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Saturday, July 1, 2017

Ulysses, CEOs, Recruiters and Siren Chants

How to escape the siren song. A lesson for Odysseus and the CEOs or Recruiters of People


The Odyssey, a legendary work shows us Ulysses receiving advice from the sorceress Circe, to overcome the dangers on the journey back home. When he reached the island of the Sirens, nymphs or sea deities, who enchanted the sailors with their songs, he and his companions already knew what to do to avoid the danger and destruction where the musical vocals, prodigiously attractive and hypnotic, were conducting. Odysseus plugged his companions' ears with wax and had him tied to the ship's mast. When the Sirens sang a beautiful chant and called with persuasive voices to Odysseus, who, in utter ecstasy, tried to untie himself to go to sea, his companions tied him more strongly to the mast of the ship. When the island was left behind, the companions got rid of the wax plugs and freed Odysseus. According to the myth, the mermaids, despised for not being heard, took their lives by throwing themselves into the sea.

Odysseus was lucky, received and listened to timely and prudent advice. What is it to CEOs for human resource recruiters to sing the siren that can lead to destruction? Can they be lucky like Odysseus to save himself from the mortal danger of bad choice?

In companies, employees are divided into groups: young and old; the point at which you move from one group to another is debatable, but in our case, assume that it is 40 years old (before someone at that age had a lot of potential in the company). Replacement should be gradual so that a balance is reached, where the contribution in talent, commitment, achievement and productivity of both groups is equivalent (point E in figure 1). At point A, the talent of young people could be wasted; in the B group the greater number of young people could compensate the departure of experienced workers in the company.

What happens when blinded by the myth around the "super powers" of the millennials, decide to rule out many who have passed the forty and is located at point D ?. It would be a wise decision if all millennials have the talents attributed, if they all assume commitment and loyalty to the company by matching or surpassing what former senior workers brought. At this point, far from balance, a clear gap has been created that is explained both by the need for generational change and by prejudices in favor of young people and at the expense of so-called old people.




Now the danger comes. The lack of prudence (they did not get waxed in their ears or tied to the mast like Odysseus and his companions) gets that enthusiasm to prevent them from seeing a notoriously damaging feature of millennials, lack of loyalty. They only stay in a company to the extent that they meet their personal and selfish needs, very few believe the story that the employee must be unconditional and loyal to the company. They offer their services, their "talent"; if they pay them what they owe, in another case they go to the competition, without any scruples. And if some knowledge, some vital processes are known only by them, they will not give them and will leave in an uncomfortable situation to the organization that they abandon. The volatility of the contribution and commitment in every sense is constant, which is why it shows an undulating line, which indicates that with the same speed with which they are elected and contracted they go to another place.


Deloitte in the 2016 Deloitte Millennial Survey found that "millennials generally offer little loyalty to their current employers and many have exit plans in the short term. The "challenge of loyalty" is driven by several factors. Millennals are thought to be underutilized and think they are not developing as leaders "(Deloitte, 2017: 2)

Deloitte's annual survey of Millennials' famous generation showed that companies should adjust how they encourage loyalty, otherwise they risk losing a high percentage of their employees. Being people with many concerns, do not imagine in the same job for a long time, especially if they have no chance of growth. 44% of respondents said they expected to leave their current employer in the next two years; And two-thirds would leave the organization by 2020. Only 10% are seen in the same company within 10 years.

This volatility of the millennial, as well as the contribution of his talent can generate absurd situations such as having in a spreadsheet people perhaps trained in the most modern management techniques (MBA, some with double or triple degree) and without clutch with productivity , and results that are lower than those achieved with the old collaborators and that supposedly have less potential or real capacities (as shown by the dotted green line in Figure 3). An electric bulb of 25 W that contributes 250 lumen of brightness or illumination, that operates continuously is preferable to another one that offers 2000 lumen but sporadically, by sparks.



Loyalty is directly related to opportunities for leadership development, job flexibility, and sense of purpose beyond income. If CEOs are very restrictive with former employees, why do they agree to be very lenient with this new group?

This lack of loyalty is a serious challenge for companies that employ many Millennials, especially in markets such as the United States, where they are now the largest segment of the workforce. When there are problems and solutions are provided by employees or obtained from abroad, they can not be implemented with millenillas, because some will already be gone, others will be with a mind foreign to the interests and needs of the company; while the old employees, the old discarded are no longer. The CEOs or recruiters who made the decision to get rid of the old fell like children in the siren trap.

There is no doubt about a fact: The CEO and / or recruiters who brought the organization into this situation do not have the talent required to choose the best contributors, therefore, they must be as far from the organization as the "despicable old men " of which they were undone. That is, they lack the sense of smell that is needed to choose the best that make a team champion.


Businesses always face problems and solutions can come from internal or external staff (consultancies, for example). In an MIT study conducted over a four-year period by Malhotra, Majchrzak, Kesebi and Looram (2017) to determine how companies use internal forces, including front-line employees, in finding new solutions to the business challenges, interviewed executives who promote the internal search for solutions.

Organizations seek better solutions to their everyday problems, many encourage their employees to use their experiences to develop new ideas and take a more active role in the innovation process. This approach involves better contracting practices, better products or services, better forecasts; Companies like AT & T Inc., Google Inc. and Deutsche Telekom AG now practice internal crowdsourcing, search for ideas and proposals within the organization.

When external crowdsourcing is carried out, which involves asking for ideas from consumers, suppliers and anyone else who wishes to participate, it is because internal crowdsourcing is still not fully understood, which seeks to channel the ideas and experience of the employees themselves. Internally, employees are allowed to interact dynamically with co-workers in other areas, to propose new ideas and suggest changes in management.

Many large companies have a "background" of experience and knowledge scattered in different places; Malhotra et. Al (2017) found that harnessing internal cognitive diversity can open new and rich sources of innovation. Also, internal crowdsourcing is a particularly effective way to engage younger employees and people working front-line.

Companies that resort to external crowdsourcing should solve several problems. The people involved do not know the context and circumstances in which the organization operates, and many suggestions will be unfeasible. Customer input will be good descriptions of critical points and weaknesses, but do not help with ideas to solve problems. In fact, the proposals require strategic assets that companies do not have and can not afford. In addition, the problem of intellectual property may arise, does the person who collaborates or the company own the idea?

The inner groups are not as diverse as the external groups, and can not propose radical ideas because they have a more localized knowledge; but ensures viability and speed. Frontline employees have in-depth knowledge of viable changes, given the circumstances of the company and current assets. It is true that many solutions are patches or alternative solutions that satisfy particular needs, but have a rapid impact on the market; and there is no problem of intellectual property.

One way to encourage creativity, the presentation of proposals is collaborative work, which fosters innovation, empowers and increases morale and commitment.

Malhotra et al. (2017) present in Graph 5 the advantages of internal and external sources of solutions. This graph also suggests the need to act well in the choice and attraction of talents. The dilemma of internal and external solutions is as imprinting as the dilemma of young (millennial) and old (over 40)

Graph 5. Where to look for solutions?


Source: http://sloanreview.mit.edu/article/developing-innovative-solutions-through-internal-crowdsourcing

The fate of Odyssey is shared only by a few, guided by prudence, moderation, justice and balance in human relations. When they hire people, for unquestionable reasons regarding the renewal of people and the need to have collaborators who are trained in the new technical and management tools, they do not automatically exclude older people than millennial. In this way, they avoid the loss of talent without being seduced by the siren song that is represented by the blind and obsessive inclination towards the millennial and the almost pathological contempt for the old (over 40).

An irrefutable evidence that they are not mistaken, when they discard the old, is that companies should be immediately in the top positions in their sector, a situation that is not true in the vast majority of cases and is not empirically demonstrable.

If Odysseus lived in our time, the use of GPS, instruments and sophisticated control mechanisms, would prevent it from crashing or encalle. If he does it is out of foolishness or incompetence. Similarly, CEOs and recruiters have access to theories, algorithms, hundreds of books with techniques and advice from renowned experts, master's or doctoral degrees, powerful expert systems and multiple mechanisms so that mistakes in the choice of type of employees and the balance between the different groups (young and old), are not admissible. Like the reckless Odysseus, they should go to the bottom of the sea.

References


Malhotra Arvind,  Majchrzak Ann, Kesebi Lâle, and Looram Sean (2017) Developing Innovative Solutions Through Internal Crowdsourcing
Magazine: Summer 2017 IssueResearch Feature, May 31, 2017

Deloitte (2016) The 2016 Deloitte Millennial Survey Winning over the next generation of leaders

Odiseo y las sirenas, febrero 2014