Human Resource Planning

We occupy space, or used to,  in a building that we own.  Last week, we found ourselves with the realization that to provide exceptional customer service to our building tenant, we have three days to move our operations so they could take over the floor of the building we occupy!!  No easy task!

Thoughts run rampant in our minds: moving phones, furniture, artwork, paperwork, file contents and where do we find a mover on such short notice.  Where do we locate space to store our "stuff", where do we move our staff??

Now, talk about personnel management, job performance, HR management and Human Resource Planning!!  This was the maximum test of our patience, resourcefulness and skills.  Definitely a team effort in every sense of the word.  And this team reached the finish line with flying colors!

When you are building a team;  before you hire, consider the use of Career Personality Tests or other Employee Assessments so that you know the candidate has Job Fit.   It will be worth all the time and energy.  We do and it continues to pay dividends.

Talent acquisition is changing.  A recent survey reveals that 43% of the companies polled are pulling their spending from Internet job boards and re-directing those resources to better showcase their brand to potential employment candidates. The shift away from job boards is a response to current market conditions, which have made more high-value candidates available to companies looking to capitalize on the market's turnaround with strategic hires. 

There is hope.  While the current business environment remains grim, optimism still dictates many of the respondents' near term hiring plans, with more than 30% planning to increase hiring during the second and third quarter of 2009: adding the fourth quarter raises that number to 41%.

Referrals are still the most popular avenue for sourcing jobs, but the companies polled indicate their Web site or career page as being the next most valuable vehicle for finding candidates. Job boards, while useful for generating a higher volume of resumes, are being criticized for not delivering qualified candidates, which are seen as the key for surviving the tough current economic climate and building future organizational strength.

There is another factor.  In the effort to build a Lean HR hiring process, I have been simplifying the hiring process and getting better results.  This is partially driven by creating new channels for sourcing by using RSS feeds and opt-in email channels, and ties to social networking.  These new channels - especially the RSS one - has big implications for the future.

If you can post for free on a RSS-enabled job board and get good results, why spend big dollars on a formal site that is focused on value?

Question - who has abandoned the big job boards, and why?

For extra credit, how have you tied your applicant tracking system to the new sources?

I am the crash test dummy of applicant tracking systems.  Before I talk with an organization about the quality of their new hires or their screening and assessment systems I check out their web site.  I read their mission statement.  I try to get a feel for what an applicant sees and feels from the most important chair - the applicant's seat.

Most of the systems may be efficient for the organization, but few systems do two very important things.  They seldom project the values and attitudes of the organization, and the almost never ask me anything beyond what a basic resume has on it.  In fact, most allow me to simple paste my resume into a box and move on.

Sadly, all of the technology and effort is used to speed up a flawed process, rather than using the opportunity to change the rules and get a better answer.

If you could change the outcome to your current application system, what would you want as a better result?  Better job fit?  Faster time to good job performance?  A lean HR process?  EEO reporting with a single click?

New data and projections are in from all points - we're looking at a year at least of bumpy roads and grumpy people and the new reality is firmly here.  Widespread layoffs will include a continuation of reductions in our staffs - by that I mean HR - at the same time that needs and issues are climbing.  With stressed employees come higher employee relations demands, heavier use of EAP services, and (probably) higher medical utilization.  In all of this, we've got to stay productive.

There is no graceful way to automate the face to face part of HR.  We've got to be able to make more time to BE THERE for our people.  We can either stop doing background things (not likely) or better use technology to do the background work.

If you have technology that you have not implemented fully (and you probably do) now is the time.  If you have "grandfathered" processes, retire them.  Simpler is better.

Simply put, now is the time for LEAN Human Resources.  Now is the time for assessments as a tool for productivity and management development.  Now is the time for human resource planning to guide the future.

Now is the time.  What will you do to get ahead of the curve? 

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I knew she was going to make the top 5.  I just knew it.  The selection of a Hoosier as Miss America came a surprise to many, but I was an early predictor.  With all of the work I do in assessments and applicant tracking, I have a more than passing acquaintance with how to pick a winner.

The importance is gaining family bragging rights.  I have a daughter and sister-in-law that are big into watching the pageants and guessing the outcomes, and I have gained quite a bit of street credibility in the family by doing very well at their game.  The rules are simple - at the start of the telecast, all contestants make a brief statement and wave.  At the end of this, each family member text messages the others their top choices, and these are compared to the top 5 and, of course, the winner.  No formal scoring is done, but bragging rights are big around here.

So I take this seriously, and use my Human Resources and Selection skills for an important purpose.  Since I can't use recruiting software and get each applicant to fill out assessments, I work with what I have.  I pay attention to the last few winners, and project from that what the "job fit" issues are.  What is important?  Athleticism?  Volunteerism? Diversity?  I listen to the interviews and promotions leading up to the event, and try to figure out the "job fit" model that the judges will be working toward.

The big clue was a news story on how the contestants were a more toned and athletic group than previous years.  I saw this as a message that the swimsuit portion of the contest would have more importance than the evening gown or the talent portions.  I then noted in a press release that the winner of the preliminary swimsuit competition, announced a week early, was Miss Indiana.  Hmmm.

So we popped a bowl of popcorn, and I entered my choices early - Indiana, Hawaii and Tennessee.  While I was lukewarm about her chances after the evening gown moment (Looked like a tablecloth to me) and the talent portion (OK but classical music is often lost on younger judges) I was proud of the selection.   Happy that Indiana finally got out of the "never won" column, and even happier that my ability to predict job fit has a payoff in bragging rights within my family.

The pageant has updated the selection process to include 10 choices from viewers, with an on line survey.  I propose that next year they have all contestants fill out a thorough application form using applicant tracking software, and have the results on-line for all to see.  Then I can really make some predictions based on solid data.  In HR, that's what we need these days...

Definition of Core Values: Operating philosophies or principles that guide an organization's internal conduct as well as its relationship with the external world.

You think you are too young or too small to need and establish core values?  Think again!  Bring your core values to life. This is a valuable process needed for your company's strong cultural foundation.  Strong culture leads to superior performance, higher employee retention and a better aligned organization.

A strong organization driven by core values sets a benchmark to lead people, gives a foundation to make tough decisions, and will bring simplicity and clarity to the "people" side of the company.

There is nothing magical about these concepts.  You know that your company's core values are taking hold when you hear your employees restating and using them in their daily interactions. 

It is the discipline of execution that distinguishes great companies. This is about building an organization that has purpose, focus and alignment, that lives its values every day and that creates an environment that allows employees to grow and to produce superior results.

This core ideology - our vision, purpose and values - is the heart and soul of ExactHire. We believe that adhering to this core ideology will help us become a strong, sustainable organization - a leader in an evolving business world.

Your core values will be used in talent acquisition, performance management, employee assessments, interviewing, orientations and human resource planning.

Keep in mind:  The key is not what core values an organization has, but that is has core values at all!

Well, the whole issue of the different generations has just shifted.  As I have presented over the last 5 years, I have predicted that all of the boomers would retire within months of each other when the stock market climbed above some arbitrary point - my guess was 13,500 on the Dow. 

Well, with the economic meltdown, all bets are off.  Talking with several senior HR people today (all of whom were boomers) they both report that retirements are certainly off for their "on the cusp" employees, who have watched their 401k plans divide by half.  That means that all of the generational issues we have been watching are suddenly becoming bigger, with cranky boomers who wanted to retire rubbing up against Gen X'ers who are hoping that the boomer's retirement would create some promotion and growth opportunities.  Space to grow?  Not so much.

In all of this, HR is an important tool.  If you can, build HR Services that use assessments and career personality tests to predict job fit and succession planning.  Recognize that the generations see the economic meltdown differently, as seen in this news story.

We've all got to get along, and good talent management will go a long way...

Culture is more than the behavior of the individual. It depends on the interaction of people - in pairs, small groups and through the entire organization. 

Talent management is a two-way street. A savvy organization wants to identify and keep the people who will be high performers and make a difference.  High performing employees work for the challenge, the personal development, and the “stretch assignment”.  Both parties can win at this game...

...or lose.  What would it be like if employees told the truth?  Click here for a very cynical (if funny) scene from Office Space.

Employees who are more engaged are less likely to leave when things get tough. Their persistence translates into positive effects on the bottom line. Today’s workforce, particularly high performers, want their work to resonate with their core self, their reason for being.  Imagine the increased contribution from a passionate staff whose roles are aligned to their core interests and capabilities, engaged to contribute their full measure.  It forms the infrastructure of the organization’s culture. Its strength is the organization’s strength. 

This - the impact of passionate people doing good work - is the reason I'm so passionate about increasing the standards in hiring, in using applicant tracking and assessment software, and in implementing good talent management tactics. Care to join?

As I listen to the automated voice outlining my customer service options (I think she was on number 8, so I had plenty of time to contemplate), I ponder business articles I’ve studied with advice on customer service being the key to distinguish your business as one of the best.  Success = Profit.  Okay, then why do we so often find ourselves trapped on the phone with a telephone tree more often than not?

 

If you would ask these companies why they do customer service this way, they would probably tell you the reason is cost savings.  But, how do they assess the losses from customers leaving their company and going to a competitor because of the personal one-on-one service they get from the competitor?

 

Consider this—if your customer is welcomed and supported by an engaged, committed customer service representative who makes that customer feel a part of the “family,” it just makes sense that a new customer becomes a loyal customer.   
 

Now, you know a  great customer service representative when they serve you.  BUT, how do we define those successful traits and bring them through the hiring process for a perfect job fit?  Good news!  Through preemployment testing, applicant management, human resource planning, successful talent acquisition can be achieved through thought-provoking pre-interview questions created through Pre Employment testing.  Thus, change the nature of your hiring process!  How do you do this?  ExactHire can teach you how to do this.   Now that’s cost savings! 

My final employee engagement recommendations revolve around creating employee satisfaction, by creating a future and perfect job fit.  Human resource planning should include the following steps.

FIFTH: Make your on-boarding process of new employees unique. Your goal should be to have the employee go home at the end of the first day and tell those closest to them that their first day with your company was the best first day they ever had. There are many ways to make your employee engagement special.

SIXTH: Develop a mentoring process in your company to make sure your new employee is immersed into your company as efficiently as possible. This is especially important when you consider the generational diversity we are all facing in the workplace and the timeline that younger employees use to judge whether they have made the right decision.

SEVENTH: Communicate the career path options that employees have and be clear as to the expectations you have for them to be considered for these other assignments.

EIGHTH: Talent management also involves employees in decision making and open communication with them. The more knowledge they have, the more they can offer your company. The more they feel part of the company and the process the better the results they’ll produce.

LAST: Warehouse the candidate data and new employee information you have obtained in a secure website. This allows you to develop analytics, feedback loops and meaningful metrics. Then evaluate your processes for higher performance payback. This will help as you search for new candidates as well as manage those you have hired. This information can also be used to show candidates that you understand how to manage the human capital component of your business.

I do not have to tell you that the competition for top talent is getting more intense. Furthermore, we all are noticing that the younger generations entering the workforce are not as patient as the baby boomers that are retiring. As business owners, we do not have as long to "get it right". The generation X and Y employees are quicker to judge and to correct a decision they feel is not a good fit for them.

By implementing these processes, you can leapfrog your company right over best practices to NEXT PRACTICES. You will improve how your organization manages talent acquisition and develops human capital; the capital that delivers the world class customer service that truly differentiates your company from the rest.

Because as I always say "it's all about people"!!

As business owners, we ALL worry about having enough capital to run our businesses. Most of us immediately think of financial capital. Without cash, we are out of business. However, I suggest that the most important capital we contend with is the human capital of business!

Why “Human Capital”? 
It is clearly the most complicated component is talent acquisition and talent management. In fact, once our companies grow and we solve the cash situation, the people factor remains. Furthermore, it’s the human capital part of our businesses which interacts with our customers on a daily basis. What is more important than that?!
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Jim Collins in his book “Good To Great” stated companies having the best culture and most engaged employees have the highest market value.  These two factors almost always result in higher profits and fewer headaches in running our businesses.

I have always believed the following when it comes to running companies:

If I want HIGHER SALES and PROFITS, what will differentiate my company from my competitors will be:

• UNFORGETTABLE CUSTOMER SERVICE: the type that customers talk about and benchmark their other vendors against!

o This type of service is delivered by…ENGAGED EMPLOYEES who deliver SUPERIOR JOB PERFORMANCE.   

o Remember that how you treat employees is how they will treat your customers. It is a simple rule that works.  

o Therefore, you need to make sure employees FIT THE JOB and the CULTURE of your company.  Most of us do not spend enough time in this area.   This should happen during the hiring cycle.

Next week, I’m going to talk to you about the hiring cycle and what is involved in human resource planning so………..stay tuned!

So there I was, watching the presidential debate and munching popcorn and it struck me - this election is nothing but a very public (and drawn out) old-fashioned hiring process.  We're forcing candidates through a stressful obstacle course, examining their values, asking behavioral questions, and making a group decision on the management team for the next four years.

Clearly, the process could use some help.  How about applying some "next step" Human Resource Planning and Talent Acquisition and Lean HR ideas....

We could get better results if..

- We could use valid pre-hire assessment tools to match the candidates to a benchmark of the ideal president.  Build the benchmark by going through past living Presidents and testing them (only the high performers, of course) and adding benchmark data from business and military leaders that would make a powerful standard for employment.  Colin Powell.  Herb Kelleher of Southwest.  Gordon Bethune of Continental.  Use the Profile XT - it has a distortion score so we can tell if they're being candid.  Perhaps that would eliminate most of the candidates right there...

- Develop a standard application form that asks the questions that make a real difference up front, and have the candidates fill it out when they file their candidacy.  Make them available online or email a copy to every citizen, and we could do an apples-to-apples comparison.  Make the questions required.

My proposed questions -

What is the best job you ever had?  Why?
What makes a great leader?  What prevents you from achieving that standard?
How do you handle stress?

And, of course,

If elected, what can we do to help the Chicago Cubs win a World Series?

Okay, maybe a more reasonable question would be about peace in our time.

Your thoughts?  What would your questions be on a Presidential application form?

Any port in a storm.  This economy is a "perfect storm" that will drive the future of hiring, and I'm focused on finding the best tools, from pre employment testing to EEO Reporting.  The arms race is back on, and we'll be reporting from the battleground for you.

The economy is affecting hiring in surprising ways. At a time where the volume of hiring is slowing, each hire becomes more crucial.  Before the downturn, there was a problem with people not telling the truth in the hiring process. Now, it gets worse.

As unemployment numbers start heading up, the pressure on screening and hiring systems increases.  Advanced applicant tracking and assessment tools that apply "LEAN HR" are part of the modern Human Resources software suite.  These tools are the first line of defense for an organization trying to maintain their "employer of choice" status.  Good human resource planning requires good support tools.

Admit it - the arms race of the hiring process had kind of slowed down.  Now, the race is speeding up again because of the combined forces of a slowing economy pushing unemployment up and organizations properly focused on building a high performing work force. 

Organizations must use proper talent aquisition to produce job fit, employee engagement, and great job performance.  At the same time, they must use whatever advanced tools they can find to keep applicants out of the process that are not sharing their true values and attitudes, and are simply trying to get inside an organization - any organization - and are willing to say whatever it takes to get there.

So, the arms race is on.  Let's keep a step ahead....I'm looking for links to good blogs and sites that might help - share them if you have them!

Things to do that will help with survival in these times -

Develop, Develop, Develop - Catch up on technical and soft-skills training. Don't miss opportunities to build employee competencies. Pay particular attention to your cross training and coaching efforts.   Now is exactly the time to build bench strength.

Maintain, Maintain, Maintain – This is a great time to do preventative maintenance in all of your systems – both physical and virtual.

Retain, Retain, Retain - This mantra remains vital for ongoing success. Use creative redeployment, job sharing, contract and gain sharing techniques coupled with developmental strategies to retain talent for the upturn. A key ingredient is a detailed and well communicated plan for keeping and developing your talent.

What are YOU doing?

On the theme of strange times, continued from the last post...

Then, there are the people you already have...

You may have noticed some disquieting trends in your organization at the end of summer of 2008 – absentee numbers that are higher that you prefer, low productivity numbers, the occasional loss of key employees, and the difficulty of hiring good people.  They are all connected – and most businesses are feeling the same pinch.

Don’t get caught in the trap of focusing just on hiring new employees and bailing out the leaking ship.  You have probably noticed that your top performers – the 16% that are stars – produce 80% of the bottom line results.  The remaining 20% of good results come from the 68% of employees that are average performers.

Do the math – that’s 100%.  Let’s also agree that about 16% of employees hide under rocks, hoping that you won’t notice that they haven’t produced anything useful, ever.  Continue to ignore them for a moment - today, we’re talking about the high performers.

My point is simple - retaining all employees at any cost should no longer be your goal.  Focus your retention effort on those few people that are producing 80% of your results.  Do whatever you can do to keep your best on board.  I am not recommending that you ignore the rest – just focus your efforts in the short term on a very important part of your staff. 

I'll wager that if you were to shadow a manager for a day, most of their time would be spent on the lower performing people, leaving the high performers to self-manage.  Not a good strategy...the high performers feel under-loved and will, over time, either become average performers or, worse yet, leave.

Even if you have a good human resource management system, practice good lean hr, and read all of the talent management books you can find, you will still be at risk for the departure of your high performers. 

Action point - sit down with your supervisors and make the above point with them...and get them to spend more of their time with the ones they want to keep.