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

Freddy D: 00:00:00

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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: 00:18:35

Silvia Hernandes: Yeah, that's

the bad thing that we get because

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: 00:18:38

it's all about papers, all about

legal is all about compliance.

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: 00:18:42

That's why I kind of

split into two buckets.

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: 00:18:46

One thing is compliance is boring.

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: 00:18:48

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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: 00:18:55

I mean, turnover is a bad one.

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: 00:18:57

But if a person stays is the tenor

and it's the company philosophy to

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: 00:19:02

provide a tenor and collect the results.

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: 00:19:06

I mean, it's money is

revenue, is people happy.

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: 00:19:08

They are advocates.

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: 00:19:10

They are superfans.

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: 00:19:11

The sales is going to bloom.

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: 00:19:13

Freddy D: Yeah, absolutely.

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: 00:19:13

Silvia Hernandes: There's all good impact.

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: 00:19:15

Freddy D: Right, so something that a

business should be looking for is if

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: 00:19:19

they're outsourcing an agency, they

want to make sure that the agency, like

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: 00:19:24

yourself, looks at it from, okay, Because

I really like the two bucket idea, is

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: 00:19:30

okay, we got compliance, we get that

stuff out of the way, now we focus on

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: 00:19:35

all the other aspects that creates the

environment within the company, creates

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: 00:19:41

the motivation and evolves into a culture.

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: 00:19:46

Where you've got people that stay

in companies 5, 10, 15 years because

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: 00:19:51

they love where they're working and

they're all their family and friends

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: 00:19:57

know about the company because

they're promoting it as superfans.

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: 00:20:02

Silvia Hernandes: Correct.

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: 00:20:03

Well, one notes to the 15, 20 years

in the company, we know that it's

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: 00:20:08

very rare that happens nowadays

because the environment changed.

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: 00:20:12

The world changed because

there's so many components that

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: 00:20:17

makes the generation, right?

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: 00:20:19

It's different that impacts

a person to stay or to go.

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: 00:20:23

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

10, 15 years in the companies

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: 00:20:28

anymore, at least for now, where we

live today, but it's still, if you

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: 00:20:32

can keep somebody for a number of

years, that it's important for the

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: 00:20:37

organization for you to deliver results.

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: 00:20:40

Not only for the organization,

but for the individual as well.

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: 00:20:44

I'm growing my career.

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: 00:20:45

I'm learning something.

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: 00:20:46

I'm contributing to things.

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: 00:20:49

It is already a win situation.

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: 00:20:52

Right.

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: 00:20:53

Freddy D: Yeah, absolutely.

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: 00:20:54

Absolutely.

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: 00:20:54

Very good point.

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: 00:20:56

Yeah, because.

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: 00:20:57

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

more dynamic world.

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: 00:21:00

I still kind of think, cause I still

know some people that have worked at

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: 00:21:04

their companies for, 10, 15 years and

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

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: 00:21:09

That's becomes, that's more of the

exception versus, you're right.

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: 00:21:14

That's more the exception

than the reality.

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: 00:21:16

Silvia Hernandes: Yeah.

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: 00:21:17

Well, it doesn't mean that we

cannot go back to that model again,

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: 00:21:22

because there's so many components,

things are changing so fast and

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: 00:21:25

people react in a different matter.

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: 00:21:27

Right?

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: 00:21:28

So things that were not important

in the past, it can be today.

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: 00:21:32

You may have, for example, the

millennial generation that.

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: 00:21:36

Nowadays it's called, I

want to make an impact.

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: 00:21:39

It's not for everybody.

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: 00:21:41

Some people wants to stay in a place and

grow their career or not, or just deliver

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: 00:21:47

a good job, but stay where they are at.

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: 00:21:49

And we need people like that, we need

going back to the example, right?

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: 00:21:54

So we need people in an assembly line.

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: 00:21:57

Sometimes you want people to grow

while they don't want to grow.

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: 00:22:02

They're happy there.

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: 00:22:03

So we need to respect that as well.

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: 00:22:06

Right?

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: 00:22:07

So promoting is not for everybody.

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: 00:22:10

So they are happy where

they're at, which is good.

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: 00:22:13

And then we need all those professionals.

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: 00:22:14

Freddy D: Absolutely correct.

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: 00:22:16

Absolutely correct.

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: 00:22:17

Very important statement there, because

sometimes we promote people, and now

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: 00:22:22

they're into that position, and they're

not happy in that position because

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: 00:22:26

they're not comfortable in that position,

and now their productivity goes down,

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: 00:22:30

and et cetera, and they end up quitting

because they're completely unhappy.

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: 00:22:36

And the results are what

we've just been talking about.

401

: 00:22:41

Now you've got to start that

whole process all over again.

402

: 00:22:44

And had that person just, respected

their mindset that they were happy

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: 00:22:49

where they're at, you could have found

somebody else to fill that position.

404

: 00:22:52

Silvia Hernandes: Yeah,

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: 00:22:53

Freddy D: And you would have

not lost the productivity and

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: 00:22:54

the money and everything else.

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: 00:22:56

Silvia Hernandes: Yeah, I'll

go beyond Freddie on that one.

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: 00:22:59

I think it promoting the wrong

person or the unprepared person.

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: 00:23:05

It is the worst that

can happen to turnover.

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: 00:23:09

And why?

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: 00:23:10

Because we know that more than 80

percent of turnover happens because

412

: 00:23:15

of people, because of behavior

and not because of performance.

413

: 00:23:19

This is out there.

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: 00:23:20

There are several, studies on this thing.

415

: 00:23:23

So if the supervisor is not prepared

to deal with the people, they quit

416

: 00:23:30

and your turnover starts there.

417

: 00:23:32

But how did you start it?

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: 00:23:33

Because you put in a supervisory role,

a person that perhaps is doesn't want

419

: 00:23:40

it wants the money, but doesn't want the

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

420

: 00:23:45

And that happens all the time,

all the time until this day.

421

: 00:23:49

Freddy D: Yeah.

422

: 00:23:49

They're not giving management training.

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: 00:23:51

They're not given training

to how to deal with people.

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: 00:23:54

It's like, okay, we put you

into this position, go to work

425

: 00:23:58

and you're like what do I do?

426

: 00:24:00

And then the first situation that comes

up is usually handled incorrectly,

427

: 00:24:04

because they don't know how to handle it.

428

: 00:24:07

And so now you've got a double whammy

because that employee that came up to the

429

: 00:24:12

new supervisor for assistance is unhappy.

430

: 00:24:16

Yeah.

431

: 00:24:16

Supervisor's unhappy because he

knows, or she knows that they.

432

: 00:24:22

Didn't handle it appropriately and

it just now you've just created

433

: 00:24:26

a whole negative situation.

434

: 00:24:28

Silvia Hernandes: Oh, yeah.

435

: 00:24:28

It's no boss.

436

: 00:24:29

Absolutely.

437

: 00:24:30

So that supervisor is not happy.

438

: 00:24:33

The manager is also not happy because

productivity is falling because he

439

: 00:24:37

doesn't know what to do impacts the

morale because the person doesn't

440

: 00:24:41

know how to deal with the people.

441

: 00:24:43

So, and then you have some

people unhappy so they may leave.

442

: 00:24:47

Imagine that if three, four people

leave in the department because of

443

: 00:24:51

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

444

: 00:24:53

Silvia Hernandes: Me too.

445

: 00:24:54

I mean, and it happens.

446

: 00:24:57

Freddy D: And it has a profound

negative impact on the business.

447

: 00:25:00

Silvia Hernandes: Absolutely.

448

: 00:25:01

Freddy D: Customers start

realizing something's not right.

449

: 00:25:04

They start to, it, even though there's

no word that may go out, but they

450

: 00:25:08

recognize that something's not right.

451

: 00:25:11

Silvia Hernandes: Something's

happening, they don't get the

452

: 00:25:14

responses back from the, because

the people aren't there to respond.

453

: 00:25:18

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

snowball problem, if it's not rectified

454

: 00:25:24

very quickly, you start losing customers.

455

: 00:25:26

Absolutely.

456

: 00:25:27

There's no ball very fast, but you

know, I think nowadays there are tools

457

: 00:25:31

that we can apply to those things.

458

: 00:25:33

And then I'm a little biased

to say about behavior because

459

: 00:25:37

I believe so much in behavior.

460

: 00:25:39

Understand how the person really operates

in a work scenario and then try to fit

461

: 00:25:46

that personality to the job at hand.

462

: 00:25:51

And then when you find that match.

463

: 00:25:54

The possibility of success, grows

tremendously, but some people

464

: 00:25:59

are not applying those tools.

465

: 00:26:01

And then I will, I would go to,

to call for, apply those because

466

: 00:26:08

the results are tremendous.

467

: 00:26:10

Or at least the possibility

of success is greater than not

468

: 00:26:15

doing anything and just promoting

because it comes down to behavior.

469

: 00:26:19

It really comes down to behavior.

470

: 00:26:21

You are for this position or you tend to

be successful in this position or not.

471

: 00:26:25

So there are ways that we can

evaluate this before promoting.

472

: 00:26:31

Freddy D: So, Sylvia, how can somebody

find you to get some advice with

473

: 00:26:36

their HR or look at even bringing

your services on to their company?

474

: 00:26:41

Silvia Hernandes: My website is in there.

475

: 00:26:42

So is leanhrpartners.

476

: 00:26:45

net.

477

: 00:26:47

So I am located in Scottsdale.

478

: 00:26:49

So I also LinkedIn Sylvia

Hernandez LinkedIn in there, can

479

: 00:26:53

find me and my company there.

480

: 00:26:55

Freddy D: Okay.

481

: 00:26:56

And if someone was to reach out, what

would be, do you have a free assessment

482

: 00:27:01

or do you kind of take a look at stuff?

483

: 00:27:03

Silvia Hernandes: Yeah.

484

: 00:27:04

Reaching out, I can, for example,

give a free assessment on the

485

: 00:27:08

personality on the individual level.

486

: 00:27:10

If it's for organizations, we can

do also for the entire organization

487

: 00:27:14

And see what fits what, of

course, is not personality alone.

488

: 00:27:19

It is an exercise that we compare how

the person operates with the job that the

489

: 00:27:25

person has or will have and then advice

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

490

: 00:27:33

Freddy D: Okay.

491

: 00:27:33

Excellent.

492

: 00:27:34

We probably should have you on

another show to talk more about

493

: 00:27:38

personality types and how that comes

into a play with the work environment

494

: 00:27:42

and the culture of a company.

495

: 00:27:44

Silvia Hernandes: Absolutely.

496

: 00:27:44

I'll be happy too.

497

: 00:27:45

Freddy D: All right.

498

: 00:27:46

Sylvia, thank you very much for being

on the business superfans podcast.

499

: 00:27:49

You've been a guest and we

look forward to continuing

500

: 00:27:52

the conversation another day.

501

: 00:27:53

Silvia Hernandes: Oh, thank you.

502

: 00:27:54

Thank you so much, Fred.

503

: 00:27:55

It's been my pleasure.

504

: 00:27:57

Thank you.

505

: 00:27:57

I'll see you in another time.