January 18, 2012

Turnover: HR Metrics – How and What to Measure

Filed under: General HR Buzz,Hiring & Jobs,Performance Management — Tags: , — Joyce @ 4:52 pm

It seems that January is the time for measurements, especially if you are like many of us who begin an exercise regimen in hopes of reducing our waistline measurement (my personal goal), or perhaps increasing our bicep measurement (if you are like my 16-year old son).  The world of HR is no different.  We often begin the year by defining our goals and objectives.  The last few years, there has been increased focus on measuring the value of HR.  Is HR merely overhead, or can our goals and objectives be measured and considered an integral piece providing input to the strategic direction of our organization?

I like to think the latter is true.  Although many of the processes and services we deliver are difficult to measure, I believe there are many areas that can be evaluated and assigned a quantitative value.  That is true in the area of turnover.  As our 1st quarter HR theme is turnover, we will be looking at it from various perspectives, building on what Olivia posted earlier this month relating to the costs and consequences of turnover.

HR metrics should be looked at as opportunities to provide valuable decision making data, assess internal controls, and improve performance.  However, metrics should be looked at as more than data.  The real value arrives when we can take the quantitative data and look at it from a qualitative perspective.   A simple way to look at the difference is as follows:

  • Quantitative – measures how much there is and usable for simple factors; should be compared to a “standard”
  • Qualitative – tells you what you are measuring and is reflective of actual workplace behavior

Olivia’s blog provided a calculation for turnover rate, which is an example of a quantitative metric:

  •  Dividing the number of terminations by the total employee census

The qualitative metric regarding turnover would take this data and complete the following assessment:

  •  Look at who left and why, digging into additional information such as what departments/managers had turnover, was it new hires or long-term employees, etc.

What are some other HR metrics that one might want to include when assessing turnover?  We will be expanding on this topic in our monthly whitepaper.  I believe you will be surprised at some of the new metrics that are emerging in the area of HR.  I hope you already receive our whitepapers, or if not you can sign up by clicking here.   Remember they are free (which results in a quantitative metric of $0)!

 

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January 11, 2012

A Holiday Already? For 3 of 10 Employers, That Is the Case!

Filed under: General HR Buzz — Joyce @ 12:09 pm

With Christmas already a distant memory, many employees are probably ready for another holiday.  Well, you are in luck if you work for 31% of the employers who observe Martin Luther King Day, which is Monday, January 16.  Organizations with a union presence are more likely to observe the holiday, along with federal employers.

In case you are wondering when Martin Luther King Day became an official holiday, keep reading for a little history refresher.  Martin Luther King is best known for his nonviolent activism in the civil rights movement, which successfully protested racial discrimination in federal and state law.   Following his assassination in 1968, a campaign began for a federal holiday in King’s honor.  It wasn’t until 1983, however, when it was signed into law by Ronald Reagan, and first observed on January 20, 1996.  At first, some states resisted observing the holiday as such and even used alternate names or combined it with other holidays.  In 2000, it was officially observed in all 50 states on the 3rd Monday in January.

It may be said that Martin Luther King brought to light many issues which resulted in changes in HR laws regarding discrimination and diversity.  Whether or not your company observes the day as a paid holiday, it’s a great time to reflect and remember some of the quotes from Martin Luther King.

“I have a dream that one day this nation will rise up and live out the true meaning of its creed: “We hold these truths to be self-evident: that all men are created equal.”

From the “I Have a Dream” speech, Aug. 28, 1963

“We will have to repent in this generation not merely for the hateful words and actions of the bad people but for the appalling silence of the good people.”

From “Letter from Birmingham Jail,” April 16, 1963

“From the prodigious hilltops of New Hampshire, let freedom ring. From the mighty mountains of New York, let freedom ring. From the heightening Alleghenies of Pennsylvania, let freedom ring. But not only that: Let freedom ring from every hill and molehill of Mississippi.”

From the “I Have a Dream” speech, Aug. 28, 1963

“Shallow understanding from people of good will is more frustrating than absolute misunderstanding from people of ill will.”

From “Letter from Birmingham Jail,” April 16, 1963

 Source:  Bloomberg BNA’s Survey of Holiday Practices

 

 

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January 10, 2012

Word Choice Makes or Breaks the Customer Experience

Filed under: General HR Buzz,Management Practices — Tags: — Olivia @ 6:30 am

If you have ever had contact with another human, chances are good that you’ve been on the giving or receiving end of customer service. Years ago, when I was a customer service representative in a financial institution, my supervisor introduced us to the “Pickle Principle.” If you’re not familiar, here’s a rundown of the story: Bob Farrell (owner of Farrell’s Ice Cream stores in the 60s-70s) received a letter from an unhappy customer. The customer always asked for (and received) one extra pickle slice on his cheeseburger – 2-3 times a week for years. On the day in question, he made his usual request and the waitress told him she could bring a side of pickles for an extra charge. After consulting with the manager, she told him she could sell a single pickle slice for a nickel.

Of course, this story is much bigger than the pickle slice. Mr. Farrell coined the phrase “Give ‘em the pickle!” as a way to say “Find a way to give customers what they want.” I can still hear these words whenever I have the opportunity to work with a client. Unfortunately, we have all had an experience that equals or exceeds the aforementioned pickle problem.

I came across a blog by Michael Hess on MoneyWatch that promised to give me the six best words in customer service. He made a great point about the ultimate goal of the customer service experience:

“The goal, of course, is to make the customer as happy as possible with the service experience, even if the outcome isn’t exactly as she had hoped for. It is, in fact, possible for a customer to have a positive feeling about a company even if she doesn’t get what she wants. And that is where words make a big difference.”

Among Michael’s tips include: using active words (“I will…” vs. “I can…”); getting in touch with genuine compassion and empathy for the customer; maintaining a cheerful and natural manner in speaking to customers.

I believe this is all great advice. All of these tactics only work if the individual is genuine and not forced, in their interaction with the customer. As customers, we have had enough negative experiences that our expectations are often low. Positive words can make a huge difference in your interaction with a customer. For example, “Let me get back to you on that,” vs. “I am happy to help. I will research this issue and call you back by 3:00 p.m. this afternoon.” Which would make you feel better about the interaction?
For more, including the six words to improve your customer experiences, read the blog here.

More about the Pickle Principle here.

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January 9, 2012

Do You Know What Today Is?

Filed under: General HR Buzz — Joyce @ 9:40 am

To start off with, today is Monday morning and for many of us it is the first full work week of 2012.  If that’s not enough to get you motivated, it is also National Clean Off Your Desk Day.  Yep, not only do you have to clean up after the holidays at home, but “clean up” also applies to the workplace. 

Personally, I work best when my desk is organized.  A clean desk helps me prioritize and focus on the task at hand.  Experts say that the average person uses just 20 percent of the stuff on their desk to accomplish 80 percent of their work.  Looking at my desk, I would have to agree.

When purveying your desk, one item you can’t ignore is the computer.  Although your desk may look neat and tidy, what about all those files and folders on your computer desktop, and that pesky message that keeps reminding you your in-box is full?  Well, good news because it is National Clean Up Your Computer Month (which gives us a few more days to procrastinate).  In one of my past places of employment, any emails over 30 days were automatically deleted.  Although that sounds pretty harsh, it kept me organized.  In the world of HR, there are certain items we need to save so it was essential from a compliance standpoint that I remain organized.

You can find these and more facts about America from the U.S. Census Bureau, online at www.census.gov.

 

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December 30, 2011

HR Fact Friday: HR Trends in 2012

Are we really just one week away from the turning of the calendar to the year 2012? We work in and provide services to an industry [HR] where someone on the outside looking in may not think much ever changes. HR professionals know differently. Benefits administration, employment law, integrated talent management solutions, compensation programs, etc., etc. The list goes on. I would venture to say that every year at least one major HR program changes dramatically in most every company. And this goes equally for companies providing technology and consulting solutions to the HR marketplace like HRN.

So what predictions does Bersin & Associates see on the short horizon for 2012? According to a report published in November, 2011 and partially reprinted on SHRM.org, the following trends and changes are predicted to occur that will affect small businesses:

  • Deep integration of talent acquisitions—recruiting and staffing—into talent management.
  • Social tools and ads for finding talent will grow dramatically in 2012, forcing staffing agencies and job boards to re-engineer their offerings.

(more…)

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December 28, 2011

Here We Go Again…Another New Year Around the Corner!!

Filed under: General HR Buzz — Joyce @ 11:13 am

Here we go again.  Just around the corner is the beginning of another year – 2012.  I have completed my long list of personal resolutions for next year (narrowed down to a more manageable number of items to tackle.)  I’ve also been thinking about my work resolutions for next year and have come up with a few.  Some of these continue to carry over from one year, where others are new items.  So here they are:

  • Only have a meeting if it is necessary to have a meeting – How many times have you been in the meeting trap to have regularly scheduled meetings week after week without any particular agenda?  There are times when it is critical to have a meeting with all vested parties involved in the conversation, but there are times when an email will also serve the same purpose without interrupting the work flow of others in the office.
  • Learn to say “no” – I’m a pleaser, always have been a pleaser, and continue to be a pleaser.  So it is difficult for me to say no when asked to take on an additional task.  At the very least, I am vowing to say “no, not now” but I am also committing to say “no” in an effort to be honest to myself and my colleagues about what I can accomplish timely and professionally.
  • Delegate when it makes sense – I know I am not the only person that can complete tasks assigned to me.  By letting others take charge or participate in projects, I am helping the company by allowing other colleagues to gain new experiences.  It is critical that we provide more knowledge sharing opportunities proactively.  Additionally, oftentimes a new perspective may shed light on a more efficient process.

These are a few items I have on my list for next year.  What are yours?  I’d like to hear so please share!!

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December 21, 2011

Reflections on Job Satisfaction

The end of the year is a time of reflection for me.  I look back on the year and typically do a mental review of the activities and occurrences in my personal life and my work life.  Oftentimes I wish I could have a few “do-overs”, but overall I am fortunate that I have more occurrences I would like to relive than do differently.  As I reflect on my career, some years I may have questioned if I was in the right field.  Other years I may have questioned if I was with the right company and satisfied with my job.  I have to admit, I tend to be fairly analytical so these mental discussions sometimes became rather intense and oftentimes I would end up with more questions than answers.

When it comes to job satisfaction, this is an area that is very important to most employees.  With the onset of a new year, and based on headline news the possibility of new jobs, many of your employees may be reflecting on their personal job satisfaction.  The Society for Human Resource Management (SHRM) recently released the 2011 Job Satisfaction and Engagement Research Report.  Good news!  The research showed the 83% of U.S. employees reported overall satisfaction with their current jobs.  Where the room for improvement comes is in the area of career development and advancement opportunities.  Only 40% of employees were satisfied in this area.

As employers, this should concern us.  Mark Schmit, SHRM’s vice president for research states “As we slowly come out of the recession, the war for talent will be back on.  When that happens, there is the potential for turnover given the dissatisfaction that employees seem to have with the real or perceived lack of advancement opportunities.”

When you reflect at the end of the year, it would be a good idea to think ahead.  What are you going to do as an employer to ensure your employees are satisfied with their jobs?  What opportunities exist in your company for career advancement and development?  We’d like to know what you are doing in your organization, so please share.

Source:  SHRM 2011 Job Satisfaction and Engagement Research Report

Other Sources:  WorldatWork

 

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December 20, 2011

Are You Still Texting and Driving?!

Filed under: General HR Buzz,Management Practices — Olivia @ 10:07 am

Last fall, I wrote a blog about the Network of Employers for Traffic Safety’s Drive Safely Work Week during the first week of October.  Although I do not have a company-provided mobile device and do not travel for work, I do have a personal mobile device.  Does your company have a mobile device use policy in place?  More importantly: is it being enforced at all levels of the company?

Recently, the National Transportation Safety Board (NTSB) met to discuss an accident report related to an August 2010 collision involving two school buses, a bobtail, and a passenger vehicle.  The end result of the accident included two fatalities and 35 injured.  The NTSB investigation concluded that weather, drugs or alcohol, mechanical condition of the vehicles, and highway design were not to blame in the accident.  The most likely cause: the driver of the passenger vehicle had been sending text messages at or near the time of the collision.

Among its other recommendations, the NTSB recommends the following:

(1)    Ban the nonemergency use of portable electronic devices (other than those designed to support the driving task) for all drivers;

(2)    Use the National Highway Traffic Safety Administration model of high visibility enforcement to support these bans; and

(3)    Implement targeted communication campaigns to inform motorists of the new law and enforcement, and to warn them of the dangers associated with the nonemergency use of portable electronic devices while driving. (H-11-XX)

Don’t wait for your state to implement a ban, create and enforce a mobile device use policy that is applied to all employees.  Here are some tips:

  • Ban texting and emailing while driving, unequivocally.
  • Consider a total ban on cell phone use while driving, per the NTSB recommendations.  Be sure your wording is clear that you are banning all cell phone usage while driving.  If you opt not to implement a ban, require employees to use hands-free technology and ban usage during dangerous situations such as adverse weather or high traffic.
  • Explain employee liability, including a statement that employees bear sole liability from tickets or accidents arising out of cell phone use while driving.

More information:

NTSB Press Release

Additional Source: HRLaws.com

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December 19, 2011

How Do I Know if Salary Survey Data is Reliable?

Filed under: General HR Buzz — Joyce @ 9:26 am

We all know that salary surveys are a key part of the process for making salary decisions.  But do we really know how to determine if salary survey data is reliable?  With the fairly recent access to salary data on the internet, there are even more reasons to question reliability of salary information which may be end up on your desk from coworkers.

You may have discovered that different salary surveys often provide conflicting or widely varying data. This is one of the main reasons a market based compensation system (one that is developed strictly from salary surveys) is difficult to maintain or administer. The conflict comes from three factors associated with collecting the data:

1)      the size of the sample;

2)      the closeness of match in the jobs being surveyed; and

3)      the selection of the organizations responding to the survey.

These factors are going to be discussed further in our December whitepaper, which will be published soon.  If you aren’t signed up for our whitepapers, please go to www.hrnonline.com.  You’ll receive monthly whitepapers referencing topics of importance to you and your organization.  And best of all, they are FREE!

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December 14, 2011

Weekly Wednesday Acronym – Another One with Potential Class Action Exposure!

Filed under: Compliance,Discrimination,Employment Law,General HR Buzz — Joyce @ 3:20 pm

I’m sure you are aware of the Fair Credit Reporting Act (FCRA), which regulates the scope and flow of information between “users” and “furnishers” of consumer information.  Not only does the FCRA regulate the exchange of consumer credit information between the credit bureaus and creditors in connection with mortgage lending, but it also regulates the exchange of consumer information between employers and credit reporting agencies that provide background reports.

These regulations are triggered when an employer orders a background check report, criminal, or motor vehicle records check.   For many years, it was relatively uncommon to see lawsuits or FTC enforcement actions against employers for alleged violations of the FCRA. Now, times have changed. In the past few years, there has been an unprecedented spike in class action and single-plaintiff lawsuits against employers for alleged violations of the FCRA. As a result, compliance with the various provisions of the FCRA is essential for all employers that use background reports even in part to make hiring and employment decisions.

Earlier this year, the Federal Trade Commission (FTC or “the Commission”) staff published a report entitled, 40 Years of Experience with the Fair Credit Reporting Act: An FTC Staff Report with Summary of Interpretations.  This report highlights critical portions which “provide important guidance on issues of statutory interpretation”.

As such, this is another area that we need to become familiar with and watch our P’s and Q’s.  I’m going to add this to my stack of reading, at least for a cursory review, so I will be familiar with what the findings are suggesting in terms of compliance.  If you would like to review the report, you may find it by clicking here.

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