There is a phenomenon that doesn’t get talked about much publicly, but it’s something that in-the-trenches HR folks deal with fairly regularly. While we want to “rise up” and think about big picture, have a strategic viewpoint, and assume the best, there are always going to be friction points that hold us back. It’s a part of the whole “working with people” thing. :-) Today I want to talk through a few recent questions I have received around the impact of social media in the workplace.
We recently hired someone, but after he started I found out that he is posting offensive content to his Instagram page. Should we fire him? This is his first real job after college.
In some cases, it’s perfectly acceptable to terminate someone for what they are sharing online, especially if it would be harmful for your company if it were to come into the public eye. In this case, I’d take a coaching approach initially. The guy’s in his first job and might not realize the implications of what he is sharing. Take him aside, explain why he should NOT be sharing offensive things on a public social media site, and ask him to make it private and/or stop. Keep reading…
This post brought to you by 3M. The content and opinions expressed below are that of upstartHR.
When you work in HR, you have access to a substantial amount of sensitive business data. It’s just the nature of what we do. But technology is continuously improving to help keep our data safe, and I want to talk about one new option that is making that possible.
In the age of cybersecurity, hackers, data breaches, and other web-based threats, it’s easy to forget that the simplest security lapses often involve a human element. Keep reading…
Over the past few weeks as we have explored various areas of the restaurant industry, including career opportunities, compensation, and more. Today I want to direct your attention to the power of the industry both in providing initial job opportunities as well as long-term prospects. Here are a few of the key statistics from the infographic below:
The restaurant industry provides a great start for younger workers. 92% of restaurant employees younger than 18 say their first job was in the restaurant industry.
Many of these employees stay in the industry for a long time. Restaurant employees ages 25- to 34-years old have a median tenure of 10 years in the industry, while employees ages 35-to-44-years have a median tenure of 19 years.
Many who venture out of the industry return: 60% of restaurant industry employees 35 and older have returned to the industry after stints in other fields.
This is an industry that allows employees time to pursue higher education. 64% of bartenders, 49% of restaurant managers and 41% of servers are currently attending a four-year college or university.
The term “average” is used commonly, but we sometimes forget what it means. The “average” score is made up of the highest and lowest scores. The “average” experience is made up of the best and worst experiences. And the “average” HR person is a mix of the best, most engaged and innovative professionals out there and the laziest, most unhelpful people you’ll meet.
I have experience administering health benefits for an employee population, both local and dispersed, so I understand the intricacies of putting that together and taking care of employees. I also am acutely aware of the problems and the need to communicate carefully and kindly with employees who are having trouble with their benefits.
In case you were not aware, the number one reason of bankruptcy in the US is due to medical emergencies–not having the coverage in place or having problems with it could be catastrophic for a family to deal with. That is why I am fanatical about having this taken care of appropriately for the employees in my care.
I just realized that it has been two years since I published my first PHR/SPHR prep course. Time flies! Over that time I have had dozens of students use the course to help them prepare for, and pass, the certification exam.
If you are considering the PHR/SPHR and are having trouble staying motivated, keeping on track, and juggling all the terms and theories, then this could be the answer you’re looking for. I provide lessons via email and help you to stay on top of your studies with regular updates and helpful content to tie your learning back into your day job. Because in the end, it’s not just about getting certified, it’s about being a better HR pro.
If you’re interested in getting this for yourself or someone else, I have a discount running until Friday night for 20+% off. Coupon code is “GIVETHANKS” for those who want to take advantage of this. Here’s the link to the course.
If you are less than 12 weeks from your exam date, please email me and we can speed up the materials to give you time to finish.
Thanks, everyone, for your support! I’ll be sharing more fun HR/recruiting content very soon. Enjoy your holiday!
Last week I was talking with some folks about using compensation to drive employee behavior, and it occurred to me that I have never shared anything about that topic here. While I might not be the world’s foremost expert on the topic, I do have a few basic principles that I have relied on over time. The thing that I would like to note is that these apply to organizations of virtually any size. Even small companies (I’m looking at you, Mr/Ms HR Manager of a company with less than 250 employees) can incorporate these elements into their compensation planning without too much stress.
The other caveat I want to mention up front: money is not always a motivator for everyone. We want to instantly think that we can drive performance or discourage behaviors through monetary incentives. While that may be the case at times, it’s also worth noting that we humans are unpredictable creatures. That’s why motivation discussions are based on theory, not law. We have laws of physics. We have theories of motivation. Keep that in mind. If you implement something we talk about today and it doesn’t work, feel free to change it. It’s about finding what works for your organization and your people.
Everyone Needs a Variable Element
When it comes to compensation we have two basic elements: base pay and variable pay. Base pay is what someone earns as a condition of their employment. The fun comes when we start talking about variable pay, its elements, and how to use those pieces to really drive the behaviors we’re looking for in the workplace.
The most common area we see this in is for sales professionals. Base+Commission is the longstanding model, and it’s fairly easy to understand. What’s more difficult is figuring out how that sort of structure applies to other professionals, such as engineers, accountants, clerical staff, or even HR. How can you implement that?
A Few Types of Variable Pay
So, what types of variable pay might you commonly see? Here are a few:
Each of these types can be combined and/or configured in a wide variety of ways to target specific jobs, types of workers, and even company culture. Test, measure, and revise as necessary.
How to Afford It
One of the first hurdles I always face when it comes to getting management on board with a compensation change is pretty obvious:
Can we afford it?
The good thing about incentive compensation that is tied to performance metrics like sales or profitability is yes, you can afford it. Here’s a good illustration for how that works.
Imagine that your friend has a lemonade stand valued at $5,000 that you want to purchase. You could go out and get a loan for $5,000 to buy it, but that increases your risk (what if you don’t have the cash flow to make the payments?) and jeopardizes the future operation of the business. The smarter, and less risky, way is to negotiate a purchase price that comes from periodic payments of net profits. If your net profit runs $1,000 per year, you’ll pay for the business over five years, but you are not at risk if there is a downturn in the market–it just takes longer for the final payoff.
Variable compensation tied to business performance is the same thing. You are only on the hook for paying out when the business performance is good enough to cover the increased compensation costs.
This is identical to the fixed/variable cost discussion as it pertains to economics as well. Your fixed costs (base pay) will be there always. The variable costs/compensation will only be applicable if certain conditions are met. That, my friends, is how you afford it. You structure the incentives so that the growth in revenue/sales/profit/productivity/whatever-you-choose is enough to cover the cost of the incentive compensation.
This Hinges on Performance
If you haven’t already figured it out, this setup is going to require something that might not already be in place. We have to be able to properly measure performance for our staff in order to compensate them appropriately. If you’re not willing to measure performance and hold people accountable for it, then you might as well scrap this whole incentive compensation thing before you even start.
But if you are willing, then you need to try to find some objective metrics to tie into the jobs you’re trying to create incentives for. That’s a whole other discussion for another day, but in the initial planning and setup you’ll need to determine those performance objectives, because those are the basis for who earns variable compensation, how much they earn, when they earn it, etc. This is important, because you have to be offering incentives for the right thing.
It’s easy to focus on rewarding people for following the process instead of rewarding them for actually achieving the desired results. Be careful about that common trap.
If you can shorten the distance so employees have more control and a shorter reaction time, the rewards will be more meaningful.
Money Isn’t Everything
As I wrote about a while back, there are some great things that motivate people at work other than money. Sometimes it’s easier to assume money will work in all cases, but it’s often a more complex arrangement of details that ultimately drives people to do (or not do) things at work.
Do you currently use incentive based pay? How is it working for you? What types of positions do you use it for?
Think about it. If I’m training you on how to change a bicycle tire and then I set you in front of a bus, that training wasn’t very useful. It didn’t mirror real life. It wasn’t realistic.
If I train you on how to change a bus tire indoors on a smooth surface with all of the proper tools at hand, you’ll be more likely to be successful if you have to put that skill into practice.
However, if I ultimately train you to change that tire complete with all of the environmental factors (outdoors, possibly on a road shoulder surface, angry customers staring down at your back, etc.) in the mix, there’s a greater chance of success overall.
As you might imagine, this applies in the workplace as well. In the short video below I talk about simulating real life in both training and recruiting/selection. Subscribers click through to view.
If you’d like to read the rest of the article and learn three questions to ask yourself about your training as well as a shocking statistic behind aircraft pilot training, you can do so at the Brandon Hall Group blog.