is becoming top of mind as businesses strive to target hard to reach groups.

“Niche talent requires niche strategies,” says Chong Ng, president of Futurestep’s Asia- Pacific operation. “Whether it is businesses seeking high-demand talent such as STEM candidates, or organizations located in high-potential growth locations looking to specifically attract local talent back in the country, employers need to be more sophisticated in their attraction and retention methodologies in order to find and keep candidates.”

Companies will set new hiring priorities. Website Customer Think predicts employers will pay a lot closer attention to soft skills in 2015. “In the past,” writes Marcelo Brahimllari, “candidates were hired for open positions based primarily on their skills and experience. The ability to ‘do the work’ was traditionally valued over other skills.” But with more competition for jobs and deeper talent pools today, Brahimllari says, many employers are considering candidates’ so-called “soft” skills just as much, if not more, than education and experience. Employers, he writes, want to hire applicants who fit with the culture of the organization and share in its values. Traits such as honesty, flexibility, positive mind-set, creativity and leadership skills, he says, are being looked upon as being just as important as the ability to crunch numbers or write code.

Look forward to seeing you back here in 2015! Happy New Year!

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2014’s Top 10 Posts

Here at The Leader Board, it was another interesting year covering the HR arena, with issues ranging from the controversy surrounding the HR certification, to lawsuits based on a worker’s commute, to HR leaders’ efforts to ensure their organizations’ compliance with the Affordable Care Act and various other legal requirements, just to name a few.

Below are links to the top 10 most-read posts of 2014, according to Google Analytics.

When viewed together, the posts create an accurate mosaic of the issues HR leaders are faced this year and are likely to continue dealing with into the new year.

Enjoy!

  1. SHRM Rolls Out New Certification (May 13)
  2. HR Plaintiffs Build Their Case Against Lowe’s (Jan. 24)
  3. Google Tackles Incentives and Rewards (April 29)
  4. More Restrictions on Criminal-Background Checks (Feb. 10)
  5. Employers Missing ADA Coverage in FMLA Cases (June 30)
  6. Friedman Shakes It Up at SHRM (June 23)
  7. ‘The 27 Challenges Managers Face’ (July 28)
  8. Who’s Leading the Way? (Nov. 13)
  9. Woman Sues Ex-Employer Over Commute (July 2)
  10. Giving HR the Boot (April 9)
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A Blockbuster Hack

By now, I’m sure most of you are quite familiar with Sony’s data breach, which has occupied headlines over the past couple of weeks.

176217375As you might expect, much of the attention surrounds the hacker’s decision to post some of Sony’s yet-to-be-released movies, including a remake of Annie and a new film titled The Interview — a comedy about two American journalists who are recruited to assassinate North Korea’s leader Kim Jong-un. A group named Guardians of the Peace have taken credit for the cyber attack, but some have speculated the North Korean government could be the real culprit here, since it’s none too pleased with The Interview’s storyline. (Others doubt this is the case, and North Korea has publicly denied its involvement.)

Tom Kellermann, chief cybersecurity officer at the private security firm Trend Micro, told the New York Times after the story broke that “unlike stealth attacks from China and Russia, Sony’s hackers not only aimed to steal data, but also to send a clear message. ‘This was like a home invasion where, after taking the family jewels, the hackers set the house ablaze,’ ” he said.

Though it certainly has been well covered in the mainstream press, just a tad less attention has been paid to the non-creative information liberated from Sony’s computers—employee Social Security numbers, healthcare records, salary information and performance reviews. Sure, Sony isn’t the first to experience such an HR data breach, but there’s little question the scope and nature of the information made public (which includes salaries of executives) make this breach especially noteworthy.

I can only imagine the kind of disruption this is likely causing at Sony—and the toll it’s taking on productivity. Not to mention the financial toll it’s going to have.

I also have to think more than a few CEOs, after reading the various stories appearing in the press, were once again wondering, “Could something like this occur here?”

Yesterday, I asked Gordon Rapkin, CEO of Archive Systems, an HR-document-management firm based in Fairfield, N.J., for his take on what happened at Sony.

“My impression is a chunk of the Sony HR breach has to do with people there who kept things on their computers that shouldn’t have been kept there,” he said. What the field, he adds, calls “shadow files.”

What’s more, Rapkin said, the fact that all this information was unprotected and unencrypted and seemed to be available in the same trove that was pilfered is pretty surprising. “Usually,” he said, “[the information] is carved up in different systems and kept in different files—with salary information in one place, benefit information in another, and employment and performance in a third. But here, it looks as though all of this was accessible in the same place. That’s surprising, especially when you consider HR information represents some of the more sensitive data a company possesses.”

Lisa Rowan, vice president of research at IDC in Framingham, Mass., agrees. “It seems odd for [these] to be stored together,” she said.

At a recent records-management conference he attended, Rapkin said his company surveyed attendees on how many felt HR followed their organization’s information-governance policies. One-third of those queried, he said, responded that HR didn’t follow those policies and procedures. Hardly a vote of confidence.

Perhaps Sony is the latest company to get hit, Rapkin explained, but, he added, “I think the problem may be fairly common.”

(Looking for more thoughts about this topic?  You might want to check out “4 security takeways from the epic Sony hack.“)

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TMBC Welcomes Averbook, Secures Funding

Jason AverbookJason Averbook has designs on reinventing workplace performance and employee engagement.

Earlier today, Averbook—recognized HR technology expert and former CEO of Knowledge Infusion—was announced as the new chief executive officer of The Marcus Buckingham Co. In the new role, Averbook plans to help the Beverly Hills, Calif.-based provider of leadership development training and tools “create an organization uniquely positioned to turn the world of talent and leadership inside out,” according to a statement announcing Averbook’s arrival at the company.

Averbook, who officially took over as CEO at TMBC on Oct. 31, won’t be alone in this task, of course. The same press release highlighted TMBC’s completion of a $5 million Series A fundraising round led by SurveyMonkey, a Palo Alto, Calif.-based online survey development company.

With Averbook at the helm and this funding secured, TMBC has lofty goals, according to founder Marcus Buckingham, a best-selling author, researcher, motivational speaker and business consultant.

The firm aims to “fix what is broken in the process of talent performance assessment and management,” says Buckingham. “TMBC’s vision is to deliver companywide and individual team leader visibility into employee strengths, engagement and performance; and its content aims to help the team leader build on the strengths of each employee.”

At the moment, “no such tools—designed explicitly for team leaders—exist,” according to Buckingham, who says the funds provided by SurveyMonkey will go toward “serving this pivotal but unserved market segment of true talent engagement, performance and real-time progress tracking.

On the eve of the announcement of his arrival at TMBC, Averbook echoed those sentiments in a chat with Human Resource Executive, during which he discussed the role of the company’s StandOut integrated performance and engagement platform in rethinking how workplace performance is measured and improved. The first round of funding from SurveyMonkey, he says, is tied to enhancements to StandOut, a strengths-based performance management system that includes a strengths profile for employees, pulse surveys designed to gauge employee-engagement levels and trends in real time, and talent reviews geared toward workforce planning using local talent data.

“The challenge has always been getting [the right] technology into the hands of team leaders,” says Averbook. “We want to [enable] real-time team building and measure engagement at a team level. We want to look at employee performance and engagement in a new way.”

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Who’s Leading the Way?

leadingIdentifying what makes for a great leader isn’t an exact science. But, each year since 2001, Aon Hewitt has done its best to pinpoint the traits shared by the best business leaders—and the companies that excel in cultivating them.

The Lincolnshire, Ill.-based consultancy recently unveiled its 2014 Global Aon Hewitt Top Companies for Leaders list, a group of 25 organizations selected and ranked by a panel of independent judges, including experts from Wharton School of Business, the Indian School of Business, PUC Minas and Ivey School of Business.

The panel relied on a number of criteria, including strength of leadership practices and culture, examples of leader development on a global scale, alignment of business and leadership strategy, business performance and company reputation to compile the list, headed by GE, IBM, Hindustan Unilever Limited, General Mills Inc. and ICICI Bank.

What got them there?

According to Aon Hewitt’s analysis, the top companies for leaders shared five key characteristics in their approach to leadership:

  • Assessment. Top companies assess the whole leader early in their careers, evaluating leaders’ experiences, competencies, values and organizational fit, which helps organizations “understand the unique needs of their talent pipeline to fuel the right development solutions that move people forward faster,” according to Aon Hewitt.
  • Awareness. These organizations have leaders who demonstrate tremendous self-awareness by understanding their personal strengths and weaknesses, and using this information to become more effective leaders.
  • Resilience. Those atop the 2014 list build resilience in their leaders by creating inclusive cultures “where multiple perspectives and ideas are expected and fostered to help the organization meet continued business challenges.”
  • Engaging leadership. Leading firms focus on identifying and building engaging leaders who “are stabilizers, demonstrate versatility and stay connected to people and events inside and outside their organization.
  • Sustainability. Top companies for leaders also concentrate on building talent programs “nimble enough to respond quickly to the market demands, yet sustainable [enough] to deliver superior business outcomes.”

This year’s top companies have shown a knack for nurturing talent in an ever-more competitive marketplace, says Michael Useem, professor of management and director of the Leadership Center at the University of Pennsylvania’s Wharton School, in a statement.

The Top 25 firms are “especially notable for the detailed tracking and comprehensive building of their talent pipelines, with special emphasis on strategic thinking, broad engagement and personal resilience—all increasingly critical given the companies’ changing and complex markets,” says Useem, who also describes “the direct personal involvement of senior managers and even company directors in their leadership programs” at top companies as “striking.”

What it takes to be “striking” in terms of leadership has changed greatly in the 14 years Aon Hewitt has compiled its leader list, and “what was exceptional [just] two or three years ago … has now become table stakes for top organizations,” adds Lorraine Stomski, a partner and head of Aon Hewitt’s leadership consulting practice.

“Those companies that rest on their laurels and rely on practices that have previously brought them success will no longer thrive like top companies do,” says Stomski. “Change and innovation are a must.”

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Veteran Hiring, Revisited

Just last week, President Obama authorized the deployment of another 1,500 American troops to Iraq in the coming months, doubling the number of Americans meant to train and advise Iraqi and Kurdish forces.  But headlines aside, the fact remains, as we celebrate Veterans Day 2014 tomorrow, there are more veterans returning than soldiers being deployed. Indeed, the churn’s a steady one, of veterans leaving the military and seeking employment—and employers looking to add them to their rosters.

475000847Indeed, on the latter front, a CareerBuilder Veterans Day Job Forecast released earlier today found 33 percent of employers are actively recruiting veterans over the next year, up from 27 percent in last year’s survey and 20 percent in 2011. Further, 31 percent have hired a veteran who recently returned from duty in the last 12 months, up from 28 percent in 2013.

HRE has published its share of stories in recent years about companies that have made huge commitments to employing vets, and some of the policies and practices they’ve put in place to help achieve that objective. So I’d like to think businesses are beginning to gain some serious ground on this issue.

If we’re to believe the findings of a RAND Corp. survey released earlier today (also just in time for Veterans Day), however, there’s still a lot more work to be done by all parties concerned.

On the employer side, RAND’s analysis found companies still need to do a better job educating managers on the value of veteran employees, making themselves known to veteran job candidates and taking advantage of federal resources, such as the Veterans Employment Center and SkillBridge.

According to the researchers, many employers also fail to understand how military experience translates to the skills needed for civilian jobs and they lack the ability to track and measure relevant recruitment, performance and retention metrics.

The report, titled “Veteran Employment: Lessons from the 100,000 Jobs Mission,” explains …

“Many companies respect that their veteran employees want to be treated the same as non-veteran employees, but these organizations are investing resources in veteran hiring and could benefit from information about the return from that investment. Although companies perceive their veteran employees to perform well, they do not tend to collect metrics about veteran performance and veteran retention.”

Despite all of the attention workforce metrics has been getting lately, many companies, according the RAND report, are apparently falling short when it comes to measuring the effectiveness of their efforts in these areas.

Veterans, meanwhile, according to the researchers, too often believe their talents apply only in the security or defense arenas and employers (as mentioned above) struggle to make that military experience-civilian job connection.

Kimberly Hall, lead author of the study and a senior project associate at RAND, points out that “military members need to know that defense contractors and similar businesses are not the only places they should look for work, [and they can] contribute valuable skills and experience across the spectrum of American industry.”

One silver lining in the report (which is based on interviews with representatives from 26 member companies in the 100,000 Jobs Mission): Those interviewed volunteered that post-traumatic stress disorder was not an issue. This finding contrasts with an early study on veteran employers, in which more than one-half of the companies interviewed reported concerns about PTSD, suggesting that “employers’ initial concerns have been allayed by their experiences.”

In any case, you might want to carve out a little time this Veterans Day and check the report out, especially since it does include some good recommendations for employers, as well as veterans and federal agencies.

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