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Jack Smalley Director, HR Learning and Development Express Employment Professionals

Jack Smalley Director, HR Learning and Development Express Employment Professionals. June 19, 2013. j ack.smalley@expresspros.com. Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats. To access these slides, please go to. presentations.shrm.org.

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Jack Smalley Director, HR Learning and Development Express Employment Professionals

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  1. Jack Smalley Director, HR Learning and Development Express Employment Professionals June 19, 2013 jack.smalley@expresspros.com Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats

  2. To access these slides, please go to presentations.shrm.org and login using your Member/Customer ID and Last name

  3. Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats Old Economy Stable • Large company kept competitors at bay New Economy is Competition • Ability to anticipate, respond and adapt to threats • Eliminate bureaucratic structures • Prepare for organizational change in a minute’s notice • Or become EXTINCT! • Old business model vs. progressive business model Jack Smalley / June 19

  4. The #1 Movie of 1967 Live in a Different World • 75% of U.S. lives online - autos/farmers • From industrial revolution to dataknowledge revolution • If you understand it, it’s obsolete • Social media Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats There is a big shift to a Digital Economy

  5. “The topple rate” at which companies lose their leadership positions has more than doubled. Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats From: “The BIG eats the Small” To: “The Fast Eats the Slow”

  6. Engine of Innovation Getting suppliers to move fast Owning competitive advantage Institutionalizing innovation Business process management system Fast to Market Establishing guiding principles Financial flexibility Fast Decision- Making Sustaining Speed Constantly reassessing Adaptability Fast Thinking Forecasting & roadmapping Letting the best idea win Source: Jason Jennings and Laurence Haughton, “It’s Not the Big that Eats the Small … It’s the Fast that Eats the Slow”

  7. Microsoft executives were asked how they would break down the $450 billion market capitalization value of their company. “The stuff in people’s heads.” Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats

  8. Threat 1: Inability to Innovate Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats • If you do not have the best talent, you will not survive today. • HR must lead the organization to attract and retain the best talent.

  9. Where’s your weakest link? Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats 80% • of surveyed respondents who are currently employed • “would consider leaving their current job if presented with other opportunities.” • 40% will succeed

  10. Cyber Prowlers Not only is your competition watching your corporate actions on social networks, they are stalking your talent. Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats Of the 2,600 North American hiring managers surveyed, 45% use social-networking sites to research job candidates . Not a war for people/war for talent 12/10 more quit vs. laid off

  11. Beware of Hiring in Haste Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats only • Halo Effect • One candidate – multiple resumes • Was it a great hire or a polished applicant? • To easy to focus on wrong thing • Arrow vs. Indian 31% of average firms feel they selected their best pick. Look before you leap. 46%of resumes are falsified Don’t be distracted by the schoolcolors. Schools attended are not a guarantee.

  12. Threat 2: Losing Your Competitive Advantage Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats • HR must lead to increase employee engagement.

  13. Do you have an army of sleepwalkers? Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats The Opposite of Employee Engagement Employees who don’t leave – the under-performing and disengaged The “quit-and- stay” phenomenon There are 9-to-5er’s who show up to work everyday but who have “checked out” mentally.

  14. $300 Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats Employee disengagement costs businesses Over 13 million employees & over 32,000 business units surveyed show billion 67% in lost productivity every year. of employees in most companies are not engaged in their work. Customer retention vs. employee retention Are your profits melting away, employee after employee?

  15. Many companies underestimate the importance of their front line. Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats Approximately 50% 60% leave before they have been on the job for six months. Script the first 90 days. of the workforce are hourly employees. Disengaged stay for what they GET… Engaged plan to stay for what they GIVE!

  16. Threat 3: High Costs of Reckless Hiring HR must allow supervisors to participate in the hiring process then hold them accountable for retention. Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats

  17. Managers are not experts in hiring It is not essential to the job function Halo vs. Devil effect Biggest failure Lack of preparation Experience over “fit” Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats • 80% of turnover cost is related to bad hiring.

  18. Ask yourself: How much can we afford to lose? Most conservative estimates of turnover show costs anywhere from 50% to 150% times annual salary. For a professional making $50,000 How many $75,000 mistakes can you afford? Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats • Departure Costs • 85% of salary not uncommon • Hiring Costs • 7-20% of salary • New Hire Training Costs • 13% of salary • New Hire Productivity • 32% base salary

  19. Jack Smalley / June 19 Beware of turnover fever It leads to job sniffing To close the back door Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats I’m leaving! Maybe I should start looking… Why am I staying?

  20. Threat 4: Poor Leadership & Communication HR’s greatest contribution to organizational success Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats

  21. The organizations that exit the recession early and stronger. Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats • To the employee, the Leader is the company Pre-recession Employers not loyal Post-recession Employees not loyal • The messenger is as important as the message. • Relationships –Trust-Information-Success

  22. What’s on your dashboard? Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats Only 45% satisfied “I quit!” . One in two employees is looking to leave or has checked out on the job. Two-thirds of companies are more concerned about retention now than they were before the economic crisis. Worker satisfaction is at its lowest level since The Conference Board began measuring it in 1987.

  23. Toxic Work Environment Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats Do you know what it’s like to work for you? • Ask yourself these three questions: • Do you know how to push without being rude or obnoxious? • After someone talks to you, do they feel like they have more or less energy? • Do employees feel like you have their backs? Just because you have talent in your field doesn’t mean you’re a great leader.

  24. Leadership is the #1 reason talent leaves Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats Managers and Leaders influence each… 32% Need for advancement 22% Pay and Benefits 20% Lack of job fit 17% Mismanagement

  25. Continuous Learning Is Crucial to Maintaining and Managing Talent Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats ….according to Jim Collins The mismanagement of human resources is one of the main reasons many “Good” companies never become “Great.” 51% 50% from the same surveyed organizations feel the skills of their current workforce do not match today’s market challenges. of organizations surveyed feel their executives have a gap of leadership level skills.

  26. Jack Smalley / June 19 Remember! Employees don’t quit companies, They quit bosses! Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats

  27. Threat 5: Regulatory Nightmares HR must lead through the regulating minefield Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats This country has come to feel the same when Congress is in session as when the baby gets hold of a hammer.”  ~ Will Rogers

  28. Top Business Risk Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats Growth of economy is small businesses • Fear of growing The total cost of federal regulations to employers has increased over $1.75 trillion.

  29. What’s keeping you up at night? Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats • Federal, state, and local restrictions • Background checks • Hiring, firing, and employment regulations • NLRB’s self-imposed muscle • Social media protections • Healthcare Reform • Legalization and medical use of marijuana • Class Actions

  30. Department of Labor (DOL) 2011 26,815 charges Lawyers predicting $1B annually in near future 91% class action lawsuits involve wage/hour claims Doubled number of investigators Guilty until proven innocent Willful violators Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats

  31. Department of Labor (DOL) cont. Website instructs on filing claims iPhone app tracking hours worked Going after misclassified exempts Volunteer work Independent contractors Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats

  32. EEOC Discrimination and retaliation cases at highest level since Title VII became law in 1965 99,947 charges Less employees Retaliation charges new #1 $455.6M paid by employers Record number of million dollar settlements Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats

  33. Light at the End of the Tunnel? Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats

  34. Why are the Best CEO's turning to HR to solve the Top 5 Threats? Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats

  35. Jack F. Smalley, SPHR Director, HR Learning and Development jack.smalley@expresspros.com Jack Smalley / June 19 Why CEOs are turning to HR to Lead the Organization Through Today’s Top 5 Threats

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