It's 2006-Do You Have a Human Resource Strategy

This new century demands that management havethe "back room" to the "boardroom" if you expect to
adaptive skills working across the generation diversitybecome Employer of Choice. Emphasis and focus
that exists in today's workplace. No doubt people aremust be placed on the importance of continuous
an organization's most precious asset. Today, unlikeprogress and managing change through goal setting.
any other time in history, that asset is filled withGoals must be realistic, reasonable, challenging and
generational diversity. This diversity sits side-by-side,attainable:o Long termo Intermediateo Short term
shoulder-to-shoulder, cubicle-to-cubicle andDeveloping Your Human Resource Strategy
warehouseman to warehouseman. This generationalOnce you have established your vision, the next step
diversity can create tension, mistrust and conflict andis to develop your human resource strategy. This
negate loyalty to the company in general.strategy is the process by which you will achieve your
How is This Generational Diversity Defined?vision of becoming an Employer of Choice. You must
The most publicized and visible generation grouping ofbe committed to becoming Employer of Choice. Your
today are the Baby Boomers, born between 1943 andstrategy must evolve around that commitment,
1965, then we have the Generation Xers, bornintelligence, judgment and one more time, it must focus
between 1965 and 1980 and finally we have theon your most precious asset - your employees.
Generation Veterans, nearing retirement, born betweenDo not let ego get in the way of judgment. Managers
1935 and 1942. Generalities tell us that the Boomersneed to challenge old ways. You must be determined
think the Xers are greedy, lazy and have a poor workto create a culture where worth is determined by a
ethics. The Xers think the Boomers are obsessive,willingness to learn new skills and adapt to change.
dictatorial and lack understanding and empathy. TheyYou must create an environment that makes it fun to
"live to work" and the Xers "work to live." Thego to work. Do not measure how well you are doing,
generation veterans are considered a pain in themeasure how much you have changed.
backside by the action oriented Boomers and the"In the years ahead, workforce stability will be a
technology crazed Xers.company's competitive sales edge. In these turbulent
To add even more challenge to your objectives intimes, exacerbated by a tight labor market, employers
Human Resources, consider the workforce bornwill be continually challenged to locate, attract, optimize
between 1981 and 2000. These are the youngstersand retain the talent they need to serve their
just now entering the work force. Let's call them Thecustomers. The most successful employers will be
Nexters. Many in this group, early on , primarily hangsthose who legitimately inspire highly talented workers
out in the service industries like fast food. You may runto join them and stay with them."
into a few out on your warehouse floor. As they ageRoger E. Herman and Joyce L. Gioia
and gain more education you find them entrenched inHow to Become An Employer of Choice
technology, E-Business and many become web-headAdam Fein of Pembroke Consulting reports in Facing
evangelists. They are eager to learn, willing to work,the Forces of Change that nearly 20% of the U.S.
but lack the loyalty the Boomers expect from theirworkforce will be 55 years old or over by 2010, up
employees. The Generation Xers consider the13%. He states that baby boomers are aging and the
Nexters self-absorbed, spoiled brats.situation will get worse. The 25-44 year old segment
You might find it helpful to create a portrait of eachwill decrease by another 6% to 26% by 2010. All these
generation. Study it, understand it, try to learn whatfacts mixed together only heighten the importance of
they value most. Listen to them. Try to understand theyour Human Resource strategy.
historical events that shaped their lives (Viet Nam,The Human Resource Planning Processo Clearly
Woodstock, Gulf War, civil rights, birth control, Kentdefine Human Resources role in the strategic business
State University, safe water, safe environments). Tryplan. Set specific objectives, assign accountability and
to profit from their perspectives and insight. Takedevelop time lines for becoming employer of choice.o
advantage of the youthful energetic innocence and theFollow the planning process map:o Develop
wisdom of the experienced.performance driverso Develop recruitment and
Things to Be Aware Ofretention strategieso Create a scorecardo Define
Since we are experiencing the most value-diversepolicies and practiceso Career counselingo Coaching
workforce this country has every known, traditionaland mentoringo Internship programo Education and
thoughts in the area of Human Resources must betrainingo Creative employee support (day care- job
challenged. The Xters and Nexters have a completelysharing etc.)
different mind set and value system than most of theMake It Fun to Come To Work
executives in the distribution industry who happen toThe key to employee retention is not necessarily
be Boomers. We can no longer think that thiscompensation based. It has been proven time and time
generation should be grateful for the opportunity toagain that money is not high on the motivational factor
work for us. In fact, we may have to consider a hiringlist. However, money can rise to the top of the list of
bonus. We must temper our expectations of long termcomplaints if an employee does not enjoy coming to
loyalty. As one Generation Xer put it, "If you wantwork every day. When an employee really likes their
loyalty, buy a dog." The Xers and Nexters are muchjob, environment and peers and feels they are well
more technically savvy. They carry laptops, are muchtreated and respected, money becomes a non-issue in
more mobile and have a different value system.most cases.
A Human Resource Strategy is Key to BecomingThere is a book called 1001 Ways to Reward
Employer of ChoiceEmployees (Author, Bob Nelson, Workman publishing). I
A human resources strategy must be included in yourencourage you to order this book.
corporate strategic plan. Make sure you have aHuman Resource is an Investment in Your Employees
Human Resources professional on your staff to dealUnleash yourself from the self imposed trap many of
with the sweeping changes in the workplace. Thisus have placed ourselves in by considering Human
person must be a skilled, knowledgeable businessResources a cost center. If you develop a definitive
partner. They must play a vital role in helping yourHuman Resource strategy geared to make your
organization become or remain competitive in the laborcompany the Employer of Choice in your markets,
marketplace. Becoming the Employer of Choice beginsHuman Resource will become a profit center.
and ends with your Human Resource staff. However,Recruitment & Retention alone will create a
it is not their task alone. Every manager in thetremendous return on investment to your company
company, from the President to the warehouseResearch shows that it costs between 50 - 150% of
supervisor, shares in that responsibility.an employee's annual salary to replace them. This
Where are you now?does not include their actual salary. For example, the
Determine where you are today in relationship tocost to replace an inside sales person that just
becoming an Employer of Choice. What strengths doresigned could exceed $75,000. The cost to replace
you have to build on? What are the competencies thatan employee includes costs for both recruiting and
you need to develop?training the new employee plus the loss of productivity
As an example, consider your company's currentwhile the position is empty and even during the
performance in the following areas. You may want to"learning curve". The exact cost depends on the level
assign a score of 1-10 to each item and include a list ofof the position and the current market demand for that
its strengths and weaknesses:o Human relationsposition. However, consider having to replace 15
leadership skillso Commitment to treating employeesemployees over the course of a year. Suppose the
as your most valuable asseto Trainingo Credibility ofaverage salary is $40,000. The replacement cost of
your management team and company visionothose employees would be as follows:
Communication skillso Decision-making skillso Benefitso10 employees@ $40,000 = $400,000 X 150% =
Other employee related support systems$600,000 and that doesn't include their pay. This is a
Create a Human Resource Visionphenomenal hidden expense.
Once you've determined the current state of yourEven if you use the more conservative statistic of
human resource function you should create a vision of100% of salary, the cost savings would be four
what your human resource competency should be.thousand dollars.
You must be committed to becoming Employer of"This does not include the lost opportunity costs in the
Choice. Your vision must evolve around thatmarket place."
commitment. It must be developed with intelligence,Don't underestimate the power of your employees.
sound judgment, a willingness to step outside the boxTreat them with respect, gain their trust, invest in
and, most importantly, a focus on your most preciousbecoming Employer of Choice and you will release
asset - your employees.more discretionary energy, creativity and innovation
The Human Resource professional must move fromthan you can imagine.