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Wednesday, October 3, 2018

The ROI in Human Equity by John Sankitts Jr. 10/3/2018

I would like to begin this article by stating a fact. In the workforce, each employee in a Firm directly contributes to the Firms bottom line through their production value contribution, of-course if certain elements are fostered and maintained. There is an actual equation to equate the ROI (Return on Investment) per employee for the Firm’s yearly net income. But for us laymen, and for those not in HR, ROI can be determined naively as the inverse of labor costs divided by total operating costs or sales. For example, if labor is ½ of total operating expenses for a given business, then the employee costs return twice as much as they take in, gaining an ROI of 100 percent. However, the employee ROI can get diluted depending on the industry, compensation, type of work a given to the employee to perform, if the company's culture is toxic or employee relations are poor. But to be fair, things like sales fluctuating and all things relating to and affected by Porters Five Forces, can give a misleading view of the cost and therefore ROI can be interpreted or “averaged” in an illogical manner.
The Firms most valuable asset is their employees a.k.a Human Equity pool and they must protect, value and enrich this precious revenue producing mechanism of an asset. In today’s corporate America, many Firms have added enriched human equity to their Firm to give them a competitive edge advantage that’s sustainable. As the digital age gets more and more sophisticated and accessible to job seekers, this competitive edge element becomes more and more elusive to obtain and or sustain due to the tilted balance favoring the job seeker in regards to attracting and retaining human equity of the Firm. During my research, its apparent that many companies with huge turnover, poor retention and a continuing decline of the Firm’s online digital image leads to a Firm struggling to meet production needs, be noncompetitive in their market and have a poor or under par Human Equity pool.
Poor retention and the lack of ability to attract stellar candidates to a Firm can be due to a lack or minimal attention to these elements provided below.
·        Employees lack of belonging (self-worth)
·        Poor Employee engagement
·        Lack of inputs/output feedback to and from employees
·        Poor leadership communication
·        Lack of leadership presence
·        Silos within the Firm
·        Cancerous work environment
·        Lack of a strong job design
·        Below average compensation and benefits
(If a Firm cannot afford competitive compensation package to their employees, then this itself can be a huge deterring factor for attracting and retaining employees.
·        Poor training
·        Poor referral reward system or lack of one
·        No recognition system
. Below Average Compensation
·        No incentive system
. No mentor-ship program
·        No exit Interviews
·        No career progression system
·        No educational incentive programs, (tuition assistance or reimbursements)
·        No dedicated HR employee relations personnel
·        Poor policies and SOP’s
·        Ineffective or bias HR
·        Poor on-boarding process
·        Poor orientation
·        Poor work life balance
. No 30, 60, 90 day new employee "check in" or "progress" policy
Investing in employees can be a very beneficial and an all-around positive experience for both parties. The benefits to the Firm can be higher productivity, the ability to retain star employees, gain referrals through the human equity pool, and lessen retention expense thats due to lack of productivity, interpersonal conflicts, miscommunication and turnovers in which adds to the cost of hiring new employees. Employees that feels valued, that feels that the Firm sees, and hears them, that they feel that their inputs/outputs add value to the Firm, that feel that the Firm is getting the ROI on their efforts transform the employee to be eagerly motivated to contribute, this will work to improve their Firm’s business as well as create an incentive and sense of security that compels employees to stay with the Firm instead of “jumping ship”or seeking employment with direct competitors. Effective Employee relations is key, just showing your employees the the Firm cares about them can have a huge impact on retention. For example here are a few ways you can show your employees that your investing in them on a personal level.
o    By offering them a gym membership so they can keep healthy and feel good.
o   Allow them to pursue side projects that are interesting to them.
o   Offer to support professional development initiatives.
o   Allow the option of paid time off to volunteer.
The bottom line, The Firms ROI in Employees:
Naturally, the Firm wants to keep their employees, increase or obtain optimal ROI from each employee, which easier said than done. Currently there is a negative phenomenon in hiring and staffing, you’ll be surprised on how hard it is to staff, to find stellar candidates, and or to keep your star employees and happy at that. Many Firms not only use internal recruiters to staff their company, they also use external staffing firms to recruit, pinpoint and locate potential candidates or what we call "purple squirrels" and pay hefty commissions. Even private large staffing firms may use other external specialized companies or boutique staffing firms to aid in finding them certain niche, top talent. There just aren’t enough stellar candidates to go around and the good ones are staying with companies that place extreme value on their employees as a competitive advantage or they are not interested in make a career move.
It’s an Employees Market: The balance has tilted to their favor.
  Candidates are more sophisticated nowadays, they are conducting research before applying or accepting offers from employers. They are researching the Firms digital image presence and reading reviews on the company and their inner culture, leadership, compensation, and financials. This, all to see if the company has a good working culture, if problems with management exist, if there's ethical treatment of their employees, if the compensation is attractive, is there longevity in the market and how strong are they financially. Companies cannot defend nor erase in more cases their negative sometimes smearing reviews or online digital presence. So it all starts from day one in implementing a great on-boarding experience, a robust employee relations program, and a solid retention strategy.
The negative image online or in print via reviews from former candidates (of course weeding through the externally/internally fabricated ones, biased, and deceitful reviews from prior disgruntle or poor performance candidates) can deter great potential candidates from considering employment with your Firm. Top company review sites like, Glass Door, Great Place to Work, Indeed, Comparably, Vault, The Job Crowd, and Kununu, gives the employees an even playing field through a comprehensive overview about the companies employee pool, salary, core competencies, brief history, and reviews while using a star grading system. This inside information or reviews and overview gives a quick glimpse into the Firm’s inner problematic environment from prior employees that can be immensely valuable to a potential candidate considering applying or accepting an offer with a firm. This inside information, suddenly at the candidates finger tips is comparable to obtaining “Inside Trading”information in the Stock Market arena, info which is astronomically valuable!
  For example, a savvy, stellar potential candidate might look at the Firm’s financials to see how financially strong and stable they are in their market compared to the Firm’s immediate competitor. They may pull the Firms 10k report off the SEC(Security Exchange Commission) to look at earnings and profits, to determine if the Firm is financially big or if the Firm can offer a strong compensation plan. They might look at the “letter to the investors” by the Firm to see if the company is progressive and is building wealth along with future possible partnerships or merges and acquisitions to strengthen the Firms value, increase their stocks, or to strengthen their strategic positioning. This information can help determine if there may be new growing pains, or future layoffs, the companies’ pitfalls or areas of opportunities, their profit losses, their competitors, elements of the (Porters Five Forces) or increased opportunities for advancement to other companies within the Firms umbrella or portfolio.
All this information is easily accessible to the employee and aids them in picking the best employer that will furnish not only the basic needs of an employee but provide an attractive compensation package, an engaging employee empowerment experience and job satisfaction. The reality is that, employees are not machines that can be upgraded, the are not just an ID badge employee number, but are human equity assets that need to be maintained and prime for optimal production and output to increase or add value to the bottom line of a Firm. Their own feedback, sense of ownership or belonging, along with personal growth and professional enrichment (teaching new skills sets) and desires, factor into the equation in retention and increase ROI.
The Firm must have a clear and concise transparent employee relations and retention enriched strategy to engage, retain and or procure potential employees. Employees are looking for Firms that value them and invests in them so that it’s a win- win marriage. The Firm should adhere to the elements listed earlier in my article with a strong focus on competitive incentive packages, scaled bonuses, education benefits and encourages a career development program and ideology or other additional compensation that reflects successful outcomes of investing and attaining the ROI on each employee. The Firms HR department should not be considered a cost center, a profit loss department, or a revenue loss department but instead should be a revenue generating department by procuring the best talent that will yield a significant ROI for the Firm. They should both be aligned with the Firm’s strategic goals and culture and should foster a strategic employee retention and employee relations strategy.
 Conclusion Summary
In conclusion, your employees are the backbone to your Firm. They should be treated like any other highly regarded assets. Importantly, investing in human equity is, in essence, no different than investing in assets, real-estate, equipment, or financial derivatives. The Firm focused on their human equity strategic plan should answer how this investment benefits the employee? how does it increase retention and attract new potential candidates to the Firm that will increase the human capital outputs to the bottom line or ROI to the Firm? A Firm who can answer these questions coherently and honestly, with a focus on enriching their employees, maintaining a positive online digital presence, sustainability, strengthening their position in the market, striving to increase and maintain their competitive edge advantage through human equity is well on his way to maximizing his ROI from investing in his employees.


Monday, July 24, 2017

The Almighty Chat.

The Almighty chat. 
Writen by John S. Jr. 

A sadden artist, late in his life sat at a bench in the garden and wallowed in his pity, that he never fulfilled his internal quest the purpose of living up to his dreams of becoming a great play-writer for the King.

Every play that he wrote was rejected by the King and the play that the King favored had no conclusion. This struck the artist like a cancer and without a conclusion to his play he has lost the will to continue and may be scorned and tossed to the lions. He looked up and ask “God why haven’t I made it yet it, why haven’t I created my future? should I give up?

A dove flew in and landed on his shoulder, the sadden man didn’t flinch and was pleased to have it on him. The bird whisper “I saith the Lord, your ambition is mighty as mine"

The man eyes widen, his frown flipped to a broad smile enlighten and induced to have received a response, and calmly said

“I don’t understand you are GOD.  I’m merely a mortal failed artist”

The dove once again whispered in his ear, “Your ambition is so immense, so powerful, so purposeful that it may take a life time to achieve them, simply… your time just has not come yet, that giving up is futile as I have not given up on you”

“But if ye believe, then others will believe  in you, and your mighty ambition will finally have met with your faith and thhe conclusion you seek will manifest and thus come to be”

The man suddenly came to life, like being born again, he straighter up his back, pulled out his shriveled-up writing paper and instruments and wrote on the park bench for 21 days till the man had a  new screenplay finally with a conclusion. The play was great, the King was pleased and the writer had gained quarters in the Castle as the Kings personal scriber and screen playwright.

This day,  the Artist sat on the very bench he spoke to GOD and said "Lord if you hear me again, thank you for the words of encouragement for I am content"

A dove flew down again, the man did not flinch, he was calm and induced and the dove whispered in his ear “go and tell them that are similar that  ambition is great and dreams are  purposeful but time is the only element you need to fulfill your dreams don’t waste it” the dove flew away and the Man smiled for he was pleased and content and wrote this very parable.

Thursday, July 23, 2015

New Startup, Bad Boss, Bad Reviews,Closed Doors!

To all the men who will become a future CEO, or Startup Founder. There is more than improving Operation efficiency and maintaining Strategic positioning to keep you successful in the corporate world. Having good, talented human equity(employees) and a pristine online digital presence is just or even more crucial and imperative to a successful business endeavor or corporation. A robust pool of is essentially the backbone of any business and revenue (ROI) generator.

So, you think you're the best startup company ever. You think because you’re the Owner, Boss, or VP that you or your company are untouchable.

Then you hire your employees, and then you feel like you are on top of the world. Then you start to get relaxed, and then you show your true colors as a boss, thieving, conniving, manipulating and then perversion runs rampant.

Then your employees no longer have trust in you, then they hate you, despise working for you and your stupid startup company, then they lose respect for you, they rebel and the cancer starts to form and spread to all employees. Then you fire them, feeling you're the almighty. Feeling like they come a "dime a dozen". You treat them like cattle and tell them " if you don't like it you can leave".

Then your employees, who now knows all the weakness, all your trade secrets, all the internal office politics, all the affairs, all the perversion, all the drama, all the financials of your company your company business model, your INVENTIONS as well as knowing the Boss's less than desirable character flaws, now have the fuel they need to start a negative review writing campaign on sites like Glass Door, Vault, Indeed, Monster, LinkedIn, Google News, Hallway, and Career Leak.

It doesn’t stop there, then they make a complaint with the BBB, then the rants begin on Twitter, then it goes viral on their Facebook and then a global, vicious smearing campaign ensues. Then they ask all their friends to start a negative writing review campaign on your startup.

Then you the CEO find that you cannot get quality candidates to work for you, your turn over is high and staffing is cumbersome, time costly and slow, you want the bad reviews to go away, then these sites can charge you millions, or maybe it stays online forever.

Then you, the boss can’t get clients, can close deals, can't get investors, can't hire (huge problem), then you want to hire external recruiters to help you staff, but then the recruiter reads the bad publicity and bad reviews crawling all over the internet and cringes.

Then the recruiter doesn't want to send top talent to your firm because that candidate may leave before the 90 days forcing the recruiter to replace that candidate with another daunting prospecting candidate. Then top candidates’ research your company as they do their due diligence before leaving their current role and decide that it would be really stupid to leave their current company to go with another company that has a bad reputation, a bad culture and a lack of appreciation and respect towards their employees.

But wait there’s more!!!!  Then staffing firms refrain from doing business with your company because your company is labeled as a terrible, unethical place to work with poor culture. Then the bad reputation spreads from candidate to candidate like cancer, from recruiter to recruiter, from company to company, then your competitor joyfully jumps on board the character assassination of your fragile little startup. Smile, it get worst.

Now you have almost no employees left, so you hire your family. Then the Boss brings his wife in, his brother; daughter, sister, cousin, uncle, grandpa, grandma, great, great, great grandma, infusing a worse situation the remaining employees have to deal with like pathetic family office politics. Now what’s left of your employees, whom are now broken, have no faith or trust, depressed, oppressed, and starving, starts to look for a lifesaver, a window of hope they are now hoping they get paid.

     Then all of a sudden when they cash their checks and it bounces like a Lebron James dribble. Now you did it, you check your paper work to make sure your business license is up to date and its set up like an LLC, because you know the (bleep) is going to hit the fan and you really want to keep that BMW you bought with your first Angel Investors cash. Now your employees complain about thievery for not getting paid.

    Why?  cause now the Bosses wife is telling the Boss " We can't pay our home mortgage" " we invested our life savings in this startup, we owe investors, we are going to have to skim some of our employees’ wages off the top to keep living our luxurious lifestyle”. It sucks waiting for direct deposit to go through and bam! you read this message “your account has a zero balance” wow, now you have several people really crushed. The same people who believed in your vision, your idea, your creation, the same people who probably worked for free for endless hour till you started to break even and move into making revenue. Tissue please! Tears.

   Then all your employees quit. Then there’s a lawsuit, (public record), a complaint to the Department of Labor Hour and Wages, then to the BBB, Then John Morgan from Morgan & Morgan, (For the People) you know the attorney who's considered by many in my opinion just as sleazy as any boss, has a class action labor lawsuit filed on your Startup.

Then the doors close. All this stemming from a few fired, disgruntle employees who started character assassination war through calculated, malicious reviews and complaints. I mean I get called for jobs every single day, while I’m on the phone with the recruiter or HR, I am researching the company and reading reviews simultaneously, it takes me exactly 26 seconds to read three to four reviews and I just hang up in disgust. Of course, some reviews can be embellished and untruthful, but who has time to decipher what’s true and what’s fabricated. Reviews are designed to quickly persuade. Just like product reviews, hospitality reviews, Angie's List, a site for reading reviews for a certain type of service sought after.

  The moral to this story is this, be like Jesus and do what Jesus would when dealing with your employees while in the infantile fragile stages of building your startup company. Treat them right. Have good and well engaging job designs to keep them interested and motivated in what they do. Have a recognition system set up, even in the smallest scale.  Make sure you have competitive pay, either fair maket or slightly above the market, if the finance for talent was properly addressed in the business plan for investors then you will have it to spend on good talent. Good talent brings in your yearly revenue per employee ROI. So, it’s imperative that they are a well-kept part of your operations.

Always be mindful of your digital, online image or online presence. Get off your high horse; don't treat your employees like garbage, don't fire employees without remorse, compassion, empathy, like they cannot do anything about it. Revenge thru bad reviews can destroy your fragile business. I have seen many startups go down the drain because of pompous bosses, family interference, and unethical, dubious business practices.

Reviews are online forever, and are usually free to post them as well. Your employees are the most important component to your company, don't lie, cheat, steal, drink, drug, allow perversion, insert unfairness and then expect your employees to be loyal, dedicated or to even trust you again.

 Not having the right employees along with having a short staff shows not only poor below par management but it's also a crippling phenomenon that can bring a new fragile, fledgling startup business down due to not having a strong lucrative work force.

         This phenomenon of insufficient staffing led to a closing of a business as it happened Hostess, they had to shut down operations and closed the doors due to their Bakers going on huge continuous strikes as stated by CEO Rayburn of Hostess "We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike”.  As a startup company, be appreciative of your employees, be a humble Boss, have compassion, have remorse, be ethical, be fair, be honest, be transparent, be sober, be trustworthy, stop thinking you are so much smarter that your employees, because you are really at their mercy in some way.

While having lunch with a business cohort they told me of a previous job he had as a sign shop manager. His boss, the owner came into his companies door hollering, cursing and complaining about how incompetent his employees were because of how backup they were with client job orders.

A prominent amusement them park happened to be his biggest client, a total of 2 million dollars in job orders. Well this has been going on for a while now and the employees all decided that they are going to teach their boss a lesson in humility.

They erased the entire data from all the computers, yes a case for (Computer Fraud and Abuse Act), but the damage is done and more money to spend on a civil suit. I mean all templates, all the financials records, the entire CRM, 10 years of info, all gone with a startup disk, and then in unison all 6 of them never showed up for work the next day. The owner instantaneously turned into Gandhi and transformed himself into a righteous clergyman and begged for his employees to come into work.

The damage was done, the cancer has spread to the point that it had to be eradicated. The owner was upset and blamed his wife because they had an argument that morning that eased into the work environment that ill faded morning when he transferred his personal strife to his employees.

Let me cut though the chase before I bore you to death, the company closed its doors, loss of all their clients, and he went into printing t-shirts from his garage. Imagine the reviews his business received online.

If you fire someone, be as ethical and discreet as possible, try to give them a severance package, try to find them solutions, or give them letters of recommendations, reference letters or a severance package, but please be classy. Maybe there is something else that employee can do than the job first offered to them. Most of all, the biggest, most devious, downright dirty, nasty, self-inflicted killer of all times is this...PLEASE do not wait till the end of the day or their shift to fire an employee. They will hate you forever, that work time of their production you would have gain of their sweat equity they will never get back.

Nobody cares about working the whole day if they are going to get let go and the end of the day, let me assure you as am matter of fact, especially if the job is physically, or mentally demanding. This really brews like cancer in them and the next thing you know you have an employee going postal!!!!  Also, this way they won’t catch wind of it while working and start a cancerous tornado or even steal or damage computers or information.
Please to all CEO's, Owners, or VP's do the firing first thing in the morning it will save you more bad publicity and bad reviews, plus no business establishment wants police at their business and on the news because of an employee that was fired maliciously at the end of a hard day’s work and went postal in today’s hard economy. It happens unfortunately.

Understand that having good, loyal employees is essential to a startup and will also help in growing your business faster through high operations efficiency along with increasing strategic positioning, keeping cost down and increasing yearly revenue.

Negative reviews are so powerful because they take seconds to persuade someone, and in this fast, brutal corporate world and seconds can make or break deal or bring down a fledgling startup. Don’t let bad reviews be the downfall of your business endeavors or financial dreams.

Having a bad online digital presence will cripple your chances of hiring top talent along with procuring investors. Know your employment laws like AA/EEO, FMLA, ADA, and OSHA regulations. Cherish your employees, respect them, treat them as part of the company and not as detachments, and remember your digital online presence is monumental in today’s employment environment and investor markets.

Tuesday, May 26, 2015

The Fetishizing Effect. Dreams, Reality, Outcomes.

We all have dreams, we all want to make it, we all want to be successful. What is success to you? and at what cost would you do to achieve it? We can see that media, social media, radio and other media sources magnify wealth and power, or status. We see a false picture of what success is supposed to be. Success is only measured by its owner not from what others depict it to be. What if your dream is not realistic?  What if you never achieve these high unrealistic successful benchmarks. Then your madden and depressed and opressed and you tend to live a lie. 

 The corporate  and industrial verticals has been sending out false depiction of what success is. They have the masses fetishizing money, status, and power. Fame is fetishized to a point where nothing is private, nothing is pure, special ,or meaningful.  You're life is a open book for society to pick apart and humiliate as they feel better about themselves that some other idiot is on TV selling their soul while they try to put thier own life back in perspective.

This is a vicious cycle that continues to rob you due to not having a clear and defined realistic sense of wellbeing, happiness and success. We can follow dreams, or we can follow tradition but the fetishizing of money, wealth, power through wealth and or power thru status can rob you of joy and a sense of self-awareness and personal realistic success.

Following your dreams and losing yourself or following tradition and regretting not following your dream. This is the question I pose to you. 

Really is your dream worth it. Do you have what it takes, are you willing to make ultimate sacrifices that’s is fueled by If you were once or now passionate about a dream, or pursuing a dreamful career and on top of it all you have had some significant success, should you give up on it all if you get married?

 Should you expect your wife or husband to encourage you and be there for you as a cheerleader as you chip away at your dream?

 Or should you focus on the marriage in a whole and your kids? Should you feel some type of way if she or he is not there for you, or docent seem to care about any of it citing "forget about that already" or just they are just not interested in your? Or they don’t think it’s realistic? Maybe they think that it is a  pipe dreams, what should you do?

Questions to make you think about what’s real, what’s the purpose of you and your career goals, is the chase good enough for you a subliminal purpose in life to live or   are the results of achieving your dreams, fame, financial power the ultimate soul fulfilling contentment.  

The fact of having your morals in tact, keeping true to some sort of moral integrity, like honesty, love, being truthful to self and others, giving, along with being compassionate and  having virtues not only keep you grounded it also keeps realistic, wholesome goals in reach and without ethical dissolution. Does being a millionaire and how you got there really mean success. Is it really realistic?

The virtues that we all used to have instilled in us has been diluted by the media with false representation of what success is like (fame, money, power, status). Is it all worth it once you've made it? or ...was it worth it if it meant loosing your family or losing your morals or not having any virtues. Hummmmm?  Be real with your self, "who are you in the dark" once you have truly answered that you may find enlightenment on what really matters to you and what dreams are really worth pursuing. 

Success is only measured by its owner, and not a reflection of the masses. Dreamers continue to dream but don't sell your soul to get the results you need to fix that false pretense of what success is. Dream to live, but a human first before being a product of society.