Top Five Workplace Trends: Awareness and Action

1. Top Five Workplace Trends: • Awareness and Action A Society for Human Resource Management Presentation

2. “Even if you’re on the right track, you’ll get run over if you just sit there.” - Will Rogers

3. “The HR profession is driving the most successful companies in the world.” - Jim Collins

4. SHRM® 2004-2005 Workplace Forecast www.shrm.org/trends

5. Top five trends covered by the Forecast: • Rise in health care costs • Focus on domestic and global safety and security • Use of HR technology for employee communication, e-learning and to perform transactional HR functions • Preparing for the next wave of retirement and labor shortage • Exporting of U.S. jobs to developing countries

6. Top five trends covered by the Forecast: • Rise in health care costs

7. Projected Employer Health Care Costs Percent of projected cost increase Source: Hewitt & Associates (October, 2004), Analysis of the Hewitt Health Value Initiative

8. 2005 Watson Wyatt Health Care Findings: • While health care cost increases have been in the double-digits for several years, the rate of increase has been slowing since 2002. • Employers seem more willing to absorb cost increases rather than pass them along to employees. • More employers providing information on specific health issues and provider quality. • Source: 10th Annual National Business Group on Health/Watson Wyatt Employer Survey of Trends in the Health Care Marketplace. (March, 2005).

9. Problem: Health care costs increased by 42% in 2001. Solution: Listened to employees, taught them to be smarter consumers, provided more plan choices, rolled out wage-based premiums and shifted resources from benefits that employees did not value highly (such as life and disability plans) into their health care offerings. Source: Watson Wyatt (Dec, 2004). Strategy@Work

10. Ask Questions Such As: • HR professionals may find solutions by paying attention to trends within the organization. • What are employees saying about their health care experience? • What procedures and prescriptions are driving plan increases? • What is the existing level of employee understanding of health care options and wellness?

11. Top five trends covered by the Forecast: • Rise in health care costs • Focus on domestic and global safety and security

12. Stealth Expatriates Exposed Percent who believe there are stealth expatriates in their organizations. Source: Cendant Mobility/ Worldwide ERC. “The Hidden Worker: The Reality of Stealth Expatriates”.

13. Reasons Behind the Trend Percent who believe these are the reasons stealth expatriates exist in their organizations. Source: Cendant Mobility/ Worldwide ERC. “The Hidden Worker: The Reality of Stealth Expatriates”.

14. Complaints of Identity Theft by Year ** Employment-related theft constituted 13% of reported identity thefts overall in 2004. Source: FTC’s Identity Theft Clearinghouse

15. Top States for Identity Theft (2004) Source: FTC’s Identity Theft Clearinghouse * Number of victims per 100,000 of the population

16. Top five trends covered by the Forecast: • Rise in health care costs • Focus on domestic and global safety and security • Use of HR technology for employee communication, e-learning and to perform transactional HR functions

17. Problem: Effective onboarding in light of 48% employee turnover. Solution: Developed an onboarding process that includes 16 weeks of job shadowing, performance reviews and knowledge tests. Implement software that creates reports on new hire’s progress that go to the individual manager of the new employee. Source: Watson Wyatt (Dec, 2004). Strategy@Work

18. HR Activities Supported by HR Technology Source: Collison, J. (2005) “2005 HR Technology Survey”. Society for Human Resource Management. Retrieved from www.shrm.org/surveys

19. Success of HR Technology Systems Source: Collison, J. (2005) “2005 HR Technology Survey”. Society for Human Resource Management. Retrieved from www.shrm.org/surveys

20. Success with HR Technology Systems? Source: Collison, J. (2005) “2005 HR Technology Survey”. Society for Human Resource Management. Retrieved from www.shrm.org/surveys

21. Functions with High Potential, but Low Effectiveness Source: The Conference Board (2005) “Establishing Value for HR Technology” survey. Pg 8.

22. Questions for HR professionals: • What is a senior executive’s definition of value? • Does HR contribute to the creation of that value? • How can HR execs use technology to prove that HR as a function adds value to the organization? • How successful has technology been at providing the tools to create value? • What are the roles and responsibilities of the application vendors providing the software? • Have HR departments correctly applied these tools for their own betterment and advertised successes? Source: The Conference Board (2005) “Establishing Value for HR Technology” survey. Pg 13.

23. CEOs: Staffing is a top priority 42 percent of U.S. CEOs and 66 percent of Asian CEOs say that the availability of skilled labor is their number #1 or #2 top concern. Source: Conference Board. “CEO Challenge 2004: Perspectives and Analysis”.

24. Top five trends covered by the Forecast: • Rise in health care costs • Focus on domestic and global safety and security • Use of HR technology for employee communication, e-learning and to perform transactional HR functions • Preparing for the next wave of retirement and labor shortage

25. Climbing out the Hole: Employment Data SHRM/Rutgers Leading Indicator of Nat’l Employment (LINE): Increase in number of vacancies each month since Dec. 2004. BLS National Unemployment Rate

26. The Aging U.S. Workforce Projected numbers of older workers Source: U.S. Census Bureau and U.S. Administration on Aging

27. The Aging U.S. Workforce Source: U.S. Bureau of Labor Statistics, 2000

28. HR’s Response to an Aging U.S. Workforce Source: Schramm, J. (2005) “SHRM Workplace Visions: The Future of Retirement”

29. Top five trends covered by the Forecast: • Rise in health care costs • Focus on domestic and global safety and security • Use of HR technology for ee communication, e-learning and to perform transactional HR functions • Preparing for next wave of retirement and labor shortage • Exporting of U.S. jobs to developing countries

30. Offshoring Projections Number of U.S. jobs moving offshore by 2015 in millions Source: Forrester Research

31. Occupations at Risk of Offshoring Represented 11% of U.S. employment in 2001. Salaries averaged $39,361. Source: Bardham & Kroll (2003). “The New Wave of Outsourcing”. Univ. of Calif., Berkley.

32. To Offshore? Or Not to Offshore? HR must be involved in the discussion! Potential benefits? Savings and increased availability of labor, expanded customer service, improved quality, and revenue potential in new market. Potential obstacles? Training, cultural and language barriers, difficulty in managing a remote workforce, inability to communicate corporate values and goals, morale problems with existing workforce, and a potential negative public image.

33. If “knowing is half the battle,” the other half is taking action based on what you now know.

34. Ask Yourself: • How can I continue to make progress on your organization’s strategic and workforce goals? • Will the trend impact you more/less than your competitors? Will it be an issue in the future? • How are others our market handling the issue? • What can I do now to prepare and present solutions to your leadership team? • Are you able to discuss the trend in the language that’s meaningful to leadership?

35. Use your available resources, including SHRM, your local SHRM state council and affiliated chapter. www.shrm.org

36. “The very essence of leadership is that you have to have vision. You can't blow an uncertain trumpet.” - Theodore Hesburgh (President of Notre Dame University, 1952 to 1987)

37. Top Five Workplace Trends: Awareness and Action • Thank-you A Society for Human Resource Management Presentation