Business: Does my company have a toxic culture?
Toxic work cultures aren’t always obvious, at least not when you’re first hired and not always to managers. As a new hire, these work cultures can become apparent over time, but many times it creeps up on you unaware. Sometimes it’s even ingrained as part of the culture. For managers, a toxic workplace is yours to manage, but too many managers fail to see it and fail to act on it. Let’s explore the business of a toxic workplace culture.
Business Culture
Founders and CEOs must cultivate not only their business ideas and breathe life into them, they must also breathe life into a thriving business that operates and implements those ideas. That means hiring staff. However, hiring qualified candidates and hiring honest, ethical and affable people are two entirely different things. Sometimes, hiring a qualified candidate brings with it toxic baggage under the guise of affable.
Hiring Practices
Businesses today hire primarily based on qualifications, not on interpersonal skills. What this means is that companies end up with all manner of people on the payroll. At least some of these people are likely to be toxic in many different ways. Simply because the hired person can do their job correctly doesn’t necessarily make that person the best choice for your business’s success. A toxic person can overwhelm an office with distrust, negativity, bad morale and seek to destroy the very business itself… all while performing their job perfectly and correctly.
Why? The above example person is toxic, through and through. They have no sense of moral compass and are willing to do anything to torpedo anything and anyone who stands in their way. This is the very type of person you really don’t want to hire. Yet, many companies unknowingly do.
Why does this happen? It happens because businesses don’t have a means to screen for this level of toxicity from any candidate. However, there are some ways to help determine toxicity levels, but very, very few companies employ such behavioral culling during an interview. Keep in mind, though, that even the best of behavioral tests to determine toxicity can be foiled by candidates who intentionally and knowingly practice toxic workplace behaviors. If a candidate seems too ideal even after taking a behavioral test, that person might become problematic when in the workplace.
Interview Questions
Many hiring managers naively believe you can ask simple questions and determine if someone is toxic. While this might work a small portion of the time, a large portion of the time it simply doesn’t work. Unless that toxic candidate is completely naïve about hiring practices (hint: they’re likely very knowledgeable), they’re not likely to intentionally (or accidentally) reveal their toxic nature during an interview. That’s not to say it can’t happen. However, for these naïve candidates, you don’t really have to go out of your way to find them. These candidates will out themselves just by their own stupidity. These naïve people are the exception, not the rule.
Far too many toxic people are the shrewd, cunning and know exactly what they are doing. They see your questions coming and answer them to impress, not reveal their own personal flaws. Any questions designed to elicit personal responses will be turned around into how their work skills have improved business operations.
For a hiring manager, these are the kinds of candidates who are the most difficult to weed out because they are, as I said, shrewd and cunning and seem the perfect candidate, on the surface. They know how to ace an interview and they’ll do it with flying colors. When a candidate seems too good to be true, this should be a red flag in and of itself. No one is that good.
Looks
Many people, particularly those who are overly attractive, can easily betray and feed into the toxic culture problem. That’s not to say that people who appear “perfect”, “flawless” and “beautiful” are all toxic, but as a hiring manager, you should always remain on your toes when considering hiring those who fall into the “perfection” bucket. What exactly is “perfection”?
It’s those men and women who look like they’ve stepped off of a runway, out of an advertisement or look like a model. These people are impeccably fit, immaculately coiffed, perfectly groomed, carry themselves in an overly confident way and both have overly engaging smiles and a personality to match. People who are genuine don’t tend to look or act like this. Everyone is beautiful in their own way, but these people who exude that “perfect model” appearance and who appear “perfectly flawless”, not just in appearance, but also when talking with them, should leave you skeptical as a hiring manager. Nobody is that “perfect”. The problem with many of these people is “ego”, which is one of the primary driving factors behind toxic workplace behavior.
The one job where such beautiful people can be hired, albeit with trepidation, is outside sales. These people can become the face of your sales team. Because sales jobs are grueling, tiring and relentless, hiring flawless and beautiful people to visit with clients can greatly help make a sale. You just have be aware that these people can sow seeds of discord while in the office, if allowed. However, they can just as easily land million dollar deals for the company. Ego has its place… and having overly beautiful people on a your sales team is typically the one and only one job role where ego works.
Yes, I do understand how tempting it is to hire that beautiful office assistant. I get it. They’re eye candy every single day. However, that eye candy for you can turn into a nightmare for everyone else. Be cautious when considering the “overly beautiful” people of the world for internal positions outside of sales.
Note, there is a significant difference between simple beautiful and glamorous beautiful. It’s these glamorous beautiful people who bare watching. “Simple beautiful” people are typically down-to-earth, aren’t overly made up, don’t have perfectly coiffed hair, don’t wear overly flattering clothing and are focused on the work at hand. The “glamorous beautiful” people are overly concerned about their appearance, smell and personality, yet still manage to get their work done. It’s these overly glamorous people who are more likely to fall into the toxic bucket due to ego.
Probation Period
Many companies hire new employees on a conditional basis. Basically, so long as the employee is able to perform properly for a period of time, usually 90 days, then the job becomes permanent thereafter.
Don’t think that a probationary period actually offers enough time to out a toxic employee. Toxic employees are patient. They are more than willing to wait through any probationary period while remaining on their best behavior. They’ll do their job well and everyone will praise that employee’s work efforts. This type of toxic employee is seething and ready to let lose their toxicity, but they’re more than willing to temper that toxicity until they know the job is fully theirs. As I said, this type of toxic employee is overly patient.
Once their “tenure” actually begins, that’s when the employee will slowly begin to unleash their toxicity. Small at first, then no holds barred after several months.
They do this for several reasons:
- By being patient allows slowly ingratiating themselves into the company. They can then make their skillset (in)valuable to the point that the company might have a hard time replacing them.
- Waiting through that waiting period, they get to know who they can “beat up” and who they must “kiss ass”. It gives them plenty of time to determine the “lay of the land”.
- Kissing up. This may start right away, but usually takes a few weeks because they don’t want to kiss up to the wrong person. This type of toxic employee will “kiss up” to their immediate superior to make them feel superior. They’ll accept lots of work from their manager and turn it all in perfectly. In effect, they become the perfect “Yes, man” and a model employee. They might even win a monthly employee award.
Kissing Up and Overly Friendly Attitudes
Someone who “kisses up” and who exhibits artificially friendly attitudes is someone to watch closely. This kind of behavior seems like the flip side of toxic behavior. In fact, these friendly attitudes are actually part of toxic behavior. It’s just that because this behavior seems friendly and nice, it’s difficult to see it as part of a toxic person. Toxicity comes in many forms, but most people tend to classify it with only negative behaviors. Positive behaviors tend not to be classed under toxicity simply because they are positive.
Most toxic people will exhibit a mix of both positive and negative behaviors, but that are both fully tied to their toxicity. They’ll start mostly with positive and then slowly work their way to the negative spectrum. Know that the reason behind the overly friendly attitudes and “kissing up” is tied to their toxicity. “Kissing up” usually only occurs with their direct manager or managers above them. The toxic person almost never uses these artificially friendly attitudes toward coworkers. In fact, most coworkers will typically see a toxic person as aloof and arrogant.
Lone Workers
However, don’t assume that a lone worker indicates toxicity. Lone workers can be some of the most productive people in your organization and that has nothing to do with toxicity. A lone worker may choose to work alone solely because the “team” around them may, in fact, be toxic and may be the ones holding that person or project back. Lone workers may, in fact, be a product of a toxic workplace culture. Toxic employees tend to want to sabotage the work of others, including that person who is seen as a lone worker. Because it’s nearly impossible to alert anyone in a company to one or more toxic employees without being seen as a “problem”, to avoid that scenario entirely, many employees instead turn to becoming a lone worker to avoid having to interact with toxic workers bent on sabotaging projects (and other employees).
Toxic employees then choose other “behind the back” strategies to discredit one or more lone worker employees. I’ll come back to this “snitching” topic shortly.
The only time a toxic person seemingly works well with others is if the manager explicitly asks the person to do so as part of their job duties… at which point, the toxic person will immediately ingratiate themselves into the “group” as if they were always the best of chummy buddies. For the rest of the group, it’s odd and offputting and they can see exactly what’s going on. For the manager, they see it as a person taking initiative and taking direction well. Managers don’t get to see what’s really going on behind that toxic curtain when they’re not in the room.
However, that group of workers definitely get to see it. They see the artificiality of the attitude. The taking on of extra work. The sometimes doing the work of others. It even can get to the point that the toxic employee will intentionally take work from another, do it intentionally wrong and then attempt to pin that “shoddy” work on the original owner. It’s all overkill, but it’s something the toxic person does to ensure they are accepted by the manager and to make sure their skills are seen as irreplaceable. They sow the seeds of being irreplaceable so that at the point they think that they are, they can fully unleash their toxicity.
Snitching
One behavior that should immediately shoot up red flags to a manager is “snitching” or “tattling”. These traits may seem like a good thing, but these behaviors are, in fact, a form of toxicity. When one employee goes behind the back of another to make disparaging remarks without them having attempted to resolve the issue first, this firmly indicates toxicity.
These types of “snitches” are the very definition of toxic. This behavior intentionally sows seeds of discord between the manager and staff. Effectively, this toxic person is a wedge attempting to drive a huge gap between the manager and the workers… to cast doubt and suspicion on a specific person or group of people.
When an employee steps into your office and attempts to convince you, as manager, that one or more people is/are a problem, red flags should appear instantly. Not about the people being mentioned, but about the person sitting in your office. This is why toxic people tend to like to win “lead” roles on teams. That title gives them more credibility and trust to step into a manager’s office to disparage others.
Unleashed
Once a toxic worker has been working long enough to feel irreplaceable, perhaps even being told so by a manager, the gloves come off. Sometimes they do so after waiting to be promoted to a “lead” position, cinching their toxicity. Becoming a “lead” allows a toxic person to unleash their toxicity in full. Usually, this type of person begins by latching onto the person they like least. In fact, they don’t really care who it is, just that there’s someone they can pour their toxicity onto. And, boy do they ever.
First, they start with subtle hints that the person is doing something untoward (snitching). Nothing specific, mind you, but they sow enough seeds of doubt with the manager that the manager must take a much closer look. These lies, of course, are usually just that. Lies. Yet, the manager now trusts the toxic person enough to begin to believe their lies. The lies usually start with a shred of truth, like claiming the person has been spending too much time on email and not enough working. When, in fact, the person has written the same amount of email they always have. Or, that the employee has been taking too many smoking breaks.
Second, the toxic person may even go so far as to not only lie, but plant “evidence” in the desk of the person they are now directing their toxicity to. Because most offices are fairly open and trusting, many employees leave their desk drawers unlocked while away from their desks. This facilitates the toxic person’s behaviors, particularly planting of evidence.
This leaves trusting employees open to abuse from toxic employees. Depending on the kind of “evidence” planted, it might even elicit probation for the employee or even termination. The toxic employee thinks, “One down, many to go”. This is the start of a huge morale problem which lasts until enough employees leave that there’s no one left to complain.
As employees begin to disappear one at a time, the manager won’t suspect the toxic employee, but instead will fail to understand why so many employees are leaving. Because the now trusted, but highly toxic employee, is now running the show, so to speak, they have full reign to do as they please.
Once they’ve cleaned house sufficiently, this is where they turn their ire onto their manager seeking that job role. At this point, they’ll both lie and plant evidence to implicate the manager in some kind of in-house scam. That manager’s manager might or might not fall for the bait. It depends on how loose or tight that relationship is. At this point, the toxic employee might be discovered, but possibly not.
These toxic employee scams are generally so subtle that it’s hard to trace it back to a specific employee.
Agenda Behind Toxicity
Sometimes there’s an agenda. I’ve seen the above toxic situation unfold before, in fact. Here’s the story.
Note that this didn’t occur in my office, but we got the details of it by all of the employees who fell into it. We had a new person hired. I’ll call her Jill. Jill was a fairly competent worker who did her job well… at least for a few months. After a few months, the manager promoted her to “lead”. At this point, she was still liked by most and did her job fairly well.
However, once promoted to lead. The entire workplace changed. Employees began seeing a side of her they hadn’t seen. Over the next couple of months, her behavior changed towards them. Yet, her manager saw none of this. In fact, her manager got caught up in a problem of his own, which kept his attention focused on that problem.
Within one to two months, her manager left the company and she was again promoted to manager. At once, she fired nearly every single person on the team and simultaneously hired a bunch of her “friends”. Only one or two “original” employees remained. This was her goal. To hire people she wanted and get rid of those she didn’t want.
At this point, the company was in a financially dire situation, not entirely of her making, but her shenanigans didn’t help and her ineptitude in managing was felt over our services being sold… leading would-be buyers to competitors. Over a month or two, her and her new “team” was unable to properly manage the equipment she was to tasked to manage, causing outages and she was forced to leave (not fired, but asked to resign). After that, many of her hires were also laid off, mostly because of the company’s financial situation. The few who managed to stay through her firing spree stayed on to manage the equipment after her departure, one of which became the new manager.
Unfortunately, the company only remained in business for ~9 more months before ultimately closing its doors for good.
This is a perfect example of a toxic workplace culture. It also impresses the importance of watching closely who is managing your company. Even managers can impact the bottom line. Even managers can cause toxicity. Oh, and her toxicity attempted to reach us in our remote office. However, our manager realized exactly what it was an completely ignored her. Since she had nothing to do with the services we managed in our office, her toxicity remained mostly confined to her office. Though, I firmly believe her toxicity was part of the reason the company ended up folding.
Workplace (mis)Trust
This is a fairly typical scenario above. Toxic employees tend to, at least over a period of time, cause large departures of other employees and generally sow mayhem by their toxicity. Many times it’s for a specific agenda, such as wanting to hire specific people they know. It is not only because the toxic employee is willing to lie, cheat and back stab, but also because no one wants to be around this type of toxicity every day. Toxicity is easily spotted by those on the ground and it grows over time to the point that employees must make a decision: stay or go. Managers typically stay insulated from this toxicity because that’s how a toxic employee wants it.
In fact, toxic employees typically sow seeds of doubt and distrust about all of the employees they intend to “stab” with the manager. Once they have these seeds of doubt planted, any one of those employees who attempts to have a conversation with the manager ends up finding that the manager no longer trusts them. Sometimes you don’t find out about that lack of trust until a performance review.
Losing trust in a workplace is tantamount to being fired. The point at which you have lost your manager’s trust, an employee should line up another job. Trust between manager and worker is paramount. Losing that trust means being unable to do your job correctly, even if you do it correctly.
Toxic employees intentionally seek to sow seeds of mistrust between manager and staff, with the exception of that toxic employee, who seeks to have the highest level of trust from the manager. Again, this is a huge red flag. Any new-ish employee who immediately tries to impress upon you, as the manager, how trustworthy they are and how untrustworthy everyone else is should be viewed as toxic.
Managers don’t need to be told whom to trust. Managers need to determine and establish trust level between their employees themselves. Unless an employee shows that they are untrustworthy, there is no reason to mistrust an employee based on another employee’s word.
There’s where a toxic employee can up their game by planting “evidence” of mistrust. If, as an employee, you’ve been framed by a co-worker over something that has been “planted”, you definitely need to find another job. Trying to win a “I said, they said” battle can be almost impossible over planted evidence. Worse, if another employee is willing to stoop so low as to actually plant evidence onto another employee, it’s time to leave. There is almost no way to convince a manager that the evidence was planted.
As a manager, having to evaluate alleged evidence found in or on someone’s desk can be exceedingly difficult. You’re a manager, not a detective. I get that. How do you manage this issue if it arises? It’s a difficult challenge, one where I can’t easily give you answers.
However, I an point you in this direction. Review who is he senior of the two employees. If the employee who “found” the evidence is claiming another more senior employee is untrustworthy, you need to better understand why that newer employee was rooting through another employee’s desk AND how they knew that “evidence” was even there. If the reporting employee is only a few months into the job, you should suspect more of that new employee than sincerity. If you’ve never had any issues with the more senior employee, then that new employee may be a toxic employee.
Employees who seek to pit manager against older employees should be immediately suspected as toxic. Once you suspect a toxic employee, you need to monitor them closely. You don’t need to alert your other employees, though. However, you also need to accept any of the toxic employee’s claims as insincere. You should make note of each and every one of them. Once you can confirm the toxic employee is sowing seeds of discontent around the office, you’ll need to take them aside and with the assistance of the HR team, place them onto a probationary period.
Know, however, that placing a toxic employee on probation won’t solve their toxicity. Once you identify a toxic employee, the only means to solve that problem is by firing them. The probationary period is simply a stepping stone to firing them. By placing them into probation and following through with standard procedures, you can then fire the employee without them having any legal recourse against you or the company.
Toxic employees are shrewd both in and out of the office. If they’re fired, expect a wrongful termination lawsuit. They won’t have any problems bringing legal action against a company for being terminated. That’s also part of their toxicity. As a manager, you must follow all procedures that allow you to fire the employee correctly.
Toxic employees know that their actions in the office cannot be easily covered by office etiquette or code of conduct rules. Meaning, toxic behaviors are almost impossible to enforce as a firing offense. Instead, you would need to fire them for not performing their work duties, which work performance is a reason to fire an employee. Playing psychological games, however, is not a reason to fire and is never written into code of conduct rules as part of the terms of employment.
The problem with probation, however, is that the employee can pass the probation requirements easily and still allow them to sow seeds of discontent. This is why probation exercises may be futile when you’re seeking to fire a toxic employee. You may simply have to rely on your company’s “at-will” hiring clause (you do have one of these, correct?) and simply fire them straight up.
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Unlimited Vacation: Blessing or Curse?
I don’t usually get into discussing workplace stuff because it’s relatively boring. However, Unlimited Vacation is one perk that is really, really needs discussion. Let’s explore.
Perks and Jobs
I get it. I understand why companies offer perks. They have to offer perks for talent acquisition reasons such as:
- Companies must keep up with competition — If a company doesn’t keep up with what other companies are offering, they lose talent during recruiting
- Companies must offer perks that seem inviting — Again, this is a talent acquisition feather-in-the-cap sort of thing. It’s something the HR team can cross off the checklist of things to entice candidates
- Companies must offer perks that are inexpensive — Companies don’t want to give away the farm to offer a specific perk
What kinds of perks can you typically find in tech companies? You find perks like the following:
- A stocked kitchen — This includes soda, coffee, tea, milk / cream and then for food, this can include fruit, nuts, chips and cereal
- Bagel Friday — This perk includes donuts and bagels on Friday
- Lunches — Some companies offer subsidized and/or free lunches one or several days of the week
Those are all food related, however, other perks include:
- Day Care or reimbursement
- Commute expenses
- Free parking
- Tuition Reimbursement (job related)
- Training / certifications (job related)
- Paid sick days
- Paid vacation
- 401k
- ESPP (if public company)
- Company holidays
These are the HR type of benefits that many companies offer. Many of these have a real dollar based cost to the business. However, there’s a new perk that seems great, but really isn’t for several reasons. That perk is ….
Unlimited Vacation
This ‘perk’ (and I use this term loosely) is now becoming popular in businesses. Why? Because it doesn’t cost the business anything to implement and may actually save the company some money (or so companies think). On paper, the idea seems enticing, in reality it’s a pointless benefit to employees and actually encourages more employees to take vacation which may hinder productivity and deadlines.
Why is this benefit so bad? This benefit is pointless because there is no way any employee can actually use it in its unlimited capacity. If you were to try, you’d be fired and walked from the building. I don’t know of any business that doesn’t require approval for vacation from a manager. Even if you could request excessive amounts of vacation, it’s unlikely your manager would approve it. But, within reason, you can request time off and here’s where it begins to break down for employers.
The only people who can even use this benefit as unlimited are those who are in management positions, who don’t have to report their own vacation usage. In other words, subordinates won’t be able to use it, but managers will (and they will use it frequently).
This is one of those perks that will be abused by those in charge. Those not in charge will be penalized whenever they attempt to use it in any unlimited way.
Vacation Time
In general, asking for vacation time off is tricky. It must always be coordinated with ongoing projects, team commitments (i.e., on-call), other team member time off and holidays and requires manager approval. Even people who end up out sick can interrupt or force rescheduling of vacation time off.
Don’t be tricked by this perk, it doesn’t make vacation time off any more accessible and, in fact it is entirely designed entirely for …
Ripping off Employees
There are two fundamental problems with Unlimited Vacation. The first problem is that the benefit (ahem) is being implemented as a cost saving measure to rip off employees when they leave a company (and is designed to appear to save the company many thousands of dollars). This issue really only affects long term employees. You know, the ones who have devoted several years to your business. But now, you’re going to give them the finger on the way out the door? Smart.
With standard paid time off (PTO), you are allotted a certain amount of hours that accrue over time. Let’s say for every year of service that you complete, you will accrue up to 1 week off (with a maximum of 2 weeks that can be held in total). After 2 years of service, you’ll have those 2 weeks accrued, assuming you never take time off. If you leave the company after 2 years without taking any vacation, you’ll be paid out your accrued PTO balance for the 2 weeks that you didn’t take. That’s two weeks worth of salary you’ll receive upon exit, in addition to any other salary owed.
With Unlimited Vacation, that vacation payday goes away. Since it’s now unlimited, there’s no more time accrued and no more PTO to pay out for any employee. The only thing that payroll needs to keep track of is how much time you’ve used solely for timekeeping purposes. When you exit a company offering Unlimited Vacation, you won’t receive any vacation pay because they are no longer accruing any. This means that when you were formerly paid 2 weeks of PTO, with Unlimited Vacation you now get $0.
Unlimited Vacation is then an HR cost-cutting measure entirely designed to screw exiting long term employees over so companies no longer need to make any vacation payouts.
Here’s where the second problem begins. As employees realize this screw-over job and to make up for the lack of accrued time, this means employees will need to take as much vacation as is allowed without getting fired in the process. Since you can’t accrue, you now need to use.
Accrued PTO vs Unlimited Vacation
Businesses don’t seem to understand the ramifications of this perk on its workforce. The first ramification is that employees with accrued PTO no longer get the exit vacation payday. This is significant when exiting your employer and moving on. But, this only occurs on a termination event. Employees should remain cognizant of this event, but even more employers should remain cognizant of how this will change how vacation is used. As an employer, it means you need to understand how to retain your workforce better.
Here’s the second problem in a nutshell. PTO encourages employees to stockpile their vacation and rarely take it. Up to 50% of the workforce does this. However, Unlimited Vacation encourages employees to take as much vacation as they can legitimately get away with.
With PTO, employees might work and work and work with little time off. With UV, more employees will take more time off, thus working less. This is something that HR and management will need to understand about this benefit. If the point is to get people to take more time off, then UV is the answer. If you’re trying to encourage people to stay at their desks and work, PTO is the answer… but has the end payout.
It really all depends on how you want your staff to work. If you want people at their desks not taking time off, then PTO is your answer. If you want people constantly taking time off, then UV is your answer. Sure, UV saves you on the exit payments, but at the cost of people taking more time off throughout the year. It does one more thing.
The up to 50% of employees who rarely take time off will change their work ethic to include significantly more time off. Since they know can no longer stockpile and get that payday when leaving, they will now be encouraged to take time off to make up for that loss of money. This means that a workforce that you relied on to work excessive hours to make ends meet will no longer continue that trend in your business.
If you think that people will continue the same type of vacation behaviors they used with PTO when on UV, you’re mistaken. People will use what they are owed. If they are encouraged to take time off, they will whenever possible. This means that for the folks who rarely (if ever) took PTO days will now begin scheduling more time off throughout the year. That’s not because it’s unlimited, but because they understand that they no longer get the payout at the end. This compromise ensures they get the equivalent benefit and that means scheduling and taking time off. There’s entirely nothing the HR team can do about this change in vacation usage behavior when on the Unlimited Vacation plan.
It’s a use-it-or-lose it situation. If you never take vacation with PTO, you can justify it with the payout at the end. If you never take vacation with UV, not only do you get no time off, you get no payout at the end. It’s simple math. No payout at the end means using more vacation time to get the equivalent benefit. Employees aren’t stupid and they will realize this paradigm shift and compensate accordingly.
This outcome will happen. You can even watch your employees behaviors after you convert from a PTO to UV system. I guarantee, your employees will notice, understand and modify their vacation schedule accordingly. This may impact your business, so caveat emptor.
Good or Bad?
That’s for each company to decide. More employees taking more vacation is good for the employee and their morale. But, it may negatively impact the productivity of your business. With PTO, people not taking vacation means more productivity. With UV and more vacation time off, this likely means less productivity. It might mean a happier and less stressed workforce, but it likely also means less work getting done.
I’m not saying any individual will take excessive time off. No, I’m not saying that at all. That’s simply not possible. What I am saying is that if 40-50% of your workforce never takes time off under a PTO plan, you will likely find that number reduces to less than 10% of your workforce not taking time off with a UV system. That’s a significant amount more people taking time off throughout the year than on a PTO system.
If you delude yourself into thinking employees who don’t take vacation time off will continue a PTO trend on a UV plan, your HR team is very much mistaken. I can also guarantee that if managers deny vacation requests to keep employees at their desks, this too will backfire and your talent will leave. This will become a catch-22 problem in your business.
As an employer, you spend a lot of money hiring talent. You also spend a lot of money holding onto that talent. Why jeopardize all of that with a policy like UV that won’t really do what what you hoped it would? On paper, it seems like a great cost saving policy. In practicality, it will likely backfire on your company’s productivity efforts and cost you more money in the end, but not for the reasons you think.
Conversion Process
You may find that if you are converting from some other vacation system to unlimited that people do continue their traditional habits. However, that will change over time both as turnover happens and as people realize their loss of PTO payout. Once employees wake up to the realities of the new system, the amount of employees requesting and taking vacation will increase.
A UV policy will make it more difficult on the managers to juggle vacation timing, fairness and who can take what when. This will increase manager load by taking them away from managing projects and deadlines to managing the minutiae of juggling even more staff vacations.
Hourly Employees versus Salary Employees
This type of perk works best in salaried environments. With hourly employees, trying to offer a perk like Unlimited Vacation won’t really work well. This is particularly true of employees working in a call center or similar type environments. With salaried tech workers, this kind of benefit may work for you with the caveats that have been thus far described.
Startup or Established Company
If you run a startup, you should stay away from the Unlimited Vacation policy entirely. It won’t do your business any favors. Sure, it’s more cost effective, but only when long term employees leave. If you’re a startup, you won’t have long term employees to worry about for a while. Your duty is to entice your talent to stay, not leave. If you have a problem with a revolving door of staff, then you have a much bigger problem than a benefit like Unlimited Vacation. The problem for a startup is that a UV plan encourages more people to take vacation more often rather than stockpiling it for use later. Again, more workload for a manager to juggle vacation schedules rather than handling projects and deadlines.
In a startup, a UV policy means more people taking time off. This isn’t what you want when you need all hands on deck to keep the business afloat. You want most people at their desks and readily available at all times. When people take vacation, they expect to be cut off from their job including no email, no pager and no contact. And, rightly it should be. If you’re on vacation, you’re on vacation. PTO plans encourage staff to accrue now and take time off much, much later, perhaps years later. With a UV plan, this encourages more people to take vacation regularly. Not exactly what you need in a startup. PTO works for a startup because employees stockpile and then once the business is off the ground years later, they will then take their vacations. This is why PTOs are actually better for a startup than a perk like UV.
If your business is established with 500 or more employees, then implementing an Unlimited Vacation policy might be worthwhile depending. With larger numbers of staff, there’s more opportunity for someone to cover an employee who’s out. This means if your 40%-50% staff who are stockpiling decide to start taking vacation in increasing numbers, you can withstand this change in your workforce behavior.
It’s up to you to decide how to operate your business, but PTO vs UV is one perk you should thoroughly investigate and then weigh all pros and cons before implementing it. Don’t do it simply because it might (or might not) save you some cash when employees exit. Do it because it’s the right plan for your business’s current operating goals.
What is an inclusion rider?
As Francis McDormond spoke while accepting her Oscar, she left the audience with two final words, “inclusion rider”. What is it? Let’s explore.
Hollywood Contracts
Being a Hollywood actor, director, writer, cinematographer, producer or other cast or crew requires signing a contract with the production for employment. Contracts, as we all know, are legal agreements that you legally agree do whatever is stipulated within the contract. If you’re an actor, you’ll act. If you’re a producer, you’ll produce…. and so on.
However, there are also other items that can be added to contracts to make them sweeter, such as getting a percentage of the back end. The back end could include residuals from such things as box office sales, merchandising, video sales, rentals, etc etc. These can make whatever that person got paid even sweeter. If the production does well, that percentage of the back end could mean an even bigger paycheck. It’s always reasonable to try and negotiate percentages in productions, and while many lead actors and actresses try, getting that deal isn’t always possible. Negotiation of a back end deal is a form of rider. However, this is not the type of rider of which Francis McDormond speaks.
Affirmative Action
Before Affirmative Action began, minorities didn’t get their fair share of consideration during the hiring processes in many companies. Affirmative Action was created to ensure that employers remain equal opportunity for anyone who chooses to apply for a position. This means that an employer cannot turn away anyone for the position solely based on race, creed, color or national origin (among others). The idea is that everyone must be considered for the position equally so long as they have the necessary skills and qualifications. What does this have to do with an ‘inclusion rider’? Everything..
Inclusion Rider
Hollywood is facing its biggest upheaval in many, many years. With the fall of Harvey Weinstein (and many others), Hollywood faces much scrutiny over unfair practices in productions against not only minorities, but also against women. In particular, McDormand refers to the fact that women have been unfairly treated in Hollywood for far too long. Not only in the sex object perspective, but also from a pay perspective. Francis McDormand’s comment conveys a ton of information in those two words.
An inclusion rider is a legal addition to a contract, specifically, a movie production contract, to ensure that women are fairly compensated and properly represented within the production. However, there’s a whole lot more veiled in these two words. In particular, McDormand’s comment was intended toward the Hollywood A-Listers who command not only a high salary, but a lot of negotiating power when it comes to their employment contracts.
Basically, an inclusion rider means hiring folks into the production in all capacities that represent all ages, creeds, colors, races, lifestyles, genders and so on. Unfortunately this also means sometimes shoehorning cast members into a production who don’t fit the story or setting of the film. For example, the most recent Fantastic Four is a very good example of the use of an ‘inclusion rider’ on the cast. This production hired a black actor for Johnny Storm. This is so far out of place from the original FF comics, it actually made no sense. Basically, that film version took extreme liberties from the the source material of Fantastic Four and rewrote that Susan Storm was adopted into a black family! This was never the case in the comics. In the comics, Susan and Johnny Storm were actual siblings, not adopted siblings and not from a mixed race family. Unfortunately, the production shoehorned in this black actor into this role without thinking through if it made any sense to the source comic material. This is when an ‘inclusion rider’ goes way too far and gets in the way of the casting for the production. To be fair, that casting mistake (and it was a relatively big one) was actually one of the lesser problems with that film version of Fantastic Four. Though, it didn’t help either.
The second example is Star Wars: The Force Awakens. J.J. Abrams intentionally requested a diverse set of ethnicities to be represented in the Star Wars reboot. However, because these stories didn’t exist, casting these characters wasn’t as big of a problem like The Fantastic Four. However, by The Last Jedi, the production had shoehorned the newest character, Rose, played by the Asian female actress, Kelly Marie Tran. Apparently, the production thought they didn’t yet have enough ethnicities represented and threw in yet another another character at a time when the production already had too many characters in the cast. The Rose character just doesn’t work. Sure, they added an Asian female actress, but that was too little, too late for the China audience. China had already written off the latest Star Wars as stupid way before Rose joined the cast. The casting of Rose did not in any way help sway China to accept these newest Star Wars films.
Is an inclusion rider good or bad or even necessary?
I’ll leave that for you to decide. However, from my perspective, the source story material should always rule the roost. An inclusion rider should never attempt to shoehorn diversity in actors or actresses simply because it’s politically correct. If you’re a producer who’s adapting an existing novel to the big screen that contains primarily white male characters as the leads among similar background characters, you shouldn’t recast them using to black, Asian, Latino or female roles just because of an inclusion rider. You should also not include extras who are demographically out of place or who don’t make sense for the source story. The source material should always be upheld for casting as the source story dictates. If you can’t cast a film the way the book is written, you should find another book to translate to film that fits your casting ideals.
Rewriting the source material’s story just to fulfill an inclusion rider is not only heavy handed, it’s insanely stupid, insipid and likely to cause the production to flop. The characters in a book are written to be a certain way and that’s why the story works. If you’re adapting that book to film, you should make sure that you’re being faithful to the source material which doesn’t include changing genders or the ethnicity of any character in a book just to fulfill an inclusion rider. Stick with the source material or expect your movie to fail at the box office.
See: Fantastic Four (2015) and Ghostbusters (2016) to understand just how badly ‘inclusion riders’ can affect your final product.
If you’re writing an original story for film, then by all means write the story so that the characters can be cast in the way that makes the most sense for your production’s inclusion riders. But, don’t bastardize an existing book or adaptation just to fill the cast with random genders and ethnicities that don’t make logical sense for the story or the setting.
As for whether an inclusion rider is even necessary is entirely up to the actor to negotiate. If you feel it’s important for your participation in the film, then yes. But, what’s really more important is you doing your best work possible with the cast who’s hired. Putting unnecessary demands on the producers might, in the long run, hurt your career longevity. That decision, however, is entirely up to you.
Best Production Possible
As a producer, don’t tie your production’s hands unnecessarily by adding stipulations that limit the potential quality of your project. You want your project to succeed, right? Then, keep all of your options open. Adding an inclusion rider that limits your hiring practice may, in fact, limit your production’s chances of succeeding. Don’t limit your production solely to hire under-represented minority groups. Do it because it makes sense for the film’s story and to make that story’s setting more authentic, not because you have an inclusion rider present.
Hiring Values
As for your behind-the-scenes production crew, by all means, hire as diverse as you possibly can. The more diverse the better. As with any business, and don’t kid yourself that a film production isn’t a business, diversity in hiring applies just as much the crew as any other employee in any other business. Diversity in hiring should be included in any capacity that your film needs. Of course, these folks are all behind the camera. However, hire smart, not diverse. This means that you don’t hire just because you want diversity. Hire because the person has the right skills for the job… which means, don’t turn away well qualified Caucasian candidates just because you want to hire diverse. Hire each one of your positions because the candidate offers the skills you need to get the job done, not because of an inclusion rider. Hire for skills, not diversity.
For the cast members in front of the camera, always hire the cast that makes the most sense for the story and produces the most authentic results. Don’t hire diversely just to fill a quota because you feel that an ethnic, lifestyle or gender group is underrepresented on film. That’s the wrong reason to hire a cast. Hire a cast that makes proper sense to tell the story. If that means diversity, great. If it means all white females or all black males, then that’s what the story needs. The story should dictate the cast, not an inclusion rider.
Original Hollywood Sign photo by raindog808 via Flickr using CC 2.0 license
How not to run a business (Part 11): Hiring
I’ll preface this article by saying that there is no magic bullet to hiring, even though a lot of people want there to be. Any processes put into place to reduce the number of resumes to dig through will weed out potentially good candidates. If you believe that your weed out the methods are effective at helping you find just the right candidate, you are mistaken. Let’s explore.
Don’t believe your weedout methods work
As a hiring manager, when you have a large stack of resumes sitting on your desk, your first thought is likely, “how do I read through these rapidly?” Unfortunately, there is no easy answer or magic bullet for digging through resumes.
Instead, what you need to understand is that to find the best candidate you need to read through and carefully examine every resume and every candidate. Clearly, you will find resume submissions that don’t make sense. If you try to find an easy way to skip reading, you’re going to weed out candidates that could be a good fit for your company. On the other hand, by skipping resumes, you may ultimately be left with bad candidates who are not a good fit for your company.
Don’t skip reading resumes
Many companies try many forms of pre-screening methods to limit reading resumes. Methods that include psychological tests, aptitude tests, technical tests or any combination of those tests. Depending on the position for which you are hiring, it may also include other tests such as lie detector tests (i.e., in trust or money related positions).
Don’t get caught up in the pre-screening process and forget about finding the best candidate for your job position. If you are simply too busy and your primary goal is to get rid of half or three quarters of the resumes on your desk, you have entirely lost sight of your goal and you might as well just randomly select three quarters of those resumes and throw them in the trash. That’s how effective such early weed out methodologies are in finding the right candidate. If you believe the hype that tests are effective at finding just the right candidate, your test provider is blowing smoke. You’re paying money for nothing. That test provider is only there to sell you into their testing service, not provide you with an effective service to locate quality candidates. This comes to…
Why tests fail you
Tests weed out people who are good or bad at taking tests. If your job role is all about taking tests every day, then weeding out those who can’t take tests makes sense. However, if your job role is something other than taking tests (which most real world jobs are), then testing your candidates may weed out people who may be a good fit for your role. Not every person on the planet is good at taking tests. Tests take a certain mindset, require specific thought processes and requires quickness on your feet. It’s a mode each person gets into solely for taking tests and never a mode you get into for actually doing job-related work.
For example, in technical positions where correctness and completeness is the key to prevent mistakes, test taking is the exact opposite of what you want in your role. You want people who are careful, methodical and have attention to details. You don’t want people to rush through the work and guess at answers because that’s the quickest ways to mistakes. Multiple choice tests are extremely bad at determining if a person offers attention to detail, is a good communicator, has the skills you want or at predicting effectiveness in a job role.
Tests also fail to screen candidates properly because apptitude, IQ and management tests do not assess a candidate’s job skills at all. Worse, the assessment it seeks might not even be relevant to their job role and may even erroneously assess the wrong skills.
How do you find a good candidate?
If you’re actually looking for the best candidate to fulfill your position, then you will need to spend the time and go through each and every resume from top to bottom and weed them out in the normal way …. by reading.
I understand time constraints. I really do. You want the easiest and fastest way possible to find your candidates without spending a lot of time on this process. This is especially true if you have thousands of resumes to review. Unfortunately, there is no easy answer. Tests won’t do it. Random selection won’t do it. Only by reading through the resumes and talking the candidates will you find the right person for your job role.
If you don’t have the time to spend on the hiring process, then you probably shouldn’t be in a hiring position. If you cut corners, then will get what you deserve. Yes, it is very tempting to use third party pre-screening technologies, like testing, to eliminate candidates sight unseen, but be prepared to potentially eliminate some of your best candidates by doing so.
Job Postings and Resume Volume
If you do actually have 10,000 resumes on your desk, then you’re likely posting your job ad too broadly. Posting your job too broadly is your first mistake. Not only will it bring in too many candidates, it will bring with it many recruiter calls (something will you want to avoid if your intent is to hire internally). Use limited job boards and job ads when posting your jobs. If one venue doesn’t work, wait until that job ad expires before posting it somewhere else. Don’t just blanket the internet everywhere to find candidates.
If you need your position filled yesterday, and who doesn’t, that’s just not going to happen if you’re looking for a Rock Star. If you need someone now, then consider hiring a contractor to fill the role to buy you time until you can find the right permanent candidate.
Overall Best Practices
Forcing any kind of pre-screening tests onto candidates is really no more effective than doing it the old fashioned way. In fact, the old fashioned way of reading through resumes and calling them for phone screens is probably the easiest, fastest and most reliable way to determine if the candidate is a good fit. It is also the best way to determine if you should progress the candidate to the next stage of interviews.
Yes, there are many testing services out there willing to take your money for the promise of producing high quality candidates. In the end, you’ll find that you could have found those candidates on your own without spending that money on a testing service.
← Part 10 | Chapter Index | Part 1 →
The H1-B dilemma
I have recently heard that a common question among Silicon Valley CEOs towards government is, when is the H1-B allotment going to increase? Let’s explore exactly what this question ultimately means.
Foreign vs US Workers
The H1-B visa is a type of work visa granted to a foreign national to work within the United States for a specified period of time, that eventually expires and will need to be renewed. Asking to have more of these granted per year says only one thing: These Silicon Valley CEOs believe they cannot find domestic US talent to fill positions. Either that, or they mistakenly believe it’s for cost cutting purposes.
My problem with this situation is that someone in each of those organizations is telling the CEO that they cannot hire locally. This is a load of rubbish and the current limit on the issuance of H1-B visas is in place for a reason. If you are a company doing business in the US, the point is to …
Hire Domestically
The foreign visa limits are there to prevent hiring foreign workers over local US citizens (and thus, keep those wages inside the US to help the economy). That’s the entire point. If the US government were okay with letting companies hire foreign workers willy nilly, then there would be no limits on H1-B visas nor would this visa likely even exist. Instead, it is there for a purpose and that purpose is to limit foreign workers to force hiring of US citizens. This is exactly as it should be.
If you think you need to hire foreign workers, feel free open a foreign office and hire all of the foreign workers there. Just keep them there and do not bring them onto US soil.
H1-B Workers
One of the other problems that I have with hiring H1-B workers is that most of these worker’s wages get sent back to the country where that worker calls home. Most of the money is not spent in the US. So, in general, H1-B workers do not, for the most part, help improve the US economy. But, they do help out their own country’s economy by sending much of their paycheck there. This is, if for no other reason, a big reason to hire US workers over any other type of worker. This all assumes that you value your US based business along with the US economy.
Again, if you really need to hire cheap labor, open an office in that region and hire to your heart’s content. As a CEO, nothing is stopping you (other than perhaps the board of directors) from making that decision. Asking the government to grant more allotment of H1-B’s is not the answer and never will be.
Lack of Talent
If anyone on your hiring team is telling you that there is lack of talent, the real lack of talent is actually in your hiring team. Meaning, when they’re not finding people it’s because they’re simply not trying. There are people all over the US who are talented and willing to work. Yes, you might have to pay them more in some cases, but if you want good talent, you pay for it.
Is hiring an H1-B worker actually cheaper? Not necessarily. If your company is choosing to sponsor a foreign worker (whether or not they plan to get a green card), your company is in for a large number of fairly pricey and somewhat time consuming legal proceedings at regular intervals. In other words, expect legal fees and lawyers to manage this process. So, what you’re not spending on that worker’s wage goes to your lawyer to keep that person legally in this country (and your business in compliance with the law). Worse, if that H1-B worker chooses to leave the country before your sponsorship is over, the legal fees you’ve spent are lost. If nothing else, the proceedings can interrupt both yours and that worker’s schedule to meet legal deadlines. Even worse, an H1-B holder can work at your company just up to the point of becoming a citizen, making your company foot all of the bills and then they jump ship leaving you without a worker and a set of legal bills you still need to pay. It happens. It’s not pretty. You can simply avoid this by hiring domestic US citizens.
Silly Valley
It’s called this for a reason. If Silicon Valley CEOs are claiming they need more H1-B visas, I call hogwash. There are plenty of talented US workers. The problem is not in the talent pool, it’s in the talent acquisition process. Either the job role is too overreaching, in which case you still won’t find someone or the job role is overly tiny, neither of which a foreign worker would turn down even when they’re not qualified. Considering the unemployment rate today, your hiring managers are not even trying. Meaning, because most hiring processes are severely broken, its difficult to find talent because it’s hard to spot talent. That’s why you have a 90 day new hire grace period. Put it to use. Hire people, take chances, let those go early who don’t work out. Many job description postings are looking for the swiss-army-knife of talent. For example, a guru in networking, databases, systems administration and software development all rolled into one. If your company is a startup, you might need someone like this because your staff is so small, but chances are you’re not able to hire H1-B staff that early in the company’s life.
Still, a swiss-army-knife of talent is hard to come by no matter the size of your business. Pick the role that you really need most and train the staff for the rest. Focus on the skills you find in your candidate rather than those that are not there. If you can find a database administrator separately from the systems administrator, hire two people. You still need to have the backup. If you place all of your eggs in one job role basket, when that person leaves (and they will because they’re in demand) you have a huge hole that’s, once again, hard to replace. Choose smaller more easily replaceable roles. You’ll also end up paying a high wage to the swiss-army-knife talent versus much less for the limited role talent.
Hiring Processes Broken?
Hiring managers can sometimes create some of the most difficult interview processes leaving would-be candidates unable to show they have talent because the hiring manager asked the wrong questions. Yet, given a chance, many people would not only do well, but they would excel at the job. Hiring managers don’t see the talent and then claim they can’t find talent. The HR people pass that feedback blindly along to the CEO who wholeheartedly believes he/she needs H1-B workers for all to be right with the world.
Nope. I completely advocate that you need to exhaust all of the talent pool in the US before you jump on the H1-B bandwagon. And no, hiring one Indian worker does not mean you need to hire more Indian workers no matter how convincing that first H1-B worker may have been. However, if you promote an H1-B worker to a managerial position, you need to expect them to reach out to their friends living in India and then want to hire their friends who will also require an H1-B. Your hiring handbook should be very clear on this point. You should only hire H1-B workers after you have exhausted all domestic US workers and this is as it should be.
The point is, your company doesn’t need H1-B workers. It just needs better processes to find citizens living in the US who are willing and able to work the role. If you still think you need H1-B workers, please re-read this article again and then comment on why you think so.
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