Build Something That Matters: 8 Things that Drive Our Business

When you listen to venture capitalists, investors and budding investment hopefuls they use the term Lifestyle Business as though it was a 17^th century plague to be avoided at all costs.

Well – maybe it is, (from the investor’s point of view) but that discussion feels like bell-bottom pants and a tie-dye shirt at a Republican Convention: Out of place and dated.

People run businesses for all kinds of reasons these days. In my experience most are motivated to do something that matters and to do it in a way that creates value for employees, customers and investors. It is not a lifestyle business just because you don’t put investors first! Some of the greatest success stories of the last decade prove this point.

With the start of our business, Innotrieve, the first thing we did was develop a simple statement about why we were starting a business. Here is what we said we wanted to accomplish:

1. Put our technology to work in an area that is interesting and solves an important problem
2. Respect and support the freedom for individual employees to work the way they work best
3. Build products that allow us to work in areas we are interested in
4. Do interesting work that can have an impact on the way people work
5. Leverage artificial intelligence to make work more more interesting, and more empowering
6. Extend our ideas and intellectual property through valuable products
7. Build something a lot of people can gain value from
8. Be an important member of “The next Industrial Revolution:” The digital/data revolution

I don’t know if these principles make us a lifestyle business in the eyes of some investors, but I do know that my partner and I are motivated by a range of interests, and that won’t change. To build a better business, you build something that matters to you.

Launching a New HR Product: 7 Items to Consider

I sometimes think there are as many new products being developed for the HR market place as there are number of HR people in the world. Let me guess…. that would be about 243 Million.

Some days it feels like that. 

So how do you make sure your product stands out in this crowded world of new HR products?  Here are 7 items on my checklist that don’t get enough attention:

1. Your Tech is Cool, But Nobody Cares: Don’t get so enamored with the cool new technology you are using that you fool yourself into thinking that’s all it takes to succeed.
2. Messaging is Harder than You've Planned For: In a busy, noisy world, people don’t have time to listen to a long winded story about your product. You think you need an elevator speech? Think again, you need a Tweet!
3. Fresh Air In a Stale Environment: Fads grow stale quickly. HR Trends can be like last year’s Boy Band. You have to be fundamentally sound, and compellingly relevant.
4. End Results Marketing: Most people set the end result of good marketing at the wrong finish line. It is not the sale that you aim for; it’s the success of the solution. With a new recruiting solution, for example, success is a new hire. Sounds simple, but very few companies actually (sincerely) think that way.
5. Don’t Underestimate the Cost of Getting Service Right: HR is a people business and people want help from other people. Don’t assume that an automated FAQ and 3 guys offshore are going to cut it.
6. The Learning Never Stops: Your product has several problems, you just don’t know it yet. Make sure you set up your new product launch as a learning experience.
7. Impact on Culture: All HR products impact people. Really revolutionary products impact them in a big way. You can’t just have the best idea if that idea doesn't fit the culture. You are doomed if you don’t take the time to address culture as part of the product process.

The next decade is going to see an explosion of new products in HR. For you to have an idea with lasting value, you might want to consider these 7 suggestions for making sure your HR product succeeds.

Let me know if you have other ideas to add to the list.

4 Reason’s You Don’t Mess With Kahleesi’s (HR) Dragons

You could say that great HR succeeds with vision and an overriding conviction to mission, mixed with a level of legitimacy backed up by the ability to inflict pain when necessary!

Kahleesi would have been a great VP of HR!

OK – you’ll have to forgive me here on this one. I am a die-hard Game of Thrones fan. Kahleesi is the character who is sometimes known as the “Dragon Queen” (I seem to remember an HR Director we nicknamed something like that) and she is growing her army and her influence through power, legitimacy and an overarching philosophy that people should not be slaves. But if you mess with Kahleesi, the wrath of the Dragons comes upon you.

Just think how much easier your job would be if you had a few dragons to reinforce your rule now and again!

I like this idea. And here are 4 (only somewhat) tongue-in-check reasons why:

1. HR has the moral high ground: Think about it, while everyone in the company should be focused on making money (or in Kahleesi’s case, overthrowing all the other kingdoms) HR seems to be the only one that really understands that people – more than any other single resource – are the key to this. Kahleesi would agree. Free the oppressed and they will be loyal to you forever!
2. HR could use a little magic: Most people in HR recognize the fact that they are generally being asked to achieve the impossible.  They might commiserate with each other about this, but they don’t let it faze them. If need be, HR will walk through fire to show you they are endowed with certain magical powers. Be awed mere mortals!
3. HR could do so much better if they had some real power: You have to get 95% participation in the employee satisfaction survey by the end of the month (and it’s December). Does anybody ever really open up those emails from HR? Ah….but if you had a few dragons to enforce your commands!
4. HR has legitimacy – but is anyone acknowledging it: Poor Kahleesi (or did I mean HR manager), she knows she should be Queen of the 7 Kingdoms, and most people know she has a legitimate claim, but by gosh, if she is going to get anyone to pay attention, she is going to have to kick a few butts!

So march on HR leaders….one day you will conquer the world.

In the meantime, I am hoping my new company is building you a dragon! 

Quick Study (2): Employee Feedback on Referrals

A couple weeks ago in a blog post entitled Quick Study Finds 3 Reasons Employees Don’t Refer, I highlighted the reasons employees gave for why they were reluctant to provide referrals. I mentioned in that post that I would share some of the other results as well. So here you go:

First some quick data points:

• 170 employees were asked to participate in a new referral program
• 24% agreed to participate (41 employees)
• 6 jobs were posted – ranging from a help desk position to marketing to very technical
• 44 names were referred during the 5 week test
• Number of referrals per job ranged from a low of 4 to a high of 13
• The most referrals was for a marketing position, the least was for an HR position (go figure!)

When employees from the tests were interviewed, here was some of the key feedback:

• It’s Personal: Referrals are so personal. I had a hard time referring people unless I knew both the company and the person I was referring really fit perfectly, even though I knew that some people I rejected might have been OK.
• It’s a Noisy World: Even though this new tool was very easy to use and minimized my time, I am still just too distracted with so many other things during the day.
• What’s It All About: Our Company seems to hype referrals a couple times a year. A quick email and a mention at the company meeting just isn't enough to get my attention.
• Incentives Get Attention: The odds that I will ever see that $1,000 referral bonus seem remote (I don’t play Lotto) can there be other incentives for me to spend time on this?
• It’s My Network: I am reluctant to send too many referrals onto HR. What are they doing with the names? Will they spam my friends? This is my network of friends – leave them alone!
• Is Anybody There: I hate sending on a name and never hearing anything back. It’s just rude and turns me off!

And the last main bit of feedback:

• I Wouldn't Wish This on My Best Friend: It is all about the strength of the culture. I like working here, but I am not sure I would recommend this place to someone else. It’s a job, but nothing to brag about.

What are your thoughts about these results? Do you experience some of this in your referral programs? 

An Ode To The HR Professional

You work in Human Resources, you have too much to do.

The promise of new software, never quite comes true.

The sales guy you spoke to, says he has it all.

But then you ask the price and it almost makes you fall.

At the last convention, the future sure looked bright.

So many new inventions, to solve the HR plight.

One company does Big Data, but talks in terabyte.

They've never done HR, and you know he can’t be right.

Your company just merged, and your new boss looks 16

You hope she is much older, but you know it’s just a dream.

Now you have to teach her, how your job gets done

But every time she shows up, she’s always on the run.

Oh, you work in human resources, and you know that it's true

Every project that you need, is back in the IT queue.

The CEO says people, are always number one

But every time you ask for money, something else needs done.

But in the end you love your job, and take some time to Tweet

You let the world around you, know your job is neat.

At times you do think back, to what mama used to say,

You don’t work in HR, if you’re in it for the pay!

You’ll probably stay around, another year or two

You hear that HR mobile, will make your dreams come true.

So maybe if you ask her, your boss will not turn blue

When you ask to have your cell phone 
.........Upgraded from 2002.  

Quick Study Finds 3 Reasons Employees Won’t Refer

We recently conducted an experiment with 178 employees to find out how they would react to a new employee referral program. 42 signed up. That is 23.6%. Not bad, but also not anywhere good enough. I wanted to know why more did not participate.

Before we started this experiment we did a little researching of our own to find out what to expect. How many employees usually participate in referral programs? I had a hard time finding a study that focused specifically on that, but the number seems rather small. Less than 10% seems to be a common number I hear. (If you know of a study that provides good data about this – please send me the link)

That means if you have a company of 250 great employees that you would love to clone, you only get about 20 to 25 of them that ever pass on names for you to consider. Why is that?

After running our test for 3 weeks I interviewed a subset of the employees that participated in the referral program and a subset that did not. The responses were interesting and I will write about some more of them in future blogs, but here are the top three reasons employees did not want to participate in referrals:

1. Email Noise: This one surprised me (though maybe it should not have). An overwhelming number of the participants in both groups interviewed said they barely read emails that aren’t critical to the task at hand. Emails from HR or “corporate” get perused, but unless it really affects them right now, today, they put it aside. It is not that they have anything against participating in a referral program; they just didn’t slow down enough to read the email.
2. Fear of Failure Effect: Employees don’t want to be associated with a bad referral. They even stated in our conversation that they realized referrals usually resulted in better employees, but they were unwilling to pass along any name that might not be seen as a great referral.
3. Refer vs. Recommend (or just passing along a name): This reason was related to the Fear of Failure reason above but was different in a very important way. They did no trust that HR would still put a referral through the same kind of scrutiny they would a non-referred candidate. The employees said they knew a lot of people, but that was not the same thing as knowing whether they would fit in as employees. They were happy to pass on the name, but were not comfortable saying the person was a guaranteed good fit.

What's your experience with referrals? If you have any information on employee participation in referrals that you're willing to share,  I’d love to hear about it.

Doing Laundry: 4 Lessons for Building Great HR Software

Doing The HR Laundry

Doing laundry is only drudgery if it keeps you from doing something else.

  

One of the many advantages of being a “basement-office entrepreneur” is you can do the laundry during the day, and today I thought about 4 lessons that doing laundry can teach us about building great HR software. (OK, it’s a stretch – but hang with me here….)

Lesson 1: Separate the Light from the Dark. OK, this is no missive from a Jedi Master, but its roots are the same. Developers get so bogged down in the problems and exceptions that they forget to focus on the really good stuff. I have found a much better approach is to build in all the good stuff, make the software as delightful as possible, and then go back and eradicate all the evil with your Light Saber.

Lesson 2: Don’t Overload the Machine. Stop putting in so many features that you can no longer tell what the real purpose of the application is supposed to be. Have you ever tried posting a job in one of the “Top 3” recruiting solutions? Give me a break. I just need one button that says GO.

Lesson 3: Watch out for Imbalances During the Spin Cycle. This is all about evaluating your solution (taking it for a spin). Most HR solutions designers get too fixated on one or two issues and then over design the system to deal with that; while forgetting that the whole system needs to be in balance. This problem becomes particularly obvious to your customers when all your sales staff can talk about are two features. OK, I understand that your system can be in both English and Urdu, but can it actually track employee leave?

Lesson 4: Take Things Out Before They Wrinkle. This is not a statement supporting age discrimination.  This is the fact that most HR solutions designers don’t know when to stop. Have you ever noticed that Version 1.0 is often so much better than Version 2. Who told them we needed a feature to automatically schedule a lunch break when setting up the interview schedule (and to make it impossible to change it). I’ll eat when I want to eat!

Now, back to folding socks, maybe it’ll teach me how to play tennis.