September/October 1999

Dawning of a New Era

Business practices are constantly evolving and adapting to keep up with the tremendous changes the world faces. And human resources management is no exception. In fact, focusing on “human capital” is absolutely critical these days. Now and in the coming years, it is essential that HR (People Department at Manco) attracts and works to retain top people. But that’s only one aspect of the job. HR will also need to help create a culture in which people want to work and want to succeed. As you’ll see in this issue of Duck Tales,™ human resources management faces a new era and must respond accordingly.

It’s Not Business as Usual
An organization that’s operating on the “business as usual” premise needs to step into high gear. Business as usual simply no longer exists, and human resources departments must adapt to the new responsibilities that the new economy dictates. Our society has been transformed from the industrial age to the information age to the present knowledge age. The focus of businesses should be on “human capital” to give organizations a competitive edge. How should human resources departments be operating? Here are a few trends this Duck ® believes they’ll need to follow into the next millennium:

Business within a business. Human resources professionals should consider themselves one of the key components of an organization. As a strategic partner, HR should be intrinsically involved in the business needs of its company and align its goals with the organization’s goals. Create a business plan. An HR business plan should focus on short- and long-term objectives that help the organization meet its commitments. Measure progress. The business plan should include a Return on Investment analysis. This allows HR to determine if it is achieving targets and to justify its actions related to meeting the organization’s bottom line. Develop areas of influence. HR managers should put themselves in the drivers’ seat throughout areas of influence in the organization. By doing so, HR can help eliminate boundaries and assume partnership roles when strategies are developed.

Learning in Action
By the time you figure out how to adapt to change, it’s usually too late - the world has changed again. The fact is, we are nearly always behind and nearly always working on yesterday’s problems. The solution, according to experts, is to learn during performance - to proceed with a plan, however rough, rather than waste time trying to predict or understand the future. This solution applies not just to HR, but to departments throughout the organization.

The U.S. Army offers a good example. When troops entered Haiti, immediate problems were discovered within the Army. First, hallways and stairs on aircraft carriers could not accommodate fast-moving Army personnel carrying 80-pound packs. The solution was to move troops quickly with large elevators intended to lift aircraft. Another problem was a shortage of water. Because of heat and humidity, water consumption was much higher than expected. In response, the Army opened supply lines and moved up units responsible for supplying drink-able water. Yet another problem: Soldiers were getting dehydrated at a fast pace, requiring more IVs than anticipated.

All these problems and lessons were reported to the Center for Army Lessons Learned. Here analysts looked at the big picture and saw the problems were actually related. They reasoned that carrying 80 pounds of equipment in hot and humid weather caused soldiers to lose more body fluid than normal. The solution was for soldiers to carry only the bare essentials. This would reduce the physical exertion, thereby minimizing the need for so much water and IVs. The knowledge had immediate effect. Not only was it applied to troops already in Haiti, but the knowledge was passed on to units just being deployed to the country. Imagine if your organization had a Center for Lessons Learned. Who knows what problems could be solved!

Understanding Generation X
Almost from day one, Generation X has been misunderstood. And when it comes to the workforce, misconceptions abound. But Bruce Tulgan, a Gen X researcher and consultant, says companies that learn to understand this employee group and adapt their policies and benefits accordingly, may be rewarded with some of the best workers ever. Here’s a look at some of the myths regarding Gen X workers—those born between 1963 and 1977:

(1) They’re disloyal. This misconception was born because Gen X entered the workforce during a period of constant downsizing. With no guarantees for job security, Gen Xers simply learned to fend for themselves. They never expected to be with a company for 20 years, let alone for a lifetime.
(2) They have a short attention span. Acutally, Gen Xers are great strategic thinkers. Because they don’t like wasting time, they learn to do many things simultaneously and actually possess the advanced type of communication skills that employers need today. And how employers communicate with Gen Xers is equally important, says Tulgan. For example, Tulgan advises companies to offer information about benefits through concise, easy-to-access systems, like an online program.
(3) They haven’t paid their dues. Gen Xers want immediate rewards for performance. They are far removed from a workforce that believed showing up was good enough. Tulgan says skip the year-end incentives with Gen Xers. Instead, offer continual accolades for a job well done to create a loyal workforce.

Competent Hiring
Job candidates who thought their test-taking days ended with graduation may be surprised when they apply for their next job. Competency testing is becoming more commonplace as organizations try to select the most qualified candidate for the job. Why the surge in competency testing? A tight labor market and higher salaries, particularly in the information technology sector, have left employers struggling to find highly qualified staff. According to one survey, almost 60 percent of HR managers say job candidates simply aren’t meeting the skill levels that jobs demand. As a result, one in four companies use competency models as part of their standard hiring practices. Because organizations must invest more in the salaries and benefits they offer employees today, they are more willing to invest in recruitment methods that help them identify the best employees.

In addition, HR departments are relying on competency tests more often to gauge the effectiveness of training programs among current employees. According to recent research, organizations that use skill tests have a 25 percent higher satisfaction level with the employees they hire than those who rely on traditional methods such as reference and background checks.

Hiring From the Net
Looking for help in all the wrong places? It doesn’t take a Duck ® to figure out that the Internet will be an increasingly important tool for finding good job candidates in the coming years. Search firms can charge as much as half of the new hire’s annual salary, and a classified ad in a big-city newspaper averages $3,295. That’s one reason why more employers are turning to the Internet as a fast and inexpensive way to find eligible recruits. Not only does placing a help wanted ad on the Internet run around $377, but you get faster results. You can view online résumés in a matter of hours, instead of weeks.

Perhaps the only downside to online advertising is deciding where to place your ad. Thousands of sites exist, including those that handle general job matching and those that specialize in more specific fields, like health care or finance. With a database of more than 1 million résumés, Monster.com is the king of job matching sites. It charges $225 for a listing, which is posted in one of 17 job categories. HotJobs.com, CareerPath.com, and CareerMosaic (careermosaic.com) also offer hundreds of thousands of résumés.

Then there are other sites that feature recruits with more specific job skills. JobWeb (jobweb.org) and Jobtrak (jobtrak.com) are the leaders in the college graduate market, for example. And Yahoo (yahoo.com) lets recruiters search for job candidates by city and town. Once you find someone who matches your criteria, don’t wait to act. “If you play Hamlet about whether or not to hire someone, you’re going to lose them,” says one expert. “It’s a blood sport.”

The Future of HR
In human resources departments of the future, time will be more precious than ever. HR staffs will have little time for routine benefits administration; instead, they will be expected to help analyze and plan an organization’s strategies. Some HR departments have already solved a large chunk of this organizational challenge through online human resources service centers. While such centers were once reserved for large corporations, these web applications now make sense for small and medium-sized businesses. For example, for less than $1,000 a month, an online service center can pro-vide employees with the bulk of benefits information they need. For HR staff, that means fewer phone interruptions, less knocks on the door, and much more time to devote to critical business issues. General Electric estimates that its HR web site cut 25,000 calls to its human resources department a month. Here are some of the other benefits:

Financial savings. Processing paperwork is an enormous expense. Microsoft Corporation discovered that by using electronic forms for its 401(k) plan alone, it saved $1 million in labor. Greater understanding and appreciation. Online human resource centers provide employees with comprehensive benefits in- formation. The centers reduce employee frustration over delays and inaccurate information and increase their understanding.
Holistic view. Employees’ lives change quickly. Online centers help them manage the events in their lives in a more holistic way. Self-service. With an HR web site, employees can update a significant portion of their own HR records online.

Sincerely, Your Friend
Manco T. Duck