Emerging Trends in Human Resources

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

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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

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2003 SHRM

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
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2003 SHRM

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
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2003 SHRM

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 1. Aging population driving an increase in health care costs SOURCE: SHRM Workplace Forecast
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2003 SHRM

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
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2003 SHRM

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

% % % % % % % % % es o

% 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 years. period as long as The study, conducted by Harris Interactive, involved online interviews with more than , adults aged years to years. ( / )

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2003 SHRM

WHY Do you (Baby Boomers) want to work into retirement? To remain mentally and physically active I want to try new professions Earning money

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2003 SHRM

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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2003 SHRM

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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2003 SHRM

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
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2003 SHRM

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

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2003 SHRM

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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2003 SHRM

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
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2003 SHRM

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

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2003 SHRM

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

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2003 SHRM

The Top Seven People-Related HR Issues According to CEOs

1. 2. 3. 4. 5. Retaining Talent Attracting Talent with Critical Skills Improving Workplace Performance Gaining Control of Health Care Costs 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
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2003 SHRM

The Top Five Workforce Priorities According to CFOs

1. 2. 3. 4. 5. Developing Leadership Capabilities Increased Productivity Acquiring Key Talent Retaining Key Talent Measuring Human Capitals Contribution to Business Performance

SOURCE: Mercer HR Consulting

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2003 SHRM

The Top Five Challenges for HR Managers

1. Ensuring compliance with federal and state employment law 2. Retaining talent in an improving economy 3. Managing performance 4. Developing leadership 5. Dealing with rising health care costs

SOURCE: Business & Legal Reports 5/06

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2003 SHRM

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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2003 SHRM

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
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2003 SHRM

People quit their manager, not their company.

Marcus Buckingham

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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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2003 SHRM

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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2003 SHRM

The Words of Coretta Scott King

It doesn t matter how strong your opinions are. If you don t 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

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