The World of Human Capital

I stumbled across an interesting article that discusses why HR should not be involved in the hiring process.  For the most part, I agree with what was stated, but some organizations have made a conscientious effort to bring in subject matter experts as recruiters to filter through the resumes.

Below is the full article by Lorraine Arams (or you can read the entire article here).

Why Human Resources Should Not Be Involved in Hiring

What a statement! Of course, most would say, HR is the logical department to receive resumes, review them and send the “best” candidate resumes on to the hiring manager for consideration. I say it is not.

First, the reliance on computers to do resume scanning is a poor idea. There is nothing like scanning resumes with the human eye. The human to human connection cannot be duplicated by a computer which is based on data, matching fields and precision.

The applicants may not have the exact phrasing or words to meet the parameters set by the HR department. We all know that there are thousands of words which mean the same thing especially in the English language where the nuances of any particular word or phrase can be at opposite ends of the spectrum.

It is said that you “beat the scan” by looking at the ad and populating your resume with the same words as utilized in the ad.

That’s disrespectful and dishonest. Why? Because it is only regurgitating what people want to hear – just like in university – your paper has a better chance of getting an A+ if the paper reflects and proves the ideas of the professor. Is that thinking? Of course not. Yet, it is said a person goes to university to learn to think.

Same principles apply to resumes. If you only tell people what they want to hear, then you, as a candidate are disrespecting yourself and your achievements. Yes, I realize, a person needs to get their foot in the door and “play the game”, as ridiculous as it is. When reviewing resumes, the person reading them must first understand the job, know the type of person being sought, and get the “feeling” of the person applying by reading their cover letters. HR cannot possibly understand all those factors – they are not the manager.

Second, HR generally has no idea what it takes to do the job, what characteristics would be ideal and what “out of the box” knowledge and experience would enhance the performance on the job. Again, it’s a human factor and, if the manager is involved with the people she/he supervises, the manager would understand those nuances. No amount of training can be a substitute for this human understanding.

Thirdly, there is no accounting for chemistry. What attracts people to other people? No one knows. In the centuries humans have existed, it is still a mystery how that magical force between two people can manifest itself. Often, a manager, by reading the cover letter, will get a message that simply cannot be transmitted in a resume, especially one designed for computer scanning and with which HR simply cannot connect.

If any company truly wants to hire the “best person for the job”, it would get rid of computers for scanning resumes. Computers simply cannot “understand” the nuances nor do proper matching mainly because no human can be that exact.

Next, only the manager should review any and all resumes. I can hear it now – there are a couple of hundred resumes coming in – how can the manager have the time to review them? They can. There have always been a lot of resumes received for job postings – it’s nothing new. The resumes don’t arrive all at once. Many of the resumes submitted and cover letters can be read very quickly. How do I know? Because I’ve done it – always – no one could possibly know or understand what I could while reading these documents.

Lastly, only the manager can pick up on the “chemistry” that matches her/his own. No one can do that for the manager. And since the manager should understand the jobs of the people she/he supervises, then they will also understand the “extra factors” which may enhance performance in the job.

So often I reviewed resumes to find skills and abilities I had not thought to include in the job description or ad but my instinct and understanding told me that, though the person’s experience was not precisely what we were looking for, there were many skills, abilities and experiences which could very well fit. Often, I found, in these situations, very good employees because I chose “outside the box”, outside the parameters first laid out. No one can ever dream up all the different combinations of knowledge, skills and experience which can easily transfer into an opening.

Hiring is an art, it’s not data driven. The sooner we understand that process, the sooner we will return to sane means of hiring, human ways of engaging the “right” people and get managers back “on the floor” of their department, understanding exactly what their people do and what it will take to replace them.

That’s why Human Resources should not be involved in the hiring process. No matter how skilled, experienced or knowledgeable they are in the HR Department, they simply cannot possess a duplicate what is in a manager’s mind and, therefore, understand what a manager will “see” that HR cannot.

My experience has been garnered within many types of industries. My forte as a consulting is in designing and implementing organization appropriate systems and procedures to effect positive changes in efficiency, effectiveness and productivity. Along with my consulting practice, I offer personal coaching and workshops.

National Employment Situation Summary:

The latest jobs numbers are out and non-farm payroll increased 290,000 in April 2010.  This nudged the unemployment rate to 9.9%.    The total number of unemployed increased last month to 15.3 million.

Long term unemployed (>27 weeks) increased 169,000 in April to 6.7 million.  This is about 46% of the total unemployed population.

Read the full press release here – Jobs_April_2010

The March unemployment numbers were revised from 162,000 to 230,000.

Historical Unemployment

Data provided by BLS

Colorado Unemployment:

Preliminary State and Regional numbers are out and Colorado’s unemployment will increase again according to the BLS.  Unemployment for the state will likely increase from 7.7% in February 2010 to 7.9% in March 2010.  The preliminary numbers are also showing that the number of unemployed persons is just shy of 210,000.

This is one of the more frequently asked questions that I get every day as job seekers want to know how long their resume should be.  Unfortunately I usually answer with “it depends”.  I don’t like this answer and neither do most of the people who ask the question.  I believe it depends on how many years experience you have.  As a rough rule of thumb, if you have less than 5 years of experience, you should be able to keep your resume to one page.  If you have over five years, it MIGHT be necessary to go onto the second page.  I use the word “might” as you are not required to have a two page resume if you have over five years of post-undergrad experience.

If you have determined you need to have a second page, make sure you fill the page entirely.  Don’t have a second page with three lines or bullet points on it.  If you needed that second page, then fill the page.  By looking at it from this point of view, you will  realize that you don’t have enough important and relevant information to put on your resume to warrant a second page and you will trim some fat from the resume to clean it up.

Feel free to offer up some questions if you are unsure if your resume should be one or two pages.

Kirk Abraham posted a great article on ERE about working with recruiters and what to do and what not to do.  I think it’s a good read for anyone who has worked with a recruiter or is thinking about it.  I have pasted the full article below for you.

The recent economic climate has made a significant impact on the market; for both companies and employees. Always keep in mind that a good relationship with a solid agency will pay great dividends.

Not sure? When’s the best time to develop a ‘relationship’ with your attorney? Dunno, but I’ll tell you when it’s NOT the best time: 3am, in jail, asking to borrow the yellow pages to make a phone call…

Are you pickin’ up what I’m puttin’ down? Great! Heed some of these basic, yet often overlooked items when working with a Recruiter during your next career transition.

Need to preface by suggesting the best approach is a hybrid, of sorts. Stay passively aware of potential opportunities in the market with a professional ‘talent scout’ so you can evaluate and make your decisions proactively. Not out of fear or necessity.  The best and brightest keep an eye open for opportunities that could potentially be better than their current situation… Read: Proactive vs Reactive

Is this disloyal? Heck no. It’s REALISTIC!

In today’s market uncertainty; Mergers & Acquisitions, buyouts, bankruptcy’s etc, don’t be surprised if you wind up in the same position…  Don’t stick your head in the sand and pretend it isn’t happening…

‘Top 5 Golden Rules’ when working with a Recruiter (as a Job Seeker):

1) Be mindful & respectful of their time.
1a) Recognize they aren’t YOUR agent, their Free of Charge (to you), but their time is usually worth a minimum of $100 an hour. So DON’T call every 2 days to follow up. In fact, if you don’t have a real good reason, don’t bother calling at all.
If you absolutely must do so, email is usually preferred. Think that’s a little bit harsh? It’s not. I’m keeping it real here…

Did You Know that a 200:1 ratio of incoming Candidates to Placements is not unusual at all. This is not a typo. TWO HUNDRED (or more) to ONE.

Moreover, the last thing you need right now is someone commiserating with you on how bad it is out there ~ you need someone to help you land a suitable position. We know it’s difficult, it’s what we do EVERY DAY.

Often recently unemployed candidates fall into several categories by default; make sure that ‘bitter and unhappy’ isn’t one of them. You’re not a victim, so stop acting like it.

2) Do what you say you’re going to do, when you say you will. Trust me, our tolerance for ignorance and/or arrogance is really slim. Capiche? If not, best have a highly plausible explanation.

Particularly important regarding scheduled interviews. Most don’t realize the amount of time, energy, logistical concerns and resources that go into this process.

3) Being anything less than forthcoming with information. This doesn’t mean give up all info blindly… If you are uncomfortable with a request, just ask why that’s important or relevant at this time and listen.

This includes scenarios utilizing ‘cash register’ honesty, ie, where someone gives you change, but doesn’t tell you how they got it. Sneaky at best… Trust, but verify. Not unlike other industries, some have gained reputation for shady ethics. So, you’re right to be cautious. Just don’t sabotage a potential relationship which could be collectively beneficial.

4) Being ambiguous or disingenuous with your capabilities. They’ll find out soon enough.

Finally, and I mean this with all best intentions, PEOPLE GET HIRED FOR WHAT THEY CAN DO BUT FIRED FOR WHO THEY ARE. Just because you’re walk on water for requirements doesn’t mean you’re getting hired –with the amount of investment a company is looking at investing in exchange for our services, your training, relocation, benefits, etc., believe you me, they are listening for our feedback on your soft skills (or lack of).

5) BE NICE! Show a little appreciation for the effort. It’s wise and in your best interest to be courteous and respectful. Especially if you don’t get an interview or land that job.  Guess what? We BOTH get paid the same…ZERO. In fact, if you want to turn empathy into apathy, or worse, just give a little attitude to us on the back end of the process. Instead, ask questions & learn from the process.

That’s one of the Dalai Lama ’Lessons for Life’: ‘When you lose, don’t lose the lesson.” This applies in spades here… Because anyone that has been doing this for more than a few years will tell you, we’re phone cops.

In case you didn’t notice the picture above, decided to go ahead and insert it again for clarification!  :)

Exactly what does this mean? Simple. This means we can hear, see and detect bull$hit from a mile away… So, mean what you say and say what you mean. We’re here to help, but don’t take us for granted.

This isn’t the unemployment office or your human resource department, and we are not government employees. (at least at writing)

Caleb over at Going Concern (a great blog for accountants) was kind enough to reach out to me and get my opinion on what jobs are hot, who is finding jobs, and what the market looks like.  Head on over to read the full article: The Job Outlook Is Good for Accountants…But More Competitive

A new study published by The Goss Institute for Economic Research (“an independent bi-partisan think tank designed to conduct quality business and economic research…”) says that Colorado’s economy continues to grow.

As for those 2nd Quarter job gains – not likely.  It was noted in the report that they don’t expect job gains in the second quarter.  Keep in mind that this is for all industries and all job disciplines.

Check out the full report here.

They say a picture is worth a thousand words.  Just watch the video below and take a look at the graph and I think you will agree that it is quite powerful to see unemployment portrayed this way.

Just a quick update on the accounting and finance job market in the Denver metro area.  We are half way through the first quarter and it has been a good start to the year.  We started to see a slight increase in hiring activity at the end of Q4 2009 and it has continued into the new year.  While unemployment is still near the double digit mark (9.7%), we are seeing a demand for top performers, CPA’s, and individuals with public accounting experience.

Most of these jobs are being found through networking and word of mouth.  We have not found many job seekers or employers having luck with online job boards, but networking has led to job seekers being able to get their foot in the door.  So continue to build your network before it’s too late.

We expect a reasonable amount of hiring activity to continue through the remainder of the first quarter.  We are unsure what the rest of the year will have in store.  We remain skeptical as companies have hired quite a few individuals in such a short period of time and if the economy doesn’t continue to recover, these companies will put put in a difficult situation.  Looking at the public accounting firms, some of the local and mid-tier firms are staffed appropriately, but we are hearing that a couple of the big-4 firms are bidding on new engagements and don’t have enough available employees to staff these new engagements.  We are curious to see if they will look to hire more experienced auditors or try to hire back some of the staff that were laid off during 2009.

The majority of people I speak with ask if they should include a cover letter when applying to a job.  My suggestion, don’t include a cover letter.

There are several reasons I believe that cover letters are a waste of time and are rarely ever read by HR or hiring managers.  Everyone has a busy schedule and never enough time in the day.  When companies are receiving hundreds of resumes a day for job openings, they don’t have time to read everyone’s cover letter.  They want to get to the resume and see what you can bring to the table.  So they get to the meat of the resume and want to see your professional experience, accomplishments, education background, and professional affiliations.  The WSJ published a story a few years discussing how long it takes a professional to review a resume and on average they spent 7 seconds.  That means you need your information to stand out, be easy to read/scan through, and to make an impact.  Once that time was up, they would then make a determination if they wanted to spend more time reading the resume or move onto the next one.

There are a few companies out there that will require a cover letter.  If you are stuck having to write one, please write a cover letter specific to the job you are applying for.  Make sure it isn’t referencing another job you applied for or talking in generalities.  Look at the job description and the bullet points under the job responsibilities and experience requirements.  Then sit down and formulate a plan to write out your cover letter addressing how you are qualified and summarizing why you can do the job.  Don’t specify a quantified salary requirement – say negotiable.

It is okay however, to write a few brief sentences in the body of the email introducing yourself and stating that you have attached your resume.  I am curious how many of you are including cover letters when you apply to a job?  Feel free to comment.

We are in a unique job market that many people have not experienced before.  Over the past two years, employers have been going through layoffs and reducing headcount.  Some of these employees who were let go saw this coming and to others, it was a total surprise.  Currently employers are doing whatever they can to retain their best employees even though they have increased the cost of medical coverage for their employees, or eliminated all bonus, or even reduced salaries.  On the flip side, employees are being recruited now just as much as before and top talent is always in high demand.

Even though many companies might be struggling to grow or business might be down, there is that inherent drive to further one’s career and to be better.  To move up in the corporate ladder and to be challenged.  This has driven employees to consider new opportunities in their career and have an open ear when someone tells them about another possible job.

The difficult part comes when you have to tell your boss that you are leaving for a better opportunity and they lay a guilt trip on you.  And since your boss can’t afford to lose anyone else on the team, they will say and do whatever it takes to get you to stay, including a counteroffer.  They will promise you more money, a promotion, and/or more challenging work.  What should you do now?  Say “NO”.

By accepting a counteroffer, you are only putting a band-aid on a bigger problem.  Now your employer knows that you aren’t happy, they know you aren’t loyal, and they know it is only a matter of time before you will leave.  You should ask yourself, what did it have to come to this in order for my employer to finally give me a promotion or a raise.  If you Ggoogle “Should I accept a counter offer” you will find a plethora of websites instructing you not to EVER accept a counteroffer.

Below I have copied an article from Paul Hawkinson that was originally published in the Fordyce Letter:

Counteroffer Acceptance Road to Career Ruin A raise won’t permanently cushion thorns in the nest

Matthew Henry, the 17^lh-Century Writer said, “Many a dangerous temptation comes to us in fine gay colours that are but skin deep.” The same can be said for counteroffers* those magnetic enticements designed to lure you back into the nest after you’ve decided it’s time to fly away.

The litany of horror stories I have come across in my years as an executive recruiter, consultant and publisher, provides a litmus test that clearly indicates counteroffers should never be accepted…EVER!

I define a counteroffer simply as an inducement from your current employer to get you to stay after you’ve announced your intention to take another job. We’re not talking about those instances when you receive an offer but don’t tell your boss. Nor are we discussing offers that you never intended to take, yet tell your employer about anyway as a “they-want-me-but-I’m-staying-with-you” ploy.

These are merely astute positioning tactics you may choose to use to reinforce your worth by letting your boss know you have other options. Mention of a true counteroffer, however, carries an actual threat to quit,

Interviews with employers who make counteroffers, and employees who accept them, have shown that  as tempting as they may be, acceptance may cause career suicide. During the past 20 years, I have seen only isolated incidents in which an accepted counteroffer has benefited the employee.

Consider the problem in its proper perspective.

What really goes through a boss’s mind when someone quits?

• “This couldn’t be happening at a worse time.”

• “This is one of my best people, If I let him quit now, it’ll wreak havoc on the morale of the department,”

• “I’ve already got one opening in my department. I don’t need another right now.”

• “This will probably screw up the entire vacation schedule.”

• “I’m working as hard as I can, and I don’t need to do his work, too.”

• “If I lose another good employee, the company might decide to ‘lose’ me too.”

• “My review is coming up and this will make me look bad.”

• “Maybe I can keep him on until I find a suitable replacement.”

What will the boss say to keep you in the nest? Some of these comments are common.

• “I’m really shocked, I thought you were as happy with us as we are with you. Let’s discuss it before you make your final decision.”

• “Aw gee, I’ve been meaning to tell you about the great plans we have for you, but it’s been confidential until now.”

• ‘The VP has you in mind for some exciting and expanding responsibilities.”

• ” Your raise was scheduled to go into effect next quarter, but we’ll make it effective immediately.”

• “You’re going to work for who?”

Let’s face it. When someone quits, it’s a direct reflection on the boss. Unless you’re really incompetent or a destructive thorn in his side, the boss might look bad by “allowing” you to go. His gut reaction is to do what has to be done to keep you from leaving until he’s ready. That’s human nature. Unfortunately, it’s also human nature to want to stay unless your work life is abject misery. Career changes, like all ventures into the unknown, are tough. That’s why bosses know they can usually keep you around by pressing the right buttons.

Before you succumb to a tempting counteroffer, consider these universal topics;

• Any situation in which an employee is forced to get an outside offer before the present employer will suggest a raise, promotion, or better working conditions, is suspect.

•    No matter what the company says when making its counteroffer, you will always be considered a fidelity risk. Having once demonstrated your lack of loyalty (for whatever reason), you will lose your status as a “team player” and your place in the inner circle.

•   Counteroffers are usually nothing more than sales devises to give your employer time to replace you.

•   Your reasons for wanting to leave still exist. Conditions may just seem a bit more tolerable in the short term because of the raise, promotion or promises made to keep you.

•   Counteroffers are only made in response to a threat to quit. Will you have to solicit an edict and threaten to quit every time you deserve better working conditions?

•   Correct and well-managed companies don’t make counteroffers…EVER! Their policies are fair and equitable. They will not be subjected to “counteroffer exercises” or what they perceive as blackmail.

If the urge to accept a counter offer hits you, keep on cleaning out your desk as you count your blessings.