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Terms Of The Recession

Here is one from the weekly Herman Trend Alert of which I was not familiar:

“corporate cocooning” – staying put out of fear

A rather appropriate construction for today’s economy, wouldn’t you say?  Here is the paragraph from which it is used:

Due to “corporate cocooning” (staying put out of fear), the “unprecedented churning” of the labor market we have forecast in the past has not yet happened. Now, we again see a high level of expectation of job hopping. Wise employers will heed this warning and take steps now to engage their valued employees and avoid this unwanted turnover.

How To Lose Your Job

Chances are if urination is involved, you will lose your job.  From SalesHQ.com’s article 15 Stupidest Ways to Lose Your Job:

When April 15 rolls around, urinating on the IRS might be on top of your to do list. But be careful—like audits, the IRS does not take peeing lying down. As first reported by The Smoking Gun, an IRS employee relieved himself in the freight elevator “on numerous occasions.” After the signature scent was noticed, a federal agent installed a surveillance camera and caught the urinator in the act.

Did the culprit have a bladder problem? No, he said he “did this because he felt he could get away with it.” If you think you can get away with something, make sure you actually can. The contract employee not only lost his job but got slapped with a $4,600 cleaning bill and a felony charge for damaging government property that carries a maximum ten year sentence.

I wish I would have known of this one around April 15.

For Gen Y, Jobs Are Secondary

I’m beginning to think Gen Y is the most overanalyzed generation in…a generation.  BusinessWeek.com offers up this article – Why Certain Cities Attract Gen Ys.  The big city has a general appeal to the Millennials which is probably true for most young generations.  However, Gen Y does face a difficult career path due to tenure.  Here is a surprising graph (emphasis mine):

The appeal of big cities stems from a simple economic fact: They offer thicker labor markets with more robust job opportunities across a wide number of fields. Getting ahead in your career today means more than picking the right first job. Corporate commitment has dwindled, tenure has grown far shorter, and people switch jobs with much greater frequency. The average American changes jobs once every three years; those under the age of 30 change jobs once a year.

I’m not sure where those numbers originated, but they are noteworthy.  The days of starting a long-term career with a major corporation are fleeting. 

Jobs are clearly important. Gen Y members ranked the availability of jobs second when asked what would keep them in their current location and fourth in terms of their overall satisfaction with their community. In both cases, the highest-ranked factor was the ability to meet people and make friends. Makes perfect sense, since Gen Y intuitively understands what economic sociologists have documented: Vibrant social networks are key to landing jobs, moving forward in your career, and one’s broader personal happiness.

Second?  Surprising, maybe, but clearly networking is supreme for this generation.  I wonder if the tools at are available today are part of the drive to network.  I am astounded by the fact that Gen Y provides updates as to what they are doing at that moment (think Facebook or Twitter).  I have tried to accomplish this feat and always come up lacking…I just can’t bring myself to do it.

Yet these young people are forging networks that a sure to become immense as they mature.  The implications for selling are staggering – networks will become the top resource for prospecting.  Decision-making within companies will be information that can be attained through one’s network.  Heck, the decision-maker may be 1 step away within a network.

This sea change is happening in front of our eyes, but I’m not certain everyone is observing it.

Get The Culture Right…

everything else falls into place.
-Tony Hsieh, CEO of Zappos.com

Now that is an interesting position, isn’t it?  The article is from Human Resource Executive online and features a brief look at Mr. Hsieh’s “unorthodox” HR strategy.

“We do two [job] interviews — the first for skills and the second for cultural fit,” he said, adding that the company has opted to not hire many talented candidates and has fired employees because they didn’t fit the culture or weren’t passionate enough about customer service.

Fifty percent of the company’s performance review focuses on culture fit, he said.

To ensure employees are committed to Zappos’ core values, it offers new hires $2,000 to leave the company.

Now that is commitment to the culture.

Companies Get It Wrong Too

I was recollecting about a job I took in which I felt I did everything right.  It is doubtful I did, but it is my recollection so bear with me.  I qualified the opportunity, the sale, the expectations and the ramp time.  All of the responses were a good fit to my abilities.

The ramp time was 6 mos. before getting to a steady revenue stream according to the hiring manager.  I knew I could beat that and I did by cutting it in half.  I had closed a handful of fairly sizeable deals within 3 mos. and was chasing a handful of large deals.

And then I was laid off less than 6 mos. into my employment.  There were other factors involved including the company losing some large customers, but I never even got through the ramp-up time.

The company got it wrong – they should have never hired me.

I’ve seen companies hire salespeople simply because they were from their industry, not because the salesperson was a good fit.  I’ve seen companies hire salespeople for one position and then try to force them into a different position once they start.  I’ve seen companies hire hunters and give them farmer tools.

The key is to prepare for your next sales hire.  I tell companies not to hire a hunter unless you are prepared for one to join your team (read: most companies are not ready).  The little things should be handled before the salesperson arrives (business cards, laptop, email, CRM, etc.).  The big things like product training, key accounts, support people, etc. should be the initial focus.  Finally, call reports, travel, presentations, etc. should be the last piece of the ramp-up piece.

Unfortunately, companies often fail at setting these targets up.  It is usually at this point that the compass starts spinning and the salesperson is in trouble.

Clandestine Conversation

I have noticed this of late – salespeople are having more discussions on their cell phone while in the office.  Maybe they go into a conference room, a hallway, lunch room, etc.  Is there a greater clue that they may be looking for  a new opportunity?  Granted, these calls may be nothing more than a personal call and not an employment opportunity.  However, I always become suspicious when I see that behavior inside an office.  Just an observation.

The Straight-Up Truth

These are skittish times, aren’t they?  I have seen this among reps and myself – every little item is scrutinized.  Communication, email, reports…I find myself looking for subtle clues in all of them.  Is a layoff coming?  How bad is it?  What is going to happen next?

These are not productive thoughts.  As a manager, how do you quell these fears?  There isn’t one move, tool or approach that will cure it, but a concerted effort will help to minimize your team’s anxiety.

Selling Power offers up an article that has some feel-good points that I question.  However, there is something in the article that caught my eye:

Don’t make promises you can’t keep. Your mother probably told you this growing up and it’s just as important today. Manning says she often sees managers make the mistake of promising a desired outcome rather than acknowledging uncertainty. For instance, don’t tell your staff there won’t be any layoffs at your company because you can’t possibly make that guarantee. “Make no promises,” says Manning. “Don’t build up false expectations because that just creates more fear.” Instead, be honest about what you know, even when – especially when – the news isn’t good. Your reps would rather have the hard truth than a pleasant lie.

Those last two lines are straight-up truth.  The best way to allay these fears is to be forthright with your team.  I believe managers often error in thinking their employees cannot handle the truth of the present situation.  This is a leadership mistake that creates distance between the manager and the employee.

I will close with the next suggestion from the article – it is a good one:

Start a blog. Blogging is a great way to keep your people updated because it has an informal, conversational feel and reps can check it at their convenience. Manning says she knows of several CEOs who are having “tremendous success” with blogging right now, using it as a vehicle to keep employees posted on what’s going on, answering their questions and correcting rumors. Sales managers, she says, could expand those topics to include sales successes, news about products and so on.

Impending Movement

In sales there has always been career movement.  Most successful salespeople have a “hunting” ability for closing deals.  They also use this ability to close new deals for themselves in terms of a new job.

I believe this approach is intensified in the younger generations – Gen X and Gen Y.  This current economy is going to erode much of their loyalty as they watch companies shed employees.  This downturn is far worse than that of 2001, but it is two career-altering downturns in less than 10 years.  That has to have an effect on younger workers.

Some of this movement can be seen in this article from Managesmarter.com:

Even though it is a lower number than in years past, 16 percent of sales employers plan to increase the number of full-time employees on their payrolls in 2009, indicating that there will be movement in the industry this year.

That movement will be happening despite the market conditions. One-in-five sales workers said they will actively look for a new job in 2009, citing better pay and more career advancement opportunities as their primary motivators for hitting the pavement. In addition, 81 percent of sales workers said that they are passive job seekers, those that are not actively seeking a new opportunity, but would be open to one if they came across the right opportunity.

I always laugh at “passive job seekers.”  Who wouldn’t be open to the right opportunity?

Back on topic – I think we are heading for a tremendous jump in jobseekers once this economy recovers (in spite of what the media says, the economy will recover).  Retention is going to be far and away the top topic for all companies as they face the prospect of losing their top salespeople.

2009 Prediction Time-Talent Management

The Herman Trend Alert offers up some expected predictions, some insightful ones and some surprising ones for 2009.  Here is one that falls in the expected/not surprising category:

1. Certain Skill Sets Continue to be in Short Supply.

In spite of the global economic slowdown and massive layoffs, certain skill sets are in short supply. All but the most short-sighted employers will continue to respect talented workers in all fields for their contributions.

I don’t think that is surprising at all, but not all companies subscribe to that approach.

Here is an insightful prediction:

3. Fear and Apprehension Reduce Productivity.

As we have written about some months ago, there is a significant percentage of employees who are worried about the future. Unless addressed, this fear will reduce productivity and employee morale. Wise employers will show their appreciation for their workers and reignite passion and excitement with activities and contests that challenge employees to achieve high performance levels.

Absolutely true.  I have seen this bunker mentality developing over the past few months and it definitely impacts productivity in a negative way.  The consistent “depression” drumbeat of the hyperbolic mainstream media doesn’t help.

And here’s one that will make recent Gen Y grads groan:

10. Older Workers will be Particularly Valued this Year.

To get the work done without resorting to hiring expensive contract help, some employers will begin mining the rolls of their retired workers and hiring them back on a part time basis. These seasoned professionals have a lot to offer their former employers. The companies will probably need to conduct less training and most certainly will have a more reliable workforce than recruiting Millennials.

What do you think of that last line?  I would say that is a bit of a shot, and not a fair one at that.  I understand the approach of rehiring retired workers and it that is a valid approach.  However, I have seen companies that are set in their ways – the energy, vitality has almost disappeared from their company.  The culture has settled into this lethargic, phlegmatic style…and it is dangerous in a slow economy.

My experience has been that young workers help change this culture.  They bring energy, ideas and, well, a fresh approach.  I’ve seen younger workers invigorate a stale company.  Yes, you have to train young employees, but I think this prediction greatly discounts the upside of hiring Millennials in this economy.

Keep The Perks

The Herman Trend Alert has a surprising report on a survey looking at employee perks for 2008.  The economy may be tanking, but employers are aware of the need to retain talent.

In spite of the drastic effects of the economy on the labor market with announced workforce reductions up 30 percent, a surprising majority of companies (66.7 percent) have chosen to preserve their employee perks. Ten percent of those employers said they had considered trimming perks, but decided to leave them at current levels.

Despite their need to reduce their expenses, almost 55 percent still plan to distribute year-end bonus checks this year (2008). Only 20 percent of the companies surveyed said they had cut or eliminated perks to contain costs. At the same time, 35 percent reported they had to cut these extras to save jobs.

The destabilized economy has led to major reductions in force. According to Challenger’s estimates, through September 2008, employers have announced plans to cut a total of over 750,000 jobs. Yet in spite of the softer economy, another survey conducted by a business research firm in Arlington, Virginia and ADP, the payroll provider, found that 34 percent of their respondents reported “recruitment and retention” as their top priority.

Looking at the findings from both of these studies, we can infer that a large percentage of employers understand the value talented workers provide to the organization. They know that if they do not take care of their employees during this difficult time, when the economy improves, those employees might leave.

Wise employers will hunker down and engage their associates to help them streamline processes, market smarter, and cut expenses. They will continue to resist reducing bonuses and perks, because they know the future dangers and choose to think long-term.

Remember Clark Griswold in Christmas Vacation receiving his Christmas bonus of a one-year membership in the jelly-of-the-month club?  I guess that would not be a good option in this instance.

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