August Uncertainty

Hello again to all my blog readers! The warm August winds are sweeping past us, children are donning their newest back-to-school gear, and employees everywhere are wrapping up last-minute summer vacations, as Labor Day weekend will signal the close of summer. Heading into fall, we have plenty of things to keep us on our toes; political uncertainty / upcoming elections (watch for an upcoming blog post on politics in the workplace!), international economic uncertainty, stalling US job growth, and the lack of qualified talent for available jobs (i.e. “US Talent Crisis”). 

According to the most recent PriceWaterhouseCooper’s (PwC) “U.S. Private Company Trendsetter Barometer”, half of leading private companies were optimistic about the U.S. economy, but nearly the same percentage remained uncertain, citing the painfully slow U.S. economic recovery and the continued fluctuation in the Eurozone. This up-and-down movement in “Trendsetter” confidence has been a consistent pattern over the past several years and signals a prevailing sense of uncertainty, leading to talent and strategic operating decisions that have a trickle-down effect on the entire working population. Other statistics from “Trendsetter” to take note of: 86% expect positive revenue growth over the next year, though they plan a slight scaling back in spending; only 54% of Trendsetter companies looking to add new employees; and 68% of companies cite potential lack of demand as their major growth barrier, while 48% are also concerned about legislative/regulatory pressures (leading us squarely back to political uncertainty and the upcoming elections).

So, where does that leave us? Enter in Creative Talent Management. Not to say that you haven’t been utilizing these tools all along, but with the vast majority of surveys out there¹ currently putting us at a national unemployment rate of 8% by the end of 2012, down only by .2% from this summer, so it’s good to refresh the memory. Best practices in creative staffing management range so vastly by market that oftentimes we dismiss trends as something that would be inapplicable to our industry just because it’s being used elsewhere (i.e. a trend in the IT world does not always translate to a successful implementation in a traditional manufacturing facility); however, I challenge you to become more open- minded when thinking through your options. Ask how something could be modified to work for your workforce, rather than dismiss it, and possibly create something new and great in the process. You will also find that no matter how great the solution, it more often-than-not becomes not about the solution itself, but how it is received; therefore, think about how you will spin this idea to employees, and you may even be able to add a ‘perk’ to your list of benefits!

Flexible work arrangements are by far the most popular staffing management tool. Any number of things can fall into this category, but start with thinking about your employee base; can you offer anyone a job-share program? Do you have office staff who would relish the idea of a four day workweek (often times, in the summer, referred to as “summer hours”, “summer schedule”, etc.)? Could you create more flexibility within specific departments that may be experiencing a slow period, offering free half days or leave early for employees in those departments? For employers in educational fields or healthcare, oftentimes you can open up time to employees to take a hiatus to do research, pro-bono work, etc. Also make sure to take a hard look at telecommuting, which is often overlooked, for those employees who need little interaction to complete their work. Whatever the option that you look at, just remember to tout the benefits of the added flexibility you are offering; studies show that as much as 81 percent of the U.S. workforce might be looking for other opportunities, thus the engagement and retention of your top talent is at risk, which directly impacts the success and sustainability of your organization. Flexibility is one of the best tools you can use to retain and attract top talent (especially with the Millennial/Gen Y generation), and close the skills gap.

Temporary employees, independent contractors, consultants, Co-Ops, and more are another realm of creative staffing that every HR leader should utilize as much as possible when economic signals create uncertainty. Typically the benefits in hiring through these means outweigh the perceived drawbacks, specifically cost and quality of hire. For temporary employees, make sure to develop a close relationship of mutual trust with your staffing agencies in order to get the best candidates, customer service, and pricing.

Layoffs, voluntary or involuntary, should typically be a last resort, unless you are using a voluntary layoff in lieu of a flexible work arrangement. However, even then, the word “layoff” evokes fear and anxiety in employees – whether they are affected or not. Other companies, who would otherwise be faced with a layoff situation, strategically utilize “shut downs” or market the move as something different. Another useful tool to utilize when faced with a layoff situation is performance management. Making sure to retain your top talent and reduce your bottom 5% through these metrics is oftentimes an easier outlet if trimming needs to take place.

As always, hiring while implementing these practices can create an added layer of confusion, both for current employees and for those being brought on-board. Best to keep communications open, and if you can, pull from within before hiring externally, or pull from an existing temp pool. According to recent employers surveys, most employers plan to add strategic positions, but hold steady otherwise, leading to continue the tread of low-job growth that began back in June.  

Until next time, Be Inspirational!

1.     At its June 2012 meeting, the Federal Reserve Board of Governors forecasted the nation’s unemployment rate to range from 7.8 percent to 8.4 percent at the end of 2012. The National Association of Business Economics 2012 outlook survey said they expect unemployment to fall to 8 percent sometime in the fourth quarter of 2012.

♫ Schools out for the Summer ♫

The days are getting longer, the breeze is getting warmer, and the everywhere you turn there are graduation caps flying through the air. It’s hard not to smile at the ambitious, enthusiastic, I-can-now-take-on-the-world look of the shiny new graduates with those precious pieces of paper clutched in their hands. For those graduating high school, the recession has severely shaped their frame of mind and ambitions – with nearly 69% of graduates planning to attend college (60% at four-year universities, 9% at community colleges or technical programs)¹, with financial security in mind. Meanwhile, the National Center for Education Statistics (NCES) projects 1,781,000 students at the bachelor's degree level will graduate as the college Class of 2012. The NCES national employer survey results indicated that employers will be looking to hire about 19.7% of this year’s grads, with the median salary currently at $42,569.

For those employers looking ahead at the impending talent crisis, a great option, if available, is to set up a job shadowing program with local high schools, technical schools, and maybe even four-year colleges. Not only is this a great way to introduce yourself as an employer, but it will help to guide future employees into fields that they had maybe never considered, and provide a realistic job preview, versus what they may envision due to media, school, and other sources. Creating a robust internship is also crucial - read last month's post (http://inspirationalhumanresources.blogspot.com/2012/05/very-very-intern-esting.html) for more on that!

For those employees who currently work while going to school, graduation can take on a whole new meaning; new job potential in terms of growth, meeting employer expectations for your current role, or perhaps a pay increase for your new skillset. HR departments will need to set this expectation early on with employees and remain consistent; typically policies that reward employees for improving their education with additional pay and job responsibilities see less turnover and increased company loyalty, however, whether or not your organization paid for the additional education, you should only reward employees in this manner for schooling related to their current/future roles, or potential roles within your company. For those that make it a habit to not do anything for employees upon graduation, don't be surprised when your newly minted graduates leave at their first opportunity. If you do pay for tuition, and don't plan to reward the employee upon graduation, make sure you have a clause in your policy for payback or that they must work for you for a certain period of time (but that the policy does not change the employee-at-will relationship!).

For those companies’ looking to attract this year’s grads, a new Towers Watson survey that was just published shows that the most important job factors for attracting younger employees is as follows:

1.) Job security  

2.) Base Pay  

3.) Health Care Benefits  

4.) Vacation / PTO

5.) Reputable Workplace  

6.) Commute   

7.) Career Development  

8.) Retirement Benefits.

Why is this earthshattering you say? Not only is “Base Pay” not first on their minds (which wouldn’t be a first, but is still uncommon) but “Job Security” is first – something clearly affected by the recession. Also, it’s the first time we’ve ever seen “Retirement Benefits” enter into the top ten. This is a clear indicator for employers to review the way they position their offers to new grads, and need to start ‘selling’ what they offer in terms of security and retirement as part of the whole package – usually something that is either glossed over or unaddressed entirely.

On a completely different note, for those employees who are parents of the new grad, this will also come as a busy, albeit stressful time of year. Tuition payments are at an all-time high, with public universities seeing increases around 110% since 2000. A great out-of-the-box benefit that many companies (that can afford to do so) do is to set up a scholarship fund for employee’s family members. Another option is to set up an internship program or summer work program for employee family members who are currently in school, which will not only help teach them job skills and responsibility, but also off set some of the schooling costs.When deployed correctly, these types of solutions can greatly affect the loyalty and moral of your workforce.

Until next time, be inspirational!

1    United States Bureau of Labor Statistics 2011 report

Very very INTERN-esting...

Conceptually, the idea of internships, co-ops, or student workers isn’t a new or radically improved idea. So why are we talking about it this month? Because it’s not something that many companies do very well. And when there is potential for substantial ROI with a program that requires very little extra resources, it makes one stop and wonder why more isn’t being invested into these programs. Internships and programs like them, starting at the recruitment phase, is basically marketing your company to the next generation of employees. Even if you don’t hire them, getting your name out there as a potential employer is important, as the high-potential students, who then later become your high-potential employees, will remember you with a favorable association.

If you do have the opportunity to take these young, blossoming employees-to-be under your wing, the situation can get even better, or can get substantially worse. If, let’s say, you hire a group of interns, talk to them during their orientation on their first day, then drop them off at their communal office and never see them until their last day – perhaps wave at them every once and awhile and say “Hi” at the company picnic – you have no idea what their impressions are of your company. You don’t know if their being given all the information that is necessary for them to succeed, you don’t know if they even want to consider you as a potential employer, and with one swipe of a forefinger, they're letting everyone in their social network know not to come work for you. And yes, the economy is down right now, but if you’re in a similar situation to over half of the nations’ employers, where you see many of your management retiring in the next ten years, you will want these young, talented individuals.

However, if you hire that same group of interns, orient them and create a specific, structured onboarding program for them wherein they are introduced to not only their department, but all the departments, through various measures such as lunch and learns, group meetings with key leaders, presentations at the end on their key projects to a core group of management, etc., you will make them feel integrated, important, and leave them wanting to work for your company – which is something they will feel free to share with their social network as well.

Also important to note that while employing interns, whether paid or unpaid, it is crucial to follow all current legislation surrounding these employment relationships; this will also do substantial harm to the employer brand.

Ideally, this relationship is win-win; students increase their knowledge, skills and abilities (KSAs) and gain real-world experience in their chosen field, and may also have an opportunity to join the company after the internship has concluded, and employers gain inexpensive labor at the cost of training, as well as expanding their “employer brand” into the next generation, while grooming potential employees.

Until next time, be inspirational!