NOT YOUR DAD'S HR -
STRATEGY FOR THE NEW SCHOOL

By Melissa McDaniel - Tandem Partners

Key factors which will impact the human element of business plans in the next decade.

An effective Human Resources Strategy can transform an organization’s direction. Blending business sense with an understanding of organizational structure, performance management and employee retention methods will outclass and outpace the competition every time. Recent studies bear witness to what HR professionals have always understood: businesses that align HR strategies with organizational goals lead with an edge. Welcome to the new school. We’ve saved you a seat.

There are some significant factors which will impact how organizations manage the human element of their business plan in the next decade.

· The Long Goodbye: For the first time in U.S. history, the largest demographic of the population will begin to exit the workforce and move into retirement.    

· Embracing Tech: Advances in technology have changed the work environment from a 9 to 5 work day to a 24/7 marathon. Competitive organizations will adopt new technology and hire tech savvy employees to run it.     

· Learn or Lose: North America has shifted from manufacturing giant to service industry leader. Businesses must “work smarter, not harder.” Say hello to organizational learning and training as standard operating procedure. 

· Emotional I.Q. Muscle: The cost of replacing a current employee is averaging between one and three times that person’s annual salary. The number one reason employees leave organizations is a supervisory relationship. Companies that invest in management skills training have better bottom line figures.

· It IS the Money: As competition for talent increases, organizations should take a close look at market compensation data to ensure they’re playing ball in the real world.

· They Want Choices: Providing benefits that attract workers, reflect current lifestyles and still contain overhead costs requires a balancing act the previous generation never imagined. Choice and flexibility need to be woven into your employee benefits structure.

While there are significant factors that will impact how businesses manage human capital, a Human Resources Strategy can be broken down into manageable components.

1.  Analyze your organization’s structure. Study your company’s organizational chart with a critical eye. Is every position filled by an employee who does that job well?

2.  Develop a succession plan. You need a plan which addresses how key positions will be filled if employees leave. Not attending to this strategy is like driving a car without insurance.

3.  Make each hire a strategic fit for your business.  Before you go to market to fill a position, take time to evaluate the position and identify a list of “core competencies.” Invest the time required to locate the individual best suited for the job.

4.  Reward learning. Create a culture that rewards learning new skills. Your company will gain the reputation of being committed to employee development while benefiting from the intellectual capital.

5.  School your managers. Managers are now expected to coach, motivate and develop employees. How many of your managers would you describe as gifted in interpersonal relationships? Develop a policy for management training.

6.  Adopt a performance management system. A performance management system is an investment in the future of your company. All employees should be aware of the expectations that define and measure their performance.

7.  Influence high achievers with merit/performance based pay. If you are fortunate enough to have some superstars working for you, keep their loyalty and enthusiasm fresh with a performance based pay system. (Your competition is as interested in the best and brightest as you are.)

8.  Build a work environment that supports employees. Progressive employers now offer flexible work start/end times, compressed work weeks, telecommuting, personal days to attend to child or elder care responsibilities, and cafeteria style benefits that match individual needs – all common features in an employee retention culture.

Begin to align your HR strategies with your long-term organizational goals. The new school is here. Businesses that embrace the new curriculum will stay at the head of the class.  

ABOUT THE AUTHOR

Melissa J. McDaniel is Director of Human Resources Consulting for Tandem Partners. Melissa works with both for-profit and not-for-profit organizations on issues related to workforce strategy, recruiting and retention, employee development, performance management and human resources compliance.

Melissa is a certified Professional in Human Resources and has attained HR Generalist certification from the Society for Human Resource Management. She also is a Qualified Practitioner of the Myers-Briggs Type Indicator. In addition to her experience in the human resources field, Melissa has an extensive background in operations management and administrative systems design. She is a national member of the Society for Human Resource Management (SHRM) and the Frederick County, Maryland Chapter of SHRM.  She can be reached at 301-662-2400 or via email: melissa@tandem-partners.com.

Tandem Partners is an organizational consulting firm specializing in people strategies that drive business results.

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