The Perfect Fit

In 2009, Internal Hires Dominated. Will It Continue In 2010?

Im finally climbing back in the saddle after missing almost a full week due to some very nasty chest cold!   In catching up on some professional reading, I can across a blog posting from John Zappe called, "Internal Hires Dominate Job Filling in 2009".  That sounded interesting so I read further.  You can see the blog posting here. Here's what I found:

"The ninth Source of Hire report from CareerXroads is out and it shows the CareerXroads impact of the U.S. recession on hiring patterns over the last few years while offering some encouraging news about hiring in 2010.

The white paper’s top-line findings show that, on average, 41 of the nation’s larger companies filled just over half their vacancies in 2009 by internal transfers and promotions. This is the largest percentage since CareerXroads first reported the data in 2002.

For 2010, however, 48 percent of the participating companies expect to hire and hire robustly. The prediction is for 29 percent growth in hiring. Only 10.8 percent of the surveyed participants expect to higher fewer workers this year. Compare those percentages to the Source of Hire report issued last year at this time. Then, 100 percent of the companies predicted they would hire fewer workers.

Recession boost internal hiring SOH 2009 (Source of Hire) “The spike in internal movement is a strong artifact of the recession and suppressed many other sources of hire,” says the report, authored by Gerry Crispin and Mark Mehler, founders and principals in the recruitment-oriented CareerXroads consultancy. “Expect internal movement to fall to more normal levels in 2010.”"

The free white paper is posted to the CareerXroads site, you can download it here.

I didn't realize that more companies don't hire from within more consistently.  I have to wonder why.  You'd think that it's a perfect way to reward employees for doing excellent work.  It's exactly the kind of opportunity premier employees expect.  It's one of the best ways to retain those top performers.  In addition to whatever their function skill set is, they have the added benefit of "institutional knowledge" and expertise in whatever their vertical category is.  I would think all that would combine to make internal hiring much more of a "best practice"!

In the discovery process of every search we conduct, one of the first questions is "Are there potential internal candidates who should be considered for this position?"  If there are, we put them through the same interviewing process as the external candidates we also identify. 

As I discussed in my recent post "The Same Company For An Entire Career?" there is value in longevity with the same employer.  While I certainly understand that in some cases there are not appropriate internal candidates, and in other instances, there's a need for "new blood" or thinking, management too often doesn't "take a chance" with a promotion.  The thinking is "Well, that employee's never done that before," and so they're passed over.  My experience is the premier performers raise their game to the necessary level . . . it's how they grow and feel that professional satisfaction of an upward career trajectory.

It seems the recession caused what I consider to be an obvious benefit . . . It's strange most employers don't agree and won't continue the process.

I wonder how many times you've either been the victim of an external hire, or you saw a colleague passed over for someone from the outside, who isn't at strong an employee as your colleague? 

The Same Company For An Entire Career?

I attended a seminar this morning presented by the St. Louis Business Journal, "The New Economy".  Michael Forster, Managing Partner of Sandberg, Phoenix & Von Gontard and Doug Mueller of Mueller Prost PC were the presenters.  The discussion centered around what businesses can/should be doing as we move (slowly) out of the recession.

While much of the discussion dealt with business operating methods and protocols, there were times when issues affecting employees were discussed.  Actually, it was more like how employees affect businesses.  I was struck that there was no mention of the need for programs to support (if not assure) employee retention. 

I've written previously in this blog about how employees have a responsibility to themselves to find appropriate training and grow professionally (The Workplace Has Changed . . . Have You?).  Hopefully, employers are supporting (and paying for) that effort.   I've also talked about the need for the retention of premier employees (Are you Being Taken Care Of . . . Or Taken Advantage Of?)  Employees need to grow in their careers, and employers should want to keep those employees who consistently do that.

There was what I considered to be an interesting observation made by Mr. Forster.  He suggested that in the "new economy", we had to behave more like in the "old economy".  He talked about the need for dedicated hard work for everyone, no matter what you do.  Hard work like in the "old days".  Hard work like our parents and grandparents talk about.  Interesting . . . that seems to fly in the face of theories of accommodating the newest generations X & Y. 

Further, it was suggested that the development of "real expertise" is being eroded by automated systems, and the reality that employees no longer stay with one company long enough to develop or enhance that company's specific expertise.  Another interesting point.  Think about how few people in the workforce now rise through the ranks from the bottom to the top of the same enterprise.  Can you think of any?

Obviously, innovation in any business creates advantage.  Innovation will be essential to fuel the "real" growth of the US economy.  I'm not talking about getting back to where we were, I'm talking about significant, job creating, lifestyle enhancing, growth.  Innovation is the result of happy, experienced employees. 

It seems like the way things are going, we are not on a track to have many of those!

Think about how your existing job and career might change if you decided you were going to become the CEO of your company.  You wouldn't let those little "issues of the day" bother you.  You'd find better ways of doing things.  You wouldn't take "no" for an answer.  You'd become Indispensable to your employer . . . and in so doing, become immeasurably more valuable ("Are You Indispensable Or Vulnerable?").  If all that happened in the longer term, you'd get promotion after promotion. You'd rise through the ranks, until you reached the top.  Interesting . . .

Do you really have a career strategy to reach career goals, or are you just looking for what you perceive to be a "better job" . . . ?  Are you expert enough to innovate?

Just curious . . .!

Companies Should Send Candidates Thank-You Notes, Too

That's the headline in a recent Ad Age article.  Sub-Head, "It's a Great PR Move for Prospective Employers".  I completely agree with Paul Gumbinner, the author of the Ad Age article. Paul writes,

"After an interview, it's surprising that only about 60% of candidates send a thank-you note (an even smaller percentage sends them after visiting with a recruiter). Aside from being an expression of good manners, a short note expressing interest can go a long way toward promoting a person's candidacy.

Of course, much has been written about thank-you notes in terms of job seekers. But I wanted to tackle something that, to my knowledge, has not been suggested before: Interviewers should send them to candidates, as well.

I would like to propose that this should be the policy at every advertising agency."

It should be a policy at every single employer, period . . . not just agencies.  I know most job seekers would say, "Hey, how about a simple acknowledgment of my interest in your company?"  It's extremely annoying to me that the vast majority of employers (75%+ ?), don't even bother to acknowledge receipt of a resume or inquiry.  Most employers are a black hole for resume submissions and as such, are committing PR suicide.  I've written about this previously with "Screw You, Candidate!"

In the near future, skilled employees are going to be at a premium.  Once you factor in their experience, career goals and fit with an employer's culture, they will be even more limited.  Yet, companies don't take the opportunity even acknowledge an interested candidates' resume.  They should thank every single applicant and treat each one with respect.  Respect is the foundation for retention and for hiring.  If respect exists in a corporate culture, so does employee retention.  You can't recruit someone with disrespect!

Respect (obviously) even goes beyond retention and recruiting.  It shouldn't exist for self-serving reasons.  It should exist because it's the right way to do things . . . everything.

Yesterday, I tweeted the article "Respect: A Key Ingredient for innovation".  The Innovation Tools blog goes on to state:

"Respect is a key ingredient for successfully bringing a new creation to market. In other words, innovation. At the highest level, senior managers should have respect for both the future of the organization and for the people they are responsible for guiding.

The senior management team needs to be seen by the troops as having their best interests in mind, and not just pumping up the stock price. If the senior managers are viewed within the company as being self-serving and unconcerned about the long-term success of the firm, the creativity and focus needed across the company will not flourish."

Why is a lack of common sense, civility and respect so much the norm?  Is it laziness, selfishness or (heaven forbid) expense?  Do employers consider themselves to be "too busy"?   How many of you will ever work for a company who never bothered acknowledging your interest or failed to treat you with respect?

The Workplace Has Changed . . . Have You?

The recession has caused fundamental changes in the way Employers look at their employees, and how employees are responding.  Employers have had to make difficult staffing decisions at every level of their organizations.  The reality in many cases what that expenses had to be cut, or the business would be in jeopardy.  It's no surprise that the expense of labor is significant and laying an employee off has immediate cost cutting benefits.

Furloughs, cutbacks in hours/days per week and pay (also benefit) reductions became methods with which employers were able to keep some employees, but at lower take home pay for the employee.  While this is understandable, and for some preferable to losing their job altogether, the result is the same . . . employees no longer relying on one employer.  Employees have to find supplemental income to maintain their income levels.  Trimming the pay might keep the employers' doors open, but the cost to employees is high.

Many employees are looking for "second job" options.  The ability to work remotely has helped move that trend forward and it's not going to stop.  Employees will work second "retail" jobs, freelance, or start a company, in order to make ends meet . . . at least in the short term.  They don't want to be in a position of being vulnerable to one employer's decision about their employment.  Those with more experience, might very well decide to start a business of their own.

Entrepreneurship has never been stronger.  According to BusinessWeek quoting the Kaufmann Foundation:

"A crop of potentially groundbreaking companies is emerging from the wreckage of the Great Recession. No question, some will blow up, and others will fail to reach their potential. But the downturn has done little to dampen the entrepreneurial spirit. During the first half of this year (2009), angel investors financed 24,500 new ventures, 6% more than during the same period last year, according to the Center for Venture Research. The overall amount of money going into startups has declined, but the figures suggest that this year will see the birth of roughly 50,000 companies with enough promise that someone is betting money on them. "It may be that this is the best time to start a company," says Carl Schramm, president of the Kauffman Foundation, an organization that promotes entrepreneurship."

There's another study conducted by the Small Business Administration (SBA) “Nonemployer Startup Puzzle” that came out in December 2009.  It concludes there is "a correlation between job losses and startups of single-person businesses (called “nonemployer businesses”).  “Nonemployer start-ups follow and are heavily affected by a state’s unemployment rate.”  In other words, there are more startups when unemployment is high."

My point is the workplace has changed, and will continue to change.  Employees who are not continuously working to improve their skills will become obsolete.  The onslaught of information and the way it's being delivered has never been more overwhelming.  It's essential for employees to stay alert to new thinking, new technologies and better ways of doing things.  They need to work to be top performers and indispensable to their employers. (See Are You Indispensable Or Vulnerable)

Job Satisfaction at Lowest Level in Two Decades

In a Conference Board Report released last week:

Researchers have found that employee satisfaction is at the lowest point since they began measuring this in 1987.

Employee satisfaction in 1987 was 61%.  In the most recent survey it was only 45%.

"Americans of all ages and income brackets continue to grow increasingly unhappy at work-a long-term trend that should be a red flag to employers", according to a report released today by The Conference Board.

The report, based on a survey of 5,000 U.S. households conducted for The Conference Board by TNS, finds only 45 percent of those surveyed say they are satisfied with their jobs, down from 61.1 percent in 1987, the first year in which the survey was conducted.

"While one in 10 Americans is now unemployed, their working compatriots of all ages and incomes continue to grow increasingly unhappy," says Lynn Franco, director of the Consumer Research Center of The Conference Board. "Through both economic boom and bust during the past two decades, our job satisfaction numbers have shown a consistent downward trend."

Fewer Americans are satisfied with all aspects of their employment, and no age or income group is immune. In fact, the youngest cohort of employees (those currently under age 25) expresses the highest level of dissatisfaction ever recorded by the survey for that age group.

"The downward trend in job satisfaction could spell trouble for the overall engagement of U.S. employees and ultimately employee productivity," adds Franco."

There's a short list of reasons employees are unhappy:
    * Fewer workers consider their jobs to be interesting.
    * Incomes have not kept up with inflation.
    * The soaring cost of health insurance has eaten into            workers' take-home pay.

The result is employees working harder and longer hours (in many cases because of layoffs around them) for less and less "real" money . . . spendable money.

Surprisingly, the authors do NOT believe that this lowest ever employee satisfaction measure is just a function of the current American economic downturn.  In fact, they think it is a sign of something far more dangerous, especially as it could impact enterprise success and knowledge transfer from one generation to the next. 

That's a scary thought . . . no growth or stability through expanding on an accepted foundation of past enterprise experience.  The foundation will never stop being built, it may never get past its preliminary stage of being a foundation.  Older workers may be less inclined to share their experience, knowledge and skills with younger employees.  There could be less of a sense of teamwork with the result of a perpetual downward spiral of morale and productivity.  See my earlier post "Turnover Is Going To Build" and "Are You Being Taken Advantage Of Or Taken Care Of?"

Does any of this sound familiar?  Are you less than content, or are you feeling professionally challenged and excited about your prospects of growth within your existing employer?  Are you satisfied with your co-workers' (including your boss) sharing of knowledge and experience?  Has anyone said "Good job" to you lately?  If you're not content, are you doing anything about it, either for yourself or your employer?

Some employees are going to polish up their resumes, start looking for new opportunities, or get in touch with a headhunter.  Premier employees are going to understand the issues involved, and do whatever they can to contribute more to their enterprise.  They'll communicate . . . with their bosses and their co-workers.  They'll identify the issues and try to find a solution.  They won't just quit and try to find something else.  They'll earn their money by performing well beyond their literal job descriptions.

In a similar way, the C-Suite or owners and bosses at every level have to understand what's happening in their organization.  They have to take steps to train and retain those employees who contribute in a positive way.  They need to tell employees they're doing a good job . . . when they are.  They have to do everything they can to staff and pay appropriately.  There needs to be a spirit of cooperation, collaboration and shared success.  I'll say "Communication" again . . . it's essential.

What do you think?  I'd like to hear your comments.

Looking Ahead to "Communicating" in 2010 (And Beyond!)

In the worlds of recruiting and staffing issues, Kevin Wheeler stands out as an experienced practitioner and commenter on current and future trends.  I have a great deal of respect for him, and have learned a great deal from following his thoughts, especially on recruiting.  Yesterday, he posted an article on what he thinks trends are in the coming year.  I thought they had value beyond specifically recruiting, and want to share them.

"Every year I try and predict what trends and topics will dominate our thinking, conversations, and technology in the coming year. Last year my three predictions were pretty much on target: Simplicity in sourcing, the rise of social networks, and internal redeployment. I am not sure how much redeployment actually took place, but it must have been significant as key positions remained filled even when external hiring was slow.

Sourcing remains a topic that I am interested in. It seems to me that the need to conduct in-depth Internet searches and apply Boolean logic to searches is no longer relevant in the majority of cases. Cold calling and other traditional methods of locating people will never go away, but are less significant. Two occurrences have changed the game. The first is social networks whose mass adoption, personalization, and ease of use have put them first in the sourcer’s toolkit. Second, jobs are being redefined and replaced with an emphasis on broader skills and on the ability of candidates to take on a variety of roles. This opens the door to more candidates, except in narrow technical areas where specific skills and training are required. A third minor factor is the recession and the short-term surplus of candidates. This will evaporate as Baby Boomers retire and more people start to work for themselves, but this will be an evolution over the next five years.

I don’t need to comment too much on the importance of social networks. This past year has proved their efficacy as sourcing tools as well as sales tools to motivate and engage candidates. What is going to change this year is the emergence of proprietary networks for specific industries or even for specific organizations, if they are large and employ a lot of people. The Facebook’s and LinkedIn’s will face competition, in a way, from networks that are designed for a specific type of person, role, industry, or geography. These more general networks are already offering this, in a way, through interest groups and pages for specific organizations."

Are You Being Taken Care Of, Or Taken Advantage Of?

There was unexpected good news lately with the nation's unemployment rate dropping from 10.2% to 10% . . . doesn't seem like a lot, but it's a start.  The forecasts for spending in marketing and advertising are trending up for next year.  There's already more hiring activity in the 4th quarter than many would have expected.  I'm betting that lots of employees are just biding their time, before they move to a new opportunity.

A survey by benefits consultant Watson Wyatt found that the "engagement" or loyalty, of top performing employees has dropped by 25% over the past year, largely because people who kept their jobs have been soured by layoffs, bonus and benefit cuts, and a stoppage in promotions.  Many employees are keeping their eyes open for their next opportunity.

Employers seem oblivious to making the necessary effort to retain those top performing employees.  While compensation and benefits are obviously very important, they're not the only drivers of employee satisfaction.  Employers could be creating better work cultures.  They could be more aware of what their employees are thinking, by engaging with them . . . yes, actually having a conversation with them in an effort to find out what's important to each one.  I'm not talking about those conversations that happen during "reviews", either!

They'll find that something as mutually valuable as training, or ongoing education is high on most employees lists of things they want more of.  Smarter employees add more value to their employers . . . seems so simple.  Many employees would also like the opportunity to diversify what they do everyday.  They'd like to work in other departments.  Many would enjoy a lateral move to another position in the same company . . . just doing something different can be refreshing and fun.  The result for the employer is employees who are cross-trained, and know more about how the company works, creating a beneficial redundancy . . . all while making the employee happy too.

I've stopped being shocked by hearing the things that consistently drive employees crazy.  At the top of that list is "micro-management" by the boss, or the lack of anyone listening to what are in some cases outstanding ideas to help efficiency or profitability or client retention.  Simple "communication" is a the top of many lists as well. 

My point is that I believe employees are getting ready to move as soon as they can.  It's similar to 2001 and early 2002, when there were huge layoffs, and very few real marketing "career" opportunities.  Employers had employees working additional hours, while being understaffed ("lean" as employers call it).  There was nothing an employee could do, other than simply be happy they're employed.

I know most who are employed today are thankful.  We're getting through the worst economic climate in any of our lives.  Being employed, even unhappily, is an ok thing.  Employers had better start paying attention, and working harder for their employees, or they're going to be very unhappy when the exodus begins.

What do you think?  Do you think your employer is taking advantage of you, or taking care of you?

The Next Six Months . . . Emerging Employment Trends

I had the opportunity to listen in on a webinar last week, presented by Kevin Wheeler founder of The Future of Talent Institute and respected author and lecturer on employment and recruiting issues.  He made some very insightful comments about where he thinks the employment market is headed, especially in the near term of the next six months.  You can listen to the entire webinar here.  Here are some of the highlights I thought you'd find interesting, with my thoughts interspersed.

We all know that the unemployment rate is currently 10.2%, suggesting that there are loads of potential employees on the market.  While there are in fact too many hard working Americans who can't find a job, there are still going to be shortages of potential employees in many highly skilled positions.  Why?  Because as a result of downsizing, layoffs and the like, many top performers (especially in the marketing community) have decided to start their own businesses.  "Self employment grew seven times faster than wage and salaried employment from 2002-2006."  We're becoming a nation of entrepreneurs.  There are currently over 4% of contract workers, the highest number in years.  Another illustration is www.elance.com has recently passed the $200 million mark for freelance work delivered. 

Women are overtaking men in the workforce.  Manufacturing and construction jobs are down, traditionally employing men.  At the same time, healthcare jobs are up, traditionally employing more women than men.  Women are graduating from college in much higher numbers than men.  Women are moving into more management roles, and as a result will change the culture of work substantially.

Kevin points out that there is a rising "culture of sustainability".  There's more thinking for the future, more thoughts of "sustaining" . . . everything.  Growth rates will slow, including spending.  There will be more savings, the idea that "simple is good" will prevail, "just enough" will be enough.  The focus will turn to Reuse/Recycle/Retain/Refresh . . . instead of more and more, newer and newer.

"The idea of Retrain/Redeploy/Refresh will be the hallmark of employment."  One of the things employees want most from their employer is "training" or "education" . . . professional growth which supports personal growth and happiness in the workplace.  Employers will take existing employees and train them for the future, rather than replace them.  There could be more promoting from the inside (even if they're not the "perfect fit") re-training where necessary.  Retraining will be much more commonplace.  Barriers to internal movement (either upwards or laterally) will be removed.  E.g. Internal candidates will no longer have to "apply" for a position as if they were an external candidate, thus removing a "barrier".

Employers and recruiters will seek fewer, better candidates.  There will be more effort (assessment) to find great cultural fits, then training the person for specific skills.  Once internal recruiters have determined that the right candidate is not within the company, outside recruiters will be used more frequently to find those exceptional performing candidates.

Technology obviously is going to play more of a role in recruiting and hiring.  Kevin believes that social communities will develop and flourish in narrow vertical categories.  There will be video "everything", including as it relates to an employers online "brand identity".  There will be virtual tours, online interviews, video assessment and simulations to help determine degree of fit and skills.  Both employers and employees (candidates) will build online identities and then relationships.  Resumes will be replaced with "Profiles".

The idea will be for the best employers to "attract" the best employees through effective communication of a culture that's supportive and nurturing for the long term.  I started telling my clients years ago that they need to spend more time and effort retaining existing employees. 

The workplace is changing.  Savvy employers are planning for the future, and how to identify and hire those employees who can help them succeed in the future.  Savvy employees are participating, communicating and growing . . . always.  Being content (and complacent) is not enough.  The world's changing, we all need to find a way to keep up with it.

Five Ways to Really Tick Off Your Employees

A recent blog by Fast Company expert blogger Roberta Matuson points out that a recent survey from Adecco Group North America, highlights the increased dissatisfaction workers in America have with their employers. According to the survey:

• 54% of employees plan to look for a new job as soon as the economy turns around.

• Sentiment is even stronger among younger workers. Of those ages 18-29, 71% say they are likely to    look for new jobs once the economy turns around.

Further, the blog goes on to say:

These numbers should not be shocking, as most of us know at least one person who will be jumping ship as soon as they can. Employees appear to be getting angrier everyday and their employers keep throwing more wood into the fire. If you really want to heat things up, then be sure to do the following:

1. Daily reminders - Remind employees how lucky they are to have a job. Do this on a daily basis. Tell them how fortunate they are to be receiving a paycheck. Never mind their check is 10% less than what they originally signed up for. Remember to include this reminder at your weekly meetings, when you take them out to lunch to thank them for their efforts, and at this year’s office party.

2. Freeze raises and bonuses – Jump on the bandwagon. Everyone else is doing it, so why shouldn’t you? Doesn’t matter if your profits are soaring or if your employees know you’ve had your best year ever. This is a great time to reign in costs, even if your costs are already in line.

3. Renege on your promises – You told people their reduction in pay would be temporary. However, you now view these changes as permanent. Of course you’ve decided not to tell anyone, until they ask.

4. Put a moratorium on promotions – Ask people to do the work of those who have been let go, and insist on holding back a title change and pay increase. Call this “self-development,” since you are giving people a wonderful opportunity to increase their skills. Something few employers seem to be doing.

5. Send out mixed messages – Tell your employees they are your most valuable asset. Then remind them that everyone is replaceable. Just to prove your point, be sure to replace a highly respected member of your team, with someone who is less experienced and less expensive.

There are several other common reasons for employee discontent.  I hear these on a daily basis from candidates at every level in an organization, whether in an agency, or from executives on the client side.  Those include:

6.  Budget for staff development, professional growth and industry training . . . personal growth doesn't happen without professional growth.  Both are essential.

7.  "Don't micro-manage me!"  You hired me, I know what I'm doing and I'm good at it, let me do it! 

8.  Consistent, open and honest communication between management and staff.  "Tell us the truth and we'll respond like adults who want to contribute and help!"

9.  There is no "goal setting" and consequently, no consistent reward (or even acknowledgment of a job well done) system.  "Performance based" bonus programs are arbitrary and inconsistently distributed.

I could go on . . . you get the drift.  I also bet that you've experienced several of these situations in your career, if they don't exist right now.  The thing is most of these issues are an easy "fix".  It doesn't necessarily need to be expensive.  It comes down to a common sense approach to treating employees with respect and then doing what you say you're going to do.  It's really pretty simple.  It's also pretty inexpensive compared to having to replace the exodus of workers who will leave, as soon as they possibly can!

Who's Hiring? What's Hot? Marketing Hiring Trends . . .

I've had three candidates this week ask me for my opinion on the "hiring environment", regionally.  After answering each of those inquiries individually, I've just received a fourth and decided to respond here.  The questions most frequently asked are:  Are many (any) places hiring?  What types of jobs are being hired for right now?   I'll take them one at a time.

Whether or not "many" places are hiring is relative.  Companies and agencies are hiring, but obviously on a very conservative, selective and thoughtful basis.  Both agencies and corporations have opportunities.  It's safe to say that employers are looking for absolutely top-notch candidates.  Every company is running as "lean" as they can possibly afford to.  Any new hire has to be able to add significant value, if not generate revenue, right away.

The hiring environment is improving.  I've seen improvement in activity since the middle of the summer.  Activity is continuing to increase.  Industry wide, temporary and/or contract positions are seeing more action, which is a recognized precursor to hiring for permanent positions.  If a company loses a valuable employee through attrition, that position might have to be replaced simply because staffing is so "lean" that there is nobody else who will have the time to be able to also do the work of the lost employee. 

There are agencies and corporations who are taking this opportunity to aggressively hire new employees.  They're looking to take advantage of top notch talent to grow for the future, wanting to be perfectly positioned when the economy starts really humming again.  Many are replacing existing employees with new employees who they feel can better deal with the marketing communications evolution into the future.  (If you're not enhancing your own knowledge and skill set, you're quickly becoming obsolete.)  Companies are "top-grading" from the Board level to entry level.  No company can afford to have someone who is not contributing and adding value.  If they're (you're) not, they (you) could be gone.

In both corporations and agencies, new business development is a sought after skill set.  People who have consistently demonstrated success at sales are in demand . . . and probably always will be.  People who understand how to go beyond what's expected to add value, wear multiple hats, and contribute beyond their literal job description . . . top performers (at every level) . . . will always have opportunities.

It's not surprising that new media, online marketing, electronic communications . . . call it what you will, is changing rapidly.  Almost every position I've recruited for over the past year, on both the client and agency side, had a new media component to it.  Whether a VP of Marketing, or a Group Account Director, fluency in online marketing (as evidenced by participation) is becoming an essential component of every marketing functional position.  It's a very good idea to have a professional presence online.

My suggestion is to always be ready for whatever the future may hold.  You should have all appropriate materials (resume, portfolio, online profiles/presence) updated and ready to go.  The economy is not necessarily out of the woods yet, and it's likely that unemployment is going to continue to increase.  You need to be ready to start a job search should you find yourself laid off.  You should be ready to respond to a new opportunity, professionally and promptly. 

Start positioning yourself as a thought leader and top performer in whatever your function is.  Be proactive!

Empowering Employees

After my most recent post on team and organizational leadership, I started thinking about employees' most popular complaints about their employers.  There's an eerie similarity to most employees issues with their existing employer.  Yesterday I was going to write a blog on those almost universal issues employees have.  These are the issues most important to employee retention.

Before I had a chance to compose that blog posting, I received an email from a candidate I've worked with over the past couple of years.  His admitted "rant" and obvious passion do a wonderful job of saying many of the things I'm going to write about.  This gentleman is a new media Creative Director and Producer, with expertise in online communication and story telling by utilizing a myriad of various media.  Any employee can substitute their professional function(s) for some of these specifics and I bet they can wholeheartedly empathize.

The candidate wrote to me:

"I want an executive level producer position that will allow me to work on fun, high level, CREATIVE projects that include audio, video, web, stage events, etc.  Anything entertainment related! Projects that mean something!

I want to work for a company that RESPECTS their employees and APPRECIATES their talent and years of experience.

I want a position that will allow me to grow professionally, as well as help grow and build the company, with the possibility of ownership or stock.

I DO NOT want to write code any more!  I am more than happy to work with developers at laying out how something should function, but I do not want to be the guy to code it.

I DO NOT want to work for a company or clients that EXPECT you to find freelancers and talent that will work for FREE!  I respect the time and talents of people I work with and I want the company I work for to do the same.

I want a position that pays at least $75k per year plus benefits.  I would consider taking less for the right position, but there would have to be a potential up side down the road.

I do not care if the position is in St. Louis or out of state.  I am open to the possibility of relocating for the right position and the right salary and benefits.

I know that was a rant, but that is what I am looking for.  It may not be out there, but at this stage of the game, that is what I need.

I am attaching my promo kit as a refresher.  I look forward to your feedback be it positive or a smack in the head.

Thanks my friend."

I smiled when I read this, in appreciation of his honesty, energy and frustration.  It seems so simple to give an experienced, competent professional the support they need to do their job . . . then let them do it! It's remarkable how infrequently that happens.

So tell me, how many of you can empathize with his frustration?  Care to share some frustrations of your own?

Empowering Leadership Leads To Success

I've been paying more attention to Twitter lately, investigating how I can use the tool to add value to our clients and candidates.  I invite you to follow me at HeadhunterBob.

I received a tweet yesterday from a fellow member of the Washington Universtity Alumni Association.  That tweet was "What does it take to be a great leader?" and referenced a recent interview in the New York Times.  That article is an interview with Shantanu Narayen, President and Chief Executive of Adobe Systems.  The article was written by Adam Bryant for his "Corner Office" column.

I was hooked when I read Mr. Narayen's response to the first question, "What's the most important leadership lesson you've learned?"

 "I think two leadership lessons really stand out for me. He forced me to think about doing things that I did not think were possible. Challenging individuals by setting goals and then letting them use their ingenuity to accomplish them is something that I hope I can pass on as part of my leadership style. If you set a common vision and then get really scary-smart people, they do things that amaze you.

The other aspect of being a good manager has always been getting gratification from what others do, because the higher you get in management, frankly, the less you do yourself."

I think this article is a wonderful comment on managers letting their people work. Give them the opportunity and support, and let 'em go!  I'm continually hearing from candidates that their employer, or manager just wants to micro-manage, or in some other way hold them back.  Employees aren't given the freedom, opportunity or support to show what they can really contribute.  It's frustrating for employees, leading to frustrated employers, who then feel a need to manage more.  It's that vicious, never ending circle of frustration that compels employees to want to find a better place to work.

I encourage you to take a moment to read the entire article.  It has simple, yet profound insights for company owners, executives and employees alike.  You can find the online version of the Times article here.

Succession Planning or Getting Out Alive?

St. Louis is blessed to have a myriad of small to medium sized firms, many of which are doing absolutely outstanding work.  Some of them are creating "properties" beyond normal marketing communications, which will turn into "assets" and reap absolutely sensational sales and profit.  There's an exciting diversity of work being delivered by a wildly diverse group of organizations.  Some of those are more organized, than others.

Many of the principals and owners in this group of agencies (for lack of a better term) are in their 50s, some staring at 60 or more. (I should point out that the same thing is happening with privately held companies, and the phenomenon is not limited to St. Louis).  Some of those principals have done an admirable job of planning for the succession of leadership in their shops, many more have not.  It's surprising to me. 

The benefits of succession planning include the ability to plan for stability and growth into the future . . . beyond the working years of the existing leadership.  That is of course to say that properly executed means the existing principal can continue their income beyond their working years.  The additional benefit of succession planning is the retention of existing employees and the ongoing ability to recruit new ones.

Employees worry when there's no clear plan for succession.  They're not stupid . . . they "get it".  From the employee perspective, lack of succession means lack of stability which inevitably leads to a lack of long term security for them.  The obvious and logical next step for those employees is to actively be keeping their eyes open for new opportunities as they become available.

I know of cases where the only thing keeping existing employees (and I mean productive and successful employees) where they are is the lack of alternative opportunities.  Even though I make a living recruiting premier performers to other career opportunities, I'm continually preaching to my clients that they need to focus on retention.  If they have great employees, they need to keep them, period!

There are loads of reasons owners don't focus more time on retention, they're "too busy", it's too soon, they believe their value to be such that it can't be replaced, they can't "let go", or even worse they don't care, or believe that they're the ones who're actually going to get out of this alive!

There are probably others, but none of them work.  They're all excuses.  If an owner has a viable business and is not focusing how how they can keep that business stable in the longer term, one has to wonder why.

Marketing Layoffs, "Topgrading" and Recruiting

It’s obvious that the economic recession has been tremendous impact on individual careers as well as the marketing and advertising community locally, nationally and globally over the past year.  There have been unprecedented job losses on both the agency and client side. 

According to BNET Advertising, an industry blog written by Jim Edwards, "at least 32,445 jobs have been lost recently. That total is based on a Bureau of Labor Statistics report as summarized by Ad Age, updated with more recent individual reports tracked by BNET. The true total may be as high as 35,800, however.  BNET Advertising does a rather amazing job of specifically keeping track of which agencies have lost positions."  You can find out more at the "BNET Ad Agency Layoff Counter".

As a marketing headhunter, there's another view of this which is coming into focus.  Fellow recruiter colleagues report the same thing that I'm seeing.  Our clients are taking advantage of this enconomic situation to re-organize, re-tool and refine and generally "upgrade" their staffs for this new era in advertising and marketing communications.

The skill sets that were the foundation for success over the last 20 years are no longer the skill sets marketing and communication employers are looking for, on either the client or agency side.  Reaching out to a brand's stakeholders and communicating with them has become more difficult as media coninues changing and becoming more diverse.  This seems obivous, but think of the number of companies who've "had no turnover" over the past years (decades).  Without very self motivated and savvy employees, that could mean those companies are using employees who no longer "get it", or are not capable of contributing at the high level they once did.

What the statistics about layoffs aren't indicating is the number of new hires with different skillsets companies are making.  Clients are replacing employees with professionals more appropriate for this new era.  CEOs are "topgrading" their Boards and Clients their brand leadership.  The Bible on topgrading is a book by Bradford Smart called, "Topgrading - how Leading Companies Win by Hiring, Coaching and Keeping the Best People".

This whole marketing topgrading effort does not necessarily result in one job loss and one hire.  There's no direct correlation and little doubt that the net result is a fewer number of jobs.  The net result by definition is also that those fewer number of people are much better positioned to contribute mightily to the marketing resource or brand as well as their clients or other constituents. 

Retained recruiters are charged with topgrading at every hire, all the time.  Cients don't pay fees unless they believe that the recruiter is delivering candidates that the client cannont identify, recruit and hire themselves.  Topgrading and retained recruiting go hand in hand.  Over the past year, it's also been one of the reasons some recruiters have been able to stay in business (with so few apparent new hire opportunities).  Astute and agressive advertising and marketing communications firms are looking at now as the time to build the staff that can (and will) propel them into the future.

Topgrading for the recovery has been going on virtually since this recession started.  Every marketer at every level, whether CMOs or those just getting started in the business, must make the effort to stay abreast of what's going on in the market, and continually educate themselves and refine their skills to consistently be able to powerfully contribute.

Layoffs and still more layoffs . . .

It’s been another difficult week in the advertising, marketing and graphic design community.  There are multiple agencies, marketing resources and design firms being forced to reduce their staffs.  I’m aware of Groove, ProWolfe Partners, Rodgers Townsend and Group360.  It’s possible (sadly, likely) there are others.

I know that every advertising and marketing President, CEO, COO, CFO (and their company leaders), along with their clients are all trying to figure out what’s next.  Clients are cutting back projects., or canceling them altogether.  Clients are asking agencies to do the same amount of work, for less money. 

The unfortunate but real result of that is that employees have to work harder for the same amount of pay . . . and they will, because they’re thankful that they’re still among the ranks of the employed.  If there’s any internal grumbling going on because of the additional work, I suggest they read my thoughts on “becoming indispensible . . . rather than vulnerable”.

One of the most unfortunate results of all the layoffs everywhere is that companies are having to cut workers who they value highly, but simply can no longer afford.  It’s one of the cold realities of business that under the prevailing circumstances, staffs are necessarily shrinking.  Employers are in some cases cutting those people who they were training for additional future responsibility.  They’re cutting employees that they worked hard and spent money to find and then train.  I know this, because for the first time people I’ve recruited into agencies, have had to be laid off.

I will say that I’ve never seen employers making such an effort to provide the most fair severance packages they possibly can.  Severance packages historically rarely existed for employees under Director level.  Not only am I seeing Company principals doing everything they possibly can from a strict monetary perspective, but they’re making an effort to help in other ways too (in every way they can). 

I know examples of employers letting the laid off employee continue to use the Company’s laptop, so there’s a possibility of generating freelance income.  I know that employers are working deals to help the laid off employee purchase the Blackberry they’ve been using at a reduced cost.  Employers are making sure that art files or other relevant (and non-proprietary) information is available for the creation of portfolios.  Employers are trying to refer those laid off employees to other sources of possible employment . . . my website for one (I’ve heard from several and I appreciate the trust that indicates) and/or outsourcing firms for advice and support.  They are willingly providing enthusiastic and in some cases, emotional recommendations of the person they just had to fire.

The Employee feels terrible.  Employers feel terrible.   The spouses and families of the employee feel terrible.  The reality is there is no choice.  Revenue gets reduced and responsible employers have to reduce staffing levels for the security of their other employees and the company itself.

This is a brutal responsibility that quickly reduces the “glamour” of owning a business to the grim reality of having to take someone’s livelihood away from them.  You’ve all heard “it’s business . . ." and it is.  Sadly.

Welcome Your New Employee!

As someone who has a very narrow niche business as a marketing recruiter, I'm amazed at how frequently employers do not make more of an effort to welcome a new employee and make sure they get off to a successful start.  I'm not just talking about my clients, who I help welcome the employee, but companies I know of.  I hear stories all the time . . .

The idea is to make the new employee feel welcome and to give them the support and attention they need to be successful as quickly as possible.  I'm talking about the very basics: a desk or office with everything needed to get off on the right foot, like office supplies, a computer (with all the appropriate software already loaded, email adddress set up, etc.), a phone (with the new name on the phone list, and if appropriate, the receptionist knowing the new employee's name, etc.).  This seems so simple and like such common sense, yet it's just remarkable how often it's not addressed.  How about adding some corporate stuff like a t-shirt, hat or even coffee mug, to help the new person feel more a part of the team.

It's a great idea to have a co-worker of the new employee designated as their go-to person for help.  That co-worker can introduce them around, tell them how everything works, answer those simple questions that are sometimes so difficult to find the answers to.  Make sure the new employee has someone to go to lunch with every day the first week.  Think about how you can more quickly welcome them and make them feel a part of the team.  It's a process.

I find it interesting that the Ritz Carlton balances two important messages in their orientation program: "You are now part of an elite, best-in-class organization," and "We're lucky to have you."

Gary Kelly, CEO of Southwest Airlines on onboarding:  “If you want them to stay, if you want them to become engaged, you need to make sure you do the "feeling" part of the process, and you do that by showing them how they will make a difference, giving them examples of how their fellow employees make a difference, making them feel welcome as with our Sponsor a New Hire program. It's those kinds of things that lead to not just better retention, but a more inspired workforce."

An inspired workforce . . . not just a workforce.  Thinking about onboarding and how you treat that hard to find employee in the beginning could be indicative of how quickly and substantially that employee will perform for you, and how long you might be able to retain them.

I'm interested in hearing your story of how a new employer treated you well, or how the most simple things were ignored.

Agencies and Brands, Principles and People

A couple of weeks ago, I made the decision to attend an all day conference presented by AAAA, "What Separates the Best from the Rest? . . . What the Best Agencies Do Differently".  Essentially a day spent hearing about the best practices of agencies in the U.S., including operational, creative, account and business growth related issues.  Phenomenal . . . I might add that the same principles that were applied to agencies can certainly be applied to brands and/or companies.

I was impressed with Tim William's presentation, experience and obvious grasp of the subject.  Tim is the President of the Ignition Consulting Group in NYC.

I'm so glad I decided to spend the (rather significant) amount of money to participate.  About an hour into it, I knew that I'd made the right decision.  It was interesting to see what agencies attended and which didn't.  If I could list the attendees, I would because I was impressed that they would make the commitment of one full day to improve (or at least hear about) better ways of doing things.  A few agencies sent multiple representatives.

I mention all this, because I was just going through my notes.  I'm going to share some thoughts here and probably more at another time.  I hope you find some of these notions as interesting as I did.  There was so much substance that I'm hoping there is benefit in taking some ideas out of context.

“A big problem with working at ad agencies is that management is too often unwilling to stand up for their own people if it means taking on the client.”  74% of Euro RSCG (global behemoth, check out their site's opening animation . . . ) agreed with that principle.  What do you think?  How about your agency or employer?

"The basic principle of what separates the best from the rest is Owners know that there’s something more important than making money.  It's what they do with that knowledge that separates the best from the rest."

As Bill Bernbach said, “If you stand for something, you will always find some people for you and some against you.”  “If you stand for nothing, you will have nobody for you and nobody against you”   The point obviously being that you can't be everything to everybody!  The world’s strongest brands are polarizing.  People have feelings, either for or against them, but people are engaged in them.

Appealing to everybody is not a strategy . . .  Strategy is a series of trade-offs.  What are you willing to be good at?

Some examples of icons that have probably gotten to their position of leadership because of their fanatic adherence to their own guiding principles.  For example, design hero Bruce Mau's Manifesto . . . or Strawberry Frog's "Frogisms" (at the home page click "about" > "frog versus dinosaur").  There are others.  Too few organizations have sincere principles that guide their activity.

These companies understand that commitment to themselves and how they conduct business is paramount.  As long as they stay true to their principles, good things happen.  Seems like a simple idea.  You have to wonder why more organizations don't have the belief or strength to do it too.

It is the foundation upon which clients are won and the foundation upon which employees are inspired, recruited and retained.