Episode 24

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Published on:

4th Apr 2024

Unleashing the Power of People Management: Transforming Compliance into Superfans with Silvia Hernandes

Episode 24 with Frederick Dudek (Freddy D)

Unleashing the Power of People Management: Transforming Compliance into Superfans with Silvia Hernandes

In this Business Superfans Podcast episode, Freddy D hosts Silvia Hernandez from Lean HR Partners on the Business Superfan Show. They delve into the crucial role of HR in small businesses, with a focus on compliance, employee retention, and the financial and cultural impacts of turnover. Silvia underscores the importance of understanding individual motivations to tailor effective employee incentives, while Freddy D points out the significance of personalized recognition. They champion HR strategies that address the varied needs of employees, nurturing a supportive culture that cultivates “superfans” within the company. The conversation also covers the necessity of aligning personalities with job roles and includes an offer for a complimentary behavioral assessment, paving the way for subsequent episodes on the influence of personality in the workplace.

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Transcript
Freddy D:

Hello, Sylvia Hernandez with Lean HR Partners.

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Welcome to the Business Super Fan Show.

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Silvia Hernandes: Thank you.

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Thank you.

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It's a pleasure to be here, Freddie.

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Freddy D: I'm excited

to have you as a guest.

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So tell us a little bit about

your story, and how you got

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to, starting Lean HR Partners.

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That you're really doing?

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So let's go into that whole story.

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Silvia Hernandes: Okay, so a

brief a little bit about me.

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So my human resources professional 25

plus years in there not to tell my age.

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But 25 something years.

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I'm originally from Brazil, so

my 1st degree is in psychology.

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So I had an opportunity to get acquainted

with industrial relations as we call

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at that time, not only human resources,

but and then I got a passion for that.

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So, I knew in graduation that

I didn't want to do clinic or

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hospital or anything like that.

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So the passion for HR came right there.

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So I did my residency as I say.

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In, in, in hr and then

everything started from there.

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So after graduating I had to, I had a

passion also for the English language.

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As you can see, I have an accent here.

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So, I wanted to learn English

properly, so I moved to England and

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I spent two years there trying to

get the language under the belt.

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Came back to Brazil and then really.

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He started career there in HR.

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So since then, it's always

fortune 500 organizations.

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I worked for two chemicals food

companies, government, automotive.

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And also aerospace to aerospace companies.

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So moved to the U S 22 years

ago, continue my career here.

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And then lucky me, I reached the top.

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I mean, the goal was to be

the chief human resources.

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Officer for organization.

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I had that title twice in my career,

but then got to a point that I said, you

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know what, I'm going to be on my own.

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I know enough now that I can

advise others and make an

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impact to a small organization.

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So I came from big organizations where

is it's a little bit more challenging to

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make an impact because there's so many

people, so much money That the creativity

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gets a little non existent sometimes.

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So helping small businesses make

me creative in actually exercise

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my expertise to help the business.

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So that's how Lean Human

Resources Partners was created.

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It is really the passion for

HR specifically and help these

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small ones to grow and hit the

strategy and then be successful.

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That's how it was born.

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Freddy D: Okay.

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Excellent.

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Because yeah, a lot of small

businesses don't realize how

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important HR is to the business.

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And do you see a lot of companies

where they You know, they bypass

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having an HR person because, it's,

there may be a six person company

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and they don't think it's important.

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But the reality is, it's very important

because, they may be in violations

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of some, local laws and governmental

laws that they don't even know about.

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And, you have a disgruntled

employee that knows, about some

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of those regulations and laws.

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And now you have a problem on your hands.

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Silvia Hernandes: Absolutely.

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I want to divide HR in two big blocks.

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One of them, as you said, has to

do with compliance, and compliance

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is the boring, dry aspect of HR,

which is absolutely necessary.

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So you cannot go further having

employees at your organization

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without talking about compliance.

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I want to say compliance slash legal.

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At some point, I think it's still today,

HR is very linked to the legal matters

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of employment law, but the other fun

part, it is really the people, right?

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We used to say that HR is it is

the department of the people.

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I continue to say that it is, but

there is the boring part as well.

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So that's why there are two two, the

two portions that you were talking

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about really impacts the bottom line.

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Of the organization, if it's not

looked properly, compliance is

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specifically a lawsuit, for example,

can cost you millions of dollars,

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but also employee retention.

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Freddy D: Let's really dive into

employee retention because I don't

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think a lot of small businesses

realize the cost that it really.

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Is costing them for having

continual employee turnover.

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Silvia Hernandes: Absolutely.

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Let me give you some numbers on that.

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It's just a hypothetical, but

actually real imagine a position, any

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position where the salary is 50 K.

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If this position is open for 30

days, at least you already, the

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company already spent 17, 000.

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How is that?

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So how the calculation happens, right?

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So we talk about 1st of all if

the position is open, and let's

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say, is not addition to staff.

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It is you lose an employee.

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So, you're losing money right off the

bat, because somebody is doing that job.

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So, unfortunately, or fortunately,

we don't have machines that

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replace the human being.

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So, somebody else is working

overtime in order to get that done.

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So the job done.

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So it starts there.

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Then you have the cost for advertising.

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You have costs for the

recruiting interviews.

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Tests that needs to be done,

assessment that needs to be done.

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And then you hire that person.

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So very unlikely, this person will

come in less than 30 days because

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the process doesn't work that fast.

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Freddy D: Right.

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Silvia Hernandes: And this

is internal processes, right?

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So you were spending

money right there too.

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So between advertisement and recruiting

and the person comes, there is onboarding.

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So this person is not going to.

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Produce results at least in 90

days because there is training.

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Well, not only there is software

that trains the person, but also you

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need to take the person around, take

some time from the hiring manager

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calendar, and then anybody else that

is training this person, this is

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hourly rate for that particular salary.

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So imagine that a manager earns

a hundred K, and trains the

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person for two days school.

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Well, you have to count to that too.

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Freddy D: Sure.

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Silvia Hernandes: And it

is exponential, right?

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So by the time you put all those costs,

the hypothesis is true is 17, 000.

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For a 50k salary now,

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Freddy D: that's just to get started

then you've got to calculate in the

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lack of productivity from those people

that are doing the training because they

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can't be doing their job necessarily.

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So, because they've got to

spend time turning somebody new.

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Or they're doing their job, but

they're not fully on their job.

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So you got someone else that's helping

with that person's job while the

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training is, and it starts to snowball

into a quite expensive aspect of it.

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And, and then if that person leaves,

it's a, you got to start all over again.

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And more importantly, that

just starts creating a negative

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culture in the company.

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And you're not going to create

super fans of those employees having

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to do this on a continual basis.

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Silvia Hernandes: Exactly right.

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It also impacts the delivery.

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Imagine that this person that is

covering for the employee that left is

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not really the forte of that person.

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So, not only impacts the results of

how you are delivering that particular

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job, but also is costing you money, and

over time, gets the person exhausted,

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and to your words, not a superfan.

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Freddy D: Yeah.

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Silvia Hernandes: Not a superfan.

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Freddy D: They start resenting the

company because more importantly,

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when you see repeated turnover in an

organization, it demoralizes the team

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because then they start realizing that

management is really a problem and

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doesn't understand it, what's going on.

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Yeah.

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And so all of a sudden you have.

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Not a positive energized workforce.

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You have a workforce that's there

just because they need the paycheck

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and they're not, and that's it.

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They're just there to collect the

paycheck and now their mindset, I'm

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just going to do what I need to do so

that I don't get fired and that's it.

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And unfortunately now you've got

productivity that takes a hit as well.

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Silvia Hernandes: Yeah, I want to

say that I think one of the biggest

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discovery in my entire career

in HR has to do with one word.

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And this word is motivation.

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In studying human being behavior.

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And then I love that portion of my career.

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It is for me, it comes down to

really what motivates an individual.

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Of course, we are talking about a

bunch of people in an organization.

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So you cannot.

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motivate everybody to the full

extent happy campers is good to have,

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but full happiness does not exist.

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So once you touch the motivation

of a person to stay or to go you're

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good to go because imagine that you

do an engagement survey and then you

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meet the person on the motivation or

things that are important for them.

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At least midway.

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I'm gathering and I gathered

already that this is 1 of the most

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powerful tools to retain employee.

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Because many things are important

to people, but not to others.

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But when they understand that I can

meet you halfway, it is really a good

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retention way to keep people doing

what they're doing in an organization.

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Freddy D: Oh, absolutely.

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One of my quotes in my book is people

will crawl through broken glass

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for appreciation and recognition.

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Silvia Hernandes: That's true.

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I agree.

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That's true.

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Freddy D: And so you talk about

motivation, and that's where,

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simply giving acknowledging somebody

and recognizing their, that their

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extra effort on something that's,

that creates that motivation.

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And when you recognize somebody, one

of the things I talk about is, when you

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recognize an individual one on one, if

I turn around and says, Hey, Sylvia,

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thanks a lot for this particular project,

I really appreciate your extra effort.

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Well, you feel good, but now if I turn

around and says, Hey, everybody, I want

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to take a moment to recognize Sylvia

because she killed it on this particular

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project and because of her efforts,

we succeeded in this particular thing.

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Now I've got the whole team feeling

energized and you feel like a rock star.

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Silvia Hernandes: Right.

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Well, one, one comment in the

motivation Freddie is motivation

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is not the same for everybody.

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Many people are motivated by money.

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Many people are not.

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Many people are motivated by thank you

for your awesome work on this project.

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Some people are so shy that they

don't want to hear about it.

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So there are different ways.

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To motivate people, right?

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So and my thing is let's discover what

is important for each one of them That's

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why we get into the more tailored things

It gets tricky to motivate everybody

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on what they have specifically But

at least you hear them because the

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motivation is different for everybody.

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Freddy D: I totally agree.

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Silvia Hernandes: Give me a day

off and I will be very happy.

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Well give a gift card You To Walmart,

to other person, and they will be

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very happy, but not with the day off.

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So, we need to see what

really ticks people.

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Freddy D: That's a really good

point, because that's something

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I do talk about in my book.

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And is that you have to be able

to accommodate people in, like you

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just said, what motivates them.

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So, some people may say, okay.

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I'll take less of a salary, but

because I need, I want to go to

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school and continue my education.

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And so I want to have some time off.

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And so I don't want to

work, so many hours.

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I need to, I want to go to school.

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Someone else might say, okay, I

need to go home because my kids come

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from school and I don't want to have

them by themselves and et cetera.

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So businesses that.

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can accommodate and create flex work

schedules for their employees or

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whatever it is, as you're saying, the

motivation for people is very different.

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If they can be flexible in their

business model, now they're going to

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start creating super fans of their

employees because they're going to

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say, man, this is a great company.

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They care about me.

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They allow me to be able to do some things

and that's going to come across when

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they're talking with their customers,

that energy is going to come across.

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Same thing with complementary

business partners.

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They're going to be talking about

with that is, they're going to have,

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you can tell in their tonality.

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Of the conversations that they have

that they enjoy their work and the

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company that they're working for.

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Silvia Hernandes: Absolutely.

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Freddy.

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Absolutely.

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I want to say this.

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If you, if an organization can tailor

what is important for the individuals,

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you absolutely have superfans.

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This is proven for me in

engagement surveys that I did in

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organizations that I worked for.

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It doesn't fail.

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Yeah.

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Freddy D: Yeah.

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Silvia Hernandes: But,

I think what he fails.

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And continue failing, it is organizations

trying to do one thing fits all, let's

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give gift cards to everybody, or let's

give a day vacation to everybody, or

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let's do a Christmas party and everybody

can participate and bring their families.

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Freddy D: Yeah, but what happens if

somebody, somebody isn't Christian

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and someone is Jewish, or someone

is Muslim, and you're throwing the

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Christmas party, but now the other

people feel slated because, well, you

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didn't, you didn't recognize Ramadan.

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So, that blows up.

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Silvia Hernandes: Yeah, it doesn't work.

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So I can say that requires a little

bit more time for the organization, for

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the leadership team to really try to

accommodate not every single person,

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but at least the majority need to where

the need is exactly where the need is.

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I need to leave every Wednesday

at two o'clock because my kid.

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Is in the competition of the baseball

game, and I need to be there.

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I want to be there.

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That accommodation.

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It's absolutely key.

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You never lose an employee like that.

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I'll never say never, but it's more

difficult to lose an employee when you

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accommodate what is important for them.

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Freddy D: Oh, sure, because now that

parent, okay, is at their kid's baseball

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game, as you say and all the other

parents, because usually you'll be,

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maybe there'll be one parent, and now

you've got mom and dad there because,

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mom was staying home or whatever the

case may be, or she's working and, but

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she works a different shift, but then

the fact that, dad is there, and let's

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say it's a boy playing baseball or a

girl playing softball, doesn't matter,

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the bottom line is all the other parents

are going to go, wow, how, that, and

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then that person turns around and says,

Oh yeah, the company I've got is great.

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And again, they're being the

superfan promoting that company.

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And that's that you can't buy that.

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And that's goodwill.

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Is, it's a superfan on

steroids in a sense, that's

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why I call him brand advocate.

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They're, most people call

them brand advocates.

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I call them business superfans,

which I think is brand advocates

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on steroids, and that is profound.

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Silvia Hernandes: It is.

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It is.

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I cannot stress enough how.

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that is true and actually I, and

I still to see, I, I consult with

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small businesses in HR today and

this is my, I want to say my biggest

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advice to them on the retention.

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Let's see what is important for the

organization and work from there.

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And it's been reshaping actually

how leaders are thinking, because

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it's still Freddie, I been in HR for

so long and leading with leaders.

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all my career here, I still think

HR is failing in influencing the

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leaders on how to treat employees.

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It is more, I think the compliance

aspect of things, the dry aspect

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of things is taking more time, more

worry than to keep the employees.

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But when I show them the bottom line

of 1 position open for 30 days and

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not putting emphasis on retention,

I kind of get their attention.

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Because it's the bottom line, right?

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It's 17k for a 50k salary.

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And they said, what?

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Really?

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Yeah, you already spent that money.

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It's passive.

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And you don't know this number

because it's really passive.

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So you need to really open

your eyes, make calculations

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And see what's going on there.

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Freddy D: Yeah, no, absolutely.

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100 percent agree, and, that comes

into play where some HR, I won't say

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HR people, but I'll say that some

organizations have a sterile environment

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where it's just strictly business.

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It's not really, I've worked with

companies where the HR department

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was part of the company and was

helping create an environment.

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And then I've been in organizations

where HR is just this is

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it, and that's how it stays.

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Silvia Hernandes: It's compliance.

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When you say like this and

all it stays, it's compliance.

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Because compliance does not change much.

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So you follow the rule.

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You follow the law.

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To be At less risk per se, right?

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When you deal with people, it's

so dynamic because people are

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different all the way, right?

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So you want to apply the same

treatment to everybody, but at the

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same time you're not doing that.

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Because people require different stuff.

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So, it's not a one That's where

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Freddy D: I've been where the HR

department was basically all about

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compliance and not about anything else.

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Silvia Hernandes: Yeah, that's

the bad thing that we get because

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it's all about papers, all about

legal is all about compliance.

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That's why I kind of

split into two buckets.

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One thing is compliance is boring.

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The other thing is really dealing

with the people in how they hit the

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bottom line to the good and to the bad.

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I mean, turnover is a bad one.

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But if a person stays is the tenor

and it's the company philosophy to

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provide a tenor and collect the results.

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I mean, it's money is

revenue, is people happy.

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They are advocates.

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They are superfans.

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The sales is going to bloom.

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Freddy D: Yeah, absolutely.

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Silvia Hernandes: There's all good impact.

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Freddy D: Right, so something that a

business should be looking for is if

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they're outsourcing an agency, they

want to make sure that the agency, like

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yourself, looks at it from, okay, Because

I really like the two bucket idea, is

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okay, we got compliance, we get that

stuff out of the way, now we focus on

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all the other aspects that creates the

environment within the company, creates

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the motivation and evolves into a culture.

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Where you've got people that stay

in companies 5, 10, 15 years because

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they love where they're working and

they're all their family and friends

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know about the company because

they're promoting it as superfans.

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Silvia Hernandes: Correct.

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Well, one notes to the 15, 20 years

in the company, we know that it's

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very rare that happens nowadays

because the environment changed.

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The world changed because

there's so many components that

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makes the generation, right?

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It's different that impacts

a person to stay or to go.

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We don't see more, I want to say,

10, 15 years in the companies

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anymore, at least for now, where we

live today, but it's still, if you

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can keep somebody for a number of

years, that it's important for the

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organization for you to deliver results.

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Not only for the organization,

but for the individual as well.

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I'm growing my career.

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I'm learning something.

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I'm contributing to things.

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It is already a win situation.

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Right.

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Freddy D: Yeah, absolutely.

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Absolutely.

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Very good point.

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Yeah, because.

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It's a, we're in a more,

more dynamic world.

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I still kind of think, cause I still

know some people that have worked at

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their companies for, 10, 15 years and

they're still working, but you're right.

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That's becomes, that's more of the

exception versus, you're right.

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That's more the exception

than the reality.

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Silvia Hernandes: Yeah.

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Well, it doesn't mean that we

cannot go back to that model again,

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because there's so many components,

things are changing so fast and

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people react in a different matter.

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Right?

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So things that were not important

in the past, it can be today.

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You may have, for example, the

millennial generation that.

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Nowadays it's called, I

want to make an impact.

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It's not for everybody.

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Some people wants to stay in a place and

grow their career or not, or just deliver

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a good job, but stay where they are at.

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And we need people like that, we need

going back to the example, right?

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So we need people in an assembly line.

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Sometimes you want people to grow

while they don't want to grow.

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They're happy there.

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So we need to respect that as well.

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Right?

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So promoting is not for everybody.

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So they are happy where

they're at, which is good.

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And then we need all those professionals.

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Freddy D: Absolutely correct.

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Absolutely correct.

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Very important statement there, because

sometimes we promote people, and now

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they're into that position, and they're

not happy in that position because

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they're not comfortable in that position,

and now their productivity goes down,

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and et cetera, and they end up quitting

because they're completely unhappy.

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And the results are what

we've just been talking about.

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Now you've got to start that

whole process all over again.

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And had that person just, respected

their mindset that they were happy

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where they're at, you could have found

somebody else to fill that position.

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Silvia Hernandes: Yeah,

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Freddy D: And you would have

not lost the productivity and

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the money and everything else.

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Silvia Hernandes: Yeah, I'll

go beyond Freddie on that one.

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I think it promoting the wrong

person or the unprepared person.

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It is the worst that

can happen to turnover.

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And why?

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Because we know that more than 80

percent of turnover happens because

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of people, because of behavior

and not because of performance.

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This is out there.

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There are several, studies on this thing.

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So if the supervisor is not prepared

to deal with the people, they quit

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and your turnover starts there.

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But how did you start it?

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Because you put in a supervisory role,

a person that perhaps is doesn't want

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it wants the money, but doesn't want the

job per se, the work, or is not prepared.

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And that happens all the time,

all the time until this day.

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Freddy D: Yeah.

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They're not giving management training.

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They're not given training

to how to deal with people.

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It's like, okay, we put you

into this position, go to work

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and you're like what do I do?

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And then the first situation that comes

up is usually handled incorrectly,

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because they don't know how to handle it.

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And so now you've got a double whammy

because that employee that came up to the

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new supervisor for assistance is unhappy.

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Yeah.

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Supervisor's unhappy because he

knows, or she knows that they.

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Didn't handle it appropriately and

it just now you've just created

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a whole negative situation.

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Silvia Hernandes: Oh, yeah.

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It's no boss.

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Absolutely.

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So that supervisor is not happy.

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The manager is also not happy because

productivity is falling because he

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doesn't know what to do impacts the

morale because the person doesn't

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know how to deal with the people.

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So, and then you have some

people unhappy so they may leave.

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Imagine that if three, four people

leave in the department because of

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Freddy D: Well, I've seen it happen.

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Silvia Hernandes: Me too.

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:

I mean, and it happens.

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Freddy D: And it has a profound

negative impact on the business.

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Silvia Hernandes: Absolutely.

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:

Freddy D: Customers start

realizing something's not right.

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:

They start to, it, even though there's

no word that may go out, but they

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:

recognize that something's not right.

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Silvia Hernandes: Something's

happening, they don't get the

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:

responses back from the, because

the people aren't there to respond.

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:

So, it's, it starts to create a bigger

snowball problem, if it's not rectified

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:

very quickly, you start losing customers.

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:

Absolutely.

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:

There's no ball very fast, but you

know, I think nowadays there are tools

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that we can apply to those things.

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And then I'm a little biased

to say about behavior because

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I believe so much in behavior.

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:

Understand how the person really operates

in a work scenario and then try to fit

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:

that personality to the job at hand.

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:

And then when you find that match.

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:

The possibility of success, grows

tremendously, but some people

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:

are not applying those tools.

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:

And then I will, I would go to,

to call for, apply those because

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:

the results are tremendous.

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:

Or at least the possibility

of success is greater than not

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:

doing anything and just promoting

because it comes down to behavior.

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It really comes down to behavior.

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:

You are for this position or you tend to

be successful in this position or not.

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:

So there are ways that we can

evaluate this before promoting.

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:

Freddy D: So, Sylvia, how can somebody

find you to get some advice with

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their HR or look at even bringing

your services on to their company?

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Silvia Hernandes: My website is in there.

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:

So is leanhrpartners.

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net.

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So I am located in Scottsdale.

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So I also LinkedIn Sylvia

Hernandez LinkedIn in there, can

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:

find me and my company there.

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:

Freddy D: Okay.

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:

And if someone was to reach out, what

would be, do you have a free assessment

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:

or do you kind of take a look at stuff?

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:

Silvia Hernandes: Yeah.

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Reaching out, I can, for example,

give a free assessment on the

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:

personality on the individual level.

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If it's for organizations, we can

do also for the entire organization

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:

And see what fits what, of

course, is not personality alone.

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:

It is an exercise that we compare how

the person operates with the job that the

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:

person has or will have and then advice

if it's a good match or not a good match.

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:

Freddy D: Okay.

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:

Excellent.

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:

We probably should have you on

another show to talk more about

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:

personality types and how that comes

into a play with the work environment

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:

and the culture of a company.

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:

Silvia Hernandes: Absolutely.

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:

I'll be happy too.

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:

Freddy D: All right.

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:

Sylvia, thank you very much for being

on the business superfans podcast.

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:

You've been a guest and we

look forward to continuing

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:

the conversation another day.

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:

Silvia Hernandes: Oh, thank you.

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:

Thank you so much, Fred.

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:

It's been my pleasure.

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:

Thank you.

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:

I'll see you in another time.

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About the Podcast

Business Superfans Podcast
We're on a mission to turn employees, customers, and business partners into superfans! Imagine everyone rallying behind your brand, turbocharging sales, and driving our success into the future!
Welcome to the Business Superfans Podcast, where your path to building a dedicated community of superfans begins. Hosted by Frederick Dudek, also known as Freddy D, an international sales and marketing leader with over 30 years of experience selling to major organizations like Bosch, Ingersoll Rand, Banner Health, the State of Arizona, and many others. This podcast is your go-to resource for transforming your business into a powerhouse of loyalty, and advocacy, collectively accelerating profitable and sustainable success.

What sets the Business Superfans Podcast apart? We don’t just discuss enhancing customer (CX) and employee experiences (EX); we delve into the often-overlooked realm of business allies—complementary businesses, suppliers, and distributors. We refer to this experience as the Stakeholder Experience (SX). This podcast encompasses the entire business ecosystem, offering a comprehensive synergistic approach to creating superfans across all your stakeholder groups.

Each episode unveils insider strategies, cutting-edge tools, and real-world examples from various interviewees sharing their stories. These insights aim to boost your brand's visibility and cultivate a dedicated community of superfans ready to advocate for your mission.

We’ll explore the psychology of brand loyalty, uncovering the factors that drive individuals to become superfans and how you can harness this influence to build a powerful advocacy force. Whether you’re a startup aiming to establish your presence or an established business looking to revitalize your brand, the Business Superfans Podcast delivers actionable insights and inspiration to help you achieve consistent results cost-effectively.

So, why wait? Tune in to the Business Superfans Podcast and become the brand that everyone is talking about—among competitors, customers, and business allies alike. Become part of the movement and discover the key to creating superfans who will elevate your business to unprecedented levels.
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About your host

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Frederick Dudek

Frederick Dudek, author of the book "Creating Business Superfans," and host of the Business Superfans Podcast. He is an accomplished sales and marketing executive with over 30 years of experience in achieving remarkable sales performance results in global business markets. With a successful track record in the software-as-a-service industry and others. Frederick brings expertise and insight to help businesses thrive., he shares invaluable knowledge and strategies to create brand advocates, which he calls business superfans, who propel organizations toward long-term success.


Born in rural France, Frederick spent summers on his grandfather’s vineyard in France, where he developed a love for French wine. As a youth, he showed a strong aptitude for engineering and competed in drafting and design competitions. After winning numerous engineering awards, he became a draftsman working on numerous automotive projects. He was selected to design the spot weld guns for the 1982 Ford Escort car. That led to Frederick joining the emerging computer-aided design (CAD) and computer-aided manufacturing (CAM) industry, in which he quickly climbed the ranks.

While working for a CAD/CAM company as an application engineer, an opportunity presented itself that enabled Frederick to transition into sales. It was the right decision, and he never looked back. In the thirty-plus years Frederick has been selling, he has earned a reputation as the go-to guy for small companies that want to expand their business domestically or internationally. This role has allowed him to travel to over thirty countries and counting. When abroad, Frederick’s favorite pastime is to go exploring for hours, not to mention enjoying some of the local cuisine and fine wines.

Frederick is a former runner and athlete. Today, you can find him hiking various trails with his significant other, Kiley Kaplan. When not writing, selling, speaking, or exploring, he is cooking or building things. The next thing on Frederick’s bucket list is learning to sail and to continue the exploration of countries and their unique cultures.