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
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.
316
: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
320
: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.
327
:That's why I kind of
split into two buckets.
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:One thing is compliance is boring.
329
:The other thing is really dealing
with the people in how they hit the
330
: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
333
: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.
339
:Silvia Hernandes: There's all good impact.
340
:Freddy D: Right, so something that a
business should be looking for is if
341
:they're outsourcing an agency, they
want to make sure that the agency, like
342
:yourself, looks at it from, okay, Because
I really like the two bucket idea, is
343
:okay, we got compliance, we get that
stuff out of the way, now we focus on
344
:all the other aspects that creates the
environment within the company, creates
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:the motivation and evolves into a culture.
346
:Where you've got people that stay
in companies 5, 10, 15 years because
347
:they love where they're working and
they're all their family and friends
348
:know about the company because
they're promoting it as superfans.
349
:Silvia Hernandes: Correct.
350
:Well, one notes to the 15, 20 years
in the company, we know that it's
351
:very rare that happens nowadays
because the environment changed.
352
: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
356
: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
358
:organization for you to deliver results.
359
: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.
369
:It's a, we're in a more,
more dynamic world.
370
: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.
372
: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.
375
:Well, it doesn't mean that we
cannot go back to that model again,
376
:because there's so many components,
things are changing so fast and
377
:people react in a different matter.
378
:Right?
379
:So things that were not important
in the past, it can be today.
380
:You may have, for example, the
millennial generation that.
381
:Nowadays it's called, I
want to make an impact.
382
:It's not for everybody.
383
:Some people wants to stay in a place and
grow their career or not, or just deliver
384
:a good job, but stay where they are at.
385
:And we need people like that, we need
going back to the example, right?
386
:So we need people in an assembly line.
387
:Sometimes you want people to grow
while they don't want to grow.
388
:They're happy there.
389
:So we need to respect that as well.
390
:Right?
391
:So promoting is not for everybody.
392
: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.
395
:Absolutely correct.
396
:Very important statement there, because
sometimes we promote people, and now
397
:they're into that position, and they're
not happy in that position because
398
:they're not comfortable in that position,
and now their productivity goes down,
399
:and et cetera, and they end up quitting
because they're completely unhappy.
400
:And the results are what
we've just been talking about.
401
:Now you've got to start that
whole process all over again.
402
:And had that person just, respected
their mindset that they were happy
403
:where they're at, you could have found
somebody else to fill that position.
404
:Silvia Hernandes: Yeah,
405
:Freddy D: And you would have
not lost the productivity and
406
:the money and everything else.
407
:Silvia Hernandes: Yeah, I'll
go beyond Freddie on that one.
408
:I think it promoting the wrong
person or the unprepared person.
409
:It is the worst that
can happen to turnover.
410
:And why?
411
:Because we know that more than 80
percent of turnover happens because
412
:of people, because of behavior
and not because of performance.
413
:This is out there.
414
:There are several, studies on this thing.
415
: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.
447
: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.
455
: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.
460
: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.
463
: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
479
: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.
486
:If it's for organizations, we can
do also for the entire organization
487
: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
489
:person has or will have and then advice
if it's a good match or not a good match.
490
: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.
504
:Thank you.
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:I'll see you in another time.