A half-year of job losses
As the unemployment rate holds at 5.5%, the outlook isn't especially bright.
By Chris Isidore, CNNMoney.com senior writer
Last Updated: July 3, 2008: 10:30 AM EDT
NEW YORK (CNNMoney.com) -- Employers trimmed jobs from their payrolls in June for the sixth straight month, as the government's closely watched report Thursday showed continued weakness in the labor market.
The Labor Department reported a net loss of 62,000 jobs in the month. That matched the job loss figure for May, which was revised higher from 49,000. Economists surveyed by Briefing.com had forecast a loss of 60,000 jobs.
The June number brought to 438,000 the number of jobs lost by the U.S. economy so far this year.
The unemployment rate stayed at 5.5%. Economists had forecast the rate would come in at 5.4% in the latest reading.
In a separate report, the department said initial claims for unemployment insurance rose 16,000 to 404,000 in the latest week. Economist Robert Brusca of FAO Economics said the reading over 400,000 is a "classic recession signal."
And the even more closely watched four-week moving average for initial claims neared that worrisome 400,000 benchmark, reaching 390,500 - the highest level since the four weeks after 2005's Hurricane Katrina.
The four-week average hasn't been at or above the 400,000 mark since 2003.
The job losses in the monthly report were concentrated in manufacturing and construction, two sectors that have been badly battered in the current economic downturn.
Manufacturing lost 33,000 jobs, even as the troubled auto and auto parts makers posted a modest gain. Construction lost 43,000, with about half of that coming from contractors and subcontractors in the home building segment of the market.
But the job losses were not limited to those areas. Retailers trimmed 7,500 jobs, while business and professional services cutting 51,000 jobs.
Mitigating the decline were government employers, who added 29,000 jobs, education and health services, which also added 29,000, and leisure and hospitality, which saw a 24,000-job increase.
Still the report showed a worrisome spreading of economic weakness, according to Lakshman Achuthan, managing director of the Economic Cycle Research Institute. He said this report is further proof that the nation has fallen into a recession.
"This is pretty much as expected, but expected isn't good news these days," he said. "What it boils down to is a drip, drip, drip of ominous information."
The seasonally adjusted average hourly wage edged up 6 cents to $18.01, which was in line with forecasts, while the average hourly work week stayed unchanged.
Wages are not keeping pace with inflation, as the average wage is now up 3.4% over the last 12 months, less than the 4.5% rise in prices over the 12 months ended in May as reported by the government.
Obama, McCain react
The presidential campaigns of John McCain and Barack Obama both issued statements saying that the current problems in the labor market justified immediate action from Congress, with each arguing he had the right solution for the economy.
"The American people cannot afford an economic agenda that will take our country in the wrong direction and cost jobs," said the statement from McCain, the presumptive Republican candidate. "At a time when our small businesses need support from Washington, we cannot raise taxes, increase regulation and isolate ourselves from foreign markets."
But Obama said McCain was endorsing economic policies of the Bush administration that had led to the current problems.
"The American people are paying the price for the failed economic policies of the past eight years, and we can't afford four more years of more of the same," said his statement.
Neither candidate gave much in the way of specifics about the immediate action they are proposing.
McCain called for immediate tax relief for families, a plan to help those facing foreclosure, lower health care costs, investment in innovation, a move toward energy independence and opening more foreign markets to U.S. exports.
Obama proposed immediate relief with energy rebates for working families this summer, a fund to help families avoid foreclosure, extended benefits for the long-term jobless, and assistance to states that have been hard-hit by the economic downturn.
First Published: July 3, 2008: 8:38 AM EDT
Thursday, July 3, 2008
Tuesday, July 1, 2008
Pressure at the Pump
The sticker shock at gas prices is enough to have me consider purchasing a Prius or a KIA. Well, maybe not but we all can agree that these inflated gas prices need to stop. For me, I drive 35 miles one way so my commute is a little taxing, despite the satellite radio. So every four to five days I visit my local Texaco and drop $70 into the tank of my Toyota 4-Runner. Now don't get me wrong, when I purchased the truck a year and a half ago, I fully realized that gas would be a significant expense. But that was at $2.60 a gallon...not $4 and an arm and a leg.
With gas prices climbing daily, the daily commute can be an added pressure to many Americans. However, some companies are stepping in to help alleviate that strain on their staff. Dr. John Sullivan recently wrote a great article highlighting this new trend. I would like to thank Dr. Sullivan and ERE.net for today's article and I hope you find it as valuable as I did.
And by the way....Have a great 4th of July holiday!
Jun 30, 2008, 6:00 am ET
Corporations around the world are missing an opportunity both to help their employees during their economic struggles and to build their employment brand image as an employer that cares.
The foundation of this opportunity is the current surge in gas prices and other economic factors that are heavily impacting almost every corporation’s workforce.
It’s almost impossible to pick up a newspaper or magazine and not read about the economic conditions that are putting a strain on almost everyone’s budget and way of life.
Rather than ignoring it or hoping it will go away, look upon it as a chance to “turn lemons into lemonade” and to further strengthen your employment brand image.
It has been common for corporations to offer benefits to their employees to ease their commutes or to help save the environment. However, the recent dramatic rise in gas prices provides corporations with an opportunity to really amp up their offerings, and to demonstrate to those they wish to attract and retain that the organization “cares” about them.
In fact, one study by Dr. Wayne Hochwarter, of Florida State University, found that high gas prices led to more stress on the job, thus impacting employee performance. In his research, Dr. Hochwarter found that one-third of the employees surveyed said they would quit their job for a comparable one closer to home.
Research by outplacement consulting firm Challenger, Gray & Christmas found that 34% of employers had potential candidates who turned down jobs because of long commutes and added nearly 8% of employers report turnover caused by high transportation costs.
Acting now provides an opportunity to build your employment brand because the combined topics of gas prices, food prices, and the mortgage crisis are hot in the media. As a result, any bold action by a corporation is likely not just to be viewed positively by employees and potential applicants but also by those covering consumer confidence and spending in the media.
Efforts by employers to help workers cope with these economic factors will likely be written up in the press and in business publications. Not only would you be helping your workers, but you will also be building employee loyalty while getting free PR to further strengthen your employment brand image. It’s an opportunity that won’t last long, so it shouldn’t be missed.
Many firms have already been recognized for excellence in these areas, including Google, Intel, Oracle, Microsoft, Cisco, Nike, and HP. There are many actions to consider, and I’ve separated the various options into broad categories below.
Promoting Drive-Less Options
The first group of options is relatively cheap, but they can have a significant impact on the amount of money your employees need to pay in commute costs. 12 “drive-less” options include:
Compressed workweek options. Offer schedules that allow commuters to reduce the number of days they come in to work. A 4-day, 10-hour workweek is the most popular, but some professions also use 3-day, 12-hour weeks. The key is to not just offer these programs, but to encourage individual managers to allow their employees to actually take advantage of them. If coverage is an issue, consider allowing employees to alternate on/off alternative schedules.
Work at home. A related option is to allow employees to choose on their own to work one or more days at home. In addition to saving commute costs, firms like Best Buy have found that telecommuting can generate up to a 35% increase in employee productivity, and research by the Gartner Group found up to a 40% improvement. Allowing employees to take periodic “planning” or innovation days where they spend their time thinking and planning for the future can also be an effective option. Benchmark firms in this area include Best Buy, Sun, IBM, Agilent, and HP.
Satellite offices. By establishing satellite offices closer to where employees live, firms can offer opportunities for employees to use restricted computer and communications networks that cannot be accessed remotely while reducing the mileage employees drive to and from work. Employees that need to use company equipment (but do not necessarily need to meet with coworkers) can decide on which days they will work from these remote corporate locations. Microsoft’s touchdown space is an excellent example of this practice; however, Sun is the benchmark firm in this area, locating offices on all major access routes into major metropolitan areas.
Bike/walk to work. This can both improve health (reducing benefit costs) and help employees save on gas. Companies can facilitate this practice by offering maps that highlight the flattest and quickest routes. They can also help by providing relaxed dress codes that allow employees to wear athletic clothes, as well as providing bike storage space and showers for their peddling employees. Walk to work or walk to mass transit location programs can have similar positive impacts.
Make all-day meetings remote. Rather than requiring everyone to commute to all-day meetings, use conference calls and Web-based tools to allow some workers to attend meetings from home. These options can also save airline travel costs. HP and Cisco are the benchmark leaders in this area.
On-site services. Dry cleaning, concierge, flowers, and take-out food can reduce the need for employees to run errands during lunch and after work. Also, consider vendor-provided gas-saving services like engine tune-ups and tire inflation. Google is a leader in this area.
Offer online training. This can save on travel costs. Also, consider offering university classes on-site, so that your employees can improve themselves without the increased costs associated with driving to a local university.
Reduce lunchtime and snack travel. For firms with few on-site lunch options, consider inviting lunch wagons that can sit in the parking lot. Other options include providing box lunches and snacks on site, as well as menus from local restaurants that deliver, shifting the cost of ordering out to the food provider.
Increase company car usage. Firms can help their employees reduce their personal gas costs by liberalizing or expanding the number of opportunities for employees to use company cars.
Job transfers. In organizations with many outlets (like retail), reduce employee gas usage by offering a one-time option to facilitate transfers to locations closer to the employee’s home. Consider offering internal “save on gas” job fairs where workers can meet with managers from other locations to see if relocation is a viable option that provides mutual benefits.
Shift the organization’s start time. In congested areas, starting your commute an hour earlier or later can result in significant gas savings as a result of fewer backups and less congestion.
Live close to work facilitation. Firms can offer services or work with local Realtors in order to make it easy for their employees to find apartments and housing close to the workplace. The leading firm in this area is Facebook, which offers an astonishing $700 per month salary supplement for employees who live within a mile of their headquarters. University Hospitals in Cleveland is also a benchmark organization.
Share the Commute
Coordinate shared commuting. Firms can help their employees to both save on gas and tolls by facilitating employee carpools, van pools, or a company shuttle. In many large cities, tax breaks encourage corporate van-pooling programs. An additional benefit is the reduced need for employee parking. Microsoft, Yahoo, and HP are benchmark firms. Also, offer a company-sponsored shuttle bus from transit stations close to work or from strategic locations.
Coordinate schedules. More individuals would share rides if they could share similar schedules with individuals who live close to them. This option requires you to work with individual managers to ensure that they make commuting part of their scheduling decision criteria.
Facilitate Opportunities for Cheaper Gas
Negotiate group discounts. Because corporations with many employees have significant buying power, work with local fuel suppliers and individual gas stations to negotiate volume discounts for employees who use targeted stations. Incidentally, try similar options for bulk food items to help employees deal with the rising cost of food.
Buy “company” gas. Some organizations have their own fueling facilities and these firms might be able to find a way to offer that gas to employees. By buying “gas futures,” firms can successfully hedge against future price increases (i.e., Southwest Airlines has successfully done this for its aviation fuel).
Allow employees access to “fleet” stations. Some firms utilize gas stations that provide gasoline for fleet cars. Negotiate with their vendors to identify opportunities where employees can get gas at these low-priced fleet stations.
Negotiate “buy” options. Use the company’s volume buying power to help negotiate lower-cost deals with vendors that allow your employees to lease or buy more gas-efficient vehicles. Vehicles might include scooters, electric segues, bikes, and compact or hybrid cars. (Note: there federal and in some cases state tax advantages associated with purchasing hybrid cars.)
Subsidize mass transit. Offer subsidies to individuals who use mass transit. Some government agencies provide tax advantages to firms that facilitate the use of mass transit (others provide penalties to those that don’t).
Increase Manager and Employee Participation
Corporations can take specific steps to encourage both individual managers and employees to participate in gas-saving options:
Measure and reward managers. Recognize those who are “commute cost” friendly; conduct an employee survey to identify the best.
Executive participation. Have the CEO and senior executives actively participate in company programs (i.e., participating in car pools, biking to work, or occasionally driving the company shuttle).
Gas incentives. Provide gas cards as incentives and rewards for top-performing employees and managers.
Miscellaneous Options
Conduct a survey and ask employees what they think you should be doing.
Benchmark other firms to see what else is possible.
Allow compacts, hybrids, and scooters to park closer to the building to send a message that you care about the environment.
Help them sell their gas-guzzler car or subsidize the purchase of fuel-efficient vehicles.
Add saving gas as a criterion for selecting new facility sites.
Consider reducing nepotism restrictions so that family members can work together and thus, commute together.
Provide Employees with Opportunities to Earn More Money
Because rising costs are essentially lowering your employees’ “real” standard of living, provide your employees with more opportunities to earn more money during these tough economic times:
Opportunity for overtime. Encourage managers to develop more opportunities for employees to work overtime to help them offset the rising cost of living.
Pay for performance. Offer increased opportunities for performance-based pay. Although giving employees “more money” is always a high-cost item, if any additional pay is based strictly on improved performance, both firms and employees can come out ahead.
Increase mileage allowance. The IRS has recently recognized a higher cost of gasoline by increasing the amount of reimbursement that it allows per mile traveled. Companies can help their employees by not waiting and increasing their mileage allotment immediately.
COLA. A final option to consider is offering your employees periodic cost-of-living adjustments. Sometimes this is necessary in order to decrease your employees’ need to look for a second job (or even a job at another firm) in order to meet their family needs.
Final Thoughts
As you can see, there are many options available to corporations. For the best impact, implement a comprehensive program with many elements. Not only will this approach have a larger impact on employees, but it also increases the odds of your effort receiving positive exposure.
Friday, June 6, 2008
Unemployment Rate Rises Again
As Friday draws to a close, I saw the below article pop on CNN.com and could not help myself but post it for your review. Unemployment rose to 5.5% in May, the biggest one month jump since February of 1986. I hope this doesn't put a damper on your weekend, but we should all remain aware of the current economic market and the strains it is having on society.
NEW YORK (CNNMoney.com) -- A spike in the unemployment rate - the biggest in more than two decades - raised new concerns Friday that a weak labor outlook, high oil prices and continuing woes in the housing and credit markets are leading the U.S. economy into a painful recession.
The government said Friday that the unemployment rate soared to 5.5% in May from 5% in April - much higher than economists had forecast.
The surge marked the biggest one-month jump in unemployment since February 1986, and the 5.5% rate is the highest level seen since October 2004. Unemployment is now a full percentage point higher than it was a year ago.
"You're not going to have a lot of people arguing 'no recession' with this data," said Lakshman Achuthan, managing director of the Economic Cycle Research Institute. The prolonged job loss and jump in unemployment are better indicators that the economy is in a downturn than is the traditional thumbnail rule of two quarters of falling gross domestic product, he said.
The jobs report came on the same day that oil prices soared to $134 as the dollar lost value against the euro and the yen. It also comes the day after the Mortgage Bankers Association reported that homes in foreclosure crossed the 1 million mark during the first quarter, a record high.
"All these things take time to digest," said Roger Bayston, a senior portfolio manager for Franklin Templeton Investments. "We believe that in the long-term the economic boat is going to righted, but in the near term everyone is going to be busy bailing water."
Teenage unemployment soars
John Silvia, chief economist with Wachovia, said the unemployment rate was distorted by a big jump in teenage unemployment in May, to 18.7% from 15.4%, as the school year ended and teenagers started searching for jobs. And the Labor Department figures were probably underestimating unemployment in the months leading up to Friday's report, he said.
"This report reflects what we should have seen over the last two to three months," said Silvia.
The Labor Department also reported Friday a net loss of 49,000 jobs in May, compared to a revised loss of 28,000 jobs in April. That was a touch better than economists' forecast of a 60,000 loss, but it marked the fifth straight month that the economy has lost jobs.
Overall, the economy has shed 324,000 jobs this year, the worst start to a year since 2002, when the nation was still struggling with the aftereffects of a recession.
The job losses in the payroll report were widespread, as the battered construction industry lost 34,000 jobs and manufacturers cut 26,000 jobs from the nation's factories. But the service sector also saw job losses in many sectors, as retailers trimmed 27,000 jobs. The business and professional services categories took a 39,000 job hit.
"The business and professional has to be a focus of concern. The job losses have broadened out," Silvia said. "Those are generally good-paying jobs. This is a clear sign the weakness is spreading beyond the construction and manufacturing."
Part of the decline in business and professional services came from a 30,000 cut in temporary jobs, bringing losses in that sector to 106,000 so far this year. Tig Gilliam, chief executive of Adecco Group North America, the unit of the world's largest employment firm, said that cut is another indicator about widespread concern among employers.
"As the economy slows down, the temporary employees are sometimes the first to go," he said. Temporary employment also tends to pick up just before a recovery, he said. "The May number shows there's no recovery (ahead) yet."
Jobs on the campaign trail
Presidential candidates Barack Obama and John McCain were both quick to react to the jobs report. Each argued that the dire employment picture was proof that they had the best solution for the nation's economy, and that their opponent's policy would be a mistake.
"This is a reminder that working families continue to bear the brunt of the failed Bush economic policies that John McCain wants to continue for another four years," said Obama's statement.
"We can't afford John McCain's plan to spend billions of dollars on tax breaks for big corporations and wealthy CEOs."
McCain's statement argued that tax breaks are more important to spur the economy in the face of weak employment.
"The wrong change for our country would be an economic agenda based upon the policies of the past that advocate higher taxes, bigger government, government-run health care and greater isolationism," said McCain's statement. "To help families at this critical time, we cannot afford to go backward as Senator Obama advocates."
Jobless spike deepens economic pain
Biggest jump in unemployment rate since 1986 - combined with energy and housing woes - stokes fears about recession.
Biggest jump in unemployment rate since 1986 - combined with energy and housing woes - stokes fears about recession.
NEW YORK (CNNMoney.com) -- A spike in the unemployment rate - the biggest in more than two decades - raised new concerns Friday that a weak labor outlook, high oil prices and continuing woes in the housing and credit markets are leading the U.S. economy into a painful recession.
The government said Friday that the unemployment rate soared to 5.5% in May from 5% in April - much higher than economists had forecast.
The surge marked the biggest one-month jump in unemployment since February 1986, and the 5.5% rate is the highest level seen since October 2004. Unemployment is now a full percentage point higher than it was a year ago.
"You're not going to have a lot of people arguing 'no recession' with this data," said Lakshman Achuthan, managing director of the Economic Cycle Research Institute. The prolonged job loss and jump in unemployment are better indicators that the economy is in a downturn than is the traditional thumbnail rule of two quarters of falling gross domestic product, he said.
The jobs report came on the same day that oil prices soared to $134 as the dollar lost value against the euro and the yen. It also comes the day after the Mortgage Bankers Association reported that homes in foreclosure crossed the 1 million mark during the first quarter, a record high.
"All these things take time to digest," said Roger Bayston, a senior portfolio manager for Franklin Templeton Investments. "We believe that in the long-term the economic boat is going to righted, but in the near term everyone is going to be busy bailing water."
Teenage unemployment soars
John Silvia, chief economist with Wachovia, said the unemployment rate was distorted by a big jump in teenage unemployment in May, to 18.7% from 15.4%, as the school year ended and teenagers started searching for jobs. And the Labor Department figures were probably underestimating unemployment in the months leading up to Friday's report, he said.
"This report reflects what we should have seen over the last two to three months," said Silvia.
The Labor Department also reported Friday a net loss of 49,000 jobs in May, compared to a revised loss of 28,000 jobs in April. That was a touch better than economists' forecast of a 60,000 loss, but it marked the fifth straight month that the economy has lost jobs.
Overall, the economy has shed 324,000 jobs this year, the worst start to a year since 2002, when the nation was still struggling with the aftereffects of a recession.
The job losses in the payroll report were widespread, as the battered construction industry lost 34,000 jobs and manufacturers cut 26,000 jobs from the nation's factories. But the service sector also saw job losses in many sectors, as retailers trimmed 27,000 jobs. The business and professional services categories took a 39,000 job hit.
"The business and professional has to be a focus of concern. The job losses have broadened out," Silvia said. "Those are generally good-paying jobs. This is a clear sign the weakness is spreading beyond the construction and manufacturing."
Part of the decline in business and professional services came from a 30,000 cut in temporary jobs, bringing losses in that sector to 106,000 so far this year. Tig Gilliam, chief executive of Adecco Group North America, the unit of the world's largest employment firm, said that cut is another indicator about widespread concern among employers.
"As the economy slows down, the temporary employees are sometimes the first to go," he said. Temporary employment also tends to pick up just before a recovery, he said. "The May number shows there's no recovery (ahead) yet."
Jobs on the campaign trail
Presidential candidates Barack Obama and John McCain were both quick to react to the jobs report. Each argued that the dire employment picture was proof that they had the best solution for the nation's economy, and that their opponent's policy would be a mistake.
"This is a reminder that working families continue to bear the brunt of the failed Bush economic policies that John McCain wants to continue for another four years," said Obama's statement.
"We can't afford John McCain's plan to spend billions of dollars on tax breaks for big corporations and wealthy CEOs."
McCain's statement argued that tax breaks are more important to spur the economy in the face of weak employment.
"The wrong change for our country would be an economic agenda based upon the policies of the past that advocate higher taxes, bigger government, government-run health care and greater isolationism," said McCain's statement. "To help families at this critical time, we cannot afford to go backward as Senator Obama advocates."
Friday, May 30, 2008
Poor Management
Happy Friday! With the weekend rapidly approaching, I wanted to bring your attention to an article I recently read regarding poor management. Thanks to Ronald Katz and ERE.net, today's feature article analyzes how poor management can result in a great employee being let go. Now I know some of you are going to say that some cases are the result of a bad hire - and yes, I do agree with you. However, there a many an instance, where a manager fires a good employee because of their inability to effectively manage. I hope this doesn't ring too close to home, but I thought it valuable to share as we never know when we might find ourselves in a similar scenario. Enjoy -
She was given work assignments to complete that had never been discussed in the interview. At her exit interview, her manager admitted he had overestimated her technical skills in the interview. She had not professed extensive technical skills in the interview. She was given no notice that she was to be terminated, just asked to come to the conference room at 3 pm on what turned out to be her last day.
Reflecting back, she realized that there had been virtually no communication with her manager over her last three days leading up to her termination. What's ironic is that she was actually getting a lot of work done then. She felt that she was finally just starting to get the hang of things.
This was during the time when her manager was probably meeting with HR to work out and finalize her termination. At the exit interview, she was told that she "didn't pick things up quickly enough."
My friend had asked lots of questions of her manager while employed there, particularly when given work that was beyond what had been discussed in the interview. But whenever she asked her boss about her assignments, he talked about other things and never really answered her questions.
When a manager says something like "you didn't pick things up quickly enough," this can also be seen to mean, "I didn't take the time to manage you well."
Especially with new hires, managers have to invest a lot of time in integrating the new employee. When a new piece of equipment is obtained for the office, there is often instruction in how to use that piece of equipment, at least for the person who is responsible for using it. We may even send the person to training in how to use the machine.
Sink or Swim?
We don't seem to do that consistently with people. We throw them into situations and expect them to "sink or swim." We cannot afford to have too many new hires sink. It just costs too much money.
It costs a manager something more than money to admit that he may not have managed the person in the way that they needed to be managed. He didn't take the time to figure out how to motivate the person. He didn't figure out how the new person learns best, through careful instruction or trial and error.
The cost is that the manager has to admit that he made a mistake. That he was wrong. It's much easier to blame the now-terminated new hire:
"You didn't pick things up fast enough."
"You weren't communicating enough."
"You didn't understand the culture here."
"You were a bad fit."
In all these cases, the common denominator may have been that the manager didn't do a good enough job in interviewing the person or integrating the new hire into the workforce in the first weeks or months. In every case, the manager blamed the employee for what may have been the manager's shortcoming.
Managing is hard work. It's not intuitive. No one is born a manager. Some people are born leaders, but managing requires training and it takes time.
Good managers can be developed, but only if they are given the time to learn, also the same way new hires need time to develop.
Managers need to master a broad skill set to be effective in all phases of the role:
Understanding how the department operates so that the right mix of jobs is created.
Interviewing (which is so much more than just talking to people) to effectively determine whether candidates have the correct skill-match for the position.
Orienting the new hire to the workplace and to the job and his or her colleagues. Integrating a new hire takes weeks, not hours. Too frequently, managers leave orientation up to HR. No offense to HR, but new hires are too valuable to be trusted only to HR. The HR team has a critical role to play in integrating new employees, but the new hire is going to listen far more to what their new manager tells them than anything HR has to say.
Setting performance objectives so that the new hire clearly understands what is expected of him or her.
Giving feedback on an ongoing basis, not just at the end of the year in an anxiety-ridden performance evaluation.
Recognizing and rewarding people for their effort as well as for their accomplishments.
When you look at all the expectations that we have of managers, it's easy to understand why we invest so much in management development and training. It takes time to become an effective manager. Anyone promoted to management generally figures this out in the first few days on the job.
The piece that too often gets overlooked is training our managers in people management. How to interview candidates, how to select the right ones who can be most productive in their environment, and how to continue to get the most out of them on the job. Managers need to learn how to engage their staff so they give their best effort on the job as opposed to just doing enough not to get fired.
The good news is we usually give new managers the time to figure out how to do their new job, in part because of all the time and money invested in developing this person to the point of promotion.
No doubt, this new manager would certainly be annoyed if after a few weeks in the new position, their manager called them into a conference room and started in with, "You're not picking things up quickly enough."
You Didn't Pick Things Up Quickly Enough
Is it an employee's fault they didn't know what to do?
5/22/2008 by Ronald Katz
Is it an employee's fault they didn't know what to do?
5/22/2008 by Ronald Katz
My friend was released after just 20 days on the job.
She was given work assignments to complete that had never been discussed in the interview. At her exit interview, her manager admitted he had overestimated her technical skills in the interview. She had not professed extensive technical skills in the interview. She was given no notice that she was to be terminated, just asked to come to the conference room at 3 pm on what turned out to be her last day.
Reflecting back, she realized that there had been virtually no communication with her manager over her last three days leading up to her termination. What's ironic is that she was actually getting a lot of work done then. She felt that she was finally just starting to get the hang of things.
This was during the time when her manager was probably meeting with HR to work out and finalize her termination. At the exit interview, she was told that she "didn't pick things up quickly enough."
My friend had asked lots of questions of her manager while employed there, particularly when given work that was beyond what had been discussed in the interview. But whenever she asked her boss about her assignments, he talked about other things and never really answered her questions.
When a manager says something like "you didn't pick things up quickly enough," this can also be seen to mean, "I didn't take the time to manage you well."
Especially with new hires, managers have to invest a lot of time in integrating the new employee. When a new piece of equipment is obtained for the office, there is often instruction in how to use that piece of equipment, at least for the person who is responsible for using it. We may even send the person to training in how to use the machine.
Sink or Swim?
We don't seem to do that consistently with people. We throw them into situations and expect them to "sink or swim." We cannot afford to have too many new hires sink. It just costs too much money.
It costs a manager something more than money to admit that he may not have managed the person in the way that they needed to be managed. He didn't take the time to figure out how to motivate the person. He didn't figure out how the new person learns best, through careful instruction or trial and error.
The cost is that the manager has to admit that he made a mistake. That he was wrong. It's much easier to blame the now-terminated new hire:
"You didn't pick things up fast enough."
"You weren't communicating enough."
"You didn't understand the culture here."
"You were a bad fit."
In all these cases, the common denominator may have been that the manager didn't do a good enough job in interviewing the person or integrating the new hire into the workforce in the first weeks or months. In every case, the manager blamed the employee for what may have been the manager's shortcoming.
Managing is hard work. It's not intuitive. No one is born a manager. Some people are born leaders, but managing requires training and it takes time.
Good managers can be developed, but only if they are given the time to learn, also the same way new hires need time to develop.
Managers need to master a broad skill set to be effective in all phases of the role:
Understanding how the department operates so that the right mix of jobs is created.
Interviewing (which is so much more than just talking to people) to effectively determine whether candidates have the correct skill-match for the position.
Orienting the new hire to the workplace and to the job and his or her colleagues. Integrating a new hire takes weeks, not hours. Too frequently, managers leave orientation up to HR. No offense to HR, but new hires are too valuable to be trusted only to HR. The HR team has a critical role to play in integrating new employees, but the new hire is going to listen far more to what their new manager tells them than anything HR has to say.
Setting performance objectives so that the new hire clearly understands what is expected of him or her.
Giving feedback on an ongoing basis, not just at the end of the year in an anxiety-ridden performance evaluation.
Recognizing and rewarding people for their effort as well as for their accomplishments.
When you look at all the expectations that we have of managers, it's easy to understand why we invest so much in management development and training. It takes time to become an effective manager. Anyone promoted to management generally figures this out in the first few days on the job.
The piece that too often gets overlooked is training our managers in people management. How to interview candidates, how to select the right ones who can be most productive in their environment, and how to continue to get the most out of them on the job. Managers need to learn how to engage their staff so they give their best effort on the job as opposed to just doing enough not to get fired.
The good news is we usually give new managers the time to figure out how to do their new job, in part because of all the time and money invested in developing this person to the point of promotion.
No doubt, this new manager would certainly be annoyed if after a few weeks in the new position, their manager called them into a conference room and started in with, "You're not picking things up quickly enough."
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