HR: Leading People, Leading Organizations © 2004 SHRM Society for Human Resource Management Annual Business Meeting November 19, 2005

HR: Leading People, Leading Organizations © 2004 SHRM

Society for Human Resource Management

Annual Business MeetingNovember 19, 2005


Agenda

• Year-end Forecast• Recap of Vision and Strategic Objectives• Plan Update: STP• Plan Update: ATP• SHRM as an Employer• Valuing our Volunteers• Q&A


SHRM Executive Team• Gail Aldrich, SPHR, Chief Membership Officer

• Bob Carr, SPHR, Chief Professional Development Officer

• Deb Cohen, Ph.D., SPHR, Chief Knowledge Officer

• Kathy Compton, Chief External Affairs Officer

• Jerry Hay, CPA, CAE, Chief Financial Officer

• Steve Miranda, SPHR, GPHR, Chief Human Resources and Strategic Planning Officer

• Gary Rubin, Chief Publishing Officer


Total SHRM Membership 1998 - 2006

104,878

145,060 158,867

8,457

8,722

9,8469,524 9,499

9,33411,048

11,600 11,60011,300

164,539

196,100194,600183,593

170,660

208,600

122,848

Students

Professional

219,900 207,700206,200


Professional Member Retention1998 - 2006

86.0%

83.0%82.0%

79.0%78.0%

78.7%

82.0% 82.0%81.25%

82.25%

1998

1999

2000

2001

2002

2003

2004

2005

Plan

2005

Forec

ast

2006

Plan


Member Satisfaction Index

78.6 79.31

0

25

50

75

100

Member SatisfactionMar-05

Sep-05

*Percentage


SHRM Professional Membership Distribution Chapter vs. At-Large

63,047 65,57166,08262,95061,46354,53152,03948,571

125,539116,439

100,24896,946

88,200

68,700

54,771

106,977

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1998

1999

2000

2001

2002

2003

2004

9/30

YTD

Chapters At-Large


SHRM Professional Membership Distribution Chapter vs. At-Large

47%43%

38% 39% 38% 36% 34%37%

63%

53%57%

62% 61% 62% 64% 66%

0%

10%

20%

30%

40%

50%

60%

70%

1998

1999

2000

2001

2002

2003

2004

9/30 Y

TD

Chapters At-Large


2005 Plan vs. 2005 Year-end Forecast Financial Results from SHRM Operations

2005 Y/E

Forecast

2005

Plan

Favorable (Unfav)

Variance $

Favorable (Unfav)

Variance %

Revenue $87,879,200 $87,250,800 $ 628,400 0.7%

Expenses 81,667,400 87,702,300 5,254,900 6.0%

Inc (Dec) NA from Ops

Inv Income

Increase to Net Assets

6,211,800

3,530,600

$9,742,400

(451,500)

1,830,000

$1,378,500

5,883,300

1,700,600

$7,583,900

1,303.1%

92.9%

550.2%


2006 Plan vs. 2005 Year-end Forecast Financial Results from SHRM Operations

2006

Plan

2005 Y/E

Forecast

Favorable (Unfav)

Variance $

Favorable (Unfav)

Variance %

Revenue $95,385,000 $87,879,200 $7,505,800 8.5%

Expenses 94,003,100 81,667,400 (11,555,700) (14.0)%

Inc NA from Ops

Inv Income

Increase to Net Assets

1,382,400

2,834,300

$4,216,700

6,211,800

3,530,600

$9,742,400

(4,049,400)

(696,300)

$(4,049,400)

(74.5)%

(19.7)%

(53.0)%


SHRM Total Net Assets1998 - 2005

$30.8

$41.1

$55.5$61.7 $66.6

$86.2

$102.7 $104.0

$112.4

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

1998

1999

2000

2001

2002

2003

2004

2005

Plan

2005

Foreca

st


Net Assets as a Percent of Revenue1998 - 2006

123.0%118.8%116.8%

64.1%70.9%

75.9%

88.6%99.8%

103.8%

116.8%

1998

1999

2000

2001

2002

2003

2004

2005

Plan

2005

Foreca

st

2006

Plan


PHR, SPHR and GPHR Examinees1998 - 2005

7,330 9,013 11,986 13,236 13,976 11,958 9,980 12,400

3,990 5,989 7,076 7,984 8,368 7,311 6,272 7,600

230 350

11,320 15,002 19,062 21,220 22,344 19,269 16,482 20,350

PHR SPHR GPHR Total


HRCI Total Certified Professionals 1999 - 2005

40,00047,000

56,00065,000 71,000 77,466 75,682

1999

2000

2001

2002

2003

2004

9/30

/05

YTD


HRCI Pass Rate Results 1998 - 2005

PHR 71% 68% 66% 67% 63% 65% 67% 66%

SPHR 62% 62% 53% 57% 54% 57% 60% 58%

GPHR 67% 65%

1998 1999 2000 2001 2002 2003 20049/30/05

YTD


Five Critical Strategic Objectives

Serve the Professional (STP)

• SHRM must provide comprehensive information and tools to HR professionals to enable them to make informed decisions.

• SHRM must help HR professionals develop their knowledge, skills and careers.

• SHRM is the recognized community for exchanging ideas, developing professional relationships, and increasing HR knowledge.


Five Critical Strategic Objectives

Advance the Profession (ATP)

• SHRM must set the agenda for the HR profession.

• SHRM must ensure HR is recognized for its contribution to business success.


Serve the Professional (STP):

Examples of STP Activities in 2005


STP 2005

Hurricane Response Efforts

• Enlistment of volunteers for American Red Cross • EAPA partnership • 45 day reprieve on I-9 requirements• SHRM Online www.shrm.org/issues/hurricane• Toll free help line, 866-SHRM-AID• Extended memberships for those in impacted areas• Granted funds to chapters/state councils offering

assistance in relief efforts• Hurricane Response Employment Center • Web hosting • Temporary panel: Disaster Response• Direct and matching employee donations to American Red

Cross and Habitat for Humanity


STP 2005

• White Papers: Continued to build depth of information resources.

• Interactive Spreadsheet database created: Template tools to calculate and compile HR metrics.

• Salary Survey Directory created: Provide links to salary survey resources for more than 20 industries and professions.

• Research Quarterlies and survey reports


STP 2005

Express Requests • Members may send e-

mails with a one-word subject and automatically receive a package of information via e-mail.

• More than 150 new Express Request packages to date.

Month Express Requests

Jan 19.4%

Feb 27.8%

Mar 46.2%

Apr 29.0%

May 38.9%

Jun 41.0%

Jul 44.0%

Aug 52.0%

Sep 54.0%

Percentage of Info Center member requests


STP 2005

SHRM Online®

• Re-launched with a new look, improved navigation.• Launched HR Outsourcing and Workplace Diversity

Focus Areas in April. • Held and archived 49 free Web casts

And thePop-Ups:


STP 2005

HR Magazine• Cover stories on strategic issues such as :

–HR executives as change agents, –Disciplining top executives –HR’s role in mergers and

acquisitions. –Educating corporate boards –Why Wall Street overlooks the

importance of HR


STP 2005

HR Magazine

• Special 13th issue commemorating the 50th anniversary of HR Magazine.

• Finalist for Jessie H. Neal Award—the Pulitzer Prize for business publishers.


STP 2005

• SHRM e-Learning: 100 new courses to be added by the end of the year.

• SHRM Academy: 18 courses currently, with launch of “Conflict Resolution Skills for HR Professionals” in December.


STP 2005

• “The Advanced Program in Human Resource Management: Creating Organizational Value through Exceptional HR Management” premiered at UCLA in September.

• Harvard Business School Publishing and SHRM offering new programs such as: HR Executive Certificate Program: Critical Strategies for HR Leaders.


STP 2005

• Programs with UNC-Chapter Hill, Cornell, Simmons School of Management, Manhattanville College, USC, Thunderbird and others.


STP 2005

Student Program

• Undergone a complete review of our commitment to students:

–determine the current strengths and areas for improvement;

–align the Student Programs strategy with the overall SHRM strategy;

–evaluate the HR Games


Serve the Professional 2006 Plans:

A few of our planned activities to Serve the Professional in 2006…


STP 2006

• Produce the 2006-2007 Strategic Workplace Outlook

• Respond to more than 180,000 member requests for HR information

• Roll out online certificate programs:

–Compensation Basics

–Variable Compensation

–Employee Benefits


STP 2006

• Online self assessment/career pathing tool for members at all career levels to be released in early 2006.

• Continue building valuable content on SHRM Online measured by an increase in member usage.


STP 2006

• Enhancements to HR Focus areas including

–an RFP directory/marketplace and –a directory of HR-related software


STP 2006

• Executive HR Network: Program in each region, targeted to senior HR practitioners.

• New certificate program with Wharton Business School “Strategic Management: Emerging Perspectives in HR” - Premiers at the 2006 Annual Conference.

• Series of Web casts on Business Leadership slated in late 2005/2006.


Advance the Profession (ATP):

Examples of ATP Activities in 2005


ATP 2005

• Created benchmarking report with HR, financial, and other organizational metrics from more than 1,500 organizations

• Analyzed by company type, size, and industry to compare apples to apples

• www.shrm.org/research/benchmarks

Human Capital Benchmarking


ATP 2005

• Interviewed HR stakeholders from inside and outside the profession

• Four scenarios with implications for the development of future HR competencies.

• www.shrm.org/trends

Scenarios for the Future of HR Management


ATP 2005

• Undergraduate and Graduate Curriculum

• Leading Indicator of National Employment (LINE)


ATP 2005

Internationalization Strategy:

• Continued work on China strategy, working with HRCI to explore development of certification; opened office in Beijing.

• Held first U.S.-India Executive Exchange Program. In Mumbai. Opened office. Working on opportunities to collaborate with HR professionals in India.


ATP 2005

Best Small & Medium Places to Work in America

• Published 2nd annual list in July issue of HR Magazine.

• Winners announced at the Annual Conference & Exposition.


ATP 2005

Targeted Media Outreach

• Regular columns in international publications World Finance and European CEO.

• Sponsorship of Marketplace Morning Report and All Things Considered, which air on NPR.

• More than 102 million media hits so far in 2005. Impressions exceed 500 million.


ATP 2005

Fast Company Why We Hate HR

• Letter to the Editor in October issue; Members and chapters also responded with letters to the editor

• SHRM responded on CNN “Daybreak”

• Dave Ulrich debated Keith Hammonds in CNBC interview (Ulrich won!)


ATP 2005

Advocacy and Outreach• Focused on building blocks to Health Care

Reform:• Expand use of health information

technology• Improve patient safety and reduce

medical errors• Improve access to coverage and

information


ATP 2005

• Workplace Flexibility – key to meeting the needs of employers and employees. SHRM’s efforts include:• Identify challenges to offering workplace

flexibility• Provide incentives to offer flexibility• Clarify FMLA rules


ATP 2005

• Retirement Security - Organized visits by Secretary of Labor Chao to several chapters in North Carolina, Pennsylvania and Ohio for briefings on issue.

• Workforce readiness focus on:• New entrants to the workforce• Incumbent workers• Transitioning workers


ATP 2005

Enhanced member involvement and support in Public Policy efforts

• Assisting members and volunteer leaders in building relationships locally with public policy decision makers.

• Support of 29 state advocacy efforts in 18 states.


ATP 2005

• Worked with state legislative leaders in 8 states to develop targeted legislative strategies on key issues.

• Initiated new program to build relations on state level with State Advocacy Days and Day Inside the District events.


SHRM Foundation

New DVD! “Fueling the Talent Engine – Finding and Keeping High Performers”

Promo Video


SHRM Foundation

Judy Clark, SPHR Director-at-Large

SHRM Board of Directors


Advance the Profession 2006 Plans:

A few of our planned activities to Advance the Profession in 2006…


ATP 2006

• Curriculum Project: Will roll out undergraduate and graduate curriculum templates to academic institutions.

• New American Workplace book will be published.

• GAHRP: Recommendations for Generally Accepted HR Practices will be made to the SHRM Board in early 2006.


ATP 2006

Internationalization Strategy

• SHRM will implement the second year of the five-year internalization strategy:

• Will undertake professional development opportunities for HR professionals in China and India.

• Will translate some of our content into Chinese.


ATP 2006

CEO Exchange

• In March, begin airing CEO Exchange, underwritten by SHRM and produced and broadcast by PBS.

• Features two prominent CEOs

• Hosted by CNN’s Jeff Greenfield

• Taped at top rated business schools. Chapters in taping areas will be invited to participate.


ATP 2006

CNBC Partnership

• Programs with new strategic media ally – CNBC.

• Designed to gain visibility for the HR profession within the C-Suite


ATP 2006

Sponsorship of:

–CNBC/Wall Street Journal Executive Leadership Awards honoring Fortune 100 CEO’s

–U.S. broadcast of updates from the 2006 World Economic Forum in Davos, Switzerland

• Also working with CNBC on developing on-air programs to be featured on popular CNBC shows such as “Squawk Box.”


ATP 2006


ATP 2006

SHRM Human Capital Leadership Awards• Strategic HR Leadership Award• Innovative Business Solutions Award• Competitive Workforce Award• Human Capital Business Leaders of the

Year• Winners recognized at the SHRM Strategic

HR Conference and in HR Magazine.• Winner of Human Capital Business Leader

award announced at WSJ/CNBC Executive Leadership Awards program.


SHRM as an Employer

• Strategic benefits review completed

• Values Initiative: Putting Values into Action workshops scheduled for all staff by year end.

• Succession planning

• Follow up of employee satisfaction survey last year.

• Preparation for employee satisfaction survey next year.


SHRM as an Employer

• ASAE’s Center for Association Leadership selected SHRM as one of eight visionary associations due to strong fiscal performance and exceptional member retention

• U.S. Chamber of Commerce listed SHRM as one of the 25 largest associations and one of 100 fastest growing professional associations in the U.S.


Valuing our Volunteers: 2005

A few of our 2005 activities in this important area….



• Charters: Close to 90% of state council and chapter charters have been finalized.

• Joint Billing: Total of 16 chapters enrolled. Discussions held with 12 more chapters.

• SHRM Learning System: New initiative providing State Councils/Chapters with reduced pricing for instructor and participant kits.



Chapter Website Support:

• Launched pilot program

• Designed template sites for chapters with national news stories, research and other materials to be updated daily by SHRM’s professional web staff.

• Software enable chapters to add local content—including meeting calendars and membership rosters.



Chapter Website Support:

• Launched news feeds of HR News content for chapter and state council web sites. 107 chapters and 14 state councils use the feed.



Volunteer Opportunities Center (VOC) - Launched 2005

• Online applicant tracking system for open volunteer positions.

• Used to identify volunteers for panel positions, peer reviewers of white papers and to locate volunteer leaders with particular expertise for speaker opportunities at chapter meetings and the press.

• At www.shrm.org/volunteer

Complete your profile today!


Valuing our Volunteers: 2005Special Expertise Panels

• Undergone a complete evaluation.

• Twelve Special Expertise Panels started new terms in June with goals to complete throughout 2005-2006.

• A Corporate Social Responsibility sub-panel created.

• First temporary panel created:

–Disaster Response Panel


Valuing our Volunteers: 2005SHRM Speakers Bureau (SSB)

• Fulfilled 131 chapter/state council speaker requests, 10% more than in 2004

• Added new speeches in 2005

• Developed presentations for chapter presentations

• Launched Chapter Speaker Support Program, including a listing of about 40 affordable non-SHRM speakers.

• At www.shrm.org/speakers



A few plans for 2006 in this important area….



• Chapter Websites: Roll out the Chapter Website program to at least 25 chapters.

• Advocacy: Work with state councils and chapters to hold 20 different “Day Inside the District” events.

• Town Hall Meetings: SHRM will explore holding town hall meeting in each region featuring the CEO and Board members and encouraging networking.


SHRM Annual Business Meeting

A busy 2005 and an exciting 2006!


SHRM Annual Business Meeting

Questions?

Documents

HR: Leading People, Leading Organizations © 2004 SHRM Society for Human Resource Management Annual Business Meeting November 19, 2005