Tag Archives: human resources

Workforce Planning in 2018: An Ever More Urgent Need


HR signIn the late 1990s, I was a part of my employer’s early efforts at workforce planning. At the time, workforce planning seemed to be a discipline in its infancy.

Our workforce planning was mostly about numbers: How many employees could we afford in various divisions of the company? Would retirements in our aging workforce cause problems in our ability to produce product?

It took a few years for our company’s leaders to move beyond the demographics to consider the skill sets needed in a changing environment. Which skill sets did we have too much of? Which would be required in the next decade, and could we grow those skills internally or would we have to hire to fill our needs?

I argued at the time that workforce planning was the strategic layer behind every Human Resources discipline. I said workforce planning was the practice of defining who the right employees were, when and where they would be needed in the workforce, and all the tools needed to hire and keep those employees—the compensation and benefits and perks, the employee relations and employment branding practices, the training and leadership development, etc. Everything designed to get the right people in the right jobs at the right time was a part of workforce planning.

Unfortunately, some of our corporate managers never could make the shift beyond thinking about workforce planning as headcount. Those managers themselves were part of the skill sets we no longer needed—we would have to seek out more visionary leaders to take their places. It took years and years of arguments to move to a more strategic view of workforce planning.

I was intrigued to read a January 30, 2018, article on SwipeClock.com by Cary Snowden, entitled Defining Your 2018 Workforce Management Strategy. In the twenty or more years that workforce planning has been around, what has changed?

Mr. Snowden starts by defining workforce planning:

“The definition of workforce planning describes a continual business planning process. It’s a long-term, ongoing effort that expands as the organization grows. This isn’t a quick fix, so settle in and prepare for the long haul.”

Clearly, Mr. Snowden sees workforce planning as a strategic component of Human Resources and general corporate management work. He says it is not just a short-term effort, but “also includes forward-looking plans for organization growth, new talent acquisition, and management of outsourced third-party services.”

Change the Organization’s Design to Get Different Results; But Be Careful . . . You Will Get What You DesignBut it appears that the same barriers I faced in the late 1990s are still around. Organizations focus on immediate needs, rather than a long-term look at what workers they will need, even though “Workforce planning is a long-term game that requires patience and finesse,” according to Mr. Snowden. Gathering the data is hard and requires robust information systems and mining capabilities.

But data-collection and -mining systems have come a long way in two decades. My workforce planning efforts were based largely on an Excel spreadsheet. I could capture demographic data from our HRIS system, but despite my desire to move on to skills development, defining the skills of the current workforce and predicting the needs of the future were largely beyond my capabilities. As Mr. Snowden puts it, my company was largely operating on hunches, when good data were needed.

The five-step strategic process that Mr. Snowden outlines is similar to what we tried to do back in the late 1990s:

  1. Establish a strategic direction for your workforce, based on the changing skills needed for the products and services your company plans to offer and the financial models you are using.
  2. Analyze the existing workforce and determine gaps, whether those gaps are in numbers or skills.
  3. Create an action plan to address the gaps.
  4. Implement the plan.
  5. Monitor, analyze, and evaluate . . . which includes circling back as your strategic plan for the organization changes and more changes are needed in your workforce.

Described in these “simple” five steps, the planning process for workforce planning is no different than any other planning process. What makes workforce planning so challenging and unique is the difficulty of having the vision and accuracy to predict what skills your business needs and what you need to do to find, attract, and retain high-caliber people who will achieve your business goals, while at the same time relinquishing the people who can no longer contribute as needed.

According to Alan Mellish, in an article published on March 27, 2018, on HCI.org’s blog, entitled Workforce Planning in a Fast-changing Economy: Common Pitfalls to Avoid, here are some things to watch for:

  • Waiting for all the data (you’ll never have it)
  • Not aligning your workforce planning with your business needs
  • Not prioritizing the roles that will make the most difference for your business going forward
  • Failure to integrate data from inside and outside the company

Today’s trends such as economic growth, trade disputes, changes in labor and other regulations are factors to include in workforce planning. Every business will see different impacts from these trends and from issues specific to your industry and market.

The labor market is tight these days, particularly in highly desired skill sets. Over 6 million job openings are unfilled in the current market. You will have to do a better job at workforce planning than your competitors. Are you ready?

What successes and failures has your business had with workforce planning?

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Is HR Still Relevant? Only If We Can Keep Up With the Speed of Change


HR wordleThis past summer, I read an article on TLNT.com asking “Is there still a need for HR?” Of course, as an Human Resources publication, TLNT.com answered yes.  And as a former HR executive, I think the answer is yes also.

Then I read another article on McKinsey.com on getting ready for the future of work. This article focused on the increase of artificial intelligence and what that will mean for organizations in the years ahead.  According to McKinsey, at least 30 percent of the activities associated with most occupations could be automated—including knowledge tasks.

It dawned on me that in my working career of thirty-some years, there have been two major shifts in what constitutes work for many people. The first shift arose with the computerization of what used to be manual tasks, vastly increasing the productivity of repetitive work. The second shift came with the speed of communications and data transfer, so that now many roles can be performed anywhere.

It could be that artificial intelligence will be a third momentous shift in work, if machines in the future will not only perform the processing tasks that humans now do, but also the thinking and conceptualizing roles that we have assumed differentiated human beings from non-human.

These huge changes in what constitutes work are significant because they have happened so rapidly. Shifts of this magnitude used to come only once in a century or every few centuries. Think of the Industrial Revolution, when machines started doing what human and animal labor had done before. Think of how locomotion shifted from wind or animal power to motorized power. We now move as fast as we can find power to move us—on land, water, air . . . and even space.

Why do I raise these subjects in a discussion about Human Resources?

HR signBecause to remain relevant in the future, HR must have ready the right talent the organization will need at the right time in the right place. We have barely dealt with the skill sets needed to handle digitization. We still don’t really have our arms around the globalization of the workforce permitting employees and those in the gig economy in disparate locations to form project teams that ebb and flow as the work requires. Yet we may soon be asked to manage the intersection between human and artificial intelligence, when most HR people have no understanding of the possibilities of AI.

And we need to help employees prepare themselves to adapt to changing and ever more complex roles. Job changes in the future will be less about moving from company to company in the same field and more about complete shifts in what work we do and how we do it.

Are HR’s abilities to predict the skill sets of the future sufficient to the task of helping employees keep up? I doubt it.

HR strategists today say that fostering organizational culture is one of the core strengths HR can bring to an organization. But are we prepared to develop a global culture that incorporates not only human capabilities but also includes AI in the work world of tomorrow? I doubt that also.

The McKinsey article argues that lifelong learning is the only way that humans will maintain their employability in the future. That goes for HR professionals as much as for any other worker.

As Jeff Dieffenbach, associate director, Massachusetts Institute of Technology Integrated Learning Initiative, is quoted as saying in the McKinsey article:

“While change is accelerating, one thing that is definitely not is the neuroplasticity of the brain. In other words, the rate of change in the world may have surpassed the speed at which the human mind can process those changes.”

That goes for HR brains as well as those of other workers. Frankly, I’m not sure HR will survive in a recognizable form. The machines may take over from us.

What do you see ahead for HR?

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Remembering September 11: Lessons in Crisis Management


National_Park_Service_9-11_Statue_of_Liberty_and_WTCI’ve written several posts about crisis management, so it surprised me to realize that in over five years of blogging, I’ve never written about my experience on September 11, 2011. I’ve barely mentioned that date at all, even though the heartbreaking day not only shook me personally but provided a huge opportunity for learning as an HR executive.

I lived and worked in the Central Time Zone at the time, an hour behind the East Coast. I was in an early meeting with other members of the Human Resources staff in my company that Tuesday morning. Shortly after we started the meeting, an administrative assistant came into the room to tell us that an airplane had struck the World Trade Center. We acknowledged the tragedy, but continued our meeting. Then a few minutes later, she reported that another plane had struck the other tower. At that point, it was clear that the collisions were intentional—the U.S. had been struck by terrorists. We stopped our meeting, and those of us on the company’s crisis management team, including myself, gathered to determine the impact on our company.

It might seem that a corporation a thousand miles away from the attacks should not have any issues, but our multinational company had locations around the U.S., including on the East Coast. We had employees traveling on business. We had thousands of employees throughout the nation concerned about family and friends near the affected sites. And everyone, of course, was fearful of another strike.

Through the course of that day, we worked on the following issues:

— We immediately began providing the best information we could to employees. For the first time ever, we allowed the intra-company communications monitors at each major location to broadcast national news, rather than static screens of company news. A few departments had televisions going all day long, but we wanted employees working in departments without televisions (i.e., most employees) to have ready access to information as well. Yes, productivity suffered, but it would have anyway, and making the information easily accessible was one way to show employees we cared about their concerns.

— Our Travel Department searched the travel records of all employees away on business and contacted them to determine if they were safe (they were). Because all flights in the U.S. were canceled for the next few days, we also started making alternative arrangements get those employees home. In many cases, we had to authorize one-way rental cars from the coasts to get people home. These were expensive trips, but we knew the most important thing was getting employees back to their families during this national crisis.

— We also assisted vendor and customer representatives on our sites to make arrangements to return to their homes also.

— We prepared a video message for our CEO to deliver to all employees. By midafternoon on September 11, our communications experts had recorded our CEO in a video that we put on our monitors and on the company intranet site. The CEO conveyed his sympathy to those inside and outside the company impacted by the catastrophe and said that he and other corporate officers were as devastated by the day’s events as everyone else. He also provided information on how we were handling the crisis — that the company had located all of our traveling employees and determined none had been on the downed planes and that we were working to bring the others home as quickly as possible.

— We brought in grief counselors to our major locations to conduct group sessions with employees who were emotionally distraught by the day’s news, and provided information on our Employee Assistance Program in case employees wanted more individualized counseling.

Our crisis management team continued these activities for several days, until the nation and its transportation system returned to normal. But, of course, nothing has been the same in the sixteen years since those awful events.

I learned that day the reality of the importance of communications during a crisis. It is one thing to read articles on crisis management, like this one. It is another thing to live it and to know that what you are doing is having an impact, for better or for worse, on the morale of your organization.

I learned it is important to not only communicate facts but empathy as well. Company leaders and managers must seek out and pass on accurate and timely information. But good leaders must also be emotionally congruent with others in their organization. This emotional support is critical, even though at the same time management is providing direction and channeling people’s energy toward productive activities. And leaders must recognize that sometimes the most important thing is to pause and acknowledge feelings before productive behaviors can resume.

A crisis can be an opportunity to bring an organization closer together, but only if it is managed well.

What lessons have you learned while handling a crisis?

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Employer Health Care Benefits — Preparing for 2018


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I last wrote about health care in late March, shortly after the House of Representatives failed to bring the American Health Care Act (AHCA) to a vote. Since then, after a few amendments, the House did pass the AHCA, but with all the other brouhahas in Washington over the last few weeks, it’s questionable whether the Senate will get to health care anytime soon.

There are some good provisions in the AHCA as passed by the House. Among other things, the AHCA makes the following changes to Obamacare:

  • The individual mandate was repealed, as was the employer mandate;
  • The 2.3% medical device tax was repealed;
  • The net investment tax was repealed, as was the .9% Medicare high earner tax;
  • The Cadillac tax for expensive plans was delayed (and will probably never be permitted to take effect, since neither Republicans nor Democrats like this provision); and
  • Health Savings Accounts were expanded, effective in 2018

All of these provisions provide less government control over the health care marketplace. In the long run, these changes would generally be helpful for employers.

Still, as most people recognize, without an individual mandate, some incentive is necessary to get healthy people to opt into health insurance before they get sick and to maintain that coverage. The AHCA continuous health insurance coverage incentive replaces the individual mandate penalty. This incentive operates much like HIPAA certificates of coverage. As long as they do not let their health insurance lapse for more than 63 days, individuals cannot be charged higher premiums because of preexisting conditions. Moreover, the premium penalty for the first plan year cannot exceed 30%.

There is an exception to this 30% limit, but the exception permits insurers to charge late enrollees with pre-existing condition higher premiums only if the state has waived the community rating rule and the state has established a high-risk pool to help people with preexisting conditions fund their coverage.

The AHCA is far from a perfect bill, and it is likely to face substantial amendments in the Senate before it comes to a vote in that chamber. And Congress has many other priorities this session as well. So what will happen with respect to health care legislation by the end of the year is anyone’s guess.

Nevertheless, we are at the time of year when many employers are examining their options for health plans for their employees for the year ahead. What should employers do in this time of uncertainty?

Obamacare, the Affordable Care Act, is still the law, so until Congress acts, employers must comply with the mandates and reporting requirements. With the individual mandate in place, employees will want to know their employer-provided health care options in a timely fashion.

Moreover, although the Cadillac tax has been kicked down the road and its ultimate implementation is uncertain, avoidance of the tax—or preparation for it—will take time to structure.

For 2018 at least, the current employer responsibilities are likely to remain in place. Employers must continue to manage their benefit plans, tweaking them as makes most sense for their workforce. There remain many reasons why employers should support their employees’ health and wellness if they want to be employers of choice.

Employers, what concerns you the most about health benefits in 2018?

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What Does the Trump Administration Mean for Human Resources?


human-1181577_1280The next several months—and likely the next few years—will be a roller coaster for Human Resources professionals. The differences between the Obama Administration and the Trump Administration are stark in many government arenas, but labor and employment is surely one of the areas where the differences are the most dramatic.

Here are some of the most likely changes that HR will have to address with their organization’s management in the short-term:

1. Immigration

Immigration practice is likely to change, with some changes coming quickly and others developing over the course of several months and years. In the short term, E-Verify will be expanded to check all new workers, and I-9 forms are likely to see increased audits. Industries that are dependent on immigrant workers—both high-tech companies needing H1-B visa holders and those like hospitality firms that need manual and service workers—are likely to see a slow-down in their ability to bring in foreign workers. HR will need to have compliance programs in place.

2. Overtime

The Department of Labor changes to the overtime exemption rule will likely be reversed. Business had objected strongly to raising the exempt salary threshold to $913 per week ($47,476 per year), though most organizations had begun—or even completed—their transition to this increased bright line between exempt and nonexempt positions. Currently, the rule is in limbo, as a federal court has enjoined its implementation, but how the court will rule finally is unknown and the timing uncertain. The new Department of Labor could decide to drop its defense and let the injunction become permanent. Or DOL could propose some modifications. HR will need to advise management on whether to retain changes that have already been implemented and communicated, whether to reverse them, whether to take a “wait and see” approach, or some combination of all of these.

3. Health Benefits

The Affordable Care Act (Obamacare) will change. But the scope and direction of the modifications and repair of this complex statute and its even more complex regulatory scheme have not yet been determined. At the moment, HR can’t do anything, but this is an area that will necessitate time and effort, no matter what happens.

4. Union Organizing

Many NLRB rulings are likely to be reversed. The timing of these changes will depend on when President Trump fills the vacant seats on the Board, but as soon as Republican appointees have a majority, it is likely that we will see a significant tilt toward management-favored positions. In the immediate future, some of the pro-union policies favored in the Obama Administration, such as “quickie elections” and the “persuader” rule (requiring attorneys and other consultants to disclose clients whom they advise on union organizing issues), should be axed. The broadening of the joint employer doctrine—which the Obama Administration had pushed—may also be rolled back.

5. Downsizing

Reductions in force in major employers are likely to receive increased public scrutiny. If jobs are moving overseas, employers need to be ready to justify their moves and to respond to possible Presidential attention.

And over the longer term, HR can add the following changes to its project list:

  • The Obamacare changes are a long-term issue. It is unlikely that employers will need to change anything for 2017, and even 2018 is uncertain.
  • State and local legislative developments will become a bigger area of concern. Issues such as minimum wage increases and paid family leave are likely to see more movement at the state and local levels than through Congress.
  • Diversity practices may get murkier. The mandate for affirmative action at federal contractors may be weakened or repealed, though Congress might push back on President Trump on this issue if he goes too far. HR will need to work with organizational leaders in determining the best diversity policies for their workplace.
  • Also on the diversity front, employees with strongly held religious beliefs may seek greater freedom to object to work assignments and/or to display signs of their beliefs in the workplace. With Christians feeling empowered and Muslims feeling threatened, greater religious tensions in some workplaces are possible. HR will have to assist managers in working through these conflicts.
  • Whether President Trump will support broader immigration reform and whether Congress can pass such legislation are unknowns at this time.

The Society for Human Resource Management has set up a page monitoring workforce developments under the new Trump Administration. It is worth following.

I’ll revisit these issues in a few months to see what changes have developed.

HR professionals, which issue do you most hope changes under the Trump Administration?

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Performance Management Isn’t About Deadwood


MP900341467I recently wrote about performance management and the abolition of performance reviews at certain companies. Then I read a Wall Street Journal article last week stating that one of Kimberly-Clark’s goals is “managing out deadwood.” So much for doing away with performance reviews at that company.

The article states that Kimberly-Clark has about a 10% total turnover (voluntary and involuntary), and that employees are expected to “keep improving—or else.” I don’t disagree with a focus on continuous improvement, and a 10% turnover is not excessive. Still, performance management and “managing out deadwood” are two different things in concept, if not always in the end result. And they have different consequences both from a legal and from an employee relations perspective.

From the legal perspective, talking about employees as “deadwood” can lead to complaints of age discrimination. See Herr v. Nestlé U.S.A., 2003 Cal. App. LEXIS 855 (June 12, 2003), described here.

Any indication that an employee over age 40 is past his or her usefulness is problematic. Of course, employees can be ineffective performers at any age, but the tendency at many companies that initiate performance improvement drives is to focus on employees who have been sitting around for awhile—and who tend to be in the protected age group.

From the employee relations perspective, it can be demoralizing to adequate performers to know that managers are snapping at their heels, that as soon as the worst performers are out, a continuous improvement drive will mean employees who are in the lower mid-tier are now at the bottom.

Yet a true continuous improvement program means there is always someone at the bottom. It’s not like one manager told me once, “We’re done—we fired all our poor performers last year.”

Despite my quip above (“so much for doing away with performance reviews . . .”), there actually is no disconnect between abandoning annual reviews and an emphasis on performance improvement. In fact, it may be easier to focus on performance issues with the more regular discussions between managers and employees advocated by such companies as General Electric, Adobe Systems, and others.

Whatever performance culture a company decides to adopt, the important thing is to train managers to handle it well, to avoid the legal pitfalls of only focusing on older low performers or others in certain protected groups, and to keep the emphasis both encouraging and disciplined.

Performance management isn’t about getting rid of deadwood. It’s about improving every employee’s performance—including that of managers.

When in your experience has a performance management emphasis caused legal or employee relations problems?

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The Lonely Role of Human Resources Professionals


HR wordle“I don’t think I can ever join their book club,” an HR acquaintance of mine told me one time about a group of employees in her division who socialized together. “I know too much.”

I was also in Human Resources at the time, and I’d been a corporate attorney before that. I knew exactly what she meant. HR professionals—and employment attorneys also—sometimes learn too much about the people they work with to be comfortable socializing with other employees.

office 2 people Y01VDYAX63HR can be a lonely profession. You know who is on a performance improvement plan. You know whose jobs are about to be eliminated. You probably even know who is having an affair with whom. In all these situations, confidentiality is important. There are few people you can share information with—and typically, the fewer the better.

As social media options expand, the choices that HR professionals must make become even harder. Do you “friend” or “follow” others in your organization, knowing that you might see posts about their off-work activities that could have implications at work? What if they post racist or sexist comments? What if they post a photo of themselves lifting weights at the gym when they have lifting restrictions at work? (Don’t laugh—it’s happened.)

Some HR employees set firm policies for themselves that they will not follow anyone from their company on social media. Some won’t use social media themselves. And yet, our co-workers are often our best friends. By limiting our social media and other communications, we limit our social interactions.

book BCLRC8HNEOI am in a book club with a senior HR manager in the company I used to work for. While we gossip about common acquaintances, she is discreet about what she says. I am no longer privy to confidential information about these individuals, but she still is. I respect and admire her circumspection.

I remember being in her shoes and not having anyone to talk to about particularly thorny situations—such as when a senior corporate employee had been accused of sexual harassment, or a well-respected employee had serious medical issues. Those were difficult and lonely times.

When I was in a senior HR role, I was fortunate to have a couple of fellow HR professionals whom I respected and trusted. Sometimes I felt comfortable using them as sounding boards to talk through difficult cases. I could role play with them or talk through likely responses from the employee in question.

But twice that I can recall I was involved in negotiating a severance agreement with the individuals who managed my trusted peers. I could not bring them into the situation, and therefore had no one to review the situations with. On another occasion, I had to discipline one of my HR peers for violating corporate policy. Again, since the individual was not being fired, I couldn’t talk about the case at all.

The higher up you are in Human Resources, the lonelier it is. The more you know about the organization and its future plans, the more prominent people you work with, the less likely it is that there is anyone to discuss these matters with. In fact, CEOs typically use their chief HR officers as their sounding boards about any and all talent issues in the organization, from performance problems of corporate officers to succession planning to how to integrate or downsize a newly acquired unit. What can the HR VP do when he or she would like a sounding board to discuss the CEO?

The worst thing that can happen for an HR professional is to lose the trust of the people in the organization. As a matter of course, HR employees walk a line between being viewed as management shills and employee coddlers. HR has to keep the long-term good of the organization in mind, and not lean too far toward either management or employees. In fact, HR needs to knock down the walls between management and employees by building a strong employee relations culture.

Still, losing trust is easy to do. Any ethical lapse or revelation of confidential information, and HR loses its effectiveness. So loneliness is part of the job. Good HR professionals learn to live with it.

When have you faced loneliness on your job?

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