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- Diversity in the IT Industry: Why It’s Vital
Diversity in the workplace embodies a blend of individuals from various backgrounds, encompassing differences in race, gender, ethnicity, age, sexuality, disability , and other attributes that contribute to an individual’s identity and perspective. In the realm of Information Technology (IT), diversity isn’t just a moral imperative but a strategic one. This field, known for its rapid innovation and problem-solving, greatly benefits from a diverse workforce that brings a multitude of perspectives, fostering creativity and driving technological breakthroughs. This blog post aims to explore the significance of diversity within the IT industry. We will delve into the current demographic landscape, examine the impact of diversity on innovation and business success, and provide insights on how companies can cultivate a more inclusive environment. By understanding these elements, businesses can better position themselves as leaders in both the technological and cultural arenas. Current State of Diversity in IT The Information Technology sector, pivotal in shaping future societies through innovation, reflects a mixed picture when it comes to diversity. Various studies and reports highlight that while there has been progress, much work remains to be done to achieve true inclusivity. According to recent data, the demographic composition of IT professionals in terms of gender, race, and age shows significant disparities. For instance, women represent about 25% of the IT workforce, a number that starkly highlights the gender gap, especially in technical roles and senior management. Racial diversity also varies considerably, with underrepresentation particularly pronounced among Black, Hispanic, and Native American communities. Age diversity is another area where IT companies often show a skew, with a strong preference for younger employees, potentially overlooking the vast experience and different viewpoints that older professionals bring to the table. Several IT giants have begun to acknowledge and address these disparities. Companies like Google, Microsoft, and Apple regularly publish diversity reports that not only show their workforce demographics but also highlight their commitments to increasing representation across different groups. These initiatives are not just about social responsibility but are also driven by the understanding that diverse teams are more innovative and better equipped to solve complex problems. The journey toward a truly diverse and inclusive IT industry is ongoing and requires consistent effort from all stakeholders involved. As companies continue to embrace diversity, they not only contribute to social equity but also gain a competitive edge in the market. The benefits of diverse teams—ranging from increased innovation and better market understanding to enhanced employee satisfaction—are clear indicators that diversity is not just good ethics, it’s excellent business. Through a committed approach to enhancing workplace diversity, IT companies can not only reflect the world in which we live but also lead by example in the creation of a more inclusive, innovative, and forward-thinking future. Benefits of Diversity in IT Hiring Embracing diversity in IT hiring practices yields several significant benefits, primarily enhanced problem-solving capabilities, improved product development, and increased overall company performance and innovation. Firstly, varied perspectives in a team are crucial for enhanced problem-solving. Each individual brings a unique set of experiences and cognitive skills to the table, enabling the team to approach problems from multiple angles and devise innovative solutions. For instance, a team diverse in gender, ethnicity, and background might better anticipate the needs of a similarly diverse clientele, thereby developing more effective technological solutions. Secondly, product development greatly benefits from a workforce that mirrors the diversity of its user base. In IT, where products are often designed for global markets, having team members who understand the cultural, linguistic, and functional needs of different regions can lead to products that are more user-friendly and accessible to a wider audience. This approach not only enhances user satisfaction but also expands the market reach of the products. Lastly, the overall performance and innovation of a company can soar with a diverse team. Numerous studies have shown that companies with more diverse workforces perform better financially and are more innovative. This is because diverse teams are less prone to groupthink and more likely to consider a wider range of strategies and outcomes , leading to better decision-making and a competitive edge in the fast-paced IT industry. Challenges Facing Diversity in IT Despite the clear benefits, several challenges hinder the achievement of true diversity in the IT sector. These challenges include unconscious bias in recruitment processes , a lack of diversity in IT education and training pipelines, and cultural and structural barriers within organizations. Unconscious biases are perhaps the most pervasive obstacles in the recruitment process. These biases can influence hiring decisions in ways that favor certain groups over others, often without the awareness of decision-makers. For instance, a recruiter might unconsciously prefer candidates from a particular alma mater or demographic group. To counter this, companies are increasingly adopting structured interviews and utilizing AI-driven tools to screen candidates objectively, focusing purely on skills and qualifications. Another significant challenge is the lack of diversity in IT education and training pipelines. Historically, certain demographics have been underrepresented in STEM fields due to various barriers such as economic factors, lack of access to quality education, and societal stereotypes. This disparity in educational opportunities results in a talent pipeline that is not as diverse as it could be. Efforts to diversify this pipeline include scholarships, community-based training programs, and active recruitment from a broader array of educational institutions. Lastly, cultural and structural barriers within organizations can impede the retention and advancement of diverse talent. Even when diverse employees are hired, they may face an organizational culture that is not fully inclusive or responsive to their needs. This might manifest in the lack of mentorship opportunities, minimal exposure to leadership tracks, or everyday workplace dynamics that make individuals feel isolated or undervalued. Addressing these issues requires a concerted effort to transform organizational cultures through training, mentorship programs, and policies that promote inclusion at every level of the company. Addressing the challenges of diversity in IT is not merely about hiring practices; it involves a holistic approach that includes education, recruitment, retention, and cultural change within organizations. By tackling these issues head-on, the IT industry can not only foster an environment of inclusivity and respect but also leverage the full potential of a diverse workforce to drive innovation and business success. As the industry evolves, continuing to prioritize diversity will be key to developing technology that serves and enriches the lives of people around the globe. Strategies for Improving Diversity in IT Hiring To enhance diversity in IT hiring, companies can implement several effective strategies. These include adopting blind recruitment practices, fostering inclusive workplace cultures, and forming partnerships with organizations that support underrepresented groups. Blind recruitment practices involve removing any identifying details from candidates’ resumes and applications, such as names, gender, age, and ethnicity, to prevent bias in the hiring process. This method focuses on the candidates’ skills, qualifications, and experience without the influence of preconceived notions or stereotypes. Such practices help level the playing field and give all candidates a fair chance at securing positions based purely on merit. Promoting an inclusive workplace culture is essential not only for attracting diverse talent but also for retaining it. An inclusive culture welcomes all employees’ contributions, respects their differences, and provides equal opportunities for professional growth and development. Companies can promote inclusivity by regularly training employees on diversity issues, implementing policies that support work-life balance for all staff, and ensuring that all employees feel respected and valued. Partnerships with organizations that support underrepresented groups can also significantly enhance diversity in IT hiring. Companies can collaborate with nonprofit organizations, educational institutions, and community groups that work towards increasing the participation of minorities, women, and other underrepresented groups in the tech industry. These partnerships can help companies tap into a broader talent pool and demonstrate their commitment to diversity and inclusion. Case Studies of Successful Diversity Initiatives Several companies in the IT industry have implemented successful diversity initiatives, providing valuable lessons and demonstrating the impact of such efforts on business performance and employee satisfaction. One notable example is Google, which has implemented several initiatives aimed at improving diversity within its workforce. Google’s strategy includes comprehensive data collection on workforce diversity, public reporting, and targeted recruitment efforts aimed at underrepresented groups. For instance, Google has enhanced its internship programs to include more students from historically black colleges and universities (HBCUs) and has established partnerships with organizations like the Hispanic Association of Colleges and Universities (HACU) to broaden their recruitment base. Another example is Salesforce , which has put a significant emphasis on creating an inclusive culture through its “Ohana” model, which treats employees, customers, and partners like family. The company has also set up Employee Resource Groups (ERGs), which play a crucial role in fostering a workplace environment that celebrates diversity. These groups not only provide support and advocacy for employees from underrepresented backgrounds but also help inform and shape company policies. These case studies show that companies can achieve substantial improvements in workforce diversity through specific, targeted strategies. The impacts of these initiatives are profound, leading to increased employee satisfaction, enhanced creativity and innovation, and improved overall company performance. The success of these companies provides a roadmap for others in the industry, showcasing the tangible benefits of a committed approach to diversity and inclusion . Improving diversity in IT hiring requires a multifaceted approach that includes innovative hiring practices, supportive workplace cultures, and strategic partnerships. The experiences of companies like Google and Salesforce illustrate that while challenges exist, the benefits of a diverse and inclusive workforce are immense and achievable. As more companies in the IT sector adopt these strategies, the industry will move closer to reflecting the rich diversity of the global community it serves, driving innovation and business success in an increasingly interconnected world. Technological Tools and Resources In the quest to achieve greater diversity in IT hiring, several technological tools and platforms have been developed to assist companies in maintaining unbiased recruitment practices. Additionally, various resources are available to promote training and awareness in diversity and inclusion. Software solutions such as Textio use augmented writing to help recruiters craft job postings that appeal to a diverse range of candidates by avoiding biased language that might discourage certain groups from applying. Another innovative tool is Blendoor, which is a data-driven technology that anonymizes and matches resumes to job postings without revealing any demographic information that could lead to unconscious bias. Platforms like Entelo Diversity allow companies to search for candidates from underrepresented groups by using algorithms that help identify diverse candidates who fit specific job criteria. These tools are designed to expand the talent pool by ensuring that all potential candidates are considered fairly, based on their skills and experiences rather than demographic characteristics. Resources for training and awareness in diversity and inclusion are also crucial. Online platforms like LinkedIn Learning and Coursera offer courses on diversity, inclusion, and unconscious bias. These resources help educate employees and management on the importance of diversity in the workplace and provide them with the tools to implement inclusive practices effectively. Future Trends in Diversity and Inclusion in IT Looking towards the future, several trends are likely to shape the landscape of diversity and inclusion in the IT industry. As awareness of the importance of diversity continues to grow, companies are expected to increasingly prioritize inclusive practices not only as a moral imperative but also as a business strategy. One significant trend is the increasing use of Artificial Intelligence (AI) and machine learning in the recruitment process. These technologies can help reduce bias by focusing on candidates’ skills and potential without being influenced by their personal background. However, it’s crucial for these technologies to be designed carefully to ensure that they do not perpetuate existing biases. Another trend is the growing recognition of the importance of intersectionality in diversity efforts. This approach considers the various ways in which different aspects of a person’s identity (such as race, gender, and socio-economic status) can intersect to create unique modes of discrimination and privilege. This more nuanced understanding of diversity is likely to influence how companies develop their inclusion strategies. Additionally, as remote work becomes more commonplace, companies have a greater opportunity to hire from a more geographically diverse talent pool . This shift could lead to more diverse workplaces, as companies are not limited to hiring talent from specific locations. As we move forward, the IT industry’s approach to diversity and inclusion is likely to evolve continuously. By leveraging technological tools and staying informed about the latest trends and best practices, companies can better equip themselves to build truly inclusive environments. This not only enhances the industry’s capacity for innovation but also reflects a commitment to reflecting the diverse world in which we operate, ensuring that the benefits of technology are accessible to all. Conclusion Throughout this blog post, we have explored the multifaceted benefits of diversity in the IT industry, the challenges that currently impede its full realization, and the strategies that can enhance inclusivity in IT hiring practices. We have also delved into the technological tools and future trends that are shaping the ways companies approach diversity and inclusion. The key points discussed emphasize the importance of diverse perspectives in enhancing problem-solving capabilities, improving product development, and boosting overall company performance. We have seen that while there are significant challenges, such as unconscious bias and structural barriers within organizations, there are effective strategies and tools available to overcome these obstacles. For those who are ready to take the next step and need guidance or assistance in hiring a diverse workforce, our team is here to help. We offer expert advice and tailored strategies to ensure that your recruitment efforts are inclusive and effective. Contact us today to start your journey towards a more diverse, innovative, and successful future in IT. Your commitment to diversity is not just a statement about your values; it’s a pivotal part of your strategy for thriving in the technology landscape of tomorrow. #ITrecruitment
- What Makes a Great Manufacturing Engineer?
In the world of manufacturing, the engineer is often the cornerstone of success. These professionals blend technical acumen with creative problem-solving to keep production lines running smoothly and efficiently. But what exactly makes a great manufacturing engineer? This question is crucial for any company looking to not only sustain but excel in the competitive market of manufacturing. A great manufacturing engineer can mean the difference between a product that meets the mark and one that sets a new standard for excellence. Technical Skills: The Nuts and Bolts To appreciate the value of a great manufacturing engineer, one must first understand the diverse range of skills they bring to the table. At the heart of these skills are technical abilities that are non-negotiable in the industry. A profound proficiency in Computer-Aided Design (CAD) software stands as a fundamental requirement. CAD is an essential tool in the engineer’s arsenal, allowing for the precise design and modification of complex parts and systems. This skill is not merely about using the software; it’s about leveraging this tool to innovate and improve designs. Understanding manufacturing processes is another critical area. A great manufacturing engineer must have a deep comprehension of various techniques like machining, welding, and assembly. This knowledge isn’t just theoretical; it’s practical and rooted in real-world application. It involves knowing what methods are best for each project and how to optimize them for efficiency and cost-effectiveness. Quality control and inspection techniques also play a significant role. In manufacturing, quality is not an afterthought—it is integral to the operation. Engineers must be adept at implementing rigorous inspection routines to ensure that every product meets strict standards and regulations. This not only minimizes waste and rework but also safeguards the company’s reputation . Lastly, familiarity with manufacturing equipment and machinery is essential. A great manufacturing engineer knows their tools as well as a chef knows their kitchen. This means understanding not only how machines work but also how to troubleshoot them, enhance their operation, and even innovate to develop better manufacturing solutions. Each of these technical skills forms a vital part of the manufacturing engineer’s repertoire, enabling them to tackle complex challenges with confidence and expertise. However, technical skills alone do not make a great manufacturing engineer. While technical proficiency is crucial, truly great manufacturing engineers are distinguished by additional traits that enable them to excel. Communication skills, for instance, are paramount. Whether it’s explaining complex technical details to non-engineers, collaborating with team members, or documenting processes and results, effective communication ensures that projects run smoothly and goals are met with collective effort. Adaptability in this role cannot be overstated. The manufacturing sector is dynamic, with frequent shifts in technology , consumer demand, and industrial practices. Great engineers must not only keep pace with these changes but often anticipate and lead the adaptation process, ensuring that their company stays ahead of the curve. Leadership is another critical element. Great manufacturing engineers often rise to positions of leadership within their teams and projects. Their ability to inspire and guide others, make strategic decisions, and manage resources effectively underpins successful manufacturing operations. Lastly, a passion for continuous learning and improvement sets apart the exceptional from the competent. The field of manufacturing engineering is ever-evolving, and those who commit to ongoing education and skill refinement are more likely to innovate and improve their operations. This drive for excellence is what fosters groundbreaking advancements and maintains a company’s competitive edge. The role of a manufacturing engineer is multifaceted and vital. The blend of robust technical skills with interpersonal abilities and a forward-thinking mindset creates a professional who is not just competent but truly great. For companies aspiring to lead in the manufacturing arena, investing in such talent is not just beneficial; it is essential. A great manufacturing engineer does more than fill a role—they propel the entire team toward excellence, innovation, and success. By understanding the broad scope of what makes a great manufacturing engineer, companies can better identify and nurture these invaluable assets. Moreover, for aspiring engineers, this insight provides a clear roadmap to personal and professional development that leads to a rewarding career in manufacturing engineering. This is a journey of continual learning and growth, where each step forward significantly impacts the larger goals of efficiency, quality, and innovation in manufacturing. Soft Skills: Building Bridges and Beating Bottlenecks While the technical skills of a manufacturing engineer are easily quantifiable, the soft skills they possess are equally critical, though sometimes harder to measure. These skills enable engineers to navigate interpersonal dynamics effectively, lead teams, and overcome project obstacles with finesse. At the forefront of these essential soft skills are excellent communication abilities, both written and verbal. In the complex environment of manufacturing, the ability to clearly and concisely convey information can prevent costly misunderstandings and errors. It also ensures that everyone from the shop floor to the executive suite is aligned with project goals and processes. Adept problem-solving and critical thinking abilities are what often separates a good engineer from a great one. Manufacturing processes can be fraught with unexpected challenges—equipment failures, material issues, or design flaws—and the ability to swiftly and effectively resolve these issues is paramount. This requires not only an analytical mindset but also an innovative one that can think outside the box and devise effective solutions quickly. Teamwork and collaboration proficiency is another cornerstone of effective manufacturing engineering. No engineer works in isolation; the nature of the industry demands cooperation across various departments and disciplines. A great manufacturing engineer knows how to build team synergy and foster a collaborative spirit that elevates the entire project. Lastly, a strong work ethic and the ability to prioritize tasks are essential in a field as demanding as manufacturing. The best engineers are those who demonstrate dedication and resilience, managing their time and responsibilities with a focus on efficiency and effectiveness. This not only ensures that projects are completed on schedule but also that they meet the high standards required in the industry. Experience that Makes the Difference While skills—both technical and soft—are foundational to a manufacturing engineer’s success , the specific experiences they bring can significantly enhance their effectiveness. Experience in a manufacturing environment, for example, provides practical knowledge that is invaluable. This includes familiarity with the day-to-day operations of a production line, understanding the nuances of different manufacturing processes, and being able to anticipate and mitigate potential issues before they become problematic. Exposure to specific industries such as aerospace or automotive can be particularly advantageous. Each industry has its own set of standards, regulations, and challenges. An engineer with experience in a relevant industry brings a depth of knowledge that can greatly accelerate problem-solving and innovation within those specific contexts. Project management experience in a manufacturing setting is also a critical asset. This experience equips engineers with the skills needed to oversee projects from conception through to execution, ensuring that all aspects of the project are coordinated effectively. It also involves budget management, timeline setting, and resource allocation—all vital for the successful completion of manufacturing projects. The role of a manufacturing engineer is complex and demands a wide array of skills and experiences. Soft skills such as communication, problem-solving, teamwork, and a strong work ethic enable these professionals to lead and innovate within their teams. Meanwhile, specific experiences like industry exposure and project management play a crucial role in enhancing their capability to deliver high-quality results efficiently. Understanding these diverse requirements not only helps companies better evaluate and develop their engineering talent but also assists aspiring engineers in shaping their career paths. It underscores the importance of continuous personal and professional development, aiming not just to meet but exceed the evolving demands of the manufacturing industry. Thus, a great manufacturing engineer is one who not only possesses a comprehensive skill set but also continues to grow and adapt in their journey towards excellence. Beyond the Resume: Qualities We Value While the resume of a manufacturing engineer might list degrees, certifications, and technical skills , there are intrinsic qualities that are equally important, though they may not always be as visible on paper. These qualities can significantly influence the impact an engineer has on their workplace and on the products they help to create. A passion for efficiency and continuous improvement is one of these critical qualities. The best engineers are not satisfied with the status quo; they are always looking for ways to make processes faster, less expensive, and more reliable. This passion drives innovation and can lead to significant advancements in manufacturing practices and outcomes. Adaptability and a willingness to learn new technologies are also highly valued in today’s rapidly changing industrial landscape. The technology that drives manufacturing is constantly evolving, and the ability to adapt and learn is crucial. Engineers who embrace change and are eager to master new tools and technologies bring immense value to their teams and companies. A strong work ethic paired with a can-do attitude rounds out the trio of invaluable traits. These qualities reflect an engineer’s readiness to take on challenges, their resilience in the face of obstacles, and their determination to see projects through to successful completion. Engineers with this mindset are invaluable assets to any team, driving projects forward and inspiring colleagues with their dedication and positive outlook. Conclusion In sum, the qualities that make a great manufacturing engineer are a combination of technical skills, soft skills, and personal attributes that go beyond the resume. Technical expertise in areas like CAD software, manufacturing processes, and quality control is fundamental. However, soft skills such as excellent communication, problem-solving capabilities, and teamwork are just as essential for effectively leading projects and collaborating within teams. Moreover, the intrinsic qualities of passion for efficiency, adaptability, and a strong, positive work ethic are what truly distinguish a great manufacturing engineer. These engineers not only enhance the capabilities of their teams but also drive the continuous improvement that is vital for staying competitive in a fast-paced industry. If you’re looking to hire manufacturing engineer employees, contact our team today and learn how we can help you. #hiring #Manufacturing #talentacquisition #EmergeTalentCloud #Recruiting
- Passive vs Active Candidates: What’s The Difference?
When reading any hiring guide, you’ve probably come across the terms “active” and “passive” regarding your potential candidates. Do you know what they mean? This guide is mainly for HR novices, new hires, and individuals who aren’t immersed in their terminology. The definitions are relatively simple, though the repercussions of them and how you treat them in your hiring process are complex and far-reaching. Let’s dig in. What is an Active Candidate? Consider the traditional model for hiring to fill a vacancy in your company. You have an open position. You know what you need out of a candidate to fill that position. So, you write a job posting. That job posting is uploaded to your website’s careers page, posted to career sites like Indeed, and possibly even advertised on print media, television, or other venues. Then you wait. As you wait, candidates fill in their applications for consideration. They submit resumes and cover letters, send emails, call your hiring team on the phone, and maybe even stop in the office to follow up. These candidates are actively seeking a job at your company. They may or may not fit the profile of the person you want for the position, but they’re the candidate pool you have; they’re the people out there, proactively putting in their applications. They’re the people you have to dig through to find the best one to hire. These are active candidates. They are active in their job search, active in their applications, and active in their follow-ups. Whether or not you hire them comes down to your hiring and vetting process, of course, but these are the people who come to you. What is a Passive Candidate? Various studies put the percentage of the total workforce – all working-age people who are not retired – actively seeking new work somewhere between 20% and 30%. The number changes over time, but it’s always relatively low. After all, there are many reasons why an individual might not be seeking a new job. Maybe they’re satisfied where they are. Maybe they’re paid so well that they’d need an obscenely good offer to leave their current position. Maybe they’re three months away from retirement and have no reason to shake things up. Whatever the case, that leaves 70-80% of the workforce in the category of “not seeking work.” These people are not active; therefore, they are passive. Passive candidates do not see your job posts because they aren’t looking. They don’t send in applications because they don’t want a new job. Unfortunately for you, from a sheer statistical standpoint, the best person to fill your open position in your company is already working for another company. They never apply, so you never see them in your candidate pool. Here’s the trick: many of these people are, in fact, open to being recruited. If you approach them with a compelling enough offer, they may be happy to leave their current company and work for you. “The benefit to a passive candidate is that, since they are not looking for a new opportunity, they probably won’t be interviewing with anyone else. With 60% of the workforce not looking for a new job but willing to discuss a new opportunity, proactive sourcing (Boolean searches, social media, etc.) will be your best bet for finding this group. Since it can be difficult to distinguish a passive candidate interested in speaking to you from one that’s not, you should be careful how you reach out to people you find through proactive sourcing.” – LinkedIn . Passive candidates are challenging to locate and hire. After all, you know very little about them. You don’t have their resumes, and you don’t have their skill testing results; all you know is they work for some other company in the same position you need filled, and seem good at it. Which Kind of Candidate is Better? Are active candidates better? There’s an argument to be made that they could be. After all, active candidates are coming to you with a motivation behind them. If they fit what you need and you treat them well, they can be a loyal asset to your company for decades. On the other hand, many active candidates seek jobs purely because they need a new job. Maybe they want less responsibility than their current role, or they’re 100% just in it for the money and benefits. They may not have any loyalty for you and be more than happy to jump ship if something better comes along. Are passive candidates better, then? Potentially. The best candidates for a role are often already employed in that role and are passive because they’re satisfied where they are, and they have job security. You can attract them to work for your company, and they may do an excellent job, leveraging those same skills in exchange for better pay or benefits than they had at their previous firm. On the other hand, many passive candidates grow lax with their skills, fall into bad habits, or fail to progress their education. They may not necessarily be able to adapt easily to a new environment and may find themselves dissatisfied, even if your offer is better. “While both proactive and reactive search methodologies can unearth top performers, the more thorough nature of proactive search techniques employed in retained search solutions means the likelihood of discovering high-caliber talent is greater. Proactive search techniques, by their very nature, leave no stone unturned and are deployed by the best headhunters and executive search firms.” – Fraser Dove . The truth is, neither kind of candidate is inherently better than another. Passive candidates make up the bulk of the workforce, so it makes sense that they cover all parts of the spectrum of a quality hire. And, of course, it’s always true that an excellent candidate may not work out in your organization for many different reasons. Other Kinds of Candidates Some analyses divide the greater workforce into more than just active and passive candidates. Other definitions may be relevant. Tip-Toe Candidates . These are candidates that are a middle ground between active and passive. A formerly-passive candidate who has grown dissatisfied with their job and is starting to put out feelers for new work but who doesn’t need to jump ship immediately and actively seek a job is a tip-toe candidate. Super-Passive Candidates . Super-passives are passive candidates who are not only not looking for work; they are not interested in work. They’re happy where they are, and nothing you can offer them could sway them away for one reason or another. You may also encounter candidates who seem to meet one definition but instead meet another. That usually happens when unscrupulous recruiters get involved. Some recruiters will attempt to portray a passive candidate as an active candidate, for example, to trick both sides into thinking the other approached them and wants them more than they genuinely do. Luckily, this is relatively rare. Is It Worth Pursuing Passive Candidates? The workforce in America is over 150 million people. For many companies, hiring outside of America is entirely on the table, so the broader available workforce is much larger. Even only 30% of that many people is still a lot of people. With so many potential active candidates out there, your job postings are probably getting hundreds, if not thousands, of applications. Depending on the role and your business’s reputation, you may be getting that many per day. You already have a great number of potential candidates to sort through. Is it worth pursuing a passive candidate when so many active candidates have already come to you? And, isn’t it even a little offensive to ignore everyone at your doorstep to go down the street and approach someone else? The truth is, it depends. Sometimes, you will be able to find excellent candidates in your active candidate pool. Good candidates need to apply for jobs, too, though better, more established employees may not need to very frequently. “Stack Overflow founder Joel Spolsky claims that many developers only apply for four jobs over their entire career. Unless you’re lucky enough to be hiring at one of those four moments, you’ll probably miss out.” – Beamery . Sometimes, your active candidates will be more than good enough to fill your available open roles. Other times, none of them quite meet the mark. For most businesses, it’s a matter of expertise. Active candidates tend to be most focused on entry-level jobs or jobs where advanced technical skills or years of experience are not as necessary. Those candidates still exist but are a minority of the active candidate pool. When you need to fill a higher-level role, including more technical and experienced roles in engineering, development, management, and more, you need people who are less likely to be actively seeking work. Passive candidates offer a better return on investment for your time and money spent recruiting. The decision whether or not to pursue passive candidates for a given role often comes down to your experiences in hiring active candidates. If your candidate pool is thin and of poor quality, and you can’t seem to find someone who fills the qualities and requirements you need, you’re faced with a decision. Do you settle for the best of the available candidates? Do you promote someone internally and hire to replace them in a less stringent role? Do you hold off as long as possible, hoping a better candidate comes along? None of these are great options, though they have their benefits. Often, the best choice is to look for a passive candidate that fits the job description and approach them. Tips for Attracting Passive Candidates One key thing to remember about passive candidates is that, by their very nature, they have leverage in the hiring process. You are coming to them, and they don’t need you or your offer. That means they can negotiate for what they want out of a role. This can include: Increase in job title/promotion in the field. Better pay than they currently get, and potentially better than you would typically offer. Better or more flexible benefits to improve their living situation and work/life balance. Continued training and education to further advance their career. Guarantees of ongoing raises, bonuses, or consideration for promotion. After all, you need to make your offer worth more to them, and it’s very rare that your name recognition and the prestige of working for you are inherently valuable. That can be true of some companies, but not very many. You will also need to offer a more streamlined consideration process. If you reach out to a passive candidate offering to poach them from their current role and, when they express interest, link them to your normal application process, most will stop responding. One of the benefits of being in-demand is being able to skip the tedious parts of the process. After all, why should they need to put in a formal application when you’re already approaching them? Why should they need to take a skills assessment when they’re already performing in the role, as evidenced by them currently working in the role? You need some process, but it should be more streamlined and faster than a traditional process for active candidates. Another critical element of recruiting passive candidates is treating them in a personalized way. Template emails and form letters don’t cut it. You’re approaching this person for a reason; treating them as though they’re just another candidate is a sure-fire way to make them lose interest. Recruiting passive candidates is difficult, especially for companies that may have never tried to do so before. It can be highly beneficial when done correctly, but it can be a massive waste of time if done poorly. Do you or your company have any questions about the differences between active and passive candidates? Was there anything we mentioned today that you would like a little more clarification on? If so, please feel free to leave a comment down below, and we’ll get a conversation started! We’d be more than happy to answer any of your potential questions on the topic or clear up any concerns you may be having!
- What is a Candidate Journey Map? (And Why You Need One)
Any time you need to hire someone, you go through a process. You put out job ads, filter your candidate pool, schedule and conduct interviews, review the results, and make a decision. In broad strokes, progressing through those stages is known as the candidate journey. Let’s say that you want to improve your hiring process. So, you ask questions. What platforms that you post your job to have the best results? At what point in the process do most candidates voluntarily drop off? What turns people away from your hiring process? You may or may not be able to answer these. If you can’t, then the chances are that you don’t have a great, nuanced, and granular view of your candidate journey. Defining the Candidate Journey Map That’s where the candidate journey map comes in. The journey map is a map – a literal, visual representation – of your candidate’s journey. Or, more specifically, a map of different paths that candidates can take through your candidate experience, because there are often multiple paths through the system. For example, one candidate finding your job ad on Indeed and another finding your listing on your careers page have different experiences. So, too, does a candidate who was referred to your company by an existing employee. All three of these candidates are part of your hiring process, but they make their way through the process in different ways, and that difference in the journey can have a significant impact on hiring success. A candidate journey map is a map of the various touchpoints that candidates hit along the way. Touchpoints are specific events that happen as part of the candidate journey. There are seven defined touchpoints in most frameworks, though what specifically happens at each touchpoint can vary. The seven are: Awareness Consideration Interest Application Selection Hiring Onboarding Every candidate journey map begins with awareness and progresses through the seven until either the candidate drops off willingly, is eliminated from consideration, or is successfully hired at the end of the journey. Note: If you think this looks similar to a sales funnel, you’re right. The process of mapping a candidate’s journey is very similar to mapping a customer’s journey through a sales funnel. The primary difference is that the candidate journey likely has far less in the way of analytics already in place. However, different candidate journeys progress through these steps in different ways. For example, the first touchpoint is Awareness. It’s the touchpoint of the potential candidate discovering that your company is hiring for a role and that it may be a role they could take. That can happen in different ways, such as: Viewing your job ads on a job board. Talking to your representative at a job fair. Visiting the careers portal on your website. Talking to an existing employee that they know socially. This is a simple list of four different starting points for example candidate journeys. Note, as well, that the candidate journey is not necessarily linear. Just as a potential customer might bounce between awareness and consideration, a potential candidate may also bounce between stages as they investigate, gather more details, and eventually decide to apply. How to Develop a Candidate Journey Map Developing a map of your candidate journey – or, more accurately, a framework for mapping multiple possible candidate journeys – is a multi-step process. So, let’s go through the steps. Step 1: Defining a Candidate Persona Much like with sales defining a customer persona, HR will define a candidate persona for a candidate journey map. A candidate persona is like a “character sheet” or a profile for your candidates. It’s semi-fictional, though it may be informed by the actual experiences of existing employees and the data you have on your candidates. A candidate persona will have a lot of potentially useful details, such as: Demographics. What is their current position, skill level, location, current salary, and experience levels? Note that you should ignore demographics that aren’t relevant or are protected information , such as race, religion, age, etc. Goals. Why are they changing jobs? Are they active or passive? What channels do they use to look for new career opportunities? What are their skills and personality attributes, as measured by the pre-employment screening you use? What motivates and influences their decisions for employment? What sources of information do they trust? Some companies stop at the first handful of attributes, while others build more robust personas. You have to find the right balance. The narrower and more specific the persona, the more potentially useful it can be, but the less likely it is to be on-target for your candidates. Step 2: Set Up Your Touchpoint Framework Above, we defined the seven touchpoints a candidate goes through to become an employee. Here, you set up a framework to track them. Since your candidate journey map is an actual, graphical map, you will want to assign each touchpoint a color, icon, and label to make tracking easier. Here’s an example image from TalentLyft , and here’s a simplified example of how a single journey map might look . As you can see, candidates will likely bounce around in the early stages, but once they reach the later stages, they will be “locked-in” and progress from one to the next. The turning point is the application; once they decide to apply, the decision becomes yours rather than theirs, though they always have the opportunity to opt-out. Step 3: Define Candidate Needs Once you have your framework in place, consider it from the perspective of your candidate persona. Given what you know about this archetype of candidate, what does the candidate want or need at each stage of the process? Awareness : Who is this company, what do they do, and are they hiring for my role? Consideration : Would working for this company improve my life, work/life balance, or career? Interest : What is the work culture like for this company? What makes this company better than another company in the same niche? Each step of the way, the candidates want something. Your goal is to define what they want. Different candidates will have different needs, so this is a per-persona definition. For example, a novice fresh out of university will have different interests and needs than an experienced professional in the same field. People with families will have different needs than people without, and so on. Step 4: Identify Specific Touchpoints The fourth step is identifying the places and mechanisms candidates will use to fill their needs at each stage. For example, during the consideration stage, the candidate will be researching your company. They might check: Your website About Us, History, and Careers pages. Your social media profiles. Social media results for searches for your company name. Reddit discussions about your company. Reviews of your product or service on marketplaces or review sites. This helps you build out a complete map of the journey for that given candidate persona. Where do they find out about you, where do they go to learn more, who do they talk to, and what channels do they use? Step 5: Build Your Map Remember, a candidate journey map is not an abstract, conceptual document. It is an actual, graphical map that you build out using the information gathered in the previous steps. For each persona, create a document that includes information about the persona. Then, for each touchpoint stage, define: What the candidate is thinking, what they’re looking for, and what they want to find. Where they will go to seek out this information. What channels you can use to reach them with the relevant information at the right time. You build up this table of information and can even map out the bounces candidates take from stage to stage because those bounces can indicate something you can do to streamline the candidate journey. Your map can be as simple or as complex as you want it to be. For example, Rally Recruitment offers a template with more space for nuance, including defining the candidate’s expectations, experiences, and questions separately. In truth, you can build as simple or complex a series of maps as you want, so long as you can still use them to improve your candidate journey overall. Making Use of Your Candidate Journey Map A single candidate journey map helps you define and optimize the journey of one particular kind of candidate. That’s why you define many different candidate personas at the start; each one has their own map, and the data from each map, and the data you get in aggregate, can help you optimize your hiring process. The first thing you should do is analyze your maps individually and your overall map to identify common issues. Do most candidates reach the consideration stage and linger for a long time before applying? Do many candidates apply, despite not matching the roles you have open? Do many candidates fall off the journey at a particular stage? These are all signs of issues. Maybe there’s a prominent piece of information they tend to encounter that makes them second-guess their choice. Maybe they struggle to even find the option to pursue applying. Maybe some part of your hiring process, like salary ranges or an encounter with a particular HR staff member, turns them away. It can also be worthwhile to look into the various channels your candidates use to find information about you and see what they’re seeing. When they search Google for your company, what do they find? When they ask about you on Reddit, what do they find? Another thing you can do is submit surveys to actual candidates throughout your candidate journeys. Assign each real candidate to the persona that most closely fits them, and ask them questions about that persona you would want to know. You can then use their answers for additional information or leads to improve your candidate experience further. Your goal with this process is to identify roadblocks, poor information, negative reviews, lack of information, or other problems. Any time a candidate hits a stumbling block, it’s an opportunity for you to work to remove that barrier. Get negative reviews removed, refute them, or use SEO to out-weigh them, so they’re harder to find. Create accounts on Reddit or other media to offer alternative positions and refute misinformation. Add information from frequently asked questions to your website or careers page so candidates can find it more readily. Then, continue to monitor your candidate journeys and see how they change. Ideally, each change you make should improve the outcomes and streamline the application and hiring process. Don’t forget to monitor candidates after you hire them, and look for ways to optimize long-term success in your workers, as well as just success in hiring. Keep Improving The key to using the candidate journey map is to improve every aspect of hiring continually. This means improving your hiring process, but it also means improving your candidate experience. For example, you may find over time that one persona you developed seems to encompass two different groups of similar people. Instead of working around this, split the candidate profile into two distinct profiles with candidate journeys of their own. Doing so better allows you to track and optimize for those journeys. Your candidate journey map is a living document, or rather, a series of documents for each potential persona. And as companies change over time and people change over time, the information in these documents will change over time. It’s up to you to keep on top of the information you receive, use it to edit and adjust your hiring process, and get the most out of your candidate pool. Do you or your company have any questions about what a candidate journey map is or why you may need one? Was there anything we mentioned in this post that you would like a little more clarification on? If you answered yes to either of these questions, please feel free to drop us a comment down below, and we’ll get a conversation started! We’d be more than happy to assist you however we can in better understanding the topic.
- 10 Strategies to Create a Positive Candidate Experience
A significant part of your hiring process is the candidate experience. What is the candidate experience? Put simply, it’s the whole array of experiences and interactions between your company and any given candidate, from the time they see your job ad to the time they are either hired or not. It’s essential to note that the candidate experience is not limited solely to the candidates you hire. The people you don’t hire are also important! If your first choice doesn’t work out, you don’t want to have burned a bridge with your second choice, and if you need more hires down the road, keeping a pool of warm, positive leads can be highly beneficial. Thus, the candidate experience is all about providing a positive series of interactions from moment one until the candidate voluntarily ceases interactions with your brand. The candidate experience encompasses: The job search experience ; where your job is advertised, how it is advertised, and how job seekers can interact with it. The application experience , including any unusual instructions or demanding requirements. The hiring process , from pre-interview screening, to scheduling, to the interview itself. The post-interview process , including communication and the length of time it takes to make a determination. The onboarding process , which we have already covered in detail . Remember, as well, that the job market is currently heavily weighted in favor of the candidates. Many candidates, particularly those with essential skillsets, are in high demand. They often have multiple offers and have their pick of places to work. The quality of their candidate experience will be one of the influencing factors that can lead them to choose – or eliminate – your company. According to a study by IBM, candidates are 38% more likely to accept a job offer when they’ve had a positive candidate experience. Remember, as well, that the candidate experience you convey has repercussions beyond your existing candidate pool. Candidates – especially those in technical or advanced fields – are generally part of the same social circles. “According to a CareerArc survey, nearly 60% of candidates surveyed said they had a poor candidate experience, and 72% of those candidates shared that experience online or with someone directly.” – Forbes . They post on Glassdoor, they post on Reddit, and they post on niche forums and social media. One candidate having a negative experience can suppress other good candidates from even applying. Can You Measure the Candidate Experience? Unfortunately, the candidate experience can be difficult to track for two reasons. The first is because it’s not a fixed and measurable definition of action and interaction. What makes an interaction positive? The answer will vary from person to person and situation to situation. The second reason is that at least some of what goes into a positive candidate experience is personal and requires self-reported feedback. There are relatively few impartial, objective measures of candidate experience available. How can you attempt to measure candidate experience? Candidate feedback . Surveys from candidates, both those you hire and those you do not, can help streamline, optimize, remove roadblocks, and improve your hiring process. Employee retention rates . Candidates with a positive introduction to your company are more likely to make friends, join teams, and stick around longer than those who feel disengaged or negative about their experiences. Employee referral rates . Employees will refer others to a company for two reasons: because they like the company and want their friends to work with them or because there’s a monetary bonus for doing so. You can measure the former in the absence of the latter. The key is not to benchmark your candidate experience against other businesses, though you can do some soft comparisons and look for ideas to optimize your own. The goal is to improve your candidate experience compared to your own experience in the past. Thus, using your own data as a benchmark is plenty. How, then, can you improve your candidate experience? Here are ten options you can investigate and, if applicable to your situation, pursue. 1: Provide Clear and Effective Job Descriptions In your job ad, your job description is often the first part of the candidate experience. Through that description, a candidate gets their first impression of your company as an employer and of the department, team, role, and management style they will be part of. A good job description is clear and concise, and the job ad should discuss culture, expectations, salary range, growth opportunities, and more. The ad should also use inclusive language, minimize unnecessary “requirements,” and be accurate about expectations. Remember, it’s less about what you want in a candidate and more about what a candidate gets from you. 2: Guarantee Active Communication Nothing is worse for a candidate experience than a lack of communication. Whether it’s little or no feedback about their application when they send it in, too long delays between responses or communication when scheduling skill tests or interviews, or no feedback after an interview and a lack of follow-up if you pass them over, the candidate will see you less and less favorably with every passing day. Communication also extends to expectations and transparency in the hiring process. Will the candidate be required to take a skills assessment, personality test, or even an IQ test ? Will they have to progress through two or more rounds of interviews? What is the timing like, and how long will each stage take? Clarity is required, and being up-front with your timing and expectations is necessary for a modern candidate experience. 3: Make Information Candidates Want Easily Accessible Your candidates care about more than just the list of job duties and the salary range. They care about your company atmosphere, dedication to inclusivity and diversity, and much more. It’s, obviously, impossible to include all of this information in a well-formed job ad, so instead, build a robust careers portal on your website where users can check all of this information. A great example of this is HubSpot . Their careers page has a wealth of information about nearly everything involved in working for their company, from their locations, to their benefits, to their diversity reports. This careers page is a living document and should be continually improved and maintained to keep its information up to date, cover topics your candidates want to know about, and maintain a positive presence even when you’re not actively hiring. It is, after all, one of your most essential resources in the hiring process. 4: Minimize and Streamline the Application Process In a viral tweet, this user sarcastically decries the time required to apply to jobs, particularly using ATSs that accept an uploaded resume, and then asks the applicant to add all relevant information to forms manually even if it’s all present in the resume. Taleo, for example, is a big offender in this space. Though tongue-in-cheek, the complaint is genuine. As much as 60% of job seekers abandon applications part of the way through when they’re asked to fill out complex forms or put in a lot of effort before even sending in a basic application. It’s a massive burden on the candidate with zero guarantees of so much as an email acknowledging it. This is even worse when you’re attempting to recruit passive candidates or candidates for highly skilled positions where their experience should speak for itself. It becomes insulting and a waste of time. Take the time to streamline and remove the burden from candidates when you don’t absolutely need the information they fill out. 5: Use Modern, Relevant Interview Techniques Your interview is often one of the first times your candidates meet and talk to anyone on your staff. It’s their first impression of how organized, effective, and inclusive your company is. Many interview techniques, like group interviews and aggressive panel interviews, are designed to be antagonistic towards candidates. They work, in a limited capacity, when the job market is company-driven. In times like these, where the market is candidate-driven, an aggressive or inefficient interview process becomes a gigantic red flag. It’s also worthwhile to use an interview scorecard to help guarantee impartial, unbiased decision-making in your interview. Removing bias from hiring is extremely important for reasons beyond the candidate experience, as well. 6: Ask and Consider Feedback Feedback is a core part of improving your candidate experience. Each step of the way, consider asking for a bit of feedback on that part of the process. It can be as simple as a 2-3 question survey as part of the job application or a simple Q&A during an interview, but it should be relevant to the process and the experience. It should also be clear that the feedback is not part of the candidate consideration process and that even negative feedback will not affect the candidate’s chances of being hired. When you receive feedback, analyze it and see how broadly it applies. Sometimes, negative feedback has more to do with a unique candidate situation than with your experience as a whole. Other times, it’s a fundamental issue that requires significant change to address. Take action as appropriate. 7: Keep in Contact with Your Best Candidates Your candidate pool does not need to be rebuilt every time you need to hire for an open role. If you keep in communication with the candidates who make it at least to the interview stage, you can keep them “warm” and available to interview for another role or in the event of your first choice falling through. One of the worst things you can do to a candidate is ghost them. Whether it’s keeping them on a mailing list, reaching out to them occasionally, or just periodically reminding them that you have their information on file for future consideration, this level of contact is very valuable for hiring for future positions with a short turnaround time. 8: Use Knowledgeable Hiring Staff The hiring process isn’t one-directional. Your candidates are interviewing you as much as you are interviewing them. They will have questions about your company in general and about the role they’ll be working if they’re hired. One massive red flag for many candidates is being interviewed by a hiring manager or a recruiter who doesn’t know anything about the role they’re filling. At the very least, your hiring process should include at least one meeting with a relevant manager for the team the candidate would be part of, so they can ask relevant questions. When working with a third-party recruiting firm or solitary recruiter, you want to hire someone who specializes in your industry and can speak knowledgeably about it to help convey details and reassure candidates. A recruiter lying about a position is a common and devastating complaint about the candidate experience. 9: Discuss Salary Candidates often have a salary range in mind, whether they want something better than their current range or they need a specific salary to be able to live in the area where they’d need to move to work for you. One of the most frustrating things for many candidates is to progress through the interview stage, only to receive an offer that is laughably lower than their minimum. Companies often try to lowball candidates through secrecy, and it’s a strategy that no longer works, particularly in candidate-driven job markets. You may choose not to post a salary range publicly in your job ads, but you should be willing to discuss it very early in the hiring process. If nothing else, it respects the time and talent of your candidates. 10: Continually Improve There’s no such thing as one singular “good” candidate experience. Since the candidate experience varies from person to person, from time to time, from role to role, and from company to company, the only thing you can do is always strive to be better than the last time. Do you or your company have any questions about the candidate experience or how you can create a more positive one? Was there anything we mentioned in today’s article that you would like a little more clarification on? If yes to either of these questions, please feel free to drop a comment down below, and we’ll get a conversation started! We’d be more than happy to assist you in improving your candidate experience however we can!
- What is Gainsharing and Can It Improve Employee Performance?
In the business world, there are dozens of different frameworks, incentive programs, and punishment/reward systems you can use to influence the performance of your employees. Some of them are highly effective; others have long been proven ineffective. Still others are reliant on the people in your team. One such program is gainsharing. You may have heard of it, but you may not be clear on what it is. Let’s analyze it and see if it could be a valuable process to implement in your company. What is Gainsharing? Gainsharing is a means of motivating your employees using financial bonuses. It’s very similar to profit-sharing, so understanding profit-sharing can be beneficial to understanding gain sharing. “Gainsharing is best described as a system of management in which an organization seeks higher levels of performance through the involvement and participation of its people. As performance improves, employees share financially in the gain. It is a team approach; generally, all the employees at a site or operation are included.” – HR-Guide . In profit-sharing, a baseline amount of profit is set. Then, profits are measured throughout a predetermined period – usually a financial quarter or a fiscal year. If the company exceeds the baseline, the excess profit is distributed amongst employees as a bonus incentive. One of the significant drawbacks of profit-sharing is that it’s reliant on factors outside of the control of employees. Employees can go out of their way to exceed expectations at every level, but a financial crash, dropping demand, an introduction of a competitor product, or a negatively-received public statement by the CEO can tank profits and eliminate the bonus the employees are, by rights, due. Gainsharing eliminates this issue. Gainsharing is similar to profit-sharing in that it sets a baseline for the performance of a company and then rewards employees financially if that baseline is exceeded, typically over a month or a quarter. The difference is in what is measured. Rather than measuring company profits – which are influenced by many factors outside of the control of employees – gainsharing attempts to measure only those factors that employees directly influence. These factors may include: Company spending. Overall productivity. Customer service quality and survey results. Overall product quality. In this way, gainsharing is more directly tied to the employees’ actions. When a team works well together and exceeds expectations, the team is rewarded. When conflicts arise, productivity declines, or other factors reduce the team’s overall effectiveness; those rewards are lost. Gainsharing is most commonly used in independent organizations and often in mid-sized or smaller organizations. It’s easier for a small company with a single location and a few dozen employees to measure overall metrics than to apply one overarching incentive program to a multi-location business. Gainsharing also requires buy-in from employees. Employees operating under a gainsharing program typically have close involvement in the administration and design of the program itself. That helps ensure that the metrics measured are most applicable and are not “orders from on high” that may not be accurate to what employees care about. Critically, because gainsharing is a form of bonus, employees are always given a baseline wage. There’s no risk of underperforming resulting in a cut salary, only opportunities for benefit. It’s a reward program, not a punishment program. Different Types of Gainsharing Plans There are several different frameworks for gainsharing. Each has advantages and disadvantages, and are essentially successive iterations on the concept of gainsharing as introduced by the first plan, the Scanlon plan. 1. Scanlon Gainsharing The Scanlon gainsharing plan is the original form of gainsharing, introduced in the 1930s by Joe Scanlon, a labor organizer, and MIT lecturer. It measures the ratio of labor cost to the amount of labor produced. Scanlon identified a common issue with hourly-compensated employees: there is little to no incentive to perform more than the bare minimum per hour. If an employee is responsible for bending paperclips and gets paid a fixed amount per hour, it doesn’t matter if they bend 100 per hour or 500; they have no incentive to do any more than the minimum necessary to prevent being fired for underperformance. With gainsharing, the more paperclips the employees bend, the more of a bonus in pay they can receive. This opens up three avenues of benefit for the employees: Some will maintain the same work hours and take home more money. Some will maintain the same take-home pay and work fewer hours. Some will seek avenues for optimization and improvement to work more efficiently, increasing both. There is one primary drawback to the Scanlon plan. Specifically, it ties financial incentives to the quantity of work produced. Because speed and efficiency are prized, quality can drop without affecting bonuses. Solving this problem is outside the realm of the Scanlon plan. 2. Rucker Gainsharing If Scanlon is quantity gainsharing, Rucker is quality gainsharing. Rucker is more commonly used in industries with relatively fixed production rates or few opportunities to improve speed or output, such as healthcare, mechanized manufacturing, or direct sales. Instead, Rucker gainsharing will measure elements of quality or production other than speed and quantity. For example: It may measure the amount of waste material produced in a manufacturing process and reward more efficient use of raw materials. It may measure the number of products returned as defective and reward lower rates of returns . Because Rucker gainsharing is tied to quality rather than quantity, it encourages employees to be more judicious in their judgment and overview of quality control and put more effort into ensuring quality. However, since productivity rate is not measured, it can have the opposite effect as Scanlon, suppressing productivity in favor of quality. 3. Improshare Gainsharing One common issue with Scanlon gainsharing is that it can be more rewarding for lower-paid employees over higher-paid employees because it’s a direct ratio of the cost of labor to the production results of that labor. Improshare is a similar framework, except rather than use the labor cost, it uses person-hours for that labor measurement. The ratio of production hours to products produced forms the benchmark, which can be improved to earn bonuses. 4. Custom Gainsharing In addition to the formalized plans above, many companies have created unique variations on gainsharing. Often, an employee union can negotiate a gainsharing plan with management, or an entire organization can negotiate a gainsharing plan with upper management and executives. These plans vary but are often some combination of elements of the previous three forms. 5. Worked-Owned Business A natural extension of gainsharing wraps back around to profit-sharing. Worker collectives and worker-owned companies take gainsharing to the next level by offering all workers some level of vestment into stock options or other profit-sharing methods. With these incentives, the overall performance of an organization has tangible, though often indirect, results on the net worth of the workers involved. Much like custom gainsharing plans, there is a wide range of worker-owned structures, ranging from the option to buy discounted stocks after a certain period of working to an entire suffusion of company culture with worker-owned objectives. Overall Advantages of Gainsharing Gainsharing is an incentive program. Thus, if it works, it encourages workers to work more effectively, either in terms of raw productivity, efficiency, or another measured metric you choose to monitor. One significant advantage of gainsharing is that the bonuses awarded to employees are directly taken from the increase in profits the company experiences due to the improvements employees make. You don’t need to set aside funds for those bonuses; if the employees don’t increase productivity or efficiency enough to earn extra money (through profits or reduced expenses), there are no bonuses to pay out. Bonuses in gainsharing are paid out across an entire organization, though the proportions may vary on an equitable basis. The exact structure is left to the company and employees to determine. That helps eliminate instances where increased performance only rewards managers or executives and not the people doing the work. Different kinds of gainsharing programs, including modern hybrid plans, can be very useful in incentivizing a variety of different means of improvement. When many metrics are measured, any one of those metrics improving (without reducing other metrics) can result in a bonus. At this point, it’s worth noting the role of tools like Ghostwriter , which act as assistants in academic writing and are valued partners in such strategic initiatives. Each employee can work towards the same goal in a way that best suits them, whether it’s increasing raw productivity, increasing efficiency, reducing waste, ensuring higher quality, ensuring better service, or another metric. On a more sociological and psychological level, gainsharing programs encourage taking ownership and pride in the efforts produced by the company, even at a low level in the organization. This fosters a culture of continuous improvement and growth. It also encourages employees to feel deeply involved in the company’s success. After all, there are immediate, tangible rewards for their efforts. Additionally, when gainsharing is calculated and awarded monthly, the feedback loop accelerates, and employees can see a more direct reward for specific efforts rather than an averaged reward for various actions over a quarter or a year. Are There Disadvantages to Gainsharing? An important consideration when examining gainsharing is the potential disadvantages of such a program. There are several. First, because gainsharing is not tied to profits the way profit-sharing is, it doesn’t necessarily fund itself. If employee productivity and quality are up, but overall profits are down due to factors outside of the organization’s control (a financial downturn, a new competitor, a decline in industry interest), the company still needs to pay out gainsharing bonuses, even if it hurts the bottom line. Gainsharing also requires immense transparency in all of the metrics involved in the gainsharing process. If there’s no transparency, there’s no trust and no buy-in from employees. After all, if employees can’t see the metrics they’re judged by, how can they know whether or not they’re getting what they’re owed? In some cases, gainsharing can build an adversarial relationship between employees and management. For example, suppose management decides to implement a new process, verification step, or review that hinders productivity for little benefit. In that case, employees may view it as a way to reduce the potential gainsharing bonuses they receive artificially, and they will push back against it. Note that this isn’t necessarily a drawback to gainsharing. If management is out of touch and attempts to implement a process employees can recognize as irrelevant and detrimental, that push-back (to a receptive management team) can help realign management decisions. Additionally, gainsharing may put more onus on individuals to pull their weight, despite any personal issues they may be experiencing. Employees may, for example, be encouraged to work while sick; otherwise, the team’s productivity drops, and their bonus is put at risk. However, this can be mitigated through the careful use of measurement and ratios in productivity. Should Your Company Implement Gainsharing? Gainsharing can be a powerful way to incentivize employees and encourage more productive, higher quality, more efficient work. That said, it only works in specific situations. A massive company with many layers of management, multiple office locations, a global presence, or a massively complex service offering may be challenging to measure appropriately. Gainsharing also requires significant buy-in from both workers and management. It requires a very in-touch, participative management team, and workers need to be invested in the business’ success to believe that gainsharing is beneficial to them. Otherwise, it may be viewed as a way to suppress wages through loopholes in metrics. If your company operates on thin margins, gainsharing can be an excellent way to incentivize improvements across the board. On the other hand, if improvements in employee productivity don’t necessarily translate into increased profits, gainsharing might be expensive to maintain. It’s impossible to make a single determination from our perspective whether or not your company should implement gainsharing. You can examine the options yourself directly and make that determination. Suffice it to say that, in the right circumstances, gainsharing can be highly beneficial. However, it’s not universally beneficial; ensure your company can benefit from it before investing in its implementation. Do you have any questions or concerns about gainsharing? Would you like a little more clarification on the types of gainsharing that we mentioned today? Is there anything that you’re not quite fully grasping? If so, please feel free to leave a comment down below, and we’ll get a conversation started! We’d be more than happy to clear up any concerns and answer any questions you may have on the topic!
- Accounting Positions and Job Titles: Which Do You Need?
All companies have to deal with finances sooner or later, which means working with accounting and financial professionals. As a company grows, it may no longer be sustainable to work with an external accountant or CPA to manage finances. It becomes a large and complex enough situation that an internal hire, familiar with your organization and in a position to maintain an ongoing flow of information and paperwork, may be much more beneficial. When building out your accounting department, you’ll need to hire people with different skill sets and experience levels, to handle various aspects of finances. The question is, what roles are out there, and which are necessary for a company? Benefits of Partnering With An Accounting Recruiter Chief Financial Officer The chief financial officer is the top-level employee in charge of all things finance. They work directly with the CEO and other C-levels and directors to guide the long-term goals, financial benchmarks, and decision-making necessary to bring a business into financial solvency or increase profits year over year. CFOs are among the most common accounting job titles because almost every company with an accounting department has one. However, the responsibilities and duties will vary significantly between a smaller startup or a major Fortune 500 company. Chief Accounting Officer Some companies choose to use the CAO designation instead of the CFO designation. There are three situations where this may be the case: The company needs two C-level money managers; one to make long-term decisions (the CFO) and one to guide the short-term and daily operations of the accounting department (the CAO). The company uses CAO and CFO interchangeably, and they might as well mean the same thing. The company already has a CFO, where the F stands for something else, and they want to avoid confusion. This is quite rare; very few alternative C-level titles use F. The CAO generally has similar duties to a CFO, though the focus may be different within different companies. Chief Revenue Officer The Chief Revenue Officer (one of many CRO-abbreviated C-levels) is another variation of the top-tier financial officer. In companies where there’s a difference between CFO and CRO, the CRO is generally responsible for one thing and one thing only: pushing plans and changes that increase revenue. Essentially, their job is to be ruthless in pursuit of profit and have their plans tempered by other C-levels whose interests lie in preventing the damage the unchecked CRO can do. Vice President of Accounting/Finance If an organization is large enough that its executive team has stratification, the accounting department may have a vice president. The VP of Accounting, VP of Finance, or VP of Finance and Accounting are all interchangeable terms. The VP typically acts as an interface between the C-suite accounting executive and the Director or upper management roles of the accounting department. Depending on the company, they translate high-level plans into low-level action or facilitate doing so. Director of Accounting/Finance Some companies lack a VP; others have a VP sitting between the C-level and the Director. Directors of Accounting or Finance are often more in touch with specific policies and techniques than top-level strategic vision. However, the Director and the CFO are essentially the same in some companies. A lot depends on the organization’s size, as you might expect. Controller/Comptroller The Controller and Comptroller are essentially the same role. They manage accounting staff, maintain overall control over an organization’s assets, manage transaction processing, handle billing, payroll, benefits management, and collections, maintain a ledger, assist auditors (both internal and external), and report on the organization to the SEC. They are often less senior than Directors, VPs, and C-levels but may also be the top-level financial or accounting officer. The difference between Controller and Comptroller is one of organizational definition. Controllers are typically seen in for-profit companies, while Comptrollers are seen in governmental and non-profit organizations. Sometimes, the comptroller is seen as slightly more senior than a controller, but in most respects, they are identical. Senior Accountant Senior Accountants are either the lower end of upper management or the top end of middle management. They are responsible for reviewing the work of the accountants and clerks employed by the company. They report to the controller/director/VP/CFO and act as a conduit for instructions from the higher-level roles. In some cases, they may be similar to standard Accountants and are only given the title of Senior Accountant out of seniority in the organization. This position may also be known as Staff Accountant, though in particularly large companies, the two may be similar yet distinct positions. Auditor Auditors may be internal or external. Auditors are responsible for going over the paperwork and receipts of a company’s finances and checking for signs of fraud or violation of policies, regulations, or laws. Internal auditors typically perform minor investigations into issues such as missing funds in a retirement account, missing paychecks, or compliance violations. External auditors investigate a company on behalf of other organizations, often the SEC or another governmental organization. Forensic Accountant Forensic accountants are typically specialized auditors. They have training in financial investigations and preparing documents so that they can be presented in court. Such accountants are often external, hired by law enforcement or government agencies to perform audits and present their evidence in a court of law. Typically, your company will not need to hire one outside of situations of an employee committing financial fraud against you. Accounting Representative Accounting Representatives are most often found in B2B organizations but may also be found in B2C companies. They are typically the individual who represents the company on financial matters in dealings with their clients. They create and maintain customer accounts, maintain communication with clients and solve financial issues, create invoices, audit client relationships, and collaborate with other department heads. Accounting Manager Accounting managers are similar to Senior Accountants. They are the head of the accounting department’s day-to-day operations. They oversee financial methods and transactions, ensure compliance from the company’s accountants and lower-level financial employees, and enforce financial policies. They’re a middle-management position and are nearly indispensable in many organizations as a point of contact between staff and management. Bookkeeper Bookkeepers are accounting professionals who take on many roles for small and mid-sized companies. Their duties encompass many of the entry-level and low-level roles and are broken up across multiple employees in larger organizations. Bookkeepers process and record transactions and financial decisions, monitor and record sales, payroll, invoices, accounts receivable, accounts payable, and more. Often, their work – “the book” – will be the central ledger for a company and will be used to make decisions when the upper management needs data to drive their decisions. Accountant The general Accountant role is a catch-all for the people who do day-to-day accounting and financial work in an organization. They are not management, but neither are they entry-level. They make up the bulk of the daily tasks a financial department is responsible for. Often, they are among the most common financial roles. Accountant makes up 21% of financial job titles in terms of search volume. As an extremely broad employee class, accountants may be responsible for virtually any non-management duty relating to money in a company. Tax Accountant Tax accountants are specialized accountants who can also serve as auditors and bookkeepers. They are trained in business tax law and the tax code for federal, state, and local levels of government. Their primary duty is to review and ensure that a company complies with tax law and takes advantage of any tax regulations they can. Tax accountants are typically working in favor of the company, though adversarial tax auditors also exist as a similar role, with auditing added to their duties. Financial Analyst Analysts are generally data analysis specialists rather than accountants. They take data from various sources and analyze trends, monitor the flow of money and other resources, and make predictions based on data to determine what level of direction is needed. Their reports help the upper management and executive-level employees make more accurate decisions. They will often work closely with senior accountants, bookkeepers, controllers, and other management staff. Certified Public Accountant Certified Public Accountants, or CPAs, are an extremely common accounting profession. CPAs receive licensing from their state to perform financial duties for clients. CPAs can work with businesses as employers or as clients. As employers, a CPA is more like a standard accountant or tax accountant, or even a bookkeeper. There’s a lot of overlap in roles and duties. CPAs are trained and licensed and can perform most financial duties short of management. As clients, CPAs typically work with smaller businesses to handle financial records organization, some bookkeeping, and tax management. In these cases, the company won’t hire the CPA internally and will still have an accountant to work with the CPA to gather paperwork and information as necessary. Accounting Clerk Accounting clerks are an entry-level form of financial employee. Unlike many other roles in an accounting department, clerks are not necessarily required to have certification, though most will have at minimum a college degree in accounting or business finances. Clerks are responsible for the day-to-day duties that keep money flowing through a business. They record transactions to a ledger, perform financial data entry, update databases, process data backups, and generally handle record-keeping on a front-line level. In many cases, organizations, including academic settings, partner with services like ghostwriter österreich , which assists in writing academic papers and becomes a valuable partner in ensuring data is presented accurately and professionally. Their work will be reviewed by an upper-level or management accountant and verified for accuracy. Accounts Payable Clerk Accounts Payable Clerks are a form of clerk more commonly seen in large enterprises. They are specialized clerks working with one specific kind of financial transaction – in this case, accounts payable, the money the company pays clients and service providers – and they handle only that kind of transaction. There are numerous specialized clerks, including accounts receivable clerks, substitute clerks, payroll clerks, etc. Clerks generally handle data entry and other low-level, daily operational tasks. Whether or not an organization needs specialized clerks or just a single accounting clerk depends on the scale of operations. Accounts Receivable Specialist Accounts Receivable is the money a company invoices from others, including clients. This job title is representative of the same thing as clerks; “specialist” is simply an alternative term. It’s meant to avoid the potential negative connotations of using the word “clerk,” and there is otherwise little difference between them. Accounting Intern At the lowest level of the corporate ladder is the accounting intern. Interns may be college students or fresh graduates, working with a company for little or no pay to build experience, earn college credits, or otherwise get a foot in the door. They may move on to work with the company or as an accounting clerk with another organization. Which Roles Does Your Company Need? It’s impossible to say which roles your company needs, as it varies from company to company. Very small businesses often don’t need anyone to handle accounting or may need a single bookkeeper or clerk to handle data entry and record-keeping, while they hire an external CPA to handle taxes and other management. Small businesses may hire an upper-level financial director or C-level and one or a handful of accountants to manage. Again, the scope and scale depends on the organization. The larger an organization gets, the more defined its roles become, and the more distribution of duties ends up happening. A mid-sized company might have a CFO; an enterprise might have all three of a CFO, Director, and VP. A mid-sized company might have a Senior Accountant, several Accountants, and a dozen accounting clerks and interns. An enterprise might have hundreds. For example, a company like Disney has hundreds of open roles, with likely thousands of employees across the entire organization’s various financial departments. What it all comes down to is need. As your company grows, identify financial bookkeeping and management needs, and hire people to divide labor until it’s reasonable. That may mean having five employees in your accounting department, or fifty. Benefits of Partnering With An Accounting Recruiter
- Are You Providing Growth Opportunities for Employees?
Today’s recruiting environment is vastly different than five years ago, and it’s continuously evolving. Disengaged employees, Baby Boomers leaving and Millennials arriving, candidate experience , and employer branding are just some of the issues employers must keep pace with to keep a competitive advantage in recruiting. To attract and retain talent in the shifting sands of recruiting now, employers have to use the most current recruiting and culture building practices. One of the most important is providing opportunities for employees to grow. Why Provide Growth Opportunities for Employees? The potential for growth is a huge motivational factor in engagement. When you need top talent to drive your business growth, you need to look at your employment opportunities and work environment from the candidate’s and employee’s point of view. Is there training offered on a regular basis? Are there opportunities to earn bonuses and other financial incentives? Are there programs, policies, and practices in place to support employees’ personal and professional growth and satisfaction? If you answer anything other than a resounding yes to these questions, you are not providing growth opportunities and will not have the kind of magnetic employer brand needed to compete in today’s employee-driven job market. What Kind of Opportunities? Four types of growth opportunities are important to candidates looking at continuing their careers with your company, as well as the employees who already work for you. Financial, career, professional, and personal opportunities for growth provide more reasons for employees to give extra effort and enjoy working for your business than just a title and a paycheck. Opportunities for financial growth mean more than just regular salary increases for top performance. Is your company paying employees for referring top candidates? Are there bonus opportunities for exceptional performance with customer service, teamwork, product development, and other key business drivers? If your company doesn’t have a budget for financial incentives, it becomes even more important to provide other growth opportunities. Many career-minded professionals want to know there’s opportunity for advancement in the company they help build every day. Professional growth opportunities for employees are as important to ambitious candidates and employees as opportunities for advancement. Training to improve skills and gain advanced knowledge, opportunities to work on special projects and meet key clients, assignments to lead teams and work on committees are an important part of building and sustaining engagement. Work environments and company cultures that incorporate opportunities for personal growth are important to veteran employees and new hires alike. Building fun and appreciation into the work environment, whether on a shoestring or with a large dedicated budget, creates motivation and keeps employees from becoming bored or disenchanted with work. What the Research Shows Research published in the Deloitte Review Issue 16, discussed by Josh Bersin , principal of Deloitte Consulting LLP and founder of Bersin by Deloitte, shows retention and engagement is a top issue for business leaders. With 80 percent of organizations believing their employees are overwhelmed at work and 70 percent of Millennial employees who want to be creative at work, providing growth opportunities has become a pressing issue for workforce development. Changes in the workplace, such as 24/7 access with email and mobile communications, diverse employee populations, and an accelerated and transparent job search process and job market make attention to engagement a requirement to remain profitable and competitive. Bersin explains that it’s not enough anymore to just issue employee engagement surveys to monitor culture and engagement. There needs to be modern, actionable solutions to workforce engagement, and that’s where growth opportunities come in. It’s part of what he calls making work irresistible to impact engagement from a core level. Growth opportunity is one of five elements that drive engagement today, along with meaningful work, hands-on management, positive work environment, and trust in leadership. You need to look at your work environment and make sure you are providing growth opportunities like training and on-the-job support, facilitated mobility, and self-directed, dynamic learning in a high-impact learning culture. When candidates look at your company and your competitors, how does your company compare? Conclusion When candidates look at your company and your competitors, how does your company compare? If you can’t quickly say that you are a desirable company for candidates, your competitors will employ the top talent of the candidate pool. The landscape of recruitment and employee engagement has transformed, with growth opportunities becoming the bedrock of a vibrant work culture. The message is clear: employees crave a work environment that not only recognizes their efforts but actively invests in their personal and professional development. From financial rewards to career advancement and personal enrichment, a multifaceted approach is no longer a luxury but a necessity to draw and retain the high-caliber talent essential for a company’s success. To stay ahead, it’s crucial for your company to not only offer but actively promote growth opportunities that resonate with today’s workforce. The challenge isn’t just to attract talent but to cultivate an environment that encourages continuous learning and development. Are you ready to transform your workplace and lead the charge in employee satisfaction and retention? Contact us now to learn how we can help you build a better team.
- IQ and Aptitude Tests: Are They Legal in Your Hiring Process?
Many different laws cover the employment process. Navigating the laws and compliance problems that can arise is a critical part of a successful hiring team. When developing a hiring process, you may encounter a variety of tests and assessments, or mention thereof, that can be used to refine your candidate pool and help pick the most appropriate people for a job. The question is, are those tests legal? If so, which ones? Are there legal issues you need to watch for? Let’s discuss. The Value of Legal Restrictions Many hiring managers and business owners may view legal regulations as an unnecessary burden. Perhaps they don’t see the value of the laws, or they feel that those laws don’t apply to them because they aren’t going to misuse the tool or system the law specifies should not be used. Many people fail to realize that these laws are written in the blood, sweat, and tears of the individuals harmed by them. An assessment that is deemed illegal is often considered as such because it has been willfully used as a tool for discrimination. That’s why pre-employment tests are regulated but legal. Some tests check for valuable, non-demographic information, like skills and ability to do a job. Others are based on faulty or fraudulent science, which may or may not be intentionally discriminatory. A related issue comes up with tech and automated systems quite frequently. Machine learning algorithms look for patterns and associated outcomes, but they do not have logic or sanity checks. An algorithm will also spot patterns that you, as a rational human, can understand aren’t relevant. For example, a machine learning algorithm might determine that people with too many vowels in their names don’t perform as well in their jobs. You and I know that’s irrelevant, but the machine doesn’t. If the machine is operating without oversight, your candidate pool can be skewed by this data for no real benefit. Legal restrictions on specific tests exist for a reason, no matter how well you think you can circumvent that reason. In these cases, it’s better to comply than to try and beg for forgiveness later. Types of Pre-Employment Testing The title mentions two kinds of assessments: IQ tests and Aptitude tests. These aren’t the only tests out there, however. So, before we get into the specific legality, let’s talk about the different kinds of tests you might be tempted to apply. Aptitude Tests Aptitude tests are often called job knowledge tests or skills tests. They are assessments used to judge the candidate’s ability to perform their duties. You might test a potential IT hire on their firewalls and network architecture knowledge. You might test a sales candidate on their ability to be persuasive when talking about a product. These tests are often professionally-developed and available for purchase to use within your organization. They are also often centralized, and a given candidate may have taken the same test multiple times if they’ve made it to the interview stage with various companies. IQ Tests Many people believe that IQ tests are a test of intelligence, but that’s not strictly accurate. IQ stands for “intelligence quotient” and is poorly defined. In fact, IQ tests are often heavily based on cultural understanding. Two examples might be: Knowing who a particular historical figure is. In America, it makes sense to know who George Washington is. In Japan, not knowing who he is doesn’t say anything about your intelligence. Conversely, someone in Japan is more likely to know Emperor Jimmu than someone in America. Assuming an agnostic and fundamental “logic” to the way people think is a basis of intelligence tests. Yet, study has shown that the fundamental way you think is influenced by your culture and cannot be generally assumed. While some variations on IQ tests still exist and are in use today, most of the time, they aren’t based on anything truly relevant and end up causing more harm than good. Personality Tests Personality tests are assessments used to judge the overall character traits of the people you’re examining to hire. These can test relevant (or irrelevant) qualities to your open role. For example, you might want to assess an individual’s disarming personality if they’re going to be a front-line support agent who benefits from being able to defuse a situation. However, a disarming personality likely isn’t relevant for an IT developer role. This dichotomy is where personality tests can get into hot water. Your assessments need to be relevant to the role. Testing someone on – and making decisions based on – characteristics that aren’t relevant to the role can be considered discriminatory. Since we’re not discussing personality tests in detail today, suffice it to say that much of what we discuss will also apply to them. In particular, all assessments need to be relevant above all else. If they can be misused, even if you aren’t misusing them, it opens you to risk and liability. Integrity Tests Integrity tests assess a candidate’s honesty, integrity, and ability to be truthful in situations that involve risk. They test responsibility, sense of duty, ability to follow rules, morality, etc. Legal challenges over the years have questioned whether or not integrity tests are discriminatory. For the moment, they are: “The EEOC and the parallel state human rights agencies have determined that integrity tests do not have a discriminatory impact on applicants. However, it’s important that employers equally test each applicant who could have unsupervised access to cash, inventory or trade secrets once hired.” – HireSuccess . While an integrity test may not be illegal, it may not be helpful. Most integrity tests have an obvious “right” answer or behavior they’re looking for. That means that your integrity assessment isn’t genuinely assessing your candidate’s integrity, so much as it is their ability to navigate the test itself. Emotional Intelligence Tests Emotional Intelligence is a relatively new wave of concern amongst businesses. A growing understanding of emotional intelligence, emotional awareness, and how these emotions affect one another has driven a greater awareness of how to use these emotions in the workplace. Emotional intelligence assessments can be quite beneficial if the results are put into context. Emotional intelligence can also be trained. They primarily predict outcomes in teamwork and the ability to collaborate, resolve conflicts, and self-assess. However, much like integrity tests, they may not be accurate; people don’t necessarily have the self-awareness to answer currently or honestly. Physical Ability Tests Physical ability tests are one of the most clearly-defined assessments to demonstrate the core point: assessments must be relevant. Suppose you’re hiring for a job on a construction site where your new employee will need to haul sacks of concrete and heavy boards, operate jackhammers, and perform physically. In that case, a physical assessment may be relevant. On the other hand, an office job with physical lifting requirements is more likely to be deemed discriminatory against physically disabled individuals. Physical performance, when relevant, is extremely important. After all, you don’t want to hire someone who is physically incapable of performing their duties. However, physical limitations do not mean all jobs are off-limits. Many accommodations can be made for particular roles, and in many cases, judging an individual by appearance or by “on paper” performance may be inaccurate. The Legality of Aptitude Tests As mentioned above, aptitude tests can be highly relevant for estimating the candidate’s ability to perform in their role. There are two legally-enforced regulations governing these tests. The first is that every question on the test – at least those used in your determination – must be relevant to the role. If you give a general assessment to every candidate that includes questions about sales and customer service, this is great and relevant for sales and service roles but less so for management, developer, IT, or other roles. Using the results to decide for one group will be relevant; using them for the other will be inappropriate. The second is that the assessment should be given uniformly to all candidates in a given phase of the hiring process. You must provide every candidate who reaches that stage of the hiring process an equal opportunity to demonstrate their skills and abilities. If you only assess certain people – even if the group you choose to assess is chosen randomly – the difference in data used to make a judgment and hiring decision is discriminatory. The primary basis for the legality of aptitude tests, and the rules mentioned above, comes from a Supreme Court case from 1970. The case, Griggs v. Duke Power Co. , made an example out of discriminatory practices that used aptitude tests as a racial gatekeeper, preventing black employees from rising in the company ranks. Additionally, aptitude tests must be professionally developed to avoid discriminatory questions or bias in the way questions are asked. In general, paying for a framework that provides assessments that you give to every candidate will be fine; creating a test of your own will not. The Legality of IQ Tests IQ tests fall under the same ruling and same jurisdiction as aptitude tests. The same court case ruled that any assessment given to candidates must be: Provided to all candidates equally, at the same point in the hiring process. Developed professionally to minimize bias in the questions asked and their format. Relevant to the role you’re filling with the hiring process. With these rules in mind, the reason IQ tests are often considered less legal is two-fold. First, IQ is commonly defined as an outdated and often irrelevant judge of “intelligence” through the lens of trivia knowledge and cultural absorption. Intelligence as a general concept is tricky to define and is highly dependent on lived experience, cultural origin, and societal pressures. Moreover, many factors of IQ can be traced back to protected categories, such as racial treatment or socio-economic status. Second, IQ tests are often difficult or impossible to relate to job performance. It’s one thing to ask candidates how they would de-escalate a situation as a relevant question for a customer service position. It’s quite another to ask candidates what number in a series of numbers is the next logical number in the sequence. While “logic” might seem unbiased, it’s heavily cultural. IQ tests can still be found in use, from tech companies like Google to the U.S. military assessments, but these are very carefully designed to be job-related and are more defensible. Whether or not they’re genuinely effective is another story, however. The Guiding Rules of Pre-Employment Assessments In the end, it all comes down to those three rules set forth by the Supreme Court. Any assessment, no matter what qualities you’re intended to assess, needs to be given equally across all candidates, it must be professionally developed, and it must be relevant to the role you’re looking to fill. It’s your responsibility to ensure that the hiring process is not discriminatory. Any time your assessment can be questioned on one or more of those points, you may be looking at an illegal assessment. While it may not be challenged in practice, it opens up your company to liability, and you are likely to lose any sufficiently well-prepared court case. In the end, legality is only one of several factors you should consider whenever you’re issuing assessments to your candidates. It’s also critical to monitor assessment results and the overall ability of those assessments to predict job success. If you find that an assessment doesn’t correlate to success in the role, the next question is whether or not it’s even worth issuing the test in the first place. After all, it’s an expense and a time-consuming part of the hiring process, and if it’s not improving your results, it isn’t worth keeping around. Do you or your company have any questions about any of the listed pre-employment assessments or if you should implement them into your hiring process? If so, please feel free to leave a comment down below, and we’ll get a conversation started! We’d be more than happy to assist you however we possibly can!
- 20 of The Most Creative Candidate Recruitment Campaigns
Any time you have a job opening that you need to be filled, you need to find the most qualified people to fill it. Sometimes this will be internal promotions, but most of the time, you’ll be looking at a much larger audience to find the perfect fit. Attracting that audience is difficult, given the constant demands on everyone’s attention and the difficulty of promoting an opening in a field full of similar openings. We’ve written before about creating compelling, creative job advertisements . If you have trouble putting those tips into practice, it can be worthwhile to get some creative inspiration. Thus, we’ve gathered twenty of the most compelling, creative, and interesting recruitment campaigns that we’ve seen. Learn How We Can Help You With Recruiting 1. Great “Grafic Deigner” Horizon FCB, a health agency based in Saudi Arabia, ran a job posting with text that was intentionally riddled with issues: “There are 10 mistakes in this ad. If you beleive you’re a great grafic deigner with an eye for details, Spot these mistakes, than sent us your feedback on the pelow address including your CV & portfolio” Among the many mistakes in the ad were typos, spacing issues, kerning issues, and centering issues. This encouraged people to showcase their attention to detail, reach out to the email address attached to the ad, and put themselves into contention for the job listing. This ad is a great way to include a basic skills test before an application even arrives. 2. Berrge Tattoo This tattoo artist shop was recruiting a new artist to work with them and decided to use a rather creative way to test them as part of the application process. They printed out their job ads on a paper that had the texture and pattern of skin with slightly lighter spots that faintly indicate a QR code . Phones can’t read the QR code as it is, but if the aspiring artist fills in the blanks with a pen, it becomes functional. This is a self-filtering test for one of the most important requirements for a tattoo artist: a steady hand with ink. 3. Microsoft Math One of many job advertising campaigns over the last decades, Microsoft decided to add a challenge. They printed a one-page job posting with the salary, job duties, and requirements. However, they obfuscated their contact information for the position. Rather than a simple web URL or phone number, they published an equation. The equation, when solved correctly, would produce a phone number that the applicant could call to put their hat in the ring. Again, this is a great way to add interactivity and a self-filtering process to the first phase of job applications. 4. The Bletchley Park Crossword Some job advertising goes back decades. In this case, Bletchley Park was recruiting codebreakers during World War II, to work alongside greats like Alan Turing in attempting to crack German codes. In another brilliant act of filtering and skills testing, they published a crossword puzzle with a few unique rules: the clues might require anagrams with no indication of whether this was true, the clues were obtuse and difficult even by the standards of the day, and most importantly, you had 12 minutes to do it. You can see the crossword here . Those who did it successfully were invited to work with the secret organization. Could you join them? 5. The World’s Greatest Salesman In 2010, the sales company Ogilvy & Mather was looking for high-talent salespeople to join their company. Knowing that the world of sales is full of people who would jump at the chance, they put a high barrier to entry for an application. Aspiring candidates had to produce a video of themselves selling a brick to the company. To advertise this campaign, among other things, Ogilvy produced this YouTube video . It’s dramatic, it’s high-impact, and it’s extremely memorable even by today’s standards. It also worked well for them. 6. LEGO Brick Factor LEGO is a worldwide sensation, a timeless toy that brings joy to millions. It also requires constant innovation and design to keep its kits unique from year to year. To accomplish this, LEGO requires Master Builders, people with creativity to design new models within specific constraints. To find the right people for the job, LEGOLAND Discovery Centers host a competition called Brick Factor , in which competitors would build unique models throughout these three events, and are judged by a panel that includes the two most important groups: other Master Builders, and children who just love LEGO. The winner of the competition is hired on the spot. 7. The Cisco Tribe Cisco is a global tech company, and its workforce is as varied and diverse as the planet we live on. They showcase this through their recruitment campaigns, particularly with hashtags like #WeAreCisco and #BeYouWithUs. Real employees discuss company culture and their lives outside of the company, portraying many of the benefits of working with Cisco. You don’t have to conform to the company to thrive; you can simply be who you are, and still be valuable to the company. Though this campaign was started years ago, Cisco keeps it going to this day . 8. Eurowings Matching Eurowings is an airline based in Germany with an award-winning recruitment campaign using the novel platform of Tinder. Tinder, a dating app, presents the user with profiles for people of their preferred orientation and allows them to swipe left to ignore or right to connect. The trick is, the profiles were for jobs, not for people, and swiping right “matched” the user to the job, giving them more information about the opportunity available to them. It was an intensely creative use of a new platform most wouldn’t think to use for recruiting. 9. Quixey’s $100 Quixey, a Silicon Valley startup, needed to compete with tech giants to attract clever software developers. To do it, they issued a month of challenges lasting one day each. They produced a piece of code with a bug in it and challenged people to find and fix the bug. Winners got $100, a t-shirt, and an opportunity to apply for the job. The campaign was creative and the incentive was great, though their method of advertising for the campaign fell a little flat, and the company eventually folded for unrelated reasons. 10. Google’s Challenges Google is well-known throughout the tech industry for picking up the ideas of the people who came before and running with them. They weren’t the first company to use challenges to attract applicants, but they’re well-known for their cleverness and consistency in their ads. Everything from a billboard with a cryptic message leading to a numerical URL with a job application, to their interactive coding challenges , remain written in history as some of the best job advertisements ever devised. 11. Volkswagen’s Sneaky Advertising VW needed to hire mechanics, and they knew one thing: to hire skilled trades, it’s best to reach them where they spend their time. Their campaign was extremely clever and used resources only they would have. They intentionally broke a group of vehicles and took them to mechanics and shops across the country. The trick? Each vehicle had a job advertisement hidden in the undercarriage , where only the mechanic working on it would see it. The campaign was clever and it worked, attracting a variety of skilled mechanics for their open positions. 12. Red 5 Studio’s Direct Targeting Sometimes you don’t know who you need to hire, just what they bring to the table. Other times, you have specific candidates in mind. Red 5 Studios, a gaming company, identified 100 top candidates for their studio, the “dream team” they would love to hire. They specifically researched these 100 people, created customized messaging for them, and reached out directly. The result? Nearly a 100% response rate from each of the people they messaged. 13. Ikea’s Career Instructions Another example of reaching people where they spend their time. Ikea expanded rapidly in the Australian market in the early 2010s, and they needed to hire to staff those new stores. To do so, they targeted Ikea shoppers. They created a set of “ career instructions ” in the style of their assembly instructions, and inserted them into the flat packs for their furniture. Anyone who purchased such furniture during that time was bringing that job opportunity into their own home themselves. All told, they received 4,200 applications and hired 280 candidates from the campaign. 14. The Swedish Army Cares The Swedish army wanted to recruit people with a selfless instinct to help others. To accomplish this task, they crafted a clever social experiment. They put a large black box in a public square, and let someone enter it once an hour. Left alone inside and trapped in this box, they were stuck… unless someone else stepped up to take their place. To add to the experiment, the inside of the box was streamed online, to build publicity and get people invested in the people inside. They aimed to get 4,300 applications from the experiment , but ended up with nearly 10,000, not to mention all of the free media coverage. 15. The British Army Flipping Tropes The British Army’s roster has been falling, and they decided to target Millennials to sign up. To do so, they crafted a series of vintage-looking recruitment posters as part of a campaign. These posters target millennial stereotypes (“Me Me Me”, “Snowflake”, “Class Clown”) and flipped them on their head, pointing out the good attributes of being self-confident, focused, and compassionate. The campaign received a lot of backlash in the media , but it worked, spreading a lot of awareness and getting a much-needed recruitment push. 16. BJL Providing what People Need Everyone has needs. Sometimes those needs are transient, which is what BJL – a marketing firm – took advantage of. During a popular awards show, attendees needed access to the internet, and they checked out the publicly available Wi-Fi in the area. BJL provided the strongest local Wi-Fi signal, with a landing page that redirected users to a careers page before allowing them to go further. It was a tremendous success, with some CVs coming in before the night was over, and more in the following days. 17. Matsushita Electric’s Careful Positioning Japanese electric company Matsushita Electric took a page out of VW’s book: reaching potential candidates where they spend their time. In this case, they carefully positioned their job advertising at the top of electrical poles that needed work, so that when workers arrived, they would see the opportunity for a better position. At five meters off the ground, they were guaranteed to be qualified applicants that are sending in their resumes. 18. Shield Security Hijacking Technology Shield Security is a private security company that needed to hire new people. To target existing security personnel, they simply sent their employees on flights. As those employee’s luggage was scanned, the security tech monitoring the feed would see, in metal reflective letters visible only on the x-ray machine, information on how to get a job with their company. Poaching competitors is a time-honored tradition, and this is an innovative way to go about it. 19. Toggl Leveraging Social Success For a time, Facebook quizzes were all the rage. Toggl made use of one, developing a personality quiz that gave the people taking it a variety of different results. The low barrier to entry encouraged applicants, while the self-filtering of the quiz helped people engage with the opportunity and the work they would do for the company. It was an overall successful strategy and resulted in talented new employees. 20. Join the Band Another example of using an unorthodox channel to reach people: Spotify. The streaming music service was looking for a new developer, but rather than promote a typical job listing, they created a customized playlist and circulated it . The playlist is an eclectic set of music, but what’s important here is the song titles. When put together, they spell out a call to action for developers to reach out. It got someone the job, that much is certain. Your Turn These are just 20 of the countless creative recruitment campaigns throughout history. Learn How We Can Help You With Recruiting
- What is Evidence-Based Hiring and How Can You Use It?
If you’ve never heard about evidence-based hiring until now, you’re probably wondering what it is. After all, isn’t all hiring presumably based on evidence? You read a resume, perform an interview, use skills tests, and build a body of evidence that the person you’re considering hiring is skilled and worth your investment. In truth, you’re half-right with this assumption. Evidence-based hiring starts there but extends beyond your interactions with a single candidate. So, what is it exactly, and how can you use it? Read on to find out. What is Evidence-Based Hiring? Evidence-based hiring is a process that uses evidence to make hiring decisions. Simple, right? Truthfully, evidence-based hiring is a complex topic. It’s heavily rooted in organizational psychology and measuring key metrics over time, such as job performance, job satisfaction, and overall productivity. “In simplest terms, an evidence-based hiring process incorporates the factors that are the most predictive of job outcomes. We call it “evidence-based” because it is based on the evidence compiled from extensive research in organizational psychology. This evidence gets used to determine scientifically which factors are more likely to predict job performance than others. By building a hiring process that incorporates more predictive factors and weights them more heavily, organizations can improve their hiring outcomes.” – Criteria . The goal of evidence-based hiring is to gather evidence of the short-term, medium-term, and long-term results of your hiring decisions based on numerous factors. You can then determine which factors are most influential in the long-term success of your employees and leverage that information to hire more employees with better-predicted outcomes. The core principles of evidence-based hiring are: Use the best available evidence and data to support hiring decisions, and guide them in a more long-term profitable direction. Identify the personal attributes of an individual that are most predictive of long-term success, and look for more people who share those attributes to hire. Build an objective framework for hiring in the future, which can look for the attributes and evidence indicative of a promising candidate without causing adverse impact or other discriminatory hiring decisions. Iterate upon data gathered over time to adjust decision-making for maximum positive outcomes. The ongoing quest to support these principles is the guiding light of evidence-based hiring and recruiting practices. What Are the Benefits of Evidence-Based Hiring? Evidence-based hiring requires long-term measurement of consistent data points, with a correlation between factors present during hiring and factors present throughout an employee’s career. It has many benefits, but what are they? You fill vacancies in your workforce more quickly. One of the most tangible benefits of evidence-based hiring is having a more extensive array of data points you can use to make a hiring decision. With traditional hiring, you look at a list of skills, work history, accomplishments, and other personal details. You combine those with whatever the candidate has written in their cover letter (if you read them at all) and what impression you get out of them during interviews to make a decision. This is, by necessity, somewhat biased and relies on gut impressions and feelings. With evidence-based hiring, you look beyond the surface and into metrics that might not be obvious at first glance or might not be something commonly found on a resume. These attributes strongly correlate with ongoing success within your organization, so they help you filter through your candidates more quickly. A faster hiring process results in a more robust workforce, established faster, and less time and money spent on the hiring process itself. You save money on the hiring process. In the business world, time is money. Many job boards require payment to host a job ad, job marketing costs money, and every day you spend short-staffed costs your business money in the form of productivity and other results. Thus, the faster you can make a decision for hiring, the faster you can fill vacancies and the less money you spend on filling open roles. On top of this, every part of the hiring process costs money. You may need to pay travel expenses for interviews, pay time for HR managers to conduct those interviews, pay for skills testing and hiring platforms and software, and more. All of these fees add up. Moreover, they increase by the number of candidates you process; every candidate you interview and don’t hire costs your business money. By reducing the number of candidates you process, you reduce the expenses associated with filling an open role. You reduce turnover and increase overall employee satisfaction. The primary motivating factor with evidence-based hiring is long-term job performance and satisfaction. It’s not a good outcome if your employees only stick around for a couple of years before leaving. So, you seek out the high-performing individuals who stick with you for their careers and look to find more people who meet those criteria. This way, you build more institutional knowledge, more familiarity with your products and your customers, and a deeper understanding of your business as a whole, inside and out. Satisfied employees don’t leave, which reduces the need to find more replacements, with the expense that adds as well. You increase productivity and customer satisfaction. Employees who feel secure in their job and are happy will be more productive, both as individuals and when working as a team. Evidence-based hiring allows you to build high-performing teams , increasing productivity and the ability to navigate a changing business environment with ease. Deeper familiarity with your business leads to more empowered employees, which leads to a better product or service and more satisfied customers. One question remains: how can you use evidence-based hiring to gain these benefits? Here’s the process. Step 1: Identify Metrics to Monitor The first thing you need to do to set up evidence-based hiring is to identify the key predictors of long-term success within your organization. Most of the time, these indicators will be relatively standard, if not across all workers, at least across the industry. That said, in larger companies, you might need to look at specific departments or specialties. For example, the indicators of success in a customer service representative and a marketer will be different. Consider indicators such as: Personality traits . Are they introverted or extroverted? Are they conflict-averse? Are they natural leaders? Creative thinking . Are they natural problem-solvers, or do they tend to wait for someone else to fix issues they encounter? Do they think outside the box to perform their tasks? Teamwork . How well do they work with a team, either as a leader or follower? Conflict resolution . How do they handle being challenged or challenging an idea they know from experience won’t work? There are nearly as many attributes as there are people in your organization. The key is to look for commonalities amongst your highest-performing, most-satisfied, and longest-lasting employees so you know what to replicate. Remember that not all employees need to have the same attributes, however. If every employee in your organization is a Type A problem-solving leader, you’re likely going to ratchet up the conflict and reduce productivity as they butt heads constantly. Step 2: Set Up Tracking and Data Harvesting Once you have an idea for the attributes you want to track, measure, and look for, you need to set up some way to monitor them. Look for those attributes in new hires, long-time employees, and candidates. Often, you will need to use specially-designed questions and surveys to gather this kind of information. Whether you integrate it as part of an annual performance review, send out random surveys to your employees, or keep managers in contact with employees and have them be the judge, you need consistency in data management. Step 3: Make Decisions Based on Evidence It takes some time, but eventually, you will have a body of evidence and a method to analyze new candidates for the qualities you want to see in a new employee. Integrate searching for these qualities into your hiring process. For example, you might: Utilize a personality test to check for certain inherent attributes as part of the application process. Deliver a practical skills assessment that challenges problem-solving and creative thinking skills and judge results based on established criteria. During an interview, directly talk to the candidate about situations or factors relevant to your chosen qualities. The goal here is to seek out as close a match as possible to the list of qualities you want to see. Ideally, hiring a candidate with those qualities will leave you with a candidate ready to hit the ground running, who will fit in right away, and who will become a productive contributing member to your teams in no time. Moreover, they should continue to exhibit these qualities over time as they become a more integrated part of your workforce. Step 4: Measure Outcomes of New Hiring Decisions Check in with your new hires at the three-month, six-month, and twelve-month points. Then, check in every six months or every year to monitor their performance. Sometimes, your decisions will be wrong. Sometimes, extenuating circumstances (such as family illness) cause an otherwise promising employee to drop out. Sometimes, you’re right on target, and your employee settles in beautifully. As you monitor the outcomes of your decisions, you can then determine what was relevant and what was not. From there, you change what you look for and adjust your hiring process to optimize it further. Step 5: Repeat Until Satisfied No process is perfect. Moreover, even if you had a perfect process, your business is not static. Your leadership changes, your customers change, your products change, your industry changes. A growing labor movement might pressure you to increase salaries and benefits. A global pandemic might push you to working from home, encouraging a different set of qualities in a successful employee. A high-level company deal might require internal restructuring. All of these changes will impact how your hiring process evolves. What you look for today might not be what you need in a year or five years. Iterating on your evidence is the key to long-term success. Does Evidence-Based Hiring Have Risks? Like any process that relies on harvesting evidence from a sample, there are risks to evidence-based hiring. The most significant risk to watch for is self-reinforcing data. It’s especially important if you’re using an ATS that includes evidence harvesting; it might identify qualities that “predict” job satisfaction but are themselves not relevant or actually harmful. Here’s an example scenario. An algorithm or app picks characteristics of candidates that predict long-term success in the organization and recommends candidates. You hire those candidates. Yet, your company stagnates. So, you look at what evidence it was suggesting and see qualities such as: Has an agreeable personality. Is willing to accept a sub-standard salary. Has little ambition. Sure, the result is that you’ll have a company full of like-minded people who work well together and stick with your company for many years. The trouble is, you lose out on many benefits associated with diverse employees and may even make your workplace more hostile to minority employees. You have a stable but sub-par workforce. Actual evidence-based hiring requires human oversight, not algorithmic decision-making. You can’t trust a computer to make a decision like this. Instead, you need to focus on attributes relevant to long-term satisfaction and are not part of protected classes. Luckily, it’s relatively rare that such an issue crops up with properly-handled evidence-based hiring. As long as you keep an eye on what data you’re harvesting and using to make decisions and give it a periodic sanity check to avoid adverse impact, you’ll reap the benefits without such issues. Do you have any questions about evidence-based hiring, how you or your company can use it, or anything similar? If so, please feel free to leave a comment down below, and we’ll get a conversation started! Implementing evidence-based hiring isn’t going to be simple for every company, and we would be more than happy to assist you with the process however we can!
- List of 70+ Employee Recognition and Appreciation Ideas
Employee recognition is incredibly important, more so than many business owners ever realize. The need to be recognized, to feel as though you’re more than just a cog in an uncaring machine, is a critical component to job satisfaction and productivity. It’s also key for employee retention. According to FastCompany, employees are 12% more productive when they’re happy, and they’re happier when they’re recognized for the job they do. In addition to that, a study by Gallup says that employees who don’t receive adequate recognition are twice as likely to quit in the next year: “Only one in three workers in the U.S. strongly agree that they received recognition or praise for doing good work in the past seven days. At any given company, it’s not uncommon for employees to feel that their best efforts are routinely ignored. Further, employees who do not feel adequately recognized are twice as likely to say they’ll quit in the next year.” It’s reasonable, then, that you should strive to recognize your employees in your workplace. We’ve put together a list of 70+ different ways you can do it. Pick the methods that work best for your workplace culture and management style. We’ve broken these down into 5 different categories, so feel free to use the table of contents to jump to the section that makes the most sense for your team. Let’s dig in! Simple Gestures First up, we have simple, every-day forms of recognition you can leverage to make your workplace a kinder and more appreciating setting. Simple gestures of appreciation won’t make or break an employee, but they will liven the atmosphere and foster a culture of kindness that can attract employees, grow your reputation, and make everyone feel a little better about their work. Here are some easy employee appreciation gestures that you can show without throwing any events or establishing new protocols: Thank people more often. The more you add “thank you” to your vocabulary, the easier it becomes. Celebrate birthdays. You don’t have to make a big deal out of it, but a simple card, treat, or recognition is enough. Celebrate service anniversaries. Long-term careers are a rarity these days, so recognize loyalty. Establish regular treats. Getting fancy coffee, a box of doughnuts, or another treat for the office once a week gives employees something to look forward to. Make recognition public. An employee might not feel appreciated if their recognition is behind closed doors. Give something tangible. Even something as simple as a thank-you card can be a valuable reward. Offer longer breaks and more flexibility in work hours so employees can work as they need to. Let employees go home early if their work is done and they don’t need to be present. Establish a “mobile recognition trophy” that moves from employee to employee at the employee’s discretion. Establish small conveniences like free parking with minimal hassle. Provide alternatives where one doesn’t apply, such as paying for commuter passes or bike storage instead of just parking. Help employees donate to charity by matching or doubling their donations. Make sure to approve the charity first, so you aren’t donating to a hate group. Mid-Tier Recognition These middle-of-the-road recognition actions are valuable in that they hold more weight than the simple gestures, but they’re not quite important enough to be considered institutional programs. They tend to be grander and more prominent, but they don’t require the “framed picture on the wall” style recognition of major programs. Allow employees to set personal goals and achieve recognition for reaching them, such as exercise milestones, learning new skills or certificates, or completing major tasks. Provide support and incentives to set these kinds of personal goals, like subsidizing certification training or a gym membership. Instead of a pizza party, bring in a variety of food trucks (paid for by the company, of course). Create an annual yearbook with pictures and quotes or descriptions for each employee, handed out to everyone every year. Run office betting pools or lottery tickets, with a guarantee that winnings will be split fairly if someone wins big. If an employee has to travel, give them perks like first-class airfare or a hotel upgrade. Contract perks for employees, like haircuts, car detailing, or bicycle repair services for free. Give employees recognition on your website, such as on your “about us” or an “employees” page. Keep some recognition rewards secret. Otherwise, it can easily become a competition. Offer one-on-one lunches between employees and management or executives, for sharing perspective, discussing issues, and broadening connections. Create a “suggestions box” so employees can give ideas to leadership, and earn recognition for the good ones. Offer a role or job shadowing opportunity for career exploration and development opportunities. Set up good team-building exercises. Think collaborative storytelling, not trust falls. Allow employees the opportunity to customize their leisure spaces, like the break room. Provide a quiet area, like a conference room set aside with couches and dim lights, for power naps or a quiet space to think. Create a Room of Achievement, where employee achievements can be shown off, both professionally and personally. Assist with professional development by writing LinkedIn recommendations on employee profiles. Use social media to publicly recognize your best employees – with their permission, of course. Give your best employees a shout-out in your monthly internal newsletter, if you have one. When a customer leaves positive feedback about an employee or team, share it with them. Institutional Programs The institutional programs require more buy-in from the executive team and may need to adapt the organization around them. However, they’re usually larger and more grand gestures that help employees feel appreciated on a greater level than the simple gestures ever do. Here are some examples: Establish a track for promotion. Nothing is worse for an employee than feeling like their career has dead-ended. Create a defined recognition program. Help employees in the program build towards their goals and success. Focus on company values, not on rules that are blindly enforced. Keep an open-door policy and, more importantly, offer an avenue for anonymous feedback. Create a points-based rewards program with a variety of prizes for employees to buy. Make sure everyone is in on it; all management should participate in handing out recognition. Support children. Having kids is stressful enough without the company bearing down on you. Support your employee’s kids by contributing to their health, education, and well-being. Support families. Employees without children deserve recognition too; the budget you allocate to children should be spread equally and support given to childless employees as well. Encourage employees to recognize one another, such as through votes or tips. Foster a culture of asking for help. If an employee is reaching burnout, they should be given assistance to help them, and days off to relax. Take individual teams out for business lunches and other team-building social gatherings. Reward extracurricular activities such as volunteering or charity donations. Create a mentorship program so new employees have an easier time onboarding , navigating their new roles, and coming out on top. Create friendly and collaborative competition. Don’t foster a cutthroat dog-eat-dog competition, but a good-spirited challenge. Nominate employees for industry-wide awards and recognition that tangibly help their reputation or career. Recognize whole teams when they complete major projects. A company-wide notice of successful completion can make a team feel good about their progress. Give every employee a dedicated budget they can use to spend on rewards for their coworkers. If you fear dollars will be abused, use a points system instead. Set up “take your child to work day” style programs. Set up “take your pet to work day” programs, but make sure no one does something like bringing their pet tarantula to the arachnophobe’s cubicle. Create a competition between retail locations. Different franchises can compete for the highest value sale, for example. Just make sure to pick something all locations are on equal footing for, so no location has an unfair advantage. Create a gamified program with dedicated achievements employees can earn through conduct, recognition, and extracurricular efforts. Major Recognition Sometimes a one-off instant occurs where you want to implement a grand gesture to recognize an employee, but it doesn’t fit in the realm of institutional programs because it’s an uncommon event. These forms of recognition can still be powerful. Throw a retirement party for your most loyal and long-term employees, for even more recognition before they retire. Provide loyalty milestones. Companies of old used to provide service anniversary gifts of real value, like a gold watch; it’s time to bring that back. Reward major milestones like a major product launch with a once-in-a-lifetime experience, such as paying for skydiving, a hot air balloon ride, or an exotic team vacation. Set up an occasional spa day (or spa gift certificates and a paid day off) so employees can take the time to relax and reset from lifestyle stress. Let employees choose a company initiative. Do they want you to push for a green or carbon-neutral operation? Do they want a process streamlined? Get their feedback and implement it. Strive to help your employees move forward in their careers, even if it means leaving your organization. No hard feelings! Avoiding Bad Feelings Before we wrap up, we have to acknowledge the dark side of employee recognition: the times when someone “hogs the spotlight.” One star employee getting all of the major recognition makes others feel jealous, and it makes for a hostile work environment. Try to minimize this by keeping your programs fair to all, spreading out rewards, and delivering tailored recognition. Ask employees their preferences. For example, if an employee doesn’t want a big deal made out of their birthday, don’t make a big deal out of it. Avoid huge prizes that make others feel bad they didn’t win. Chart who wins what, and address why people who aren’t recognized aren’t earning recognition. Make sure no one employee can dominate the rewards; remove an employee from the running if they’ve already won this year. Offer alternatives. Bringing in doughnuts doesn’t help your dieting employees, and vacation doesn’t help someone who can’t take one. Make sure non-recognition compensation is adequate first. An office pizza party falls flat when everyone is underpaid for the industry. Survey your employees regularly and adjust recognition programs based on feedback about what is and isn’t working. Don’t forget about remote employees, contractors, and others in your business orbit who aren’t always in the office. Don’t force recognition. If you strive to come up with something for everyone, most of the recognition will come across as fake and not genuine. Make sure any “swag” you hand out is quality products, not cheap screen-printed garbage. Ensure that any benefits your office has been enjoyable by your team members. A foosball table in the break room does nothing if no one has the time to play. Avoid surprises. What good does a surprise pizza party do when everyone already ordered their own lunches or ate what they brought from home because they didn’t know otherwise? Make sure to budget appropriately for employee recognition. The general average is about 1% of your overall company budget should go towards recognition. Be careful with certain kinds of “recognition” like allowing Nerf-gun fights or intra-office pranking. This can actually be discriminatory against women and certain kinds of employees. No matter how you’re handling recognition, you want to make sure you’re doing it at every level. A good, healthy workplace combines institutional-level recognition and rewards systems with casual, cultural-level gestures that build up an entire economy of small recognition. Remember, recognition isn’t all just top-down. Employees can nominate and recognize their managers and team leaders for going above and beyond, handling difficult situations, and managing well. Employees can also recognize one another, for their own skills and performance in their roles. You want to establish a thorough culture of recognition at every level for it to truly feel like a success. Companies with strong internal recognition make employees feel happier. Happier employees are healthier, more stress-free, and more loyal to their companies. They’re also less likely to jump ship, more likely to want to negotiate to stay, and more productive while they’re here. The benefits of recognition are immense, and the cost for those benefits is surprisingly low. Sure, you can’t get away with the cost of a few pizzas and nothing else, but you can certainly keep your costs low through business partnerships and other programs. So, what’s your favorite employee recognition strategy? Share with us in the comments below and we’ll add it to the list!















