Job Requisitions are passé

In almost every company, I have encountered the ubiquitous Job Requisition. In most cases this requisition is a form that the hiring manager or someone in human resources completes to obtain permission to begin the recruiting process. This document often reflects salary information that is supposedly confidential but becomes public when the requisition is mishandled and ends up in the hands of the wrong employee. Additionally, once the recruitment process is activated, it often becomes apparent that the approved salary is not high enough so another approval process is put in motion to raise the wages that the employer is willing to pay for that position.

I won’t belabor you on how ineffective and inefficient the job requisition is since if you use one, you already know. However, I am prepared to suggest a series of alternatives that will not only free the organization from this burdensome process but will significantly improve the hiring process.

First of all, when most firms conduct their annual budgeting ritual, the firm’s headcount, both current and future employees are accounted for. This includes both positions and salaries. Therefore, it should be easy to extrapolate the expected vacancies from the budget document. Additionally, using past trends as a guideline the HR function should be able to predict the level of turnover for the most common positions within the company. This combination of information should give good guidance on what positions will need to be filled in the upcoming year. Using only this data as a forecast, the hiring managers should immediately begin recruiting to fill these positions with no need to activate a requisition. Additionally, if the company is really interested in acquiring talent to fill their vacancies, then it should not matter if that talent is discovered and hired in January at the begining of the year, or in December at the end of the year, as long as the headcount does not exceed the budget projected for that year.

If a position becomes available that was not considered in the budget or in the turnover calculations, the hiring manager should still feel free to initiate a search. However, at the same time the hiring manger should inform the manager of their plans. Once informed, if the manager does not veto filling the vacancy, the hiring manager continues to pursue qualified candidates rather than the old way of doing nothing, until the requisition was approved.

The advantages of this approach include:

1.      Sourcing can begin early in the year and as a result the recruiting activities can better managed without the pressure to fill an empty seat

2.      With more recruiting time invested in the process the greater are the chances that the more qualified candidates become available

3.      The process supports delegation and conveys trust in the hiring manager and the support supplied by the HR department

4.      The senior manager maintains their veto power and can suspend or cancel the recruiting assessment anytime they wish, especially if the process requires their approval before an offer is extended.

5.      Over time, the headcount forecast and the budgeting process becomes more and more accurate and beneficial to the organization  

6.      This process opens the door to the possibility of a rolling 12 month employment forecast that enables management to develop a workforceplan which can add productivity and efficiency to the firm

7.      Most importantly this suggested approach eliminates a bureaucratic requirement that was designed to enforce unreasonable controls upon the staffing process and managers are relieved from the burden of an undesirable and outdated business practice.

From Michael Salisbury with the Human Resource Alliance (HRA) at www.hralliance.biz

How to Solve the Mystery of the Two HRs Part 4

If you have been following along, you now know that my contention is that there are two HRs. The first HR is focused on the administrative functions that support operational tasks such as staffing, benefits, training, recordkeeping, and legal compliance. The second HR, is focused on making the business better, faster, and cheaper. However, to complicate matters there is actually a third HR, one that is hidden and rarely discussed.

Arguably, the third HR is comprised of two elements. The first element is the contingent work force that supports the organization such as temporary staff, independent contractors, consultants, and the people working on your firm’s site that work for someone else. This last group can include the UPS delivery driver as well as the gaggle of IT technicians actively implementing a new software application for the organization.

The second element consists of the vendors who supply HR related services to the company such as; background checks, legalrepresentation, compensation programs, benefits, training, payroll, etc. To keep from getting too complicated, this assessment ignores staff employed by these and other service providers, since only rarely do they come into contact with the firm, “on location” as it were.

Therefore, you now perceive that in addition to having responsibility for the organization’s employees, HR has the ability to influence a significant representation of contingent workers. Furthermore, not only is HR expected to deliver services and solutions utilizing the staff who report to HR, but the HR function is also accountable for the delivery of HR services (benefits for example) that are performed by people who are not employees.

This view suggests that HR’s domain can be viewed as including:

      1.      HR administrative work performed by the HR staff
      2.      HR administrative work performed by the HR vendors
      3.      HR’s responsibility for a sub set of the contingent workforce
      4.      HR’s added value contribution to the organization from a better faster, cheaper perspective
      5.      HR service providers who perform work that is expected to contribute added value to the
              organization

I hope this assessment has solved the mystery of the two HRs for you and provides a fresh and practical framework from which to view the HR function. With this new framework we can now structure the HR function so that both the HR administrative needs and HR’s opportunities for contributions to the firm, can be maximized.

Please note that this structure may have  more value for a larger organization. However, even if the firm has only one HR Manager, this structure can still apply and may lead to significant opportunities for that HR Manager to demonstrate cotributions. As we move forward in this blog, we will uncover a series of opportunities for HR professional at any size company, to make valuable and appreciated business contributions.

From Michael Salisbury with the Human Resource Alliance (HRA) at www.hralliance.biz

Do you have a future in HR

If you are a talented HR professional, the following edited news story written by Michelle V. Rafter in this month’s electronic edition of Workforce Magazine, may be disconcerting.

Before September, Jacqueline Reses had never formally worked in human resources, let alone managed the people side of a Fortune 500 company.

Today, Reses, 42, holds what is arguably the most high-profile HR job in the country. Yahoo Inc. CEO Marissa Mayer recently named the former private equity partner executive vice president of people and development.

Reses’ mission: to reboot Yahoo’s corporate culture and, by association, its financial footing by revamping its workforce. She takes over for longtime HR head David Windley who Mayer replaced along with several other top HR executives as part of a wholesale regime change meant to right the struggling tech giant.

Even before Reses was onboard, Mayer was making moves to win back the hearts and minds of Yahoo employees by reinstating perks such as free food at its Sunnyvale, California, headquarters. To succeed, observers say Reses will need to overhaul an outdated compensation structure that has led to an exodus of top talent for better-paying opportunities at Yahoo’s Silicon Valley competitors. There’s also speculation that Yahoo’s workforce revamp could include more job cuts.

Though Reses has no formal HR training, she’s not a stranger to workforce issues. Before joining Yahoo, she spent 10 years at the New York-based private equity firm Apax Partners, where she was involved in the firm’s recruiting and training, according to TechCrunch.

So do you think that Yahoo’s HR related actions will be properly guided by Reses? For a sample perspective let’s review the following:

·       Is she aware of the WARN Act and its implications as the firm faces layoffs?

·       Does she know anything about job factor analysis as she begins to address compensation?

·       Does she know anything about the Lilly Ledbetter law?

·       Does she feel that free food actually improves productivity?

·       How familiar is she with how to manage the rising cost of insured employee benefit programs?

·       What experience does she have with employee litigation matters?

·       Since she has virtually no people supervision experience, how is she expected to advise  management on how to deal with the various employee issues that are bound to surface in such a turbulent environment?

·       Does she have experience with employee onboarding, integrating employees due to acquisitions, employee engagement programs, etc…?

But there is yet hope for the dedicated HR professional. Maybe Mayer will promote one to be a private equity partner. I understand there is a vacancy at Apax.

From Michael Salisbury with the Human Resource Alliance (HRA) at www.hralliance.biz

 

The Mystery of 2 HRs part 3

Ok! By now you may be concerned because I compared the work of HR to that of a receptionist. If you feel this way I don’t blame you. The comparison suggests the HR function is of little merit. However, many jobs don’t offer immediate benefit and yet they are important and even necessary.

For example, I recently met with a nationally known economist who prided himself on the accuracy and objectivity of his observations. In fact, during his presentation he went out of his way to point out that he was not influenced by one political party over the other. Rather he let the facts speak for themselves and that was the basis of his opinions and recommendations.

Nevertheless, in a private conversation, he expressed frustration over the fact that both political parties as well as current and past government policy makers, consistently sought out his advice, but routinely failed to adopt his positions. Instead, they were attracted to different and misguided courses of action.

So, is this economist, who for arguments sake is correct, but not supported, of questionable worth? Probably not. He offers a point of view that is needed and respected, just not adapted. However, for him to add true value, his ideas would need to be implemented and followed.

This is the case for the typical Human Resource function. The work that the staff performs may be needed, but it does not distinguish or advance the business. This then is the first HR, the HR department dedicated to completing the tasks demanded by management. Any HR leader that is focused on the first HR will never understand how to embrace the second HR which, targets adding business value to the organization, not just completing tasks.

Next blog: How to solve the Mystery of the Two HRs

Solving the Mystery of Two HRs Part 2

My contention is that there are two HRs, but let me try to explain. There are a number of sub functions that are frequently associated with the HR function. For example, Recruiting, EmployeeBenefits, Compensation, Recordkeeping, Training, Payroll, Safety, Workers Compensation, and the like. Most people in HR are busy working at tasks associated with these sub functions.

This work may be needed to be done but such tasks generally do not add value to the business. For example, processing I9 documents correctly does not add value. The work may be needed, since the company does not want to risk a fine if they are out of compliance, but even if the work is done perfectly, it is difficult to demonstrate that I9 administrative work contributes to the success of the business. However, maybe we should clarify what we mean by contributions.  

You may be familiar with the phrase better, faster, cheaper. These words describe in a concise fashion, what comprises business value. However, it is not enough for a task to be performed better, faster, or cheaper. The improvement must be appreciated by senior management for it to be a contributor to success. So if HR finds a way to keep records more accurately or payroll figures out how to calculate vacation balances faster I doubt if senior management would give these improvements much attention since they do not significantly contribute business value. And besides, aren’t all employees expected to improve how they perform their job as a matter of course?

Now I think you may be beginning to grasp the problem. Much of what HR does or is involved in today is administratively oriented or support work. These activities tend not to have a direct correlation to the success of the business.  So, no matter how well they are performed, the business value is not well recognized. As a result, the HR staff, who may be good and loyal employees, are not perceived as business contributors. Furthermore, the HR department is considered a cost center that does not add significant value to the business.

Forgive me, but a comparison of the traditional HR function to that of a receptionist can be made. Both HR and the receptionist needs to be, helpful and efficient. However, does any business reward a receptionist as if they offer significant business value?

Next up, Further advances on the Mystery of Two HRs and how HR can add value and be recognized for doing so.

From Michael Salisbury with the Human Resource Alliance (HRA) at www.hralliance.biz

The Mystery of Two HR's

Over the course of my career I have concluded that when the subject of HR comes up everyone has a different perspective or what that acronym means. Most people recognize that HR refers to Human Resources, but what is human resources? However, if I say I work in Engineering, Sales, or Accounting there is a generally common understanding of what I do. Other than maybe staffing, benefit adminstration, or payroll at times, most people don’t have a clue what HR does or is supposed to do and neither do the people who work in HR.

What, how can this be? How can I claim that those in HR do not know what they are supposed to do? In some cases they have been doing the job for many years and no one complained, people were happy with their work and they were recognized and appreciated. How can this be? By now you may think I am crazy, but just follow my thinking for a few more minutes and let’s see if we can solve the Mystery of Two HRs.

My contention is that work is divided into two categories. The first is administrative and the second is contributory. Administrative work is the activities that occur within an organization to accomplish a task. Unfortunately, completing a task may or may not contribute to the company’s needs. For example, if a manager labors to complete an assigned weekly report, that no one acts upon or even reads, then that task is not worthwhile. However, even if management does act on the information in the report, the fact that the report was compiled does not in itself contribute value. Only the action by management can possibly create value and there is no guarantee that the action that was initiated by the report will lead to results of value. Nevertheless, innumerable reports are generated in organizations on a daily basis, many of which are not read or acted upon. Now that we have made this point, what does this have to do with HR and how does it help to solve the mystery that we are working on?

Most of what HR does fails to create value. I contend that even the recruiting function does not offer direct value. Staffing is a task that if done well, will lead a hiring manager to choose a productive hire. However, hiring managers are rarely trained to identify promising candidates. As a result, there are numerous examples where the hiring manger employs a less than ideal candidate for a host of different reasons.

OK, now that I have your attention, I hope you will tune into the next series of blogs, where I expound upon this topic as we try to solve the Mystery of Two HRs.

From Michael Salisbury with the Human Resource Alliance (HRA) at www.hralliance.biz

Onboarding

Onboarding is a yawner. Few line executives are interested in the subject and even fewer are going to give HR credit for investing in this segment of the recruiting process.          

Wait a minute! I thought the person was an employee by the time they were participating in HR’s onboarding experience, so why is this step a part of the staffing process and what is onboarding anyway. 

My point of view is that onboarding begins when the employee is informed about anything other than their start date and base earnings. Additionally, it ends once the employee has all of their administrative needs satisfied (e.g. properly enrolled in benefits) and ready access to the tools and internal staff they need to perform their work in a productive fashion.  

HR has a tendency to view the new employee orientation, if there is one, as the sub process that encompasses their responsibilities with respect to onboarding. However, if HR is going to accept responsibility for loweringturnover, increasing employee productivity, and enhancing both employee satisfaction and engagement then they need to do more. 

However, they don’t have to go it alone nor should they. If what I am about to suggest is not welcomed by your organization and you have to do all the work, it is not worth doing. You need to share the following responsibility, both the development of the process and the execution, with managers who get it and are willing to be of assistance. Otherwise you will be wasting your time. 

OK so what needs to be done? Here is a list to start with but I am sure you can add and edit the list to fit your company’s circumstances:

1.     Ensure the new employee understands their benefits and the benefit choices they and their family have (e.g. do they know if there is a credit union and how to sign up?)

2.     Keep track of how sufficient the process is for benefit enrollment. Are people signing up on time without any corrections (this could be used as a measure of the onboarding’s performance)?

3.     Ensure that new hires show up at the orientation with all of their required paperwork and how many leave with the necessary paperwork fully completed (“You left your passport at home again”, now what, since were past three days of employment and the I9 can’t be certified?)

4.     Make a check list of all the forms and documents that the new hire should be receiving, returning and when based on legal regulations and company expectations.

5.     What is very important is that a simple process be put into place that ensures that the employee feels respected and is welcomed to the firm. So depending upon the needs and the level of the person, the following items should be addressed by their first day of work if possible can include:

a.      Work space arrangements and office equipment and suhttp://www.hralliance.bizpplies

b.     Email set up

c.      Business cards

d.     Payroll notified with salary and bonus approvals documented and entered into the appropriate systems

e.      Phone (both desk and mobile) set up and presented

f.      Computer and printing procedures plus a personal introduction to the help desk, commonly used and available applications, and possibly a tour of the firm’s intranet

g.     A discussion about the company internet, computer, and phone policies and restrictions

h.     Introductions to key fellow staffers and security procedures

i.       A schedule of meet and greet luncheons and meetings with important coworkers

j.       A list of expectations from the boss for the next 90 days

k.     A schedule of department and appropriate company meetings, how meetings are arranged and who to invite

l.       A list of company contacts, email addresses, phone numbers, titles, reporting relationships, etc.

m.   A statement of the company mission, vision, strategy, goals and objectives and how this all relates to the job the person was hired to do.

n.     If a manager, how do they accesses employee files and who in HR, marketing, operations, finance etc. is their go to contact?

o.     What element of the onboarding process can be automated with welcome and instructional videos, automated forms (that feed directly into the HRIS and payroll system once approved), updated org charts, employee manuals, benefit information, etc. all of which can be available to the new employee prior to the first day or work.

p.     Can the orientation process be standardized, regardless of where the employee reports to work?

Well I have only touched the surface but you get the idea. It takes a lot to prepare the employee for their new assignment and the more complete, automated, and yet personal your organization’s approach the greater the chances are that the employee will remain excited and productive in their new career opportunity.

If you do this right, you may even be prepared when someone in marketing calls up to notify you for the first time, “Hey, our new Sales Director starts tomorrow, are we all ready for her”.

 
           From Michael Salisbury with the Human Resource Alliance (HRA) at www.hralliance.biz