- Emerging Trends -

1. - Emerging Trends - Trustee Subcommittee for Human Resources April 13, 2009

2. HR FY09 Goals • “…the USNH HR office will take on responsibility for making recommend-ations to the HR Subcommittee Chair and to the Chancellor about emerging national HR trends and initiatives which should be described to the Trustees in advance of the internal management initiatives.” This presentation is for the purpose of providing trends as context for subsequent management recommendations and to provide an opportunity to establish direction for HR initiatives.

3. Friedman and Collins • “The World is Flat” T. Friedman - Education is a process not a place. Security is still an important concept for employees. However, employee security should be developed by moving away from reward for lifetime employment and towards concepts which invest in lifetime employability of employees. • “Good to Great” J. Collins - Those HR programs which make the difference between good and great are those policies and ideas which support the employer’s strategic interests and invest in business simplification.

4. Emerging HR Trends • Philosophical approach Employability– Move from policies which encourage lifetime employment to strategies which invest in lifetime employability Strategic – Invest in strategies which support emphasis on studentcentered, public employer goals Contemporary Compliance – Use best practice to develop response to changes in state and federal law

5. Lifetime Employment Strategies Lifetime employment policies emphasize and reward loyalty to, and stability with, the same organization Examples in USNH policy: • Longevity payment for years of service • Overtime policy as inherited from the transfer of PSC and KSC to USNH in 1963 • Shift differential with values from the early 80’s • Some aspects of traditional vacation and sick time • Some aspects of the tuition benefit • Compensation tools which emphasize job duties rather than individual skill attainment

6. Lifetime Employability Strategies Lifetime employability emphasizes investment in the employees’ skills and in organizational flexibility. Rewards and enhanced productivity provide employee security by investing in transferable and contemporary skills. Examples of potential new programs or policy: • Training, including online options for skill building • Tuition Benefit (increase in professional development) • Wellness incentives and healthy life style programs • Organizational and employee flexibility in work schedules including change in shift and overtime policy as well as new teleworking options • Funding for PEAK (Performance Enhancement And Knowledge building) awards • Support for community volunteerism • Succession planning

7. USNH Strategic Interests • Publicly prudent in cost; increased productivity • Supportive of diversity for student learning • Investment in technology • Emphasis on total compensation for effective recruitment of highly qualified workforce • Engaged workforce

8. Example of FY09 Goals • Online HR services development • Total Compensation statements • Business simplification initiatives including pay frequency study, EPAF (Electronic Personnel Action Form) uploads, immigration technology, and time reporting • Development of campus HR Master plan – KSC; Employment Climate Survey – UNH; Career Enhancement pilot – PSU; HR component to Institutional Strategic Plan – GSC • Campus-based Wellness councils and initiatives • Development of metrics for demographic change and modeling for benefits • Employee engagement in benefit cost reduction strategies

9. Compliance Federal and state employment laws have created needed change in USNH policy over the last two years in: • Family and Medical Leave for military families • Identity and Confidentiality of data • Civil Unions • Pension Protection As well as minor change in other areas of employment such as first responders, jury duty and many tax laws relating to employee benefits

10. Future Issues in Compliance Examples of laws passed with future implementation dates: • Disability policy (new amendments to the ADA) • “Ledbetter” Equal Pay provisions Examples of introduced but not passed legislation: • Paycheck Fairness, Employee Freedom of Choice, Family Friendly Workplace Act, Employment Non-discrimination, as well as safety, labor and leave proposals. • Healthcare initiatives

11. Summary • Trend to policies which support flexibility and productivity through investment in employees’ skill attainment • Trend to reduce rewards which are tied to continuity but not tied to contribution or organization strategic interests • Trend to invest in employee engagement strategies • Coming increase in compliance issues in compensation and employment

12. Summary of Potential USNH Initiatives New actions/goals • Emphasis on employee engagement in health, energy, employer strategic goals • Skill and Knowledge Attainment • Flexibility in work schedules • Emphasis on total compensation • Compliance • Productivity through business simplification and technology Traditional Programs of declining value • Legacy compensation programs (longevity, shift, overtime, PAT vacation) • Non-consumer engaged employee health benefits • Paper-based delivery of services • Compensation based on service rather than skills and performance

13. Potential Future Topics • Multi-Year Benefits Cost Containment Strategy • Options for training and skills attainment to enhance productivity and skills attainment • Current HR issues in federal compliance