August 19, 2002 Issue

Plan Now for 2003 Human Resource Strategy Issues

1. HR remains firmly entrenched in employment and recruitment efforts. HR tends to have exclusive responsibility for college recruiting efforts.
2. Two-thirds of surveyed firms outsource at least one human resource activity to an outside vendor. EAP and counseling programs are the most outsourced activities.
3. HR staffing levels appear to have shifted downward a bit from the mid-1990's. For 2002, the median ratio of human resources staff to total headcount is 0.9 HR staff for every 100 employees.
4. Managers and professionals make up roughly equal proportions of HR department staff.
5. Human Resource departments have lost some of their share of organization coffers. HR budgets for 2002 represent a median of 0.8 percent of planned organization-wide expenditures for this year, compared to 1.0 percent in 2001.
6. For 31% of respondents, 2001 HR expenditures came within budgeted levels. 25% overextended their 2001 budget. 28% came in below budgeted levels.

1. The political climate of the country. 2002 is a national mid-year election with the entire House of Representatives and one-third of the Senate up for election. Election results could shift the balance of political power in such a way that economic and labor decisions could be altered. Without knowing this outcome in advance, the HR professional must assume that any major shifts will not take place during the first half of 2003. The first part of 2003 should see no drastic change in economic and social legislation as the two political parties focus on power positioning. However, the latter half of 2003 should be extremely active as those who desire the presidency begin to position themselves as the best choice for the people. Presidential campaign announcements usually begin in October the year before an election.
2. The economic climate of the country. We are in an on again off again recession with stock markets fluctuating on a daily basis. The American public has lost faith in business leaders. There is an increasing pressure placed on disclosure and corporate accountability. Human Resources will find itself in the middle of this. There will be increased pressure for enhanced and expanded employee communication regarding corporate, pay, benefit, and pension decisions. Human Resources will take on the role of internal public relations for the organization and will be held accountable for bringing issues and concerns to senior management.
3. The continued pressure for HR to address employees' generational issues. Aging boomer generation needs will be more in conflict with the needs of generations X and Y. Human Resources will be in the middle when attempting to retain Boomer employees with key competencies while at the same time offering programs attractive to Generations X and Y. HR itself will feel internal conflict as boomers, who tend to be in more leadership positions, must be willing and open to listen to and accept the wisdom of the younger Xers and Yers within the department.

1. Ask some key questions.
   • What types of employees are required to meet our organization's strategic initiatives?
   • What systems must be in place to attract, retain, and develop employees to be successful?
2. Take another look at four key aspects of your organization.
   • Has the organizational culture - norms, beliefs, values - been altered?
   • Are reporting relationships and the organizational structure the same, or is there a need for modification?
   • What is the current competency level of our managers and employees?
   • Can human resources respond to the organization's needs?
3. Conduct a SWOT (strengths, weaknesses, opportunities, threats) analysis of the HR function.
   • What do we do well at? Build on this.
   • What is not working? Why?
   • What are the opportunities for improvement? What resources will it take to get there?
   • What will prevent improvement from happening?
4. Find a champion.
   • Determine who among senior management understands the role of HR. Develop an informal working relationship with them. Learn what will work, what will not, and have them champion the HR cause at the decision table.
5. Apply ROI (Return on Investment) analysis to HR decisions.
   • Develop a cost / benefit analysis on every HR program recommended. Attempt to determine the financial impact of any and all HR programs. Work with Finance to better understand how ROI is calculated in other parts of the organization. Adopt this calculation into your program proposal development.

Looking for a top-notch presenter for your human resource organization's meeting? Both Jennifer Loftus and Michael Maciekowich present highly-rated sessions on a variety of compensation and employee retention issues. For more information, send an e-mail to info@astronsolutions.com.

Are you reading a pass-along copy of Astronology? Click on this button to start your own subscription today!

Send inquiries to info@astronsolutions.com or call 800-520-3889, x105.

To remove yourself from this list, please follow your personalized subscriber link at the bottom of your Astronology alert e-mail.

Copyright 2007, Astron Solutions, LLC

ISSN Number 1549-0467