5 Reasons You Should Hire Job Hoppers

I recently attended the HR Management Association of Chicago’s (HRMAC) annual conference.  The day held 4 informative sessions on HR topics – a nightmare for non-HR geeks.  I’ll come clean…I was excited all day long…please don’t judge.  I was particularly intrigued and even inspired by the first speaker, Penelope Trunk.  Since the conference, I've begun to read her blog regularly and find her ideas counter-intuitive  provocative and meaningful.  You should also check it out:  www.penelopetrunk.com.  She has created 3 start-ups, is considered a guru on Gen Y, and writes about several topics including homeschooling, coaching and career advice.  This post is based on the notes I took during her HRMAC presentation “How to Talk the Talk with Today’s Top Talent” in November 2012.

Before her HRMAC presentation, I’ll admit, I was expecting the general discussion around collaboration and technology, however, she went deeper.  Without giving away the details of her full presentation, I do want to address one idea she had, which was that it is best to hire job hoppers.  Don’t panic…I promise I’ll explain.  This idea (among a few others) actually offended many traditional HR professionals in the audience and was a hot discussion topic during lunch that day.  I generally enjoy a good button pusher.  To lay the foundation for this argument, we need to briefly discuss Gen Y (the Millennial Generation).  I belong to this group, so perhaps there is vanity in this post, but I hope it gets you thinking.

Generation Y was dubbed “Generation Me” by Jean Twenge in her 2007 book on the topic.  This group is characterized by having a sense of entitlement, narcissism and rejection of social conventions. They are also known as the "Trophy Generation", or "Trophy Kids", a term that reflects the trend in competitive sports, as well as many other aspects of life, where mere participation is frequently enough for a reward (Ron Alsop, 2008).  Next, we’ll move onto some fun statistics characterizing Gen Y.  Studies by the University of Michigan and UCLA revealed the percentage of students who said being wealthy was very important increased from 45% for Baby Boomers (surveyed between 1966 and 1982) to 70% for Gen X and 75% for Millennials. The percentage who said it was important to keep up to date with political affairs fell, from 50% for Boomers to 39% for Gen X and 35% for Millennials.  "Developing a meaningful philosophy of life" decreased the most, across generations, from 73% for Boomers to 45% for Millennials. "Becoming involved in programs to clean up the environment" dropped from 33% for Boomers to 21% for Millennials (Michelle Healy, 2012).  Generation Y has also led a trend towards irreligion that has been growing since the 1990s. 32 percent of Americans born between 1983 and 1994 are irreligious, as opposed to 21 percent born between 1963 and 1982, 15 percent born between 1948 and 1962 and only 7 percent born before 1948 (talkingpointsmemo.com, 2012).

Now that you know a little about the generation that led Penelope to outrageously declare that hiring job hoppers is a smart move, let’s discuss the crazy reasons used to support this notion.

1.  Job Hoppers are more intellectually challenged.  Most jobs have steep learning curves early on.  After about 2 years on the job, you have learned just about all there is to know in that position.  This makes you wonder how someone in a job for 20+ years keeps their brain sharp.  Due to this fact, job hoppers know more.  When you change jobs often, you’re always challenged, and your learning curve remains high – for office skills, industry specific skills, and even your emotional intelligence.  Navigating various corporate hierarchies, and dealing with different kinds of drama, the more you will learn about people (an important skill).
2. Job hoppers have more stable careers.  You might think I've been drinking at this point of this post, but I promise, just listen.  Corporate America doesn't provide stability to its employees – you have to create this on your own.  Layoffs, downsizing and JIT hiring/contract workers are the realities of today and probably tomorrow.  Creating careers stability begins with networking since most people find jobs through their network and not by applying to as many jobs as possible on the web.  Working for lots of companies means your network is larger than someone who stays put for awhile.  For this reason, job hopping creates stability.
3. Job hoppers are higher performers.  I may keep crossing lines, but we might as well keep going at this point.  Hopefully you are at least intrigued.  Job hoppers are always looking to do well at work because they know they are within a year or two of leaving.  In this situation, they need to be conscious of their resume and the skills and projects they’re tackling.  The want/need to become experts in their field.  If nothing else, this helps them get their next job.  You can’t job hop if you don’t add value at each of your jobs.  Job hoppers are usually over-achievers on the projects they’re involved in  - they want something good to put on their resume.  Companies benefit more from a strong performer who’s in a seat for 18 months than a mediocre employee that they keep for 20 years.
4. Job hoppers are more loyal.  I know, this is completely counter-intuitive, but keep reading.  Loyalty is caring about the people you’re with, and job hoppers are great team players, because that’s all they have.  They don’t identify with a company’s long term performance, but do identify with their work group’s short term performance.  They want their boss to give them a good reference and work hard to gain their respect.  For networking purposes, they want to network with co-workers for the purpose of future employment.  They don’t have 10 years on the job to fix a first impression, so they want to make sure those who work with them or meet them find it to be a good experience.  And it if you think about it, this makes sense for a company, too: the company isn't hiring you with any decade-long commitment, so you would be foolish to think you have to give one.
5. Job hoppers are more emotionally mature.  It takes self confidence and knowledge to know what you want to do next and go get it rather than stay in a seemingly safe place.  You must be committed to personal growth to embrace challenging your learning curve rather than being complacent in your career (over and over).  It’s rather brave for someone to say, “ I've only been here for 6 months, but it’s not right for me and I’m leaving”.  Most people around you will tell you to stick it out and give it a year or two.  But, why would you waste this precious time doing something you wish you weren't doing?

And there you have it.  The notion sounded far-fetched when Penelope started talking about it.  However, the points make sense, and I've seen real examples of this (and I’m sure you have to) in my professional world.  The new kid with the great degree or fantastic experience comes busting through the doors, and hits the ground running.  They make changes and/or have a significant impact on projects, their department of entire function in the workplace very quickly.  Then, before you know, 18-24 months into a job they are knocking out of the park, and they leave.  People are surprised that they are moving on since they did a great job, and the organization is unhappy to lose them.  The tenured employees say scathing things about how they are a job hopper and can’t stay in a job very long.  But imagine how excited the next company is based on what they can do.  Now for the tough part, they have to replicate that high level of performance all over again, and in just as short a time span.  It’s like running one marathon after another.  Could you do that?

I’d love to hear your thoughts on this topic!

Performance Looking Low...Try MBO

Attention Leaders and Small Business Owners!

Picture this for a moment – you are about to enter your yearly performance review.  You have no idea where you stand.  How does that feel?

Let me answer this for you – it feels pretty terrible.  Your feelings about it range from “I’m doing OK” all the way to “I’m getting fired”.  It’s probably causing you some anxiety, and causing you to generally hate performance review time.  Assuming your reviewer feels you are performing OK, you will probably get some mediocre feedback, and leave the review session just to work another year and end up in the same anxiety filled discussion with your supervisor next year.  It’s no wonder that most people hate performance review time.

Now…picture that you were given 5 distinct goals and objectives to achieve above and beyond your daily tasks and your boss outlined what success looked like against all 5 goals.  Going into your review, whether you nailed all 5 or not, at least you know where you stand and can appropriately prepare for the discussion with your manager.  Now, let’s take it a step further and brainstorm…what could make this process even better in terms of managing your performance?  Let’s say you got to be involved in the setting of those annual goals – how would you feel then?  It would be pretty fair to me at the end of the year, particularly when I had a say in the goals that I set out to achieve.  In addition to feeling fair, I would be appreciative that I knew exactly what I had to do to meet (or even exceed) expectations at work.  In this scenario, it’s up to me how successful I am in my career.

Academia calls this process “management by objectives” or MBO.  It a process first conceived in the 1950’s, and while some consider it a dated process, I argue that it still has a place today.  I would caution that if you use MBO, you should be aware that context can sometimes be lost if not properly managed (i.e. availability/quality of resources and relative buy-in by leadership/stake-holders).  I also argue that ensuring goals are SMART is essential to making the process effective.

Are you ready to make a change in your leadership style?  Are you interested in implementing MBO for your team or organization?  Not exactly sure where to start?  I recommend business owners look at what the organization needs to accomplish over the course of the year for you to define it as a successful year.  This is an entire process unto itself, deserving of another post.  However, I would assemble your leaders if applicable, and ask where they want/need to be at the end of the year for their piece of the puzzle to be successful.  They should be prepared for such a meeting by gathering any necessary information from their subordinates.  Make sure the voices of your front line are heard when setting organizational goals – you’ll be further along as a company, and likely better serving your customers.  Be prepared for, and encourage brainstorming – organization of the company level goals can come later.  I’ve seen companies come away from these sessions with anywhere from 5-50 organizational goals (depending on the size and complexity of the organization). 

Now we know what needs to be achieved, but we need to decide who is going to achieve what.  If you have leaders in your organization, divvy up the responsibilities according to who has strength in particular areas.  If those leaders have teams, then it is their responsibility to divvy up responsibilities among team members to help the department best achieve results.  Now, we remember that MBO is an inclusive process.  So while the organization may dictate WHAT needs to be achieved, the employee may have great ideas regarding HOW.  Actually, they probably should…that’s why you hired them, correct?  While collaborating, it is the responsibility of the manager to ensure the goals meet SMART criteria (specific, measurable, attainable, results-oriented, and time-bound).  Call on staff to be creative in the ways they help solve the company’s problems, but make sure it’s done in a way that does not compromise values which may be important.  Running someone else over in order to achieve your goals is not the right way to go about it.  Also remember that if you have staff that is frustrated by processes needing improvement within the company, finding a solution can be part of their goals.  Call on your staff to do more than identify problems, make sure they’re helping you solve them also.  Again, this should be why you hired them.

Ask your employees to be honest about their performance against goals and objectives.  Most of them will be, and may even be harder on themselves than the manager by not accounting for circumstances outside their control.  You must do this as their leader, and re-calibrate them if it happens to keep them on track to achieving what is necessary.  I recommend a minimum of a mid-year session to review goals and help make sure everyone is on the same page.  Remember, I called this a process earlier, which means it’s ongoing, and not an event.  Some managers use the event model to assess performance and give feedback in a manner where they just can’t wait to see the expression on an employee’s face when they read it.  That’s not the point of performance management, and is a waste of your company’s time.  You should never feel surprised in a review session – you should know EXACTLY where you stand because you have been measuring yourself and receiving feedback regularly.

If your organization would like assistance with implementing MBO or goal setting processes, please contact me today!

Great Business Disguised as HR - The 3 Top Characteristics

Self reflection can be difficult.  However, it is important for learning and to move forward – so I make an effort to do it occasionally.  2012 has been a great year for me so far and I've been fortunate to have several great opportunities come my way and fortunate to have the courage to take those opportunities.  Upon a little deeper thinking, I got to look back on an event that I still have mixed feelings about.

I changed jobs this year.  But that’s not what I’m talking about.  Prior to leaving my previous employer, I was being considered for an opportunity outside of HR – and seriously considered the opportunity.  This is a cause of reflection, because the executive who interviewed me for the role stated at one point how surprised she was to find strong strategic talent in HR, and never would have previously considered an HR person for roles that were more operationally based.

This statement has stuck with me because my “insider” view of HR is very different than that of external views.  Now, you might say that I shouldn't be shocked by this view of HR – it’s pretty standard.  However, the views of HR have been steadily changing for years, and I've been fortunate to have been surrounded by strong business people (notice I didn't say HR).

Ultimately, I moved on from that organization and stayed in an HR role.  When I was leaving, my previous manager seemed surprised I was staying in HR because she thought I was “too talented” for an HR role.  This pattern in thought process toward HR may have contributed to my decision to leave that company.  However, I can say I feel more confident in my ability to elevate the HR function knowing that I was seen as too valuable to an organization to be wasted on such work.  I've thought about characteristics that may have shaped that perception and have listed them below.  These are characteristics I aim for because they’re important in any role in any business and should be that much more important in HR.

1. Know. Your. Business. – Not the HR business, but the business you support.  Know it inside and out and better than anyone else.  Understand why things function the way they do, and why some decisions made have been good, and others not so much.  Understand the struggles of every employee group.  Understand the future plans of your organization, and how all of the puzzle pieces may (or may not) fit into that.  Understand the financials - and the perception of financial health.  In other words, KNOW YOUR STUFF.
2. Be process driven – even in the entrepreneurial world, where process is often overlooked (intentionally or not intentionally), there are more times than not where it will be appreciated, and lead you to solutions that move your organization (and you) forward.
3. Get shit done.  Pardon my language, but a colleague once said this to me on a job analysis questionnaire, and I've never heard it put better.  In any part of the organization, leaders and executives like people who get it done.  Now, I’m not saying that values should be compromised to do so, but you understand what I’m saying.  Be the person who makes moves and makes things happen.  Everyone in every department wants that kind of person on their team.

So what is my advice to business owners and leaders looking to beef up their business?  Get great business people in your organization.  Get great business people particularly in HR.  Utilize HR beyond its administrative, cost center function.  How do you do this?  Look for some of the things I mentioned above.  Look for the same things in your HR staff that you would look for in profit and strategy driven functions.   I promise you won’t ever be disappointed with such a decision.

What are your thoughts on this?

Guest Post - Three Retention Secrets for a High Performance Environment

High performance environments are stressful workplaces, to say the least. When results are king, mediocrity is disdained and failure intolerable. Some employees burn out in the struggle to consistently meet the high expectations typical of these environments. Meanwhile, the individuals who thrive in these environments have intense ambition--and are always on the lookout for greener pastures.

How, then, can high-performing employers reduce turnover, and better retain employees?

The problem may be in the reactive approach companies take when addressing retention. Why not address retention proactively, as a strategic issue? As I see it, there are three things any organization can do to proactively combat turnover.

1. Hire Retainable Employees

The pressure’s on from day one in a high performance environment. While some thrive under pressure, others will falter. By only hiring people who are likely to excel in your organization, you can reduce the chances of this type of casualty.

Work with your managers and top performers to identify what backgrounds, skills or personality characteristics your retainable employees have in common. Then, use this insight to guide your sourcing and screening.

2. Don’t Just Fill Roles - Plan Careers

It’s easy to focus on the near-term when managing people in a high performance environment. You bring in “A Players” with the expectation that they’ll succeed in the role for which you’ve hired them--and unrealistically assume they will stay in that role forever. You need to think bigger.

Career-pathing doesn’t have to be a formal program. The key is to guide your employees in mapping out how they can attain their career goals within your company. Even a rough or incomplete plan is better than no plan at all. Simply having conversations around an employee’s goals shows you care about the employee’s future, which in turn breeds loyalty.

3. Make Retention Personal

Every employee is motivated by different things, and retention strategies thus need to be tailored down to the individual level. Successful organizations don’t view retention initiatives as “one size fits all.” Instead, they’re making retention strategies personal. How? By simply asking, “What motivates you?”

You may be surprised to find that monetary incentives are low on the list of responses you get. These days, “A Players” are more concerned with challenging work, personal and professional growth opportunities, work/life balance, and workplace flexibility.

If money’s the only thing you’re offering employees, don’t be surprised if they look elsewhere for what really matters to them.

What retention strategies have you seen work in a high performance environment? Leave a comment, and join the conversation.

Special thanks to Kyle Lagunas for his contribution of this article to the CatapultHR blog.

About the Author: Kyle Lagunas is the HR Analyst at Software Advice. He blogs about trends, best practices, and technology in HR, talent management, and recruiting. This article originally appeared on his blog: http://blog.softwareadvice.com/articles/hr/5-retention-strategies-for-a-high-performance-environment-1062112/

The ONE Change You Can Make to Better Leverage Your Human Capital & Business Decisions

Happy Memorial Day!  The holiday weekend has allowed me some time to think about HR.  I’ll think about and talk about HR as long as anybody lets me and a topic I’ve been thinking about recently is the difference between an organization that has a partnership with its HR function, and organizations that have a strategic partnership with their HR functions.  What’s the difference?  Do the benefits of one outweigh the benefits of another?  Is one always better than the other?  I recently witnessed the startling difference between the two and it’s been weighing on my mind how such a change can be a pivotal transition for an organization. 

Let’s start by understanding the difference between a partnership and a strategic partnership.  A partnership exists when the business looks to HR for advice to handle its people matters.  Sometimes this is referred to as a business partnership.  The business relies on their legal knowledge and expertise with people issues to manage decisions that have been made and to keep business running smoothly.  A strategic partnership exists when HR is directly involved in the major business decisions of the organization, including the formation of strategy, the design of the organization and the implementation of the business model.

Let’s take an example to understand the difference.  Your organization decides to open a new facility in another state.  Is HR and human capital considered after the decision to open the plant is made or before the decision is made?  A strategic partner is part of the decision making process and has input into the decision rather than helping the business deal with the effects of the decision after it is made.

I’ve had the experience of being part of organizations with both types of relationships with their HR function.  Now, please keep in mind that if anything less than a partnership exists, it’s probable that some facets of the business are being overlooked.  I want to be clear.  I am an advocate of the strategic partnership, although understand and support cases where a business partnership works. 

A business partnership is necessary in most organizations today that want competitive edge.  The vast number of successful organizations have built decent business partnerships with their HR function, and see its value as an internal support system.  This is progress from what this relationship looked like 20+ years ago.  There has been a push, particularly in the last 15+ years for the business to form a strategic partnership with its HR function.  I believe it has become increasingly important as the reality sets in that human capital and how it is organized are increasingly pivotal to organizational effectiveness.  Businesses that have strategic partnerships with their human capital functions are shown to more quickly add and keep shareholder value.  The unfortunate part of this story is that a statistical analysis performed on HR from 1998 to 2007 showed no statistically significant change in HR performing business strategy activities such as identifying/designing strategy options, choosing the best strategy option, planning strategy implementation, identifying new opportunities, or assessing possible merger, acquisition or divestiture strategies.

So how do you utilize your HR function strategically?  There are several ways an HR function can become more strategic.  First, the problem may be in the organizational design of your HR/human capital department.  Organizations whose departments utilize a shared service model, information technology or cross functional training for HR staff are shown to be statistically more strategic than HR departments that are decentralized or organized for resource efficiency.

It’s also important to have strong HR information systems.  Technology can make or break your business, and it can also make or break your people processes.  HR systems are a scaled item, so if you’re smaller, a less robust system may be necessary, but make sure it still gives you the information and competitive advantage your business needs.

We live in the world of analytics today, and HR is no exception to this business trend.  For HR to be strategic, having a fundamental understanding of the metrics that make your “business” successful is crucial.  Three overarching metrics I’ll recommend you have a grasp of are the efficiency, effectiveness and impact of your HR work and initiatives.  There are certain measurements for each of these factors that are important to most businesses.

HR can also improve the decision making process around human capital to be more strategic.  There are several ways HR can do this, but I’ll give you the three shown to statistically contribute the most strategically.

• HR leaders identify unique strategy insights by connecting human capital issues to business strategy.
• HR leaders have a good understanding about where and why human capital makes the biggest difference in their business.
• HR adds value by improving talent decisions inside and outside the HR function.

It would be silly to tell you steps you can take to make HR have a strategic partnership with the business without mentioning that your HR team must have the right skills.  What the right skills are is the million dollar question.  I’m going to give you 5 HR skills shown to have the most impact on creating a strategic partnership.

• HR Technical Skills

• Interpersonal Dynamics

• Business Partner Skills

• Metrics Skills

• Managing Outsourcing

Do you or your HR team have a high level of proficiency in these skills?

Overall, the road map for HR becoming more of a strategic partner seems clear both with respect to what it needs to do to be involved in a variety of strategic activities and to become a full strategic partner.  The benefits of a strategic partnership support the argument for such a relationship with business decisions.  However, I realize that there’s a difference between knowing what needs to happen and doing it.  It’s far easier to point to what HR needs to do than to make it happen.  I sometimes see a “stubborn traditionalism” that characterizes the HR profession, which can be a hindrance.  If HR fails to advance, it seems a strategic partnership will remain a goal on most human capital professional’s career checklist.  I encourage you and your business to implement some of the tactics here to start making the transition to a strategic partnership today.

Information and statistics from the Center for Effective Organizations.

Rolling With Change – Despite “Impossible” Odds

We’re constantly reminded that the only constant is change and that ideal employees embrace and champion change.  Entrepreneurs are always thinking about what is next in an attempt to stay ahead of change.  I personally have never been in an environment where change was not a daily or weekly encounter.  In fact, change occurs so regularly in my professional life, that I am uncertain if I would be comfortable with stability, which is an ironic statement, and the topic of this post.

I grew up in an age where technology rules and still rules today.  The pace of change in technology has set the tone and pace for everything I know and is the new way of business.  I expect a certain evolution to everything.  If my favorite tablet, e-reader, Smart phone, etc does not have a new edition each year, I feel as though a part of my life is “outdated”.  I look at those products and companies as “behind the times” and surely at risk of losing the technology race. 

As our favorite products and subsequent way of life are always in a state of change, so is the way we work.  It’s expected by employees and employers alike.  However, what are the implications of this expectation?  Can it ever be a disadvantage?  I have a couple thoughts.  

There are times when I do think the pace of change I am accustomed to is not ideal.  When an initiative begins to take hold that I’ve worked to put together, I am quick to doubt it and look for flaws in anticipation of the next iteration.  I know change is inevitable, so I occasionally find my anticipation of change overshadowing my ability to embrace the present.

However, the rate of change, especially in the technology industry is not likely to slow down.  Members of the workforce that find this difficult will need to evolve or get out of the way.  I consider this to be a greater disadvantage.  Often, the difference between an average and high potential employee is the difference between someone who is proactive and reactive to change.  I recommend being proactive.  Being reactive is not only damaging to a person’s long term career goals, but also to the business they support. 

There also comes a point where someone crosses the line from reactive to resistant.  I highly recommend you not be resistant to change.  It will damage your reputation, inhibit your success, and could potentially cost you your job.

Change is ever present and evoking of opinions.  What’s your opinion on this topic?

Workforce Planning: An Awesome Opportunity to Enhance & Grow Your Business

Workforce planning is the process an organization uses to analyze its workforce and determine the steps it must take to prepare for future staffing needs.  Great and successful businesses understand the importance of proper workforce planning.  It's time to give your business that same edge.  Keep reading to understand 4 steps to conduct your own workforce planning and give your business a leg up on the competition.

There are several distinct analytical steps that need to betaken in workforce planning:

1. The supply analysis, also referred to asthe “supply model” or “staffing assessment,” involves an analysis of anorganization’s current labor supply.

2. The demand analysis, also referredto as the “demand model,” includes a review of future business plans andobjectives.

3. The gap analysis compares thedifferences in the supply and demand models and identifies skill surpluses anddeficiencies.

4. The solution analysis focuses onhow to address gaps in current staffing and future staffing needs throughrecruiting, training and development, contingent staffing, and outsourcing.

Step 1: Supply analysis

The purpose of the supply model is to analyze theorganization as it currently exists—in other words, the supply of labor andskill sets that are vital to an organization. This analysis should encompassnot only the number of employees and their skills, but also factors such asworkforce demographics, including representation of protected classes.

A supply analysis also involves making projections ofattrition (due to resignations, retirements, internal transfers, promotions andinvoluntary terminations) over the planning horizon being used, so thatattrition is taken into account in considering the future supply of labor andskill. From this information, a profile can be developed of current staff as itwould exist in the future if no action is taken in recruiting, training oroutsourcing.

Step 2: Demand analysis

The purpose of the demand model is to forecast theorganization’s future workforce composition. This forecast should take intoconsideration a range of business issues. These issues may include newproduct lines, competitive forces and expansion/constriction in globalmarketplaces, anticipated workforce availability within geographic boundaries,and a myriad of other issues.

Internal and external factors need to be considered in thedemand analysis. Analyses of internal demand influences may focus on thefollowing questions, among others:

• Will the current workforce, with minimal retraining, have the skill sets necessary to perform new duties with a new product line?
• Will current employees remain loyal to the organization that has anticipated changes in mind?

Analyses of external demand influences may consider thesequestions:

• Is labor readily available that possesses the skills and abilities needed by the evolving organization?
• What external pressures will change demand for goods and services that may ultimately affect internal business decisions and, thus, workforce planning needs?

The future composition of the workforce must also beanalyzed. This analysis will seek answers to the following questions:

• How many employees will be necessary to achieve business plan goals and objectives?
• What skills and competencies will be required for the new business?
• What is the composition of the available workforce population?
• What will the organization need to do to attract prospective employees?
• What will the organization need to do to attract and retain a diverse group of workers?

Step 3: Gap analysis

The next step in the process seeks to compare the supplymodel with the demand model to identify gaps between the composition of thecurrent workforce and future workforce needs. The workforce planningprofessional may want to categorize a variety of future scenarios and thenselect the future that is most likely to occur, with contingency planning foralternative futures. When conducting this analysis, the planner will want toidentify the additional number of employees with requisite skill sets that willbe needed, as well as the employees who will no longer be needed due to limitedskill sets.

Step 4: Solution analysis

Solution analysis involves the development ofstrategies to close the gaps identified in the previous step. Approaches formeeting future workplace demands may include recruiting, training andretraining, utilizing contingent staff, or outsourcing. The approaches selectedwill be dependent upon whether the organization will need to expand, contract,restructure or rely on contingent staff to meet new workplace demands.


Content from SHRM.ORG

How To Budget for Human Capital Initiatives with 6 Easy Points

The entrepreneur’s or HR professional’s responsibility is to align the HR budget with strategic business goals within organizational guidelines and procedures. Budgeting involves the methodical collection of information and data so that the finances needed to support a business’s objectives can be forecasted. New businesses have no prior financials to use for evaluation; therefore, forecasting and estimating will be needed for the initial HR budget. From an HR perspective, the data needed to generate a new budget includes the following forms of data:

1. Number of employees projected for the year.
2. Benefits cost projections.
3. Projected turnover rate.
4. Any actual costs already incurred in the current year.
5. New benefits/programs planned.
6. Other policies, business strategies, laws or regulations that may affect costs.

Forecasts may be simple or complex and, based on actual costs or projections, depend on the nature of the operating costs and the data available. Managers or business owners preparing an HR budget for the first time will need to collect every source of obtainable data to make knowledgeable projections.


Information taken from SHRM.ORG

5 People Metrics Every Entrepreneur MUST Understand

The HR function of a business has long been seen as a cost center.  But what happens when you begin measuring people matters and running your HR function more like a profit center?  As your business grows, there are certain people measurements that will enable you to make decisions that effectively and efficiently develop your organization.

1.  Revenue Factor:  total organization revenue/# of full time employees

This is an important factor, especially for small businesses.  As a company looks to grow, be sure to have a firm grip on this number.  You’ll soon realize the benefit to adding sales people or productive staff over administrative and overhead personnel.

2.  Total labor as a percent of operating expenses:  total labor costs/total operating expenses

Understanding how much your labor is costing you is important to look at while beginning and growing your business.  Labor is most likely your largest expense, so it’s important to have a pulse on where your labor costs stand.  Be sure to pay attention to it.

3.  Quality of Hire:  average job performance scores/performance scores for all employees or # new hires promoted within period/all employees promoted within period.

When you’re a small or growing business, the quality of your hire means everything.  Being able to quantify this factor could be key for your business.  Understanding the quality of hire could also help you improve your consistency in hiring high quality candidates if you have complete, historical and detailed information on this topic.  Improving the quality you hire?  Priceless.

4.  Cost per hire:  advertising + headhunters + referral bonus + travel costs + interviewer time + relocation/number of hires

Most great entrepreneurs know that second to a million dollar idea, successful business requires rock star talent.  It’s also commonly known that acquiring this talent can be expensive.  Understanding your cost per hire may better position you to make the strategic hires necessary to move your organization forward.

5.  Turnover:  # of employees terminated/total # of full time employees

This metric is important in every organization, regardless of function, industry, size, etc.  It may be of particular benefit to separate “voluntary turnover” as well as “desirable turnover” from this factor.  This factor can help you better understand many things about your business including morale, culture, labor forecasting, etc.  If you calculate no other HR metric, be sure to know your turnover.

Having and understanding data, and making informed decisions based on data are what moves an organization forward.  Imagine if you could progress your people function above the competition?  Jackpot.  There a variety of other HR metrics an organization can follow (and should follow).  But, we’ll save these for another day and another post.  

Through HR’s Eyes: A Day in the Life

Navigating the hiring process is a tricky thing.  You have likely spent what feels like an eternity perfecting your resume and cover letter and tirelessly spent hours applying online.  You’re eager, and hopefully excited, but feel like you've been waiting a lifetime to hear something…..anything!  You may feel HR makes the process more difficult rather than better for you and wonder what they could be doing all day and why you haven’t heard anything.  Understanding what a typical day is like for an HR professional may help shed some light into the job seeking process for you.  Here’s a pretty typical day in the life of an HR professional:

8:00 – 9:00; Begin and plan the day

In today’s world, emails saturate our in-boxes (and also our time).  Typically, a significant portion of the morning is spent going through the emails that have built up and responding to internal clients.  Some matters an HR professional must respond to require deeper research or in depth decision making.  These items may require us to consult another party or take additional time to mull over issues that are less than cookie-cutter.  Most HR professionals have a variety of responsibilities and tasks they must complete.  This also requires significant planning to ensure proper time management which needs to be done early in the day.

9:00 – 10:00; Meetings

Like other business professionals, there are various stakeholders that require our regular attention and meetings are a common fact of life in most businesses.  Many of the meetings may also require substantial preparation on our part.  “People” matters are rarely black and white, and we dedicate time and resources to every decision and recommendation we make.

10:00 – 11:30; Paperwork

HR is at the core of much of the administrative work in an organization.  We spend a substantial portion of each day dedicated to our administrative and transactional responsibilities (FMLA, unemployment, worker’s compensation, employee and benefits paperwork, etc).  We’re always trying to become more efficient in this area to reduce this portion of our jobs, but it remains a necessary evil.

11:30 – 12:00; Emails

We’re back to the emails in an attempt to make the evening load easier to manage.

12:00 – 12:30; Lunch

You’ll find many HR professionals eating lunch alone at their desk.  This is for a variety of reasons.  It’s difficult for HR to regularly eat with employees in other departments.  We’re often privy to information that can inadvertently put us in uncomfortable situations with other employees.  Additionally, it is HR’s job to remain an unbiased and consistent presence in the organization. 

12:30 – 3:00; Recruiting 

We will spend a significant portion of our day dedicated to finding talent.  Despite how plentiful you think the candidate pool is for a position, I guarantee that finding qualified people for that job is not easy.  Whether the qualifications high or low, it’s always difficult to find great people.  Please keep in mind that during this time, we write job descriptions, post jobs, review resumes, conduct interviews, administer testing, run background checks, and send offer & rejection letters.  That’s a heck of a lot to do in a relatively short amount of time.

3:00 – 3:30; Vendor communication

In HR, people are regularly trying to sell you things (consultancy, benefits, technology, staffing services, etc).  Many of these conversations include HR politely declining, as most products and services are a dream and a tease on our tight budgets.  Managing vendor relationships is an important part of our jobs.

3:30 – 4:30; Manager/Employee Advising

Our advice is regularly sought from employees about personal matters as related to their job.  In the past I’ve had a “therapy chair” available in HR for these types of conversations.  Additionally, managers regularly seek our guidance relating to employment matters.  We must be available to speak with both about their respective matters.  After all, in HR, your most regular clients are internal.  

4:30 – 5:30; Wrap Up

Like other professionals, our day often requires us to wind down and wrap up.  There are often outstanding items that we must address before the end of the day.  People matters can rarely “wait until tomorrow”, and this is often the time we’re working very hard behind the scenes to keep things running smoothly for all employees.

Understanding what an HR professional’s day is like may help you gain some insight as you deal with HR through the hiring process.  I encourage you to remain positive and persistent and to aim high!

High Deductible Health Plans (with an HSA) for Beginners

A trend in group health insurance that’s gained leaping popularity in the last several years are Health Savings Account (HSA) plans or high deductible health plans (HDHP).  This article will give you a foundation for understanding HDHP’s with HSA’s and arm you with the facts to determine if this type of group health insurance plan is right for your organization.

So, how exactly does a HDHP with an HSA work?  In this type of plan, employees typically have a large deductible, often more than twice the amount in deductible of a traditional PPO plan.   In a HDHP, monthly premiums are typically less than in traditional plans where there is a co-pay (sometimes substantial).  The lower premium saves both the employee and company money on premiums.  However, an employee is required to then pay out of pocket for medical services and prescriptions in full until they reach their full deductible amount.  However, any funds paid toward medical care or prescriptions should be paid out of the Health Savings Account that is set up in accordance with the HDHP.  HSA accounts typically assign account holders a credit/debit card that employees should use for any medical related expenses.  On an HSA account, medical services can typically be purchased tax free. 

So you may ask how the account is funded and how can the purchases be tax free?  Well, an employer typically makes a contribution to the HSA account on behalf of the employee.  The amount typically ranges from 6 to 20% of the deductible, but is up to the employer’s discretion.  Employees will typically contribute to their HSA’s as well by payroll deduction.  If employees know they have an expensive medical event, they can increase their contributions to cover the costs.  Additionally, if an expensive emergency happens, an employee can reimburse themselves from their HSA account to cover the costs with the tax benefits.

A HDHP with an HSA is uncomfortable for some individuals to switch to, especially if they are used to having something like a $20 co-pay for their doctor visits.  This type of health plan requires employees to spend their health care dollars more wisely and to become educated health care consumers (if they want to avoid high costs).  You can think of a HDHP more like car insurance.  It’s there to help you in the event of an emergency, but is not meant for you to be dependent on it for things like oil changes or routine maintenance.  Some organizations who have this type of plan offer services through their HR department to help employees find the most cost effective services for certain procedures.  However, if you are willing to promote a culture of wellness and educate your employees on spending their health care dollars wisely, this type of plan could be cost saving and good fit for your business.

5 Things to Remember When It Comes to Employee Files

Proper recordkeeping is a requirement for all employers and for good reasons.   It makes good business sense to have accurate information on hand and organized when you want to use it and most business owners and managers will eventually encounter the need to produce documentation about employee performance and work history.  Having the proper records is vital when the need presents itself.  Below is a list of some requirements and helpful hints to remember when it comes to employee personnel files.

1. Employee files should be kept safe in a lockable cabinet or area to protect sensitive personal information.  Access to information about employees should be strictly limited to those people in your business with a need to use the information in their jobs.
2. I-9 forms should not be kept in an employee’s file.  Rather, I-9’s should be organized together in a separate space that is convenient in the event of an I-9 audit.  Many government agencies are authorized to inspect your I-9 forms if they visit your work location. If you have them in your personnel files, the government gets to go through your personnel files. Anything they find there can raise additional questions or issues. In a separate I-9 file, you have the ability to hand the inspecting agent one file folder with all your I-9 forms. No problems can arise from that if you have completed all your I-9s as required. Be sure that you use the current version of the I-9 Form. Using an outdated version can cost you $1,000 per document. Errors on the form can cost you up to $1,000 each as well.
3. Doctor’s notes, as well as benefit and 401K information should also be kept separate from an employee’s general file.  The federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) requires that any type of personal medical information should be kept confidential and not be part of an employee’s file.  Examples of documents that should be removed from employee personnel files include:
   • Health insurance application form
   • Life insurance application form
   • Request for medical leave of absence regardless of reason
   • Personal accident reports
   • Workers' compensation report of injury or illness
   • OSHA injury and illness reports
   • Any other form or document which contains private medical information for a specific employee.
4. Some sample items that should be kept in an employee file include:
   •  Application/resume
   • Tax and payroll information (garnishments, deduction authorizations, etc)
   • Signed policies and/or handbook
   • Disciplinary documentation
   • Criminal background check
   • Employment offer letter
   • Employment agency agreement if hired through an agency
   • Employee status change documentation
   • Exit interviews
   • Training and development records/documentation
5. Perform regular self audits of your record keeping processes to ensure they remain compliant.  Part of being a professional business manager is keeping quality professional records. Take a look at your organization's practices and find out if you have what you need. If not, plan to get it. It will save you trouble in the long run.

Be sure to also understand your state laws surrounding employee documentation as additional laws may apply.

Excerpts taken from a great article in The Management Advantage.

HR Lessons from the 2012 Super Bowl

Happy Super Bowl 2012 from Indianapolis!

I am from the Midwest and currently live in Indianapolis, IN.  Here in Indy, the Colts are the center of a lot of conversation.  If you follow football, even remotely, you may know that the Colts had a difficult season this year and had the worst record among NFL teams.  This is particularly disappointing for Colts fans since the Colts have had a decent record for the past several years, even securing a couple invitations to the Super Bowl.

How is this related to HR?  I promise I have a point.

Peyton Manning has been central to the Colts’ success over the last decade.  This year, he suffered an injury, and left the Colts to succeed without his contributions.  In HR, there is always an emphasis on talent and recruiting rock star performers (hi-po’s or high potential employees).  Peyton is a hi-po, and yes, a rock star.  However, the Colts failed to surround Peyton with other rock star performers, and without his presence on the field, the team fell apart. 

The Colts can teach HR professionals an important lesson.  It’s simply not enough to attract one great leader.  You must surround great leaders with other rock star, high potential employees.  A team of one will rarely go as far as an entire team staffed with high potential employees.  Make your selections carefully.  Wrong hires not only cost money, but they could be the difference between growth, plateau, or even decline for your business (or sports team).

Welcome to the CatapultHR Blog!

Welcome to the CatapultHR blog!

It is the mission of CatapultHR to provide human capital and HR related information, discussions, and solutions for entrepreneurial and technology focused leaders.

My name is Rachel Rush, PHR and as the author of CatapultHR, I bring a variety of HR experiences in the technology, education and service industries.   I am passionate about the advancement of HR as a value added strategic business partner and hope that what you find on this blog helps you move your HR capabilities and performance closer to where you know they are capable of being.

I welcome your comments and insights.  You can also follow me on Twitter @CatapultHR.  Welcome and stay tuned for upcoming blog posts!