HREvolution Moving from Tactical to Strategic

1. HREvolutionMoving from Tactical to Strategic Barbara Mitchell Cornelia Gamlem

2. You have to know where you’ve been to know where you’re going David McCullough, Author and Historian

3. 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 labor • Unionization attempts were ineffective.

4. 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

5. 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.

6. 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

7. 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”

8. 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

9. 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

10. The 21st Century Global Professional in HR (GPHR)—2004 SHRM membership surpasses 265,000 Enron, Worldcom, Arthur Andersen scandals Sarbanes-Oxley—2002

11. HR Challenges Now Growing shortage of skilled workers Generations at work Increase of contingent employees Globalization Technology & Communication Economic Factors

12. Growing Shortage of Skilled Employees Declining birthrate in industrial nations Aging population Previously valuable skills no longer required in our information driven economy

13. 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 terrorism • Multi-tasking is a common as breathing • Get information Facebook and Twitter • Privacy has less meaning • Email is too slow

14. 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

15. 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

16. 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”

17. 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?

18. Globalization Madeleine Albright, former Secretary of State, was asked at a book signing, “How do you stop globalization?” Her response was “You don’t.”

19. 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

20. HR Trivia When was the Employee Retirement Income Security Act (ERISA) into law? 1974

21. 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?

22. Benefit Communications Source: SHRM, State of Employee Benefits in the Workplace—Communicating Benefits

23. 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

24. 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.

25. 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

26. HR Trivia How much did Henry Ford pay his assembly workers in 1914? $5 a day

27. Henry Ford & Steve Jobs Industrialist Manufactured in the USA • Outsourcer Assembled in China

28. Economic Factors Unemployment Fiscal cliff Natural disasters Wall Street Banking crisis Sequestration Foreclosures

29. The Times they Are A-Changin’

30. 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?

31. HR Value Added • What does HR need to do to add value? • Encourage organizations to invest in talent • Lead using metrics and data • Commit to innovation • Ed Lawler, Director of the Center for Effective Organizations and Professor at USC

32. 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?

33. 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?

34. 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 34

35. 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

36. 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

37. Case Study--Zappos • How Zappos lives its values: • New hires are interviewed for culture fit • Every 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.”

38. Strategic Management • More agile and adaptable • More outward looking • More effective at addressing the demands of multiple stakeholders Ed Lawler and Christopher Worley Management Reset, Organizing for Sustainable Effectiveness

39. 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 39

40. Leadership Characteristics Integrity and honesty Visionary strategic planers Innovative and imaginative Business acumen Critical thinkers Work with ambiguity & address challenges 40

41. Developing Leadership Characteristics • Build awareness of your organization. • Network internally • Build relationships with colleagues outside HR • Participate in strategic planning with senior management • Participate in a task force that involves other functional areas in your organization

42. 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

43. Developing Leadership Characteristics • Embrace change • Get involved early in new ideas • View it as an opportunity • Lead the way to bring others along • Be Proactive • Flexible • Organized • Resilient

44. 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, SPHR CEO, SHRM (Ret.)

45. 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.

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