Blog #10 - Human Resource Management Review

Have you ever noticed that when people don’t know what you do they assume you do nothing?  Or, they assume your work is not important.  I reluctantly admit that I am one of those people.  And that is how I felt about the Human Resources Dept.  Why do they need so many people when all they do is listen to complaints and manage our benefits?  This class has taught me exactly what they do and why it is necessary to have an entire department.

We began the course by learning about how workforce globalization, which leads to diversity, and the increase of technological advances lends to a very different human resources environment.  Members of your team can be spread over many different continents and time zones, and the use of e-mail, teleconferencing, videoconferencing, etc. allows this to be possible.  We learned that the costs of human resources aren’t always so obvious, such as employee turnover and lost productivity, but still translate into very real dollars.  Planning and forecasting these resources, when done correctly, can lead to true company profits.  The workforce environment today demands a work-life balance which is very important in the recruiting, staffing, training and retaining valuable employees.  And, knowing the value of performance evaluations, how to compensate based on the these evaluations and market value, and knowing the laws as it pertains to employee rights as well as organized labor are important aspects of Human Resources Management.

What do I take away from this class?  Three important things:  1. A different way of thinking.  I will no longer take the ignorant approach and assume a person’s job isn’t important just because I don’t take the time to find out what they do.  2. Knowledge.  I learned a lot about the functions of Human Resources Management and why they are important.  3. Blogging.  Before this class I had heard of a blog, but never really quite understood what it was.  Today, I am implementing my very own Tax blog at work on our intranet site.  What a great way to convey information to others!

Thank you.  I’ve truly learned a lot and enjoyed it.

Here is an article that sums up what we have learned this semester - The Changing Role of Strategic Human Resource Management in Principles of Management.

Blog #9 - Progressive Discipline

Last Monday, a good friend of mine was terminated from her job.  We all saw it coming . . . she was going through some personal problems and it was definitely affecting her work.  She was late to work almost every day because she had to get her 3 children ready and over to her mom's house, which was no easy task.  Not to mention the illnesses, the head-lice incident, and the parent-teacher meetings.  She started taking longer lunches and leaving work early.  She began missing work deadlines and meetings.  About 2 weeks ago, her boss and a HR representative had a meeting with my friend to discuss her work issues.  They presented her with a 5 page document outlining her poor performance issues including 3-4 examples of each offense.  It also included a plan of what she needed to improve, what needed to be corrected, and how she would be evaluated.  They gave her a deadline to meet these goals, which was 30 days.  Within the first 2 weeks, she was late to work 1 day due to a child illness and (her boss said) she missed a deadline.  They let her go, providing her with 2 month severance package and continued benefits, and paid-out her unused vacation time.

Did her employer follow all the necessary steps?  5 Step of Progressive Discipline outlines the correct process.  1. Oral Reprimand.  I know my friend did make her boss aware of her personal problems.  This was an informal conversation and, to her knowledge, nothing was documented.  2. Written warning.  This was provided, as mentioned above.  3. Final written warning.  Since she was terminated before the 30 day deadline was reached, there wasn't time for a final written warning.  4. Termination Review.  We can only assume the was completed by her boss.  5. Termination.

What could have been done differently in this process?  Was her boss justified to terminate her before the 30 day probationary period?  Do you think her boss was more than generous with the severance package provided?  Let me know your thoughts.

Blog #8 - Employee Assistance Programs

While reading about Employee Assistance Programs (EAPs) in Chapter 15 of our text book, I found it hard to imagine a downside to this employer-offered benefit.  Wow, my employer will actually pay for me to get help if I had an alcohol or drug problem, I need legal help or require tax assistance (by the way, I don't need help in these areas - I mean, I really like wine but I'm pretty sure I don't have a problem!)?  To reaffirm this opinion, in the article The Top 10 Reasons Why Your Company Needs a Employee Assitance Program the top 5 benefits are:   1. Improved Productivity, 2. Reduced Company Costs, 3. Third Party Assistance, 4. Increased Morale and Workplace Harmony, 5. Reduced Absenteeism  (you can read the rest in the article).  These are some pretty convincing reasons.  Why wouldn't an employer offer such a program?

Here's why.  The article The Disadvantages of Employee Assistance Programs explains the downside to these programs.  1. The cost.  It is not always clear there is a positive return on investment and the cost to implement these programs can be substantial. 2. Confidentiality.  At work, it isn't always easy to keep your personal life private.  Although counselors have an obligation to confidentiality, co-workers may find out you are participating in these programs.  You may be embarrassed and choose not to continue treatment.  3. Effectiveness.  This depends on the provider.  The employer must choose wisely, and, as the saying goes "you get what you pay for".  4. Misuse.  I believe this is the bigest disadvantage.  Personally, I know some people who use this as another form of PTO (Paid Time Off).  Obviously, this can be very costly to the organization.

So, are these programs good or bad?  Effective or a waste of time?  As in many circumstances, it depends.  It depends if the programs are well planned, successfully implemented, and well-run.  Rationally, it only makes sense that a happy, well-adjusted, problem-free employee would be more productive.

Blog #7 - The Do's and Don'ts of Implementing an Incentive Pay Plan

Incentive pay plans can be great motivators.  What could be better than the almighty dollar to get employees to work harder, faster, and safer?  There are many forms of monetary incentives:  sales commissions - a percentage of a successful sale; bonuses - supplemental pay;  profit sharing - employees share in the profits of the company; and stock options - employees can purchase company stock.  But how do you implement these incentives into an already existing pay structure?  And how do you do this successfully?

I found 2 articles that address these questions.  The first article, How NOT To Do Incentive Pay, discusses an experiment performed by Hewlett-Packard that went horribly wrong.  The experiment taught HP (and others) a valuable lesson - how not to implement an incentive pay plan.  Lesson #1 - Setting Goals.  Goals that are too easily attainable will increase costs and affect the bottom line.  Lesson #2 - Adjusting Goals.  Avoid this!  A moving target causes distrust in the system and poor attitudes among workers.  Lesson #3 - The Effects of Different Performance Levels.  Employees can become competitive and uncooperative toward their co-workers, which leads to decreased productivity.  The experiment was abandoned and the old pay structure was restored.  What could HP have done differently?

The second article, Incentive Compensation, gives advice on how to implement an incentive pay plan the right way.  When setting goals, make sure they are clear-cut, understood, and communicated to employees before the plan begins.  Also, tie individual goals to the company goals.  Focus on what behavior is desired, and make sure the incentive drives that behavior.  Next, the plan design should link goals to increased performance.  This is important for 2 reasons:  1. Increased performance leads to increased profits and 2. The increased profits will help cover the costs of the incentives. 

Companies and employees can benefit from a well designed incentive pay plan.  Don't let what happened to Hewlett-Packard happen to your company.  Pay attention to the do's . . . . and be aware of the don'ts.

Blog #6 - Working from Home

It was a cold February day.  It had snowed steadily all night long and accumulated more than 6 inches.  Schools were closed.  No way was I driving an hour and a half to New Jersey!  So, by 6am, I was logged in and working on the sales tax information that needed to be submitted by the end of the day.  No problem.  I was finished before 11am.  Now, time for the conference call.  I grabbed my cell phone and dialed in.  Lunch time!  I made lunch for my husband and the kids, started some laundry, then back on the computer.  Wow, 35 e-mails in the 40 minutes I was away from my computer?!?!  I answered all of them and made a few more phone calls.  Then, I started my reconciliations.  I worked till about 5:30pm, then started dinner.  I ate, cleaned up, put the laundry in the dryer and started another load, then back on the computer.  I finally logged out around 8:30pm.  I really got a lot of work finished.  It was a good day!  Okay, so I didn't get to take a shower, but I was otherwise productive.  I think I actually have time to watch a TV show . . . .

Working from home does have its advantages.  I can put more hours in to actually working instead of three hours commuting.  Also, there are fewer interruptions.  No one is stopping by your desk to ask a question or to talk about what they watched on TV last night.  Instead, they send an e-mail and you can answer them at your convenience.  Less interruptions leads to less errors.  I find I can concentrate and finish what I'm working on, which usually means my work is more accurate.  And, my favorite advantage, I can also get some housework done!  I'm also available to the kids if they need me - and they usually need me to be the referee!

The article Working Remotely Alleviates More Stress Than It Creates discusses additional advantages to working from home as well as suggests other ways to increase job satisfaction.  The work place is changing due to technological advances and working from home will become more the norm than the exception.

Blog #5 - Problems at Work

Situation:  It's Friday afternoon, 4pm.  I go over to ask a co-worker a question about a Canada sales tax issue.  We discuss for a while, then he suggests we ask another co-worker for her suggestions.  We go over and explain the situation.  Her response - "Why are you bothering me with this at 4:00 on a Friday afternoon?"  I make light of her comment, stating that no one wants to be at work at 4:00 on a Friday.  She says, "Yeah, I'm surprised YOU'RE still here".  I try to stick to the matter at hand and say, "I feel the change in the sales tax filing warrants an adjustment to the AP system since we will need more detailed expenses.  The change will be in effect for 7 years and anything to simplify and automate the process will allow us to capture accurate information quickly."  She dismisses my suggestion, stating that there will be NO adjustments to the AP system for a temporary change in filing requirements and mutters something about the suggestion being absurd.  I say nothing, and walk away.

What is my next step?  I know this isn't the first time she has been rude to a co-worker.  Should I ignore it?  Maybe she was just having a bad day.  But my suggestion deserves consideration.  7 years, although temporary, is long enough to implement an adjustment to the system.  Okay, so I can't ignore it.  I discuss the situation with a long time friend and fellow employee and she said the employee handbook states I should confront this person and try to work it out between ourselves.  I also let me boss know the situation, without naming names, in the event we cannot work it out between ourselves and HR needs to be involved.  Then what?

The article How to Handle a Rude Co-Worker gives step-by-step instructions on how to handle such a situation. So far, I have completed Step 1 - Don't go on the defensive.  I'm on to Step 2, and Step 3 will happen tomorrow.  Hopefully, that will be the end of it.  I have never had a problem with another co-worker, until now.  I'll keep you posted.

Blog #4 -Human Resource Development - Performance Appraisals

It comes around every 4 months . . . the dreaded performance appraisal!  I have to log into our LDP System (Leadership Development Program) through the company intranet site, evaluate my goals, and have my boss evaluate my evaluation of my goals.  It seems so tedious.  I have a million things to do and now I HAVE TO do this, too?  I just finished my year-end 2010 LDP evaluation.  As painful as it is, my yearly bonus and merit increase depends on it.  Unfortunately, 80% is based on the companies performance, which is mostly out of my control.  The other 20% is strictly based on my accomplishments and  the ratings range from a G4 (below acceptable) to G1 (need to do something extraordinary).  G1s are not attainable.  My boss told me one year he saved the company over $40 million in taxes and he was not given a G1.  So, I have to consider myself lucky to get a G2 - which I did.  But why are these appraisals so important?

According to the article Purpose of Performance Appraisal, there are many reasons why companies mandate these appraisals.  1. Career Development - This is evaluated yearly in the LDP.  It allows my boss to discuss the possibilities of promotion or my involvement in other areas in the business. 2. Feedback - I find this to be the most important part of the LDP.  If I need to be doing something differently or there are areas I can improve upon, this is when the discussion takes place. 3. Administrative Uses of Performance Appraisal - A G2 rating is assigned a certain percentage for bonus and merit increase payouts  4. Performance History - I can see my career progress, which helps me to plan for the future. 5. Organizational Goals - I make sure my individual goals are aligned to the business goals. 6. Job Standards - My responsibilities and what is expected of me are very clear.  7. Documentation Use of Performance Appraisal - My boss and I must both sign the LDP for HR documentation.

So, although it seems very cumbersome, the performance appraisal is important to the company and to me.  It helps me realize my potential as well as provide constructive feedback to help me attain my career goals.  As long as my goals are aligned to the company's goals, the company will benefit from the performance appraisal.  Now that I have my G2 rating, I'm just waiting for pay day!  Oh, wait - Q1 2011 goals are due . . . .

Blog #3 - It's Time To Get Creative

Unemployment rates are at an all time high.  With so many looking for work, you would assume finding talented people would be easy.  Not true.  Finding good people with desired skills and who fit in with your company's culture is a daunting task.  How do you find these people?  It's time to get creative.  Job postings no longer entail calling the local newspaper to place a classified ad for hundreds of dollars.  Now, the job postings are on the company web-site, Monster.com and Careerbuilder.com.  Virtual job fairs are a great way to reach a large amount of people all over the world.  And sign-on bonuses are an attractive enticement. The article Race for workers requires creative recruiting methods lists a few unusual ways to find talent.  Some notable suggestions are offering perks, such as on-site fitness centers, day care and dry cleaning, and canvassing strangers.  A Dozen Tips for Creative Recruiting lists movie theater advertising and telephone "messages on hold" about available positions as different ways to find potential new hires.

Now that you have a pool of candidates, how do you choose?  There are a number of testing methods that can be used.  Employment applications, recommendations, and background checks are traditional ways of screening candidates.  Although, according to How to Choose the Right New-Hire from Several Qualified Applicants, personality and attitude are equally important.  You can observe candidates in a leaderless-group discussion to evaluate their ability to work with others, their emotional state, and what role they play in a business environment (leader, note taker, risk taker, etc.).  During an interview, you and other interviewers can assess these traits to see if the candidate will fit in with others in the company.

Finding and retaining talented employees is the key to any company's success.  Skills are not the only factor to consider;  the candidate's personality and attitude need to match the organizational culture.  You may have to come up with some creative recruitment and selection techniques - but your company's future depends on it!

Blog #2 - The Search for Talent Using Social Media

Did you ever watch the TV show "The Middle" on ABC?  I remember an episode when Mike (the Dad) is laid off from his job at the quarry for a few months and needs to find temporary work.  He begins to search the classified ads in the newspaper and dusts off the old typewriter to start drafting his resume.  This process continues for about a week.  He tells his son, Axl, that he needs to find a job, too.  A few hours later, much to Mike's surprise, Axl had found a job.  "How did you do that?" he asked.  Axl replied, "I texted Joe, who tweeted Johnny, who e-mailed me an application that I filled out and sent back to Johnny who gave it to his Dad.  I just finished my video-interview in my room.  I start tomorrow."  (It's not exactly word-for-word, but you get the idea!)  Social media is becoming a very important part of the talent-search process.  In this fast-paced business environment, businesses need to react quickly to stay competitive.  Texting, tweeting and e-mail are just a few ways to reach the talent pool.

Why use social media to find new hires?  The technology is available, so use it!  And by the way, so does everyone else.  According to econsultancy.com, current social networking statistics are:  Facebook - 350 million active users;  Twitter - 75 million user accounts; LinkedIn - 50 million members worldwide.  Go where the people are!  Post on Facebook, send a tweet, and get LinkedIn.  Tell the world you have a job available - literally.

Social media is an inexpensive (not free) way to search for new talent.  Setting up a Facebook or Twitter page or your own blog costs nothing.  Although, hiring someone to make these posts professional is a wise investment.  Yes, you will need a budget for this type of advertising.  But the amount of people you can reach vs. the cost makes this investment very cost-effective.

Don't spend your time actively searching out new talent.  Use the many social networking tools to attract the talent to you.  Target your audience and find the sites they frequently visit.  Be specific, discuss your companies distinguishing qualities and why they should consider a career with you.  Engage in conversations to further educate your audience about your values and vision.

At the end of the TV show, Mike finally used a word-processing program to draft his resume and e-mailed it to a Careerbuilder.com inbox.  He landed an interview in a few days. . . at a septic tank maintenance company.  In his words, "Living the dream!"

In the "Social Media At Work" book by Jue, Marr, and Kassotakis, I am referencing page 78, " . . .  we've seen at least five specific areas where they are capitalizing on social media to make a real difference:  1. Attracting and retaining the best employees . . ."  I focused on the "Attracting" piece of this area.

Here is an article on Careerbuilder.com discussing Social Media to Recruit Top Talent -http://thehiringsite.careerbuilder.com/2010/07/22/leveraging-social-media-to-recruit-top-talent/

A reference to go along with my Social Media post

I found an interesting article addressing the future of social media in the workplace.  I guess this is what I have to look forward to in the next 14 years . . . .

http://www.socialmediaexplorer.com/social-media-marketing/predicting-the-future-of-social-media/#

Blog #1 - Social Media in the Workplace - My Personal Experience

The business environment is changing at lightning speed.  Advances in technology, the age of the growing population, increased diversity, and global competition forces companies to reevaluate their priorities and the way they do business.  The decisions made by human resource management will determine whether or not a business is sucessful in handling these changes and staying in business.  Useful tools in aiding human resource management with the changing environment are social media.  Social media are defined on Wikipedia.com as "media for social interaction, using highly accessible and scalable publishing techniques.  Social media use web based technologies to turn communication into interactive dialogue." Social media need to be incorporated in all aspects of the business environment - Sales, Finance, Technology, Marketing, Human Resources, etc.

My personal experience with social media began many years ago when I got my first "real job".  I accepted a position at a local public accounting firm as a staff accountant.  I had to share computers with others in the office, which was very challenging.  Realizing the inefficiencies this created, the partners agreed to purchase computers for everyone in the office.  Obviously, productivity improved.  We were given internet access so we could research new regulations on the irs.gov website.  Soon, the partners implemented a VPN connection so all the employees could put in their overtime during tax season at home.  All of these changes in the office were implemented over the course of a few years.

Needing a change from the long hours during tax season, I began looking for another job.  I posted my resume on Careerbuilder.com and received a call from a private company looking for a Tax Accountant.  I accepted the position and was immediately overwhelmed by the cultural differences.  The company had locations in Hong Kong, Mexico, & Canada as well as partners in Europe.  I was now interacting with people from very different cultures on a daily basis.  We had conference calls at all hours, and e-mailing and scanning documents became imperative to retrieve and report information quickly.  Web meetings sometimes included all 3,000+ employees where we could talk to each other and view the same PowerPoint presentation.

Thriving for advancement opportunity, I accepted my current position - Sales and Use Tax Manager - at a publicly held company.  Again - culture shock!  The company has a presence in over 37 countries and continues to look for additional opportunities elsewhere.  I can go on the intranet site and retrieve any company information I need.  Training courses are mandatory on a variety of different topics - Sexual Harassment, Workplace Safety, Work Etiquette, etc.  The courses are video presentations we can take at any time - at work or at home - via our laptops.  IM (instant messaging) is used just as frequently as sending an e-mail.  Wikis are used to work on projects with team members in different locations.  Each top executive has their own blog available to all employees.  The company uses Facebook, YouTube, and Twitter to promote new products and retrieve customer feedback.  The Work-Life balance is engrained in the company culture and teleworking is encouraged.  I could go on!

It's amazing to look back and see the progress made over the last 14 years.  Social media have become a necessity for business success.  Technological advances made it all possible, and diversity and global competition made it a necessity.  I can't wait for the next 14 years!

A Bleak Economy and Downsizing

One of the factors that led to the economic crisis of 2008-2009 began with the housing market.  Lenders made it very easy to borrow money and handed out mortgages to anyone.  The demand for houses increased, which drove up house values to record highs.  But something had to give - and it did.  Adjustable mortgage interest rates began to increase which increased the home owner's monthly mortgage payment.  Many couldn't keep up with this higher payment and went into foreclosure.  As a result, lenders and home builders went out of business, which led to the domino effect of lost jobs in other business environments.  Businesses that did survive were forced to downsize.  This creates a whole new set of issues for Human Resource Departments to handle.  There is a right way and a wrong way to handle downsizing.  I found this article, "Downsizing With Dignity" interesting and informative.  It discusses the do's and don'ts of how to handle employees who will lose their jobs and gives examples of good and bad situations.
http://humanresources.about.com/od/layoffsdownsizing/a/downsizing.htm