why ceos are turning to hr to lead the organization through
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Today’s Top 5 Threats. Why CEOs are turning to HR to Lead the Organization Through. Jack Smalley, SPHR. Express Employment Professionals [email protected]. June 24, 2014. Old Economy Stable Large company kept competitors at bay New Economy is Competition - PowerPoint PPT PresentationTRANSCRIPT
Why CEOs are turning to HR to Lead the Organization Through
Today’s Top 5
ThreatsJack Smalley, SPHRExpress Employment Professionals
June 24, 2014
Old Economy Stable– Large company kept competitors at
bay
New Economy is Competition– Ability to anticipate, respond and
adapt to threats– Eliminate bureaucratic structures– Prepare for organizational change in a
minute’s notice– Or become EXTINCT!– Old business model vs. progressive
business model
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
The #1 Movie of 1967Live in a Different World
– 75% of U.S. lives online - autos/farmers
– From industrial revolution to data knowledge revolution
– From social media to twitter to selfies
– Tom Friedman-”The New Average”
There is a big shift to a Digital Economy
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
“The topple rate” at which companies lose their leadership positions has more
than doubled.
From: “The BIG eats the Small”To: “The Fast Eats the Slow”
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Getting suppliers to move fast
Source: Jason Jennings and Laurence Haughton, “It’s Not the Big that Eats the Small … It’s the Fast that Eats the Slow”
SustainingSpeed
FastThinking
FastDecision-
Making
Fast toMarket
Letting the best idea win
Forecasting & road mapping
Establishing guiding principles
Constantly reassessing
Owning competitive advantage
Institutionalizing innovation
Financial flexibility
Adaptability
Business process management system
Engine of Innovation
Microsoft executives were asked how they would break down the
$450 billion market capitalization value of
their company.
“The stuff in people’s heads.”
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Threat 1:
Inability to Innovate
• If you do not have the best talent, you will not survive today.
• HR must lead the organization to attract and retain the best talent.
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Where’s your weakest link?
80%
of surveyed respondents who are currently employed
“would consider leaving their current job if presented with other opportunities.”
40% will succeed
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Cyber ProwlersNot only is your competition
watching your corporate actions on social networks,
they are stalking your talent.
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Cyber ProwlersOf the 2,600 North American hiring managers surveyed, 45% use social-networking sites to research job candidates . Not a war for people/war for talent 12/10 more quit vs. “rif’d”
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Beware of Hiring in Haste
31%
only of average firms feel they selected their best pick.
Look before you leap.
46% of resumes are falsified
• Halo Effect• One candidate – multiple
resumes• Was it a great hire or a
polished applicant? • To easy to focus on wrong
thing• Arrow vs. Indian
Don’t be distracted by the school colors. Schools attended are not a guarantee. “It’s not the degree, it’s what you can do with it”-T. Friedman
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Threat 2:Losing Your Competitive Advantage
HR must lead to increase employee engagement.
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Do you have an army of sleepwalkers?
The Opposite of Employee Engagement
Employees who don’t leave – the under-performing and disengaged
The “quit-and- stay” phenomenonThere are 9-to-5er’s who show up to work everyday but who have “checked out” mentally.
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
$300 billionEmployee disengagement costs businesses in lost productivity every year.
Are your profits melting away, employee after employee?
Over 13 million employees & over 32,000 business units surveyed show of employees in most companies are not engaged in their work.
Customer retention vs. employee retention
67%
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Many companies underestimate the importance of their front line.
60% Approximately 50%
of the workforceare non-exempt.
leave before they have been on
Engaged plan to stay for what they GIVE!Disengaged stay for what they GET…
the job for six months. Script the first 90 days.
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Threat 3:High Costs of
Reckless Hiring
HR must allow supervisors to participate in the hiring process
then hold them accountable for retention.
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
• Managers are not experts in hiring
– It is not essential to the job function– Halo vs. Devil effect
• Biggest failure– Lack of preparation– Experience over “fit”
80% of turnover cost is related to bad hiring.
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Ask yourself:How much can we afford to lose?Most conservative estimates of turnover show costs anywhere from 50% to 150% times annual salary.
For a professional making $50,000
How many $75,000mistakes can you afford?
Departure Costs• 85% of salary not
uncommon
Hiring Costs• 7-20% of salary
New Hire Training Costs • 13% of salary
New Hire Productivity• 32% base salary
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Beware of turnover fever
• It leads to job sniffing• To close the back door
Why am I staying?I’m leaving!
Maybe I should start looking…
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Threat 4:Poor Leadership & Communication
HR’s greatest contribution to organizational
success-”Leadership thru Influence”
-Betty Francis, SHRM Board Chair
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
The organizations that exit the recession early and stronger.
To the employee, the Leader is the company
The messenger is as important as the message. Influence is earned.
Relationships –Trust-Information-Success
Pre-recession ~ Employers not loyal
Post-recession ~ Employees not loyal
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
What’s on your dashboard?
“I quit!”One in two employees is looking to leave or has checked out on the job.
Worker satisfaction is at its lowest level since the Conference Board began measuring it in 1987.
Only 45% satisfied Two-thirds
of companies are more concerned about retention now than they were before the economic crisis.
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Toxic Work EnvironmentJust because you have talent in your field doesn’t mean you’re a great leader.
Do you know what it’s like to work for you?
1.Do you know how to push without being rude or obnoxious?
2.After someone talks to you, do they feel like they have more or less energy?
3.Do employees feel like you have their backs?
Ask yourself these three questions:
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Leadership is the #1 reason talent leaves
Managers and Leaders influence each…
32% Need for
advancement
22% Pay and Benefits
20% Lack of job fit
17% Mis-
management
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Continuous Learning Is Crucial to Maintaining and Managing Talent
….according to Jim Collins
The mismanagement of human resources is one of the main reasons many “Good” companies never become “Great.”
of organizations surveyed feel
their executives have a gap of leadership level
skills.
50% from the samesurveyed
organizations feel the skills of their current workforce
do not match today’s market challenges.
51%
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Remember!
Employees don’t quit companies,
They quit bosses!
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Threat 5:Regulatory Nightmares
HR must lead through the regulating minefield
This country has come to feel the same when Congress is in session as when the baby gets hold of a hammer.”
~ Will Rogers
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Top Business Risk
The total cost of federal regulations to employers has increased over $1.75 trillion.
Growth of economy is small businesses– Fear of growing
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Regulatory NightmaresDocumentGettysburg AddressDeclaration of Independence U.S. Government Regulations on The Sale of Cabbage
H.R. 3962 – The Affordable Healthcare for America Act (AHCAA)
Written by Lawyers
Words286
1,33226,911
363,086
1,990 pages
What’s keeping HR up at night?
Federal, state, and local restrictions
Background checks Hiring, firing,
and employment regulations NLRB’s self-imposed muscle Social media protections Healthcare Reform Legalization and medical use of
marijuana Class Actions
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Department of Labor (DOL) 2013
– 25,628 charges– $250M in back wages– 269,000 employees receiving
back wages– 91% class action lawsuits
involve wage/hour claims
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Department of Labor (DOL) cont.
– Website instructs on filing claims
– iPhone app tracking hours worked
– Going after misclassified exempts
– Volunteer work– Independent contractors
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
EEOCDiscrimination and retaliation cases at highest level since Title VII became law in 1965– 93,727 charges– Less employees– Retaliation charges new #1– $372.1M paid by employers– Record number of million dollar
settlements
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Light at the End
of the Tunnel?
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Why are the Best CEO's turning to HR to solve the Top 5 Threats?
Why the Best CEOs are Turning to HR to Lead the Organization Through Today's Top 5 Threats
Jack F. Smalley, SPHRDirector, HR Learning and Development