The Brave New World of ‘Open Hiring’

Greyston Bakery was founded 38 years ago in Yonkers, NY and per Mike Brady, CEO, the company “was founded on the idea that a profitable business could be the backbone of ethical practice.” 

Greyston Bakery pioneered the practice of Open Hiring ™ with a very simple premise: anyone who wants a job at Greyston’s can get one. People who are interested in working for the bakery sign up on a list and, when there’s an opening, they’re contacted in the order in which they’ve placed their name on the list. There are no interviews, background checks or drug tests. The company’s hiring philosophy is that if an individual is given a job they will do it and both skills and compensation will grow as they continue to work. 

Turnover in similar industries ranges from 30% – 70% while Greyston Bakery reports a turnover rate of just 12%. 

I call that success.

The company has now launched the Greyston Center for Open Hiring providing immersive learning experiences so that other companies can begin to think about their hiring and talent management practices in a new and inclusive way. And some companies are doing so.

After the entire U.S. HR team of the Body Shop visited Greyston’s manufacturing plant last summer they began to move quickly to implement an Open Hiring model. They launched Open Hiring for their seasonal hiring needs (200 seasonal hires) at a Distribution Center and saw dramatic results

“Monthly turnover in the distribution center dropped by 60%. In 2018, the Body Shop’s distribution center saw turnover rates of 38% in November and 43% in December. In 2019, after they began using open hiring, that decreased to 14% in November and 16% in December. The company only had to work with one temp agency instead of three.”

Impact to the business (ka-ching!) but also a profound impact on people’s lives; job seekers who were being left out of the hiring process with other organizations were now securing and maintaining employment.

I like it a lot. The whole thing.

Yet…there are many who don’t.

The topic was being discussed in an HR-themed Facebook Group the other day and there were minds being blown left-and-right. To paraphrase the gist of some of the comments:

  • “hiring without interviews? How can this possibly work?” <because, apparently, interviews have proven to be somarvelously effective>
  • “I would NEVER hire *certain* felons”
  • “no references? Getting references is critical!” <because talking to Joe’s pastor really gives you a lot of insight into how he’ll perform as an employee>
  • “I don’t want someone in a retail store touching me if they haven’t had a background check” (OK Karen) 
  • “negligent hiring!!” <what HR pros like to say when they have no other substantive argument>

What this online discussion demonstrated to me, sadly, was the utter inability of numerous HR professionals to move towards innovation. “Why can’t we find people?” they ask. “How come our turnover is so high? Maybe I should I do some more employee appreciation events” they ponder.

Rather, the tendency is to move into self-preservation mode. Preserve the interviews. Protect the 10-step selection decision process. Defend the decades-long ways of doing things.  

Very rarely though, even when supplied with data, do they seem willing to consider “maybe our process is shit and we should up-end it completely.”

That would be brave.

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A Changing Workplace: Exploring the Intersection of AI and HR

(this post originally ran at the Oracle HCM blog)

Artificial intelligence (AI) is quickly becoming a workplace mainstay. A growing number of organizations are embracing these new technologies and it is predicted that one in five workers will have AI as an integrated assistant at work by 2022. One aspect of this is the implementation of AI-based tools to reshape the way companies worldwide manage the hiring process and monitor employee well-being.

This shift presents new opportunities, along with new challenges, for HR professionals looking to orchestrate an optimal balance between technology and the workforce. To make the most of this intersection, it’s essential to carefully consider the impact AI can have on HR processes. Allaying concerns that frequently accompany the introduction of advanced technology and understanding how AI actually helps humanize the employee experience will make it more manageable to map out smart strategies for the evolving workplace.

The Potential to Increase Efficiency  

Numerous HR functions can be improved with technology, especially tasks related to recruitment and talent acquisition. For example, organizations might opt to use AI for top-of-funnel vetting processes, such as screening candidates. A digital assistant can gather information and ask potential employees a series of questions related to the job requirements. If the candidate’s responses fit the position, a digital assistant can extend an invitation to apply for the job. This screening process frees up time for HR professionals by automatically handling information and volume in a safe and secure environment.

If the company wants to pursue a candidate, using technology to schedule interviews is not only more efficient, but also provides a simple and satisfying experience for the candidate—much easier and more streamlined than sending 15 emails back and forth with a recruiter.

New hires can also benefit from AI tools that provide information about the company’s history, operations, and culture. Technology can also help new-hires socialize by lining up a lunch meeting or coffee chat with coworkers.

The Need for Ongoing Vigilance   

Over time, HR systems collect a large quantity of personal information about employees, creating risks and concerns around the disclosure and/or improper use of private information.

Several types of tech-related tools may cause particular concern among the workforce:

  • Tracking devices that are worn and constantly monitor an employee’s movement
  • Technology that gathers and analyzes data to identify employees who may be considering leaving the organization
  • Machine-learning technology with biases that build over time, such as a selection tool that aims to replicate successful hires by using data points but may eventually constrict the selecting criteria to a specific, narrow demographic

When implementing new technology, HR professionals can address potential fears by being upfront and attentive. A strategy that includes vigilance, protective measures, algorithms designed to be unbiased, secure cloud-based solutions, and ongoing evaluation may help alleviate concerns and ensure safety at all levels. 

A Chance to Make Work Human

More than one-third of consumers who use social media to voice an opinion about a brand expect a response in fewer than 30 minutes. Employees today tend to seek a similar consumer-driven atmosphere within the workplace. Making use of the available technology for HR functions can enhance and personalize their experience.

For instance, a digital assistant with natural language processing (NLP) could be used to answer common employee questions. Workers could turn to it to answer questions around holiday time-off or to discover specific benefits.  

By automating processes, AI can free HR professionals to focus on higher-level activities. With more accurate data and information available, it may become easier to spot opportunities for improvement, growth, and employee well-being. By applying capabilities, such as looking at how employees spend time on a company website, insights could be gathered related to how workers want to be treated or potential issues that can be addressed early on.

AI has the potential to bring more individuals into the workplace: It’s estimated that machines will create 58 million net new jobs by 2022. While this may ease fears of staff reduction, it may also create a shift in the working environment, with some workers needing to be reskilled or repositioned in a company.

HR professionals that embrace technology and acknowledge the benefits it brings can more fully become, as Kurt Vonnegut stated, “a human being, not a human doing.” 

…… click HERE to read more at the Oracle HCM blog……

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Global Human Capital Trends Report – 2019

Last week Deloitte released the 2019 Global Human Capital Trends report. It’s always a must read for me and I strongly encourage other HR leaders and those involved in the talent/people space to take a look. Last year, Deloitte described the rise of the social enterprise and this year’s report outlines how the factors and pressures that have driven the social enterprise not only continue but are growing more acute.

A few tidbits from this year’s report:

  • 86% of respondents believe they must reinvent their ability to learn
  • 84% of respondents reports they need to rethink their workforce experience to improve productivity, and
  • 80% believe they must develop leaders in a different fashion

Deloitte outlined a set of five principles to frame the “human focus” for the social enterprise; describing them as benchmarks against one can measure actions and business decisions that could affect people:

  • Purpose and meaning
  • Ethics and Fairness
  • Growth and passion
  • Collaboration and personal relationships
  • Transparency and openness

These five design principles define the “why” of reinvention and the 2019 Human Capital Trends, listed below, are divided into 3 categories:

Future of the workforce

  • The alternative workforce
  • From jobs to superjobs
  • Leadership for the 21st century

Future of the organization

  • From employee experience to human experience
  • Organizational performance
  • Rewards

Future of HR

  • Accessing talent
  • Learning in the flow of life
  • Talent mobility
  • HR cloud

This is a great resource for HR and organizational leaders; you can download the report here.

******* 

Watching this year over year as I do?  Here are Deloitte’s Human Capital Trends from the last 3 years:  

Deloitte Human Capital Trends Report2018

  1. The Symphonic C-Suite: Teams Leading Teams
  2. The Workforce Ecosystem: Managing Beyond the Enterprise
  3. New Rewards: Personalized, Agile and Holistic
  4. From Careers to Experiences: New Pathways
  5. The Longevity Dividend: Work in an Era of 100-Year Lives
  6. Citizenship and Social Impact: Society Holds the Mirror
  7. Well-Being: A Strategy and a Responsibility
  8. AI, Robotics, and Automation: Put Humans in the Loop
  9. The Hyper-Connected Workplace: Will Productivity Reign?
  10. People Data: How Far is Too Far?

Deloitte Human Capital Trends Report2017

  1. The organization of the future
  2. Careers and learning
  3. Talent acquisition
  4. The employee experience
  5. Performance management
  6. Leadership disrupted
  7. Digital HR
  8. People analytics
  9. Diversity & inclusion
  10. The future of work

Deloitte Human Capital Trends Report2016 Organizational design

  1. Organizational design
  2. Leadership
  3. Culture
  4. Engagement
  5. Learning
  6. Design Thinking
  7. Changing the skills of the HR organization
  8. People Analytics
  9. Digital HR
  10. Workforce management

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Ass in Chair, Inc.

Right now, as you’re reading this, people around the world are sitting in their offices. They have a desk, chair, phone and a computer with a monitor. Maybe two monitors if they either work in IT or are sufficiently high enough on the corporate food chain to get the requisition approved that uses valuable budget dollars to appropriate a second monitor.

The lucky ones have a cup of coffee, a can of Diet Coke or a packet of M&Ms within arm’s reach. Not everyone is afforded that luxury however; there are plenty of workplaces that don’t allow the worker bees to have any beverage or food at their desks. I’ve heard tales from one company in the UK that maintains such a policy although they do permit each employee to have a 500ml bottle of water. With an eye towards an aesthetically pleasing uniformity, all the bottles match.

Closer to home I’ve had conversations with numerous folks who are confined to a desk or cubicle with no ability to keep sustenance close at hand. The general corporate blather, usually passed on from HR, is (a) “we want you to relax and take a well-deserved break at lunch!” (wellness blah blah blah) or (b) “we want the facility to look nice when clients come to visit.” (even though no clients ever actually do come to visit).

I also continue to talk with an alarming number of people who, while perfectly content to head to the break room to grab an energy bar during the mid-afternoon slump, are rarely even afforded that opportunity. There are employees (start time 8 AM!) whose log-in at their workstation is immediately viewable by the department manager; they best be logged-in and ready to roll by 7:59 AM or discipline shall ensue!

  • Have to void your bladder? Sorry; you need to wait until break time at 10:15 AM.
  • Need to get to your doctor’s office by 4:30 PM because they close at 5 PM? Sorry; you’re expected to be at your desk until 4:30 PM. Unless you request and are approved for a full day of PTO you’re not going to be able to make that happen.
  • You want to take call from your kids when they get home safely from school in the afternoon? Sorry; no cell phone use is allowed at your desk. We require you to drop your phone off in the morning and you can retrieve it during breaks or at lunch time. (note: I wrote about a company doing this in 2013; 5 years later and I recently heard of a manager who is contemplating instituting this practice)
  • Christmas Eve and all of the customers, partners and 3rd party vendors you work with are off the grid? Sorry; this is not an official Holiday so you’re expected to be at your desk until the office closes at 5 PM. No; we will not be closing early.
  • What’s that you say? You can get your work done at home? You have a phone and an internet connection? Sorry; we don’t allow anyone to work from home and all employees must report to the office by 8 AM.

Welcome to Ass in Chair, Inc.

 

#culture101

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Advocating for the Workplace Revolution

I can barely browse through LinkedIn or Facebook, open a magazine (remember those?), or attend a conference/event where the topic of the Future of Work is not being debated, dissected and regurgitated out as sound bites. We churn through conversations on automation, AI and machine learning, the gig economy, re-skilling and up-skilling of workers, income stagnation, and more. We discuss how work will be organized, what organizations will look like, and how people will interact with each other within organizations.

It’s the future and it’s quite revolutionary.

While there are numerous shifts happening, when my thoughts turn to the future of work I focus on a few key areas as an HR professional. These are also, in my opinion, the things every HR professional should be thinking about:

 

  • What jobs will exist in the future of work? In addition, which jobs will survive and which jobs will become obsolete?
  • How will we connect people and jobs/people and employment? There’s got to be a better way than what we’ve been doing up to this point.
  • What will individuals experience, day-to-day, while at work?
  • For that matter, how much of what people do will be done AT work (i.e. an actual physical location)?
  • How will the psychological contracts between employers and their employees change and evolve? Will the things we’ve come to expect, on either side, morph or vanish all together? There’s already been a general erosion, over the fairly recent past, in terms of guaranteed/lifetime employment and job security…so what is yet to come?
  • What is the occupational outlook? What jobs/occupations will see a decline and for what jobs/occupations will we see a rise? (hint: it’s the jobs that require empathy, humanity and judgment)
  • What skill sets will people need to have in this new world of work? How can we help existing employees adapt and develop the skills and competencies that will be in demand? How do we prepare students to be the next generation of workers?
  • For those jobs that will rise in demand how do we ensure that wages are sufficient enough to provide a living wage? Many of these jobs (teaching, care workers, service) have historically been low-paying so how can we ensure the transition to the future does not leave entire categories of employees behind.

Is there uncertainty? Absolutely. Is there a bit of apprehension by those tackling some of these issues? Certainly.

There’s also enthusiasm in the midst of the ambiguity and change and I, for one, am somewhat eager to get the proverbial show-on-the-road. Some business leaders are embracing the shift; we see this every time we hear about a company trying something new whether it be Holacracy (meh), unlimited PTO (I want some of that) or providing extended paid parental leave. Note: let me remind you how sad that we have to applaud the offering of parental leave at all, let alone paid leave. The US remains one of the only countries in the world (the other two are Oman and Papua New Guinea) that do not offer paid maternity leave nor are businesses required to do so.

I agree with my friend Laurie Ruettimann when she says #LetsFixWork. I can’t wait for the future.

Viva la revolution!  

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