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%

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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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.

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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 planers 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,

www.barnesandnoble.com, the SHRMStore http://shrmstore.shrm.org/

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 Follow us on Twitter: @bigbookofhr  Visit our website & read our blog at:

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