The Effective “Agile” Executive

Most of us have read at least one of Peter Drucker’s more than 35 books. If you haven’t, you should know that Drucker’s writings are considered landmarks of the managerial profession. A long-time professor at Claremont Graduate University, he is credited with defining management as a distinct profession, and coining the term “gold-collar” and “knowledge workers.”

One of his most popular books, The Effective Executive, was published in 2004. Reading it now, almost two decades later, it’s easy to see why so many of Drucker’s insights have had such an enormous impact on the shaping of the modern corporation.

As an Agilist, I was gratified to see that the core principles of an strong, well-functioning Agile practice are the same disciplines Drucker outlines in the Effective Executive. If you and your organization are looking to become more Agile, here are two key take-aways from Drucker’s, The Effective Executive.

Know Thy Time

When I meet with clients who are dealing with failed projects, high turn-over, missed deadlines, spotty delivery, and assorted other maladies, my first question is this: How does the team track it’s time? The answer always is: They don’t.

My next question is: Do YOU track your time? The answer: I’m an “executive.” (In other words: No.) This is generally followed by an agitated, if not terse, lecture about why they are too busy to track time, or how time is not why their projects are over budget and behind schedule, and then I’m dismissed with: “Everyone is working hard…”

Consider the above, only now replace the word time with money. Were I to ask any executive or portfolio manager, “How do you track your money?” I would be treated to a barrage of spreadsheets, dashboards, and death by PowerPoint. I certainly would not hear, “We’re too busy to track money….”

Time IS money! If you don’t track it, you’ll never have any control over it.

Sure, people show up. People work hard, okay. But if you’re telling me that your Corkscrew Upgrade Project is your #1 priority, and I see that only 40% of your team is allocated to that project (and 60% of that team’s time is spent on website enhancements), then the Corkscrew Upgrade Project is NOT your #1 priority. (That’s assuming you actually have priorities because if you have more than three, you have none.)

People who sell time – attorneys, consultants, physicians – have a keen understanding the value of their time. They understand billable hours, and “The Thousand-Dollar Meeting.” Unfortunately, this intuitive understanding of time is not reflected in many of the steady-paycheck-white-collar Americans I’ve encountered. It’s even worse in the executive ranks, many of whom see time their subordinates’ time as endless (and free).

Executives are salaried; and, for the most part, they come and go as they please. I have yet to meet a single one didn’t think s/he worked hard, but I’ve never met a single one who tracked his/her time with any accuracy. Truly a missed opportunity.

If no one – including you – is tracking company paid time against tasks or goals, then you truly have no idea where time is spent until it’s gone. You don’t know the real duration of anything (there’s no roadmap for future efforts), nor do you have any data to determine whether or not the time expended in these activities was a good value compared with other tasks.

Tracking time is not about punching in and out. I’m not questioning your work ethic, I’m questioning the value of the work produced. Those are two different things.

Tracking time allows you to see exactly how projects are advanced (or hindered) by activities. It’s about metrics, priorities, difficult choices, saying no. By tracking time, you will learn exactly how much of your time, AND your team’s time is consumed in churn, or consumed producing low-value work. Keep in mind, low-value work is not the same as poor quality! A perfect widget only has value if someone wants to buy it!

The inability to assess the value of activities as it relates to time expended is why projects fail and, frankly, why people fail.

Tracking time and tasks is not difficult. It requires a little discipline, but it is one of the easier things to fix. In some organizations, though, this is akin to stepping on a scale. You know you’re overweight and not running a healthy show, but you’re just too afraid to see the actual number! What happens when people start tracking tasks and time? Just like your money (or your food!) you realize that you’re spending a lot of it on things that bring no joy and offer little long-term value.

What am I Contributing?

The mindset of an Agile executive is the humble acceptance that the higher-up the food chain you are, the more removed you are from the actual work, and the less likely it is that you are effectively contributing to the success of effort. You might have a bigger title, make more money, or sit in an office with a big window, that doesn’t make you valuable to the project.

Executives need to ask themselves: What, exactly, am I contributing? Does this team need my expertise to direct their work? Is my participation improving output? If so, how am I measuring that improvement? How much time is this taking from my other priorities? What, exactly, is my role? Role is not the same as title.

Effective Agile Executives don’t just report up to their managers, they are also responsible for owning the relationships with their peers, and even more importantly they need to meet their “downward” obligations to their teams. Scaled Agile Executives insure alignment, negotiate with peers and stakeholders, communicate strategy. They don’t dictate the manner and methods by which the work is completed.

Drucker and Agile agree: Executives accustomed to hierarchy who now support Agile teams must resist the temptation to pull rank, second guess the Team. If your organization is making an Agile transformation, understand that if you want to be an effective executive, you must change your work habits and your leadership approach.

How to Become an Effective Agile Executive

The first step toward becoming an effective Agile executive is understanding that hierarchy – as an organizational model – is a relic of the industrial age, and it is poorly suited to managing knowledge workers and knowledge projects.

Traditionally, to be a “boss” implied that you were an excellent individual contributor. Being made “boss” was a reward for your hard work. The thought behind this structure of hierarchy was that the boss, as an all-star worker – would impart his wisdom and best practices to others. The result of his supervision and management would be subordinates who produce the same excellent results as the boss did.

In theory, this sounds perfectly reasonable, but in practice, we all know, it is a failed model. While being a good individual contributor offers some advantages when you’re the boss, now, it is commonly accepted that management – in itself – is a profession that requires special skills and aptitudes.

This boss-helper model is the foundation for factory management where work is repetitive and “neck down.” In knowledge industries, such as tech, this model is just not scalable. Why, because these industries are dependent upon high-skilled, highly-specialized “gold-collar workers.” Moreover, The Standish Group in Boston annual report shows, through data analysis, that traditional top-down management actually has a negative impact on an organization’s ability to deliver consistent value in cognitive and creative work like, IT, marketing, and sales.

Unfortunately, despite the overwhelming evidence of its lethargic ineffectiveness, top-down leadership is still practiced and greatly loved – by those at the top. Decisions are made, late or ad hoc, good or bad, thoughtful or capricious, and everyone jumps. It’s awesome. Having people do what you say, when you say it, without argument or push-back is kind of sweet. As time goes on, hierarchical organizations develop cultures that value compliance, over disruption. Inevitably, they become stale, risk adverse, old. No one ever gets fired for the bold decision that they never made.

Drucker correctly predicted that “Gold Collar” knowledge workers would ultimately elevate the role of labor and demolish hierarchy in future organizations, and it looks like he was right on trend. In 2020, Gartner predicted that AI would replace as much as 70% of a traditional manager’s workload. This shift will change the executive’s role to that of coach, not commander.

The relationships and mindset essential for a strong, successful, progressive, and high-performing Agile organization are the the exact same qualities Drucker encourages in The Effective Executive,

Executives are not paid to tell people what to do. They are paid to ensure that the right things are done, and that the money and the time expended return a value to the organization. The best way to support a meaningful value stream in a modern organization is to move from top-down boss-helper to bottom-up team-roles where the effective executive functions as a coach and advocate, not as a boss and commander.

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For a more nuanced view on change in mature organization, view this outstanding Ted Talk from Martin Danoesatro, What are you willing to give up to change the way we work? (15 min)

Turn the Ship Around, a video of one of L. David Marquet’s outstanding Talks at Google. In this session Capt. Marquet discusses common myths of leadership and how to become a more effective “flat org” leader in a large organization. (45 min)

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Copyright 2023 Pierce/Wharton Research, LLC. All rights reserved. No part of this post shall be reproduced without permission.

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Three Things I’ve Learned from My Garden

I have a lot of hobbies; gardening is the most serious. I was introduced to the wonders of plants as a child. Like all hobbies, my garden has grown along with my knowledge and income.

There are few things in life more satisfying than your own garden. The never-ending metaphor for life – a garden offers more than beauty – it offers insight. Here’s a few things I’ve learned from mine:

Anyone Can Change the World

When I was a kid, we lived in a very small apartment. The path from the alley to the back porch was filled with rocks and gravel. It was litter-free, and most renters would have left it alone, but not my Mom and Grandmother. We bought seeds and as soon as Spring would allow, we filled discarded egg cartons with dirt and germinated our crops in the sunny basement windows. Once hardened, my brothers and I dutifully transplanted our seedlings into their assigned places. Over the summer, the Marigolds grew, the Sunflowers blossomed, the Morning Glories climbed through the chain link. We learned to weed and mulch and water. It didn’t matter that I was five, and poor, and lived in a horrible place in a sketch area of town: We made the world a better place, and everyone around us knew it, too.

Gardening is the most egalitarian of hobbies, which is why I love it so. Gardening taught me not to accept my circumstance: I could always make things better for me and for others.  Rich or poor, young or old, gifted or dull: Anyone can grow a beautiful sunflower.

Life is Filled With Death and Failure

Over my lifetime, I’ve spent thousands and thousands of dollars on all kinds of (expensive) plants that — despite my best efforts — have died.  Even more annoying are those that linger and never thrive. Despite 50 years of gardening and my amazing green thumb, I am not immune from disappointment and failure. Not everyone can grow everything well.

Talking about death and failure is something we just don’t do anymore, and I wish we would. Whether painful or shameful, it’s these dark moments that make us change our course.  Only from death and failure do we learn and grow.

Don’t envy beautiful gardens.  Gardens aren’t born, they evolve. Failure is part of the evolution.  The garden has taught me to accept it, learn from it, even plan for it, but most importantly, to let it go. Failure forces you to look for causes, patterns, alternatives.  If it weren’t for those dead petunias, I would have never found succulents.  Today, I have a collection that horticulturalists envy.

Laziness is Sweet; but it’s Consequences are Cruel

Voltaire (also a fan of the garden), is correct in his observation.  Mother nature is an impatient mistress, and she’s not going to wait around for you to “feel” motivated.

Consistent effort is required to achieve anything in life of real value: Good relationships, successful careers, continued health.  They all require consistent effort.

My garden has taught me that procrastinating unpleasant tasks can make them more daunting than they really are. By using the one-hour rule, which is do <whatever work you’re avoiding> for just one hour, I’ve found I almost always able to accomplish more than I originally thought.

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Like affection, effort is never wasted. An hour to till even the smallest garden can lift and inspire others. And, isn’t that what life is all about?

 

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An Ode to Effort

This time of year we set goals. I have goals – but, just like everyone – they change. They get bigger, smaller, or their priority shifts. But, like the Buddha, I have returned from the holiday forest and my mantra for this year is not about goals – it’s about Effort.

Goals are important, but they are secondary – the real value is not in achieving the goal, but in the effort.

Too many dismiss effort. That’s easy to do when there’s money or beauty or natural talent, but these are false idols. What we really admire is the effort. A good job, good home, good relationships, good health, good food, good body, good sex…they aren’t a finish-line goal. They require effort.

Too often we ignore making the effort, especially when it’s small, because we are blinded by getting or having that big goal.

Too often we excuse ourselves, “I know I should make more of an effort….” Or worse, if our satisfaction is not immediate, or our effort isn’t recognized and lauded, we lament, “I’m tired of making the effort.”

We all have goals unaccomplished because of effort. That crowded storage space. Relationships you can’t get out of (or into). The stagnant career. Those extra 20 lbs., that are leaning into 30 now. Effort.

Sometimes it’s easy; sometimes it’s hard, but easy or hard, effort is about time management and consistency. This is where we need to embrace the notion that effort is both a means and an end. Like honor or integrity…it’s a gift you give to yourself.

Effort, like love, is not a zero-sum game. Effort is never about reciprocity because we never run out of effort, and, like love, we can easily manifest more of it whenever we desire.

So, for 2024, my focus is less on achieving, having, or getting, and more on consistently making an effort.

Happy New Year!

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Three Post-Covid Reasons Your Project is Failing

Projects fail for all kinds of reasons – here’s a few things that are different after Covid…..

You’re Trying to Manage a Team on Chat

Don’t get me wrong; I’m not anti-IM. Chat, and its appropriately named cousin, Slack, are fine for a QQ to an individual or small group. What it doesn’t take the place of is a well-run meeting, goals, action items, workflow tools, documented requirements, baseline reporting, status, deliverables – ya know – the “work.”

It’s amazing how many people think nothing of constantly interrupting their highly-paid resources to insist they participate in circuitous Chat threads. Pre-Covid, no one would have ever said to their boss or co-workers, “Follow me around today and listen to all my conversations. That way, you’ll know what I’m doing.” How is constantly being interrupted by chat any different?

Talk is cheap, and the cheapest of all talk is chat.

I recently attended a meeting with a client’s finance team. They were proposing changes to their enterprise Rev Req process. Flow chart? Business Rules? Requirements? SOW? Nope, the guy pulls up a chat from three days ago, and proceeds to add people to the thread – really?

Talk is cheap, and the cheapest of all talk is chat. If you want to be 100% sure that your project will run over budget, over schedule, and your team will be lost in the chum and churn of incomplete direction, “manage” your projects via Chat.

Drug Problems

Maybe you heard: The United States has a drug problem, and that drug problem definitely has gotten worse since Covid. I’ve spent more than a decade working as a Fixer, and I can tell you that the root cause of more than one project / business failure is a key individual (or several individuals) with a drinking or drug problem.

It’s important to keep in mind that just because someone isn’t shit faced drunk at work doesn’t mean they don’t have a drinking problem. “Functional” drunks will insist that they’re not drinking during work hours; ergo, they don’t have a drinking “problem.” However, the effects of their drinking are evident. They’re chronic no-shows. They’re constantly sick, late, a million doctor, dentist, and food poisoning excuses for not showing up. Forget about a morning meeting. They can’t get out of bed. They’re unreliable. They can’t complete anything. When confronted, they will push their work (and blame) on to others. They vacillate between belligerent, and a professional victim, which makes you want to avoid them and assign their tasks to others, which is exactly what they want. #enabler

Another Post-Covid change is the ubiquity of Adderall and its many cousins. Unlike the drunk – who can’t accomplish anything – the Adderall Overachiever thinks they’re super-super productive! They have no problem calling you at 10 PM (spinning like a dreidel) because they really, really need your help with the font for tomorrow’s PowerPoint presentation. (Hint: NOT Comic Sans)

About 10 years ago, I had the great misfortune to work with a man who had a serious Meth problem. I was green in my career, and a deer in the headlights; I didn’t know what I was dealing with then. Now, I know the signs. And, when I see people sniffing, unfocused, babbling, spinning, and looking exhausted, I don’t think they’re “high energy” or insomnia, or allergies – I know they have an amphetamine problem.

I work in a business that is complicated, difficult, and dense, and the last thing I need is someone so jacked-up they cannot follow even the most basic conversation.

Since Covid, I’ve seen a rise in upper use in two groups: Women (trying to do it all) and new grads, many of whom are just not used to working 8-10 hours a day, day-after-day, week-after-week. Both of these groups are trying to “cram” their lives, loves, and responsibilities into too-few hours. And, much like Lucy in the Chocolate Factory, they are failing.

If you find yourself in a situation where you have a client or (god forbid) a boss with a drug problem, start looking for a job immediately. Forget about HR, or confronting anyone. This situation is NOT win-able. There’s nothing you are going to do, nothing you are going to say that will make that person change. Nothing. Not anger. Not sympathy. Nothing.

Life isn’t an “Afterschool Special.” It’s more like “Intervention.” It will take you about 2-3 months to figure out what going on. Once you do, create space between you and Adderall Annie, or Day-Drinkin’-Dan, and funnel ALL your energy into your exit plan. If you don’t, this person will eventually “Nurse Jackie” you. You’ll be fired, blamed for everything, and they will continue on as they have before.

You’re Still in Crisis Mode

It’s hard to believe it’s been two years since the advent of Covid. When it hit, all business rules were thrown aside, and “Crisis Mode,” took the place of planning. Business pivoted their e-com sites to accommodate a flood of delivery methods, “Essential” workers were defined, money was quickly appropriated (no business case needed), to mission-critical efforts – every fiber of our corporate being was in crisis management mode.

Here’s the problem: Humans are creatures of habit, and crisis mode has become our new habit.

During Covid, workers capitulated to excessive demands for overtime. Now? Quite quitting and labor strikes are in the news. And, it’s not just workers who are setting boundaries. Check signers are waking up as well. During the past two years no one paid any attention to ROI, cost-benefit, roadmapping, priorities – who had time for that mammsy-pammsy stuff? We’re in a crisis!

Covid was like a big fire; no one questioned thousands of people carrying buckets of water. Now, the smoke has cleared, and we realize that if we had better equipment, we wouldn’t need as many people with buckets.

You’ve surely heard corporate leaders feigning apologies as they layoff “over-hired” water bearers. All companies are evaluating their staffing, their roadmaps, and even their missions. But, what corporate leadership is not saying is that in just two years, they’ve actually become a bit rusty (and a little too comfortable with Slacking-in direction). Many have fallen out of the practice of truly managing a business. Now, we’re starting to hear again questions like: What, exactly, are your metrics? Where’s the market research? Where’s the business case for the $1.3 system upgrade? What’s the ROI? Where’s the depreciation schedule? Projects that cannot answer these questions are being axed, and the bucket brigade is being axed with ’em…

Final Thoughts…

Complacency is frequent companion of hubris, and even though making it through the past few years is an accomplishment, don’t think that it’s a vaccination against failure. The world has changed, but the purpose of business has not. The goal of running a business is to make a profit, not just have a high stock price.

The next couple years are going to be rough. Regardless of your press, your followers, or your brand: If you’re not running your business well, running your projects well, and making a profit, you won’t be here much longer.

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Copyright 2023 Pierce/Wharton Research, LLC. All rights reserved. No part of this post shall be reproduced without permission.

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The Real Reason Men Want You Back in the Office: They’re Lonely

The demand we all return to the office (so we can all hang out together) seems to come from predominantly men. Why?

They all admit that working at home has not effected the ability of employees to complete their tasks and achieve their goals. Without productivity metrics (something greatly loved pre-Covid) to bolster their argument, these executives are forced to rely upon qualitative and anecdotal reasonings. This is when you’ll hear your c-level overlord wax nostalgic for their pre-Covid Corporate Camelot, how awesome it was, and how this beautiful, perfect culture needs to be proselytize and, if that doesn’t work, brutally enforced.

Corporate culture is a pyramid. There are a few people at the top – literally – on those upper floors, in those big offices with the windows. If you’re really important, the “corner” office with multiple windows. Where are the people holding up the base and sides of the pyramid? Downstairs, in a cube, with the rest of the subjects to be ruled.

I’ve spent 30 years working in some of the biggest corporations at the highest levels, and it has not escaped my attention – nor the attention of labor — that corporate culture is little more than a relic of the Edwardian era. Instead of Dukes, Duchess, Prince and Princesses, we now have Executive VPs, Directors of <stuff>, and assorted lords and ladies of the court who are swept up in the largess of executive coattails.

I’m not down on corporate fat-cats. Being one is kind of sweet. And, what a killer job! What you say goes! No arguments, no need to compromise. Corporate executives are literally surrounded by the fear and trembling of compliant subordinates. When the boss says jump, people jump! Ya know where that doesn’t happen? Every place else on Earth!

There’s a lot to unpack in the WFH debate. Let’s start with the basics:

Men are Lonely.

Men are lonely. They have few friends. They have no women friends. That “culture” they’re bemoaning? It’s an office where they can shoot the shit with the boyz and go to lunch with the gurls. The words “comradery” and “collaboration,” soo important, are thrown into the mix. What that really means is they miss hangin’ with their buddies, and what men really miss is the company of women – women who understand their work, women who laugh at their jokes, women who aren’t their wives. In short: They miss having friends.

Why don’t men have friends? There’s a lot of reasons, but the primary one is that men don’t have friends unless their wives approve of them. This is probably the worst thing about being in a relationship if you’re a guy. Suddenly, every single person in your life must have the nod of your SO. If she doesn’t like ’em, you’re not going to be friends anymore. Female friends? Forget that – they’re toast.

Men aren’t permitted to have female friends unless she’s his sister, and then only with your woman’s approval!

I work in tech. Not surprisingly most of the people I work with are men. My SO works in HR. The majority of his colleagues are women. Should I demand that my man never socialize with his work colleagues? Lunch with the girls? Nope – He should sit in his cube, alone. Happy hour? Not unless I’m there to supervise and approve. What about my work buddies? Am I permitted to have a few beers with the guys after work? What about travel? Should I pass on dinner, and stay in my room and read?

The f-d upness of relationships, love, friendships is a topic for another article, but I think we can all agree that men, in general, lead kind of lonely lives. That needs to change, but making me drive 45-minutes to an office (on my time and dime) so you can feel good about yourself isn’t the way to do it.

Men Derive Their Status from Work.

Our culture associates the value of a man with the job he has. It’s not right, but it is. At work, you’re the VP of this or the director of that. Those titles convey a rank, status. You’re treated with some respect, reverence because of your title. You know where highly-paid and highly-respected C-level men don’t derive status and respect? Having dinner with their 14-year old.

Sheryl Sandberg wants us to lean in, take a seat at the table, and, ultimately sit at the head of the table. Here’s the thing: In the virtual world, there’s no table. Bob Iger is just a little square — like everyone else. In fact, if you’re not talking on your vid, you might not even be on screen. How’s everyone supposed to know that they should be focused on you when you’re not sitting in the power-position at the table, and they’re not in your corner office with your big desk and that killer view of the skyline?

Video calls don’t convey status. You’re a little square – like everyone else.

This is where I see the generation gap the most. Those men who are young in their careers, and guys with young families are not “office-centric,” certainly not in the way men were back in the day. But, if you’re one of those Boomers and Gen Xers whose defined your life and persona by the status you derive from your job, it’s not likely you’re going to give up the trappings of a culture that sees you as a Grand Duke. And I don’t blame you one bit! Doesn’t everyone want be be surrounded by the adoring and obedient?

I Hate My Spouse (and/or Kids)

I think it’s safe to say that there are lots of people who aren’t exactly living the marriage dream. Their attraction to their spouse left years ago. Staying together for the children? Yep. Leading separate lives. You betcha! Grinding it out until <something happens>. Absolutely. What’s a few more years? You’ve been doing it this long, and you’re at work most of the time, right? Except now you’re not…

You can’t avoid your family and its responsibilities when you’re working from home.

When you go to an office, you have a safe place to hang. Getting in early, and staying late is the easiest way to avoid your spouse. If you make a decent amount of cash, there can be travel with your adoring and obedient friends, and team happy hours and dinners where you get to hang with the boyz, pick up the check, and be “the man.” Housework, errands, child care, shopping – so droll! You have people for that! And, besides, you’re at work! You can’t be responsible for honey-do’s if you’re never home. Even better, if you work all the time, you have a solid reason not to do anything but sleep and play video games when you are home. Nirvana.

Final Thoughts….

There’s no doubt that old-school-old-boys want “workers” to return to the office. Why? To support their “culture” – a culture where (mostly white) dudes are happily at the top of the ladder. It’s nice up there. They have windows, and lots of natural light….

It doesn’t matter what your title is; When you’re home, there’s no reason you can’t start the dishwasher …

Lowly cubical dwellers also know that despite the #Elon, #BobIger #JamieDimon edicts and hoopla, demands all workers return to the office are largely ignored by the executive ranks, and riddled with exceptions for other groups and individuals. Executives never really worked in the office anyway. Many travel, work from home whenever they feel like it and, for the most part, they come and go as they please. What bosses do like is to being surrounded by their buddies and loyal subjects when the DO decide to come in. And, what they really don’t like is that the freedom to come and go – the freedom that was conferred upon them by their status and rank – has been inadvertently (and many feel undeservedly) bestowed upon their subjects!

The move away from the office and into virtual work is yet another example of precipitous decline of the white male empire. That decline has been facilitated by Internet and VPN technology, and it is continuing with the slow but steady elimination of the symbols of corporate hierarchy and status: The corner office, the assistant, the private conference room, the preferred parking, the jet. These have been replaced with an avatar and a disembodied voice, which forces everyone to focus on what is said and done – not the rank, title, height, weight, clothing, desk or any other distraction.

May be it’s not such a bad thing.

Copyright 2023 Pierce/Wharton Research, LLC. All rights reserved. No part of this post shall be reproduced without permission.

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W2? 1099? C2C?

One of the questions I get asked most often from those considering contract work is whether to work as a W2 contractor or should they consider 1099, or incorporate so they can bill corp-to-corp (C2C).  The answer is – it depends – and it mostly depends on you.

If you are going to contract long term, or you have a particular expertise that you sell, eventually you will move from working as a W2 Contract Employee to being Independent / Incorporated – in other words: A vendor.  These are not mutually exclusive, BTW. When you’re a vendor that means that you could be billing on a 1099 basis or you could be incorporated and use your corporation to bill the agent or client corp-to-corp (C2C). 

When you choose to bill as an independent vendor that means you are viewed as a business, which is a separate legal entity, and completely different from being an employee. When you’re independent, you have all the privileges and responsibilities of a business owner.

“Responsibilities” is the key word here:  If you choose either 1099 or C2C, you will take home a lot more money than you would as a W2 Employee. But if you are not prepared to handle the responsibilities (and risks) of being self-employed, mo’ money mo’ problems.

Whether you are a sole proprietor, in a partnership, or a principal of a corporation, if you are deriving “Schedule C” income, you are responsible for obtaining business licenses, paying business taxes, keeping accurate records, maintaining general liability, and other types of insurance.  If you’re working as a vendor, you may need to purchase and maintain your own tools, equipment, prepare your own contracts, invoices, and track your payables and receivables. Some clients will provide you a 1099 form for taxes; some do not. Sometimes they’re accurate; sometimes not.  Regardless, you are responsible for an audit trail of your gross receipts and expenses, maintaining bank records, and insuring you adhere to all applicable laws. If there is a discrepancy, you need to be prepared to prove everything.

When you are independent or incorporated, you are a vendor. Instead of a job description, you have a statement of work (SOW). The SOW details what you are to accomplish for the client, a time frame for doing so, and what are the payment and acceptance criteria. SOWs can be very general or very specific. There’s no “standard” SOW. Its specificity varies by the complexity of the project and your relationship with the client.

When you are a vendor, the client cannot dictate the manner and means by which you complete your work.  So, if you wanted to assembly your PB&J in a different order in your kitchen that is your prerogative. The client can only accept or reject the work.

Most importantly, if you are billing as independent or incorporated, you do NOT have the same legal protections as you would if you were a W2 contract-employee. You are a vendor, just like the Crystal Geyser guy. If the customer decides to go with Sparkletts, Crystal Geyser doesn’t file for unemployment. If the delivery truck gets stolen, Crystal Geyser doesn’t ask the customer to buy them a new one. Similarly, like the Crystal Geyser vendor, you also have an implied warranty with your service.  If something goes wrong, your service is defective, you drop your Pepsi on someone’s laptop, it’s not a “My bad!” you are financially liable for that expense.  If your work is on the critical path of a project, be sure to talk to an insurance agent and your client to ensure you have the coverage you need.  If you own things – like a house – and want to keep it, you’ll need to incorporate.

You want to run a business?  Make big bucks?  We live in a litigious society. Don’t take chances.

Unlike W2 workers, your client will want to pay you every 30 days just like they pay all their other bills. But, what if your client doesn’t pay you in 30 days? What if they pay you in 45 days or 60 days?  Or not at all? How long will you keep working without being paid?  A week?  A month?  Two months? How will you collect if they don’t pay? (A big concern in today’s “virtual” world.) What if they claim your work is defective, and they refuse to pay?   Similarly, who pays for your travel expenses? Are you putting them on your own credit card and waiting for client to reimburse? What if they don’t reimburse you or take months to do so? I’ve worked in big corporate offices my entire life: You’d be amazed how many rich companies don’t pay their bills on time.

If you suffer from people pleasing, can’t say no, can’t write a contract, could never see yourself suing someone, or all this sounds just too unpleasant for you, don’t waste time billing as an independent or incorporated contractor. I’ve listened to lots of stories (mostly from women I’m sorry to say) who thought they could handle this kind of relationship, and ended up being taken advantage of by someone who was really, really going to pay them as soon as <somecrisis> passed.

There’s a certain amount of cold, hard, capitalism required when you truly work for yourself. I can assure you that no one is more unpleasant than someone who owes you money. You can’t put up with excuses. Other people’s bills and emergencies and sick kids are NOT your problem. Always track your hours and tasks; always keep copies of your work.  Be prepared to withhold work until you are paid for it.  Be prepared to walk off the job if you’re not paid on time, and be prepared to sue. 

If you have a tough time sticking up for yourself, can’t handle people’s anger, or you’re afraid of being “mean,” being a vendor is absolutely not for you.

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Excerpted from: The Temp Job: A Survival Guide for the Contingent Worker. Copyright 2021. Pierce/Wharton Research, LLC.  All rights reserved.  No part of this post shall be reproduced without permission. info@piercewharton.com.

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Four Reasons People Just Don’t Want to Work (for YOU!)

Employer’s are facing a long-overdue reckoning, and like all reckonings, rather than reflect inward, the focus for many has been external. They’re angry at their inability to control events, and blame others for their predicament.

The blame du jour: Lazy people, who don’t want to work…

……for you.

(Never has a prepositional phrase been more important!)

Here’s four reasons why …..

You’re Disinterested and Indifferent

Consider a job applicant who is bored, disinterested, and going-through-the-motions in the interview. Even worse, what if the applicant were rude, curt, or clearly not listening? Would you hire them? Of course not.

Employers are being interviewed by labor, and they’re blowing it because many of your hiring managers simply do not know how to behave in an interview. They’re rude, disinterested, and entitled. As a result, people just don’t want to work for you. Do you blame them?

You Took Too Long

You’re bored, disinterested, and then call me three weeks (three months!) later and say now you’ve decided to hire me, and I need to call you back right away….yeah, right.

The days of “keeping your resume on file…” went out with the Selectric typewriter. It doesn’t work that way. (It really never worked that way.)

A tight labor market is like a tight housing market. Be prepared to act quickly, compromise, and pay over asking. If you can’t do that, stay out of the market until you’re serious about buying.

You Came in Under my Minimum

Too many employers tell you they can pay your asking price but really have no intention of doing so. Similar to the housing market, the idea is that once the applicants’ commit to the hiring process, they will become so “invested” in closing the deal, that they will capitulate on their original ask for compensation.

This is not the market in which to call people’s salary “bluff.”

If I tell you that I’m seeking $45/hr, you drag me through weeks of interviews only to offer me $43/hr (wink), I’m not amused or impressed with your negotiation savvy, I’m pissed.

Result: I ghost you. I tell all my friends what an asshole you are, and (possibly) post a negative Glassdoor review – permanently damaging your brand. All for the bargain price of $2 an hour. Well done.

You’re Too Far Away

If you’re in a business where I can’t work virtually, the time and distance of my commute may make any job – regardless of compensation – difficult to fill. Restaurants in expensive urban areas, or hard-to-get-to resort communities have the additional challenge of the high cost of living making it unlikely any of the help would be housed in the immediate vicinity.

Consider a commute bonus, or other ways to mitigate that expense for your employees. Otherwise, you’re going to be short-staffed, and the staff you do have will be overworked making them much more likely to quit.

Finally…

This labor shortage didn’t just happen – it’s been coming for decades – the perfect storm of Covid, bad corporate behavior, retirement/death, and ubiquitous social media has weakened the stool upon which capitalism has balanced for decades.

Historically, businesses never worried about competing against one another for talent. Now that they must complete, many simply do not know how.

If you’re still clinging to the notion that the tight labor market is about lazy millennials or enhanced unemployment benefits, and any minute we’re going to “go back” to the way it was, you’re flat-out wrong. Our world, has fundamentally changed, and if there’s one thing we know about change is that it never changes back!

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If you enjoyed this article, check out some of my my posts and podcasts on employment, interviewing, and the contingent job market. Thanks for reading!

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Copyright 2021 Pierce/Wharton Research, LLC. All rights reserved. No part of this post shall be reproduced without permission.

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Phishing for Employment Docs

Of course, you would never provide a telemarketer or Nigerian Prince your passport, credit card, or banking information. Those we know. But what if it were a Zoom call, and then you were offered a great job? How much diligence would you do before you turned over your ID, SSN, DOB, and a whole bunch of other personal financial info?

Phishers are using Video

Here’s how it works: You are a high-income individual. You are contacted by a head hunter and asked to interview for a position at a desirable, well-known corporation. The video interview goes well, and a day or two after the call, you receive a verbal offer (via the agent or “implementation partner”) and a request to start ASAP. Congratulations! So happy for you!!  Now, please provide passport, social security, bank account, DOB so they can expedite your offer letter. You never hear from them again.

Signs of a Phisher

  • There’s a HUGE rush for you to start; they need your info ASAP
  • Everything is verbal. You email, they call. You ask for docs, they call.
  • They want a “deposit” for your equipment, a credit card is fine…what’s the security code?
  • Staffing or “implementation partner” has a thin website. No corporate officers, no street address, no phone numbers, no contact information.
  • You’re not 100% sure to whom you report.
  • Offer, contract, or SOW is coming soon. When it does, it looks like it was put together by a 3-year old.

Trust Your Gut

In all cons, the mark inevitably says, “I knew something was wrong..…” Closely followed by, “But, everyone was SO nice!”

The con is counting on your want of the job. Stay focused. Even if its a dream job (and they always are), if something seems off, don’t ignore your Spidee-sense! Cons are charming and charismatic; that’s how they gain your CONfidence !

Remember: Just because there’s a person on video asking you questions that doesn’t mean they are who they say they are. Anyone can ask a question, and far too many interviews are completely one-sided! 

Cons choose common names, so they’re hard to Google. Others Catfish legitimate LinkedIn profiles, especially if they lack profile pictures. Did the “client” vid-in or not? Do you have legitimate contact information?  Multiple email domains with multiple parties? Offshore? If so, you have reason to be concerned.

Do Your Diligence

Before you turn over your ID and financial information to a staffing agent or prospective employer, be sure that you’ve done your diligence!  You have a real contract, employee handbook, and benefit package.  Ensure you understand who owns the company, where they are physically located, and who, exactly, is responsible for paying you.  If you have any concerns, be sure to contact your prospective manager or client contact. Get all your questions answered – in writing – before you turn over any of your personal information.

Say Nothing

Once you’ve discovered the con, cut-off all contact, and resist the urge to call them out on it! They will only assure you that you are mistaken, and details you impart about how you caught on, what they did wrong, where they were sloppy, will only help them to improve their process.  Check your ego. Click delete. Select Block. And, keep your brilliance to yourself!

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If you enjoyed this article, check out some my posts and podcasts on employment, interviewing, and the contingent job market. Thanks for reading!

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Copyright 2021 Pierce/Wharton Research, LLC. All rights reserved. No part of this post shall be reproduced without permission.

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Three Reasons Your Agile Practice Isn’t Agile

A strong Agile practice is a three-legged stool comprised of the Product Owner (the What), the Team (the How), and the Scrum Master (the Process). These roles are equal to and independent of one another.

In other words, there is no hierarchy in an Agile team; there are workstreams, and workstream owners. No workstream is above or below more significant or more important than another. Each has its own purpose, its own outputs, and its own responsibilities.

In a high-performing Agile team, there are no bosses – there are only teammates.

If your three-legged Agile stool is wobbling, consider these most common root-causes of poor performing Agile teams:

The Tyrant or Timid Scrum Master

No position is as misunderstood in the Agile practice as the scrum master. I often ask prospective clients why they’re hiring a scrum master (as opposed to a project manager or business analyst), and I’m no longer surprised that most cannot tell me why, or what, exactly, the role is responsible for (except for the events) or what the differences are among the PM, BA, and scrum master roles.

The most common answer is, “A scrum master is a project manager, except for Agile.” Dead wrong.

The scrum master owns the PROCESS. He does not determine what is built (that is the role of the PO), nor how to build it (that is the role of the team). The scrum master ensures a consistent, transparent process (timekeeping, utilization, governance, metrics.) He ensures accountability, keeping people honest (in other words, calling them out on their shit.) He demonstrates leadership through questions, coaching, by defining workstreams, R&Rs, working agreements, DOD, DOR, and using the word, “No.” It’s less about servant and more about leadership.

The scrum master is the “Servant Leader” of the team. Unfortunately, too many people stop at the word “servant,” especially if the scrum master is female or an immigrant.

As a scrum master, it’s not my role to “whip” the team. I’m an advocate and a coach. In some ways, I’m unconcerned about the project’s “success” or “value.” That’s not my lane. I trust that the PO has determined/documented the value of the effort, the success criteria, and KPIs. If that’s not done, I’ll ensure it is done, or I’ll escalate it as a risk. I might think the project is a huge waste of money. That’s not my call as scrum master.

The leadership of the scrum master is easily corrupted if the scrum master has a direct report relationship to any of the other parties in the team. It’s also corrupted if the organization hires a scrum master when it really needs a product owner, an analyst, or an architect — this is all too common with “Purple Squirrel” hiring managers in many tech organizations.

The Faux PO

While letting the team continuously iterate some BPOs “mind dump,” is a common ailment, even more debilitating is the old-school, top-down manager posing as a Faux PO.

The Faux PO is common in the Ghost Ship Agile practice, which means that from a distance the Agile Ship seems like it’s sailing along, but when you look a more closely, you see no one is on board.

The Faux PO tells you that the jury is still out on this Agile fad. He’s not convinced it works because the team is too incompetent to complete anything on time, which is why they need to be managed closely. Meanwhile: No metrics. No Dashboards, No backlog. No working agreements. No Definition of Ready (DOR). No Definition of Done (DOD). No separation of development from analysis. No Requirements. The Faux PO isn’t going to sully himself documenting requirements in JIRA. Plueeze….clerical tasks are for women and subordinates who can take notes while they hold court.

The Faux PO’s unwillingness to actually DO the work of being a bona fide product owner doesn’t mean that work goes away. Instead, like a house without front steps, everyone has to find a way around the Faux POs lack of output. What choice is there? Calling your boss out for being lazy AF isn’t really an option…

The Faux PO excuse is that he is much too important for events and deadlines. Because of this, there’s no cadence to the work. The Scrum Master/ Servant arranges a ton of last-minute, ad hoc brain storming or demo sessions to accommodate the Faux PO and other people with titles and opinions. At these meetings, the Faux PO talks at, past, and through the team, (who sit on mute, and stopped offering opinions long ago). No need for backlog refinement or DOR. The Faux PO tells the team exactly what to do, who to call, what to say. If they have questions, they can email the Faux PO for more detailed direction on how to accomplish their work.

But, I Like Being the Boss!

When I’ve suggested to Faux POs that the direct report relationship they have with the team is corrupting their Agile Practice, the Faux PO is incredulous! Don’t be ridiculous! They are natural leaders and visionaries! Their leadership is what is keeping this boat afloat. The team would be rudderless without them.

If everyone on your Agile team reports to you – you’re not an Agile team!

I’ve asked Faux POs if they would give up their direct reports and move their “vision” to another team as a loose-matrix product owner. They won’t. I’ve also asked if they would hire a bona fide product owner, who doesn’t report to them, and can make decisions independently. They won’t do that either.

So, I think we know what the deal is here – it’s called control – and if managers and executives are dictating the manner and methods by which work is accomplished by the team, then you’re not an Agile Shop – you’re old-school, command-control, boss-helper, my-way-or-the-highway shop, and it’s probably not going to change. Why? Maintaining a status quo (especially when you’re benefiting from it) is easier than change. Being a boss is easier than being a teammate. Hierarchy is easier than egalitarianism.

Bosses like being the boss. It’s awesome having people do what they’re told, when they’re told, without pushback or question. If only their wife and kids were like that…..

The Faux PO is a very common root-cause of Agile failure. In a risk report, it would fall under “executive-level support.” or “Unwillingness to adopt new systems and processes.” If there is an unwillingness to acknowledge these entitled behaviors or modify organizational structures, no Agile transformation can be had.

Architect as King

The Architect as King organization is really the worst of all possible Agile worlds. The team builds whatever it wants – the business can take it or leave it. There are no repercussions for crappy work, technical debt, or missed deadlines. UAT? What’s that? Open a ticket with the service desk….

The entire team, scrum master included, reports to an invincible lead, architect, or engineer, who doesn’t GAF about your process or product or metrics. You don’t like it? Do it yourself! Oh, you can’t? Oh, well. Scrum Master? Product Owner? Plueeze, The team reports to me, and your name is NOT on my performance review. Don’t piss me off, or I’ll quit, and then you’ll really be screwed….

From a product, user, and process perspective, the Architect as King organization is DOA for an Agile practice. Hire a technical writer to document the build. Anything else is a waste of money.

As amazing as this sounds, Architect as King is pretty common – especially in private or mid-cap companies. And, when I encounter a dev lead or principal architect who has been with one of these organizations since Christ was a baby, I know that this will be dev-driven development, an inelegant user experience, a shit-ton of technical debt, and I also know that nothing going to change until the king is deposed and replaced.

Final Thoughts….

It’s called an Agile practice, not an Agile perfect, and just like anything that requires practice, you’re going to suck at it the first 1000x you try to do it. But, you WILL get better. Things are never perfect, there’s always more to do. That’s why we have retros. Over time, you’ll begin to see how and why one team is better than another, why a coach is different from an owner, and how having a player in the wrong position or a hot-shot who hogs the ball can kill the team and ruin the game.

If you’re in software or tech, you’re going to have to learn to play the Agile game. Learn everything you can about it, and keep practicing. Agile is part of good project management, and good project management is Agile!

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I hope you enjoyed this article, please check out some of my other posts and podcasts on Agile and the contingent job market. Thanks for reading!

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Copyright 2021 Pierce/Wharton Research, LLC. All rights reserved. No part of this post shall be reproduced without permission.

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Four Reasons No One is Responding to Your Job Posts

The job market is on fire. Not only are we experiencing the Great Resignation, we’re in the middle of The Great Reshuffling, which will result in The Great Consolidation. If you’re serious about keeping your doors open, a “post and pray” recruitment strategy isn’t going to cut it. Want to get people in the door? Here’s four reasons no one is responding to your job posts:

Your Application Process

Every job site allows employers to choose a “quick apply” or “one-click-apply” option. Use it. Being user friendly and mobile-friendly is a must. A huge number of people ONLY have internet access through their phone. Any company that is insisting applicants go to their site, set-up an account, (some with multi-factor authentication! Really?!), and then populate several forms (with mandatory fields like month and date of my degrees and jobs), is likely to have very, very few applicants.

Also, if you’re going to use Quick Apply, use Quick Apply! Employers who embed additional questions into their quick apply aren’t clever, they’re disingenuous, and it makes me not want to work for you.

Finally, there isn’t a single recruiter out there who thinks AI screenings are helping your efforts. There’s a reason people went to college! Read the resumes! Most importantly, focus on what the applicant has to offer, not poking holes into their background and creating a checklist of what they don’t have.

Essay Questions

I know it’s super-easy and awesome to have each applicant write an essay on how they would deal with difficult stakeholders, or describing their last project, or even telling you why they want to work for you (why not all of them?) That way, you can review, discuss and critique each response and each candidate at your leisure — you don’t want waste your precious time calling or emailing anyone. Essays are perfect for you…but here’s the problem: It’s all about you, and it smacks of entitlement. Worse, it tells me that you don’t see writing as work, which it is. To do it thoughtfully and well takes (my) time, which is the same as (my) money.

Essays are perfect for you…but here’s the problem: It’s all about you, and it smacks of entitlement.

Essay questions embedded in ‘quick apply’ options are infuriating because you can’t opt out of the question or skip ahead. So, since I can’t opt-out of the question, I close the browser and opt-out of the application. It’s usually too late, though, because they’ve got my email, and I’ll be hit with a ton of notifications reminding me to complete my application (which I don’t).

Interestingly, you’d think it would be the big enterprises, and the highly-coveted employers who insist on the “tell me why I’m so beautiful” essays. Nope. It’s the small shops and public employers who have the most hoops when it comes to applying, and that’s why no one does.

Your JD Lacks Focus

A lot of JDs are a laundry list of nice-to-have experiences intermingled with tasks and requirements. Many applicants – especially women and “freshers” – disqualify themselves because they don’t meet all the requirements. More experienced applicants, note the confusion and disconnect with reality, and pass on applying.

If your JD is a laundry-list of tasks, requirements, and nice-to-haves thrown together in no particular priority, your lack of focus and thoughtfulness is a BIG red flag to any quality applicant.

A good JD should be no longer than a page. It should clearly describe the core responsibilities, and to whom the position reports. Education, credentials are clearly stated, and requirements are listed in order of priority. The Must have Security Clearance line should be at the top of the list of requirements, not the bottom! Don’t use the “Preferred” section to obfuscate real requirements (Mandarin speaking “preferred” when your entire team is in Hong Kong? Stop already!)

Most importantly, stop looking for unicorns and purple squirrels; you are not the prettiest girl at the dance, and your hubris is counterproductive to building a real team. Whenever you hire anyone, you need to be prepared to compromise and change both yourself and your organization based on the talent available in the market. If you don’t want to change…..

Bad Habits

Why are so many employer’s struggling to hire? The answer: Bad habits. Zero training on how and what to hire. Zero training on how to interview. Toxic managers with high-turnover permitted to hire and fire “at will.” With human resources the most important asset a company can have – in 2021 – how could this be?

First, let’s recognize that for the past 100+ years, employers have never had to compete for labor. Sure, they said they wanted to be “attractive,” but that’s not the same as being competitive. We know lack of competition stifles the invisible hand of the market, and the over-supply of labor verses limited jobs has resulted in a ruling class of corporate executives — America’s Royalty — whose every want and need must be accommodated because they are “job creators.”

Historically, businesses never worried about competing against one another for talent. Now that they must complete, many simply do not know how.

Labor, unlike employers, has been forced to be nimble and adaptable. We’re used to fierce competition, no safety net, and changing direction quickly. Workers have had decades of practice and advice on how to compete for work, how to write good resumes, how to answer questions in interviews, and most importantly, how to be a subordinate and compliant worker. What training do employers have in how to hire people and how to be a good employer? None.

Employers need to act quickly and level-up their hiring game. How? Create hiring committees, dump toxic managers, bottom-up your culture, hire professional recruiters and coaches, finance real retention strategies. Most importantly, understand that your interviewers are brand ambassadors, just like your salespeople. They represent The Company, The Culture, and The Brand. A bad interview experience can damage your brand – permanently – and that is not something you can afford in this highly-competitive labor market.

Final Thoughts

This labor shortage didn’t just happen – it’s been coming for decades – the perfect storm of Covid, bad corporate behavior, retirement/death, and this ubiquitous social media has weakened the stool upon which capitalism has balanced for centuries. Covid’s timing could not be more remarkable. It has jolted our attention to the global economy, our reliance upon technology, the importance of essential workers, and a Kafka-esque understanding that we are more than our labor.

No workers = No customers = No business

If you’re still clinging to the notion that the tight labor market is about lazy millennials or enhanced unemployment benefits, and any minute we’re going to “go back” to the way it was, you’re flat-out wrong. Our world, has fundamentally changed, and if there’s one thing we know about change is that it never changes back!

When it comes to sales, businesses understand competition. That same focus and concern must carry over into resource management. If they can’t compete, just like in sales, they will be out maneuvered by those who can.

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If you enjoyed this article, check out some my posts and podcasts on employment, interviewing, and the contingent job market. Thanks for reading!

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Copyright 2021 Pierce/Wharton Research, LLC. All rights reserved. No part of this post shall be reproduced without permission.

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Tight Labor Market is Here to Stay

If you’re clinging to the notion that enhanced unemployment is the reason you can’t hire help, let me be the first to say you will find yourself short-staffed – if not closed – come this time next year. Here’s why….

A LOT of People Died; They’re Not Being Replaced

Covid has cost us more than 600,000 lives, and it’s not over yet. The ripple that those deaths have caused throughout our country and culture hasn’t even been examined never mind calculated. The loss of a parent has enormous repercussions on a family – not just for a few months, but for years. Worse, we’re all getting old. Our crap diets, epidemic of obesity, Type 2 diabetes, and a variety of other “behavioral” and “non-compliant” health issues will contribute to the rapid exit of many from the labor market.

Declining birth rates, along with a declining sperm count, has been a back-burner socio-economic issue for decades. China’s lifted the one child rule. There’s a huge shortage of women in both China and India, and some countries are now encouraging motherhood via subsidies and other programs.

I’m not sure this will make much of a difference in the birthrate, though. Seems that regardless of incentive, wealth or opportunity, women choose to have fewer or no children, and that trend will likely continue. Maybe motherhood isn’t the greatest job a woman can have.

Wealth Transfer

You think millennials are spoiled and entitled now? Wait until they inherit a ton of money….

We are on the cusp of the greatest generational transfer of wealth in our nation’s history. As Baby Boomers die, they are transferring their wealth — not necessarily to their children — but often to their grandchildren. According to the WSJ, the average inheritance is a little over $200K. That is a life-changing amount.

Money gives you freedom. Money gives you options. Money gives you the ability to take risks. Money makes it whole lot easier to tell people to fuck-off.

Business owners take heed: If you’re difficult to work for and/or your business depends on a never-ending supply of people who are poor, desperate, or have few economic options, you may need to reconsider your business model.

Retirement

The tail end of the Baby-Boom generation (those born in the late 1950s early 1960s depending on who’s talkin’), is nearing retirement age, which can range from 62-72, or earlier, depending on how much money you want to pull from Social Security and your other accounts.

It’s estimated that Covid “forced” about 2 million people into retirement. Some could be enticed back into the job market, but most of these are permanent life changes – they will never return to the labor market.

Money managers are quick to point out that people can’t “afford” to retire, and you are likely to outlive your money, but that’s mostly their commissions’ talkin’. You’d be surprised how little you need to live on when you only have two old people to feed, and all your stuff is paid for.

Nevertheless, depending on the nature of the work and people’s health, some of boomers, of course, will continue to work. However, those are more likely to be at the very top-end or very bottom-end of the income spectrum. The rest of us will sell our homes, move to someplace cheaper, and be done with working for “the man” every night and day.

Small City Employers are at a Disadvantage

Gone are the days that a company in Des Moines or Charlotte or Salt Lake could pay less than a company in San Francisco or New York. If your profession is in demand, and you can work virtually, no longer does your compensation and career path need to be stifled because you want to live in a smaller city.

This is the start of a golden age for labor. Companies that pay more and support virtual workers will suck talent out of smaller markets – to the detriment of those companies headquarter or office-ed there.

Regional pay scales are on the shelf next to the fax machine. No one cares where your office is. If you want IT talent, other highly skilled, gold-collar workers, you’re going to need to level-up your compensation, or you are not going to be able to compete. And, if you can’t compete? You’re not going to be in business.

The Commute? That’s Comin’ Outta YOUR End!

Jamie Dimon, a champion of capitalism (until he’s short on cash, then he’s first in line at The Fed), has “demanded’ JPMorgan/Chase workers return to on-site work and Jamie’s “culture,” adding that if people didn’t like the commute, that’s “too bad.”

Maybe Jamie isn’t good at math? Let’s say you have a 45-minute drive to work, and are on-site five days a week (eight hours working, one hour unpaid lunch), that’s 52.5 hours a week “dedicated” to work – minimum. Men, add in an additional hour of “prep” time; women 1.5 hours of prep each day and now you’re up to 78.75. In other words, almost double the amount of time compared to the hours you are paid for….!!

So, if you’re making $35/hr your real hourly is closer to $17/hr – before taxes and before other expenses and lost opportunity costs, like your side hustle or education. That’s why the poor stay poor. And, that’s also why I’m not going to drive to your office, or commute to a restaurant, or hire a sitter (if I could find one). I think I’ll just stay home, cook from scratch, take on-line classes, and look for job where I contribute 40 hours and get paid for 40 hours. That’s just a smart business decision. It doesn’t make me an entitled ass-hole who doesn’t want to work.

It’s not about the commute — it’s about being paid for all my time. I’m contributing time (which, I believe, is the same as money), to enhance Jamie’s “culture” – whatever metric that is. However, all that good culture money is coming out of my end, not Jamie’s. He’s all up for the “free” culture, but I’ve yet to hear him say that his culture is important enough that he’s going to part-with-some-cash for it.

I believe in karma (and capitalism), so I feel confident Jamie and his other banking buddies will receive a big message about onsite work (probably when one of their cloud APIs goes down in a smoldering heap of technical debt). At that moment, they will see that labor isn’t as forgiving as The Fed. I think Jamie will also learn that he’s not a home-town hero, a lot of employers are more than willing to hire talent from Ohio.

Finally….

Here’s a universal truth: When you’re rich, life doesn’t change very quickly or very radically. For the affluent, things roll-along, even in the worst of times. Because many wealthy capitalists haven’t personally “felt” the change Covid has brought to the labor market, they don’t think that it’s real. They don’t understand this “entitlement” of labor, or that the world is fundamentally different now, and why we just can’t order people to “go back” to our good-old pre-Covid cubical culture.

Even before Covid, the rise of gold-collar, knowledge workers was beginning to reverse the employer advantage in competitive labor markets like tech and healthcare. Crisis, as a cultural accelerant, has firmly flipped the advantage to labor – and economists predict it’s going to stay that way for a l-o-n-g time….

Labor has had decades of opportunity and advice on how to be a good employee. That cannot be said of employers. Most employers are spoiled, entitled, and have a long history of a “Doritos” style of talent management (“They’re just people, we’ll get more…”). And because so many employers historically have shown zero interest in being a good employer, now they can’t seem to hire anybody.

The tight labor market isn’t about lazy millennials or enhanced unemployment benefits. Things have changed, even if they haven’t changed for you personally. Employers need to accept reality, and level-up their hiring game or they’re going to be out maneuvered by those who will.

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If you enjoyed this article, check out some of my other posts and podcasts on employment, interviewing, and the contingent job market.

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Copyright 2021 Pierce/Wharton Research, LLC. All rights reserved. No part of this post shall be reproduced without permission.

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