HREvolution Moving from Tactical to Strategic Barbara Mitchell Cornelia Gamlem
Jan 16, 2016
HREvolutionMoving from Tactical to StrategicBarbara Mitchell
Cornelia Gamlem
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You have to know where you’ve been to know where you’re going
David McCullough, Author and Historian
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Beginning of our Profession
Late 1800s. Employment decisions were at discretion of
foreman. General disregard for health & safety and
child labor practices. High immigration rates and low skill levels
meant an abundant supply of cheap laborUnionization attempts were ineffective.
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Beginning of our Profession
Major strike at National Cash Register at turn of 20th Century.
John H. Patterson, president, creates a new department he called “personnel” to handle: Grievances Discharges Safety New laws impacting employees
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Beginning of our Profession Between 1915-20, the number of large US employers
with personnel departments rose from 5% to 25%. The End of WWI and the Depression brought a
decline to this fledging profession Opened the door for labor to look to legislation and not
personnel management for solutions to unemployment. In the 1930s Norris-LaGuardia Act, NLRA passed and
set in motion resurgence of personnel administration.
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HR Trivia
In what year was the FLSA signed into law? 1938 and it applied to industries whose combined
employment represented one third of the labor force. What was the minimum wage?
25 cents per hour;
What was the maximum number of hours in the workweek?
44 hours
After World War II Personnel Administration seen as critical American Society of Personnel Administration
(ASPA) started in 1948 with 67 members In 1954, Peter Drucker coined the term “Human
Resources” defining 3 broad managerial functions, managing: the business, other managers and the workers
and work which he defined as “the worker is the human resource”
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The 60’s & 70s Equal Pay Act of 1963 Civil Rights Act of 1964 Medicare and Medicaid established in 1965 By 1969, 40% of US labor force were women Late 60s ASPA had 10 employees and 5,000 members OSHA goes into effect in 1971 The Employment Retirement Income Security Act (ERISA) is
enacted in 1974 The Pregnancy Discrimination Act is enacted in 1978 Late 70s ASPA membership reaches 28,471
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The 80’s & 90’s IRCA—1986 COBRA—1986 WARN—1988 ASPA becomes SHRM—1989 ADA—1990 CRA 1991 FMLA—1993 SHRM celebrates 50th anniversary SHRM membership 131,571
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The 21st Century
Global Professional in HR (GPHR)—2004 SHRM membership surpasses 265,000 Enron, Worldcom, Arthur Andersen
scandals Sarbanes-Oxley—2002
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HR Challenges Now
Growing shortage of skilled workers
Generations at work
Increase of contingent employees
Globalization
Technology & Communication
Economic Factors
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Growing Shortage of Skilled Employees Declining birthrate in industrial nations Aging population Previously valuable skills no longer
required in our information driven economy
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Generations Veterans, Boomers, Xers, Millennials and NOW:
Internet Generation (or Gen Z or Gen I)Never lived in a world without the internet or threat of
terrorismMulti-tasking is a common as breathingGet information Facebook and TwitterPrivacy has less meaningEmail is too slow
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Bridging Generational Gaps
Millennials need for work/life balance is aligned with Baby Boomers needs
Boomers, Veterans, and Millennials share a desire to give back
HR must be aware we can’t meet everyone’s needs so do what is best for your organization and your culture
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Increase of Contingent Workers
Economy has forced businesses to be hesitant to hire full-time workers or to even fill positions with employees
Currently, 10 million contingent workers (more than the number of union members)
22 million US companies don’t have any payroll
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Increase of Virtual Employees
42% of US organizations provide some sort of flexible working options
Issue is how to provide the connections working in the same place used to provide
Work is a “state of mind”—not a “place to be”
Telecommuting
Has your organization revisited telecommuting in light of the Yahoo decision?
Has flexibility impacted your ability to hire and retain good people?
How does your organization maximize collaboration?
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Globalization
Madeleine Albright, former Secretary of State, was asked at a book signing,
“How do you stop globalization?”
Her response was “You don’t.”
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Globalization
Successful organizations have embraced the concept of “moving the work—not the worker”
Need awareness of vast cultural differences as how work gets done
Must be aware of major differences in laws and regulations
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HR Trivia
When was the Employee Retirement Income Security Act (ERISA) into law?
1974
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History of Communication
1455 to Present – News books to Newspapers (to current modes of communication)
ERISA mandates certain communications.
How are you communicating with your employees about benefits?
Benefit Communications
Source: SHRM, State of Employee Benefits in the Workplace—Communicating Benefits
"Which of the following employee benefits communications methods does your organization use?"
Enrollment materials (online or paper) 84%
Group employee benefits communications w/company representative 65%
One to one benefits counseling with an organizational representative 51%
Intranet 48%
Direct mail to home/residence 41%
Newsletters (online or paper) 39%
Benefit fairs 26%
Virtual education 13%
Social media 4%
Group employee benefits communications with your vendor 3%
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Benefit Communications
Jellyvision Benefits Counselor, an interactive online tool that walks employees, new hires and their family members through the process of selecting and enrolling in benefits.
Decision support tools based on animated stories to educate employees on benefits.
Best Buy Corp’s on-line Watercooler is used to communicate worldwide during benefits enrollment.
Patient Protection & Affordable Care Act Employees are asking “What does this mean for
me?” Opportunity for HR to communicate with &
educate employees Opportunity to show HR’s link to the
organization’s strategic goals & objectives What is the value proposition? What is the HR strategy for engagement, talent,
recruitment, team performance, total rewards?
Gary Kushner, 3/11/13, “Ready, Set, Go! Preparing your Organization Now for Health Care Reform” at SHRM 2013 Employment Law & Legislative Conference
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Technology & Communication
Cloud computing, mobile devices, social media and workforce analytics are seriously impacting how we work
Employees expect their employers to offer similar capabilities in mobile and social media as they have access to outside work
HR Magazine October 2011
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HR Trivia
How much did Henry Ford pay his assembly workers in 1914?$5 a day
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Henry Ford & Steve JobsIndustrialist
Outsourcer
Manufactured in the USA
Assembled in China
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Economic Factors
The Times they Are A-Changin’
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Embracing change
Preparing for the future
How can HR professionals embrace these forces and challenge themselves, individually and collectively, and adapt to the future in creative and strategic ways?
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HR Value Added
What does HR need to do to add value?Encourage organizations to invest in talentLead using metrics and dataCommit to innovation
Ed Lawler, Director of the Center for Effective Organizations and Professor at USC
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HR Value Added
Ask yourself these questions? Can I participate with understanding in
discussions around my organization’s business objectives?
Do I constantly look for ways to improve productivity through better labor utilization or other measures?
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HR Value Added
Do I anticipate challenges and resolve potential problems?
Can I ask the right questions to help my organization meet its mission?
Do I lead change? Do I communicate effectively? Do I lead the organization in an ethical
fashion?
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Case Study--Google
Google People Operations Vision and Mission: Make people metrics universally useful and
accessible Enable all People Operations processes to be
analysis driven Use analytics to attract, retain and increase
productivity Be a laboratory for breakthrough ideas
A Good Manager at Google
Coaches h/her people Communicates clearly Doesn’t micromanage
Google spread the word throughout the organization that these were the skills employees valued in a manager
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Case Study--Zappos
We decided that we’re a service company that just happens to sell shoes.
We interview people for culture fit. We want people who are passionate about what Zappos is about—service. I don’t care if they’re passionate about shoes.
Tony Hsieh, CEO
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Case Study--Zappos
How Zappos lives its values:New hires are interviewed for culture fitEvery new hire goes through five weeks of
new-hire training—including two weeks in a call center
They believe “that customer service shouldn’t be just a department—it should be the whole company.”
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Strategic Management
More agile and adaptable More outward looking More effective at addressing the demands
of multiple stakeholdersEd Lawler and Christopher Worley
Management Reset, Organizing for Sustainable Effectiveness
Strategic Management Four Core Issues
Robust, flexible strategies for short-term opportunities and threats
A culture that thrives on change, innovation, collaboration & efficiency
Rewards and talent management systems tied to organizational goals that attract and retain the right talent
Behavior that creates leaders throughout the organization
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Leadership Characteristics
Integrity and honesty Visionary strategic planners Innovative and imaginative Business acumen Critical thinkers Work with ambiguity & address challenges
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Developing Leadership Characteristics Build awareness of your organization.
Network internallyBuild relationships with colleagues outside HRParticipate in strategic planning with senior
managementParticipate in a task force that involves other
functional areas in your organization
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Developing Leadership Characteristics Suspend judgment before making decisions
Frame problems – think in different and better ways Gather and analyze all pertinent information – then
plan a course of action Seek information and insights from relevant areas of the
business Elicit and listen to opposing points of views Gather insights from diverse constituencies and demonstrate
sensitivity to different perspectives
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Developing Leadership Characteristics Embrace change
Get involved early in new ideasView it as an opportunityLead the way to bring others along
Be ProactiveFlexible OrganizedResilient
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Closing Thought
HR helps run the business. The focus is increasingly on talent management – finding, keeping and leveraging that talent to meet organizational goals. Those HR professionals who aren’t at that level may not make it in tomorrow’s workplace.”
Sue Meisinger, SPHRCEO, SHRM (Ret.)
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Call to Action
Continue to study the field of human resources. Research and understand emerging trends and
issues. Don’t just listen to sound bites.
Go beyond the surface to understand how change will impact your organization.
Develop and strengthen your critical thinking skills. Make the best judgments and decisions for your
organization and all of its employees.
The Big Book of HR Available at www.amazon.com,
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www.bigbookofhr.com
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