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Current Topics
ETHICS FOR HR
The business world has certainly received a black eye as a result of the scandals involving executives from Enron and other organizations in the last decade. This current period of self-examination by business leaders resulting from the negative publicity should certainly include HR professionals. Many individuals, and organizations, have developed a framework to enable the manager to decide whether circumstances and actions are ethical or not.
HR professionals should consider the following continuum when faced with an ethical decision.
 Are there any laws, regulations, etc. that may be violated?
 Does your organization have an ethics policy or statement of appropriate behavior that may be violated?
 Does your profession have any standards of behavior that may be violated? In our case, the Society for Human Resource Management (SHRM) has a well-developed ethics policy that can help.
 Do your own standards of behavior relate to the upcoming decision?
Following a thought process like this one is very useful for the HR professional. This is also a good process to include in your organization's policy manual. And, if your organization has international operations, there is an even greater need for a policy like this.
WHY ON EARTH WOULD YOU HIRE A RECRUITER ON CONTINGENCY?
Executive search is an expensive process. Companies can pay up to 33% of the hired candidate's first year compensation. Yet, they frequently give more scrutiny to the purchase of a new personal computer than the choice of a recruiter, an expenditure that can rise to six figures. And, hiring managers sometimes see no difference in the two very different types of recruiters, those who work on contingency, and those who are retained.
Contingency recruiters collect a fee only if the client hires one of their referrals. And, they often take on assignments without preparing an agreement or contract between themselves and the “client”. On the other hand, retained searchers are hired by the client on an exclusive basis, and are paid for their services as any other consultant who adds value to the client. The retained searchers and their clients are very clear up front about the terms of the contract, who is responsible for what, and embark upon a cooperative venture to attract and hire a top-quality candidate.
Hiring managers often turn to contingency searchers for a number of reasons:
 They believe the contingency recruiter's pitch that he/she is swamped with numerous candidates who are "just right" for the job at hand, and that the position can be filled almost immediately.
 They are attracted to the proposition that if they don't hire one of the recruiter's candidates they won't have to pay that recruiter.
 They like the idea of putting the word out to a number of recruiters, thus leveraging their efforts to find the right candidate.
But look at the process from the contingency recruiter's point of view. He or she is like the salesperson who is paid solely on commission. If they don't place a candidate, they don't get paid. If they are competing with other firms to place a candidate, speed in presenting candidates is essential.
Thus, a contingency recruiter will send you several resumes shortly after the project begins, with many of the candidates not even remotely qualified. After the initial batch of resumes, you will get very few additional candidates. Here is why. The contingency recruiter, knowing that others are competing with him, will quickly scour his files and throw every remotely-qualified applicant's resume at you, hoping one of the resumes will catch your fancy.
If he is unsuccessful in persuading you to hire one of these candidates, he has to evaluate the potential return of his further investment in time. And the analysis will usually dictate that he move on to another potential client, rather than investing a significant amount of time searching for more candidates for you when he might not be paid for that effort.
On the other hand, retained recruiters are valued business partners who will be able to devote the necessary amount of time and attention to getting it right. You and they have a vested interest in ensuring that the right person is hired for the job. Because of this approach, a retained search takes a significant amount of time. There is no getting around the fact that a thorough search will require many hours of effort.
There is clearly a difference in the quality of hires from contingency and retained search firms. I validated these differences when I was the Chief Human Resources Officer for an international organization with thousands of employees around the world. We conducted an exhaustive study comparing the performance ratings and length of stay of terminating employees who were hired through contingent and retained searchers. The results were eye-opening. The performance ratings and length of stay of those from retained searchers were head and shoulders above those from contingency searchers. Other studies have resulted in similar conclusions.
In summary, think of your executive search consultant as a valued business partner who, like any other consultant, works in tandem with you to deliver a superior product. If your internal resources can't complete a successful search for you, take the time to identify and work with one of the talented retained executive recruiters available to you.
CAN'T I TELL SOMEONE “YOU LOOK NICE TODAY” ANYMORE?
Today's workplace is very confusing to some employees. Many older people who have lived through huge changes in their jobs and their worksites over the past few decades are truly lost when it comes to appropriate interaction between men and women. And, many older men are afraid to open their mouths lest they insert their feet in them and bring on discrimination complaints as a result.
I conduct numerous workshops for clients during the course of a year. I used to be surprised, but I am now used to questions I get when people learn I am a human resources expert and advise employers on issues surrounding harassment, appropriate behavior, etc. Men over age 50 who were taught to be respectful to women fear that their attempts at complimenting them will be seen as harassment.
This concern can be summarized by the men who take me aside and say, “Hey, Alan, I'm afraid to compliment my co-worker on her appearance, new clothing, jewelry, etc. I mean no harm, and she has known me for a number of years, but I've heard too many stories about men being charged with inappropriate behavior. Can't I even tell her `You look nice today' anymore?”
The answer, of course, is, “it depends”. If you are the office Lothario, and women scurry away when you walk by, it might not be a good idea to say to one of them, “Hey, Babe, you sure look hot today!” If, on the other hand, you have a solid reputation and are well thought of, a sincere compliment is allowed, and is often welcome.
“Know your audience” is advice given to speakers and actors, and it applies to fellow employees as well. Know yourself, too. You should have a pretty good idea as to how you are perceived. Finally, if you are sincere, that usually comes across fairly easily. So, if your reputation and sincerity are sound, go ahead and compliment that co-worker today.
CASUAL DRESS AND SLOPPY PERFORMANCE - IS THERE A LINK?
By now you are probably hearing or reading about a growing number of employers who are retreating from allowing casual dress. If not, you will be soon. This is an emerging development, reversing an opposite trend developed over several years of increasingly-casual work attire.
As we all know, “casual Fridays” caught on in the late 80's and early 90's. Employees enjoyed not having to wear that tie or skirt one day a week. Eventually, some companies loosened the standards even further. And, as the economy grew wildly in the mid 90's, many employers, particularly in the high tech arena, grasped at any practice that would give them an edge in hiring and retaining employees. Thus, “business attire” was dropped altogether in some industries, and greatly modified in others.
But that was then, this is now. With the new realities in the job market, and hiring managers in greater control, many are acting on those qualms they had, but put up with, about casual dress. Research is emerging that demonstrates that as the formality of office attire declines, there is a corresponding decline in employee productivity. Thus, we read of investment banking firms now requiring coats and ties on all work days, and call centers paying more attention to compliance with dress standards than they used to.
HR pros who want to stay ahead of the curve should look at their organizations and be prepared to take a position. This trend is like many others. Senior managers will read about or hear of other organizations changing their policies and want to do the same in their companies. So, be ready to react to this, or, even better, do your own research and make the appropriate recommendations on this issue.
Jaramillo & Associates
Alan M. Jaramillo, SPHR, President
9465 Southern Hills Circle, Littleton, CO 80124
Tel (303) 790-1460 Fax (303) 790-6008
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