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

This new century demands that management have- Short termDeveloping Your Human Resource
adaptive skills working across the generation diversityStrategyOnce you have established your vision, the
that exists in today's workplace. No doubt people arenext step is to develop your human resource strategy.
an organization's most precious asset. Today, unlikeThis strategy is the process by which you will achieve
any other time in history, that asset is filled withyour vision of becoming an Employer of Choice. You
generational diversity. This diversity sits side-by-side,must be committed to becoming Employer of Choice.
shoulder-to-shoulder, cubicle-to-cubicle andYour strategy must evolve around that commitment,
warehouseman to warehouseman. This generationalintelligence, judgment and one more time, it must focus
diversity can create tension, mistrust and conflict andon your most precious asset - your employees.Do not
negate loyalty to the company in general.How is Thislet ego get in the way of judgment. Managers need to
Generational Diversity Defined?The most publicizedchallenge old ways. You must be determined to create
and visible generation grouping of today are the Babya culture where worth is determined by a willingness to
Boomers, born between 1943 and 1965, then we havelearn new skills and adapt to change. You must create
the Generation Xers, born between 1965 and 1980 andan environment that makes it fun to go to work. Do
finally we have the Generation Veterans, nearingnot measure how well you are doing, measure how
retirement, born between 1935 and 1942. Generalitiesmuch you have changed."In the years ahead,
tell us that the Boomers think the Xers are greedy,workforce stability will be a company's competitive
lazy and have a poor work ethics. The Xers think thesales edge. In these turbulent times, exacerbated by a
Boomers are obsessive, dictatorial and lacktight labor market, employers will be continually
understanding and empathy. They "live to work" andchallenged to locate, attract, optimize and retain the
the Xers "work to live." The generation veterans aretalent they need to serve their customers. The most
considered a pain in the backside by the actionsuccessful employers will be those who legitimately
oriented Boomers and the technology crazed Xers.Toinspire highly talented workers to join them and stay
add even more challenge to your objectives in Humanwith them."Roger E. Herman and Joyce L. Gioia
Resources, consider the workforce born between 1981How to Become An Employer of ChoiceAdam Fein
and 2000. These are the youngsters just now enteringof Pembroke Consulting reports in Facing the Forces
the work force. Let's call them The Nexters. Many inof Change that nearly 20% of the U.S. workforce will
this group, early on , primarily hangs out in the servicebe 55 years old or over by 2010, up 13%. He states
industries like fast food. You may run into a few out onthat baby boomers are aging and the situation will get
your warehouse floor. As they age and gain moreworse. The 25-44 year old segment will decrease by
education you find them entrenched in technology,another 6% to 26% by 2010. All these facts mixed
E-Business and many become web-head evangelists.together only heighten the importance of your Human
They are eager to learn, willing to work, but lack theResource strategy.The Human Resource Planning
loyalty the Boomers expect from their employees. TheProcess- Clearly define Human Resources role in the
Generation Xers consider the Nexters self-absorbed,strategic business plan. Set specific objectives, assign
spoiled brats.You might find it helpful to create aaccountability and develop time lines for becoming
portrait of each generation. Study it, understand it, tryemployer of choice.- Follow the planning process
to learn what they value most. Listen to them. Try tomap:o Develop performance drivers
understand the historical events that shaped their liveso Develop recruitment and retention strategies
(Viet Nam, Woodstock, Gulf War, civil rights, birtho Create a scorecard
control, Kent State University, safe water, safeo Define policies and practices
environments). Try to profit from their perspectiveso Career counseling
and insight. Take advantage of the youthful energetico Coaching and mentoring
innocence and the wisdom of the experienced.Thingso Internship program
to Be Aware OfSince we are experiencing the mosto Education and training
value-diverse workforce this country has everyo Creative employee support (day care- job sharing
known, traditional thoughts in the area of Humanetc.)Make It Fun to Come To WorkThe key to
Resources must be challenged. The Xters andemployee retention is not necessarily compensation
Nexters have a completely different mind set andbased. It has been proven time and time again that
value system than most of the executives in themoney is not high on the motivational factor list.
distribution industry who happen to be Boomers. WeHowever, money can rise to the top of the list of
can no longer think that this generation should becomplaints if an employee does not enjoy coming to
grateful for the opportunity to work for us. In fact, wework every day. When an employee really likes their
may have to consider a hiring bonus. We must temperjob, environment and peers and feels they are well
our expectations of long term loyalty. As onetreated and respected, money becomes a non-issue in
Generation Xer put it, "If you want loyalty, buy a dog."most cases.There is a book called 1001 Ways to
The Xers and Nexters are much more technicallyReward Employees (Author, Bob Nelson, Workman
savvy. They carry laptops, are much more mobile andpublishing). I encourage you to order this book.Human
have a different value system.A Human ResourceResource is an Investment in Your EmployeesUnleash
Strategy is Key to Becoming Employer of ChoiceAyourself from the self imposed trap many of us have
human resources strategy must be included in yourplaced ourselves in by considering Human Resources
corporate strategic plan. Make sure you have aa cost center. If you develop a definitive Human
Human Resources professional on your staff to dealResource strategy geared to make your company
with the sweeping changes in the workplace. Thisthe Employer of Choice in your markets, Human
person must be a skilled, knowledgeable businessResource will become a profit center. Recruitment &
partner. They must play a vital role in helping yourRetention alone will create a tremendous return on
organization become or remain competitive in the laborinvestment to your companyResearch shows that it
marketplace. Becoming the Employer of Choice beginscosts between 50 - 150% of an employee's annual
and ends with your Human Resource staff. However,salary to replace them. This does not include their
it is not their task alone. Every manager in theactual salary. For example, the cost to replace an
company, from the President to the warehouseinside sales person that just resigned could exceed
supervisor, shares in that responsibility.Where are you$75,000. The cost to replace an employee includes
now?Determine where you are today in relationship tocosts for both recruiting and training the new
becoming an Employer of Choice. What strengths doemployee plus the loss of productivity while the
you have to build on? What are the competencies thatposition is empty and even during the "learning curve".
you need to develop?As an example, consider yourThe exact cost depends on the level of the position
company's current performance in the following areas.and the current market demand for that position.
You may want to assign a score of 1-10 to each itemHowever, consider having to replace 15 employees
and include a list of its strengths and weaknesses:-over the course of a year. Suppose the average
Human relations leadership skillssalary is $40,000. The replacement cost of those
- Commitment to treating employees as your mostemployees would be as follows:10 employees@
valuable asset$40,000 = $400,000 X 150% = $600,000 and that
- Trainingdoesn't include their pay. This is a phenomenal hidden
- Credibility of your management team and companyexpense.
visionEven if you use the more conservative statistic of
- Communication skills100% of salary, the cost savings would be four
- Decision-making skillsthousand dollars.
- Benefits"This does not include the lost opportunity costs in the
- Other employee related support systemsCreate amarket place."
Human Resource VisionOnce you've determined theDon't underestimate the power of your employees.
current state of your human resource function youTreat them with respect, gain their trust, invest in
should create a vision of what your human resourcebecoming Employer of Choice and you will release
competency should be. You must be committed tomore discretionary energy, creativity and innovation
becoming Employer of Choice. Your vision mustthan you can imagine. Dr. Rick Johnson () is the
evolve around that commitment. It must be developedfounder of CEO Strategist LLC. an experienced based
with intelligence, sound judgment, a willingness to stepfirm specializing in leadership and the creation of
outside the box and, most importantly, a focus on yourcompetitive advantage in wholesale distribution. CEO
most precious asset - your employees.The HumanStrategist LLC. works in an advisory capacity with
Resource professional must move from the "backdistributor executives in board representation,
room" to the "boardroom" if you expect to becomeexecutive coaching, team coaching and education and
Employer of Choice. Emphasis and focus must betraining to make the changes necessary to create or
placed on the importance of continuous progress andmaintain competitive advantage. You can contact
managing change through goal setting. Goals must bethem by calling 352-750-0868, or visit for more
realistic, reasonable, challenging and attainable:information. CEO Strategist - experts in Strategic
- Long termLeadership in Wholesale Distribution.
- Intermediate