The Greatest Revenue Opportunity

 

Nate Dvorak and Ryan Pendell at Gallup published a paper that claims selecting top-talent managers will improve revenue per employee by 27%. In addition, selecting top-talent employees will add another 6% to revenue per employee; for a net gain of 33%. When selecting a manager, the most telling criteria are the results achieved in previous assignments. But, where can you probe during an interview to verify what’s listed on the resume? These are my top three attributes to look for while selecting managers.

Developing Relationships:   Managers need to recruit employees to be on their team and often need to get them interested in doing something they might not be inclined to do. Positive body language and the ability to engage with employees to understand their strengths are good indicators for a top management candidate. A history of keeping trusting relationships intact during stressful times and moments of disagreement is also an important indicator.

Critical Thinking:  I believe that this is the most exercised skill for effective managers. This skill is first used to align the direction and goals of the department to those of the greater organization. Then critical thinking is used to break projects down to work assignments and then tasks and the skills required to complete the task.  An effective interview strategy might be to ask for an example of a key project or an order was completed on-time. Or, ask for an example of project where the delegation strategy accounted for employee strengths and weaknesses.

A Manageable Ego:  There are times a manager needs to be loud and proud with ego on full display and times when selflessness and a muted ego are more appropriate. This is a delicate balancing act between self-confidence and building the confidence of others.  Managers that control their ego effectively will be perceived as both innovative and approachable by employees. An interview strategy might be to ask for examples of a time when their coaching skills developed an employee to produce significantly better results.

The Gotcha: To select and hire top-talent managers, you need to be a top-talent, too. All the skills required to be a top manager can be learned if you are willing to practice.  I am teaching a course called “Managing for Better Engagement and Results” beginning September 17th that is a group experience tuned to give instruction and opportunities to practice key skills to become that top talent. If you want more information, follow this link.

 

Secret to Retaining Young Employees

When the economy heats up, the question of “When will business pick up again?” is quickly replaced with “Where do I find talent?” A number of high-skill industries are struggling with finding younger employees to succeed aging Baby Boomers.  Before companies plan glitzy recruiting campaigns, it is best to make sure their house is in order. Jim Clifton of Gallop wrote, “The single biggest decision you make in your job–bigger than all the rest–is who you name manager. When you name the wrong person manager, nothing fixes that bad decision. Not compensation, not benefits–nothing.” The owner and the management team create the vibe that will attract and retain top performers.

Managers are tasked with bringing positive change to the organization. This is tricky when societal values and consumer preferences are changing at a blinding rate.  Yet, companies too often overlook investment in developing management skill and give a pass to ineffective managers. I believe that managers need to be adept in the following roles:

 

Manager as Coach At a seminar recently, I made the assertion that managers need coaching skills to develop soft skills in sales and management employees. I was surprised to get push back from a participant. There was a concern that if the manager developed close relationships with employees, they might lose objectivity in assessing performance. In my world, close relationships are indeed what we are looking for.  To be a coach, a manager must have clear understanding of the job roles, communicate the desired results for each role, and possess the ability to teach employees required skills to perform the job. If a manager can shift accountability for job performance to the employee, the employee will have a greater sense of achievement and development. Retention of young employees depends on a perception that the company is committed to their development.

Manager as Motivator A successful manager keeps an eye not only on what motivates each employee, but also on what demotivates. Managers need to be skillful at building a level of rapport that permits them to ask appropriate questions that reveal why they came to work for the company and what draws them to perform.  Organizing work assignments and offering recognition that touches those motivators will gain peak performance.

Manager as Leader Whether you are a CEO or first line supervisor, it is vital to have a vision and sense of mission for your organization. The younger generation has little patience with companies that cannot describe a brighter future that will provide opportunities for employees. Positive management values that will build trust and cooperation will shape culture and support the mission.  A question that every business leader should reflect on is whether their managers value, or even like, their employees. Younger workers prefer collaborative work environments that respect their thoughts on systems and work rules. Industries that have been stereotyped as having hierarchical authority and repetitive work assignments need to consider undertaking cultural change.

Manager as Gatekeeper Businesses today need an aggressive, strategic hiring strategy. Managers need to make hiring decisions based on character and skills without compromise. Interviews need to pose questions that discover how the candidate’s values and mission align with the company. A common interview question is “Where do you want to be in five years?”  Strong candidates will have a clear answer to this question. The question for you is, “Can you get them there?”

Donald Trump’s Wisdom on Employee Engagement

D TrumpFor months, pundits and experts have been predicting the demise of the Trump campaign. As we start the Republican primary season, Donald’s campaign is stronger than ever. While theories abound regarding the Trump success, it is clear that an angry, disassociated electorate is demanding wholesale change. Business executives would also be wise to observe how Mr. Trump has ridden this wave of discontent.

Anatomy of Disengagement Last month I discussed how traumatized employees can disrupt and derail an organization with active disengagement. Business restructuring, extended periods of unemployment, underemployment, and the increasing number of jobs offering partial employment are all sources of stress for American workers. Add the inability of Federal government to act, mindless “tax and spend” State government policies, and the threat of violent crime and domestic terrorism, and we have an electorate ready to toss institutional conventions and embrace radical change promised by Mr. Trump, Cruz, and Sanders.  Mr. Bush, national political parties, the news media, and other fading institutions are being ignored pushed aside.

On Politico.com, Matthew MacWilliams presented research that concluded the most dominant trait of Trump supporters is an inclination toward authoritarianism. People with this trait are obedient to authority, drawn to strong leaders, and react aggressively to outsiders. MacWilliams estimates that 49% of Republican voters have this trait. Whether through profound wisdom or sheer luck, Donald Trump has done an outstanding job resonating with this voting bloc and it is becoming increasingly clear that this group has little interest in candidates tied to past government dysfunction and the institutions that have supported them.  Will skipping this week’s debate over a disagreement with a Fox journalist harm his popularity? Not likely.

Readers familiar with style assessments, like DISC or Meyers-Briggs, might see an analog in the business world. Business organizations have a group of decisive, results-oriented executives and a much larger group of detail-oriented workers that build and deliver the products of the organization. The latter group prefers consistency and is usually loyal to the organization. When this group accumulates enough traumas and stress that they disengage, bad stuff happens. In addition to deteriorating productivity, key employees can quit in mass, executives get fired, and boards get dismissed.

Recovering Engagement Restoring an organization’s trust in leadership requires time and commitment on the part of the leaders. There are three general steps to recovery: emotional connection with the disengaged, validation of their worth and role in the organization, and a clear vision for how the organization will move forward.

While Mr. Trump’s comments about Muslim immigration, the “Mexican wall,” and labeling some candidates as low-energy have mortified much of the country and global community, they have struck a chord with his target group and demonstrated an understanding of their frustration and insecurities. I believe Establishment candidates’ difficulty in getting traction with their campaigns is rooted in a perception that they caused workers’ distress and their inability to establish an emotional connection.  Without that connection, their candidacies are going nowhere. In the book Critical Conversations – Tools for Talking When Stakes Are High, the authors write of the importance of an executive publicly owning their role in creating a conflict or crisis and hearing workers’ upset before any discussion on how to move beyond the problem proceeds.  The goal of the conversation is for workers to feel their worth to the organization has been revalidated.

Many executives stumble by failing to articulate a vision for how the organization will move forward. Mr. Trump has yet to address such a vision and could stumble, as well. The vision requires enough detail and thoughtfulness that an audience of detail-oriented people can understand the plan and their role in it.

Watch Out for New Paradigms  Many of the articles I have read recently about Mr. Trump’s success share the idea that Mr. Trump’s campaign is revolutionary and a harbinger of what is to come in American politics. David Von Drehle, in the January 7, 2016 edition of Time, presents the term “disinter-mediation.” Mr. Trump entered politics which an established brand highlighting an aggressive, successful businessman. He has bypassed the national party, big-money PACs, and the news media to take his message directly to the people over social media. Using Twitter, @realDonaldTrump gives access to people to ask questions and feel closer to the candidate without mediation from traditional power centers.

There are changes afoot in the business world that will impact employee engagement. America has long celebrated the “hands-on” manager who remains involved with vocational activities while juggling managerial responsibilities. The increasingly critical scrutiny that all leaders are facing will drive managers to focus more on management. The ever-tightening labor market will give talented workers increased leverage to demand that managers focus more on leadership, communication, and employee development. Disappointment will result in turnover.

One Strategy that Will Improve Profitability, Quality, Healthcare Costs…

Gallup ImageWhile perusing a digest on LinkedIn, I came across a link to a Gallup report entitled “State of the American Workplace 2013” (http://bit.ly/1RQ5Bpa to register and download.) This is an informative report that establishes a quantitative value for employee engagement. When measuring employee engagement, the companies in the top quartile reported 22% more profit, 41% fewer defects, and significantly lower healthcare costs than the bottom quartile. Of America’s roughly 100 million workers, 30 million are engaged, 50 million are not engaged, and 20 million are actively disengaged. Actively disengaged workers sabotage, obstruct, and steal to act out their unhappiness and cost the US economy $450 to $550 billion annually. Of the industry sectors measured, manufacturing has one of the lowest levels of engagement, customer service is the job function with the lowest engagement, and Connecticut has one of the highest levels of actively disengaged employees. The bottom line is that an unpopular supervisor may be costing you a lot more than you think.

I encourage all my clients to manage engagement. Per Gallup, engaged employees create most all innovations, win most new customers, and provide the most entrepreneurial energy.  So as we prepare to roll into a new year, here are my top suggestions for improving engagement:

Tie Employee Goals to Vision and Strategy: First of all, make sure you have a vision and strategy that employees can read and understand. All employees realize fulfillment by feeling connected to a mission that is valued by their community. Sense of mission is the most fundamental and necessary element of engagement.

Managers that Motivate and Measure:

It used to be common wisdom to treat all employees equally. Today, great managers recognize the diversity of their team and tailor how they approach team members to satisfy individual engagement needs. For some, a sense of belonging may be essential; for others it might be mission. The ability to connect with employees needs to be balanced, however, with an objective accounting of results and helpful feedback.

Flexible Work Rules:  Employers that accommodate employees’ needs outside of work grow employee engagement. The Gallup data shows that remote workers had higher engagement and worked more hours than in-house employees. Of note, employees who were permitted to work less than 20% of their time remotely had significantly higher engagement scores than both the in-house and 100%-remote employees.

Invest in Employee Development: Anyone under the age of 50 gauges their loyalty to an employer by the employer’s willingness to create opportunity and develop careers.  Millennials comprise over 30% of the workforce today and perceived lack of advancement opportunities is the #1 reason for changing jobs.

This is just a sampling of ideas. Please share any tactics that have worked for you or examples of employers who are great to work for.

Wish you every success in the new year!

 

Want to Hire Talent? Here’s 3 Ways to Fail.

Despite all the bad news that pours in over the air waves, I continue to find evidence that our economy is strengthening. The most striking evidence is the number of business owners that are looking to increase the size of their workforce. It’s also striking that the desire to hire is almost immediately followed by the complaint that you just cannot find good talent.

I’m old enough to remember the malaise the US fell into after the OPEC oil embargo and the taking of US hostages in Iran. It seems that the 2008 recession and the divisive politics that followed have had the same chilling effect. Changing the conversation from Carter’s “what to do about inflation” to Reagan’s “we are a great nation and it’s time to show it” was all it took to get the economy in high gear. Focusing positivity on hiring strategies will also bring improved results. Here are three common attitudes that can derail your hiring initiative and business:

“I need to find talent” Too often, I hear people say they need to find good talent. My response is always, “Do you want to find good talent or attract it?” If you find good talent, there’s no guarantee they’ll accept the job or not leave after a few months. Whether you’re “finding” or “attracting,” you know employees of high skill and character are in short supply. Successful companies create two or three viable reasons for why someone would want to work for them. In addition, they have a compelling story for where their business is going.

“I’ve have had problems with younger employees, so I’ll keep looking for older ones” Never mind that it’s against the law, it’s just bad business. My career has spanned…umm…several decades and I cannot remember one time that a company did not draw on the fresh ideas of youth to carry the business forward. Younger employees will bring in innovation and ideas that will position your company for the future. It is worth tackling the challenge of adapting your company culture to embrace younger employees’ work preferences.

“If it was good enough for me, it’s good enough for them” I read an article last week that half of Millennials surveyed were dissatisfied with how they were “on-boarded” at their company. For those not familiar, on-boarding refers to initial employee training and orientation. Younger employees expect companies to be more socially responsible and motivated to build relationships with their employees. A relationship includes some empathy for the reality that employees face today and a willingness to take the time to explain what is expected of them and how they will be developed to meet those expectations. Employers wanting a simple labor rental agreement will have difficulty.

Please share your thoughts on hiring. And as always, if you have questions I’m glad to help.

Avoid Costly Training Mistakes

A survey by The Economist of over 1100 Millennial employees and 150 managers revealed that 91% of Millennials felt they would spend less than three years in a job before moving on.  Noted author, David Burstein, wrote that it is possible that the Millennial generation will have had 14 jobs by the time they are 38 years of age. This attitude will challenge manufacturers and other technology organizations with extensive training programs and depend on employee retention to grow intellectual property and “know how.”

As noted in an earlier blog titled “Overcoming Obstacles to a Younger Workforce,” a clear business strategy and managerial transparency are essential for attracting younger workers. Commitment to executing the strategy, developing employees, and showing how employees support the strategy are critical to retaining them. Having spent most of their lives in a down economy, Millennials evaluate their opportunity for advancement and employer’s commitment to their development more carefully than their elders did. Communicating a clear career path strengthens employee engagement.

When developing a training strategy, it is important to consider how teaching methods have changed over the last couple decades. As a Boomer, I was very comfortable sitting in a lecture hall building a vast reservoir of knowledge before attempting to solve a real problem. Feedback on how I was doing was limited to two, perhaps three, examinations during the semester. Today learning is more focused on problem solving skills and assumes that all the knowledge details can be grabbed as needed off the Internet.  Students are accustomed to two-way feedback all through the learning process.

My suggestions for a positive employee development program include:

  • Structured Orientation – Graduates today starting their first or second job expect some training and orientation. Many organizations lack a resource to plan how an employee is brought into the company. I know from my own experience, there are costs associated with skipping or skimping on orientation.
  • Challenge – Younger workers are more schooled in critical thinking than my generation. There is value to assigning trainees a “real” problem and let them figure it out. Younger workers learn better with on-the-job training. “Spoon feeding” information risks losing the trainee’s engagement.
  • Autonomy – Self-paced training based on interactive technology has many advantages. Letting trainees control the pace assures that they won’t get bored and makes it possible to receive the instant gratification they wish for.
  • Structure the Training Path – The greater the correlation between skill proficiency and compensation, the better. Breaking training into small increments is cost effective for the employer and makes it easier to point to the next step in the employee’s development.
  • Appreciate and Encourage – Young workers are accustomed to receiving far more encouragement and monitoring than older managers are accustomed to delivering. In flat organizations, managers might want to assign peer mentors to trainees if the manager cannot allocate the time.

This may seem counterintuitive, but Don Tapscott wrote that, for managers unclear on how to best train the Millennial generation, task them with the problem. They will appreciate the collaboration and you will be pleasantly surprised by what you receive.  Please share your training successes!