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Posted on October 30, 2017June 29, 2023

Ceridian: Optimas Gold Winner for Innovation

HR software company Ceridian takes pride in working for people and looking to them as assets and not costs.

Specializing in onboarding and transboarding (moving from one department to another), Ceridian’s innovative Dayforce Onboarding initiative increased employee engagement by giving new workers a detailed understanding of the organization on their first day and easily transferring employee information through HR processes that also led to accurate and effective time management.

The Minneapolis-based company hired 1,650 new employees in the past two years and wanted to immediately include employees into the company culture. As a result, employees get to work faster and more efficiently and can set realistic expectations. The program also limits potential first-year attrition.

Chief People Officer Lisa Sterling sought to modernize the onboarding experience. Technology, communication, collaboration and employee connectivity with personalized experiences were key parts to making the initiative successful.

“It is an honor to be recognized with an Optimas award in the category of Innovation,” Sterling said. “Dayforce technology is about culture and is a force for transformation. As many have come to realize, career success is no longer just about having all the right skills, but also the right behaviors. Dayforce Onboarding’s focus on the cultural integration aspects of starting a new job or new role is a prime example of how cultural fit is coming to the forefront of HCM technology.”

Enhancing employee engagement was a cultural aspect sewed into the program, which focuses on personal interaction, happiness in the workplace and having career advice ready from HR professionals.

“By engaging individuals faster, Ceridian improves retention, bolsters the employer brand and better enables employees to do their jobs,” according to the award application.

With the help of technological interaction to introduce teams through Dayforce TeamRelate by showing bios and pictures, co-workers immediately get to know their incoming colleagues and can get the ball rolling even before a new employee’s first day. This fast-moving direction has also garnered other awards for Ceridian’s program, which helps put them in good standing as an industry innovator.

For its efforts to use its robust training and onboarding program as a recruiting tool, Ceridian is the 2017 Optimas Award Gold winner for Innovation.

Read about the rest of our 2017 Optimas Winners Here. 

Posted on January 27, 2010June 29, 2023

Social Media Transforming the Way Companies Communicate Change

Managing change was never easy. But with the advent of such social media tools as Twitter and Facebook, it has become significantly harder.


Some organizations have tried to ignore the very existence of social media—to their own detriment. Others may have wanted to harness social media’s power, but have been wary, knowing that social media is not without some risk.


Using social media can be a venture into unfamiliar waters. It can feel like navigating the most turbulent rapids: a little scary, dangerous and exhilarating all at once. But, if used correctly, the reward from social media is well worth the effort.


Traditional approaches to change management emphasized discipline over dialogue. After clarifying the change, the traditional path for change management includes:


• Chartering the change management team.
• Creating the business case.
• Carefully identifying, facilitating and socializing stakeholders.
• Making decisions centrally with formal and informal input.
• Crafting and delivering messages in a controlled way.
• Seeing communication as an artifact of the process.
• Using task orders, linear milestones and issues management protocols.


But now? Things have changed. Here’s how:


Stakeholders are part of the process: Even if you aren’t using social media within your organization, many of your employees and other stakeholders—including customers, suppliers and investors—are active users. That means the conversation about change starts as soon as the change happens—sometimes very publicly. Sensitive information about mergers, acquisitions or layoffs can end up on Twitter, for instance. However, there are ways to use social media internally and externally to the organization’s advantage to find out what people in the organization are really thinking and what they really want to know before they commit to the change.


For example: As one company went through a recent merger, the integration team was able to comb through online posts in multiple forums, from Twitter to industry-specific blogs.


After sorting through varied content, they formed a clear picture of the employees’ real issues, based on how frequently they were brought up, and how similarly the sentiments were expressed, rather than reacting disproportionately to polarizing pro or con opinions. After gauging the full spectrum of employee reactions, the integration team used these insights to tailor their formal communication to speak accurately and appropriately to workers’ concerns.


Internal tools such as message boards and online brainstorming can channel dialogue back to your change team by facilitating an online conversation about specific topics. Today, there’s a growing number of ways to gather qualitative feedback with these tools.


You can, for example, use a brainstorming tool to ask your stakeholders to provide ideas on a topic to get the conversation flowing—but you can also build in ways for people to vote on the ideas they like best or predict which ideas will have the most impact. That means even the “quieter” people who don’t want to post messages can provide their input into the conversation.


Meaning has more importance than message: Remember when “stay on message” was a rallying cry for leadership during a big change? Now it’s “stay on meaning.”


Early chatter and dialogue regarding a change is now the norm, and people are hungry for an authentic response from leaders. The same talking points repeated over and over get stale fast. Leaders need to internalize the messages enough to build meaning and infuse their own thoughts and opinions into the dialogue.


With the right tools and approaches, you can enlist your stakeholders to help design your solutions. This approach will ensure they are actively involved when you launch the change.


An example is a technology company that recently faced its first layoffs. Its managers, who had little or no experience handling layoffs, were upset. Company leaders responded by creating a secure manager site where they encouraged “rants” and posted supporting tools and online training. The leaders monitored the rants (with the managers’ knowledge, but without interfering with the discussion) and were able to see how they could reframe their communication with managers and revise their support.


Mostly, they watched as managers supported one another. “I don’t understand why this has to happen. Why couldn’t we find another way to cut costs?” posted one manager. “Times have changed,” posted another. “We need to change too, and this will force us to put our resources to better use.”


The managers also shared their fear of the difficult conversations they anticipated and created a sense of community throughout the process.


Executives watched the process and used the stories to help create stronger connections among managers. No one liked what was happening, and there were bumps along the way. But everyone agreed that allowing the managers to connect without censorship was key to helping the change take place.


A new change process requires new facilitation: One of the biggest challenges in this new process, where stakeholders participate early and establish an ongoing dialogue, is your ability to manage their expectations and align the organization’s thinking. Once the conversation is public, many people will want their ideas and advice to become part of the solution.


Managing the process, rather than controlling it, requires clear thinking, proactivity, diplomacy, flexibility and quick reflexes.


How do you survive the change process amid a constant storm of feedback and input? The answer always comes back to how you facilitate the change process. The most effective companies charter change teams very early in the process, so they can begin to take part in the discussion.


These teams quickly analyze stakeholder input in the context of project goals and guidelines, helping leaders respond quickly and setting expectations while correcting any misconceptions. And you can also set clear expectations upfront regarding how feedback will be used.


When senior leaders in one company decided to make significant changes to employee benefits, they knew some of the decisions would be tough for employees to accept and understand. They worked hard on communication, but kept coming back to the issue of feedback.


Some didn’t want it: “We know how this is going to go. Why do we want to open that can of worms?” Others suggested harnessing it: “Let’s find out how we’re doing and use the feedback to address issues. After a good debate, HR took the plunge and created a feedback section on the company’s HR portal.


At first, HR leaders got exactly what they expected: complaints. But as they reviewed the comments, they were able to see a few key areas where there were true misunderstandings. They quickly sent updated communication support to field HR and managers and used some of the complaints to reframe the conversation. Soon, employees began to accept and understand what was changing and why.


Interestingly, the blog and Twitter chatter outside the firewall started calming down too.


Time helped, but the leadership feels the internal conversation helped as well. What didn’t change were the decisions the company made regarding future benefits. What did change was how the leadership explained the changes and how managers learned to engage in conversations with employees on a difficult topic.


The benefit can be a snowball effect: In 1994, Russell Ackoff published The Democratic Corporation, a book explaining his position on how all stakeholders—employees, suppliers, customers, investors, creditors, debtors and government—play a role in helping a company grow and develop. He called for changing the way companies design and manage work. Social media wasn’t around when Ackoff wrote his book, but it may drive much of the transformation he called for.


As more people use social media in their personal lives, they expect the same immediacy and participation at work. If you don’t provide the vehicles for interaction, your employees will create them on their own. They’ll stick a server under a desk and start something–or they’ll move the conversation outside.


Employers ignore social media at their own peril, especially during change. It comes with risks but also with great reward. It does have a snowball effect. As more people participate, more people want to be involved. It’s not exactly what many in leadership expected. But those who have learned about the power of participation can also learn to love the wisdom of the crowds.


By engaging the workplace community, we can find ideas for innovation and a greater appetite for risk. Those are often just what you need to get the results you want from a change effort.

Posted on January 26, 2010June 27, 2018

EEOC Settles Recruiter Dispute With Staffing Company

Staffing firm Aerotek agreed to allow recruiters who are in nonmanagement positions to speak with representatives of the Equal Employment Opportunity Commission privately and without an attorney from the company present as part of an EEOC investigation, the agency announced Monday, January 25.


Aerotek had allegedly required its recruiters in some of its Chicago offices to speak with an EEOC representative only with a company attorney present, according to the EEOC. The agency was investigating a separate complaint of alleged discrimination.


The EEOC said it sought a preliminary injunction against Aerotek to overturn the requirement.


Both sides went to court but reached a negotiated agreement whereby Aerotek agreed to advise recruiters in its Schaumburg, Rockford and Crystal Lake, Illinois, sites that they can speak with an EEOC representative in private and without an Aerotek attorney. The statement included the words: “At no time will any adverse action be taken against you by Aerotek based on whether or not you choose to speak to the EEOC,” according to the EEOC.


“Responsible employers understand that they have nothing to gain by attempting to interfere with EEOC investigations,” said EEOC regional attorney John Hendrickson.

“Interfering employers frequently end up only shooting themselves in the foot, and the EEOC investigation goes forward in any event. The controlling principles are clear: The law permits the EEOC to speak directly with nonmanagement employees outside of the presence of employers and their counsel, and the law protects the employees who speak with the EEOC from retaliation.”


Aerotek is part of the Allegis Group, the largest U.S. staffing firm.



Filed by Staffing Industry Analysts, a sister company of Workforce Management. To comment, e-mail editors@workforce.com.


Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

Posted on January 26, 2010June 27, 2018

Tomboyish Hotel Clerk Can Challenge Firing Under Title VII

A front desk hotel clerk fired allegedly because of her “tomboyish” appearance can pursue employment discrimination and retaliation claims against her former employer, a federal appeals court has ruled.


According to the January 21 decision by the 8th U.S. Circuit Court of Appeals in St. Louis in Brenna Lewis v. Heartland Inns of America, Lewis was promoted from nights to days at a hotel operated by Waterloo, Iowa-based Heartland Inns in December 2006.


The hotel’s director of operations first saw her after her promotion and said Lewis lacked the “Midwestern girl look,” according to court records.


“Lewis prefers to wear loose-fitting clothing, including men’s button-down shirts and slacks,” the appeals court said in its ruling. “She avoids makeup and wore her hair short at the time. Lewis has been mistaken for a male and referred to as ‘tomboyish.’ ”


At a January 2007 meeting, Heartland Inn director of operations Barbara Cullinan told Lewis she would need a second interview to confirm her new post. Lewis protested that other staff members were not required to have a second interview for the job and was fired three days later. She then filed suit, charging sex discrimination and retaliation.


A district court granted summary judgment in Heartland Inn’s favor, but a panel of the appeals court overturned the lower court in a 2-1 ruling.


The appeals court cited the 1989 U.S. Supreme Court decision in Price Waterhouse v. Ann Hopkins, in which it ruled a gender stereotyping claim could be filed under Title VII of the Civil Rights Act of 1964 for the woman allegedly denied a partnership because she did not act feminine.


Subsequently, other federal appeals courts have upheld Title VII claims based on sex stereotyping, according to the 8th Circuit ruling.


“Cullinan’s criticism of Lewis for lack of ‘prettiness’ and the ‘Midwestern girl look’ before terminating her may also be found by a reasonable fact finder to be evidence of wrongful sex stereotyping,” the appeals court said.



Filed by Judy Greenwald of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.



 

Posted on January 26, 2010June 27, 2018

TV Companies Settle Writers Age Bias Suits for $70 Million

Seventeen television networks and production studios and seven talent agencies have reached a $70 million settlement in 19 age discrimination cases brought by 165 television writers.


About two-thirds of the settlement will be paid by insurers, according to a joint announcement by both sides in the dispute. An attorney did not respond to a call seeking further information.


The settlement affecting TV writers 40 and older, announced January 20, is subject to approval by the California Superior Court in Los Angeles.


The parties have been litigating the claims for almost 10 years, according to the statement. Defendants, who deny the plaintiffs’ allegations, include ABC, CBS, NBC and Fox.


“We were fully prepared to oppose class certification and would have prevailed at trial if necessary,” liaison counsel Seth E. Pierce, a partner with Mitchell Silberberg & Krupp in Los Angeles, said in the statement. “But with years of disruptive litigation remaining, and all networks and major television studios and talent agencies participating in the settlement, it made sense to bring these protracted cases to a close.”



Filed by Judy Greenwald of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.



 

Posted on January 25, 2010June 27, 2018

Ford, AOL Turn the Tables on Layoff News

In a turn of events following 18 months of constant reports of layoffs, two major U.S. companies are planning to beef up staffing in a big way.


Ford Motor Co. plans to add 1,200 jobs when it begins making the Explorer sport utility vehicle at its Chicago factory, while AOL announced plans to hire an undetermined number of engineers and other techies to staff a “New York Technology Center” two months after laying off a third of its global staff.


Adding the Explorer probably will mean bringing a second shift back to the Far South Side plant, which has been down to one shift for the past year. The factory now employs about 1,400 workers.


Ford’s parts-stamping plant in Chicago Heights, which employs about 750 workers, also would be helped by the arrival of another vehicle at the Far South Side facility.
 
Ford is spending hundreds of millions of dollars in Illinois on launching the new Explorer model that will be built here. It has been retrofitting the plant for months.


The recently spun-off AOL—which announced in November that it would cut 2,500 jobs, or a third of its global staff—hired digital entrepreneur and former Google executive Jeff Reynar for the new position of head of technology for engineering and products in New York.


The one-time Google engineering manager will build out and manage the soon-to-be-created New York Technology Center, AOL Inc. announced Monday, January 25. Reynar will be recruiting engineers from around the Northeast to work on the technological underpinnings of AOL’s growing content business.


The center will be based in AOL’s lower Manhattan headquarters.


The company declined to say how many recruits will be needed, how big the New York center will be or when it will get off the ground. It will be one of a half-dozen technology hubs at AOL, including those in Dulles, Virginia; San Francisco; Bangalore; and Tel Aviv, Israel. All of the hubs will be expanding, the company said.


“We want to be known as a place where world-class engineering drives world-class results for our company and the consumers and partners we serve,” AOL chief executive Tim Armstrong said in a statement.


The company is also looking for a new global chief technology officer, according to the announcement. Current technology chief Ted Cahall is moving on. 



Filed by Matthew Flamm of Crain’s New York Business and John Pletz of Crain’s Chicago Business. Both are sister publications of Workforce Management. To comment, e-mail editors@workforce.com.


Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.





 

Posted on January 25, 2010June 27, 2018

Vulgarity Justifies Hostile Work Environment Suit

A female employee subjected to considerable gender-specific vulgarity can pursue her hostile work environment claim, even though the profanity was not directed specifically at her and was common at the workplace, a federal appeals court has ruled.


Wednesday’s en banc decision by the 11th U.S. Circuit Court of Appeals in Atlanta in Ingrid Reeves v. C.H. Robinson Worldwide Inc. overturned a lower court’s dismissal of the case. A panel of the appeals court also ruled in Reeves’ favor in 2008. The court subsequently vacated the panel’s decision and granted a rehearing.


According to the full court’s decision, Reeves was the only woman who worked on the sales floor as a transportation sales representative in the Birmingham, Alabama, branch of the Eden Prairie, Minnesota-based shipping company from July 2001 to March 2004.


In addition to profanity that was not gender-specific, Reeves said she heard a “substantial corpus of gender-derogatory language addressed specifically to women as a group,” although the language was not directed at her specifically, according to the decision.


She was also forced to listen to a morning radio show that regularly talked about topics such as the size of women’s breasts and “elderly people having sex,” according to the decision.


After her complaints to management went unheeded, Reeves resigned and filed suit, alleging she had been subjected to a hostile work environment in violation of Title VII of the Civil Rights Act of 1964.


“Sexual language and discussions that truly are indiscriminate do not themselves establish sexual harassment under Title VII,” the appeals court said in its unanimous decision. “Nevertheless, a member of a protected group cannot be forced to endure pervasive, derogatory conduct and references that are gender-specific in the workplace, just because the workplace may be otherwise rife with generally indiscriminate vulgar conduct.


“Title VII does not offer boorish employers a free pass to discriminate against their employees specifically on account of gender just because they have tolerated pervasive but indiscriminate profanity as well,” the court ruled in remanding the case for further proceedings.


Filed by Judy Greenwald of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

Posted on January 25, 2010June 27, 2018

Talent Software Poised for More Consolidation

The $100 million deal to create Peopleclick Authoria is the latest mash-up in the talent management software field. And experts say more is in store.


Vendors offering just one or a few talent management functions could be candidates to gobble up—or be gobbled up—in the quest for more comprehensive product lines, consultant Karen Beaman says.


“I do expect this consolidation to continue,” says Beaman, who heads advisory firm Jeitosa Group International. “In order to be competitive, they have to have more well-rounded suites.”


OnJanuary 5, private equity firm Bedford Funding said it had acquired talent acquisition specialist Peopleclick for $100 million. Bedford Funding said it was creating a new firm by combining Peopleclick with Authoria, the HR software company that Bedford acquired in 2008 for $63 million. Authoria brings with it recruiting software capabilities, along with other functions such as benefits communication and performance management.


Together, Peopleclick and Authoria boast as customers nearly 60 percent of the Fortune 100. Their combined annual revenue is close to $100 million, says Charles Jones, chief executive of the new firm, Peopleclick Authoria. Jones is the founder of Bedford Funding. He also served as CEO of software firm Geac Computer Corp.


Ron Kupferman, former CEO of Peopleclick, and Jim McDevitt, former CEO of Authoria, will operate as vice chairmen, working on business development, the company said.


The Peopleclick Authoria news is the latest example of tie-ups in talent management software, which refers to applications for key HR tasks such as recruiting, employee performance management and compensation management. Other deals in recent years include Taleo’s acquisitions of compensation specialist Worldwide Compensation and recruiting software firm Vurv Technology, as well as Kenexa’s swallowing up of recruiting software provider BrassRing.


In September, research firm Bersin & Associates projected sales of talent management software would reach $2.2 billion by the end of 2009 and grow 15 percent in 2010.


Josh Bersin, the firm’s CEO, called the Peopleclick Authoria deal the union of “two strong players” in the talent management systems market. “Both companies are product and market leaders in their segments,” he said in a statement.


But meshing technologies could be a challenge for the new firm, says Jason Corsello, vice president at consulting firm Knowledge Infusion. Although Peopleclick and Authoria “have arguably some of the deepest, best-of-breed solutions for talent acquisition and talent management, the two products couldn’t be more different,” Corsello wrote in a recent blog item. (Corsello’s blog, The Human Capitalist, is featured at Workforce.com.)


Jones, though, says that integration hurdles are not new in the software world. He says the secret to successful mergers has more to do with culture than software code.


“It’s about the people,” he says. Jones plans to be busy ensuring happiness among the troops—more than 300 from Peopleclick and more than 200 from Authoria.


Jones, 61, lives outside of New York City but expects to work three days a week in Raleigh, North Carolina, where Peopleclick has had operations, and two days a week in the Boston area, where Authoria has had its corporate headquarters.

Workforce Management, January 2010, p. 11-12 — Subscribe Now!

Posted on January 18, 2010June 27, 2018

Law Protecting Gay, Transgender Workers Vowed in 2010

A pivotal senator on employment issues predicted congressional approval in 2010 of legislation that would ban workplace discrimination on the basis of sexual orientation or gender identity.


Although health care still is dominating the legislative calendar, Sen. Tom Harkin, D-Iowa and chairman of the Senate Health, Education, Labor and Pensions Committee, promised an Obama administration official at a November hearing that the Employment Non-Discrimination Act would get to President Barack Obama’s desk.


“We’re going to move this bill next year,” Harkin said to Tom Perez, assistant attorney general for civil rights. “I’ll see you at the bill signing.”


The measure would prohibit basing hiring, firing, promotion and compensation decisions on actual or perceived sexual orientation or gender identity.


Supporters assert that a federal bill is required because only 29 states have laws protecting gays and lesbians at a business operation.


The private sector is given generally high marks for recruiting and promoting people of all sexual orientations. Some in the business community, however, have raised concerns about the details of gender identity compliance.


Prospects for the bill are good because the Senate measure has 42 bipartisan co-sponsors—enough to overcome a filibuster. A similar House bill has 189 co-sponsors. The House approved a version in the previous Congress that did not address transgender workers.


Now bill advocates are confident that they have enough support for gender identity, especially with a president who’s poised to sign the bill.


“The Obama administration believes that ENDA must be the next step in the unfinished business of America which is civil rights,” Perez said.


Employers are credited with being a step ahead of Congress on inclusive work environments.


About 87 percent of Fortune 500 companies have sexual orientation policies and more than a third include gender identity.


Nike Inc., the giant athletic equipment maker, is one of 80 companies in the Business Coalition for Workplace Fairness, which supports ENDA.


“Our ability to continually innovate and positively influence as a global corporate citizen hinges on our ability to welcome diverse perspectives and ideas and to make an investment in all of our employees,” Virginia Nguyen, a member of the Nike diversity and inclusion team, said at the hearing.


But the Society for Human Resource Management and other business groups are cautious about ENDA because of what they see as ambiguous gender identity provisions.
Camille Olson, a partner at Seyfarth Shaw in Chicago, told the Senate panel that the bill is unclear about whether or how a company must modify restrooms, showers and other shared facilities for transgender employees.


Nike has not experienced accommodation problems, according to Nguyen. Workers use facilities that correspond to their gender identity, not their birth gender, and there are “private areas” in restrooms and locker rooms.


In an interview, Olson said that members of Congress are listening to her concerns.


“The philosophy that I’ve heard expressed by people who are involved is one of adding more clarity so that if [the bill] is implemented, we’re not wasting resources on questions about what does it mean,” she said.


—Mark Schoeff Jr.



Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

Posted on December 30, 2009August 31, 2018

R&D Sent to China

Companies such as IBM, Microsoft and Nokia outsource chunks of their research and development and product development work to Symbio, a global product development firm with seven R&D centers in Finland and Sweden and five offshore development centers in mainland China, Taiwan and Bangladesh.


One thousand of Symbio’s 1,400 employees work at three development centers in China, the new world powerhouse for R&D spending and talent.


With its software development engineers in China handling the bulk of the work, Symbio cuts time-to-market for its clients by as much as 25 percent and product engineering costs by as much as 75 percent. “For our clients, costs are a priority, but agility and time-to-market are also key,” says Jacob Hsu, Symbio’s CEO, now based in Beijing. Hsu was educated at the University of Pennsylvania’s Wharton School of Business.


To ensure a steady flow of top talent with company-specific skills, Symbio partners with a major university at each of its three development centers in China.


“Every year, we select 100 top juniors at each university, work with the university to design a curriculum and then move those students into paid internships at Symbio in their senior year,” Hsu explains.


Hsu is unconcerned about reports of wage inflation in China topping 6 percent.


“Whether you are in China or any location, controlling wage inflation comes down to managing your talent pipeline,” he says. “To control costs, we must manage our employees to increase the value of their skills.”


In addition to its training programs for students, the company maintains an internal program that offers 108 different courses for existing employees.


The world spends more than $1.1 trillion a year on R&D, with corporations accounting for 62 percent of the total, according to Booz & Co. Among the top 1,000 global corporate R&D spenders, nine out of 10 conduct R&D activities in multiple locations offshore, with the majority spending more than half of their R&D budget outside their home country. Booz’s 2009 study found that companies spending more of their R&D budget in low-cost locations perform substantially better in sales and market capitalization growth. China is now the single largest net recipient of R&D offshore spending.


Companies commonly lower their R&D labor costs by 40 to 60 percent by offshoring to the developing economies, according to the Boston Consulting Group. Salaries for associate engineers in India average $4,400 per year, compared with $53,400 per year for newly minted engineers in North America or Europe, Boston Consulting Group notes.


Hsu is actively exploring locations for new centers in China but has little appetite for moving into other emerging markets.


“There is still so much room for growth in China, with an incredible upside for workforce expansion and plenty of scale, especially in Tier II cities,” he notes. “We have to stay cost-effective, but we have to tap into the best engineers and experts and they are only in certain locations,” Hsu says.


Increasingly, those locations are in China and India—the preferred sites for offshore R&D. The emerging markets already account for two-thirds of the global engineering talent pool, and that share is rapidly growing, Boston Consulting Group says.


Workforce Management, December 14, 2009, p. 27 — Subscribe Now!

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