Tuesday, April 20, 2010

The Ethics of "Poaching"

I read an interesting article this morning about the ethics of poaching; not hunting animals out of season, but rather the idea of specifically recruiting or targeting key talent that works for another organization typically a competitor.

I have to tell you that my initial reaction was "what"? As the article went on it did differentiate between specifically targeting an organization with the intention of undermining them through recruitment of their key talent or recruiting with the intent of obtaining trade secrets or proprietary information, but short of that indicated it was ok. Thanks for permission.

It kind of takes to thinking that our lexicon has gotten to the place where we really have started to believe phrases like human capital. One small problem, our employees don't "belong" to us. We "rent" their knowledge, skills, and behaviors and for a period of time if we are skilled and lucky we create a bond of mutual loyalty because of respect and commitment, period.

I think the timing is especially interesting now that it looks like the economy may be picking up. I see a lot of questions out there from organizations about what they should be doing about retention in the face of a more robust economy. I advise prayer. I am only being semi sarcastic. I am stunned by organizations who do not make investments in engaging and retaining employees on an ongoing basis and then want to install a program to fix it when there are issues.

Employment at will is a concept that most employers will defend with the ferocity of Charlton Heston over the right to keep and bear arms- as long as it is balanced in their favor. They don't like it when employees see themselves as free agents.

I hear a lot about loyalty as well. I define loyalty pretty simply. We interact with trust and respect. We meet our commitments to each other and we take into consideration our actions on the impact of the others in the organization when making decisions, period. Out in the Wild West where I grew up we called it "riding for the brand". While I was sleeping in your bunkhouse and eating your food I was present, you got my honest effort. There were no life contracts or pledges of fealty.

I guess I am a career poacher. When I see people who are really good at their jobs and whose skills might be transferable to an organization I work with or for I feel comfortable bringing to their attention that if they are interested in exploring options I would like to talk with them.

As you know I am a huge believer in the concept of engagement. I guess my model is the best way to keep your employees from being "poached" is to create an environment where they don't actively seek or entertain other options because of the relationship of mutual respect and trust you have created. If my employees find another opportunity that they feel meets their needs or provides them with a chance to expand a skill base I wish them well if it is the right opportunity. You see I have found ex employees to be one of my best sources of future employees, if I treated them well they remember it and share it with their friends and associates.

So I guess with the exceptions of targeting or attempting to take trade secrets we need to acknowledge there is no such thing as poaching. Mr. Lincoln freed the slaves well over 100 years ago, people can't "steal" something from us we never owned in the first place.....

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Saturday, January 9, 2010

Reinventing Human Resources Departments

Like many of us today I spend my share of time on social media sites like LinkedIn, Digg, Facebook and others.

LinkedIn particularly I find to be a great forum for exchanging ideas, asking and answering questions and just "chatting" with colleagues. One of the things I find disappointing is that I still see frequently on LinkedIn are questions like:
  • What sucks the most about your HR department?
  • Does your HR department bring any value added to your organization
  • How as an HR professional do I generate respect and credibility?

I have been in and around the HR profession for over thirty years and even though I have "progressed" to C level roles both in human resources and operating departments it pains me to hear discussion I heard when I was graduating from college and my advisor pleaded with me not to "waste" my talent in Personnel.

As recently as yesterday I was with a colleague in a related field who lamented that when he attends local SHRM meetings the discussion is mostly defensive or compliance oriented rather than discussing solutions or being proactive.

Human Resources needs to re-define itself and the timing is no more critical than today.

A recent article I read made a statement I agree with whole heartedly and have been preaching for the last 36 months or more:

Employee engagement and retention are emerging as two of the biggest challenges facing business in the next decade!

Because of the economic downturn many C level executives are doing what they have always done during times of economic uncertainty; focusing on the numbers. They assume because of high unemployment that employees are just grateful to be employed or replacement talent is readily available. This is both horribly wrong and short term thinking for a number of reasons:

  • Recent studies find employee satisfaction is at one of its lowest points in 50 years!
  • The U.S. economy is estimated to be operating at a 30% rate of efficiency with further erosion occurring because of loss of trust stemming from layoffs and economic insecurity.
  • Employee turnover is estimated to cost the U.S. economy $5 trillion annually
  • The costs of "presenteeism"; employees who are employed, but largely un-engaged is estimated at another $200 billion annually.

That's right, those numbers are trillion with a "t" and billion with a "b". One could conjecture that fixing these issues could fund a national health care initiative and probably go along way to solve funding issues in education, poverty and other areas.

So what can HR professionals and departments do to help address these issues and increase their stature and contribution, I would submit several things:

Change your role

I expected my HR teams to provide three primary services to our internal clients: technical expertise, facilitation, and project management. Our role is to provide the right tools to management to select, motivate, and retain the right staff. They are responsible to learn and use those tools. I don't expect managers to be experts in ERISA or COBRA, but basic competencies like setting expectations, giving feedback, taking corrective action, and linking individual goals to organizational goals are management competencies, not HR competencies.

Develop and implement an employment brand

Engagement starts with the hiring and selection process. Organizations that achieve excellence are clear about their brand internally and externally. Candidates and employees know what the organization stands for in terms of values and vision. They may be flexible about process, but they are ruthless about adherence to those values and principles.

Create a pipeline

Great HR organizations are constantly monitoring their "pipeline" of talent. They are proactive not reactive. If turnover or growth occurs they have strategies in place to quickly identify and deploy the right talent. They don't scramble.

Integrate your systems

I am old enough to remember when the total quality movement was "new". You didn't inspect quality in, you built it in. So many times I see organizations approach their HR initiatives serially; we will work on our recruiting system this year, compensation next year, performance management next year, etc. It doesn't work. These systems must be integrated and more importantly they must link clearly and directly to your business strategy.

Foster and cultivate a culture of innovation

You are either moving forward or you are regressing. Great companies don't follow best practices, they create them. They don't wait for the competition to come up with the next idea, they constantly challenge their own thinking and reinvent themselves. I personally ascribe to that model by doing some of the following:

  • Hiring the "right" people
  • Creating an optimal environment
  • Managing "whole" people
  • Moving from compliance to "commitment"

If you want to know why I encourage you to do these things right now, here are my reasons:

  • Demand for talent- over the next 15 years the demand for “experienced” talent will increase by 25% and the supply is expected to decrease by 15%!
  • Less than 30% of organizations worldwide have an engagement strategy today. Do you want to lead or follow?
  • Engaged employees have a turnover rate 51% lower than un-engaged employees and a per capita productivity rate 18% higher.
  • I guess my last reason would be that if you are an HR professional aren't you tired of sitting in the cheap seats? This is our time, it is up to us to take it.

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