Another Step Towards Engaging Millennials

When writing previously about employee engagement, I discussed how companies can encourage employees to be engaged by taking steps to connect them with the organization.  We also know that, as a group, millennials tend to look for ways to connect with their employers and co-workers in ways that go beyond whatever product or service they are delivering at work.

This article describes a start-up that provides experiences for groups of employees to help encourage engagement in a way that is enticing to millennials.  This includes unique experiences they can together and being involved in community service.

Of course, this type of thing is not brand new.  Companies have been involved with stalwart social service organizations like United Way and Red Cross for many years.  But, I think it is fair to say that millennials are looking for something a bit more active than fundraising and giving blood (both worthy endeavors, by the way).

Companies do not need to outsource their engagement activities and management can brainstorm things that would appeal to their employees and fit with their culture.  But, this does show how companies are trying to get younger workers more engaged by experiencing intrinsic rewards (feelings of accomplishment) rather than extrinsic ones (here is a thing for doing well).  It also underlines how it is important to proactively create engagement you want to improve teamwork and reduce turnover.

Higher Minimum Wages and Success in the Hospitality Industry

The state of California and several of its cities have been on the forefront of raising the minimum wage.  The arguments for (people cannot live on the current minimum wage) and against (it will cost jobs because business will need to lay people off) it are familiar.  But now there is some data that makes a very interesting link between quality and the impact of raising wages.

This study looks at the impact of raises in the minimum wage and restaurant employment in the San Francisco Bay Area.  Don’t be fooled by the academic nature of the paper—the authors do a good job of explaining things in English before digging into the math (though you can get another explanation here with an eye towards the political).  The main takeaway from the article is that well run restaurants (in this case, defined by high Yelp ratings) are not impacted by minimum wage hikes.  Crappy restaurants (based on quality, not menu price) saw their already higher closure rate go up with the increases.  So, what does this mean for HR?

  • Well run businesses can absorb higher wages when their competitors cannot. This may mean higher prices (in some instances people will pay for quality) or that these businesses can survive on lower profit margins.  HR can contribute to this through good hiring (brining in people who can deliver high levels of customer service) and training (developing a learning culture) practices.
  • Use data to improve quality. The study shows that online feedback (in this case, Yelp reviews) is strongly correlated with business success.  This customer input should be used to improve service and quality.
  • If we presume that the vast majority of the workers at the restaurants are at minimum wage (as the paper does), this research tells us that paying more is not an indicator of quality or success. If restaurant A is getting a rating of 5 and restaurant B is getting a rating of 3, it is not due to wage differentials.  Rather, it is likely based on the quality of the product and the level of service.  HR may not have much impact on the former, but it certainly does on the latter.

What the paper really tells is that that business can succeed without necessarily being the one that pays the highest wages.  When wages are held constant, hiring the best people from the available labor pool may lead to higher service delivery.  This, in addition to a good product, can keep a business successful, even if wages are forced to go up.

Our Love/Hate Relationship With Meetings

Coming across this today, I can only imagine that every editor of a business section of any published content has a yearly reminder to put in an article about meetings.

What it comes down to are several sometimes contradictory feelings that employees have:

  1. I want to have lots of communication in my organization.
  2. I get too much e-mail.
  3. I go to too many meetings.
  4. I hate meetings because:
    • They are hopelessly inefficient.
    • I have other more pressing things to do.

The articles are usually written from the point of view of the put upon employee and focus on how to eliminate meetings.  I’d like to take a different take.  What can a leader do to execute better meetings?

Be Thoughtful of Who to Invite.  Meeting invites should not be about status. Rather, they should include those who can provide useful ideas and insights to the rest of the group.  If someone comes and does not think he can contribute, don’t invite him to the next one.  If someone else hears about the meeting and thinks she can contribute, invite her to the next one.

Set a Good Agenda.  Sending out an agenda before a meeting is a no brainer (and can help people determine if they should attend, per above). Better agendas include action words (e.g., Discuss project X; Decide on project Y) to help guide the conversation.  Also, they estimate how much time will be allocated for each topic.  This ensures that all important topics are addressed in the meeting.

Be the Best Facilitator Possible.  Meetings can be inefficient (or worse) because they go off on tangents, one person dominates the conversation, decisions don’t get made, etc.  Meeting leaders who can manage the process better get the most out of their groups.  These skills are not hard to acquire. Extra tip: Rotate which of the group members facilitates the meeting. It provides a different perspective of the group’s processes.

Get All Ideas on the Table. Some people choose to defer to others in meetings for a variety of reasons.  Good meeting leaders set the expectation that everyone with relevant ideas participates and draws out those who are not sharing.

Summarize Decisions and Action Steps.  No one should ever leave a meeting wondering, “So what’s next?”  Meeting leaders should be clear in their language about what has been decided.  This allows others to either object or agree.

We cannot say we have to have better communications AND fewer meetings.  However, we can have better meetings and better communications.

When Even Tech Job Training Lags Behind Need

In any employment market there are going to be jobs in high demand and those that go unfilled.  In our tech driven economy, the jobs that are hard to recruit for range from utility lineman (long hours, hard work, and fabulous pay) and, strangely enough, cyber security.  With all of the hype and news around hacking, I was surprised to learn that these $80k/year jobs are readily available.  But why?

From a selection standpoint, good cyber security engineers need an odd combination of skills.  Of course they need to be great programmers with high levels of critical thinking.  However, they often need to have a criminal’s mindset (“How would I get into this system without someone knowing?”), which makes them a risky hire given their access to sensitive data.  And makes them attractive on the black market.

The incentives for prevention jobs are also difficult.  After all, they are performing well when nothing goes wrong.  But, when someone breaks into the system…

This is an opportunity for industry and universities to work together.  College students want tech jobs (sorry to those of you who recruit linemen), but they tend to want to work in the sexier product/app development area. Tech companies can show higher education how to make the field more “fun,” perhaps through gamification and appealing to the cat-and-mouse aspect of the work.

My sense is that they pay for these jobs will also need to rise to fill them.  If it is true that good cyber security engineers have good hacking skills, there needs to be a sense of doing the right thing pays at least almost as well as breaking into systems.

What we see is that even tech companies need to be thinking about how to get future workers trained and recruited for jobs that are not that appealing.  As our economy constantly evolves, companies will still need “legacy” employees (yes, some day, app development will be boring compared to what is hot then).  And it is possible that the cycle of job obsolescence will become shorter.  This makes the challenge for schools to provide the skills to future employees even greater.  Industry and education will both benefit if they work together in that venture.  I just hope in the meantime no one has hacked my blog.

While I am Likely to be Wrong, Allow me to Continue

Interviews are worse predictors of job success than you think.  And I do not care if you don’t think very highly of them as you read this, it’s still lower.  Yet, there is an insistence that they are better than they are and no company I know of is willing to give them up.  Why is this?

Of course, it’s because doing them is ingrained in our corporate cultures.  Thomas Edison (supposedly) conducted the first one.  However, note in the example that it was a test and not an interview, which ensured that it could not be less valid, even with the ridiculous questions cited.  Obviously, if a guy as smart as Thomas Edison was doing it, it must be right.  Then again, he was not trained in understanding human behavior.

The problem with interviews (besides just these) is that they are fraught with noise.  As I’ve written about before, interviewers (which are all of us) are loaded with biases which skew a good deal of information that we get from the person being interviewed.  Of course, the person being interviewed is likely to have prepared for the questions.  In fact some millennial job seekers I know informed me about how they are rarely asked a question they haven’t seen online and when they do get one they post it immediately.  From all of this pre-work, the interviewer is getting canned answers that may not reflect the person.  Of course, this may be a fine attribute if hiring someone who is not supposed to give his/her opinion on anything.  However, it does hurt the validity of even the best structured interviews.  As an aside, if you MUST interview, please make it highly structured and use it as a lever to find out about the person’s job related skills.

So, what is a company to do?  Go on a blind date with candidates?

I would suggest making your hiring decision BEFORE you interview.  Let the interview be the last bit of data that might break ties.  For instance, be sure that someone you are hiring for a customer facing position can actually make eye contact and put a few sentences together.  Or, use it to double-check the person’s availability for your work hours, give them a tour/realistic job preview, etc.  This allows HR or the hiring manager the last look without adding unpredictive noise to the process.  And think about how much time you will save!

It is not your fault that interviews do not predict performance.  The question is what are you going to do to prevent them from messing up your hiring process?

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