Talent Preservation - Recruitment & Retention.

Information on "Organizational change & development"

In an economic free fall, existing talent is the best safety net..

Key learnings:

• Recruiting during turbulent economic times is a luxury
  
• However, organisations have the privilege of retention

The party seems to be over in the context of global economic boom. Recession has set in, and for companies there is no escape from the tweak.

A natural reaction in such tough times has been cost-cutting, and the human resources department figures first on the chopping list. Corporates have frozen their recruitment budgets almost instantly and are seeking ways to cut on numbers. While employees are at the receiving end, for organisations there is little else to do to help the situation-if they don't retrench, others on board too will perish!

Though it is difficult for many companies to maintain the existing staff, leveraging the talent onboard and using it to maximise corporate efficiency can be one of the best bail out plans against recessionary blues. The situation is very complex from a recruiter's perspective too. The need to have a better talent is at its peak, while the resources have run out. In addition, the target group of passive job seekers too is not willing to shift jobs when everything seems so uncertain. All these factors have turned the recruitment scene dismal, and the focus is only on retention.

Loyalty at a Premium 

When the chips are down the chance to bounce back lies in the perspective of the decision-maker. Recession is as natural to the economy as boom time, and it is the perspective of corporate leaders that matters most in such testing times. While cutting costs is important, diluting internal talent resources and barricading flow of creativity can stifle organisational growth. The way a company treats its employees amidst gloom and doom impacts the loyalty quotient. Employers who harness internal talent in times of economic downturn can hope to see an army of loyal employees standing by them, while those who axe talent and get fidgety with employees fail to earn loyalty. It would not be wrong to assume that employers who show greater loyalty towards their employees during critical times would be better poised to claim a greater market share in fair weather.

Recruitment enthusiasts may argue that even in an economic downswing, it would be worthwhile to keep the talent pipeline active. However, corporate strategists say focussing on existing talent is more important. People with foresight and ability to plan ahead agree that preserving the best talent in critical times will save the agony of employee turnover in future.

More tactical, less Strategic 

When it is tough time strategies dictate the course and tactics help ride over it. It is the tactical abilities of leaders that help weather the storm. Hence, leaders and managers have to think ahead in time and leverage the resources available to them. Apart from working towards maintaining optimism at the workplace, leaders have to be concerned over what the employees are thinking about the organisation's take on the crisis.

Fear is the most dominant feeling in such times, and onus of alleviating fear and pessimism lies with the leaders. Corporate leaders should ensure that employees feel secure and reassured of their jobs. Respecting people's feelings and giving them their due in critical times is what sets employers apart. Many companies boast of their "zero layoff" record, as they believe it is their approach in tough times that has seen them rank high on the list of most preferred employers. The example of US steel major Nucor Steel shows how companies that believe in guarding employee interests go the extra mile to save them the agony of a layoff. Nucor Steel has cut on executive perks, and reduced the number of working days instead of laying off staff. Making choices that are more ethical than profitable have proven to be rewarding.

The onus of providing the organisation with the best talent crop lies with human resources professionals. When the going gets tough and vacancies shrink, the responsibility to make a difference and keep the existing talent motivated and inspired also lies with them. HR leaders who understand this go out and prove HR's worth as a tactical asset.

Reference:

The ManageMentor

Communicate With Management to Gain Support.

Communicate With Management to Gain Support

Getting and retaining management support for the learning function is essential in today's economic environment. Reacting to pressure from the board of directors or analysts to meet quarterly earnings projections, management might look to the learning and development investment budget as a place to cut costs. Training may be curtailed, postponed or - in a worst-case scenario - eliminated. Now more ever than before, the CLO must make certain learning's contributions to the organization are recognized and respected.

This means it's a good idea to be proactive in communicating learning and development's goals and accomplishments to senior executives and leaders throughout the organization. Here's a guide to accomplishing this. The tips and tactics described are suitable for a sit-down with the CEO, a report to a management committee, a budget request meeting, a company-wide conference - any forum where the audience must not only be informed but also persuaded to support the CLO's message.

Prepare

a) Determine what you want to accomplish. Complete the sentence, "When the meeting is over I want the audience to ..."

b) Know your audience. Determine who should be at the meeting, their functions and roles. Identify what learning contributes to each person's operating unit and make certain your presentation addresses everyone's concerns.

c) Anticipate the reactions and the objections that may crop up. Prepare thoughtful, concise answers to anticipated questions.

d) Have the evidence, but avoid too many details. Focus on the big picture. You can expand on a particular point if you're asked to. Avoid digressing from your main message. The higher the level of the audience, the shorter their attention span.

Talk Business

a) State a position based on your knowledge of the organization's goals. What is the organizational response to the business issues you are facing and is it working? Describe how learning's objectives have changed or need to change along with changing organizational strategies. Avoid speculation or, even worse, emotion.

b) Consider all the factors involved, but above all don't ignore the customer impact. When your employees are customer-facing, they are your brand, not the logo that hangs on your door. How employees react to change is directly or indirectly transmitted to customers. Among the most important consequences in today's economic climate are lowered sales because of curtailed customer service and decreased product quality.

c) Make it clear that a less-skilled workforce will have many negative repercussions, including the impact on recruitment and retention. Will your best performers want to stay if they feel the company is unwilling to invest in developing their skills? When you compete for people in the recruiting process, how will your organization score compared to your competitors?

d) Focus on results, using metrics that are respected by the audience. Ask external training providers to provide metrics. Communispond, for example, can provide the results of academic research that quantifies the degree to which course participants have improved overall communications skills and each of 10 skills factors that contribute to communications effectiveness.

e) Assess the value of measuring against all four Kirkpatrick levels compared with the cost of doing the measurement. Sometimes, non-dollar ROI implications are more important.

Use Persuasive Dialogue

a) Create a collaborative environment that builds agreement. This is essential if you want to generate enthusiastic cooperation as opposed to simply provide the audience with information.

b) Put passion in your presentation. Show that you care deeply about what you're discussing. Create some energy. The audience will share your enthusiasm because energy is contagious. Speaking with the kind of passion that moves an audience to action may not come naturally to you, but the skill is easily learned.

c) Get out from behind the lectern because a lectern creates a barrier between the speaker and audience. Let your whole body enliven your presentation. Gesture naturally but decisively. Vary your voice level. Use dramatic pauses.

d) Use your eyes as a communications tool. If you're talking to a single person, look at that person in the eye. But look away occasionally to avoid causing discomfort. If you're addressing a group, lock your eye on one audience member for as long as it takes to express a thought, then do the same with another listener. Eye contact with the audience is the single most important communications skills factor, according to an academic study of Communispond training participants.

e) When it's time for the Q&A, answer questions fully, trying as much as possible to tie your response to your main message. Probe to isolate and understand objections. If a question is unclear, ask your own question to clarify what was being asked. Though the questioning may seem harsh, you must avoid defensiveness or conflict.

Have a Plan 'B'

a) The audience may not buy your main message. Be prepared to suggest alternatives.

b) Be creative when considering alternatives. Examine the possibilities of redeploying instructors, redesigning a course curriculum, changing the delivery mechanism or outsourcing a training function.

c) Assess resource allocation issues simultaneously and in relationship to each other rather than in chimneys.

Consider the cost of inaction. The learning function may be curtailed. Employees won't be at the top of their game and productivity will suffer because, without development, employees will always do what they've always done.

The CLO plays a unique and vital role in the enterprise's success. To protect and enhance that role, you must be proactive in influencing management decisions. This is particularly important in an economic environment where the baby is frequently thrown out with the bathwater.

Reference:

Dale Klamforth

[About the Author: Dale L. Klamforth is vice president and general manager of Communispond Inc.]

Despite Slowing Economy, Salary Budgets Expected to Rise

Salary Budgets Expected to Rise

There's some good news for working parents dealing with the back-to-school spending blues. According to a recent study, nine out of 10 employees can expect to receive a base pay increase in 2009.

Despite the sluggish economy, salary budgets in general are expected to rise an average of 3.9 percent next year, according to the 2008-09 "WorldatWork Salary Budget Survey."

"Overall, there's tremendous resilience in the economy," said Jim Stoeckmann, certified compensation professional and staff liaison to the WorldatWork Compensation Rewards Advisory Board. "I think what it's reflecting is we've got a stable labor market."

The industries with the highest projected salary budget growth include high technology and manufacturing because "the weakened dollar has made U.S.-produced goods more competitive and more affordable in export markets," Stoeckmann said. "In an indirect sense, the weakened dollar has contributed to a strong export market."

Consulting, communications, insurance and diversified financial services are other areas with high projected increases, according to a recent study by The Conference Board, a nonprofit dedicated to improving workforce management and performance.

However, that's not to say some industries won't struggle with salary budget cuts next year. Stoeckmann said some examples include the automotive, airline and standard financial services industries.

"Those industry sectors are going through some substantial stress, so I think they'll probably be taking a different [approach]," he said.

The level of salary budget increases also varies by location. Certain metropolitan areas such as Washington and Los Angeles demonstrated high projected growth, while others such as Minneapolis and St. Louis have lower-than-average projected increases.

"I hasten to add that 3.9 percent [growth] is an average," Stoeckmann said. "Key talent is in demand, critical to a business' success - employers are going to have to pay special attention to those workers' needs in order to attract and retain."

On that note, high performers can expect raises of more than 5 percent, while low performers can expect 2 percent or less, according to the WorldatWork survey.

Additionally, given today's financial climate, many organizations are turning to a mix of rewards programs to attract and retain employees. The WorldatWork survey found that the number of companies offering telework opportunities - that is, the ability to work from home or on the road thanks to technology - grew significantly in the U.S. this year and is expected to continue to grow.

"Companies are taking a look at what it's going to take to continue to be successful at attracting and retaining the talent they need," Stoeckmann said.

Reference:

Agatha Gilmore

[About the Author: Agatha Gilmore is a senior editor for Talent Management magazine.]

Human Resource Mgmt: Connecting People, Process and Products

SAS: Connecting People, Process and Products

Organizations that can link employee performance with the product or service delivery pieces of their business strategies are likely to be more successful than those that don't. Jenn Mann said intelligence and predictive analytics software provider SAS has done just that. Mann, SAS' human resources manager for research and development and worldwide marketing, with responsibilities for more than 10,000 employees globally, took a moment to share the company's talent management strategy.

TM: How would you describe SAS' approach to talent management?

Mann: At some point, a lot of companies begin to talk about how to attract, and retain employees. But this is something SAS has always had in the forefront since its inception, and I have to give credit to our CEO and Founder Jim Goodnight. Many of the programs we've had for 20-plus years, and the ones we continue to add, are really because he sees the value. It's in our culture and has always been who we are to recognize the importance of employees. We're a software company. We get things done through people. He understands the whole idea that in order to develop software, we've got to keep people in a creative, innovative place. Everything we do is with that in mind.

TM: What processes or programs has SAS established to improve workforce performance?

Mann: All of our programs are linked. It isn't just to improve workforce performance. It's also how we hire, train, develop and reward people. The best place for me to start is with our core values. Many of our programs are centered around our internal and external brand, which are linked. When we recruit employees, we keep that in mind. The hiring process includes a competency-based recruitment process that not only looks for people with the technical skill set we're hiring to, but who also exhibit our organization's core values. Our performance management program - how our employees are linked to measurable objectives - also evaluates how employees exhibit the competencies, and we use that to help develop our employees against those competencies. Then we reward in recognition of the attainment of objectives, as well as demonstrated competencies.

TM: What kind of challenges impact talent management at SAS?

Mann: Our industry has over 20 percent turnover. We've got under 5 percent, so our retention efforts are working - but we help that. Our challenge is keeping employees fully engaged. We offer incredible work-life balance programs: on-site recreation and fitness, health care facility, day care, elder-care programs, lunch-and-learn sessions on parenting. And we have an array of convenience benefits. Our challenge is keeping employees engaged because of development opportunities that we might have or making sure they have challenging projects. The type of people we hire are motivated not only by monetary rewards; they're extremely motivated by the types of projects they get to work on. We're mindful of those high-potential employees who, if they leave are going to leave for the next best technology or technical career, not necessarily for a higher salary.

TM: How has SAS developed its culture and facilitated employee attitudes around engagement?

Mann: I'm sure many in the technical area are experiencing this, but it's finding the very specific talent we're looking for that has technical depth and specific domain experience like banking, manufacturing or the various industries that we tackle. Also, with low turnover and employees who have been here over 20-plus years, we're dealing with an aging workforce and increasing numbers of retirement-eligible employees. 

Our products are quite deep and complicated, and there are lots of people who have a lot of knowledge. If we lost them, that would be a real detriment to the company. We track those employees who are eligible for retirement or who there's a threat of losing and try to make sure we're doing things to keep that knowledge within the organization.

TM: Does SAS have any processes or programs in place to attract and retain top talent?

Mann: Yes, we have several things. We attend industry conferences where these people go to obtain certifications or to attend a users' conference in their specialization. And we'll tap into those conferences and build a pipeline and relationships with those people. Consulting is one area where we will hire fresh, out-of-school college grads and put them through a pretty extensive boot-camp program to get them exposure to key areas of training so we can place them once they've gone through that training.

Student programs range from strong technical universities where we hire people and put them into a summer internship program to partnering with high schools in local areas. We also have fellowships and scholarship programs, and we leverage some of the more basic strategies like referral bonuses.

For us, the best word of mouth is through our employees, so we certainly leverage that. Also, we have a strong employment brand. Many people know about SAS as an employer before they even know what we actually do, and we've started leveraging that globally. For a long time we had a real strong employment brand in the U.S. We started to see that take off by being recognized as a best place to work in many of our international sites.

We've done some pretty incredible things in some of the international offices where SAS is being used in some universities. Our HR and technical training staff has gone over and done SAS training classes to give the students more exposure, so when they graduate, they think of SAS.

TM: How does SAS measure workforce performance?

Mann: Through our performance management efforts. We have key objectives that we identify up-front, communicate to employees, reach agreement on how those things are going to be measured at the end of performance cycle, and we track that all along the year. At the end of the year, and along the way, we can see how employees are doing against those performance metrics. We also track the attainment of the competencies I mentioned, as well as do some gap analysis so we can see where employees need development. We have an employee skills database, so we're tracking specific skills so we can not only do gap analysis, but when we have certain needs we can do searches to see who has those particular skill sets and align those resources for specific projects or to a customer visit.

SAS has predictive modeling capabilities. We can leverage that by looking at turnover from the past to see what is likely to happen in the future, so we can always monitor who we're in threat of losing. As far as recruitment, we track a lot of the same things other organizations are tracking: time to fill, cost to fill, quality of hire. We track key pieces of information like where are we getting our employees, how long it's taking, how long they're staying, to really measure the effectiveness of our recruitment efforts.

TM: What compensation and incentive practices do you employ at SAS to help manage talent?

Mann: Looking at turnover is a big piece in determining whether employees are really satisfied. If you look at why people are fully engaged and performing above what is required there are several factors. Rewards and recognition are certainly a piece of it, as is how they feel about their manager and leadership, the company's reputation, work-life programs and whether they're getting performance feedback and development opportunities.

We do an employee engagement survey every 24 months, so we keep a close monitor on how employees feel about those programs. That's an area, as is the compensation piece, where we continue to get a very positive response. People feel they are rewarded fairly here at SAS. We use a total rewards philosophy. Compensation is one piece, but we look at the full package. I mentioned some of the work-life programs and convenience benefits, but our core benefits - medical benefits, profit sharing - those are very competitive for our industry. We look on a regular basis to make sure we are offering programs that really put us ahead.

TM: What about succession planning at SAS? You talked a little about the aging workforce. Is that a concern?

Mann: It is. It's probably one of the biggest focus areas for human resources over the next couple of years. We are just starting to roll out more formalized programs where we talk about not just our high-performing employees but our high potentials because there is a difference. Often people think how people perform in their current role is indicative of what they can do in another role. It's true, but you have to look at it different. How do you identify high potentials? What do we do once we identify them? What kind of exposure can we give them in projects, helping them to solve business problems, and what kind of development programs should we consider for those individuals?

We don't have a formal program now, but we're hoping to pilot one in 2008 and stress the importance of general learning and development in succession planning and growing our talent. We hired - via internal promotion - a person to help us do that.

TM: What's next for SAS in terms of talent management and workforce performance development?

Mann: Succession planning, without a doubt. Also, all of our initiatives have a more global focus. We are continuing to grow the SAS employment brand, so we're starting to look at programs where we can extend our employment brand in other parts of the world where we are continuing to grow. Globalization of our programs is going to be a strong focus for us, as well. And we're paying close attention to our aging workforce and those we're in danger of losing, and we're formalizing mentoring and real knowledge management type programs where we can start transferring the knowledge of these individuals to others in the organization.

Reference:

Kellye Whitney

[About the Author: Kellye Whitney is managing editor for Talent Management magazine.]

Talent Transformation at Textron.

Talent Transformation at Textron

Since 2001, Textron has been making radical changes in every functional area of the company to shift from buyer and seller to builder and grower.

Internally, the changes are known as a transformation, and senior leaders are committed to becoming the premier multi-industry company recognized for powerful brands, world-class enterprise processes and talented people. Textron's more than 40,000 employees serve the aviation, aerospace and defense, industrial and commercial finance industries globally.

At the core of Textron's transformation is the networked enterprise concept that creates value by applying common processes and tools, and leverages scale and talent to help the company's businesses build and maintain powerful, profitable customer-supplier relationships.

Textron is doing this in two ways. It uses enterprise management to help create world-class operating capabilities, common processes and tools to leverage scale and talent. Second, portfolio management allows the company to identify, acquire and integrate attractive new businesses and divest businesses that do not support its vision or meet value-creation expectations.

Talent management efforts have seen success as leaders find the right way for Textron to manage and develop employees. Three initiatives demonstrate the depth of commitment to developing and managing talent across the enterprise: Textron University (TU), succession planning and leadership councils.

Building and Growing Enterprise Knowledge

After Textron's transformation launched, it became clear that to accomplish the vision the company needed to become a learning organization. Development of TU provided a delivery mechanism to support the transition from siloed businesses to a networked enterprise culture - from disparate business approaches to common processes and from limited company-wide employee development to consistent, high-quality learning programs.

Textron's senior leaders demonstrate support by teaching key leadership programs and sessions related to their area of expertise. They understand talent development is directly linked with overall company performance, retention of employees and success in the organization.

Senior leaders also attend development programs for their personal career growth. Since TU's inception in late 2005, more than 9,000 have participated in instructor-led programs around the world and nearly 400,000 online courses have been completed.

Developed in partnership with Textron and The Ohio State University's (OSU) Fisher College of Business enabled development of a key business strategy to support Textron's enterprise growth objective to double organic growth every five years, TU and OSU developed the growth leadership program, a customized program to support customer-facing leaders building their expertise in core marketing processes and tools designed to grow the business.

Participants apply classroom concepts to current growth projects. In fewer than four years, more than 500 leaders have completed more than 80 growth projects across businesses, resulting in better market segmentation, more effective product launches and higher revenues. Textron leaders attribute a significant portion of these improvements to the lessons learned in this program.

Textron partnered with other industry and academia leaders to develop and deliver custom hands-on learning programs, including the global leadership forum at Wharton's Aresty Institute of Executive Education and the executive leadership program at Thunderbird School of Global Management. TU's integrated, supply chain tactical procurement also has seen results. The three-day program for buyers and other functional professionals introduces common Textron procurement processes and tools. Since its inception in 2006, tactical procurement has had more than 230 participants and 100 projects launched throughout the enterprise, resulting in more than $15 million in cost savings attributed to supply chain improvements.

TU programs and courses bring people together across businesses - something that did not happen before the transformation - supporting a networked culture and enabling the enterprise management portion of company strategy.

Preparing for the Next Generation of Leaders

Finding ways to address organizational leadership needs - skills, competencies and perspectives - has only strengthened Textron's succession planning process. Prior to the transformation, Textron's succession planning was typical, with a strong focus on senior leadership and top positions instead of a program across all levels.

To leverage talent from an enterprise perspective, Textron developed the management assessment process (MAP). Corporate leaders and business-unit leaders are responsible for assessing leaders' abilities to achieve company business goals and strategies longer term, identify gaps and take appropriate actions to develop talent as needed. MAP supports identification of high-potential and promotable employees and formulates development plans for their continued growth.

MAP has increased Textron's ability to move talent across businesses. In 2000, less than one-tenth of the top leadership positions were filled internally. That figure has increased to 74 percent and continues to rise. No set targets have been finalized, but the goal is to increase this to at least 90 percent.

This change of mindset across the enterprise did not occur overnight. It is a direct result of senior management prioritizing the need to develop talent and high-potential candidates from within. The original siloed view of talent is no longer the standard. The entire management committee - comprised of the top six leaders at Textron - business-unit presidents and respective human resources leaders combine talent review discussions with strategy discussions. This ensures dialogue about the enterprise's future is aligned with current talent, job openings and gaps in key functional areas.

An early example of this shift was Textron Six Sigma, implemented in 2002. Textron strategically repatriated the top talent within the Six Sigma function (black belts and master black belts) into businesses. Textron Six Sigma offered a common language to share best practices and helped create a networked enterprise where people feel connected.

Today, various programs, including the talent leadership program, actively move early career talent to various businesses and functions for development. Some businesses loan employees to other businesses to tackle tough problems in times of crisis.

Textron's success and growth with succession planning depends on three MAP objectives: the ability to assess management capabilities and ensure people are available at the right time with the right skills and competencies; provide opportunities for advancement and career paths; and identify high-potential individuals. These objectives hinge on two succession planning principles: People make the difference, and promotion from within the enterprise is essential for success.

The Power of the Networked Enterprise

TU and MAP are only part of what helped the networked enterprise come to life. Another example has been the onset of 11 leadership councils that revolve around specific functional responsibilities. While Textron's businesses may be very different, the disciplines within each business are similar.

Councils comprised of senior leadership teams from functional units - including communications, engineering, technology and others - meet face-to-face at least four times each year to develop strategies, discuss common issues and solve problems.

Council meetings have enabled a natural rhythm for cross-functional and cross-business collaboration. Additional teleconferences and face-to-face meetings are scheduled throughout the year on an as-needed basis and give business leaders a place to have candid discussions on business issues and share best practices that can be applied across all businesses.

A recent engineering and technology council meeting provided an example of the level of progress that can occur at these gatherings. This particular council has a priority to better utilize talent within Textron's Global Technology Center (GTC) in Bangalore, India. With engineers in India working directly with engineers in other parts of the world as true extensions of their work teams, projects stay on track and move 24 hours a day. This council continues to share success stories that promote the capability and efficiency of the GTC across all businesses.

While this is a single example of council success, it is encouraging that councils come together to work on issues that may affect multiple disciplines. For example, the communications, information technology and human resources councils recently held a tri-council meeting. They plan to meet regularly to understand their needs and implement strategies and tactics that will enable more effective employee communications.

The phrase "you don't have to be bad to get better" is common at Textron. Talent managers continue to transform the company, making it better and stronger. Textron has made significant progress in establishing and executing its talent management strategy and understands work must continue to foster and grow an environment that identifies learning and talent development as top priorities.

Reference:

Gwen Callas-Miller

[About the Author: Gwen Callas-Miller is executive director of global leadership development and Textron University, Textron Inc.]

Raising the Stakes: Human Resource Management

Raising the Stakes

Executive pay is rising as companies offer more robust compensation packages to lure top talent, experts say. It's unclear whether the trend will continue, but HR may be facing even greater challenges in attracting and retaining C-level executives in the future.

If recent figures are any indication, executive compensation spiked in 2008, and more companies are dangling performance bonuses, stock options and guaranteed severance in front of C-level executives in an effort to attract and retain top talent.

What next year holds in terms of executive pay packages, though, is anyone's guess, experts say.

"Executive pay has never been more scrutinized than it is today, so it's hard to predict what levels of compensation we're going to see over the next year because it will depend more than ever on how companies are performing," says David Wise, senior consultant with the Hay Group Inc., a Philadelphia-headquartered management-consulting firm.

A recent survey, conducted by Norwalk, Conn.-based executive-recruitment network ExecuNet Inc., found that executive comp increased nearly 6 percent during the last year. In the next 12 months, such figures will grow another 6 percent, according to the poll of 1,098 business leaders.

The annual compensation for executives averaged $206,000 this past year, although salaries varied greatly based on function. Finance executives averaged $236,000, for example, while marketing and HR leaders pulled in $186,000 and $185,000, respectively.

A simultaneous ExecuNet survey of 718 search firm and corporate recruiters found that four in 10 (44 percent) surveyed companies guaranteed a severance package to new executives in 2008, compared to 37 percent the year before.

The study also revealed that more than half (56 percent) of the organizations offered a performance review within the first six months; a 27-percent increase from 2007. The survey also found that half (51 percent) of the companies offered stock options this year, a slight increase from 47 percent in 2007.

Competition for Talent

Despite the current economic climate, the competition for top-level talent is heating up, and organizations are being forced to up the ante just to stay in the contest, says Mark Anderson, ExecuNet president.

"Necessity is driving these compensation increases," Anderson says. "Demand at the top of the employment market is increasing, and companies are clearly adjusting their pay packages to keep leadership teams in place in this war for talent."

The pay forecast for 2009 is unclear, Wise says, although he expects some changes affecting severance packages.

"Severance is an issue that's come under fire, especially after a 2007 in which several high-profile CEOs walked away from their companies entitled to millions in severance. I actually expect we'll see severance playing less of a role going forward, or that we'll start to see more severance packages that expire after an executive has accumulated wealth in other ways."

In the months ahead, Wise says, incentives based on an organization's success will play a larger role in executive packages.

"I think you can expect companies that outperform their peers in a tough market to pay their executives substantially more next year for navigating difficult waters. On the other hand, I'd expect companies that are underperforming to show significant decreases," he says.

Indeed, uncertain times lie ahead, and a tight, competitive marketplace will put increasing pressure on HR to help find top talent to lead their organizations -- and to help find a way to keep them there for the long haul.

"I think the challenge for HR has never been greater," he says. "They're facing the task of attracting and retaining their top talent in an environment where shareholders are pushing back on guarantees for executives. It means HR is going to be working harder to understand what really matters to executives, and balance that with the expectations of their shareholders."

Adds Anderson: "HR leaders need to understand these dynamics and be forward-looking on their company's behalf. The HR leader who is actively engaged in the retention of corporate leadership will enhance the value of the company and their own career advancement prospects."

Reference:

Mark McGraw

[Human Resource Executive Online | September 4, 2008]

Human Resources: e-Learning Forecast - Training & Development

The e-Learning Forecast - Training & Development.

The hottest e-learning trends...

How would you assess the "Quality of Talent in an organization"?

"Oh no! Not another e-learning venture!" A unanimous response to any discussion on e-learning. Most organisations try their hands at e-learning initiatives only to return to the safe haven of the known and tested traditional training. Nevertheless, with e-learning technology and practices, maturing organisations can expect greater interactivity, topic coverage and a wider range of uses.

By 2005, one of the 10 most in-demand positions among global 1000 companies will be an online learning designer and e-learning will be an accepted practice on 70 percent customer websites.

Gartner forecast business-focused e-learning to grow 16.7 percent annually worldwide from 2003 through 2008, and to more than double in size to $619.4 million in new-license revenue by 2008.

The Indian scenario

Leading companies like Digital Think, SkillSoft and Mentergy are setting up operations in India. While the demand for e-learning solutions is low the market promises to grow as the government ventures into e-governance. Thus to be left behind in the e-learning race would only spell doom! A preview of the forthcoming developments and trends in e-learning will prepare organisations for implementing e-learning initiatives successfully.

The future of e-learning

Commenting on the future of e-learning Bill Gates said, "Computers will become passé." Sounds ominous for all those who have recently invested in new application systems. But what Gates indicated was that computers integrated with highly intuitive and advanced applications would be used in just about everything. Probably, users would even forget that a computer is involved!

This phenomenon is already visible. In a recent trade show a coat manufacturer promoted a new invention. Made of fibres the coat turned warm or cold depending on the external temperature. The manufacturer was not selling the computer that regulated the temperature. He was selling the coat! So would be the case with computer driven cars and machines. It's not the computer 'behind-the-scene' but the use of the product that drives the purchase. A similar trend is being replicated with e-learning. To understand the trend better, certain business issues need consideration.

Business- the trendsetter

A business organisation weighs the efficacy of e-learning from the delivery standpoint. e-Learning builds knowledge rapidly and effectively. It enhances skill development thereby reducing training related costs. Internal training aside, the current trend is to train customers as well. Customers are learning about an organisation's products and services online. In future businesses would begin to focus on the 'practicality' of implementing e-learning. With the hype about technology fading, managers would implement best e-learning practices that improve effectiveness and ROI (Return On Investment).

Moving towards simulation

The increasing use of simulation- based e-learning will perpetuate another important trend- the use of self-service applications. Consequently, even the training methodology will undergo a change. For example, customer service representatives typically handle routine customer services. An organisation can go online to train customers on its products and services. This would change their training programmes.

With online systems handling routine transactions, representatives need to be equipped with better skills. They also require the knowledge to handle complex transactions. Interestingly, this dependence on self-service is equally triggered by organisations wanting to increase their effectiveness and customers wanting to be empowered (with self-services).

With its ability to develop advanced decision-making and communication skills, simulation is already transforming learning circles. Learning managers are using simulations to standardise organisation-wide practices. As Mike Flanagan, vice president for research at Lguide states, "All good simulations are built on models of how business works. The goal is to raise the consistency of representatives' skills throughout the organisation."

Simulations for screening

Organisations are beginning to use simulations for pre-screening candidates. Simulation models that screen prospective employees are more prevalent today. Paul Stockford, chief analyst for Saddletree Research says, "Simulations can now help you determine pretty quickly if someone has the patience and aptitude to deal with the issues and types of customers who patronise a given deal." As the content and objectives of training are different, simulation-training programmes cannot be used for pre-employment purposes.

Effective pre-employment simulation screening measures a candidate's competencies and those that his employers are willing to train him in. Organisations usually avoid training for personality and problem solving competencies. If screening reveals that a candidate has adequate competencies, hiring him would be right. Subsequently, simulation-based e-learning programmes will help sharpen job-related skills.

More progress in blended learning

Blended learning isn't a new concept but needs to be used more effectively. There should be a perceptible shift from reactive to proactive blending. When e-learning was first introduced the trend was to put everything online. This trend gave way to integrating other training techniques to form-blended e-learning, which was a reactive solution. Today, organisations first consider the strengths and weaknesses of technology-based learning. They then experiment with what works and what doesn't and build a proactive learning solution.

From blended learning to integrated content

e-Learning literally drowns people in information. Learners have to cull relevant information. The trend of integrating content into the context, directs the movement of information from an e-learning vendor to the learner. Content comes in different forms with specific focus, as an e-learning analyst says, "One of the main purposes is to present bits of information as needed."

Measurable ROI!

With e-learning based training data can be captured on desktops. This would result in a more accurate measure of training budgets. "Without data interception at the desktop, you have to go out scraping up data from people's memories after training programmes. When you have it there in the database you can start doing some interesting statistical models to see what is working," says Flanagan. But the trend is to avoid using this data to calculate the ROI. Once there is evidence that the ROI is a direct result of an e-learning initiative some diminishing returns are imperative. Effective organisations would use this evidence to make better decisions-that is the emerging trend.

The theme party!

These emerging trends have an underlying theme of convergence. e-Learning initiatives in the future might converge with management tools. Tomorrow's managers would have a unified view of various business considerations, be it related to customers, employees or financial. Seamless integration of e-learning into organisational performance and other processes is what the future has to offer.

Smart and intuitive training will certainly morph the focus on technology. What would be in the forefront is the application and how it serves desired organisational objectives.

Reference:
The ManageMentor

Human Resource ROI: Seven Ways to Increase Employee ROI

Seven Ways to Increase Employee ROI

It's no secret that the economy isn’t exactly booming right now. More people may be looking for work, but that doesn't mean that they are the right people for your company. Instead of viewing employees as expendable, businesses should focus on getting the best return possible on the workforce they already have.

Employee retention is a very big issue and it always will be, regardless of the state of the economy. After all, the key to long-term growth and productivity is a workforce that's familiar with your company and in sync with its goals. A workplace should excite and motivate employees, so they'll want to stay around. And that means creating an environment that challenges people and helps them grow not just as employees, but as people.

Here are some ways organizations can foster the kind of growth-oriented workplace that will survive and thrive, even during a downturn:

Forget Monetary Incentives: 

Focus On Relationships. Even if you can offer them, fat salaries and bonuses, more vacation time, and other perks will not increase employee loyalty. Instead, they tend to tie people to your company in the same manner that one trains a dog to stay in the yard—until, the people across the street offer a bigger, juicier bone. Creating a culture in which good relationships are valued gives employees a profound and rewarding reason to come to work every day. Only through relationships can people change and grow...and personal growth is a requirement for survival in our increasingly complex world.

Help Employees Find their "Familiars.

" What is a familiar? Simply put, it's an emotional state we return to again and again. It is a feeling that holds tremendous power over our choices, relationships, and careers. Rooted in our families and our upbringing, the familiar is a feeling that we unconsciously reproduce, sometimes to our benefit, but often to our detriment. For instance, the eldest child of a large family might have grown up having to subrogate her needs to the needs of the younger children. Perhaps she was told she was selfish for asking for things for herself. It is no mystery that as an adult she is frustrated at work and has trouble communicating her needs to her boss. Her familiar—the feeling that she doesn't really deserve to ask for anything—is reproduced in her work environment, where she is unable to assert herself. You can help your employees tremendously by learning about familiars and encouraging them to identify—and subsequently diminish—their own.

Seek Employee Input. 

A big part of creating a growth-oriented workplace is to constantly question your employees. "Did you notice what you did there?" "Why do you think you said that?" "I noticed that when your position was challenged in the meeting, you didn't defend it—why do you think you backed down?" Creating a "question culture" will help employees identify their familiars. It will raise performance expectations throughout the company. It will train employees to think carefully about how they do their jobs and ensure that they have sound reasons for every decision they make.

Encourage Conflict and Confrontation. 

Yes, you read that right. Conflict and confrontation are rarely pleasant, but they are the very definition of teamwork. They are also necessary to create growth relationships. The purpose of the workplace is not to make everyone happy—it is to grow people to their maximum potential. The enormous popularity of consensus decision making/negotiation, participatory management, and self-directed work teams is a sign of our unhealthy quest for comfort above all.

Provide Honest, Caring Feedback. 

Keep the lines of communication open by continually telling your employees how they are doing. A relationship without honest feedback is a "mutual toleration society." Unconditional acceptance—in both personal and professional relationships—is actually a form of abandonment, because it robs the other party of the most important catalysts for growth and change. (Hence the reason the feedback is labeled "caring”).

Practice the Art of Self-Disclosure.

Feedback cuts both ways; you want your employees to provide it to you as well. One way to do so is through self-disclosure. If you want to turn a stagnant employee relationship into a growth-oriented one—or start a new relationship out on the right foot—share your feelings first. This is a big risk because you don't know how the other person will respond; you must be prepared to deal with any type of reaction you receive. But it's a risk worth taking because you can learn a lot from your employees. Self-disclose often and you’ll model the kind of relationships you want to encourage in your company.

Form An Accountability Group. 

Many people fear receiving or giving feedback because they don't want to show weakness or cause discomfort to someone else. Put them in the right setting, however, and they may be willing to become involved. In an accountability group people give and receive feedback, create action plans based on that feedback, and hold group members accountable for implementing their plans. I have found accountability groups to be amazingly effective in helping clients overcome debilitating work and personal problems. Done correctly, they can lead individuals and organizations to transform themselves from the inside out.

I am certain that the actions detailed here will increase your company's productivity. People who are personally and professionally fulfilled make better employees—it’s that simple. But the big reason to implement these strategies has more to do with tomorrow than today. Creating a work environment rich with opportunities for self-discovery is an investment in the future of your company. Begin now, and when the economy rebounds, your employees won't leave you for greener pastures. Why would they? Your organization will be meeting needs far more compelling than a weekly paycheck.

HRM Hiring Employees - With an Attitude!!!

Recruitment with an Attitude!!!

With the employment market tightening and jobs scarce, employers seek employees with the "right" attitude. Identifying these candidates can be a little "tricky," as the selection process is almost invariably not designed to measure these attributes.

Before discussing the hiring matter, we need to examine the underlying reasons for the hiring need in the first place, along with a framework for dealing with them.

New Employees are Costly

Employers hate employee turnover. If the turnover rate is high the company will notice a negative impact on the "bottom line." The costs of recruitment, selection, hiring and training new employees are high. And, depending on the complexity of the job, lower productivity, while new employees gain necessary experience, is another costly factor. Experienced employees lost to the competition are an even greater threat. These employees may know business philosophies, practices, techniques, trade secrets, and strategies which could strengthen your competition. Considering all of these negatives, savvy management does it's best to retain their valued staff.

Keeping Valued Employees

Experienced, qualified and productive employees are an asset, but keeping them can be challenging. Loyalty to employers hasn't been the norm for many years. Of course companies can do a number of things to keep the good ones.

Many years ago a researcher named Frederick Herzberg (The Motivation to Work, 1959) developed a theory that divided job satisfaction into two major components: Motivational factors and Hygiene factors; with the motivational factors such as interesting work, challenge, recognition, and variety being, by far, the more powerful. On the other hand, the job features we all expect, such as pay and benefits or working conditions are nowhere near as important, except to serve as potential causes for dissatisfaction. These findings may be counter-intuitive, but as we all know, we will spend hours doing the things we like to do, with people we like to do them with. Conversely, unchallenging tasks, or work performed in a non-supportive, or uninteresting environment, will typically not evoke our best efforts.

So making your workplace a challenging, exciting, and supportive place will greatly help in reducing or limiting avoidable turnover. As an important added benefit the customers will have a better relationship with a motivated, helpful, satisfied workforce.

Now that we've examined the background, let's look at hiring new employees. While it's obvious that it is best to retain employees, turnover will occur, and businesses may grow. This being the case, a superior recruitment plan is essential, as it will help accomplish several things: hire the "best," have a good fit between employee and job, lessen the need for discipline or discharge, reduce turnover, and provide a competitive edge.

The Right Stuff

Employers tell us that the most important characteristic to look for in a new employee is the "right" attitude. What is the right attitude and how do we hire people with it? The right attitude, according to most employers, consists of several qualities:

- Positivity (doesn't focus on negatives)

- Open-mindedness

- Flexibility

- Superior interpersonal skills / a liking of people

- Desire to learn

- Willingness to work, (and work hard)

- Dependability - Desire to accept challenges

- Team player

With these characteristics the employee should exhibit a "good attitude" toward his employer, fellow employees and your customers.

Finding and Hiring Employees with the "Right Attitude"

Considering the above attributes, be serious about your hiring process, as you know the headaches resulting from poor decisions. Here are some suggestions:

--Identify the essential characteristics required for success on the job.

--Incorporate behavioral and attitudinal qualities into your selection criteria.

--Include these requirements in your job bulletins, advertising, employment agency requisitions, etc.

--Carefully examine employment, educational and personal history (to the extent permitted by the law).

--Conduct a background check on candidates.

--At the interview, observe the candidate's behavior, general attitude and demeanor, body language, posture, facial expressions, eye contact, etc. (You may want to try an interview panel to guard against subjectivity and "blind spots").

--Consider using role-playing, situational questions (e.g., "What would you do if?), and performance simulations.

--Make sure the candidate is someone you will be comfortable around, as you may spend more time with him/her than with your spouse.

--Look for a "smile."

Reference:
Ben A. Carlsen, Ed.D, MBA, is an experienced CEO and manager. Dr. Carlsen has over 30years experience in management, consulting, and teaching. Currently the Head of the Business Department at Everest Institute, Hialeah, FL., he was Chairman of the Los Angeles County Productivity Managers Network and President of the Association for Systems Management (So. Calif. Chapter). Additional information can be obtained at http://drben.info/

Human Resources Benefits & Talent Management: Linking Employee Benefits To Talent Management

Most companies treat benefits as a cost of doing business. They should see them instead as a competitive weapon.

As the bill for US health care mounts, companies struggle to reconcile their need to offset the rising cost of employee benefits with the desire to attract and retain the best talent. Some engage in an arms race of sorts, blindly matching or beating the benefits offered by competitors and spending billions of dollars in the process. Yet these benefits often fail to reflect either the preferences of employees or corporate objectives.

A few companies, however, are changing the game. Emerging best practices are reducing the cost of benefits by 10 to 20 percent a year, keeping employee satisfaction steady—or better—and linking these expenditures more tightly to corporate objectives, particularly investments in talent to gain competitive advantage. Such investments are increasingly important to the profitable growth of the world’s most successful companies: from 1995 to 2005, profits per employee jumped to $83,000, from $35,000, and the number of employees more than doubled.1 Benefits represent a major part of that outlay: US companies spend more than $2 trillion on them each year, but though the cost of health care in particular is on the rise, companies aren’t scrutinizing benefits as closely as they do other investments.

Benefits are much more than just a cost of doing business, even though many executives don’t understand that. In many companies, the chief financial officer hands down a cost goal for benefits each year, and then the HR department works to meet it. In the end, business unit leaders get stuck with increasingly expensive benefits without understanding what they get in return.

We advocate a much more active approach: employers should tailor their investment in benefits to the preferences of their employees, as some leading companies do already. The same sophisticated market research tools companies now use to launch products and services ought to be used to define employee “customer” segments. Benefits packages should then be tailored and marketed to them accordingly. This approach, balanced with return-on-investment (ROI) objectives and rolled out over several years, will help companies meet their increasingly vital need to offer knowledge workers higher rewards while minimizing the cost of employing a large frontline workforce.

Treating Employees As Customers

When buzz about a potential change in benefits makes its way through employee networks, they often respond with anxiety and consternation. Companies should approach them with the same caution that consumers get, using market research to understand the workforce, segment it, and gauge its responses to potential changes. When a company tinkers with benefits, it should “brand” the adjustments with themes that research shows are important to employees. Then it should aim those themes at relevant employee segments and actively address the concerns of people who will dislike the changes, while also emphasizing the positive ones that other segments will applaud.

These efforts should take the form of a marketing campaign, similar to what the company would use to launch a new product, that emphasizes aspects of change employees will value. E-mail, the Web, mailers, and company newsletters ought to explain, in simple language, the nature of the changes, their rationale, and the improvements they will bring. Such communications should also directly address things that certain segments of the workforce may dislike, balancing these changes with the positive ones dictated by the preferences of the majority. A benefits “hotline” (on the telephone, the Web, or both) lets employees ask questions and voice concerns. This important tool helps the company to get real-time reactions and to identify and lubricate squeaky wheels.

Such an approach is particularly important in union environments. One heavily unionized manufacturer, for example, is marketing its benefits with the theme “empowering you to better manage your health” through new nurse hotlines and increased preventive-care coverage. Its marketing campaign appeals to that large segment of employees who value broad health care services above all other benefits. When negotiating with unionized locations, the company’s leadership, understanding that the largest segment of union members values higher take-home pay more than rich benefits packages, emphasizes the point that soaring benefits costs make it harder to raise wages.

These principles can be applied in nonunion environments as well. A major transportation company, for example, launched an effort to save more than $100 million a year, in part by cutting its annual spending on benefits by 10 to 15 percent. One element of its plans—a dramatic cut in retirement benefits—stood to upset employees greatly. Research into their attitudes showed that although this move was extremely unpopular, the more they knew about the overall package, the more satisfied with it they were. Furthermore, the research revealed that most of them didn’t realize the richness and breadth of the benefits offered. The company used these insights to plan a broad campaign to educate the nonunion workforce on the virtues of the package. It also added several low-cost benefits, which allowed it to cut others, to save money overall, and to minimize employee dissatisfaction.

A benefits package should be marketed not only internally but also externally. Well-handled benefits changes can help a company that has a large presence in a community to strengthen (or establish) a position as an employer of choice. Handled poorly, such changes can enrage local activists and legislators.

Benefits through the ROI Lens

Companies should see benefits as an investment in their employees, with the aim of motivating the workforce to realize and even exceed their objectives. Those that redefine benefits in this way, instead of treating them as a cost of doing business, stand to gain a significant competitive advantage in attracting, motivating, and retaining the best talent.

An effective benefits strategy engages the chief executive officer, the top team, and, in some cases, the board in an effort to identify the ROI objectives of benefits spending. These objectives vary by company but typically include elements such as the productivity and well-being of employees, talent management, community perceptions, union relations, and costs.

Demonstrating a strict cause-and-effect relationship between the investment in benefits and the return is difficult at best and often impossible: many variables are involved, and the payoff lags behind the expenditure. But developing some kind of quantifiable estimate of the ROI of benefits is much better than no estimate whatsoever—the current standard in most companies, according to a recent survey of employers.2

Such metrics and goals can, for example, help companies to assess the general effectiveness of their investments in benefits over several years. Employee satisfaction is measurable through annual surveys. Likewise, management can define targets for productivity (for instance, health-related absence days per employee) and for retention (say, the turnover of important employee groups).

Like metrics for benefits, benchmarking may have to be rethought. One major industrial company’s approach to benchmarking, for example, was raising its costs, lowering the growth of wages for its unionized employees, and making them less satisfied to boot—even though it actually offered above-market benefits. Recognizing the problem, the company’s executives established a clearer objective for its investments in benefits: supporting and rewarding efficiency. They also engaged the union’s leaders in a dialogue centering on the fact that the company’s total compensation was a relatively stable share of its profits and that over time, the mix between salaries and wages, on the one hand, and benefits, on the other, was shifting toward the latter. The union’s leadership had previously understood neither this game’s zero-sum nature nor the linkage to corporate profitability. Through these discussions, the union got a better sense of the company’s constraints and objectives, of the preferences of its members, and of the failure of past negotiations to obtain the best result for the union, its members, and the company alike. Now the discourse revolves around these factors, with advantages for all parties—lower costs, better labor relations, and higher productivity.

Productivity also turned out to be the problem when another company, this one with both consumer and industrial offerings, reviewed its benefits. Executives noticed that the ongoing salary it gave employees with short-term disabilities seemed to make some of the beneficiaries less motivated to return to work and therefore reduced productivity. Research also showed that when the company cut back its prescription drug benefit, it made its workforce not only less satisfied but also less productive: the remaining weak prescription benefit discouraged employees with chronic conditions from diligently complying with their drug regimens and thus led to complications and absences down the road. By eliminating less valued benefits, such as the disability payments, and focusing on worthwhile ones, such as prescription benefits, the company stood to improve its employees’ satisfaction significantly while also cutting its costs.

A Multiyear View

Armed with this kind of useful information, companies can formulate clear objectives for their benefits, predict which their employees will probably want, and develop a multiyear plan to implement a strategy. Most companies, by contrast, follow a piecemeal yearly “keep up with the Joneses” approach that has the effect of shifting compensation from the more flexible salary and wages to the less flexible benefits, and as a result it is harder for employers to reward individual employees for their performance differentially. In view of the increasing importance of attracting and retaining top talent, this issue should get much more attention than it has.

The precise multiyear strategy will depend on a company’s priorities, as well as its financial situation, relationship with employees, and reputation among prospective hires. Given the annual open-enrollment cycle for health care benefits, such a plan typically covers three years and rolls out changes incrementally in each of them. Full, annual run-rate savings are usually realized by the end of the second year.

A staged, multiyear approach can be desirable for other reasons as well. One major packaged-goods company, for example, was about to introduce a benefits plan that placed more responsibility—both financial and decision making—on its employees. The company realized that the changes were likely to upset them, because research showed that they were risk averse and poorly educated about health care. It therefore decided to phase in the changes, so that employees would have time to learn more. The first stage of the process involved relatively small changes, such as the introduction of plans with a higher deductible and of financial incentives to increase their attractiveness. As employees become more comfortable making their own health care decisions, the company believes, it will be able to roll out more substantial changes, such as health savings accounts and health reimbursement accounts.

Trends in HRM: What corporates feel about MBA.

Perceptions of MBAs

Recruiters and managers long have touted MBA-holders as the panacea for business problems, but recently, the view within the executive ranks has become more nuanced. Here’s what an assortment of experienced executives had to say about the prospect of adding an MBA to their team:

Value the Program, Not the Degree

“When I have hired young people from a great program like Babson, I often see that they have acquired a great tool kit that they are eager to apply to a real job. Unfortunately, too often when I have employed people from a top-ranked, high-end program, they spend a lot of energy wishing they could leap over the years of grinding experience and just get to the job they think they should have already — CEO. In those cases, MBAs can be a blight on the team, which needs to value diversity, experience, and the particularities of a business and an industry.”

— Frank Ingari, former CEO of Shiva Software and now Chairman of Purkinje, a provider of practice management services to physicians and hospitals.

Hard-Working, High-Maintenance

“MBAs are often enthusiastic, smart, young people that bring some analysis rigor to an organization. However, you must keep them channeled and focused, or they may run down an analysis rat hole. They require time and energy and interesting projects. If you give them such assignments, they will work 80 hours a week. They also need perspective on the projects they are assigned: What is the desired outcome? What might be a good approach? Who are the project stakeholders? MBAs can be at the top of the tree looking out over the strategic horizon while the real workers in the organization are at the trunk of the tree firing up the chainsaw.”

— Ken Evans, former VP of sales and marketing at Waste Management, currently a management consultant at CP Strategies.

Dropouts Make Better Entrepreneurs

“Nobody would argue that it makes more sense to hire a college dropout and former disk jockey like myself rather than a Harvard MBA. However, the high-tech world is full of college dropouts that have made good. And among that group which includes [Bill] Gates, [Larry] Ellison, [Michael] Dell and [Steve] Jobs I am the underachiever. If you look at what we hold in common, it’s that we’re all too fiercely entrepreneurial to have the patience for going to classes and getting certified. There are just some people who are driven to start a business, and those are the ones who aren’t likely to spend time earning an MBA.”

— Mitchell Kertzman, venture capitalist at Hummer Winblad and former CEO of Sybase, Powersoft, and Liberate Technologies. (Note: Kertzmann was formerly a member of the Board of Directors of CNET Networks, BNET’s parent company)

Practical Experience Is a Necessary Foundation for Theory

“We provide a great deal of training to our managers and prospective managers, much of which starts where their MBA training might have ended. We find that in order to understand and implement business strategy, you must first understand the practical business situations that give rise to theory, rather than the other way around. In addition, much of the management work that takes place here deals with groups of engineers who are very different to manage than other types of personnel. Unfortunately, a lot of the theoretical training in business schools simply doesn’t address the requirements of a global engineering environment.”

— Fred Wise, director of staffing at National Semiconductor Corporation, a computer chip maker with $2 billion in annual sales.

Salespeople Don’t Need MBAs

“If you’re talking about a sales position, I’d have to say that the MBA is pretty much useless. If you’re talking about an executive position, an MBA is useful, but only marginally. The sad truth is that the training is just too theoretical to make any difference.”

— Brad Finn, former top sales executive at Jones Apparel Group, the $5 billion-a-year clothing giant, current president of Marlboro Corporation, a multi-million dollar shoe wholesaler.

MBAs in IT

“MBAs are marvelous additions to an IT organization. They generally have the right business demeanor, as well as knowledge of economics, finance and accounting, as well as some theoretical understanding of how to manage people. And that’s all to the good. Second, and more importantly and you have to have a lot of confidence as a CIO to do this if you bring MBAs into your IT organization and keep them in the organization for two to three years, you can then seed them into other user departments where they’ll likely be accepted because they’ve got the MBA. They’ll naturally have a certain degree of loyalty to the IT group, which can significantly enhance your ability to work IT issues throughout the company.”

— Jack Cooper, former CIO of Bristol Myers/Squibb and Seagram, and founder of JM Cooper & Associates, a provider of consulting to IT management.

The Hard Truth

“You Harvard guys don’t know crap about the way businesses really run.”

— Howard Woolf, then a director of marketing at DEC, to a trio of consultants with Harvard MBAs as overheard by the author. Woolf is now president of the Converged Billing Solution Group at Comverse, a $1 billion-a-year provider of multimedia services.

Reference:

Geoffrey James

Human Resource Management: Workforce-Contingency Plans Lacking

Workforce-Contingency Plans Lacking

Proactive companies with formal plans may weather an economic downturn better than those who do not, says an author of a new study on the workforce and the economy.

Some good news in an uncertain economy: U.S. employers say they will keep pay raises steady next year. Yet, one-third of employers report that they have no formal contingency plans for their workforces in the event of continuing economic woes.

In 2009, U.S. companies are planning to give workers merit increases averaging 3.5 percent next year, identical to the increase workers received this year, according to a recent study by Watson Wyatt Worldwide, a Washington-based global consulting firm.

And they plan to give larger raises to their better-performing employees, according to the survey. Employees whose performance ratings exceed expectations will receive an average merit increase of 4.4 percent, while those who far exceed expectations will receive an average increase of 6 percent.

But at the same time, the study found that 33 percent of respondents have no formal contingency plans for future economic downturns.

Two of three U.S. employers say they have at least one formal contingency plan in place. The most common include: layoffs (52 percent), followed by plans to restructure (46 percent), freeze hiring (39 percent), give smaller pay raises (27 percent) or freeze salaries (13 percent).

"This doesn't imply that companies have their heads in the sand," says Laura Sejen, global director of strategic rewards consulting in Watson Wyatt's New York office. "They are aware of what's going on and they'll respond as they see fit."

Talks with some HR leaders confirm Sejen's view.

According to James Flanagan, executive vice president of human resources for GSI Commerce, a leading provider of multi-channel retailing and interactive marketing services headquarted in King of Prussia, Pa., "We have somewhat of a contingency plan," even though business is currently growing.

Still, Flanagan describes the company as being "thoughtful" about hiring decisions, keeping its eye on economic news. "We're lucky we're in a growth business, but we do ask ourselves, 'Should we grow a little slower? Be a little more conservative?' Let's say I want a performance-management system; maybe I'll wait six months."

If there is attrition, he says, the company may wait a few months to fill the position.

Holly Powell, HR specialist at Crompco, a Plymouth Meeting, Pa., firm that tests underground storage tanks at gas stations, says, "We do not have any contingency plans. We are a pretty steady business."

Nonetheless, she points out that a rising number of independent gas stations that hire Crompco are failing to include checks with work-orders for inspections that are normally C.O.D. "[The economy] is on my mind," says Powell. "It's on everyone's mind. We're being more cautious, but we're continuing to grow."

That's not the case for every industry. A recent report from Challenger, Gray & Christmas, an outplacement consultancy firm based in Chicago, indicated that planned job cuts announced by employers in July jumped 26 percent to 103,312, from 81,755 announced in June. It was the second time in three months that job cuts exceeded 100,000.

The Challenger report showed job-cut increases in 17 of the 25 industries tracked by the firm, compared to a year ago. In releasing the findings, John A. Challenger, CEO of the firn, noted that the downturn had been "isolated to the housing and financial sectors just a few months ago, [but now] has spread throughout much of the economy."

Financial firms are the leading job cutters, having announced 100,775 job cuts through July. The other top job-cutting industries are automotive (63,090 job cuts this year), transportation (54,411), government/nonprofit (51,952) and retail (39,097).

Sejen warns that informal contingency plans -- or merely keeping an eye on the news so you can throttle back if things get bad -- may be a liability to employers.

"Businesses need to think creatively about how to manage these downturns," she says, noting that half of employers are relying on layoffs as their contingency plan. "Then, if the business picks up in 12 months, you'll be competing for talent," she says.

On the other hand, says Sejen, only 8 percent of employers cite a reduced workweek as a contingency. She points out that reducing workweeks takes careful planning in advance.

"The risk is in being reactionary," she says. "If they don't do advanced planning, they are behind the eight ball and they'll react instead of respond. It takes time to think these things through."

Additionally, Sejen says, HR leaders can take the time to consider potential legal risks, especially when contingency plans aren't well thought out in advance. Actions could be misinterpreted by employees. "The last thing you want during layoffs is a lawsuit."

Reference:

Louis Greenstein

[Human Resource Executive Online | August 12, 2008]

Human Resource Management: A Net Cast Wide! - Recruitment & Retention.

A Net Cast Wide! - Recruitment & Retention.

Only the culturally competent should indulge in multicultural recruiting...

Key learnings:

• The search for talent has moved across borders 
  
• Cross-cultural recruitment requires special efforts 
  

Multicultural recruiting is no longer an option, but a necessity. The dearth of talent compels organisations to look outside their national boundaries. But despite recruiting culturally diverse candidates on more than one occasion, recruiters still do not seem to get it right. Experts believe recruiters have to become more culturally insightful to recruit talent from across the globe. This week's mailer looks into how to build culturally competent recruiters.

What goes wrong?

It is important to understand why despite adequate international experience, multicultural recruiting remains a challenge for most recruiters. Recruiters almost always function under a spell of assumptions.

One such dubious assumption is that interviews are formal affairs where getting relaxed and talkative have no place. Moreover, the level of formality is directly proportionate to the candidate's place of origin. So a North American interviewer will be more formal with an Asian than with an American.

Another assumption is that discussing family, friends, schooling, what one likes to do on a holiday and other such details must be saved for later. Even if family is discussed, it is done in a breezy, obligatory manner.

These and many such assumptions aside, recruiters assess candidates by their body language and bearing, which are influenced by culture. A North American recruiter might expect the candidate to look him in the eye and call him by his first name, but an Indian candidate is guided by a different set of values.

No in order to rid themselves of these assumptions and tacit rules, recruiters must do the following:

Appreciate differences

As one expert rightly advices, "Expect to be surprised by different behaviours when interviewing candidates from different cultures." Being prepared for candidates from different cultures requires for recruiters to make effort to form opinions only on skills, competencies and experience. As easy as it is to be swayed by mannerisms and actions, recruiters will have to remind themselves to be on track constantly.

A list of pre-decided questions will allow the recruiter to remain focused. But it is also important that recruiters spend time in idle talk which gives them a feel of who the candidate really is. In fact, indulging in casual conversation is more important while recruiting culturally diverse candidates. Therefore, recruiters must allot more time for interviewing candidates from cultures other than their own.

Recruiters can also be a little flexible on punctuality because the candidate's culture might not have emphasised it strongly.

Floating the list

It is good idea to send the list of interview questions to the candidate in advance. This way, recruiters can get an insight into the candidate's thought process and level of seriousness. It also keeps candidates comfortable during the interview as they know what they are going to be asked. As one expert says, "It gives candidates a chance to think of answers in their own language."

Cultural Competency

Those into multicultural recruiting must improve their cultural awareness by taking up relevant courses, reading about various traditions and social customs and meeting culturally diverse individuals for improved exposure. According to an anthropologist, the one thing that recruiters must remember is that cultural competence is not about, "what to do and what not to in a particular country."

Culture and skill

Often recruitment criteria are specific, and as a result even culturally biased. For instance, a criterion might require candidates to be vocal. But not all cultures encourage opening up to strangers. So a good candidate will be rejected because of a cultural difference. Recruitment criteria can cover skills and competencies, but not cultural traits. 

Recruiters need to understand that picking up talent from across the globe involves more than long-distance travel.

Human Resources:Setting Disclosure Boundaries for Interview Success

How Much Information is Too Much?: Setting Disclosure Boundaries for Interview Success

Whether you're the quiet and reserved type or an incorrigible blabbermouth, interviews tend to magnify the extremes in each jobseeker's unique communication style. Let's face it - there are few situations in life that are more stressful than a job interview, and stress can quickly bring out the worst in those of us who aren't natural public speakers.

Some people dry up and find themselves unable to utter more than a one-syllable "yes" or "no" answer to interview questions. Others face an entirely different, but equally worrisome problem - the tendency to talk too much in interviews.

But when it comes to interviews, how much information is too much? Well, the answer to that question depends on a number of variables. In order to determine the amount of disclosure that will work in your next interview, you've got to consider the industry setting, the type of job you're applying for, and the personality of your interviewer, not to mention your own personality, boundaries, and comfort level.

Avoid Tough Topics and "Over sharing" in Interviews

Although acceptable disclosure levels will vary somewhat from interview to interview, there are some hard-and-fast boundaries that should not be crossed in any situation. According to HR consultant and interview coach Carole Martin, even if the hiring manager asks a question that could lead you into dangerous territory, it's best to extricate yourself and stick to more neutral points of discussion. Here are some potential pitfalls that jobseekers are better off avoiding altogether.

1. Hobbies, recreation, vacations, and free time activities

This category can be relatively benign, so it's up to you to exercise your discretion and decide what's appropriate. One or two remarks about your knitting circle or a college semester spent abroad are probably okay, but steer clear of in-depth discussions about what you like to do when you're "off the clock."

2. Politics, religion, current events, or other "hot button" issues.

Many hiring managers make the mistake of breaking the ice with a few seemingly harmless remarks about the day's headlines or a pressing national or social issue. It's best to just chuckle politely and dive into more neutral topic of conversation.

3. Relationships and personal lifestyle choices.

If the interviewer requests a short break to take a call from a disgruntled spouse or handle a childcare crisis, it can be tempting to establish rapport by commiserating with a similar story of your own. However, what may seem like simply blowing off steam could come back to haunt you in an interview situation.

4. Medical problems and health issues.

If the hiring manager is struggling with a head cold or allergies, don't chime in with tales of your own debilitating hay fever. Although it's fine to do this in most social situations, an interview is a unique kind of interaction, in that it's more professional than purely social. If you don't tread carefully, you might inadvertently raise concerns about your own reliability.

5. Personal topics that bear no relation to your professional life.

In general, a good rule of thumb to follow is to avoid divulging any personal information that is not directly related to your ability to perform the job in question. If a piece of personal information doesn't help you frame yourself as a perfect match for the open position, it probably doesn't need to be discussed in the interview.

When it comes to interviews, it's always better to be safe than sorry. If you're not sure how much information is too much, try to err on the side of caution.

Reference:

[Hcareers Hospitality Newsletter | August 28, 2008]

Assessing the Quality of Talent in an organization.

How would you assess the "Quality of Talent in an organization"

Key learnings:

• Untimely employment termination can result in a bitter feud denting the organisation's reputation
  
• The only way to avoid it is for managers to be careful
  

Terminating an employee is not a pleasant task; and what makes it worse is when managers are ill-prepared for it. Since terminations are rarely spur-of-the-moment decisions, there is little excuse for handling it in a shoddy manner. Yet managers keep committing the same blunders. Here is what they must avoid to make terminating an employee less painful:

Undocumented: One of the biggest mistakes is not having clear policies on when and how to terminate employees. In absence of a standardised and well documented termination policy employees will be unclear about accepted code of conduct. Terminating an employee for things he was ill-informed about is an open invitation to litigation.

Unexplained: Although nearly all appointment/offer letters list out the terms of employment, not all employees go through it. Even if they do, some may not understand the clauses completely. Therefore, as part of the recruitment routine, managers must explain the terms of contract, especially drawing attention to reasons for termination. Employees who were made aware of what not to do are unlikely to retaliate when terminated.

Uninformed: Terminating an employee without cautioning or warning him is one of the worst mistakes. It makes even underperformers or troublemakers feel victimised. And they become martyrs for existing staff! Ample warning through formal performance discussions and documenting instances of underperformance should be the first steps to termination.

Unreasoned: In may not be mandatory legally to have a job-related ground for terminating an employee. But an invalid reason can land a manager in thick soup. So he must be prepared to justify the termination, whether he shares it with the employee or not. It is always better to have a job-related justification.

Unprepared: A manager must know what to say and keep his paperwork in place before handing over the letter of termination. He must be prepared to face a barrage of questions from the employee, and maintain his composure. It is important to be clued in on policies and the legalities of termination. A manager must know if an employee is entitled to severance pay or any other compensation. Sometimes, even the most sober of employees can turn nasty when asked to leave.

An important aspect of preparation is a follow-up plan which answers the question, "How is the team going to make up for the loss?" However errant an employee may be, the loss of a member affects the symmetry of a team. The management will be required to either fill the vacant position or reassign tasks and responsibilities of existing team members. Whatever be the case, a modified course of action must be in place before an employee is asked to leave.

Untimely: Sitting on a termination decision for too long is another common mistake. Employees who get wind of their termination can turn troublesome or even lobby against the manager. The could-not-careless attitude of a soon-to-be-terminated employee can affect the morale of his work team adversely. The manager's reputation too takes a beating as he is perceived as indecisive or lacking guts.

Ungentlemanly: Letting the word slip out that a certain employee is going to be terminated soon is inexcusable. There is no reason to treat a soon-to-be terminated employee badly. Letting others know of the decision before informing the individual concerned is unethical.

Unnecessary: Talking too much during the termination discussion often results in managers getting into the blame game or making inane excuses. A manager must be polite but to the point when asking an employee to leave. As an expert says, "There is nothing wrong in saying you are sorry, but be careful regarding anything else you say." Another thing that must be avoided is arguing with the employee. No one will be thrilled about being asked to leave. So managers must allow employees to vent their anger.

Reference:

TheManageMentor.

Human Resource Development: Developing Learning From the Seeds of Frustration

Developing Learning From the Seeds of Frustration

I'm frustrated, and my frustration ebbs and flows with each article I write. It feels as though my writing has become stagnant and boring, not inventive and thoughtful. I'm pushing myself to overcome my natural inclination to write as I have written in the past and instead try to craft a meaningful piece in which each word contributes to the whole. In an effort to overcome this barrier, I've become more open and receptive to learning and growing, and I feel that it's in the seeds of frustration where learning truly takes root.

I share this personal experience to give you insight. Many employees want to be good at their jobs. When they're not, they first try to learn and grow, but if they are blocked at this critical stage, they slowly begin to lose the passion to change and become apathetic.

To ensure employees remain eager about and receptive to professional development, organizations must create environments in which frustration is accepted and, most importantly, expressed. I know it sounds unrealistic because, in today's business world, we are "go, go, go," and there's no time for feelings, frustrations or mistakes. But if your organization truly is a learning organization, your employees must be able to communicate without fear of reprisal. Open and honest conversations should happen, where one can say, "I'm frustrated, and I want to know how I can get past that."

When this conversation occurs, it's crucial employees voice how they envision change happening. Managers can ask questions such as, "What would help you grow? What sort of activities or training can we develop that will push you further? What do you need from me to facilitate this process?"

One of the learning function's roles is to provide managers with the tools to conduct this conversation, so the development plan that results from an employee's frustration is not solely the dictation of the manager, but rather co-created.

If your employees don't feel comfortable sharing these thoughts, organizations can mine Facebook, MySpace and blogs - which can be known as venting grounds for disgruntled and former employees - for information about how they really feel about their jobs. (For instance, on Facebook, the "I Sold My Soul to Starbucks and All I Got Was This Green Apron" group has 4,103 members.) Then you can start to make concentrated changes. Once employees see the concerted effort to improve, they will see their voices count.

In the end, for me, it is the deep conversations with my editors that give me the tools I need to push through and become better. Now it's my job to carry it through.

Reference:

Lindsay Edmonds Wickman

[About the Author: Lindsay Edmonds Wickman is an associate editor for Chief Learning Officer magazine.]

Human Resource Safety - 4 Electrical Safety Problems—and Solutions.

Electricity can kill, and, even when it doesn't, electrical accidents can give a nasty shock, burn skin, or even damage nerves and internal organs. Severe electrical shocks can also cause shoulder joint injuries and break bones in the neck due to muscle contractions.

The OSHA Required Training for Supervisor outlines the main electrical safety problem areas that most supervisors must commonly handle.

Problem Area # 1 — Hazard Awareness

Safety audits should always include an electrical component. Here are some items that should be on everybody's electrical safety inspection checklist: 

• Machinery and power tools 
  
• Cords, plugs, outlets, and circuits 
  
• Wiring, switches, and circuit breakers
• Grounding for tools and equipment, including a ground fault circuit interrupter (GFCI) in wet areas 
  
• Proper PPE

Problem Area # 2 — Maintenance and Repairs 

OSHA says that only "qualified" workers can perform electrical maintenance and repairs. OSHA defines qualified workers as those who have been fully trained to identify exposed live electrical parts and their voltage, and who have learned exactly what procedures to follow when they work on exposed live parts or are close enough to be at risk.

Everybody else is "unqualified," and you don't want any of them messing around with electrical wiring or trying to repair electrical equipment. According to statistics compiled by the National Institute for Occupational Safety and Health (NIOSH), you have to be particularly concerned with new hires and young male employees. A NIOSH study identified 41 percent of workplace electrocution victims as people who'd been on the job less than a year, and 64 percent were males under the age of 35.

Problem Area # 3— Lockout / Tagout

Many serious injuries occur each year because machines are not properly de-energized before maintenance and repairs are attempted. To prevent these accidents, OSHA has developed a set of special lockout/tagout procedures: 

• Notify workers in the area that equipment will be shutdown and locked out for repairs/maintenance. 
  
• Turn off the machine. 
  
• Deactivate energy isolating devices—the circuit breaker, disconnect switch, or other device that provides energy to the machine. 
  
• Lockout and/or tagout control switches in an "off" or "safe" position to prevent accidental start-up or energy release. 
  
• Release or block stored energy. 
  
• Test operating controls by putting them in the "on" position to make sure the machine does not start up. Then return operating controls to the "off" position. 
  
• Perform necessary repairs or maintenance. 
  
• When work is completed, remove tools and other items, reinstall machine guards, make sure other workers are at a safe distance, remove locks and tags, turn on energy and test to make sure machine is working properly, and notify workers that the machine is back on line.

Problem Area # 4 — Safety Procedures for Unqualified Workers 

All those who have a job that might expose them to the risk of electrical shock, need some very basic electrical safety training. Here's a reminder of some "don'ts":

Don't Use ...

• Cords or wires with damaged or worn insulation. 
  
• Electrical equipment that smokes, sparks, shocks, smells, blows a fuse, or trips a circuit. 
  
• Any non-GFCI outlet in a wet area. 
  
• Cords or electrical equipment in areas with explosive or flammable materials that are not approved for this specific use. 
  
• A cord with a bent or missing grounding plug. 
  
• A metal ladder or hard hat when you are working near electricity. 
  
• Metal tools to work on electrical equipment. 
  
• Electrical cords to raise or lower equipment. 
  
• Extension cords unless necessary, and then, only a cord that is rated high enough for the job.
  

Employee Resignation.

How to Handle an Employee Resignation.

Face it. Sooner or later, even the best employer has employees resign. They think they've found a better opportunity or their spouse has accepted a job out-of-state. The reasons are endless for an employee resignation. But, each employee resignation poses the employer with a series of questions. How do you announce the employee's resignation? Who needs to know what about the employee's resignation? When do you tell your employees about the employee resignation? Here are answers to the questions you may have about employee resignation.

An employee has just resigned. The norm is that the employee tells you verbally that he or she is resigning from your company. Immediately ask the resigning employee for a resignation letter in writing with their final date of employment stated. This protects you from unemployment claims and other charges of impropriety.

Dealing With Employee Resignation

An employee resignation always causes some disruption in the workflow, however, if the employee resigning is valued and you decide to let him or her work their final two weeks, they can do a lot to make the transition successful. This assumes that you have assessed that the individual will remain a positive contributor until their final day.

They can wrap up loose ends, provide details about ongoing projects, and email friends and coworkers about their leaving. Make sure you assign employees to pick up the work of the departing employee. They will have a head start if they can confer with the person leaving to understand the challenges and details of their job. Additionally, if the employee resigning has customer contact responsibilities, they can provide an introduction to the person who will be picking up their responsibilities.

You might ask administrative employees, and others who have jobs with clear and documentable responsibilities, to create a procedure manual prior to their departure. But, hopefully, you already have these procedures documented and in place.

Notification to Coworkers and Customers About an Employee Resignation

To notify other employees about an employee's resignation, start by telling the employee's own department about the employee's resignation. Perhaps call a quick meeting and inform the other employees that the employee's last day is in two weeks. Tell them that you will appreciate their help to pick up any loose ends and inform them to whom the various responsibilities have been assigned.

Your other employees will also want to know the timeline for replacement of the departing employee. Generally, good employees are quite willing to perform extra work or work longer hours to fill in, but they appreciate knowing the time frame during which this will be expected.

With a trusted, valued employee who will be working out their two week's notice, send an email to notify the other employees immediately of the employee's resignation. You might say something such as: Mary is leaving us to pursue new opportunities at X company. Her last day at our company is: date. Please join me in wishing Mary tremendous success in her future endeavors. We will hold a say good-bye party at Tom's Tavern on Mary's last day. Please join us to wish Mary success in her new employment and to say good-bye.

Of course, before you send this information out, check with Mary to see if she is comfortable with all of the above. She may even have a personal email address that she wants to share so people can stay in touch.

Many of your employees probably knew that Mary was looking and they also know why. Employees like closure when a valued colleague leaves so your graciousness is not only appreciated, it sends a powerful message to the employees who remain. Of course, you will hold an exit interview during which you will become clear about why the employee is leaving.

I am not a believer in making counter offers or in enticing Mary to stay. In her mind, she has already moved on.

How to Notify Employees When the Employee Resignation Is Welcome

The scenario changes if the employee resigning is not valued or you don't trust the person to carry out their responsibilities successfully during their two week's notice. In these cases, tell the employee that you will pay him or her for their time, but their services are no longer required. Follow the additional guidelines in this employment ending check list. And, ask yourself why you continued to employ this individual under any circumstances to avoid repeating your mistake in the future. Firing an employee can be ethical, legal, moral, and appropriate.

To announce the employee's resignation, send out an immediate email to all employees stating that Mary has left the company to pursue new opportunities effective on today's date. You might add that you wish her success in her new opportunities. Communicate also, where any of her responsibilities have been reassigned. You may want to add some details about how and when you plan to seek a replacement due to the employee resignation.

Reference:

Susan M. Heathfield

[About the Author: Susan Heathfield is a Human Resources expert. She is a management and organization development consultant who specializes in human resources issues and in management development to create forward thinking workplaces. Susan is also a professional facilitator, speaker, trainer, and writer. Susan is a member of the Society for Human Resource Management (SHRM) and the American Society for Training and Development (ASTD). Susan contributes regularly to professional publications including a book chapter for ASTD and a recent article in the American Society for Quality's Journal for Quality and Participation.]

Motivating The Team.

Principles For Success As A Manager - Motivating The Team

"People deal too much with the negative, with what is wrong. Why not try and see positive things, to just touch those things and make them bloom?"

Thich Nhat Hanh (Vietnamese Buddhist Monk)

In our careers as hoteliers managing a wide range of people, we have all been exposed to people who enjoy being part of the "team" and others who are viewed as or seem to regularly act contrarian. While most of us as managers and supervisors would rather avoid conflict and confrontation, reality has shown us repeatedly that we need the "team" in a business that is open to the public 24 hours a day, 365 days a year.

While leaders often may seem inspirational, they often do not have the interest or stamina to be involved in the every day necessity of managing the process of delivering results through other people.

Managers are the ones often responsible for handling, directing, organizing, monitoring and yes, motivating the team. Each of the global leaders in hospitality had a group of managers who assisted them in immense ways to launch the vision and thereby change the industry.

Motivating the Team

1. Understand what motivating really means

A key responsibility for today's hotel supervisor and manager is to get the team as a unit and as individuals to regularly excel at what they do - every day!

This means recognizing that people are generally self-motivated to earn something they want or to preserve something they already have. Focusing on the positive in any economic cycle is less stressful for all parties - threats are basically bullying tactics.

People work in hotels for different reasons, including:

a) "Love" of the business - the art of hospitality

b) The chance to work with friends or families

c) The flexibility of shifts or hours

d) The potential of promotion and career success

There are many other potential reasons, but there are usually tangible goals. Abraham Maslowl, the well-known behavioral analyst, identified two generations ago a foundation of human needs that remain relevant today.

a) the need for physical things

b) the need for safety

c) the need to belong and loved

d) the need for esteem

e) the need for self actualization

Physical things are the basics - food, shelter, and clothing. Self-actualization is more complex because it recognizes the maturing of the individual and what they are seeking from life. We all move up and down the hierarchy at different points in our lives and managers who understand that "one size does not fit all" in their strategies to motivate their team will evolve into consistent winners.

2. Recognize that money is not the answer to everything

Statistics within the hospitality industry from the Cornell University Hotel School web site and other industry sources place turnover at a range of incredibly high percentages.

We have often thought the reason for this turnover was less than desirable pay, benefits, job security and working conditions. While the hotel industry is not always the highest paying, it seldom ranks at the bottom of the rung any more. Dr. Frederick Herzberg identified that people work their best when their work is interesting and when they are recognized for their contributions.

The more that managers and supervisors can provide their team with the latitude to do their job without the negative of constant supervision, the more that staff is likely to respond positively and with results.

3. Provide meaningful work, not errands

Even in the most sophisticated of hotels and restaurants, people accept the reality that the manager or supervisor has the right and responsibility to provide direction and overall supervision. Focused companies like Gaylord and Marriott that provide the training to ensure their teams are prepared have proven track records of both lower turnover and measurable successes. Yes, we all have to complete "grunt work" at times, but reflect on allowing your team to fine tune the details of the menial tasks rather than giving them minute details of how to accomplish it.

4. Set and communicate team goals

We all use road maps in unfamiliar territory to get us from one point to our destination. Goals make the every day business more interesting and they provide a target to shoot for.

To be effective:

a) Goals must be challenging. To set a goal of reaching a ReVPAR of $100 this month when last month's results were $145 is not likely to be motivating. (Unless of course it is a different season for demand)

b) Goals must be achievable. If the hotel has never exceeded $125 ReVPAR and there is no special event to make it happen, setting a goal of $145 is going to be very disheartening to the team.

c) Goals must be measurable. We have all heard that "what gets measured gets done." Setting daily or weekly sub-goals gives the team a target that can be identified and understood clearly.

d) Goals must have rewards and penalties. Meeting the goal should be acknowledged in as many ways as possible, with compliments and incentives when possible. The penalty need not be a negative action, but simply the lack of compliments and incentives. Our team members are adults- they will understand.

5. Create and use individual scorecards for individual accountability

For more than 12 years, I maintained a consulting/training practice. I was responsible for literally everything. If I paid attention to the appropriate details, my success rate was much higher than if I did not. As a sole practitioner, I was the team except when I added subcontractors or unless I worked as part of a consulting team for another group.

Very few of our hotels use single workers - we are all part of a team, yet we still want to be recognized for our individual contributions.

There are many good resources available online that can offer templates and "how-to" approaches to creating meaningful scorecards. These can be done for every department and individual.

They must be:

a) Measurable, such as number of rooms cleaned, amount of revenue booked, reservation contribution per shift, number of appetizers sold, etc.

b) Qualitative whenever possible.

c) Financially understood, as that is part of everyone's role

d) Tied somehow to the team goals as outlined in #4.

6. Practice Public Praise and Private Criticism

For some managers, giving praise can be quite challenging, but it is essential for motivation.

Disconnect combining the praise with the criticism whenever possible. The "but" that comes after the praise comes is often diluted when it is followed by criticism.

Both are needed in hospitality and every business. If they must be combined, offer the positive feedback after the harsh material has been addressed.

7. Consider Merit Increases rather than those based on seniority only

How much am I really worth? This is a legitimate question facing us all, as managers or a member of the team.

A challenge facing the hospitality industry is the feeling of entitlement to an automatic raise, regardless of contribution, the health of the hotel asset or the business environment.

An option is to provide EVERY team member the opportunity of earning a merit increase because they participated in hotel sponsored or approved training that has the potential of improving the success of both the hotel and the individual. Taking the training alone is not enough - there needs to be a measurable skill or gained competency.

If a front desk agent learns how to forecast, then the person now doing the forecasts might be able to advance to another task. If a breakfast cook learns how to work the banquet prep line, everyone has the potential for advancement.

Seriously think about this one...it works!

8. Coach your team as a strong way to help them reach beyond where they are

Coaching is a way to develop and fine tune skills. This means we as managers need to consider some guidelines for effective coaching, including:

a) Determine the need. If a restaurant hostess is just not effectively seating guests in a logical way to insure quality service, something needs to be corrected. This may be as simple as a discussion on the goal of balanced seating for the service standard as well as being fair to the service team.

b) Ask; don't tell the individual about how s/he feels things are going. If the individual does not comprehend the problem, the coaching element can then be to ask them if they have noticed the problem. The solution can then be shared and discussed.

c) Coaching has steps: tell, show, have them try, reteach if necessary and then let them try again. Repetition the right way does work. Look at any successful athlete in any sport - they identify what is not working and work to correct the shortcoming with repeated practice - the RIGHT way.

d) Follow up later to make certain the coaching stuck. This is not micromanagement, but rather is a caring team leader who wants their team to be successful.

e) Compliment the team member on their success. Recognition of a job well done is an incredibly strong motivator.

9. Counseling can be both a verb and a noun - learn to share both!

Counseling can be the opposite side to coaching. Rather than addressing a skill set that needs development or refinement, counseling often aims at the manifestation of poor attitudes that are displayed in the application of skills.

You notice the housekeeping supervisor, who has been quite competent at her/his job, over a few weeks has begun to stop paying attention to timely reordering of supplies necessary to meet quality standards. In addition, this same person has become abrupt with other team members.

You may not know what has happened, but you cannot allow it to continue. Counseling actions steps might include:

a) Asking what is going on. Share that you have noticed a change and ask why this is occurring.

b) Listen without interrupting. Allow them to offer their explanation.

c) Don't be judgmental. Many times, changes can be related to personal situations that they are facing.

d) While it is natural for us to be generally attuned to our staff's situation, don't ask beyond what is right to know for a supervisor or manager.

e) While you may empathize with the situation, such as an illness or trouble on the home front, offering free advice on topics outside the workplace is not appropriate and may very well come back to haunt you.

Keep what you have found out to be confidential and advise the staff member that you will do so. If you have an Employee Assistance Plan through your hotel, offer it as an option. Tell them you will be as understanding as possible.

This approach will not solve their problem, but it will show them you care about them as an individual. Counseling can be used both in correcting problems and in developing and maintaining positive attitudes.

10. Commit to a goal of 100% quality - every day!

Many of the major brands today are reducing the number of corporate staff conducting pure, on site "inspection". This does not mean they are lowering standards, but are using the benefits of technology. Services from AAA assessments, guest feedback at TRIP ADVISOR and other sites combined with email guest surveys are providing everyone with likely guest experience at a hotel.

Today's successful hotel managers train and then trust their staff to self monitor their own area, especially with the team goals and individual scorecards goals to keep their staff focused on what is important. Commitment to quality has to be part of everyone's responsibility.

Reference:

Dr. John Hogan

[About the Author: John Hogan is a frequent guest speaker at industry events and advises hotel management groups and owners, lenders, asset managers and operators on industry 'best practices' and conducts reviews of quality in operations and marketing. Hogan's professional experience includes over 35 years in hotel operations, food & beverage, sales & marketing, training, management development and asset management on both a single and multi-property basis. He holds a number of industry certifications (CHA, CHE, MHS, ACI) and is a past recipient of the American Hotel & Lodging Association's Pearson Award for Excellence in Lodging Journalism, as well as operational and marketing awards from international brands. He has served as President of both city and state hotel associations.]