The HR Whisperer

Yes, this is really me in Steamboat, CO!

With the new year beginning, I started thinking about what the year might hold for the workplace and employees.  Well, I’ll be honest; I was really thinking about snow and skiing.  Those two are at least fun —  I know,  I know.  Unless you have to get on the roof with the hairdryer to de-ice the gutters before the second storm hits and the snow wrecks the house (true story).   Been there, done that.  Sunny Florida beckoned.  I went.  Still miss snow, though.

But it did get me thinking about employees and their needs.  There’s this old adage that says, red sky at night, sailors’ delight; red sky at morning sailors take warning.  Meteorologists and sailors alike know that a red dawn means high water content from an approaching low pressure system.  Simply put, a [snow] storm is brewing.

Well, we have a red dawn coming.  Employers have enjoyed loyalty from their workforce, especially with the down economy.  While 2010 may still be a downer, things seem to be looking up job-wise, which means that employees will soon be on the move again.  There’s a tempest coming and with it new work ethics, attitudes and priorities.  It’s the perfect storm.

But, in spite of record unemployment, a dismal economy, and Gen Y entering the workforce, employees still have the same expectations they always did.  Spherion points out in its 2009 Emerging Workforce Study that despite the significant change workers have witnessed over the past few years, there is surprisingly little change in how they perceive the employment relationship.  While people may stay at an organization because the current economy demands they do so, holding a job and being motivated in that position are two vastly different things. 

So, how can organizations prepare for the stormy employer-employee relationship in 2010?  Three things: 1) concentrate on the social-emotional connection, 2) offer developmental opportunities that link to the organizational mission, and 3) take advantage of social media.

          Focus on the social-emotional connection.  One of the greatest causes of misery for employees is the feeling that the organization they work for isn’t interested in who they are and what goes on in their lives.  Combat this by training supervisors in social-emotional intelligence.  No matter what the business climate, the generation of the worker, or the technology available, all people want to feel important.  The Hawthorne Studies of 1924 found that if managers paid more attention and cared about employees, it raised morale and increased productivity.  That still holds true today: a recent worldwide engagement study that found that organizations with the highest percent of motivated employees increased income 19% and earnings per share 28%.  Creating the social-emotional connection also means that basic HR programs have to be in place to meet employee needs.  This includes having a decent compensation and benefits package, providing accommodations for the disabled; offering flexible work arrangements, establishing special-interest networks, and presenting good career prospects.

          Provide developmental opportunities that link to the organization’s mission and vision.  The “perfect storm” of the emerging employment contract implies that there will never be job security, that employment will be contingent on added value, and that workers have the right to demand the freedom and resources to do their jobs well.  So, if workers are to add value, help them by providing ample opportunity to improve skills and capabilities.  There are many ways to do this such as through education and training, job enrichment or enlargement, coaching and feedback.

          Take advantage of social media.  Social media is the new way of connecting and tech-savvy workers are using it to keep in touch with friends and family, share information, surf for a new job, and provide opinions on their work and their workplace.  Social media is a virtual conversation and because of this, business is now a virtual conversation.  With the advent of social media, an organization’s brand or reputation can be literally one comment away from disaster – from a Twitter blurb, Facebook post or Epinions review.  Someone out there is talking about the organization and they can say whatever it is they want.  What you can do though, is help manage the conversation.

Managing the conversation however, does not mean telling employees what to say.  It means creating an authentic atmosphere where people can initiate a conversation.  In the era of business transparency, empowering people to tell the truth can be risky, but also rewarding.  Think about how your organization can use social media to its advantage.  Introduce rules of engagement for employees and encourage them participate with an understanding of those rules.  Use social connections to share information about the company – create organization Facebook pages, Twitter accounts, or company wikis and blogs where people can share information, celebrate accomplishments, trade opinions. If something bad pops up, have a person in the organization accountable for responding to it appropriately.  Just keep the conversation going.

While workers may be staying in their respective jobs due to the economy, if the relationship is not a strong one – or is abused – when the storm is over, employees will leave for greener pastures.  Whether it’s today or tomorrow, organizations that invest in their people will find that their people will invest in them.

It’s that time of year again when kids are starting to fill out college applications, deciding if they don’t want college but would rather be a dental hygienist or fire fighter instead, or just plain freaking out that in a few short months their high school career will be over.  I’ve got one of those at home right now and it ain’t pretty.

What do these kids really have to look forward to anyway, career-wise?  With unemployment ravaging the workforce, organizational changes drying up the already few and far between entry-level opportunities, major competition for jobs driving highly experienced people to do desperate things and college tuition rates soaring, just what is out there for new grads?

Not much says an article in the October 19^th issue of BusinessWeek.  Author Peter Coy points out that newly minted high school, college and MBA grads are bright, eager – and unwanted.  The U.S. unemployment rate for 16- to 24-year-olds is around 18% and with the lack of jobs for those kids, their lifetime income potential is plummeting.  It seems like we are creating our own death spiral.

You’d think that with all this cheap labor out there companies would be snapping young people up by the dozen and getting rid of the more expensive employees.  Tain’t so.  We all know nobody’s doing anything in light of the unstable economy. But we weren’t doing a good job of bringing in the new kids to begin with anyway.

Part of what is scary about this too, is that so many of these young people are well-educated, enthusiastic and raring to go.  They’re the ones who are going to be funding Social Security, Medicaid and Medicare in the years to come.  We’re all living longer and many of us lost a ton of retirement money over the past several years due to the bouncing stock market.  So, that means that the older generations are going to have to keep working– which leaves even less for the new kids on the block, never mind our societal coffers.  And let’s not start on the loss of creativity and diversity in organizations.

Some people think the government should intervene before things get worse by subsidizing education, cutting minimum wage, offering more job training, or instituting apprenticeship programs for skilled blue-collar jobs.  Good ideas all, but require some more thinking on my part before I profess an opinion one way or another.

What I will opine though, is that we need to take care of our “pack.”  All organizations should be hiring or interning young people to keep the talent pipeline viable in spite of the wishy-washy economy.

Yea, I know these are great words…reality of business life…who’s going to train them…where do we put them…blah, blah, blah.

If we only focus on short-term and not look toward the horizon, how many organizations are going to miss the sunset and not see the dawn?

I was reading about the fed’s Car Allowance Rebate System and started wondering about its applicability to human capital in organizations.

The “cash for clunkers” program in a nutshell: it’s a $1 billion program that provides a voucher of up to $4,500 to help offset the cost of a new fuel-efficient car purchase or lease.  You can only trade in drivable vehicles made in the last 25 years that have been continuously insured by the same owner for at least one year leading up to the trade in, so no junkyard finds or used cars can be bought to be “flipped.”

With all of the layoffs, right sizings, competitive build-downs, reengineering, release of resources, negative hiring, de-recruiting going on (we have lots of terms for “dirty” words, don’t we) , it occurred to me that organizations have their own cash for clunkers program.  Except many of the folks who are being traded in today are not clunkers – even if they were “insured” by the same business owner for the past 10 or more years.

What I’m talking about here are the people who, for one reason or another, are being let go by their organizations because of the perception that they are paid too much, cost too much, are too old, etc.  At the beginning of the year, CNNMoney.com reported that at the end of 2008, 2.6 million jobs were lost; the highest level in more than six decades.  And 2009 ain’t looking so pretty either.  The Washington Post reports that,

“The number of job losses had decreased every month since January before spiking again in June, and economists think it is highly likely that the jobless rate will hit double-digits later this year. A broader measure of unemployment, which includes people working part time who want full-time work and those who have given up looking for a job, has already risen to 16.5 percent. The nation now has the same number of jobs it did in 2000, meaning that nine years of employment gains have disappeared.”

We know that organizations downsize to reduce costs, generate positive shareholder reaction, increase productivity, or to better decision-making – or so they say.  Estimates are that each laid-off employee will cost the company 50% of the person’s compensation and benefits for each week the position is vacant, even if other people are performing those duties.  So, short term, save some cash.  Long term, cost savings are obliterated, especially when new folks (no matter how old or young they are)  are brought back into the job.

More importantly though, what is the cost of this “cash for clunkers’ to our society, nevermind our economy?  I read this statistic – pretty scary – that for every 1% rise in the unemployment rate, the U.S. suffers  36,887 additional deaths, 20,240 heart attacks, 495 alcohol-related deaths, 920 suicides, 648 homicides, 4,227 admissions to mental hospitals, and 3,340 state prison admissions. 

So, who are we helping here folks? 

Our challenge as HR pros is to help our organizations react to outside threats and strategically manage people to help prevent talent flight and the deterioration of morale.  But I believe we have a much larger role to play – shouldn’t we be coaching our business leaders to look at the bigger picture and rather than use a “cash for clunkers” program, employ “cash for care” instead?  You decide.