Author: Site Staff

Buildnet Inc., based in Durham, North Carolina is a leading provider of connectivity solutions for each link in the construction industry, enabling the right products and services to be delivered to the right places at the right times and at the lowest possible cost. The company’s annual revenues exceed $75 million and it services 900 employees across the country. When Buildnet searched for the best in an Internet-based human resources information system, it found what it was looking for in NuView’s MyHRIS.

“We have an outstanding reputation for creating a community of information among manufacturers, distributors, dealers, and contractors,” says David Russo, Buildnet executive vice president for human resources. “To use anything less than Web-based software in HR would be out of sync with our company and what we represent.”

MyHRIS is an Internet-based human resources information system that includes complete HR and benefits administration, applicant tracking, succession planning, and training administration modules. It features the flexibility of selecting the precise mix of products and services that are right for any enterprise and a preferred means of self-service access for both employees and managers.

With MyHRIS, there’s no need for the installation and support of special hardware or software, so companies save all of the costs associated with building and maintaining an in-house information system. And, because it is Web-native, meaning that users can log on from any computer with a Web browser, it offers unlimited access, day or night, from any location worldwide. This unlimited access is a distinct advantage for multi-site organizations like Buildnet.

“MyHRIS gave us several solutions for our HR challenges,” says Russo. It connects critical data in an easily accessible format to HR practitioners and to management in the company, provides employees self-service and access to demographic data, and ensures that personnel in distant locations can obtain the information they need to process HR workflow instantly.”

This was Buildnet’s first use of Web-based HR software. “Our old system just wasn’t working. We had a patchwork of dissimilar systems with little functionality. We had to do reports by hand that cost us time and sometimes accuracy.”

Russo says the ease and technology, the implementation schedule, and the people he dealt with at NuView first sold him on MyHRIS. After using it over the past few weeks, he’s satisfied that he made the right choice.

“Interfacing with payroll went smoothly and our HR people are pleased. I expect a lot of efficiencies with this system,” says Russo.

NuView is dedicated to providing organizations, large and small, with the most useful and cost-effective human resources information system solutions possible. It achieves this by combining user-friendly software with state-of-the-art technology.

NuView’s software and project managers provide HR professionals not only with HR basics, but also provide needs analysts for the company and streamline HR processes for the new economy.

NuView’s goal is to provide HRIS solutions made simple, and to anticipate what’s needed before the industry even asks for it. NuView is determined to find ways to meet the demands of busy HR departments.

Human resources wants to free itself from the paper chains and participate in their companies’ strategic decision-making.With its powerful capabilities for recruiting and managing people, the Internet can help. Workforce asked leaders in HR’s Internetrevolution to talk about the solutions that can move HR to the next level.

		Randy Cooper
		Chief Executive Officer/Founder – Opus Solutions
		Cooperfounded Opus Solutions in 1989. He has more than 15 years of experience inthe IT software field, with emphasis on HR, payroll, and benefits systems.Opus provides e-volution®, a suite of Web-based HR management tools thatincludes the HRMS engine used by 20 Fortune 100 companies.
		MartyFahey
		President,Chief Executive Officer – Webhire
		MartyFahey joined Webhire in 1996, as chief operating officer. He becamepresident in 1997, and CEO in 1999. Prior to Webhire, Fahey was theco-founder and CEO of Vertigo Development Group, Inc., and was among thefirst 30 employees at Lotus Development.
		JeffKoven
		VicePresident, Marketing- Cyborg Systems, Inc.
		AsVP of marketing, Jeff Koven is responsible for corporate marketingcommunications, customer relations, product management, and sales support.He focuses on identifying changes within the business world, and theirimpact on today’s HR and payroll requirements.
		DonRamer
		CEO- RecruitUSA Inc.
		DonRamer has more than 27 years of experience in the recruitment industry. Asa founder and key manager at several employment management consultingfirms, he specialized in change management and cost reduction throughalternative recruitment strategies and resources.
		JimE. Spoor
		President/CEO- SPECTRUM
		Priorto forming SPECTRUM in 1984, Spoor had a very successful 25-year humanresource career, including a broad range of human resources experiencewith executive-level responsibility for global HR operations.
		LouisTetu
		Chairmanand Chief Executive officer- Recruitsoft
		Priorto joining Recruitsoft, Mr. Tetu founded Berclain Group, Inc., a globalprovider of supply chain management solutions, acquired by Baan in 1996.He was president of the company from 1989 until his departure to headRecruitsoft.
		BillWarren
		Presidentand CEO – Wowemployers
		Warrenspent more than 22 years in recruiting and human resource management withRockwell International and General Foods Corporation before founding thefirst Internet employment site, Online Career Center (OCC).

The Internet is continuing to revolutionize business. How does this technologydirectly affect HR practices?

 

Randy Cooper: Internet technology empowers the entire business andemphasizes the strategic importance of an organization’s HR function. Itallows organizations to distribute the opportunity and responsibility ofacting on HR practices beyond the HR department. Moving the processes andinformation closer to the managers, supervisors, and even front-line employeesallows them to make better decisions faster. This also gives the traditionalHR department the ability to focus on strategic information and decisions.

Don Ramer: The Internet has made HR professionals “larger thanlife.” Job-posting technologies allow
recruiters to reach a much higher portion of qualified candidates and bettermanage applicant tracking. Proper technologies can triple the effectivenessof staffing managers. The effect also can be detrimental: HR practitionersmust beware of “vaporware” applications that are not solutions,but hindrances to their work styles due to missing capabilities, poor workflow, or other inefficiencies.

Jeff Koven: The Internet brings a continuing promise for an e-businesscommunity through which you can expand the services you offer to your employeesby providing links to other services (i.e., benefits providers, health-careadvice/providers, travel services, money-management services, etc.). Theresult is that HR practices are much less administrative and far more strategic.HR will no longer be the “middleman” in transactions. Instead,employees will have direct access to relevant outside service providers.

Bill Warren: When I founded the Internet’s first job board in 1992,no one really knew the impact the Internet would have on our industry. Theintroduction of e-mail, online networking, and job boards has dramaticallyimpacted the daily routine of recruiters. Moving from the “media”model to the “relationship” model, the Internet has streamlinedprocesses, decreased recruiting costs, and reduced the time-to-fill. Thishas been accomplished through the implementation of human capital managementsystems.

Marty Fahey: The Internet has dramatically improved the speed andquality at which HR professionals recruit. It’s also proven to be the mostefficient way to locate, evaluate, identify, and qualify job candidates.HR organizations have quick and direct access to thousands of potentialadvertising locations, each with its own constituency of candidates. Today,it is essential for HR organizations to focus on the applicant experience,with timely responses and frequent touch. By doing so, HR will extend itsrecruiting network and stand out among the competition for talent.

Jim E. Spoor: For years, HR practices have centered on paper, filingcabinets, and paper shuffling. Now the paper can be eliminated, the filingcabinets emptied, and the paper shuffling reduced. Employees and managersinteract directly with their company’s HRIS by having the access to performdata entry themselves. This is the re-engineering that people talked aboutin the ’80s and ’90s, but in the 2000s, it’s a reality.

Louis Tetu: The Internet enables the complete re-engineering ofthe recruiting process for large, global corporations. Optimizing and automatingthe recruiting supply chain brings significant value and bottom-line benefitsto major corporations. Through the traditional recruiting method, the candidate,or the supply side, blindly mailed his or her résumé to therecruiter, to the demand side, without knowing or understanding the demandsof the recruiter. Online recruiting bridges supply and demand by permittingshared knowledge between the candidate and recruiter.

What are the advantages of an ASP solution versus traditional managementsoftware as it relates to different HR functions, such as HRMS, hiring management,benefits, etc.?

 

Louis Tetu: Contrary to what many believe, ASPs are extremely flexibleand made to fit a company’s specific needs. The ASP model is more robustthan traditional software-delivery methods, and offers a variety of optionsthat can be tailored to fit each company’s needs. Once a company implementsan ASP solution, the vendor manages the software so that the only requirementof the company is a Web browser. The software is installed, maintained,and hosted by the vendor.

Marty Fahey: ASPs provide the most up-to-date technologies deliveredover the Internet at a predictable monthly fee, with seamless updates tothe application and an intuitive user interface that demands little training.The ASP requires only minimal implementation time — with Webhire solutionsyou can be up and running within days. The ASP service means the best customerexperience, because it is supported, managed, and tuned — 7x24x365 — bydedicated experts.

Randy Cooper: The largest advantage is reduced, predictable costsfor the management of the system. In the case of Opus Solutions’ e-volution®service, the advantage is a very powerful system that many companies couldnot afford otherwise. Many ASPs as part of the subscription also provideregular updates to the solution’s functionality “behind the scenes”for no additional cost. Additionally, because the ASP takes care of thesystem, the infrastructure, and other delivery factors, the client is ableto concentrate on taking care of business, not computer systems.

Jeff Koven: The primary advantage of an ASP solution is that theoperational functions of an HRMS are outsourced. The applications are hostedand maintained without assistance required from the company itself. As aresult, users have the ability to function as true HR and payroll professionals,rather than IT specialists. In terms of hiring management and other benefits,the advantage of an ASP is that in many cases it offers additional featuresand functionality that would be too cost-prohibitive to bring in-house.

Bill Warren: Human resources has commonly been known for being thelast department in an organization to receive current technology and thesupport needed for implementation and integration. While this trend is changing,the fact remains that technology is vital for HR to remain competitive inthe war for talent. An ASP offers end-users the ability to use the applicationfrom any Internet-ready PC, and also a company does not have the enormouscapital expenditure for the hardware and development resources.

What are the opportunities for HR in realizing significant cost savingsthrough Internet technologies?

 

Jim E. Spoor: Cost savings is only part of the picture. Sure, thereare actual savings as a result of employee self service and manager selfservice. However, the real gain is being able to share information and intelligenceproficiently, being able to communicate effectively, and being able to handleroutine transactions faster, better, and at a lower cost. Basically, Internettechnologies are “super-charging” the HR function and making itpossible to really focus on strategic issues.

Randy Cooper: There are two major cost savings. First, by givingaccess to the day-to-day information and processes to the front-line managementand employees, an organization’s HR department can concentrate on issuesthat are more specialized as well as strategic. The department has moretime to focus on the strategically important decisions that affect the company’sbottom line. Second, people who know the system and the infrastructure handledevelopment and maintenance of the technology.

Louis Tetu: The average cost-per-hire in North America is approximately$6,000, and many say it approaches $10,000. With 30 million people changingjobs each year in North America, that equates to about $180 billion spenton hiring. By automating the process, a corporation can save tens of millionsof dollars per year. This is all enabled by allowing the recruiter and thehiring manager to spend more “face time” with candidates, ensuringa cultural fit, skills fit, and motivation to put those skills to work forthe corporation.

Don Ramer: The number one opportunity: consolidating workload. Whilethe burden of administrative duties can cripple HR departments, the Internetoffers many services that multi-task so you don’t have to. Seek only Internettechnologies that integrate well within your system, perform multiple capabilities,and provide excellent customer service — thereby consolidating your paperwork,billing, and time. Productivity will rise and administrative costs willlessen.

Are there specific types of Internet solutions you would recommend thatmight work best depending on company size?

 

Jeff Koven: I would recommend self-service solutions that make useof Internet technology. These solutions have high payback in the areas ofbenefits enrollment and pay-stub distribution. However, the cost savingsaren’t as evident within smaller-sized companies. Small companies shouldbe looking for out-of-the-box solutions that provide extra services withouta great deal of overhead (i.e., updating/viewing personal information, onlinehandbooks, payroll forms, etc.).

What is the greatest impact that the Internet has had on HR with regardto time savings and time management efficiencies?

 

Marty Fahey: The Internet allows a real-time connection to information,offering universal, instant access to data from anywhere in the world. HRorganizations have a direct link to candidates all over the Internet, andin turn are able to find the very best people, as quickly as possible, andat the least possible cost. In general, the Internet has reduced the averagetime-to-fill by as much as 60 percent for many companies. In terms of cost-per-hire,the Internet has lowered recruiting costs dramatically due to reductionsin print advertising and recruiting fees.

Don Ramer: Where are those people who eight years ago said the Internet’sefficiencies would shrink our workweeks to 32 hours? It’s an unrealizedpromise, but what the Internet has done is prevent HR professionals’ workweeksfrom exploding to 50+ hours, thanks to the research capabilities, news services,data storage, ASPs, and other tools that have emerged as the demands onHR professionals’ time have increased.

Jeff Koven: The greatest impact the Internet has had on HR is inthe area of self-service. It has offloaded a great administrative burdenfrom HR, and put responsibility in the hands of the people that know best,the employees themselves. The successful rollout of self-service applicationsresults not only in time and cost savings, but also in information thatis more accurate and employees that truly feel empowered.

Jim E. Spoor: Getting more accomplished faster and better is whatit is all about in the Internet era. Questions are dealt with and answeredquickly. Recommendations are routed, approved, and processed in secondswithout any paper. The “administrivia” is becoming less of a factorevery day. HR professionals have shaken loose from the standard work scheduleand are getting things done on a true 24X7 basis, and they are happier andmore gratified doing it.

What do you see as the newest HR product and service developments thatwill maximize productivity for HR on the Internet?

 

Jim E. Spoor: Mobility is the next major leap. True anywhere, anytimeaccess and interaction is on the doorstep right now. Powerful wireless handhelddevices, some with their own built-in phone and pager functionality as wellas full computing power, are now making full accessibility a reality. Truevoice interaction with the underlying systems, not just the old IVR, willallow users to fully bypass the keyboard. Data and reports will be displayedon voice request.

Bill Warren: Total integration is the future for Internet-basedrecruiting tools. Because of fragmented HR service offerings, many companiesrequire multiple vendors to accomplish their requisition-to-hire process.In the ideal world, a company should be able to work with one vendor partnerand have the ability to obtain the various services to attract, retain,test, screen, and manage the entire candidate relationship from the recruiter’sdesktop. This will be the future of HR technology to maximize productivity.

How can HR be poised to take advantage of these changes and developments?

 

Marty Fahey: The Internet has driven a fundamental change in theworld of corporate recruiting. People will always continue to make a company’shiring decisions; however, HR professionals must position themselves astechnological innovators and integrate the Internet into their recruitingprocess. Applying leading Internet technology to recruiter know-how resultsin shorter hiring times, reduced hiring costs, and improved overall competitivepositioning.

What are the top five questions you would advise companies to ask whenresearching Internet-related HR products and services?

 

Louis Tetu:

1. Whether the vendor will investigate, analyze, and improve the company’shiring process or simply sell a software package.

2. Do the company’s strategies converge with those of the vendor downthe road?

3. References from vendors need to be investigated before making a decision,as they are an excellent way to ask all questions and get honest feedbackfrom an unbiased source.

4. Review the financial stability of the vendor you are considering.

5. Scalability and security are essential.

Don Ramer: Focus on improving the quality of your department’s day:What will this technology do to make my department more intelligent? Whatwill this do to make my staff more nimble? What will this do to make mea better manager? What will this do to make HR even more essential to mycompany’s goals? And don’t forget to ask for references; then call the clientsnot offered as references.

Bill Warren:

1. What level of technical/customer support will you be provided in thebase price and when will it be available?

2. Is the software flexible to mirror my company’s internal processesor does it require customization?

3. Is redundancy provided to assure non-interrupted service? This includesdual-site redundancy for power, hardware, or circuit failures and naturaldisasters.

4. What measures are taken to assure data security and integrity?

5. Does the software offer scalability to match your company’s growthand changes?

Randy Cooper:

1. Can your solution adapt and grow with my business, or must I changemy business
   to fit your solution?

2. Can your solution integrate easily with my existing internal and third-partysystems?

3. Do you provide both technical and functional expertise with your solution?

4. Do you provide at least a 99.9 percent Service Level Agreement (SLA)?

5. How secure is your service? Does your privacy policy meet or exceedmy company’s policy?

Nearly 18 years ago, WorldatWork (formerly American Compensation Association) provided Rebecca Wood with the information that let her bridge the gap between her marketing training and her new job: handling compensation issues in the human resources department. “The director immediately signed me up for compensation courses through WorldatWork,” she says. And in return, down the road, WorldatWork, a professional association dedicated to knowledge leadership for total rewards professionals, signed her up as an instructor for its statistics classes, making good use of her MBA in operations research.

Ever since then, Wood and WorldatWork have continued to enhance and complement each other. WorldatWork offers the entry-level classes that Wood first took, as well as conferences, advanced classes, and seminars for seasoned executives, which delve deeply into specific subjects. Publications include a wealth of research reports, a journal, a newsletter, and frequent e-mailed updates.

“Rebecca’s success story is one we hear quite often, but also one we never tire of,” said Pat Llantino, CBP, CCP, director of Total Rewards for WorldatWork. “We strive to provide each of our members all of the resources and knowledge they need to be leaders in the profession.”

Wood has been an active member, moving from basic classes to in-depth courses and now is a reviewer for WorldatWork Journal. Simultaneously, she has grown from a basic compensation specialist to a consultant to her current position: director of compensation and benefits at AvalonBay Communities, a large real estate developer in Alexandria, Virginia.

“When I start new hires, I send them to WorldatWork courses and get them the relevant publications and books,” Wood says. That education obviously helps professionals working in the field, but it also enhances Wood’s reputation and helps her support needed projects. For example, “It’s hard for me to convince executives to make changes in compensation or benefits without educating them” about the field.

“We take great pride in providing the most up-to-date and in-depth knowledge in total rewards,” said Anne C. Ruddy, CPCU, executive director of WorldatWork. “Our certifications are the premier recognition
in the profession, and our publications and resources provide in-depth knowledge of all aspects of total rewards so our members are never caught behind the curve.”

Wood also benefits through access to leading experts — people she met either by attending or teaching WorldatWork seminars and classes.

“I learn so much from other people and get kudos for bringing in top consultants, which furthers my career,” Wood says. “The networking has been invaluable.” In fact, many of her career successes since joining World-atWork can be attributed to her direct involvement in the organization. “I couldn’t have grown out of compensation without WorldatWork’s classes and knowledge,” Wood emphasizes. “I can track every career change with getting knowledge from World-atWork.” That’s quite an endorsement.

Since Concord’s highly successful IPO three years ago, the market leader in e-business infrastructure management has enjoyed huge expansion into domestic and international markets. Included in Forbes magazine’s list of the top technology companies, Concord’s cutting-edge technology brought about change and growth in its workforce requiring a new human resource information system (HRIS) to match its growing human capital management needs.

With an increasingly dispersed workforce that had doubled in size over the course of the year, Concord discovered that growth brings many new challenges. Its human resource department quickly saw the need to find a Web-based HRIS that could connect employees located in numerous locations. “A lot of companies couldn’t supply what we were looking for,” said Erin Genis, HRIS project leader at Concord. After considering a variety of software options, the search team at Concord knew it had an ideal fit when it reviewed iVantage™, a new product from Denver-based SPECTRUM Human Resource Systems Corporation.

SPECTRUM’s iVantage system has proven to be the choice of companies that are looking for the latest technology in their HRIS. Web-designed and Web-operational, iVantage provides Concord with the latest in Web-application technology to offer complete HR functionality for its human capital needs. The system tracks Concord’s compensation management, benefits, governmental compliance, absences, training, and applicant records.

With a Web-operational system like iVantage, the server where the data is stored can be located at any secure site. HR professionals and managers can access the employee data over the Internet or via a LAN using Microsoft® Internet Explorer. In the near future, all Concord employees will benefit from iVantage’s fully Web-operational technology as they implement the system’s employee self-service functionality. Employees will be able to review their own employment, benefits, and vacation records, according to Kelli-ann McCabe, director of human resources. Such a feature is appreciated by Concord, which puts particular value on empowering its employees.

According to John Heimbach, a client services senior consultant for SPECTRUM, the employee and managerial self-service feature was designed to be flexible and user-friendly. With iVantage, the system administrator has the freedom to control what data is viewed and changed by employees in various roles within the organization.

Concord is also utilizing SPECTRUM’s iVantage Link™ module, which is designed to eliminate duplicate data entry between iVantage and its payroll system. The payroll interface electronically transfers changes made in iVantage to Concord’s ADP PC/Payroll for Windows.

SPECTRUM installed the iVantage system without any hitches, according to Genis. Ample training and technical support are offered through SPECTRUM’s product support and client services departments, although iVantage is not difficult to learn. Concord was impressed with the excellent performance by SPECTRUM’s team, considering that the company was one of the first to implement iVantage. “SPECTRUM’s workflow and products are truly HR best practice,” McCabe said.

The interview went well, and now you have in your hands an offer from a company that you’d like to work for. What do you do? Optimally, this is where having a recruiter working with you can help you out the most by negotiating for key benefits, or more pay.

The problem with negotiating on your own is that it’s always easier for a third party to get what is wanted. The recruiter is much more aware than you of what the market is like, and will get you the best salary. Or maybe you will accept a lower salary for different benefits like stock options, flexible hours or telecommuting. These things are best handled after you’ve received an offer.

Let the recruiter talk about those things instead of you. If you’re going to work for a company, you want to come in with a positive attitude. You don’t want to come in after going through a lot of tough negotiation thinking someone you’re working for held you back from making a thousand dollars more.

Source: Commercial Programming Systems, February 10, 2000.

Less work and more money? One day in the office and four from home? Massages every fourth Wednesday?

What do today’s employees really want from their employers?

That question has spurred renewed interest in work/life initiatives, especially among employers who thought they were too small to have one. But, what can employers reasonably expect from work/life programs? Is the investment worth the effort? Research compiled at Work|Life Benefits in Cypress, California, gives you a little data to back up your claims if you’re trying to sell the CEO on a work/life initiative.

Enhanced Recruiting

• Work/life benefits are as important as health insurance, according to 90 percent of 1,000+ employees surveyed by the Gallup Organization in 1998.

• As many as 20 percent of non-working mothers with young children do not seek employment because they see quality child care as unaffordable or unavailable.

• One-third of college students and interns surveyed by the U.S. House of Representatives in 1999 said that work/life balance is the most important characteristic of the “ideal” company to work for.

Trimming Costly Absenteeism

• In 1997, the average employee missed 11.5 workdays to handle personal and family matters, not including sick days.

• Family issues account for more than 26 percent of absences, compared to 22 percent for illness.

• 33 percent of employees utilizing employer-provided work/life programs reported fewer absences as a result.

Keeping Pace with the Workforce

• The number of US households with annual incomes under $50,000 will grow 3.2 percent by 2003, and more than 12 million of these will claim incomes of less than $10,000, up 5 percent from 1998 (with less earning power, employees will turn to employers for more non-compensation benefits).

• More than one-fourth of surveyed workers said that balancing work and family is more important than competitive salary, job security or the need for an advanced degree.

• Male employees are 10 percent more likely to quit over work/life conflicts than female employees.

Balancing the bottom line

• In contrast to the S&P 500, which showed an overall 89% return for the years 1996 through 1998, the 61 publicly-traded companies that made the Working Mother list of “100 Best Companies for Working Mothers” showed a return of 98 percent.

• By one major bank’s estimates, work/life programs save 14-18 hours per employee per use.

SOURCE: Work|Life Benefits, Cypress, CA, March 9, 2000. 1-800-949-7948.

Q

Dear Workforce:

How do I prepare a strategic plan for the group human resources department ofa group employing about 500 people, most of whom are involved in the field ofservices?

— Scratching my head in Malta, Group HR manager, services company, MriehelIndustrial Estate, Malta.

A Dear Malta:

A strategic plan for a small organization requires the same care and thoughtas any other HR effort. The components of the plan should be as follows:

• Mission statement for the function. Focus on the needs of the customer,not your strengths.

• Environmental scan. Focus on the business case of the organization,markets, capital, products, R&D, and implications for HR

• SWOT (strengths, weaknesses, opportunities, and threats) Analysis.Critical review of the programs, processes, technology, and capabilities of theHR function — a gap analysis, in other words.

• Determination of budget.

• Identification of strategic intent for the year. What are the majorefforts that will be undertaken by HR. State them in measurable terms.

• Migration strategy. What is the timeline, and what is each person’sresponsibility?

SOURCE: Tom Casey, principal, organizational effectiveness practice, UnifiNetworks, a subsidiary of PricewaterhouseCoopers, Boston, Massachusetts., May15, 2001

LEARN MORE: See “The Organizational Myth: ThreeManagers and a Work Plan“

The information contained in this article is intended to provide usefulinformation on the topic covered, but should not be construed as legal advice ora legal opinion. Also remember that state laws may differ from the federal law.

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Q

Dear Workforce:

Why is line management in many organizations performing the human resourcesconsulting role?

— Corporate sales director, hospitality, Lake Mary, Florida.

A Dear Line Management Wonderer:

Few executive leaders would disagree that their company’s people are its mostvaluable asset. In a continually changing market, many organizations have begunto recognize that people issues are not merely an administrative detail, but acritical component of the overall business strategy.

Attracting, developing, deploying, and retaining key talent has everything todo with how sustainable a company’s competitive position is. Yet the HR functionin many organizations has not been successful in proving its value to therevenue-generating parts of most companies. As a result, line management hasassumed the role of the human resources consultant.

There are a number of reasons why this has transpired. The introduction ofnew technologies, industry consolidation, and globalization resulted in acompetitive landscape that often rewards scale and skill players. So, companieshave gotten bigger and the workforce is often geographically dispersed.

Meanwhile, reductions in corporate support functions have frequently beentargeted for efficiency gains, so many HR departments have transformed intospecialty shops focusing on compensation, benefits, and employment law. At thesame time, diverse business units within a single corporation have become moreautonomous and there are fewer touch points between the people on the front lineand the HR department. As a result, line management is often called upon toassist with people issues due to their proximity, availability, and trustedstatus.

The truth is that HR has historically been relegated to being an internaladministrative function, and in many organizations it has conformed to thisexpectation. In order to gain credibility as a strategic partner, HRprofessionals must be proactive in overcoming this stigma. They must demonstratean understanding of what drives the business and focus their energy onactivities that are directly aligned with business objectives. This means beingwilling to seek feedback from internal customers and consistently demonstratingthe value of HR initiatives in ways that are meaningful to those with profit andloss responsibility.

SOURCE: Betsy Drawert, consultant, organizational solutions practice,Personnel Decisions International Corp. (PDI), May 17, 2001.

LEARN MORE: Read more than 100 articles and tips on HR services and the HRprofession.

The information contained in this article is intended to provide usefulinformation on the topic covered, but should not be construed as legal advice ora legal opinion. Also remember that state laws may differ from the federal law.

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Q

Dear Workforce:

Why is the role of human resources becoming more visible within organizationsand what are the implications associated with such visibility?

— Corporate sales director, hospitality, Lake Mary, Florida.

A Dear Hospitable in Lake Mary:

There are a number of reasons the human resources function is gettingincreased visibility.

• Across the entire economy, jobs are becoming more knowledge-intensive.Many jobs we would previously have considered to be “unskilled” nowrequire the use of computers or other technology.

• Businesses need to get more done with fewer people. New technologies havepaved the way for dramatic staffing reductions in large organizations, but fewerpeople means those that remain must be highly competent and reliable.

• The workforce is more mobile. The era of downsizing in the 1980s and 1990sshowed that workers no longer could expect job security in exchange for theirloyalty. As a result, individuals realize they need to continually expand theirportfolio of in-demand skills, and they will change jobs as needed to build thatportfolio.

• People have greater expectations for their quality of work/life.

These trends have magnified the benefits of having (and keeping) the rightperson for the job, meaning HR professionals need to adopt more reliableprocesses and tools for recruiting, selecting, developing, motivating, andretaining workers.

This changing landscape has wide-ranging implications for human resourcesprofessionals. More than ever, HR professionals need to understand theirbusiness, both at the operational and strategic levels. On the operationallevel, they need to make time to learn how the work really gets done, out on thefront lines. On the strategic level, they need to understand where the industry,competition, and organization are heading, and anticipate the implications forthe organization’s talent.

HR needs to fundamentally change the way it makes investment decisions. Toomany times, I have heard clients say, “We don’t need to justify this HRprogram. We have top management support.” Many HR professionals decide todo a program because it is fashionable (“GE does it. We should, too!”)or the CEO wants it.

Then, when business results turn downward or the CEO is replaced, they haveto scramble to come up with a reason the program should be spared. To avoid thattrap, HR needs to identify investments that will create value for theorganization, evaluate each investment against a standard set of criteria, anddocument the business rationale for the proposed investment.

As HR increases their reputation as strategic thinkers, they willincreasingly be in a position to influence the strategy formulation process,ensuring that the organization weighs the human capital implications of proposedstrategies.

SOURCE: Donna Neuman, senior consultant, Personnel Decisions InternationalCorporation (PDI), Minneapolis, Minn., May 15, 2001.

LEARN MORE: See “Strategic HR Won’t ComeEasily,” to learn more about the evolving HR profession.

The information contained in this article is intended to provide usefulinformation on the topic covered, but should not be construed as legal advice ora legal opinion. Also remember that state laws may differ from the federal law.

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Dear Workforce Newsletter

The business world’s ever-increasing reliance on technology is creating a shockingly incompetent workforce. In a national survey, the American Management Association found that more than 40 percent of job applicants failed reading tests last year, and almost 35 percent failed math.

“New technologies have raised the bar in terms of necessary skills for many jobs, and higher levels of reading and math are required in job applicants,” says Eric Rolfe Greenberg, director of management studies for the AMA. Required skills aren’t the same as they were even just a few years ago, he notes.

Five years ago, the only requirements for a warehouse job, for example, were minimal literacy, a strong back, and a willing mind. Today, the same job requires additional skills such as the use of handheld scanners to control inventory.

“Workforce 2000,” a study released in the early 1980s by the Hudson Institute, graphed the skill requirements needed for future jobs. One line moved ever upward, showing the dramatic increase in jobs that will require higher cognitive skill levels. The second line moved ever downward, indicating that the number of people who have the needed skills is continually decreasing.

The two lines crossed in 1997. Since then, skill shortages have only risen. In a 1998 AMA poll that asks HR professionals about the availability of talent, half of the respondents said that talent was scarce. Last year the number shot up to 76 percent.

Even though many jobs require more skills than applicants have, the report also shows that the number of companies that use testing is declining. Greenberg says that companies are less inclined to test because they simply can’t be as selective.

Workforce, October 2001, p. 22 — Subscribe Now!