Emerging Trends in Human Resources

1
Emerging Trendsin Human Resources

• Presented by
• Keith J. Greene, SPHR
• Vice President, Member Relations
• SHRM

2
Top 10 Workplace Trends for 2006-2007
According to HR Professionals

• 10. Vulnerability of technology to attack or
  disaster
• 9. Work intensification as employers try to
  increase productivity with fewer employees
• 8. Increase in identity theft
• 7. Rise in number of individuals and families
  without health insurance
• 6. New attitudes towards aging and retirement as
  baby boomers reach retirement age

3
Top 10 Workplace Trends for 2006-2007
According to HR Professionals

• 5. Retirement of large numbers of baby boomers
  (those born between 1945 and 1964) at around the
  same time
• 4. Increased demand for work/life balance
• 3. Threat of increased health care/medical costs
  on the economic competitiveness of the United
  States
• 2. Increased use of outsourcing (offshoring) of
  jobs to other countries
• 1. Rising health care costs
• SOURCE SHRM Workplace Forecast

4
Top 10 Demographic Trends for 2006-2007

• 10. Growth in the number of employees for whom
  English is not their first language
• 9. Implications of the Latino/Hispanic population
  as the nations largest minority group
• 8. Growth in the number of employees with
  eldercare responsibilities
• 7. Generational issues Recognizing and catering
  to groups such as Gen Y (born 1980-2000) and Gen
  X (born 1965-1980)
• 6. Increase in the age individuals choose to
  retire

5
Top 10 Demographic Trends for 2006-2007

• 5. Growth in number of employees who have both
  eldercare and childcare responsibilities at the
  same time (sandwich generation)
• 4. Retirement of large numbers of baby boomers
  (born 1945-1964) at around the same time
• 3. Demographic shifts leading to a shortage of
  skilled workers
• 2. Aging of the workforce
• Aging population driving an increase in health
  care costs
• SOURCE SHRM Workplace Forecast

6
Actions Organizations Are Planning to Take in
Response to Demographic Trends

• Investing more in training and development to
  boost skills levels of employees
• Succession planning
• Changing employment practices to avoid charges of
  discrimination based on sexual orientation
• Changing employment practices to avoid charges of
  discrimination based on ethnicity
• Changing employment practices to avoid charges of
  racial discrimination
• Training line managers to recognize and respond
  to generational differences

7
Do you (Baby Boomers) want to work into
retirement?

• 71 said yes, with many with many looking for
  part-time jobs or an opportunity to move in and
  out of the workforce perhaps during a period as
  long as 10 years.
• The study, conducted by Harris Interactive,
  involved online interviews with more than 5,000
  adults aged 25 years to 70 years. (5/06)

8
WHY Do you (Baby Boomers) want to work into
retirement?

• To remain mentally and physically active
• I want to try new professions
• Earning money

9
Steps in Preparation for Possibility of Worker
Shortage Due to Baby Boomer Retirement

• Providing continuous skills training for
  incumbent workers (to update workers skills and
  keep workers ahead of the curve)
• Researching and potentially modifying pay scales
  to ensure competitiveness
• Providing baby boomers information regarding
  retirement planning considerations
• Offering flexible benefits packages for employees
  
• Increasing recruiting efforts overall

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Top 10 Employment Trends for 2006-2007

• 10. Privacy concerns of employees
• 9. More employees with untreated physical and
  mental health conditions due to an increase in
  health care costs and the number of uninsured
• 8. Establishment of a link between pay and
  performance
• 7. Greater demand for flextime
• 6. A continued change in negotiating strategies,
  tactics and processes used by labor and
  management caused by business pressure to remain
  competitive

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Top 10 Employment Trends for 2006-2007

• 5. Work intensification as employers try to
  increase productivity with fewer employees
• 4. Employee backlash against rising benefits
  costs
• 3. Employee security concerns
• 2. Rising health care costs
• 1. A greater emphasis on employers to develop
  retention strategies for current and future
  workforce
• SOURCE SHRM Workplace Forecast

12
Actions Organizations Are Taking or Planning to
Take in Response to Employment Trends

• Increasing spending on learning and training
  initiatives
• Shifting to the use of HSAs to offset the
  increase in health care costs
• Increasing use of flextime
• Decreasing health care benefits
• Increasing use of customized employee benefits
  packages

13
Top 10 HR Profession Trends for 2006-2007

• 10. Increased focus on selective retention for
  keeping mission-critical talent
• 9. Increased use of HR technology
• 8. Growing complexity of staffing function as it
  links to the financial and operational
  performance of the organization
• 7. Linking employee performance and its impact on
  organizations business goals
• 6. Business units taking on more of HRs
  strategic functions and tasks

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Top 10 HR Profession Trends for 2006-2007

• 5. Need to develop retention strategies for
  current and future workforce
• 4. Building people management or human capital
  component into key business transactions (change
  management, mergers and acquisitions)
• 3. Preparing for the next wave of
  retirement/labor shortages
• 2. Growing complexity of legal compliance
• 1. Central importance of medical health care/cost
  management to the HR function
• SOURCE SHRM Workplace Forecast

15
Actions Organizations Are Taking or Planning to
Take in Response to HR Trends

• Increasing use of technology to perform
  transactional HR functions
• Increasing HRs role in promoting corporate
  ethics/corporate social responsibility
• Increasing investment in training for HR staff
• Building people management or human capital
  component into key business transactions (change
  management, mergers and acquisitions)
• Measuring human capital

16
Actions That HR Professionals Are Taking in
Response to Trends

• Increasing employee electronic surveillance
• Increasing use of alternative dispute resolution
• Adding on to HR staff
• Greater use of contingent workers
• Decreasing other employee benefits as a result of
  increased health care benefits costs
• Cutting back on HR staff
• SOURCE SHRM Workplace Forecast

17
The Top Seven People-Related HR Issues
According to CEOs

• 1. Retaining Talent
• 2. Attracting Talent with Critical Skills
• 3. Improving Workplace Performance
• 4. Gaining Control of Health Care Costs
• 5. Using the Web Effectively for
  Information/Service Delivery
• 6. Creating People Measures for a Balanced
  Scorecard
• 7. Building New Workforce Skills for the Next
  Round of Growth
• SOURCE Towers Perrin

18
The Top Five Workforce Priorities According to
CFOs

• Developing Leadership Capabilities
• Increased Productivity
• Acquiring Key Talent
• Retaining Key Talent
• Measuring Human Capitals Contribution to
  Business Performance
• SOURCE Mercer HR Consulting

19
The Top Five Challenges for HR Managers

• Ensuring compliance with federal and state
  employment law
• Retaining talent in an improving economy
• Managing performance
• Developing leadership
• Dealing with rising health care costs
• SOURCE Business Legal Reports 5/06

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What Are the Key Retention Issues to Employees?

• Fairness at Work
• Concern for Me as an Employee
• Job Satisfaction
• The Reputation of My Employer
• Trust in Me as an Employee
• Source Walker Information

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What Are the Main Reasons Employees Resign?

• Poor Behavior and Supervisions Skills of
  Front-Line Managers
• Lack of Growth Potential
• Unable to Speak Freely About Concerns
• Lack of Recognition
• Dont Like the Work
• Inadequate Pay
• Lack of Work/Life Balance
• Source Saratoga Institute

22
People quit their manager, not their company.

• Marcus Buckingham

23
To Be Successful, HR Professionals Must Develop
Competence in Five Key Domains

• Strategic Contribution 43
• Personal Credibility 23
• HR Delivery 18
• Business Knowledge 11
• HR Technology 5
• Source HR Competency Toolkit ( indicates HRs
  total impact on business performance)

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The HR Professional MUST Master These
Competencies in order to Succeed in the Future

• Strategic thinking
• Talent management
• Business acumen
• Technology/ technical skills
• International/ global perspectives

• Finance capability
• Flexibility/ adaptability
• Change management
• Innovation and creativity

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The Words of Coretta Scott King

• It doesnt matter how strong your opinions are.
  If you dont use your power for positive change,
  you are, indeed, part of the problem

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• You miss 100 percent of the shots you never
  take.
• Wayne Gretsky

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• Theres no I in TEAM. But there is an I in
  WIN!
• Michael Jordan

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• Employers who dont treat applicants well are
  starting to pay for it.
• Tom Rath
• Global Practice Leader
• Gallup Organization

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• Good managers play checkers. Great managers
  play chess.
• Marcus Buckingham

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• The ability to individualize praise is what
  makes it special.
• Marcus Buckingham

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• There is only one valid definition of business
  purpose to create a customer.
• Peter Drucker

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• The man who has no imagination
• has no wings.
• Muhammad Ali

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• Opportunity is missed by most people because it
  comes dressed in overalls and looks like work.
• Thomas Edison

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• Tell me and Ill forget. Show me and I may
  remember. Involve me and Ill understand.
• Socrates

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• Your future depends on many things, but mostly
  on you.
• Frank Tyger