You CAN Fix Stupid <Managers>...

Did that come out right? Yeah...I think it did. Let's review what we all know:

• The talent shortage is here, but it has been coming for 30 years. (That's what happens with a negative birthrate since 1971.)
• Most employers still use short-term hiring strategies, though we know this will be generational. We'll always have fewer workers than we've had. (They call it a baby "boom" because it eventually tapers.)
• Employees are still leaving as fast (or faster) than we bring them in. The biggest causes? (1) The Manager, (2) culture (tied to the manager), (3) lack of flexibility (also tied to managers), (4) lack of growth potential (again, the manager), and (5) pay - overall rewards (can be tied to the manager).

If we know this is the problem, why don't we implement solutions?

Let me take you on a brief tangent. I presented at a conference yesterday, and we discussed challenges related to workplace obesity. Despite decades of research and messaging that being obese is bad, the numbers continue to rise (to nearly 75% in the two categories). If you ask anyone in these categories, (a) they know it's bad, (b) they generally want to change, and (c) they would love to be healthier. So...why don't they change? Until they are ready to shift their mindset, lasting change won't happen. Sure, we can give them "prizes" to go on a walk, but real, lasting change occurs when THEY are ready to change, and they believe they can do it.

How does this apply to Managing Talent?

If an organization is going to get ahead of the situation and improve its hiring and retention strategies, it must adopt a different mindset. To get different results, you must do something different. Here are a few things employers must consider to change their outcomes.

First, Admit You Have a Problem

Like any transformation, the first step to recovery is admitting you have a problem. I hear many leaders say, "Our managers are taking care of 'that.'" No matter what "that" is, there are broad assumptions about what managers and leaders actually do. If there is no formal engagement, ongoing meetings, accountability processes, evaluations, etc. to outline and assess managerial functions and outcomes, chances are that much is assumed with little executed.

When a company says, "We need help with our managers," they take the first step. This is not an admission of failure. Instead, it's a statement that says, "We commit to doing what it takes to fix the problem." It doesn't discredit managers but allows them to evaluate their strengths, weaknesses, and opportunities. It also enables them to consider multiple strategies to help identify and address employee situations.

Train Managers

Most employers performed poorly before the pandemic in training managers (and abysmally at developing up-and-coming managers). When the turnover escalated following the pandemic, individuals were promoted into management roles without proper preparation. Now that they are in those positions, managers often lack the training to succeed. Today, though they have been in these roles for months or years, they may need the essentials of management and leadership to succeed. Effective management and leadership competencies do not develop by osmosis. Management competencies must be conscientiously developed.

Understand What Drives Your Business

New or untrained managers typically manage the way they have been managed. They also tend to be more emotional in their decision-making and fail to consider the bigger picture of what matters most. Lack of training and awareness also creates a propensity for knee-jerk reactions, responding to the loudest voice, and failing to consider the overall business needs. Helping managers understand company strategy, how they align with it, and their expectations to help achieve it can improve focus. Training managers on how to communicate strategy to employees and align individual goals with it can also help to build momentum.

A Case Study of "I Can't Fix This"

This week, I heard of a small company that has had a good run of business in printing and design. In a small market, relationships are everything. Their star graphic designer was behind their latest successes and initiatives. The more successful they became, the more successful its clients became, and the more they forgot where credit was due.

The employee was paid little while others earned bonuses and promotions from products, contracts, and services related to the employee's work. He remained loyal, but was required to clean-up work of higher-paid designers. He also had to work long hours, take work home, and give up his weekends. He was misclassified as "salaried" to avoid paying him overtime. To make ends meet, he took on side gigs and fully disclosed his work to his employer, who responded that they had no problem. There is no policy to say otherwise.

Conditions didn't change, and he finally had to quit to go freelance. After a few days, the employer begged him to stay. They gave him a 20% raise, full benefits, lowered his workweek to 32 hours (still paid for the full "salary"), and allowed him to "flex" his schedule. The employee stayed, but the treatment didn't change.

This week, he was called into the boss' office. He was told that the boss had seen a sample of a client's work that the employee had on his personal website. The employee acknowledged it was there as part of his portfolio. The boss said he took it directly to the client, and they "went through the roof." Without any warning, the employee was called in, told he had 2 minutes to "pack his crap," and that the boss never wanted to see him again. If he didn't have the work off his website within 24 hours, he'd get a letter from the company's attorney.

So let's review...

• The employer knew the employee was freelancing and expressly said they had no problem with it. No company policy forbids outside work or displaying personal work.
• The employer went to the client to throw the employee under the bus, so they self-inflicted this by making the client mad.
• Before the termination, the employee had considered the boss and the client as personal friends. He thought the feelings were mutual.
• This was a first-time offense. No coaching, discussion, etc. Termination on the first offense.
• The employer - a graphic design business - does not have a backup.

This now becomes a matter of "can" vs "should." There may be many reasons for what appears to be an emotional decision. Is it legal to terminate? Sure. Was it the right thing to do? Let's evaluate...

• Remember - people usually do things because they don't know what they are doing is wrong. As a young designer, had the employee been requested to remove the design from his site, he would have. He didn't get a chance.
• The business just lost its cash cow. This was the creative source that brought in the vast majority of money-makers for its products and those for its parent company for the past 18 months.
• The small market is based on relationships. The designer worked directly with all business owners. It won't be long for him to contact past clients. No non-compete was in place.
• The employee was working on 80% of all current projects. There is no project software to track progress. Good luck.
• The client who was upset also lost its cash cow. This designer was responsible for their most successful designs over the past 18 months.
• The employer had been paying this employee as salary-exempt when he was clearly hourly. Hmmm...remember that moment in the movie "Elvis" when the Colonel sends the invoice to Elvis' estate for services rendered?
• Finally, for this list, it is extremely difficult to find employees. Good luck finding a replacement.

The Moral of the Story

Every story has at least three sides to it. The example shared above is not meant to defend the actions or mistakes of a young employee. It is, however, meant to serve as a reason to reflect upon our ability to improve decision-making by our managers. Perhaps there were better decisions for both parties than keeping the employee. However, how we separate from our employees matters as much as how we employ them (especially in a small market).

As a business, we can...

1. Recognize the need for help - to upskill our managers and leaders in the best competencies and capabilities to meet today's workforce and business needs.
2. Train our managers by designing effective curricula and programs according to the competencies identified and improving the effectiveness of leadership execution.
3. Understand what drives your business and help managers align people, practices, and leadership at each level. As managers recognize the value of their people and understand how to align their efforts to meet strategic goals, they can help employees succeed (and ultimately support the company's success).

Here's to your success!

Dr. Wade Larson

www.OptimalTalentDynamics.com

[email protected]

Let's Connect! @DrWadeLarson