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September 3, 2002 Issue

Human Resource Strategies You Can Use Today

2002’s insecurities will continue in 2003. With the economy ever so slowly moving towards recovery, and the threat of another Middle Eastern war looming, it is difficult to determine what strategies to use in 2003. Numerous organizations, however, are turning to two strategies to meet their future organizational needs.

One fact is certain. Surviving organizations will be those that develop into truly “flexible” organizations. A flexible organization adapts and reacts quickly to changes in the economic environment, relies on information sharing among employees, and strives to partner with its employees to work through problems and to develop viable solutions.

For the human resource professional, the flexible organization offers many challenges. These include the following:

Understanding and identifying the core competencies required to meet flexible organization challenges.
Determining the proper mix of content experts and professional generalists to maintain required expertise, while using employees in multiple roles as situations dictate.
Understanding what is required of human resources to meet flexible organization demands.

A necessary strategy for flexible organizations is the human resource service center strategy. Like service centers for products that are manufactured and sold, the human resource service center focuses on customer service aspects of providing programs to employees.

The human resource service center relies on a core of content experts, usually in the areas of compensation and benefits, employee relations, labor relations, and training and development. These individuals are not required to have contact with employees or management, but rather develop future strategies or research responses to support the flexible organization as it adapts to a situation.

The key position in the service center strategy is the human resource generalist. Generalists provide day-to-day operational assistance to assigned areas, as well as primary recruitment, first line counseling, policy interpretation, and compensation and benefits clarifications. Generalists are trained in all aspects of human resource administration but use available content experts to address more difficult issues. They also provide the content experts with insights as to what is or is not working in the organization.

This model provides the organization with the ability to adapt to change in the environment. It also facilitates getting the right information to the right parties as quickly as possible.

Many believe that such a strategy can work only in a large organization with abundant financial resources. There are many small and non-profit organizations that have successfully implemented this strategy. Remember the following key points:

There is no need for a content expert in each human resource discipline. The Director and / or Assistant Director of HR can act as the organization’s content expert.
The number of generalist positions should be based on the level of customer service need. Many organizations supplement the need for abundant staff with on-line human resource manuals. Employees and managers can access these to obtain quick answers to basic human resource questions.

Organizations emerging from a recession with limited or no funds for their human resource programs have a second set of strategies available to them. Effective human resource departments take the lead when funds needed to retain critical staff are reduced or eliminated. Effective human resource departments excel in convincing the organization that extraordinary efforts in communicating current and future organizational financial statuses must be open and extensive. Successful survival of an economic downturn requires a partnership with employees of all levels. Human resources must orchestrate this communication effort.

Human resources will be challenged to develop a strategy to better utilize the limited resources available. Effective human resource departments develop strategic teams comprised of key members of finance, operations, and representative employees. As human resources develops alternatives, the strategy team can review and offer insights for improvements or revisions.

Current strategic offerings from human resource departments in this situation include the following:

Introduce “self-funded” reward programs to recognize teams of employees or individuals within teams. The rewards are often non-cash. In one organization, the reward was the reinstatement of employee programs that were eliminated due to financial constraints. This was a positive reward for employees.
Establish alternative benefit programs. Prioritize what should and can be maintained, what must be reduced or eliminated, and what alternatives can be developed to meet similar benefit needs. The use or expansion of cafeteria-style benefits is a key strategy.

In addition to these strategies, in preparation for when financial fortunes return, human resources will be asked for methods of retaining key employees needed to respond to this organizational change quickly. Successful organizations have employed four key strategies:

Introduce some form of competency or career-based programs to provide recognition for those who continue to develop their expertise. This also enhances the ability to recruit below market levels.
Increase human resource involvement in the community to understand the impact the organization has on the community, to better understand the supply and demand of potential human resources, and to determine how the organization can counter moves by organizations not in the same financial situation.
Introduce or expand employee involvement in organizational operational decisions. The more involvement, the more ownership behaviors develop. Employees become stakeholders in future decisions.
Focus efforts on re-recruiting your stars. Develop human resource programs that let them know they are important. Let them take informal leadership roles in employee morale issues.

2003 will provide human resources with many challenges. Supporting the organization’s need to be flexible and continuing to recruit, retain, and reward with little funding will be of utmost importance and require human resource expertise. Now is the time for human resources to be proactive.

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ISSN Number 1549-0467