WorkPuzzle

Facebook Is Going Gray - Part 2

As the demographics of Facebook skew towards an older crowd, will the catalyst that allows businesses to better engage the Facebook masses change?  There are some people who think so.

Jefferson Graham wrote an article in USA Today last week that highlights two ways that businesses are now engaging customers via Facebook.

1.  Fan Pages - Fan pages are free Facebook sites that allow a Facebook user to “follow” a company.  Originally, these pages were created for celebrities (ex. You can identify yourself as a fan of Shaquille O'Neal), but companies soon joined suit and created their own fan pages. 

Some small businesses have had success with these pages.  Graham highlights a nightclub in Hermosa Beach, CA that has a “fan base” of 650 Facebook users.  The nightclub sends its fans frequent information regarding specials, discounts, and events.

However, while there are more than 100,000 small business fan pages on Facebook, not many companies are successful at using this method to promote business, (although the article does highlight several exceptions).  The common thread for success with this strategy is consistently offering something of value to the end user.  If you expect people to engage with your business out of goodwill or to gain a sense of community, you’ll be disappointed.  It’s like feeding a stray cat...If you continue to feed it, it’ll stick around. 

2.  Targeted Advertising - This is where it gets interesting.  Graham reports:

“Advertisers can now choose pay-per-click ads similar to Google's auction-based ad program, bidding on words and paying when someone clicks on their ad, or traditional ads based on 'impressions,' or the number of times an ad is presented.”

That’s not too exciting in and of itself, but think about the information Facebook has about its users—much more than Google could produce in a random internet search.  

“Marketers increasingly are gravitating to Facebook because they can advertise to a targeted audience, says Emily Riley, an analyst at Forrester Research.  She says marketers can pick and choose consumers based on public information they share on their Facebook profiles, such as the city they live in, the college they attended, their group affiliations and their fan pages.

‘You can literally find a book lover in New York who is a fan of Stephen King,’ says Riley. ‘That is gold for a local book seller.  Brides tell their friends they're engaged, and wedding vendors can run ads specifically targeted to them.’”

This type of targeting is remarkable (and a little scary), but must be applied correctly if it is going to benefit a given business.  The types of products and services that are easily promotable in Facebook are those which are transactional in nature.  More specifically...the things that you can buy over the internet after viewing an advertisement.

This is where the demographic changes will have the largest impact.  Older users are able to buy a much wider range of products and services, and they have more money to spend.  Also, they feel less awkward about buying things within the framework of a social network.  After all, they did not get involved in Facebook for the same reasons younger people got involved.  Therefore, they will not feel the same level of annoyance when someone tries to market to them.

Where does this leave the hiring manager or recruiter who is trying to leverage the power of Facebook in their business?  With regard to soliciting candidates, it would be difficult to apply either of the two previously mentioned methods of engaging Facebook users... However, social networks are a natural support to traditional word-of-mouth marketing.  This will continue.  But, unfortunately, marketing on a large scale basis to candidates via this channel will probably remain uncomfortable and expensive.

Facebook Is Going Gray

Over the last couple of years, there has been a large number of marketers, business owners, and even recruiting professionals, who have been trying to figure out how to leverage social networks to their advantage. 

It’s been an awkward exercise.  Business professionals are attempting to take a tool that was created (and became wildly popular) for a specific purpose, and manipulate it in a way that will produce a result that is much more self-serving.  The participants in these social networks sense this, and often turn a deaf ear to these sorts of efforts.

However, change may be on the horizon... Not because the young people in these social networks have suddenly become tolerant of marketing messages, but because the make-up of the networks is changing.  Take a look at what the San Francisco Chronicle reported last week:

“Long a hangout for college students, the social-networking giant has morphed into a virtual parlor for the middle-aged, according to a new study.

People 35 to 54 are now the biggest age group on the Web site, accounting for 28.2 percent of all U.S. users as of July, according to iStrategyLabs, an online marketing firm.  Following close behind are 24- to 34-year-olds, who represent 25.2 percent of users.

The 18-to-24 age group accounted for 25.1 percent of users, down from 40.8 percent in January, the study found.  Those 17 and under made up 9.8 percent of the Web site's users, down from 13.5 percent.”

The shift in populations using these networks is remarkable.  Notice the research documents this change has happened “since January.”  On the surface, it would appear that there has been a major exodus of young people from the network, but this is not the case.

“The findings reflect a major evolution at Facebook, which until January was dominated by young adults, some of whom famously festoon their profiles with photos of beer bashes and belly buttons.  Although their numbers continue to grow on the service, younger users have been overtaken by their seniors, who are joining at a faster rate.

Since January, the number of new users between ages 35 to 54 grew 190 percent, to 20.2 million, according to the study.  New users 55 and older grew 590 percent, to 5.9 million.”

Tomorrow, I’ll share some more regarding how businesses are already using this shift to their advantage... It doesn’t take long for people to innovate on these types of changes.  In the meantime, don’t be afraid to invite your parents to be your friend on Facebook - It may not be long until they’re showing you how this social networking thing is done!

Today's Hires May Be Tomorrow's Leaders

There are many companies across the country that, given the state of the economy, are choosing to postpone hiring new talent at this time.  I sincerely believe this to be a grave mistake.

Here is why: 

When times are good, the best talent is already heavily engaged in their careers. They are the ones leading the charge in innovation and growth among their industries.  It is very difficult to dislodge these high performers during periods of growth.  Although you can always count on a certain amount of good people at any point in time, as there are always people who are languishing, many of those you are able to dislodge during good times are those looking to make an easy buck.

Look around your office... I know for a fact that some of your top producers and best managers came on board during the tough times of 1979 to 1984.  They were the few who said, “Of course I’m going sell homes with mortgages of 15% interest rates!”  Many of them are your leaders now.

In tough times people are shaken to their core.  The wisest and healthiest people, reexamine their lives, their values, and their vocation.  It's during these times that people question the trust they had in what they thought was "stability,” and entertain the possibilities for change.  You likely did this at some point yourself, before entering your current position.

It's during this period of “reexamining” where you can most effectively dislodge the best talent from their current occupation and get them to mindfully consider working for you.

These people will be the innovators of tomorrow's real estate industry.  They will twitter their way to selling homes in ways we can’t even imagine.  Don’t waste this period of time in history.  Your next wave of talent is out there, just waiting to be discovered...

Trusting Your Gut

Over the last couple of days, I’ve been relaying some of the lessons learned from the aftermath of the financial crisis last fall, as reported in a series of articles published in Harvard Business Review this month.  When a plane crashes, people want to know what went wrong... The same is true with the economy. 

One of the primary causes of the financial crisis was an over-confidence in financial models that did not prove reliable.  Surprisingly, these models were built on data and rational thought. 

For example, if no more than 2% of the population has ever defaulted on their mortgage in any given year for the past 30 years, it is rational to conclude that no more than 2% will default in the years to come as well, right?  However, this pattern did not hold true...the models were wrong.  The HBR article puts it this way:

“Data, computing power, and mathematical models have been transforming many realms of management from art to science.  But, the crisis exposed the limitations of certain tools.  In particular, the world saw the folly of the reliance by banks, insurance companies, and others on financial models that assume economic rationality, linearity, equilibrium, and bell-curve distributions.  As the recession unfolded, it became clear that the models had badly failed.”

So, is it time to pitch the idea of using data to solve problems and manage more effectively?  Probably not.  It makes sense to utilize data when making a decision, but realize an over-reliance on information alone, may lead you astray.

This balance reminds me of the equilibrium that Captain Kirk and Spock discovered in the legendary Star Trek series.  While Spock’s cold, hard facts were important, the Vulcan logic alone was not sufficient to arrive at the right decision.  Additionally, Kirk would consult his gut-level intuition before pulling the trigger.  The combination was effective.

If you’re a hiring manager, you need to find this balance as well.  It is important that a person “look good on paper,” but that is never the whole story.  Without  verifiable competencies, work history, and education, it is foolish to move someone forward in the hiring process.  From a data perspective, it is also important to verify additional sources of information, such as assessment data, via factual questions during an interview.

Once you have supporting data, trust your gut to make the right decision.  Your intuition can tell you things that the data will never tell you.  When you “feel” a red flag, listen to your instinct and pull back.  When the data looks good and your gut is confirming the data, make the decision with confidence.

In the financial world, it should have “felt” wrong to close a mortgage for someone with no income and no assets (this is a called a NINA loan), but that is exactly what many financial institutions did because they trusted their financial models.  Hopefully, you won’t make the same mistake with your candidates.

Tapping the Passion of a New Hire

Many believe that there is a major shift happening in the business landscape.  There are significant, long-term forces that are shaping the way businesses are able to produce returns.  As the recession lingers on, there is a growing consensus that “business as usual” may never return.

Does that mean that the recession will last forever?  Of course not.  But it does mean that the way businesses bounced back after a recession in the past will not likely repeat itself.  More specifically, the previous employment options enjoyed by many may be gone for good.

Last week, I alerted you to a series of articles (1, 2) that Harvard Business Review recently published on leadership in the workforce following the September 2008 financial crisis and ensuing recession.  In an article titled, The Big Shift, the authors make the point that traditional business measurements no longer capture the challenges and opportunities for companies.  This is occuring due to fundamental shifts in how businesses contribute to the economy. 

This is all pretty heady stuff, and some of it is quite interesting.  I’m not sure anyone can fully understand or predict what is going to happen, but it is fascinating to pour through all the ideas and theories.

What does all of this have to do with you?  If you’re a recruiter or hiring manager, you’re going to see the effects of this shift in your candidates, new hires, and existing employees.  Individuals may not have a full understanding of what is happening, but they can sense changes in the air, and that will impact their behavior.

As individuals attempt to process these changes, one of the early symptoms to look for is passion.  There are two important trends in this area worth noting:

1.  Talented workers are passionate about control:

“Self-employed people are more than twice as likely to be passionate about their work as those who work for firms, according to a survey we conducted.  This suggests a potential red flag for institutional leaders—companies appear to have difficulty holding on to passionate workers.”

If you’re not able to offer candidates at least some level of autonomy in their new position, you’re at a disadvantage.  It is difficult for people to concentrate on the grand vision of the company when the ground is shifting under their feet.  Giving them something small and contained that they can control may be much more appealing. 

2.  Talented workers are passionate about working with other high-quality people:

“The initial findings from our research indicate a correlation between the rapidly growing use of social media and the increasing knowledge that flows between organizations.  Worker passion also appears to be an important amplifier:  When people are engaged in their work and pushing the performance envelope, they seek ways to connect with others who share their passion and who can help them get better faster.”

The principle here is pretty simple:  If you want to tap the passion of a talented new hire, put them around the highest quality people possible.  Shielding your existing best performers from involvement with newly hired employees is a mistake.  You’ll not only fail to engage the passion of the new employee, but you’ll miss an opportunity to rekindle the passion of your top performers.

Making an effort to tap the passion of your candidates and employees will always produce a return, regardless of which direction the business landscape shifts...

Some Quick Insight Into Baby Boomers

Yesterday, we spent some time learning about the perspective of Gen Y employees (age 30 and below) in the workforce.  The research on this topic was consolidated in a recent article in Harvard Business Review.

The same article also highlighted some of the changes that are happening to the Baby Boomers (age 45 to 63).  As you probably know, the Baby Boomer generation has been extensively studied over the years.  As a result, many stereotypes remain alive and well.

While some of these stereotypes are in fact valid, views may be changing due to the aging of this generation, along with some of the profound financial struggles present in our economy.  Here are some of the changes in work attitudes and expectations that Baby Boomers have expressed:

• Delayed Retirement:  42% plan to work past the age of 65.  14% report they never plan to retire
• Long-Term Perspective:  47% see themselves as being in the middle of their careers
• From "Me" to "We":  55% are involved in volunteer work
• Want Flexibility:  87% say being able to "work flexibly" is important
• Familial Obligations:  71% report having elder care responsibilities.  41% contribute to the support of their adult children.

The realities of life have a way of changing a person’s perspective.  While Gen Y is more hopeful and altruistic, Baby Boomers are feeling the weight of their responsibilities and financial circumstances. 

These attitudes dictate priorities when it comes to looking for work.  Here are the types of rewards a Baby Boomer considers at least as important as compensation (ranked in order of importance):

#1 High-quality colleagues
#2 An intellectually stimulating workplace
#3 Autonomy regarding work tasks
#4 Flexible work arrangements
#5 Access to new experiences and challenges
#6 Giving back to the world through work
#7 Recognition from one’s company or boss

Whether you’re coaching employees or participating in the recruiting process, it is important to understand what people value.  Just because these issues may not be resonating with you personally (you may be in a different generation...or just an atypical Baby Boomer), does not mean that those around you are not experiencing them.
 
During your next interview or coaching session, test out some of these findings.  Ask some questions that get at some of these issues and see what kind of responses you get.  You’ll probably have some fun doing this, but you’ll also gain some important insight...

Finding Sources For New Thought

As a recruiter or hiring manager, it’s easy to get stuck or stagnant.  We read the same material, hear about the same best practices, and try—maybe with more effort and resolve, to implement the same strategies.  After awhile, it can all feel a bit stale.

When this happens to me, one of the things I do is seek out information in different industries and different mediums than I normally frequent.  I discovered such an area last week and thought it would be helpful to share what I learned.

The medium I learned about was a site called Marketing Sherpa.  Marketing Sherpa is a direct marketing consulting company that specializes in online tactics.  It was recommended to me by one of our company’s advisory board members.

As we’ve discussed in the past, “recruiting is marketing” in many ways, so it may not be too much of a stretch to draw applications from this environment.  But still, this site often looks at things from a high-volume, consumer perspective, rather than the one-on-one nature of recruiting.

The topic that caught my eye was a case study about Embry-Riddle Aeronautical University.  The case study was three pages long and went into a great amount of detail concerning the process of converting website inquiries to full-fledged applications.

I loved all the numbers and the testing that the marketers employed to optimize their results.  There was one or two things that may apply in some remote way to the way we run our business.

But, the thing that hit me right between the eyes was the work the University did to discover how a person makes a significant decision in their life.  This was interesting stuff.  For example, if a person is considering making a decision about furthering their education, you only have about 60 days to get him to act upon the initial interest.  Once this window elapses, you’ve most likely lost the individual.

There were several more insights such as these.  If you care to read more, you can take a look at:  https://www.marketingsherpa.com/barrier.html?ident=31291 (it is a subscription site, but you can sign up for a free trial).  

Are there some news areas you could investigate to get some new ideas for your recruiting efforts?  You might find some gems you’re not expecting.  Can someone pass me the sports page?

Jack Welch's Perspective on Hiring

You don’t hear much from Jack Welch anymore.  A few years back, you couldn’t pick up a business magazine without seeing some article about Jack Welch.  Since his retirement from General Electric in 2004, it seems the business pundits have moved on to other subjects. 

We can, however, still gain a little “wisdom from Jack”...if we're willing to go looking for it.  He and his wife, Suzy (the former editor of Harvard Business Review), write a weekly column in Business Week.  Last week, they covered the topic of what impact the current recession will have on the hiring environment, once the recession ends.   

“[What can] companies expect when the economy finally improves?  A hiring game that's entirely different—and harder.  Look, this recession has really shocked people.  Never before has the bottom fallen out so fast or affected so many people so deeply.  Virtually no organization has been left unscathed.  Two years ago, being in business was filled with promise and payback.  Now, you just don't know what bad news awaits you when you arrive at work every day.

The result?  Many people have come to the conclusion that they don't want to work for 'the man' anymore.  They want to work for themselves or someone they know and trust.  It's as a marketing specialist told us recently:  'My husband was fired.  My hours were cut in half,' she said.  'As soon as we get on our feet, we're starting our own business.  We're never going to let ourselves be vulnerable again.'

She's hardly alone.  From coast to coast—and through hundreds of e-mails to our Web site and conversations on Twitter—there's a tidal wave of emotion.  To be someone else's employee, people are telling us, is to be at someone else's whim.  The impact of this growing attitude could be profound.  When the economy recovers, most companies might, for the first time, have to deal with a candidate pool that's not particularly excited to work for them.”

As many of you know, we have many clients in the real estate industry.  This type of attitude change among the workforce could be advantageous for those companies who offer business models where the “employee” works for themselves. 

We’re beginning to see this change in mindset with real estate candidates.  While many people are feeling the angst in their current jobs, as the Welch's talk about, they also sense that the real estate market has hit bottom.  Moving into a new career field when things are less crowded makes some people even more excited about the opportunities for success.

What if your business cannot offer a “work for yourself” option?  Welch has some advice for you as well:

“Fortunately, companies can prepare now for the changed hiring dynamic ahead.  All they have to do is, well, stop acting like big companies—bureaucratic and impersonal—and start creating a fast-moving and vibrant atmosphere. They'll need to mimic the upside small companies and entrepreneurial ventures offer as a matter of course.  Teams will need to be smaller, organizations flatter, and the values of candor, informality, and innovation must be baked into the culture.  People will need to feel that what they say matters, regardless of rank and title.  Perhaps most important, companies will need to understand that when the recovery arrives, stars will no longer wait around to be given the authority to make decisions or to be promoted.  The alternative—running their own show—has too much appeal.”

What Creates Talent? - Part 4

Over the past week, I've shared some fairly counter-intuitive insight regarding talent development.  This information benefits anyone who is serious about recruiting, or wants to better coach their success-driven employees. (To catch up, read editions 1, 2, and 3)

Yesterday, I focused on what Dan Coyle has found regarding a concept that he calls ignition (moment of motivation launch).  All of us intuitively can grasp that to excel at anything, one must have the energy, passion and motivation to sustain a commitment to practice....not just any kind of practice, but deep practice.

To arrive at this level of commitment takes a moment where one experiences a spark, and says to him/herself, "I can do that, and want to do it!"  There are several ways this can happen.  A common way, is to witness achievement by someone who resembles you...someone you can relate to.

For example:

• Since Se Ri Pak won the LPGA championship in 1998, South Korean women on tour steadily grew from one, to 33 in 2007.

• Since Anna Kournikova reached Wimbleton finals, Russian women in the WTA top 100 has grown from three to 16.

Girls in these respective countries likely said..."She's like me, and I can see myself doing that!"

• As soon as Roger Banister managed to break what was considered to be an impossible barrier to the four minute mile, http://www.youtube.com/watch?v=uz3ZLpCmKCM, other runners began to break the record.  Knowing that it was possible was all it took to trigger the motivation.

• For me it was watching The Bob Newhart Show in 1974 and thinking to myself that Bob had the sweetest job in the world:  Getting paid to hang out with quirky people!  I know, not too deep a reason, but it did ignite the original spark. 

Whatever it is that lights the spark must happen before the commitment to practice.

Here's a prime example of the link between ignition and commitment:  Gary McPherson set out to understand what differentiated those kids who continue to practice musical instruments and those who give up?  Predicting the continuation and talent development turns out to rest on a simple answer to a simple question:

Before children began music lessons they were asked to identify how long they believed that they'd play their instrument.  The categories were:  (1) Short-term commitment, (2) Medium-term commitment, and (3) Long-term commitment.

The results were staggering.  With the same amount of practice, the long-term commitment group out-performed the short-term group by 400%.  So what matters most, it appears, is one's ignition level - This is what ultimately determines commitment level.

So, what does this mean for you?

How many times have you asked a new recruit about their ignition story...about what initially sparked their interest in their given field?...Or, how long they planned on continuing in their line of work?  And don't settle for vague answers - Commit to getting solid answers.  Those answers may be the most important information you'll ever get regarding the future your employees.

Igniting a hot bed of talent can be done.  We've just begun to scratch the surface regarding how it can be done.  If you're responsible for talent development, you owe it to yourself to read Dan Coyle's book.

Tomorrow, I'll describe the third principle of talent growth:  Master Coaching!

Twitter by the Numbers: What is Really Going On?

About three months ago, I wrote an article about Twitter, and the potential it has to change the way we collect and catalog information as a society.  At the time, Twitter was growing quite rapidly, and it was difficult to tell where the trajectory was leading.

I just ran across some interesting research that may give us some insight into this question.  The research was conducted by HubSpot, an internet marketing firm based in Boston.  Hubspot found that of those who sign up for Twitter accounts...

• 54.88% have never tweeted  (i.e. have never posted anything)
• 55.50% are not following anyone (i.e. are not reading anyone else's posts)
• 52.71% have no followers (i.e. no one is reading their posts)

What does this mean?  Most people who sign-up for Twitter, never use it!  It is difficult for a service, such as Twitter, to have a substantial impact if the majority of the subscribers are not using it.  This is similar to a bunch of people buying their parents a fax machine in the '80s—great idea, but nobody could get their parents to actually use it.

The hope of the business world, is that Twitter will become a vast database of information that will allow marketers—recruiters included—to tap into the demographics and preferences of millions of individuals.  The HubSpot research uncovered some disappointments there as well:

• 75.86% of users have not entered a bio in their profile
• 68.68% have not specified a location

It’s tough to draw conclusions from a data source that is so limited.  The only available information are the millions of 140-character “tweets.”  Maybe the FBI could make some sense of this type of disconnected information, but the rest of us remain at a loss.

There is much more data becoming available that can give us clues about the reality of Twitter.  For example, a recent study by PMN documented that only 22% of Generation Y consumers (18 – 24 years old) are using Twitter (99% have active accounts on a social networking site, such as Facebook). 

You’d think more of this demographic would be driving the buzz about this network, but that is not the case.  We do know that 56% of executives under the age of 40, regularly tweet or generate microfeeds (source: ClickZ study, June 09).  Do you think anyone is reading them?  Probably not.

I think there are a couple of points a recruiter or hiring manager can take from this discussion:

1. If you’re feeling an overwhelming amount of guilt because you’re just not connected with the concept of Twitter, this should relieve your guilt.  You’re not the only one that doesn’t “get” Twitter—many of your candidates are in the same boat.
2. Don’t expect a tool, such as Twitter, to release you from the hard work of recruiting.  It would be great to publish something and then have thousands of people lap it up and find you endearing (isn’t that why Oprah tweets?).  But, it usually doesn’t that work way.  Make the calls, send the emails, have the one-on-one conversations, etc.  Twitter may help you in some small way, but the traditional tasks of recruiting will continue to produce the most consistent results.