Employee engagement, transparency key for HR pros

By Jeremy Stoltz
Editor

The human resources arena is swiftly changing and its difficulties are exacerbated by the current trend of cutbacks, layoffs and downsizing, requiring HR professionals to manage their human capital as precisely and efficiently as ever.

“In my 30-plus years of business, I’ve never seen as much change as what has taken place over the last 12 to 18 months,” said Gene Wilson, president and CEO of PANTHEOS, speaking to a group of HR professionals at The Business Ledger’s Newsmakers Forum at The Hyatt Lodge at McDonald’s Campus in Oak Brook.

In 2008, the National Federation of Independent Business conducted a survey to find out the most important issues facing small- to mid-sized business, and health care costs were No. 1 on the list by a wide gap, said Wilson.

Human resource management was the hot topic at a recent Business Ledger Newsmaker’s Forum. The forum’s featured panelists included (l-r) Wheaton attorney Ross Molho; Assurance executive vice president Liz Smith; PANTHEOS CEO Gene Wilson; and HRMAC chairman Maureen Tarantello.

“They just redid that survey last month and the No. 1 issue now is: How do I get more sales?” he said.

Through downsizing, most organizations are as lean as they can possibly be, which means they now have to go out and garner new business. This does not leave them the time to juggle the numerous regulatory compliance issues that have recently infiltrated the HR spectrum.

PANTHEOS, a professional employer organization, has seen the demand for its outsourcing model increase dramatically because of these new regulatory issues.

“Three years ago, 46 percent of businesses used outsourcing to deal with compliance and regulatory,” said Wilson. “A recent survey said that now 70 percent are considering outsourcing. The notion of having to sell gets me out of the office, so I don’t have time for what we call administrative.”

Progressive legislation has created a host of new laws that have complicated the work of HR professionals, said Ross I. Molho, partner in the Wheaton law firm of Clingen, Callow & McLean.

“We have a tougher Americans with Disabilities Act and new FMLA regulations,” he said. We have proposals before congress for Paid Family Leave Act. We’ve got something called the Healthy Families Act, which provides for seven paid sick days from employers with 15 employees or more.

“The Working Families Flexibility Act includes a statutory right for employees to request a change of schedule. There are various vigorous immigration and customs enforcement laws. Finally we have the Arbitration and Fairness Acts which, for those of you who draft employment contracts, might preclude you from arbitrating in employment disputes.

“All of this is to show that what I see for the next four years, and potentially eight years, is a lot of federal legislation. HR professionals are going to have to be aware of this legislation and we’ll all be learning it together.”

Maureen Tarantello, chair of the board of directors for the Human Resources Management Council (HRMAC) and global account manager for Watson Wyatt Worldwide, feels the recession has opened many doors.

“Tough times create unprecedented opportunities for innovation,” she said.

One of those innovations is wellness programs, which are being rolled out in businesses across the country.

“Wellness is a big word that encompasses a lot of things,” said Liz Smith, executive vice president of Assurance. “It’s something that you have to bring on in pieces. It’s got to be baby steps and it has to start from top down. They are not successful if the executive team is not engaged.”

The goal of a wellness program is to help employees become better consumers of health care and to help them improve their health. To that end, organizations have initiated walking and exercise programs, putting healthier food in the vending machines and raising health insurance costs for smokers.

“Ultimately, when we channel our energy and creativity into getting things done in new and different ways, we can be inspired and motivated even in the toughest economic circumstances,” said Tarantello.

In contrast, creativity should not be used in the hiring process. Instead, employers should follow a strict set of guidelines to make sure they hire the right person for the right job, said Wilson.

He believes the typical mistakes employers make when hiring are:
•They don’t pre-screen.
•They don’t prepare the candidate for interviews with others in the organization.
•They don’t prepare the interviewers.
•They rely too much on the interview to evaluate the candidate.
•They evaluate the personality and not the skills and experience.
•They fail to differentiate the credible job skills.
•They only have a small pool to choose from.
•There is no utilization of a third-party assessment tool.
•Hiring out of desperation.

“If you do everything right in the hiring process, your chance of hiring the person that you need in your business is 62 percent,” said Wilson. “So 38 percent of the time, even if you did it right, you’ll hire the wrong person. I don’t know that any of us want to jeopardize our business when it comes to hiring.”

One trick to deciphering employee needs is to get feedback from those employees, said Smith.

“If you get feedback from employees and what does motivate them and try to implement some of those things, we’ve found that has really helped a lot of our clients,” she said. “This is what the employee wants, instead of just guessing what it is that will motivate them and keep them engaged.”

If layoffs are necessary, make sure the process is highly transparent to avoid any legal pitfalls, said Molho.

“If you can create a layoff process that is highly transparent, you can defend it in court. If it’s secretive or irrational, you’re going to have some troubles,” he said.

“There has to be a rational basis for who is being laid off. When I get a call from an HR professional, they often cannot tell me why Joe was chosen over Susie. If it is performance based, you’d better have some facts to back it up.”

When layoffs are taking place, it is imperative that the remaining employees be acutely aware of the situation, said Tarantello.

“The uncertainty of not knowing is worse that the certainty of knowing,” she said. “Get out there and have those conversations. Cascade messages throughout the organization. Get leaders comfortable with what they have to say and hold them accountable.”

Posted on Monday, September 21, 2009 (Archive on Monday, September 28, 2009)
Posted by jstoltz Contributed by jstoltz

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