Hazards of Being New

HR people new to an organization have a double whammy of hazards. First of all figuring out the plethora of new processes and ways of doing things is difficult. In addition the hows and why's are an unknown. Everyone would like to think they are a No BS HR person who uses a machete to cut through red tape . But every organization has their own politics and drama. Sometimes it is very hard to figure out the dramatics (also paranoids or people who view risk takers as some sort of leper) from the people who are just trying to help you out ("You know the COO is the approval authority for that and he is specifically looking for..."). Until you figure the political atmosphere out you have two choices:

1. Take refuge in the protective embrace of corporate HR and become the operational spy that narcs and circumvents your operational leaders at every turn.

2. Trust your operations guys and go along for the ride, make mistakes learn (maybe get thrown under the bus), but learn with your operations guys (you know the guys that actually make stuff and drive profit) and hopefully bond with them to create a solid relationship for the future.

Of course I choose #2. I see no problem going on an early ill advised jihad against corporate with your operations guys support, even if you know you will lose. It is call team building people and OPS guys need to know that you are no pansy that you wont be the one to constantly nag and harass them out of any out of the box idea they try to implement. Once they see you don't mind bleeding a little for them you would be amazed at the respect you get from them. This you can cash in later when you are coaching them to have more patience before they terminate that person who hasn't had a below average performance evaluation in his life and no write ups in his file ("Don't you think you should tell him what he is doing wrong in a formal setting before termination?").

I have always been an all or nothing type of guy and, in the end, I don't mind sacrificing a little bit of my early credibility with the corporate types to solidify my position within my team of people who actually drive profit.

So my advice, be prepared to bleed a little or go home.

But...Sometimes You Take the Money

In my last post I talked about how Jim Harbaugh would stay at Stanford because of the ownership he has of the Stanford team. Later that day, It was announced that Jim Harbaugh would be taking the head coaching position for the San Francisco 49er's.

So what does that say about my previous analysis? Well, it says that I have never been faced with a choice that had personal earnings of seven or more zeros attached to it, for sure. However if you look atmost of the news stories Stanford was always in the running. Jim Harbaugh was negotiating out of a pure strength position. He was happy at Stanford, but was open to other opportunities if, and only if, it was the perfect opportunity for him. Notice some of the earlier NFL teams were turned away. My guess (although no contract terms have been specified as of yet) is that Harbaugh was looking for the grand slam and, if he did not find it, would have been content to stay at Stanford until he did.

So Stanford, being the most prestigious academic school on the West Coast and not only landing, but making a good play at keeping the most sought after football coaching talent in America we salute you. It means you have something going very right in your athletic department. You don't win them all, but my guess is that Harbaugh will set you up for success and even help you with the search for his replacement.

Employee Loyalty and Owning a Team--A Hidden Retention Tool?

Jim Harbaugh is the kind of talented up and comer that makes corporate America drool. Certainly ready for the next step his accomplishments at Stanford speak for themself. He has taken an institution that was nowhere in the BCS discussion and high academic standards that probably have their own recruiting issues (no dummies at Stanford) and put them in the discussion their one loss is to either the national champion or the runner up. He has also mentored and trained the premier quarterback recruit of the 2010-2011 season. So when is Harbaugh going to make the jump to the NFL? He certainly has plenty of options with the Dolphins, 49er's, and Broncos chomping at the bit to sign him. Money, fame, and power are all within his grasp. Why would he stay at Stanford with so much to gain on the outside?

Andrew Luck.

Relationships matter. Often in business when someone is given the opportunity create their own team and has been recognized for success with that team a true leader wants to play out that success till the end. Very few people have so little ego that with the pinnacle of accomplishment (BCS Championship) so close they would give it all away for monetary gain or simple external rewards.

Andrew Luck is coming back to Stanford and so will Harbaugh. Ownership is the most powerful retention tool you can use in any organization. Harbough owns his success at Stanford, no one will dispute that he is the single most dominant force behind their success. Andrew Luck is giving up millions of dollars by coming back to Stanford next year and so will Harbaugh, just simply to finish what he started.

Let someone build there team and taste success and they will find it very hard to leave it behind for the unknown, no matter what is offered to them.

New Role, new challenges

Man, being new to a organizations is a pain! I was once told that no company is perfect and I accepted that on face value without really thinking about it. In reality, there are two types of companies. Companies that are can change course easily and companies that can't. I think one of the worst things about HR is that the first 6 months is spent learning all of the transactional procedures that get stuff done. Really, to me, this is a necessary but painful evil in an HR career. You need to be the expert on how an organization moves forward on a daily basis, but your job is not to provide transactional support for the operational guys. I just feel like I am wasting time learning this stuff however necessary to get to the good stuff like changing attitudes and processes toward talent and development. If Kris Dunn has taught me anything, it is that every minute you spend on transactional work is a waste of time. But, yet you must learn, so that you can teach others.

Part of my problem with the new organization (which is great, really), is that they are growing so fast they seem to be going overboard to create some semblance of organization as they rapidly expand. The result is a heavy handed attempt at an extremely hierarchical structure from a former marine (Oh, how I want to say ex-marine just to piss you guys off...Marines and military folk will get this).

As an HR guy who knows where his paycheck comes from, my number one goal has always been to increase my operational boss's authority. I firmly believe that the more decision making you push down to the lowest level the more flexible and effective you will be as an organization. However, I now find myself in a position where the organization is going the opposite way.

So, I now find myself in the role of insurgent. I need to convince people who get paid more and have worked for the organization longer than me that their path is wrong, and while structure is important, it is not what has made them successful in the past.

So, the question I have been pondering this week before the new year, in a two month old job is how ballsy should I be, and who can I afford to piss off to make my point.

Overtime and the Hourly Employee

Hours in a growing industry is always a challenge. In established industries it is simply a math problem where a certain amount of overtime equals another full time employee. In a high growth company, it is much more difficult. Employees become reliant on overtime pay for their daily expenses. A person who should only be making $2.5K a month starts bringing in $3.5k a month and their lifestyle becomes dependent on making that kind of money. However, in the end people who are putting in that kind of overtime will only want to put in that kind of time for so long. Once you realize that you have employees putting in 300+ hours a month you have to realize that these peoples lives are not "typical". Retention is also an issue over the long term. People do not want to work those kind of hours long term. While with the economy the way it is you can get away with it for a while, after a year or two employees will even take a pay cut to get a more family or lifestyle friendly schedule.

Really these type of situations should never happen. While their will be time frames of a month or so where increased hours are necessary in a production environment, if you go more than a quarter with this type of overtime you need to seriously consider adding shifts. The danger you are facing if an hourly workforce gets used to gross amounts of overtime is a complete change in the demographics of your hourly workforce. If you are looking specifically for guys who will work 200+ hours a month, they will never be happy when told that they only get to work 180. They have car payments and mortgages based on the high hours. They will leave and you will be forced to find people who have more realistic hour expectations. While you always want to hire people who will work a high amount of hours, too many of those and you create a situation where it is an entitlement. A proper mix is needed. For retention purposes you need at least a 70 percent hourly workforce that is happy to work 40 hours a week. Then you can leverage the other 30 percent to fill in the gaps. There will always be employees who will take whatever hours they can get, but creating workforce that is entirely composed of "hour whores" is a recipe for failure. In a Union environment you also get people that are on the watch for percieved seniority violations as it pertains to overtime.

Bottom line: Create a sustainable production pace and find a metric that tells you when to add people. For people in a more static and established industry you need to get with your controller and figure out what those metrics are.

Talk to a safety guy about the myriad of safety issues associated with long hours as well.

1st Step in a new Blue Collar HR job: Who to make Friends with

While I haven't had too many changes in jobs there is one truth that I am sure of in the line blue collar HR field. Make friends with your finance person. While in the white collar world with a proven structure this may seem anathema, the comptroller, controller, accountant, or whatever you call it, is an extreme asset in the management of an hourly workforce. Look, I have to many employees to be absolutely groundbreaking in everything I do. Maybe that is admitting defeat. But in my world simple victories stand out. Victories like making sure labor gets charged to the right account so that the proper supervisor or manager can be held responsible. Also, when you are looking at big picture, assessing manning levels and adjusting using overtime as a metric doesn't work when your maintenance account is getting not getting charged because of the production people they are using on overtime for fire-watch.

The person who knows all of these things is your financial guy (gal). Their frustrations are your frustrations when it comes to managing 200+ employees. Simple oversights or errors over the long term can hose you big time when you try to do that "big boy" analysis to actually better your organization. First step when you enter a new Blue Collar HR job is to ensure that labor is being charged to the right account ever time and employees are classified correctly. The easiest ally to that purpose is the finance person. They almost always feel under-appreciated and they already have a long list of issues about how labor is charged (without full perspective) that will make you look like a star.

Solve that issue and the finance guy will come to you with issues rather than suffering in silence. Which for some reason is what they tend to do without acknowledgment.

Admin Recruiting....Where it's At

While it is certainly a daunting task to have multiple admin requisitions come to me within my first few weeks at a new job, I am appreciating the challenge of building a staff from scratch so much. While I have had some experience with building the hourly ranks with solid performers and feel that I am successful at it, salaried employees have so much more complexity and fit means so much more to the organization. The human resources function feels so much more rewarding to me now that I have sole control of who to show my operation guys and can control the how applicants are recruited so much more. While I don't think I could ever become a recruiter without a master, I really enjoy building organizations from the ground up. I have always liked buying into a vision and then selling other people on the promise of an organization that I belong to. Especially when I am given a free reign to go ahead and experiment with raw talent as well as seasoned professionals. While there are a host of other aspects of the HR generalist role I enjoy, the recruiting part seems to be the lynch-pin between running a successful organization and building a successful organization that makes you feel more responsible for organizational outcomes. There seems to be so many good hires around the corner right now in this economy. It is truly exciting. Now if I can just find the time to learn how to write status reports correctly I may just make it into my second month. Google "Terrible" Terry Tate: Office Linebacker.....the horror....