Posts Tagged ‘workforce planning’

Why Human Capital Isn’t Enough

Thursday, January 26th, 2017

It’s pretty common today to hear leaders and organizations talk about “human capital.”

I can still remember when that term started frequenting our vocabulary a few years ago. As an HR leader, it felt like we’d stumbled onto something that might finally help us earn our legitimate seat at the executive table.

After all, most executives worship capital. Possessing financial capital usually means we are flourishing and able to seize opportunities. Capital is power.

So, finding a way to talk about employees and talent as a form of capital was brilliant. Even the CFO seemed to be on board with acknowledging that there was a real value in the collective knowledge, skills, and abilities of our employees. And, like any asset, if you make continued investment in it over time, the value steadily increases.

As a result of human capital being more widely used and understood, our talent management practices became intensely focused on developing employees’ individual competencies. The more each individual acquired skills and abilities, the more our human capital grew.

This model was highly effective when executed well. Jack Welch became a legend in part because of the training and development efforts he funded at GE. Human capital was seen as a competitive advantage by many.

But, then the game changed. The internet and social technology emerged to connect the world together in a way that had been unthinkable in the past. The days of doing work independently faded rapidly, and it became imperative to work together in collaboration.

Evidence of this shift can be seen everywhere. An online encyclopedia populated exclusively with user-contributed content nearly put traditional encyclopedias out of business. And, the most powerful operating system in the world was created by a community or programmers with no formal organization to manage their work.

The very nature of how we work and create value shifted.

The human capital model of human resources is incomplete, because it doesn’t account for the importance and value that exists through relationships. In today’s world, work is done together. And because of this, a new and highly valuable kind of capital has emerged: social capital

In order to compete effectively today and in the future, human resources professionals must not only work to build human capital, but also social capital. This will requires taking on new roles and skill sets for our organizations.

If you are are an HR professional or manage HR for your company, please join me on March 9 at the HR Management Conference to explore how HR must embrace our new role as Social Architect.

 

This is a guest post from Jason Lauritsen who will be speaking at CAI’s upcoming HR Management Conference on March 8 & 9th in Raleigh. Jason has been described as “a corporate executive gone rogue.” For nearly a decade, he spent his days as a corporate HR leader where he developed a reputation for driving results through talent. As Director of Client Success for Quantum Workplace, he leads a team dedicated to helping organizations make work better for employees every day.

How Effective is Succession Planning in your Organization?

Wednesday, December 28th, 2016

Succession is defined as the right, act, or process, by which one person succeeds to the office or rank of another.

How is the succession of your organizations’ talent happening?  Do some of your employees have implied “rights” to specific positions? Does their “time in grade” entitle those who have “paid their dues” to simply move into a vacated senior position regardless whether or not they are the most qualified or possess the most potential?

Does your organization use the “replacement” method of succession whereby a successor is simply chosen from a ‘short list” of employees that a select group of managers have compiled behind closed doors?

Or does your HR organization provide a collaborative process that brings leaders together to discuss designated positions and relevant potential talent as possible candidates? This of course, is the most effective and desired state.

If your succession process is not of the “desired state” mentioned above, then you are missing out on an incredible opportunity to enable your
business as well as potentially putting your business at risk by not filling opportunities with the top talent within your organization.

How do you get started?  Here are the first 3 steps:

  • As an HR business partner, you first need to be sure you completely understand your business and its current / future strategy and goals.
  • You then need to understand your organization’s key positions that drive and impact your business.  This includes not only key leadership roles but also positions with specialized skills that are challenging to find and or develop.
  • Next, and most importantly, you need to get buy-in from your GM/CEO, key leaders, etc. in the development and implementation of a succession process for your business. Although HR should own this process, succession is not a standalone HR “project” and needs to be done collaboratively and with the support, understanding, and buy-in of senior leaders and other key stakeholders.

Many small and medium-sized businesses fall into the trap of not implementing a succession plan, just like many people put off creating a will. While there are many other key considerations and variables that go into a developing a succession plan, don’t look at the process as insurmountable. CAI can help bring order to the process and partner with you along the way.

Rick Washburn leads the Advice & Resolution team at CAI. In his role, he advises executives and HR professionals on strategic and organizational issues, tackling subjects ranging from employee engagement to talent management. With his 25 years experience in HR management, Rick is uniquely poised to advice and lead businesses to successful HR strategies.

Broaching the Subject of Retirement with Employees

Thursday, May 12th, 2016

Baby boomers retiringWith more millennials entering the workforce and baby boomers preparing to move out of workforce, the question often comes up “Can we ask Tracy when s/he plans to retire?”    Just to be clear, although social security has a retirement age to qualify for benefits, there is no mandatory retirement age for most employees.  (Some exceptions exist for airline pilots, federal law enforcement officers, firefighters, air traffic controllers, and bona fide executives or high policy makers.)

So can you ask employees about retirement and if so how?  The short answer to this question is a qualified yes, as long as you handle it appropriately.  When done wrong, particularly if you badger the employee, mention “generational words,” or when a supervisor keeps asking, pushing, and treating someone badly for giving a “wrong answer.”  The time and place also matter.  If we never ask the question and all of a sudden start asking all of our employees over 55 when they plan to retire could at the very least cause a morale problem.

Nonetheless, there is nothing inherently wrong with asking any employee about their future plans, and companies need to know that information for many reasons.  The fear of being accused of (or sued because of) age discrimination sometimes makes employers hesitant to ask about retirement.  So in what ways can you broach the subject of an employee’s retirement plans?

  • When an employee has mentioned they are thinking about retirement, you can ask them if they have a date in mind and that you would appreciate if they would give you ample notice to find someone to fill the job and perhaps have them train the person.  If they are not receptive or do not have a date in mind, be sensitive and follow-up in an appropriate way at a later time.
  • For workplace planning purposes, especially in key positions or those that have a longer learning curve/training period in job specific methods.
  • Through a policy that says if you are planning to retire, please give us as much notice as possible so that we can discuss options for training someone to fill the position as well as options for phased retirement (if that is something the Company would consider).
  • Through voluntary early retirement incentive plans that offer a severance to employees who meet a minimum age and number of years of service with a company and elect to take the package.  These should be carefully developed keeping in mind the needs of the business and compliance concerns.  They are generally used when a reduction in force is required and in lieu of an involuntary RIF.  An employment law attorney should be consulted in drawing up such agreements.
  • But what about when you have a great employee you hate to lose but you sense retirement may be in the cards?  In this case, ideally the person having this conversation with the employee has a good relationship with them and ideally that would be the manager.  The idea of retiring is stressful for many employees so we want to be delicate.  The annual review is a good time to venture into this territory particularly when discussing plans for the next year.  You can simply ask, “So Ted, what are your plans for the next year” and see where the conversation takes you.  You are asking merely for planning purposes.  Again, don’t push or badger them for an answer.  You just want to open the door.  It’s ok if they don’t want to walk through that door now.

Options for a smooth transition for the company and employees who plan to retire may include offering phased retirement, where employees gradually reduce their hours as they continue to work part-time until full retirement or while they train and transfer knowledge. Also, upon receipt of the unexpected notice that an employee plans to retire, the company may offer incentives to retain the employee through a training period for a new employee filling their position (be sensitive to the term “replacement” as no exiting employee wants to feel like they can be easily replaced).

Whatever the case, employers should always be prepared for employees leaving, whether through retirement or leaving for another job.  Workforce planning should be an on-going strategy, documenting processes, cross-training where applicable, and maintaining succession plans.  Absent a contract, employment is at-will (either the employee or the company can end employment at any time).  So why should notice of retirement be any different than an employee’s choice to take another job and give notice? The point is, don’t get caught off-guard.  Be prepared whatever the reason.  Let us know if we can help with your workforce management and planning.

Plan Now for Long-Term Staffing Needs

Thursday, May 5th, 2016

When solving a problem, there are usually two positions from which to attack — reactive and proactive.  There was a time when a reactive approach was sufficient to fill open positions in a timely manner.  However, as the competition for top talent continues to increase, Human Resources professionals have to incorporate a more proactive approach to staying on top of recruiting needs.

Today’s HR professionals are normally swamped with responsibilities such as benefits administration, time tracking, regulatory and compliancetemporary employees reporting, payroll management and other reporting projects. These additional tasks leave little time to adequately recruit for an opening before the position must be filled. Therefore, you may not always end up with the best candidate due to a shortage of time.  “Often times companies enlist the help of temporary staff to help free up staff, so they can focus on these types of longer term needs,” states CAI’s Molly Hegeman.  “Assessing your team’s bandwith upfront will be critical to your success.”

Recruiters have begun thinking beyond the immediate needs and are taking steps to identify and plan for the long-term with regard to staffing.  Using data already available, HR professionals are forecasting future job openings months, or even years, in advance to proactively begin recruiting now.  This provides an organization with a recruiting advantage when competing with other companies for top talent.

Here are a few things you can do to help create a proactive recruiting strategy:

Identify Strategic vs Tactical Roles

Every role is important to the organization, but some roles are more important than others.  Take each role within your company, from top to bottom, and define it as strategic or tactical.  Strategic roles incorporate the overall strategy and vision of the company. Tactical roles are responsible for executing the plan by working together on the goals of the company. This distinction will help to assign priorities when recruiting for multiple positions.

Define Ideal Candidate Traits

List the traits of your ideal candidate for a specific position.  In addition to technical skills, education and experience include characteristics that are important for the candidate to fit in with the corporate culture, values and principles.  Look for the ideal soft skills for the best overall fit in a new recruit.

Research Supply and Demand

Some HR professionals with years of experience at a company, and in a specific area, may already have a working knowledge of the availability of candidates for open positions in their industry.  There is no substitute for hard data, however.  Take advantage of surveys and statistics regarding in-demand job skills, which competitors are hiring, compensation figures and other data to understand the level of difficulty required to fill each in-demand role within your organization.

Create Your Pipeline Now

Begin to create your long-range pipeline of candidates now by starting discussions and building relationships with “passive” candidates via social and professional networks such as Facebook, Twitter and LinkedIn.  Posting information about the types of positions your company routinely recruits for is a good way to attract candidates to your website and open a channel for communication.  Searching these networks for skill sets will lead you to potential candidates who may not be looking for an opportunity, but would like to hear more about your company.  Starting conversations and interaction early will create “warm” leads when you begin to actively recruit.

renee

 

CAI Advice & Resolution team member Renee Watkins is a seasoned HR professional with a diverse background in Human Resource. Renee provides CAI members with practical advice in a wide-range of human resource functions including conflict resolution, compliance and regulatory issues, and employee relations.