Making the 21st Century Workplace WorkHank JacksonJune 19, 2016SHRM 2016 Annual Conference & Exposition

INTRODUCTION

Thanks, Brian…and thanks again to all of you for being here!

Well:If you’re an HR professional… or other business leader… focused on people management…

there is simply no better place to be…than right here, right now!

We’re at an important point…in our profession’s history.

You might even say, this is HR’s breakthrough moment.

And while I’m sure the last thing you want to hear…is another speech from someone in Washington…

For just a few minutes, I want to share why I am so excited…about this profession right now.

II. THE DECADE OF HUMAN CAPITAL—A FOLLOW UP

You see, one year ago, I said that we were in the Decade of Human Capital…

…That given where business is today,and where it’s headed tomorrow…HR is THEE business leader.

I stand here today…even more convinced because:

● The people challenges facing business have only gotten tougher.

● More voices are weighing in on issues like healthcare and wages and immigration—

our issues.

● And even things like paid leave have gone mainstream.

Last year Netflix announced…a generous paid leave policy for new parents, and Facebook CEO Mark Zuckerberg…took paternity leave.

Remember when only HR thought about these things ?

People management expertise—your expertise—is wanted and needed now more than ever before.

SHRM highlights HR’s new positioning…in our latest TV commercial….

We show how it takes HR expertise…to meet today’s workplace challenges…

…And how HR professionals—including SHRM-certified HR professionals—are driving business now.

Take a look.

[CUE SHRM COMMERCIAL]

Pamela, Michelle and Jeff are here with us today.

They are 3 of the more than 92,000 HR professionals…developing the HR competencies…needed for business today…through SHRM certification.

Let’s thank them for representing HR!

III. THE CHANGING WORKPLACE

The reason HR is in the driver’s seat now…is because some of the most pressing issues…facing people, businesses and society…come down to one thing—and it happens to be our thing:

Human capital.

And as the workplace and workforce…continue to shift drastically…we can expect more to come.

Think about it.

Not more than fifty years ago, the typical American worker was male.

He went into an actual, physical office!...where he worked 9 to 5...and then enjoyed an easy commute home.

There he spent an evening with family…

uninterrupted by his job.

He started at the bottom of a company…worked his way up and after 30 or 40 years, of dedicated service... retired...likely with a guaranteed pension.

(Some of that actually sounds nice, doesn’t it?)

But all of us in this room know,this so-called “typical” worker…no…longer…exists.

The kind of company where he worked…likely no…longer…exists.

Yet here’s what still does exist:

The way we approach the relationship between the two.

The basic employee/employer arrangement was built for business in the 1960's.

But we’re in a brand new world.

Employers, for their part,are up against

new technology…and changing employee needs.

They face intense global competition, and are trying to manage rising costs—costs of healthcare...costs of compliance…costs of just keeping the doors open.

Their entire business model…can be overturned overnight…or their industry can be disrupted…in just a few years by a new technology.

So they’ve made tough choices.

Many had to forego long-term obligations…like pensions.

Some scaled back critical investments…in workforce training and development.

And yet in this environment, they’re fighting to find the right talent…with the right skills for their organizations.

That’s the employer side of things.

But workers face some tough challenges, also.

Work is no longer…a “9-to-5” arrangement.

Thanks to technology, people can work from anywhere…and work at any time of the day—for better or for worse.

They face pressure to do more…to do it faster…and at higher skill levels.

But so far, those higher expectations and productivity, have not necessarily meant higher pay.

And the middle-class jobs that, for generations,provided stability and economic opportunity for families…are either disappearing—or coming back in a form that requires higher skills.

All of this is just scratching the surface…of what people and businesses are facing…each and every day…

in today’s world.

So is it really any surprise...that we have seen:

● The decline of the long-tenured career?

● The rise of the freelance worker?

● The calls for equal and higher wages?

● The anxiety around humans versus the machine?Or● The debate about immigration and migration?

You know, it’s time for a candid conversation…about our evolving workplace—

…And I say that no one…is better qualified to lead that discussion than HR.

IV. MAKING THE 21st CENTURY WORKPLACE WORK

This is why SHRM is laying out…our vision for the 21st century workplace.

Drawing from our HR expertise…and our nearly seventy-year history…of helping people and organizations thrive…

we identified three principles…to make the new workplace work. First, we must have a workplace that is innovative—that gives organizations and people the flexibility…to determine how, when and where work gets done.

People want to provide value…and they want to be valued.

But they’re trying to balance...work and personal lives…that are more intertwined…than ever before.

SHRM has been surveying…the employee benefits landscape…for 20 years,and do you know what has tripled…in that time?

It’s not healthcare benefits…not retirement benefits…it’s certainly not pay—

It’s telecommuting.

If a company can

achieve its' goals…while making their employees' lives a bit easier….they are on the right track…

…because in the 21st century workplace…innovative, creative work practices—will determine success.

Second, we must have a workplace that is competitive—that allows companies to attract, recruit…hire and train the talent they need.

The reality is…the skills in highest demand…are in the shortest supply—

Everything from the so-called soft skills…in communication, leadership and others…

…To the technical skills needed for today’s jobs.

As a result, the competition for talent…is immense.

About two out of every three HR professionals…say they’re having a hard time hiring…for full-time jobs...

while many people are still searchingfor good jobs!

And in this frenzied effort to match jobs…with where the skills are…people and companies…are moving around the world.

So no organization will be able to avoid…the global competition for talent.

To compete and win in the 21st century workplace,companies will have to be…much more creative and flexible…in the way they approach everything…from recruitment…to employee engagement…from performance management…to benefits.

But you know, even with a workplace that is innovative…even with a workplace that is competitive…

…We still want and need a workplace…that is equitable—fair to people and the companies they work for.

A workplace that gives everyone…

a fair shot…and equal pay for equal work.

…Because I think very few people— if any—are productive if they don’t believe…they are treated fairly.

(Pause)

As HR professionals, we must lead the conversation… about the 21st century workplace…and bring all of our skills to bear on it.

Already, many of youare doing just that.

Look at companies like Google…with their campus culture…

Or Tata in India…with their own university concept…

Or Zappos with their flat organizational structure...

Or Adobe with their enlightened view…on performance management.

All of these organizations…and others of all sizes…are trying to redefine the employee-employer relationship…for the 21st century.

But not everyone is on the same page.

Take the recent overhaul…of the U.S. overtime regulations.

The spirit of the overtime regulation…is to boost incomes of hard-working employees…who do indeed work overtime…to help their businesses succeed…

…To restore that basic sense of fairness.

But the new standards the Department of Labor set,are simply too much, too quickly…and out of step with today’s… work environment.

Millions of workers may lose…the professional ‘exempt’ status they worked hard for…and more importantly lose the flexibility that goes with it.

The rule may return us…to that outdated way of working I mentioned earlier…where people feel bound to their desk and the clock.

Of course, SHRM led the coalition…to make the voice of HR and business heard…on this important issue.

You can’t imagine what this regulation…would have been without SHRM's input.

In fact, a member of Congress recently called me…to thank SHRM for our work…leading the response to the Fair Labor Standards Act regulations.

You can be sure that SHRM will continue that work…to ensure your voice is heard…and to get you the information you need…to comply.

But the bottom line is this:

Leaders here in Washington and around the world…are developing policies like this overtime rule…to try and strike a balance...between the needs of companies…and the people who work for them.

They need our help and ideas…because a cornerstone of the 21st century workplace, will be getting this balance right.

SHRM is taking these principles…of innovation…of competitiveness…

of fairness…to all elected leaders, government officialsand candidates for office.

To influence policies as they are drafted.

I want to thank…the 262 SHRM state councils and chapters…that have already signed onto these principles.

And this week you’ll learn more…about adding your voice to this conversation.

V. HOW HR CAN HELP

But there’s another way you can help.

Don’t just talk about what…the 21st century workplace…should look like.

Lead the way there.

Shape the policies…set the new standards…that will make people and companies winners…in today’s business environment.

You see, there is no more one-size-fits-all approach…to human capital management.

What we need most is flexibility...to think and do things differently than we did…fifty years ago.

We need new ideas for a new workplace.

So those employee benefits packages…and those talent and telework strategies…that our colleagues talked about…in that commercial?

That's far more…than putting policies on paper.

They’re about building…the new employee-employer relationship…that will work in your company…..

That will make people, businesses, societyand even nations stronger.

They’re about making…the 21 st century workplace work.

VI. HR HAS RISEN TO THE CHALLENGE BEFORE

You know, in only a few decades…HR has evolved from a brand new occupation…into a global profession.

Just look around this room.

HR has gone from personnel administration…to human resource management…to people strategy to talent management—and now, is expected to be the leader in business today.

HR was on the frontlines when legislation…on fair labor standards and civil rights…and retirement and leave…changed the face of the workplace.

And we have always been the ones…focused on the greatest resource—the human resource—even as others thought cash or new technology…was all it took to build a great company.

But here’s my point:

Each and every time this profession…has been called upon…to make the workplace work…we have risen to the challenge.

I have no doubt…we will do it again.

As for those voices we heard last year…

questioning whether or not HR…was up to the challenge?

Well one of them recently reported... and I quote—“We believe HR is turning the corner.”

I say, not only have we turned the corner…we’re full speed ahead.

VII. CONCLUSION

HR has already come so far as a profession…and our work is too important to stop…

It is the Decade of Human Capital.

People…business…society need…your human capital expertise…your leadership…to solve some of the toughest challenges they face.

So let’s lead the way on policies…that make sense for today.

Let’s take the relationship…between employers and workers…

to the next level.

Let’s do what only HR can do.

Let’s make the 21st century workplace work.

Thank you, and have a great conference!###