HR All Trumped Up

donald-trump-administrationRegardless of party affiliation or politics, the first 100 days of the any new presidential administration are expected to bring change. The Trump administration is no different in that regard. He has made promises to voters and has gone as far as presenting a contract with America. With the Republican party controlling both the house and the senate, the Trump Administration has a good chance of executing on some of its promises in its first 100 days’ plan.

For our audience of HR folks, what challenges will Trump’s first 100 days present?[i]

There are 4 key points in the position statement from Trump-Pence that will likely affect HR in the first hundred days of a Trump administration. [ii]  Here’s what that could look like for HCM:

  1. Repeal and Replace Obamacare Act. Precisely what Trump would hope to avoid by repealing ACA may become an unintended consequence. The national dialog regarding repealing and replacing the Affordable Healthcare Act will likely create more uncertainty about the future of employer sponsored healthcare in the workplace. Proposed changes to HSAs could radically increase the popularity of these programs. With the potential for accumulated HSA amounts available to pass between members of a family and onto the next generation, and HSA and a high deductible health plan may become the new normal.
  2. End The Offshoring Act. Companies that offshore production work, manufacturing, or even software development work should begin the planning process to reconsider if those decisions will be beneficial longer term under a Trump administration.
  3. End Illegal Immigration Act. Besides building a wall that Mexico will pay for, the Trump Administration plan to end illegal immigration will likely push E-Verify to the forefront as an employer mandate.[iii] HR departments should embrace this technology now. It works well enough, and it is always in your best interest to hire legally authorized individuals, so there’s not downside to getting started with E-Verify immediately.
  4. Middle Class Tax Relief And Simplification Act. The Trump Administration will likely roll out new payroll tax brackets early in 2017. I would also expect that HR departments will have to enroll employees in a new class of IRS approved payroll deductions for dependent care and elder care with matching contributions from the Federal government.

Ready or not, the first 100 days will bring HCM to the forefront as we respond to both new and anticipated legislative changes and executive orders.

[i] Trump, Donald. (11 Nov. 2016). Donald Trump 1st 100 Days.

http://www.npr.org/2016/11/09/501451368/here-is-what-donald-trump-wants-to-do-in-his-first-100-days

[ii] DonaldTrump.com. (2016). Healthcare Reform to Make America Great Again. Accessed 11 Nov. 2016 from https://www.donaldjtrump.com/positions/healthcare-reform

[iii] Moody, Kathryn. (9 Nov. 216) What President Trump with mean for HR. HRDive.com. Accessed from http://www.hrdive.com/news/what-president-trump-will-mean-for-hr/430062/

VC investment alters the HR technology landscape

hr_investment_bargraphBillions of dollars invested in HR technology companies have created a handful of new and reborn one-size-fits-all HCM vendors who made a big splash on the HR scene throughout 2015 and 2016. Not to be outdone, niche HR specialist vendors have upped the ante with some very compelling niche products targeting recruiting, performance, learning, compliance, and social collaboration. Choice is always a good thing for HR departments. How does all this investment in HR technology companies change the way HR executives think about using technology within their operations? 

To best-of-breed or not to best-of-breed? That is now the question.

There is no question that current thinking leads HR executives toward single-vendor-fits-all approach for HCM over using multiple best-of-breed niche software providers. The best-of-breed approach may gain favor as convenient and reliable data exchange service to core HR platforms mature. I’m seeing this trend occur with SMB accounting and sales automation providers now supporting data exchange to financial institutions, POS, fulfillment services, lead sources, and even benchmarking data. I expect the HR space to follow suite making a best-of-breed solution approach more viable for HR executives to consider in the future.

A new category is born—The Social Workplace.

Facebook, Google, and Microsoft are all well-positioned to Socialize the workplace. Social tools at work have the potential to reinvent tracking time, electing benefits, performance management, training, and coaching. This goes much deeper that LinkedIn or Glassdoor—think Facebook, SharePoint, and GoToMeeting combined. In fact, Facebook is already in the game with Workplace by Facebook (https://workplace.fb.com/) launched in late 2016. Gaining access to the employee’s wallet will be the holy grail for Social Workplace vendors, and HR is positioned as the epicenter to be the gatekeeper and policy maker for this new category. I’m concerned that many HR executives are too overwhelmed with day-to-day workload to properly address this opportunity. So, jumping into bed with Facebook may be convenient but not in their companies’ best interests. There are so many issues to consider: security, privacy, data ownership, productivity, etc. It’s HR’s ball to carry right now, and I’m hopeful that HR executives prioritize their time so they can lead the charge to carefully, thoughtfully, and safely deploy Social Collaboration in their workplaces.

Regulations grow exponentially; strategic outsourcing is HRs only hope to keep up.

With all good intentions government continues to burden companies with new reporting and regulation. With the expansion of E-Verify, EEOC, health and welfare laws, efforts to curb tax refund fraud and change tax brackets, the coming compliance burden continues to grow. We’ve learned from the ACA that new employment laws can be anything but a routine and predictable compliance job during their initial rollout. Already understaffed HR departments should strategically outsource these duties to specialists because when you bake in the true cost of doing the work yourself, outsourcing is truly more affordable and reduces compliance failure risks at the same time.

On premise software bites the dust.

Technology investments have favored Cloud vendors exclusively since investors like the advantages of the Cloud business model with shorter development cycle times, a single code base across the customer base, a streamlined support experience, and out-of-the-box integrations with third-party vendors. These things are all made possible by the Cloud software business model. The Cloud business model also does away with version upgrades costs and aligns customer and vendor interests around a stable and compelling product version which reduces the demand for support. That benefits both parties. Vendors are rewarded with lower costs and clients are rewarded with a better product and lower total cost of ownership. As most software vendors exclusively align their products to cloud deployment, on premise software becomes a relic of the past.

The billions of investment dollars in the HR technology space over the past five years has created new choice for HR departments. HR executives should look to outsource the increased burden of compliance to leave them bandwidth to focus on strategic technology investments such as Social Workplace tools and Human Capital Management software. Arguments will still be made for a single vendor solution, but a best-of-breed approach may gain more favor soon. Either way, HR needs to exercise caution with adequate due diligence in the vendor selection process. Don’t pick a vendor solely on technology demonstrations. A vendor that is too focused on feature-packing and super growth and not enough on customer service can be a nightmare to deal with. Nothing can make up for bad partner choices and failed implementations. The cost, aggravation, disruption, loss of time, and negative hit to your reputation as an HR leader is unrecoverable.

HR Cloud 9 requires a great ecosystem

woman_cloudHR Cloud 9 is being in a state of perfect contentment with your HR ecosystem. Getting to HR Cloud 9 isn’t a trivial matter, and it isn’t about choosing one vendor to handle everything. The choices you make when building out your HR ecosystem will either form your utopia or nightmare. To get to HR Cloud 9, consider how your ecosystem will fair in the following areas. If you do, you’ll be well on your way to Cloud 9.

You want intimate customer service experience that is highly accessible and feels like an extension of your staff. Vendors that strive for an intimate customer service relationship take customer service to a different level. Service personnel staff have relevant up-to-the-minute information such as sales orders, setup documents, and all service history. Each and every service staff member has the requisite and relevant industry and product expertise to be knowledgeable and helpful to customers. Customer service people who are empathetic and highly value the voice of the customer. They are reliable, interchangeable, efficient, and effective in resolving customer service issues and exceeding customer expectations. This is more than just responding quickly. Each customer exchange is a seamless, predictable experience, and a customer is never asked to retrace or rehash a service issue. And for those issues that require more than a few days to achieve resolution, service staff clearly communicate timelines and resolution expectations to mitigate misunderstandings upfront.

You want software designed the way HR people think and works the way it’s expected to. Great HR software is built with the end user in mind. The HR user experience should mirror the way HR people think and work. The manager experience should complement the managers’ work and work day. The employee experience should be designed for casual use and promote communication and feedback to encourage engagement and recognition behaviors, which lead to happy workers. Don’t settle for clunky and hard to use. There are way better options today. This applies to HCM and more. Today, the Girl Scout’s Digital Cookie™ app[i] is used by Girl Scouts to “gain new business and social skills in an entertaining and engaging way.” Your HR Cloud 9 needs this too.

You need speed and accessibility because lack of speed and accessibility kills productivity. Review service level agreements for reasonable up-time guarantees and response time measures for all major application functions. If you require access at remote locations or via mobile devices, verify that your solution supports those forms of access. Most cloud vendors use a shared infrastructure of web servers, applications servers, and database servers that are accessible via the public internet. Many cloud vendors do not offer exclusive use to a single organization, so performance can be impacted by what other users are doing at any given time. Don’t get bogged down by poor performance; it’s a real drag and a time suck.

You need to be sure that the vendor’s solution “box” of capability is big enough for your needs. A single code base is another key tenant of modern HCM systems. A lot of Cloud providers have application policies to customize look and feel and even some parts of the customer experience. So, that doesn’t necessarily mean that every customer is stuck with the exact same user experience. But it does mean that code customization for the unique need of a single customer is not supported. Keep in mind that mature solutions tend to have a bigger “box” of capability that allows more organizations to be easily supported by the product. Choose solutions that meet your needs today and for the near future.

You need an evolved reporting capability that shields end-users from complexity. Modern HR Cloud software solutions are built on large data repositories with comingled customer data because this is most efficient and affordable for them. This multi-tenant design requires programming to separate customers logically and adds complexity to data reporting. Techniques like de-normalized database views and metadata layers facilitating intuitive data relationship, grouping, and summaries go a long way toward enhancing the productivity of a reporting user. Ultimately, the best approach eliminates all reporting complexity by abstracting the data relationships from the end-user altogether. This yields point and click report definitions, grouping, and summaries in the most user friendly format available and ultimately makes the reporting function available to a greater cross section of your organization.

You need good support for system integration, data imports, and data exports. Supporting the data needs of the various executive that an HR department services means getting data in and out of the system in a secure and efficient manner is an essential requirement. Employee loads, time imports, carrier feeds, G/L files, and published web service integration points are just a few examples. Don’t get painted in a corner with cloud solution that doesn’t meet your integration requirements.

Achieving the perfect ecosystem for your HR function could mean multiple vendors.[ii] Look for each of those vendors to provide an intimate customer service experience, fast and reliable access, flexible software capabilities that meet your current and future needs, a user experience that mirrors the way people work, and reporting and data extraction that don’t require a programmer to use.

Choose your partners wisely and be on HR Cloud 9.

This blog was written by Richard Cangemi, Chief Executive Guru at PeopleGuru™. This post may not be copied or published without permission.

[i] Girl Scouts. Digital Cookie 2.0. GirlScouts.org. Retrieved from https://www.girlscouts.org/en/cookies/all-about-cookies/digital-cookie.html (accessed 18 August 2016).

[ii] Fosway Group Limited and Decebo®. (July 2015). Integrating the HR Landscape on the Cloud. Retrieved from http://www.cedma-europe.org/newsletter_articles/misc/Integrating_the_HR_Landscape_on_the_Cloud_(Jul_2015).pdf

Dark clouds of vendors are hanging over us

Do you listen to who uses your software?  Are you really listening to those who are responsible for the success of the project and your product? Or have you completely deprioritized your existing clients’ needs due to the constant push for new customers and revenue growth? Are you slamming customers onto the software without regard to their unique needs and befuddling and disappointing stakeholders and end users with lack of tangible results from their investment and hard work? Are you forcing new clients to compromise core objectives to accommodate overly optimistic go-live dates? Do you feel compelled to be a jack-of-all-trades and showcase feature parity with competitors hijacking your development roadmap leaving your product a mile wide and inch deep?

In my experience, the answers to these questions are now too often “Yes,” which is a strategy that is short sighted and sure to backfire. Bloated, hard-to-use software, rushed implementations, and low user satisfaction rates are not a recipe for success or growth. They are the recipe for failure. Cloud software vendors need to rethink their priorities and focus on change in the following areas.

Feature parity and one-upping your competition consumes development pipelines.

Rebalance priorities from adding new features to simplifying user experience.

It’s so easy to get caught up in a feature parity race and checking all the boxes on RFP responses that you completely neglect making the experience intuitive and creating the mobile-friendly experience that users desire. Your priorities are skewed toward taking orders while the needs of an existing, loyal user base are missed. The software gets bigger, more bloated, and harder to use. Users’ reject the software because the added features actually take them backward not forward. This alienates your users and lowers customer satisfaction. That consistently results in client losses over time.

Conversion of data in and out of the system is way too hard.

Step up to the plate and provide tools to make transforming data to and from your system fast and easy. 

Do vendors make it is hard to extract accurate and complete data from their system so they can’t easily be fired? Is conversion of data into a new system overly technical where it requires the use of expensive professional service resources just because the vendor wants the professional service revenue? Cloud based systems are often inherently inefficient and time consuming for data entry. Getting data into the cloud has been the Achilles heel of the industry. Vendors that do nothing to assist their users with data conversion features leave their customer between a rock and a hard place.

There is little focus and no vendor commitment to achieving the users’ desired outcomes and process improvement opportunities are ignored.

Truly engage as a partner ensuring that customers desired outcomes are fully met.

Once you’ve signed a contract with your cloud software vendor you’ve now begun a race to the finish line. Why is that? What is the rush? Is it because the vendor needs the client to go-live to recognize the revenue? Understanding user needs and business needs and then tweaking the software to meet those needs adds time and complexity to an implementation project. It’s faster and easier to ignore the uniqueness of each customer and conduct a vanilla implementation. Vanilla is what some Cloud software vendors push.

The result is an initial implementation with many missed opportunities for process improvement. Simply moving your current way of doing things over to a new system without thoughtful consideration of how the new system can be leveraged to improve things will likely perpetuate existing problems and inefficiency.  It is shame for Cloud vendors to railroad and marginalize users this way. It is not just a common courtesy, it is an obligation, for a vendor to ensure that their clientele isn’t hurried through implementation so that each client can get the most of their software investment.  As some claim Einstein said1, and as Rita Mae Brown wrote in Sudden Death, “Insanity is doing the same thing over and over again, but expecting different results.”2

Cloud vendors would be smart to wise up and address some serious strategic problems that stem from their insatiable desire to add new clients at the expense of taking care of the ones they already have.

1 Becker, Michael. (2012 Nov. 13). Einstein on misattribution: ‘I probably didn’t say that. Becker’s Online Journal. Retrieved from http://www.news.hypercrit.net/2012/11/13/einstein-on-misattribution-i-probably-didnt-say-that/

2 Brown, Rita Mae. (1983). Sudden Death. (pp. 68) New York: Random House. Retrieved from https://books.google.com/books?id=QJj9VqInFyUC&pg

HCM – Transition to Strategic and Predictive, Highly Engaged and Highly Productive

HCM Implementation Hierarchy

Phase 1 – Wage and hour, payroll and tax compliance requirements

Like food and shelter are to Maslow’s Hierarchy of Needs, Phase 1 HCM needs are fundamental to successful existence for any organization. An HCM implementation ensures these needs are fully met first.

Even mid-sized companies can struggle with Phase 1 needs and can find themselves in a fight for their lives. This can be due to growth spurts, mergers or acquisitions. Growth in employee counts, geographical footprint or revenue, all subject the company to governmental regulations including the Affordable Health Care Act, multi-jurisdictional taxation, and wage and hour law requirements, which strain an over-committed and growth-oriented management team. Spreadsheets, small-business payroll outsourcing and paper approvals are overwhelmed by sheer volume, inefficient procedures and duplicate processing. Information is lost, entered into systems multiple times, or otherwise inaccessible, inaccurate and/or ignored by managers.

I’ve seen first-hand how disruptive Wage and Hour or Department of Labor audits can be without the underlying recordkeeping to properly support the company; a costly event in precious time, legal fees, and fines. I have also witnessed dishonest employees and managers falsifying timesheets and payroll records literally robbing a company of payroll funds for years. Those management teams were preoccupied with growing the business and just didn’t have the proper HR systems in place to protect their company adequately.

Make no mistake that organizations with Phase 1 needs can be exciting companies with an impressive growth story, compelling products and services, and a management team engaged in fueling the rocket with talent and capital. And often those same managers are savvy enough to recognize that to continue their impressive growth story hinges on fixing these foundational HR issues.

Phase 1 of the HCM implementation is all about reduction in the number and complexity of manual paper-based payroll transactions to ensure accuracy of management reporting and compliance with governmental regulations. This means deploying HCM features like:

  • A system to facilitate daily collection of time and labor (biometrics as needed) with manager oversight and approval directly fed to payroll.
  • Enterprise level payroll processing with the controls needed to ensure proper federal, state, and local taxation and labor allocation broken out by the needs of the company, whether that be by location, department, project, job, and/or task. That information is ultimately reportable and fed to the general ledger so the organization has a true picture of its spending in the various areas of its business.
  • HR recordkeeping practices are transitioned from small-business payroll, spreadsheets, and paper to an electronic system so this information is touched once and compliant with governmental regulations and can be managed efficiently.

Phase 2 – Improve transactional efficiency and productivity

Phase 2 is largely about workflow automation and can account for a good portion of the return on investment projected for the entire HCM project. Paper processes and duplicate work are transitioned to a vastly more efficient framework of system workflows and notifications. The organization benefits greatly by using Employee and Manager Self Service as data entry and approvals can be handled one-time and at their point of origin. Employee adoption of self-service is key to this phase and will likely require cultural reinforcement from top management.

The Phase 2 implementation delivers the benefits of HCM features like:

  • Employee Self Service allows employees to help themselves via a mobile device or web browser to view or modify information about themselves, including time-off requests, timesheets, compensation, and benefits. This feature reduces the demand for HR and managers to service enquiries from employees.
  • Manager Self Service empowers supervisors to manage information for their direct reports via a mobile device or web browser and to approve requests for time-off, payroll, benefit, or schedule changes online and in real-time.
  • System workflows and notifications streamline approval processes that are uniquely programmed to adhere to company policy, inform all relevant decision makers and collect electronic approvals.

Phase 3 – Talent Management

Phase 3 is about Talent Management features such as Recruiting, Onboarding, Benefit Enrollment, Performance Management, Salary Administration, and Career Development. Each of these capabilities addresses a specific area of the Human Resource function with a mobile and web-based capability to engage employees and supervisors in administering this work conveniently and efficiently. Careful attention must be paid to the foundational system workflow policies to ensure that the companies underlying HR policies are respected at all times.

  • Recruitment features include branded candidate mobile and web portals for job seekers, assessment and review tools for hiring managers, and system workflows to guide candidates through the process of completing job applications, screening questionnaires, interviews, and ultimately the offer process.
  • Onboarding walks a newly hired employee through the hire process, collecting relevant information and signatures for hiring paperwork.
  • eDocuments eliminate the paper documents and replace them with a mobile and web-based presentation and repository system that records signatures and document versioning.
  • Performance management provides for talent assessments, performance reviews, and succession planning with employee, supervisors, directors, and peers all engaged in the feedback loop.
  • Salary Administration distributes salary increases and bonus assignments across the entire organization respecting department, division or location budget requirements and engages the decision-makers with a multi-step approval process. Once all sign-offs are made, the system records employee and payroll changes seamlessly.
  • Automate Benefit Administration using online enrollment, carrier eligibility feeds and billing reconciliation tools. Employees enroll in benefits online and changes in those enrollments are conveniently fed to carriers electronically.

Phase 4 – Social HCM and Predictive Analytics

Phase 4 is for the most committed, sophisticated, and engaged management teams. These organizations consider human capital vital and invest accordingly striving to achieve a highly-productive workforce that is highly-engaged, and this can be an elusive goal. It’s not as simple as implementing system features. An employee engagement philosophy of teamwork, collaboration, rewards, and recognition is vital along with a management commitment to transparency to the drivers of the business. And the benefits can be tremendous with productivity gains and improved employee retention. It’s a simple fact that recognition, now distributed and administered by the system, can play a big part in employee retention and productivity. As Tom Peters co-wrote in Excellence, “…the simple act of paying positive attention to people has a great deal to do with productivity.” The Social HCM acts as both a conduit for teamwork and collaboration, and it speeds the feedback loop between project stakeholders and contributors to help keep projects and people on track.

Phase 4 is focused on the following initiatives:

  • Predictive Analytics provide a real-time, deep, and intuitive understanding of your organization and transparency to reveal the drivers of the business.
  • Social Collaboration features foster an engaged workforce enabling employees to easily build relationships, cross-collaborate, learn, share knowledge, and ultimately improve productivity.
  • Recognitions and rewards capabilities provide a framework for consistent, fair and public recognition to those deserving such accolades. Automation of badging and awards with points tracking removes the chore of reconciling points for redemption of gifts or other company rewards.

This phased methodology makes transitioning to a strategic, predictive, highly-productive, and highly-engaged workforce an orderly and controllable process. Of course, getting to the top of the pyramid requires real commitments to transparency and a philosophy that engages and rewards employees.

For organizations that aspire to be strategic, predictive, highly-productive, and highly-engaged, a modern HCM is just too compelling of a technology for those businesses to ignore.

References

McLeod, Saul. (2007/2014). Maslow’s Hierarchy of Needs. Retrieved from http://www.simplypsychology.org/maslow.html

Peters, Thomas J., Waterman, Robert H., and Austin, Nancy. (1992). Excellence: In Search of Excellence and A Passion for Excellence. (pp. 94). Quality Paperback Book Club. Retrieved from https://books.google.com/books?id=scy5AAAAIAAJ&dq

The Corporate Psycho

psychoThe Corporate Psycho is an individual who systematically lies, coerces, intimidates, or otherwise instills fear in coworkers in the pursuit of power within an organization.

Hiring this person is your worst nightmare. They look great on paper and maybe their references even check out, but you will wish—no you will pray—that you didn’t hire them. And once part of your team, the psychopath will systematically and maliciously agitate and sabotage the efforts of coworkers.

The Corporate Psycho is a predator and you are its prey.

The Corporate Psycho has a self-serving agenda with no moral compass. They systematically oppress individual contributions with the intent to disrupt productivity and foster malcontent. They are deceitful and insincere in their relationships and communications. Once inside your department, the Corporate Psycho will destroy the quality of your work life and relationships by undermining the key ingredient to a functional workplace: TRUST. Once in the throes of chaos created by the Corporate Psycho, coworkers lack trust and confidence in each other. Finger-pointing and assessment of blame thrive. New challenges and problems surface, and nothing seems to work like it used to. Even the things that were easy are now hard. Productivity drops, deadlines are missed, quality suffers, negativity thrives, absenteeism skyrockets, and most good people move on to greener pastures. And then your department suffers more as it is placed under the microscope of upper management. That was the Corporate Psycho’s plan all along: to create the chaos and then take advantage of that chaos.

What makes the Corporate Psycho so treacherous?

They are psychopaths and very skillful liars, and they believe that their views of the world are more enlightened than others. They have total disregard for people and treat them as a means to end. They befriend only as a means to gain information and power and then use this information to disrupt order and promote their own agenda. Once the workplace is in chaos, they win over vulnerable leaders by promoting an insider’s view of how things really are going in-the-trenches. Only they are misleading leaders with lies peppered with just enough truth to seem credible and actionable. And the cost of the Corporate Psycho is substantial.

With an adult population consisting of 1% to 2% psychopaths in the general population,1 you are very likely to encounter a Corporate Psycho in your ranks. Consider the following outcomes directly attributed to an onboard Corporate Psycho:

  • Less engaged workers are less productive. The Gallup organization estimated that an average of 18% actively disengaged employees cost the economy as much as $450 to $550 billion dollars per year in lost productivity including absenteeism, illness and other low morale issues.2
  • According to Cornerstone OnDemand, good employees are 54 percent more likely to quit when they work with a toxic employee.3 Replacing employees is expensive and for skilled workers can easily exceed $10,000 per hire.

How do you defeat the Corporate Psycho?

The key to defeating a Corporate Psycho is to recognize the agenda early and to disrupt any maniacal plans.

Recognize the warning signs. Identify potential Corporate Psychos by their telltale traits. This person may appear to fit in at first, but then you will begin to notice the signs. It won’t take long for this person to gain trust and set their plan in place. Assess whether this coworker is working on a separate agenda, refuses to follow protocols, is overly negative, or two-faced and insincere in communications and dealings with others. Ask yourself:

  • Does this individual proclaim to be a rigid follower of protocol but in reality is not?
  • Does this person seem overconfident and display a superiority complex with others?
  • Are they willing to do whatever it takes to ascend in the company?
  • Is there a general disregard for others’ contributions?
  • Does this person take credit for others’ work?
  • Does this person generally take issue with authority?

Once a suspect is identified as a potential Corporate Psycho, govern your behavior accordingly.

Don’t be bullied. The Corporate Psycho needs your help to promote an agenda, so don’t be a victim. If you suspect you are working with a Corporate Psycho, don’t accept advice or share information, unless it is a requirement of your job. Keep your distance. The inner workings of your job and the difficulties of your workday should be kept between you and your boss. Be sure not to put the Corporate Psycho in a position to fight battles on your behalf with your supervisors. They will not represent your best interests. And resist the temptation to get baited into negativity directed to the company or other coworkers.

Document everything. When dealing with a suspected Corporate Psycho, document every exchange with this person. Keep a log by writing down the time, place, and detailed notes so you can reconstruct the substance of your meeting. Remember, this person is a psychopath – he/she will not expect you to document your interactions as they view you as too “weak” to foil their plan. When things get chaotic you’ll be glad you documented because you will be in a position to justify your actions with your supervisors.

The Corporate Psycho thrives via a web of backchannel and under-the-radar relationships and information. The most successful of which appear to be sincere, charming, smart and engaging communicators. They systematically instill fear, mistrust, and incite negativity with the goal of making you believe that they are essential to survival in the new world order. Your high standards and moral compass are the best way to rise above any chaos created by the Corporate Psycho. Because ultimately we all need the confidence and trust of our coworkers workers to be successful. As Warren Bennis said, “Trust is the lubrication that makes it possible for organizations to work.”4

Footnotes

  1. PsychVisit.com. “Course and Prevalence of Antisocial Personality Disorder and Psychopathy” http://www.psychvisit.com/conditions/antisocial-personality-disorder-psychopathy/5-course-antisocial-personality.html (accessed 23 Nov. 2015).
  2. Susan Sorenson and Keri Garman. “How to Tackle U.S. Employees’ Stagnating Engagement,” Gallup, 11 June 2013, http://www.gallup.com/businessjournal/247/high-cost-disengaged-employees.aspx.
  3. Cornerstone OnDemand, “New Research Exposes the Hidden Costs of ‘Toxic Employees,’” 31 March 2015, https://www.cornerstoneondemand.com/news/press-releases/new-research-exposes-hidden-costs-toxic-employees.
  4. Robert Tucker, Innovation is Everybody’s Business: How to Make Yourself Indispensable in Today’s Hypercompetitive World (Hoboken: Wiley & Sons, 2011), 157.

When you dance with the gorilla, it is the gorilla who decides when you stop

A disagreement between ADP®, one of largest payroll processing companies, and Zenefits™ a self-described startup that recently raised $500 million at a $4.5 billion valuation has now been escalated to the court room. This disagreement centers on the method that Zenefits™ used to gain access to ADP®’s payroll system without specific authority granted by ADP® to do so.

ADP® says: “On June 4, we disabled Zenefits access to ADP’s RUN small business solution due to unusual and alarming demand for data from Zenefits far out of proportion to the number of clients who have allowed them access to our system.”[1]

Zenefits™ has made a very public display of itself on social media outlets accusing ADP® of acting in bad faith and succumbing to fear, uncertainty, and doubt. In this squabble with ADP®, Zenefits™ has garnered some high profile endorsements including a couple of A-list celebrities.

So, you might ask how Zenefits™ got itself in this sticky situation.

1)      Their promise of delivering disruptive technology is somewhat misleading. The definition of disruptive technology is one that displaces older technology.[2] But Zenefits™ doesn’t own a payroll platform as a part of its hub-and-spoke business model[3]; its strategy is to leave customers with their existing payroll company such as ADP®.[4] But payroll is arguably the core hub technology covered by its service designed to administer HR, payroll, and employee benefit plans. Can Zenefits truly claim to be a disruptive technology without control of the core technology underlying its service? Is piggybacking on top of third-party payroll providers without control of the core technology too risky to be viable as a long term strategy?

2)      Zenefits™ is wanting to eat ADP®’s lunch and dinner by keeping the higher margin brokerage commissions and leaving ADP® with the lower margin payroll revenue. There is way more revenue per employee and margin in selling health insurance than in payroll.It’s no secret that payroll companies are looking to brokerage services as an area for future opportunity. ADP®’s (and Paychex®’s for that matter) benefits brokerage constitutes almost all of its current growth. Consider the fact that a 4% brokerage commission for a typical employer sponsored health insurance premium of $8k and $24K a year represents $320 to $960 in annual revenue per employee while fee revenue for payroll is just $90 per employee per year. And selling insurance has only a handful of customer service administration events per year while payroll has weekly (or even daily) customer service events per year to manage.

3)      When you dance with the gorilla, it is the gorilla who decides when you stop. Zenefits™ needs ADP® to play nice since ADP®’s payroll is the core technology to its hub and spoke service model. And ADP® knows it and is prepared to play hardball. The ADP® website states: “We have never integrated with Zenefits™ in any sense and have never authorized their method of extracting data from our RUN payroll system. They gained access to our systems by convincing clients to give them administrative access to our platform. Despite having many legitimate ways to integrate with ADP properly, Zenefits™ chose an unsecure and indirect approach.”[5] ADP®’s statement is likely vetted by their legal team and therefore sound and given ADP®’s size as the entrenched incumbent that does not bode well for Zenefits™ getting their way anytime soon.

Our industry—the HR, Payroll and Benefit Administration space—is extremely competitive and technology-driven with complex compliance requirements. It takes a lot of hard work, intelligence, deep understanding of the law and customer service to make it in this business. And it takes lots of effort to convert clients from one Payroll company to another. I know why Zenefitswould want to leave the hard-part—the Payroll part to someone else, but I also know that there are no shortcuts in life. To become a disruptive technology leader in our space, I believe that you need to own all of your core technology so you control your users’ experience without the risk of someone or something pulling the rug out from under you and your customers.

So, this move by ADP® is not surprising at all. ADP® is simply a business that is protective of its customers’ assets and its future growth opportunity within its client base.

[1] ADP.com. The facts about ADP & Zenefits: Response to the claims made by Zenefits. http://www.adp.com/zenefits/downloads/The-Facts-About-ADP-and-Zenefits.pdf

[2] Zenefits has stated that it is a disruptive technology company. Zenefits | Disrupt NY 2013 Startup Battlefield. https://www.youtube.com/watch?v=KporpXG0XK8

[3] Inc.com. “Instead of charging for software, the idea was to do a hub-and-spoke model. http://www.inc.com/magazine/201503/liz-welch/hr-technology-with-benefits.html

[4] In an article written in the March Employee Benefit Advisor, Parker Conrad, CEO of Zenefits, openly stated Zenefits does not want to get into the payroll game. He says: “The reason is that payroll is really complex and there are really high switching costs. We’d much rather just be connected to everyone in that space and be friends with everyone in that space.”

[5] ADP.com. The facts about ADP & Zenefits: Response to the claims made by Zenefits. http://www.adp.com/zenefits/downloads/The-Facts-About-ADP-and-Zenefits.pdf

Trademarks in this blog post are the properties of their respective owners.

Before you hire that old pro

It’s really not about ageism. It is simply that a great attitude and passion to succeed trump years of experience and perfect qualifications every time.

Most recently with a sluggish economy, I’ve seen more expert candidates apply for jobs in the past year than ever before. And you’d think that would be a good thing, right? A perfect match between a job seeker’s past work history and the job requirements seems like a perfect hire. But I’ve witnessed seemingly perfect job candidates become under-performing employees. I’ve seen this enough times that a seasoned candidate is now a red flag. My best hires have almost exclusively been individuals who viewed their new job as a growth opportunity and worked very hard to be successful. And my more memorable worst hires have been those who seemed heavily qualified but yet fell short of expectations after being hired.

So why do these seemingly seasoned hires fail to thrive?

#1 reason – hiring managers are so focused on the technical match between the candidate’s past experience and the job requirements that they shortcut or deemphasize the rest of the recruitment evaluation process. It is huge rookie mistake, and I’ve made it myself. We become so enthralled by the possibilities of hiring the hit-the-ground-running, take-me-to-the-promise-land job prospect that we overlook the candidate’s shortcomings in terms of organizational cultural match, willingness to learn, and overall attitude.

#2 reason – our expectations are too high for the seasoned veteran’s performance. The seasoned veteran is short-changed on job training and knowledge transfer. The idea is that they really don’t need it, right? They already know what they are doing. Just look at their résumé. That is just wrong because different companies have different ways of doing things, and you can’t assume that a seasoned pro will be able to translate 100% of his/her skills from one company to another.

#3 reason – we undermine peer support. We position our seasoned new hires in a way that threatens peers and coworkers. They then gather no support and are left to die on the vine. Seasoned hires are often viewed as a threat to job security within a department or organization, so it is imperative that you ensure that each new hire is embraced and socialized adequately.

#4 reason – our seasoned new hire can carry some unwanted baggage and can be difficult to manage. I characterize these overconfident hires as overzealous in their contributions and opinions, unwilling to learn, and often lacking motivation or drive. I’ve seen and heard it all from this group. From “been there done that, so I’m not going to try it again”, “it’s worked my way just fine for 25 years” (whether the new hire is 25 or has 25 years of experience), or my favorite is the “I do not need to be told by some 20-something how I should be doing my job”. Organizations only thrive when teamwork, knowledge transfer, and learning are part of the work environment.
So how can I avoid this? I can’t just disqualify a seasoned pro. That wouldn’t be fair or even legal.

Here’s what I’ve decided.

Balance the technical match of skills to job requirements more evenly with assessments of your job candidates regarding organizational cultural match, ability to learn and adapt to change, leadership qualities, etc.
Carefully evaluate every candidate’s individual motivational factors. The best hire will often have something to prove. He or she is motivated to do a good job and be noticed. Access what will drive each of your candidates to perform, and this should help you more wisely choose who to hire.

Don’t always hire the smartest guy in the room, especially if that person is convinced he or she is the smartest. A better candidate is the one that demonstrates the ability and willingness to learn. These skills will serve your organization better longer term than any accumulated knowledge that a candidate may seemingly have.
The next time you are considering hiring a seasoned candidate, I recommend sticking to a balanced evaluation process that does not over-emphasize the technical needs of the job and being mindful of the need to support your seasoned new hire with the same training and internal support as your other employees.

Consumerize or Die

Expectations of how simple and easy-to-use enterprise software should be are rapidly changing. iPhone and Android devices are so easy-to-use and common that they are raising the bar on how easy-to-use enterprise software applications need to be. And this in my opinion is a good thing.

It’s high time for enterprise software vendors to simplify their applications in the same way that the iPhone and Android have been simplified for consumer use. A mad rush to one-up the competition and add features or functionality has left us with bloated corporate applications. ERP, HR, training, CRM, and payroll applications seem to be more of a patchwork of screens and reports than a flowing portal to corporate information. Software vendors who wish to thrive in the future should take note and make some major investments in changing their software and their thinking in the following areas.

Simplified User Experience

Most corporate end users have been exposed to well-designed consumer software. Is it too much to expect corporate applications to have self-evident user interfaces that are fast, convenient, and functional? Or applications that are built for lay people and not only techies? Kludgy interfaces need to give way to intuitive and easier-to-use ones where information flows from a single point of data entry to secure storage and then to all places that are authorized to consume the information. In other words, I should enter a person, place, or quantity in one and only one place, and the software should handle the complexity of storage and access behind the scenes.

Data flow and real-time access

Offline and batch integrations just won’t cut it anymore. Onboarding an employee in payroll shouldn’t require a batch to run for the employee to be hired in benefits or time and attendance. Instantaneous access to real time information is the only acceptable norm for enterprise systems. Web services have existed for many years to provide for secure information exchanges so there’s just no excuse for offline batch information transfers. Corporate data flow from the information owner to the information consumer can happen immediately. Anything less is just not hip enough to be considered current.

Mobile-First Strategy

Data access should be 24/7 and from any type of device with a minimum of hassles. Often the most convenient option for a user is access via mobile devices. Application users may opt to use the full-site option where mobile functionality doesn’t exist or if it is more convenient to use the full site. To satisfy users’ expectations, enterprise software vendors need adopt a mobile-first strategy and accommodate the convenience of mobile access by careful planning and skilled development of their applications to leverage the strengths of mobile devices. Leading vendors will focus efforts toward mobile use wherever it is practical and will provide full-site options for functionality that doesn’t lend itself to smaller screen formats.

Unfortunately for enterprise software vendors, much work has to be done. It’s just not a matter of cut-and-paste or an application of “lipstick on a pig” to make my suggestions a reality. This effort will require much user interface rework and tradeoffs will have to be made between features and simplicity. In the end, vendors that make these investments will be rewarded with less demand for support and, even more importantly, happier end users.

So, enterprise software vendors: get onboard with simplified software, real time access, and a mobile-first strategy or become obsolete because soon your customers will expect nothing less from you.

Avoiding Job Burnout

What does a project with a tight delivery timeline, too many competing work priorities, and conflicting personal and work commitments have in common? They can all contribute to that feeling of being overwhelmed, and they can ultimately lead to job burnout.

And job burnout is not a place you want to go to. It’s a cake made of unhappiness, filled with exhaustion, and topped with resentment. It’s dark and cold place where one bad day hopelessly leads to the next even worse day. Over the course of my career, I’ve seen firsthand how burnout can turn the positive, organized and productive into negative, chaotic, and ineffective. And, I’ve found five principles to help team members turn it around before it becomes burnout.

1. Given a project with a tight delivery timeline, get organized and in control of your day.

How do you eat an elephant? One bite at a time. Prioritize and break down your assignments into realistic schedules with tasks of a manageable duration: not exceeding two or three days. Don’t overcommit. Then review your plan and get buy-in from your supervisor. That way when your supervisor asks, “How are you progressing,” you can refer to your approved plan and respond with confidence and detail.

2. Pulled in too many directions: Focus on eliminating distractions, prioritizing, and delegating.

Doing three or four tasks halfway is not as good as finishing two properly. The act of juggling work consumes your most precious resource—time. Stay focused on a task and work it through to completion or to turnover to the next responsible party. This is by far the most efficient use of your time. If your job responsibilities allow, delegate a specific time (or a couple of times) of the day that you answer emails and calls since distractions like responding to emails or phone calls can increase the amount of time that it takes to complete what you were working on. As international speaker Jeff Gothelf from NEO asserts, “The costs of any team member supporting more than one team—context switching, prioritization, additional email churn, etc.—often end up costing much more than the added productivity multiple assignments seems to bring.” 1

Prioritize your activities on a daily basis. Make a daily list of must-do’s, should-do’s and would-like-to-do’s. Then follow this daily plan to guide your activity. Mark off the finished tasks and carry forward the unfinished ones. Do this each and every day and keep these lists for future reference.

3. Allow others to contribute by delegating and working in teams.

I’ve yet to see a “Me, myself and I” company award. Most organizations value teamwork and collaboration over individual contributions. As Petra Cross from Google once said, “…you need to use your soft skills to be able to work well with a variety of people,” and “You need both, good people and good idea.” 2 What is most important to your success is the success of your assignments, so you should always fully use your organization’s resources to complete your assignments.

Ask your supervisor with help prioritizing your assignments. Be organized and prepared to walk through detailed work plans and documentation on how you see tackling the workload. Your goal is to clarify your supervisor’s expectations and to gain a better understanding on how your supervisor envisions your assignments.

4. Focus on positive change that you can make happen.

Keep your attention and focus on the positive change that you can make happen and not on change that is out of your control. It’s worthwhile to offer your opinion on ways your organization can improve. The trick is not to get overly optimistic about your influence in areas where you are not directly responsible. Organizations are complex, and change can be difficult and slow to implement. The best way to make your opinion count is to excel at your job and be a positive influence on those around you.

5. Re-balance personal commitments and work commitments.

Do you have personal commitments conflicting with job responsibilities or vice-versa? If you’ve followed my earlier advice on breaking your assignments down and planning, minimizing distractions, and delegating, work-life balance may be one step closer already. Make peace between work and other aspects of your life since both are essential to your wellbeing. Plan your workdays and workload around beginning and stopping work at designated times. And then stick to your plan. If you have important personal commitments spilling into work time, see if you can use time off or other benefits to get caught up.

Avoid burnout before the situation spirals you out of control. Recognize the warning signs of feeling overwhelmed. Then, take action by getting organized, eliminating distractions, delegating, remaining positive, and‒very importantly‒balancing your life.

Footnote

1 Gothelf, Jeff, “Four Qualities of Successful In-House Innovation Teams: Considering the ‘Two Pizza Team,’” O’Reilly Programming, 2 July 2013, http://programming.oreilly.com/2013/07/four-qualities-of-successful-in-house-innovation-teams.html (accessed 26 Feb. 2014).

2 Atagana, Michelle, “Senior Google Engineer: Building Innovative Products Requires Team Work,” Memeburn, 9 Oct. 2013, http://memeburn.com/2013/10/senior-google-engineer-building-innovative-products-requires-team-work/ (accessed 25 Feb. 2014).