Recruiting Beyond Traditional Social Networks

An interesting little recruiting story came out of a late-afternoon session at the HR Technology® Conference in Las Vegas Thursday. 178915467--social mediaSlugged “How Red Hat Approaches Hiring Beyond Traditional Social Networks,” the session featured Brad Warga, senior vice president of customer and employee success for Gild Inc., a San Francisco-based technology-talent search firm, and Don Farr, director of global-talent acquisition for Red Hat, a global open-source provider.

“We found [traditional candidate sources such as] LinkedIn just weren’t providing the recruiting results we needed,” Farr told conference attendees. Long story short, he knew Warga, but not much about Gild, so decided to try him out with an assignment: Find him 200 top technology developers in a city abroad where Red Hat does business. Warga turned it around in record time “and more than half of the developers on his list were already employees of Red Hat,” said Farr.

Pretty convincing. So Farr decided to use Gild’s sourcing and reporting tool, based on far-more specific tech-developer social-media data — including code information and technical questions and answers, indicating levels of focus and expertise — to complement the recruiting system he already had in place.

Not only has it enriched Red Hat’s recruiting, with vastly improved and far enhanced returns on the right kinds of candidates for the growing company, it’s even provided some surprises.

Key among them was proof it needed to enhance its employee-referral service as well. Using Gild’s tools and services, Red Hat was able to determine that 70 percent of its developers who came in outside the referral program were actually connected in some way to current employees through social media.

“In other words,” said Farr, “we could have hired them ourselves if we had just sourced them through more social [streams]. The connections were out there.”

Long story short, Farr convinced his CEO to invest more in employee referrals and the savings are already being realized.

“We now have an employee-referral portal tracked through our applicant-tracking system,” Farr said. “We’ve effectively built a process where referrals aren’t going into a black box anymore.”

Lesson learned here? “Take advantage of the opportunity to embrace social media in multiple ways,” particularly when you’re looking for something as specific and hard to find as tech developers, he said.

“This is really the story of the old guard and the new guard,” Farr added. “You have to adapt or die.”

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HR Tech: Out With the Outmoded!

“If talent is the most important part of every business, then why do we manage it so badly?”

This question, posed near the beginning of Jason Averbook’s presentation at HR Tech 2014, titled “What the End of the ‘Job’ Means for the Future of Work and Talent Management,” was one of the major themes of his talk. Averbook, chief innovation officer at technology consulting firm Appirio and author of the new book HR: From Now to Next, repeatedly made the point that as the nature of work undergoes drastic change, the talent-management practices still used by a majority of companies today also need to be transformed, or perhaps jettisoned altogether.

“Many of the talent processes still in use today come from a time when our economy was manufacturing-based,” he said. “So today, most of our talent practices are broken down old pieces of crap — we manage people like they were machines, with annual performance reviews, timekeeping, performance ratings.”

Talent is the most important part of any business and, unlike machinery, can’t be easily replaced, said Averbook. So why, he asked, do HR departments continue to subject this precious resource to outmoded processes that no one — not even HR itself — believes actually work?

“How many of you here believe that your performance-management process actually helps improve performance?” he challenged the audience.  When only one person raised his hand, Averbook asked “So why, then, do you continue to use it?”

“For compliance,” one person replied. “Because HR makes us,” said another.

These outmoded processes include how most organizations go about measuring employee engagement, said Averbook,

“If engagement is so important, how come you’re only measuring it once or twice a year?” he said. “Do you look at your Facebook page just once a year, to see if anyone ‘liked’ your stuff? Engagement should be something you look at every day.”

Twitter can be an excellent way to determine employee engagement because it can reflect current engagement levels, rather than what they were six months ago, said Averbook. HR is a business function, not a support function, he said, and as such, its technology for supporting talent should incorporate the following five principles:

  1. It should be real time
  2. It should be looking now and forward, not backward
  3. It should be based on killing silos within the organization
  4. Its processes should be for the good of the business, not HR
  5. It should be easy.

As the nature of work and jobs continues to change, with many organizations moving toward an independent-contractor model, talent processes can no longer be cyclical and the technology supporting them can’t be user-unfriendly, said Averbook.

“You’ve heard of business-to-business — well, now we live in a business-to-employee world, and if a process isn’t simple, employes won’t do it,” he said.

And if your technology vendors can’t provide tools that are simple and intuitive and that meet your specific needs, then build your own, said Averbook.

“If your vendor can’t come through, then build an app yourself,” he said. “It’s not hard. My 10-year-old builds apps.”

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New Workforce Data Explored at HR Tech

Based on new research released Wednesday at the 17th Annual HR Technology® Conference and discussed in Thursday’s opening 174186913 (1)general session, employers and HR leaders seem to have some exciting new arsenal for recreating, reshaping and sustaining their workforces of tomorrow.

The research, to be released in quarterly reports as part of an ongoing ADP Workforce Vitality Report, measures the total real wages paid to the U.S. private-sector workforce based on a number of metrics, including job holders’ wages, job holders’ hours worked, job switchers’ wages and total employment. Although this index, at 110.6 in the third quarter of 2014, is considered the report’s baseline, it did show 0.77 percent growth from the previous quarter.

So job growth, as measured by this new combination of statistics, is, essentially, going up.

What’s especially exciting, though, seems to be the potential future indicators that so much data can provide the employment sector, when you consider it’s depth — based on the wages and employment profiles of ADP’s more than 50 million (one in six) paycheck recipients.

Segments of the U.S. workforce and the growth of wages and hours worked in any industry in any state are now tangible, or at least potentially tangible, showing where growth is strongest and weakest, and perhaps why. Segments “by age, by income, by full-time and part-time status, and even by gender” will also be available, “the latter of which is especially exciting to me,” said Ahu Yildirmaz, head of the ADP Research Institute, at the panel discussion.

Here, for more, is a recent CNBC televised discussion about the new research and another report from MarketWatch.

The session — moderated by David Gergen, senior political analyst at CNN, and including panelists John Boudreau, professor and research director at the University of Southern California’s Marshall School of Business; Steven Cochrane managing director at Moody’s Analytics; Steven Rice, executive vice president of HR for Juniper Networks; and Yildirmaz — took in differing perspectives on just what all this data might mean.

Although the report indicates the South is leading the Northeast in job creation, and low-wage jobs — as in trade, transportation and retail — are leading over higher-income positions, questions still loom over whether this retail boom “is driven by higher wages or higher numbers of jobs” since the data combines all factors into one vitality — or growth — index, said Boudreau.

Moreover, “HR folks today can think of [where to find, place and develop talent] like a chess game, playing it in a more nuanced way,” he said. For instance, the index looks at four types of workers in the labor market: those who stay with the same firm (job holders), those who change jobs (job switchers), those newly hired (entrants) and those who left the firm either voluntarily or involuntarily (leavers).

Where index indicators show higher numbers of “leavers” or “entrants” — be they by industry or region — or higher-level jobs unfilled, “HR folks can be asking, ‘What would it take to make [a particular] pocket of folks who aren’t ready to fill this new talent need more ready for this need as opposed to [having to] seek talent outside the organization?’ ” said Boudreau.

The dynamics of the numeric indications, said Cochrane, actually show “economic growth happening everywhere … we have moved through the downturn, albeit in  the context of a slow-growing economy … but the gap is widening between the South and West, and the Northeast and Midwest” … and this could be indicative of growth in general in the South, as in Texas oil and energy, and the “structure of the economy changing.”

Rice left attendees with an important reminder as the sole HR practitioner on the panel; that being that, while the ADP data is a start and a helpful tool, the main goal for all HR leaders using it will be to “build the best workforce to build our companies of the future.”

Looking at organizations, he said, “has completely changed for heads of HR [in terms of] where talent is located, where it’s leaving, cost of labor, etc.” It’s far more of a global challenge now.

“We need to be able to tap into that new talent pool,” said Rice. “There’s a lot of shifting, too, in terms of skill sets and teaching of skill sets to tie into that changing talent pool.”

HR leaders are also grappling with when it makes sense to bring talent together under one roof versus allowing for more virtual project work and collaboration.

“We all need to be asking, ‘What are the areas where we can drive the talent for our ideal workforce?’ ” said Rice. “This kind of data can help.”

 

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HR Tech: Rise of the Machines

When you’re a first-time passenger in a Google driverless car rolling down busy Highway 101 near San Francisco, you go through three phases, said HR Technology Conference keynote speaker Andrew McAfee: the first is “raw, abject terror,” quickly followed by phase 2 — active fascination. Twenty minutes in, that tends to be followed by the third and final phase: mild boredom.

“These cars are programmed to drive the way we were taught to in driver’s ed classes and then promptly forgot,” said McAfee, principal research scientist at the Massachusetts Institute of Technology and co-author of the recent bestseller The Second Machine Age. “There’s no speeding or abrupt lane changes — it feels like riding an airport monorail.”

McAfee’s driverless car adventure was the indirect result of a book  by two professor colleagues, who had written that despite the advances of computers and robotics, they would probably never overtake human beings’ ability to master and rapidly adapt to quickly changing patterns. Thus, they wrote, a computer could never do something like navigate a car through heavy traffic. The book in question, The New Division of Labor, was published in 2004. Six years later, Google announced that its engineers had been riding in computer-guided cars for a number of years.

“As soon as I heard that, I knew I had to experience it,” said McAfee.

The subject of McAfee’s talk, “Making the Right Choices in the Second Machine Age,” was that we’re now living in the greatest era of transformation since the Industrial Revolution. Driverless cars, supercomputers that handily beat long-time Jeopardy! champions and cheap, flexible robots mean that many jobs long-thought to be “automation-proof” because they could only be done by humans will likely be taken over by artificial intelligence. This will, of course, have huge implications for the workplace and for enterprises, he said.

“I don’t think all this will result in enormous factories staffed by only two employees, one of whom is a dog whose job is to bite the human if he tries to touch anything important,” said McAfee. “But I do think we need to re-examine the boundaries between technology and humans and rethink our business models.”

Ideally, human intelligence and artificial intelligence can complement each other, he said. He cited organizations that opened themselves to input from outsiders and used data algorithms to greatly improve service, accuracy and productivity. Such organizations stand in sharp contrast to those that continue to rely on “HiPPOs,” or “the highest-paid person’s opinion,” whether it be the CEO or highly paid outside consultants.

“Some HiPPOs will take data in, but it’s their gut that ultimately makes the decision,” said McAfee.

Geeks, by comparison (McAfee considers “geek” a compliment and describes them as people who are “fascinated and driven by data”) are willing to ignore their gut and follow the data to where it leads them.

This reaps notable dividends, he said: Companies that adopt “data-driven decision-making” achieve  a level of productivity that’s 5 percent to 6 percent higher than those that don’t. Digital intelligence is remaking occupations from dairy farming to pathology — indeed, a digital pathologist created by Stanford scientists has proven to be better, on average, at cancer detection than highly trained human pathologists, said McAfee.

For organizations, he said, the upshot of all this must be that they make themselves more open to data-driven approaches and to outsiders who promise to bring in different ways of thinking and doing things, rather than continuing to rely on HiPPOs. He cited the Obama 2012 campaign, which not only brought in “data geeks” to identify new ways of identifying and motivating voters but put them in charge of key operations — a sharp departure from most political campaigns, he said.

“A lot of companies will not be open to this approach, and that will lead to a lot of disruption,” he said. “But if we can find new ways to combine human and digital intelligence, then the sky’s the limit.”

 

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Giving Employees a ‘Priceless’ Experience

When it comes to interfacing with HR, MasterCard Inc. wants its employees to have a—you guessed it—“priceless” experience.

At a session yesterday titled “Deploying Technology to Support the HR Experience at MasterCard” during the 17th HR Technology Conference and Expo in Las Vegas, Lois Miller, senior vice president and group head of HR services and solutions at MasterCard, walked attendees through the company’s recent implementation of a global HR portal. (The portal was built with the help of Towers Watson.)

MasterCard_Logo_svgIn 2011, Miller said, the Purchase, N.Y.-headquartered company officially moved over to Workday from a Lawson HCM and several best-of-breed solutions. In doing so, the company sought to create a unified platform with greater efficiencies and effectiveness, including giving employees direct access to information. “We wanted to enable employees to find the answers to questions themselves” instead of having them call or email HR directly, she explained.

At the same time, Miller said, MasterCard sought to give its 10,000 employees around the globe a “consumer-grade look and feel”  in order to simply the experience for them.

In conjunction with the portal going live, Miller and her team shut down HR’s email system so employees would have no other choice but to use PeoplePlace to get the information they were seeking. If employees came up empty handed, they could seek an answer through another new tool called AskHR. (Prior to the rollout, she said, HR performed a number of usability studies to ensure that both PeoplePlace and AskHR were a positive experience.)

Miller noted that “change management” topped the list of challenges she and her team faced. Interestingly, she said, it turned out that employees and managers were more accepting of the changes than HR. (Certainly, a comment we’ve heard before.)

To address the barriers standing in the way of adoption, HR produced a comprehensive communication effort, including a video featuring MasterCard’s CHRO Ron Garrow and describing the new portal and its purpose. HR also created a competition aimed at getting employees to try out PeoplePlace, asking them to locate five words (“find human resource information faster”) buried throughout the tool.

Speaking to the success of the effort, Miller reported that adoption has been impressive and that there’s been “zero pushback.” In August of this year, she said, HR received 30 percent fewer AskHR cases than emails it received in August 2013.

As might be expected, the company is currently tracking how the tools are being used, including the kinds of information employees are consuming, and plans to use that data to make improvements.

Miller presented the session with Jonathan Sears, Towers Watson’s Americas practice leader.

 

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HR Tech Keynoter: Big Data is a People Issue

Although the buzz phrase “Big Data” can still fill the hearts of some HR professionals with dread, Rahaf Harfoush wants them to get over it — indeed, they need to get over it.  Harfoush, co-author of the recent bestseller The Decoded Company: What If We Understood Our Talent Better Than Our Customers?, delivered the first-ever “Welcome Keynote” yesterday at the 17th HR Technology Conference and Expo at the Mandalay Bay Resort in Las Vegas.

“Big data is no longer a technology issue, it’s a leadership issue,” she said.  The sheer amount of data being produced these days — particularly by individuals, thanks to the ubiquity of smartphones — means that big data will affect all industries.

“We live in a time of data abundance, and we as individuals have become data-producing powerhouses thanks to Facebook, YouTube, Twitter and the like,” said Harfoush. All of this personalized data floating around makes it much easier for companies to offer products and services tailored to individual tastes, based on personal preferences, she said.

Data abundance and the rise of personalization is coming up against a third trend, she said: A talent shortage that, according to a Manpower survey, has left one out of three companies unable to fill key roles.

Companies that make smart use of big data can become “talent magnets,” said Harfoush. She urged the attendees to consider “the Decoded Model,” which consists of using technology as a coach, using data as a sixth sense, and “engineered ecosystems.”

By using technology as a coach, companies such as Sprint have been able to track data from its 45 call centers to link shortcomings in performance to training deficiencies, and use those “teachable moments” to support its employees in providing better customer service, she said.

UPS relied on “data as a sixth sense” to analyze the routes its delivery drivers used and discovered that if it came up with routes that eliminated the need for left turns, it was able to save millions of dollars in reduced costs and improved delivery time.  Google, meanwhile, used “engineered ecosystems” to identify the eight qualities of its most-effective managers via its Project Oxygen initiative. Once those eight qualities were identified, said Harfoush, Google remade its management training and recruitment processes to take into account that the ability to be an effective coach ranked much higher than technical skills. The result, she said, was higher employee job-satisfaction rates and lower turnover.

“The best part about a ‘Decoded Company’ is that their workplaces don’t suck,” said Harfoush. “People like going to work there.”

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Adapting to the Affordable Care Act

ACAHow are we going to respond to the Affordable Care Act?

That’s the question CHROs have been asking themselves since President Obama signed the ACA into law in March 2010.

The University of South Carolina Darla Moore School of Business recently asked that question of CHROs, in its annual HR@Moore Survey of Chief HR Officers.

Distributed to more than 560 chief HR officers at Fortune 500 firms as well as members of the HR Policy Association, this year’s poll asked these HR leaders to specify the actions they’ve already taken, or plan to take over the next 12 months, as a direct response to the Affordable Care Act.

The answers of the 200-plus respondents indicate that most companies are responding by pushing costs and responsibility on to employees. For example:

  • 73 percent of respondents said they have moved or will move employees to consumer-directed health plans.
  • 71 percent said they have raised or will raise employee contributions toward health insurance.
  • 30 percent of organizations have moved or will move their pre-65 retirees to ACA exchanges.
  • 27 percent have either cut back the coverage eligibility of employees’ spouses and dependents or plan to do so.
  • 23 percent have or will more rigorously ensure that part-time employees work fewer than 30 hours per week.

The study, which the University described as a “definitive look at how medium- and large-sized firms have been affected by the changes to the health insurance and healthcare system,” could serve as a “valuable benchmarking tool” for CHROs weighing their organizations’ options in terms of mitigating ACA-related costs, says Patrick Wright, a professor of strategic human resource management at the Darla Moore School of Business, and director of the school’s annual CHRO survey.

“Up to now there has been only speculation as to [the Affordable Care Act’s] impact on business and workers,” says Wright, in a statement. “This survey provides the facts about that impact and specifics on changes to employment practices as a result.”

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SCOTUS to Hear Headscarf Case

courtWhile the upcoming caseload for the United States Supreme Court’s fall term may not be as heavy on HR issues as in the past, there is at least one case that will examine the role of religious freedom in hiring .

The Court has announced it will hear the case of a Muslim woman who was denied employment at trendy clothing retailer Abercrombie & Fitch because she wore a headscarf.

The company has faced more than one discrimination suit in recent years over the policy, which has subsequently been amended, according to the Baptist Joint Committee for Religious Liberty.

In this case, according to the MSN News story:

Samantha Elauf, then 17, was refused a job at the retailer in Tulsa, Oklahoma in 2008 because she wore a headscarf, violating the company’s “look policy,” which outlines how store staff should be groomed and dressed.

While a federal judge hearing the case found Abercrombie & Fitch was liable for discrimination — to the tune of $20,000 — that decision was later appealed, where the 10th US Circuit Court of Appeals in Colorado ruled that the 1964 Civil Rights Act only protects employees who provide “explicit notice of the need for a religious accommodation.”

Under the act, no one can be refused employment based on their religion, unless the employer cannot accomodate the person’s religious beliefs without adversely affecting business, and court documents said she did not ask about how the company’s “look policy” could be adjusted to accommodate her religious dress at the time of the interview.

“Before her interview, Ms. Elauf knew the position required her to model the Abercrombie style, knew the style of clothing that Abercrombie sold, and also knew that Abercrombie did not sell headscarves,” Abercrombie said in its court brief.

The EEOC said its cases involving complaints of religious discrimination have more than doubled in the past 15 years, according to MSN News.

SCOTUS is expected to take up the case in January, with a decision expected in June.

Stay tuned…

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The Wellness Journey Continues …

Earlier this month, the Economist Intelligence Unit released a study (sponsored by Humana) of 255 executives. It found that roughly 70 percent of the respondents believe their organization’s wellness programs are effective, even though only 31 percent deploy some sort of “rigorous evaluation methods.”

Kevin Volpp, founding director of the Leonard Davis Institute Center for Health Incentives and Behavioral Economics, is quoted in the report saying he believes asking whether wellness [programs] have value based solely on return on investment is a mistake. Instead, the question should be, “Do we improve health at a reasonable price.”

185998025At this year’s Benefits Forum & Expo at the Boca Raton Resort in Florida, there seemed to be ample evidence that the business community’s commitment to wellness is very much alive and well, even if the data isn’t nearly as visible as some might like.

As might be expected, many of the employers featured on the program are, with the help of the vendor community, applying tools such as biometric screenings, health coaches and gamification in their attempts to improve the well-being of their workforces and, in turn (hopefully), reap meaningful productivity gains. (Such approaches will also be explored at HRE‘s Health and Benefits Leadership Conference next April.)

During a session titled “Domino’s Pizza: Evolving Wellness Strategy into Business Strategy,” Domino’s Director of Benefits Sandra Lollo shared some of the outcomes her company has achieved through the use of Quest Diagnostics’ Blueprint for Wellness tool, which has served as the cornerstone of its wellness efforts for quite some time. Lollo noted that Domino’s uses four key performance indicators to gauge its progress: participation, a health-quotient score (including a wellness scorecard combined with HRA), metabolic-syndrome risks (targeting BMI) and tobacco use.

Eight years into its effort, Lollo reports, Domino’s has seen discernible improvement on each of these fronts. In the case of the tobacco-use KPI, for instance, the percentage of tobacco users has been cut in half, dropping from 26 percent to 13 percent over that period.

The company’s benefits team is currently in the process of rebranding its effort (“dusting it off,” Lollo says) and pursuing a more holistic approach to wellness, including adding components that address issues such as financial wellness.

As might be expected, gamification found a decent amount of air time at the conference. In a session titled “Gamifying Wellness: How to Challenge Employees to Lead Healthier Lives,” Goldenwest Credit Union Assistant Vice President of HR Ashley Shreeve co-presented with hubbub Vice President of Sales and Marketing Brian Berchtold and shared some of the ways her 421-employee firm has used the hubbub platform to drive engagement and change behaviors.

Through simply named challenges such as “Walk the Dog” (a 14-day challenge that involves, yes, dog walking) and “Home Cooking” (a 14-day challenge aimed at eating healthier foods), Goldenwest is getting employees to take a small but valuable step in a better direction. (In other words, don’t bite off more than you can chew?)

One of the goals, Berchtold said, is to get employees to understand that wellness doesn’t end at 5 p.m.; it’s something that needs to be 24/7.

Goldenwest is attempting to undo the fact that “we’re asking our employees to be unhealthy by having them sit behind a desk all day,” Shreeve said.

For the 421-employee credit union, encouraging participation has not been a problem. All of its employees are currently on the platform and have, last count, completed more than 18,440 challenges.

(Here’s another interesting stat I jotted down from the session: There are more than 43,000 weight-loss/fitness apps out there today.)

Of course, gamification may not be the answer for every organization.

Elkay Manufacturing Co. Corporate Manager of Compensation and Benefits Carol Partington offered me a preview of a session she was slated to present later in the day with Interactive Health Senior Wellness Strategies Sandi Eskew: “Elkay Manufacturing: Tune Up Your Wellness Program.”

Elkay is entering its third year of on-site screening through Interactive Health. Under the program, employees who participate in the screening and independently declare they’re not tobacco users pay 20 percent less for their healthcare than a person who doesn’t do either of those things. From a financial standpoint, Partington said, that translates to about a $1,000 per year.

As with most things, the success of these initiatives often hinges on how well they’re communicated.

“We need to get employees to understand what we’re doing and that there’s a partnership; they’re not in it all by themselves,” Partington said. To that end, Partington and her team have worked hard to get the messages out into the workplace and employee homes. “You’d have to have your head in the sand if you didn’t know what’s going on,” she said.

What’s proven to be the most effective way to get these messages out there at Elkay? Through the organization’s plant managers, says Partington, because “it’s not corporate giving the message” … it’s coming from someone the employees know and trust.

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Get Outta Here!

leaving officeMany contend that the unique perks the Googles and the Qualcomms of the world offer employees—on-site dry cleaners, pet-friendly workspaces, employer-hosted farmers markets—are as much about keeping people at work as they are about making their lives easier.

So it was interesting to read this recent Washington Post article, which highlighted a few companies that seem intent on helping their employees actually stay away from the office, and remain disconnected from their work after punching out for the day.

For instance:

  • Redwood, Calif.-based software company Evernote offers employees a $1,000 stipend for taking a full week away from work.
  • FullContact, a Denver-headquartered provider of contact-management software, gives employees $7,500 a year if they take time off of work. According to the Post, use of vacation time among the firm’s employees shot up after the policy was introduced.
  • Dutch design firm Heldergroen makes it impossible—or at least pretty uncomfortable—for workers to hang around the office past 6 p.m., when employee desks are lifted to the ceiling via steel cables, and all furniture is cleared from the floor.
  • Menlo Innovations opts not to offer technological tools for remote work. No employer-provided laptops, no virtual private networks and no remote-access software. The message to employees is clear, according to Richard Sheridan, the Ann Arbor, Mich.-based software design firm’s CEO. “You can’t take work home with you,” Sheridan told the Post.
  • Quirky, a crowd-sourced consumer product maker with headquarters in New York, takes things a step further, shutting down completely for four weeks out of the year. Founder and CEO Ben Kaufman began the practice in early 2013, closing Quirky’s doors the first week of every new quarter.

Yes, most of these and the other examples cited in the Post piece are smaller and/or start-up type tech companies. But, with larger, more traditional-minded organizations always looking for ways to help employees strike that ever-elusive work/life balance—and position themselves as “cool” places to work—wouldn’t it be interesting if we started to see more Fortune 500 firms co-opt this piece of the freewheelin’, forward-thinking start-up culture?

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