Emerging Trends in Human Resources

Presented by: Keith J. Greene, SPHR Vice President, Member Relations SHRM

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Top 10 Workplace Trends for 2007 According to HR Professionals

10. Vulnerability of technology to attack or disaster 9. Work intensification as employers try to increase productivity with fewer employees 8. Increase in identity theft 7. Rise in number of individuals and families without health insurance 6. New attitudes towards aging and retirement as baby boomers reach retirement age

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2007 SHRM

Top 10 Workplace Trends for 2007 According to HR Professionals

5. Retirement of large numbers of baby boomers (those born between 1945 and 1964) at around the same time 4. Increased demand for work/life balance 3. Threat of increased health care/medical costs on the economic competitiveness of the United States 2. Increased use of outsourcing (offshoring) of jobs to other countries 1. Rising health care costs

SOURCE: SHRM Workplace Forecast

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2007 SHRM

Do you (Baby Boomers) want to work into retirement?

80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No

71% said yes, with many with many looking for part-time jobs or an opportunity to move in and out of the workforce perhaps during a period as long as 10 years. The study, conducted by Harris Interactive, involved online interviews with more than 5,000 adults aged 25 years to 70 years. (5/06)

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2007 SHRM

WHY Do you (Baby Boomers) want to work into retirement?

To remain mentally and physically active I want to try new professions Earning money

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2007 SHRM

How prepared is your company for boomers reaching retirement age?

On track to deal with the retirements 24% In the midst of preparing 27% Just getting started 17% My company hasnt given it much thought 31%

SOURCE: Harris Interactive study involving telephone interviews with executives in more than 1,000 companies (5/06)
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2007 SHRM

Steps in Preparation for Possibility of Worker Shortage Due to Baby Boomer Retirement Providing continuous skills training for incumbent workers (to update workers skills and keep workers ahead of the curve) Researching and potentially modifying pay scales to ensure competitiveness Providing baby boomers information regarding retirement planning considerations Offering flexible benefits packages for employees Increasing recruiting efforts overall

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2007 SHRM

What Do Employers Identify as the Most Important Skills, and What

Do Recent College Graduates Believe Employers Most Value?

Teamwork - Employers 44% - Recent Grads 38% Critical Thinking/Reasoning - Employers 33% - Recent Grads 37% Oral/Written Communications - Employers 30% - Recent Grads 37% Source: Peter D. Hart Research Associates based on surveys of 305 business leaders and 510 recent college graduate (11 12/2006). Respondents were asked to identify the two most important skills.
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2007 SHRM

Is the Pace of Change Speeding Up in Organizations Globally?

80% 70% 60% 50% 40% 30% 20% 10% 0% Yes!

80% of executives (1472 managers and HR experts from around the world) polled in a global survey in December 2006 by the American Management Association said YES!

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2007 SHRM

Did Your Organization Experience Disruptive Change Over the Previous 12 Months?
70% 60% 50% 40% 30% 20% 10% 0% Yes!

70% of executives (1472 managers and HR experts from around the world) polled in a global survey in December 2006 by the American Management Association said YES! Disruptive Change is defined as severe surprises or unanticipated shocks

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2007 SHRM

Top Ten Perceived Threats to Company Success According to the C-Suite

1. 2. 3. Competition Health of the Global Economy Inability to Attract and Retain the Best Talent 4. My Companys Reputation 5. Inability to Develop New Products/Services
SOURCE: Accenture (2006)

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2007 SHRM

Top Ten Perceived Threats to Company Success According to the C-Suite

6. 7. 8. 9. 10. Terrorism Low Employee Morale Compliance with Government Regulations Inability to Focus on Core Competencies Instability of Senior Leadership

SOURCE: Accenture (2006)

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2007 SHRM

The Top Seven People-Related HR Issues According to CEOs

1. 2. 3. 4. 5. Retaining Talent Attracting Talent with Critical Skills Improving Workplace Performance Gaining Control of Health Care Costs Using the Web Effectively for Information/Service Delivery 6. Creating People Measures for a Balanced Scorecard 7. Building New Workforce Skills for the Next Round of Growth SOURCE: Towers Perrin
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2007 SHRM

The Top Three Strategic HR Priorities According to CFOs

1. Securing the Talent the Organization Needs for Future Success 2. Playing the Critical Role of Change Agent 3. Mastering HR Metrics

SOURCE: Mercer HR Consulting

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2007 SHRM

What Are the Top Five Very Important Aspects of Employee Job Satisfaction?
Employee Responses Compensation/Pay (70%) Benefits (66%) Job Security (64%) Flexibility to Balance Work/Life Issues (58%) Feeling Safe in the Work Environment (57%)

SOURCE: 2006 SHRM Job Satisfaction Survey 600 Randomly Selected Employees

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2007 SHRM

Do managers effectively link formal goal-setting to business objectives in the review process?

80% 70% 60% 50% 40% 30% 20% 10% 0%

Employers 74% Top-performing employees 58% Poor-performing employees 38% Source: Watson Wyatt November 2006
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2007 SHRM

How well do you feel your supervisor performs?

74% 72% 70% 68% 66% 64% 62%

Federal employees 66% Private sector employees 74% Source: Office of Personnel Management Summer 2006 220,000 responses!
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2007 SHRM

How satisfied are you with the information you receive from management about your organization?

60% 50% 40% 30% 20% 10% 0%

Federal employees 47% Private sector employees 60% Source: Office of Personnel Management Summer 2006 220,000 responses!
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2007 SHRM

How satisfied are you with the training you receive for your present job?

62% 60% 58% 56% 54% 52% 50%

Federal employees 54% Private sector employees 61% Source: Office of Personnel Management Summer 2006 220,000 responses!
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2007 SHRM

How satisfied are you with your organization?

64% 62% 60% 58% 56% 54% 52%

Federal employees 56% Private sector employees 63% Source: Office of Personnel Management Summer 2006 220,000 responses!
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2007 SHRM

Workers Stay in Jobs They Dislike Just to Have a Job

82% 80% 78% 76% 74% 72% 70% 68% 66% 64% 62% Yes

Employers 69% Employees 81% Source: Randstad August 2006

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2007 SHRM

Do you expect to change jobs soon?

45 40 35 30 25 20 15 10 5 0

Already job hunting 21% Gonna start looking sometime this year 21% Happy where I am 42% Not sure 8% Source: CNNMoney.com poll in January 2007. 11,000 respondents.

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2007 SHRM

Would you rather have an extra weeks vacation or an extra weeks pay?
60 50 40 30 20 10 0 Vacation Pay

Extra weeks vacation 56% Extra weeks pay 41% Source: CNNMoney.com poll in January 2007. 8,167 respondents.
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2007 SHRM

Are Companies Loyal to Their Employees?

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Yes

Employers 41% Employees 25% Source: Randstad August 2006

2007 SHRM

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Are Employees Loyal to Their Company?

80% 70% 60% 50% 40% 30% 20% 10% 0% Yes

Employers 72% Employees 56% Source: Randstad August 2006

2007 SHRM

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What makes a Great Place to Work?

Flexibility Challenge and responsibility Stable work environment and relatively secure job Compensation Professional development Peer recognition Stimulating colleagues and managers Exciting job content Organizational culture Location

SOURCE: Rise of the Creative Class by Richard Florida, professor at George Mason University (2006)
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2007 SHRM

What Are the Key Retention Issues to Employees?

Fairness at Work Concern for Me as an Employee Job Satisfaction The Reputation of My Employer Trust in Me as an Employee

Source: Walker Information

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2007 SHRM

What Are the Main Reasons Employees Resign?

Poor Behavior and Supervisions Skills of Front-Line Managers Lack of Growth Potential Unable to Speak Freely About Concerns Lack of Recognition Dont Like the Work Inadequate Pay Lack of Work/Life Balance

Source: Saratoga Institute

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2007 SHRM

People quit their manager, not their company.

Marcus Buckingham

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The HR Professional MUST Master These Competencies in order to Succeed in the Future Strategic thinking Talent management Business acumen Technology/ technical skills International/ global perspectives Finance capability Flexibility/ adaptability Change management Innovation and creativity

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2007 SHRM

Top 10 Knowledge/Skills Expected to Increase in Importance over the Next Five Years Critical thinking/ problem-solving IT application Teamwork/ collaboration Creativity/innovation Diversity Leadership Oral communications Professionalism/ work ethic Ethics/social responsibility Written communications

Source: Conference Board & SHRM - 2006

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2007 SHRM

Ranking Leadership Skills for the Successful Leader

1. 2. 3. 4. 5. 6. 7. 8. Leading Employees Building and Mending Relationships Change Management Participative Management Resourcefulness Decisiveness Doing Whatever it Takes Straightforwardness and Composure

SOURCE: CCL (2006)

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2007 SHRM

You miss 100 percent of the shots you never take.

Wayne Gretsky

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Theres no I in TEAM. But there is an I in WIN!

Michael Jordan

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Good managers play checkers. Great managers play chess.

Marcus Buckingham

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There is only one valid definition of business purpose: to create a customer.

Peter Drucker

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