HR Management 101

by David Parkinson on / No Comment

Category: Human Resources

David-ParkinsonSPECIAL GUEST BLOG By David Parkinson, Management Mentor, Mentors.ie

For those establishing a business or making a resolution to refocus on Human Resources “best practices”, there are a few topics to consider based on provisions under Irish employment law.

Employee Status. Employees are secured either via contracts of service or contracts of services.  Only those under a contract of service will be an actual employee that is protected by the full range of employment legislation, while a self-employed person (independent contractor) would be engaged in a contract of services for those providing work in the role of a vendor.

Employee Terms. There may needs of the business that dictate using workers with atypical terms including fixed-term, part-time and temporary employees.  While all terms do not have to be in writing, some conditions, such as method of calculating pay and any sick pay scheme, must be recorded within two months of starting employment.

Compensation. While most experienced adult employees are entitled to the the minimum wage of €8.65 per hour, there are some exceptions including those working that are under 18, apprentices, trainees or those employed by close relatives.  There are also certain industries that require a higher minimum wage, such as those working in drapery, printing, electrical contracting and construction.

Employee Rights. As governed by the Organisation of Working Time Act, 1997, all employers are responsible for providing employees with adequate work hours.  This includes daily and weekly rest breaks, public holiday entitlements and annual leave.  Other leave entitlements for eligible employees could include general health and safety matters along with adoptive, parental, maternity and long-term care situations.

Policies and Procedures. Record keeping is key in having successful HR relations with employees and governmental officials.  During a National Employment Rights Authority (NERA) Inspection a number of documents will be requested including all of the previously stated information along with payroll details, holiday entitlement specifics and any employee-related history of the business.  Other internal policies and procedures should include how to deal with matters regarding absences, grievances, discipline and dignity (anti-bullying/harassment) should also be determined.

Employee Capabilities and the Prevalence of Technology

by Pat OSullivan on / No Comment

Category: Human Resources

If employees and executives are frequently guilty of downplaying HR’s role, often so too is HR in assessing employees’ ability to manage information. Computers first appeared in schools over 12 years ago and today are used by 75 percent of employees to access the Internet for three hours a day on average. Still, many in HR are reluctant to give up basic self-service benefit management tasks that would save a tremendous amount of time and allow them to better address company objectives.

While it is true that online benefits management can be a scary prospect for those who may be less computer savvy, having access to employee benefits online is another way to provide greater employee satisfaction through accessibility and choice. In fact, many employees will expect online access, especially today’s younger generation for whom iPods and IM are part of everyday life.

Self-service HR has become so invaluable that a September 2006 Forrester Research report termed it “an essential core application” for businesses. The report pointed to the ability of Human Resource Management Systems (HRMS) to help manage personnel costs, operate efficient business processes, comply with regulations and manage legal exposures, and optimize the value of human capital.

HR personnel who are currently postponing  the introduction of a self-service HRMS in their business should consider implementing such a system in the near future – not only to provide better value for the company but also to allow them to focus on key strategic tasks that are unique to their role.

The Top 2 HR Management Myths

by David Parkinson on / No Comment

Category: Human Resources

SPECIAL GUEST BLOG By David Parkinson, HR Mentor, Mentors.ie

Human resource management is a complex, multifaceted field that requires professionals to have the ability to juggle priorities and excel at a number of tasks-from the sometimes tedious to the often strategic. Exceptional managers know what to hone in on and what to delegate, stay on top of the latest trends in compensation and always have a finger on the pulse of employee relations.

Being in HR requires having a number of talents and brings with it the potential to make a big impact on the lives of individuals working for the company-its most important assets. Despite the importance of the role, often HR managers are left feeling less than appreciated, when their value as a strategic partner or their contributions to the bottom line are questioned.

HR’s Role: Strategic or Tactical?

Whether dictated by management, assumed by the practitioner, a function of “fighting fires” on a daily basis, or a combination of the above, HR’s role in the organization is all too often tactical over strategic, often to the dissatisfaction of practitioners themselves. This point is illustrated by USC Professor Edward E. Lawler III, who noted that HR professionals reported spending only 23% of their time in 2005 “being a strategic business partner” – no more than they reported in 1995. And line managers, he found, said HR is far less involved in strategy than HR thinks it is.

Though company culture often sets the stage, HR practitioners must actively seek key areas for improvement for themselves, their roles and for the company and take action to defend their role where possible.

HR : Cost Center or Cost Savings?

The view of HR as a cost center may be one of the hardest to overcome. How executives view the HR department and its role often plays a huge part in its perception and function, including whether the job is managed in-house to begin with. Frequently HR must take every opportunity to be its own proponent in providing greater education on the value of its offerings.

Other companies realize that HR managers contribute more directly in taking care of their most valuable assets, handling a range of responsibilities, including: recruiting; interviewing; providing, presenting, and delivering medical, dental, vision, life, and other ancillary benefits; job training; instituting programs for retention and growth of employees; establishing tools and guidance for management reviews; and reviewing and selecting technology to support HR functions, to name a few. Each of these, in fact, contributes greatly to the bottom line when all hard and soft costs of doing business are considered.

Group benefits, for instance, are a major part of the compensation employers offer to entice and retain productive and reliable employees and maintain the organization’s competitive nature. The methods by which these compensation elements are derived and presented are key to a company’s success. In retaining good employees, companies can save thousands, if not more, in rehiring and training costs. HR must be prepared to justify its case with a strong knowledge of its employee base and a rationalization of these types of obvious and not so obvious costs.

Not All HR Tools Are Created Equal

by David Parkinson on / No Comment

Category: Human Resources

SPECIAL GUEST BLOG By David Parkinson, Human Resources Mentor, Mentors.ie

One way that HR can heighten its role and increase strategic input is by using technology to better access, manage, and report on information. But, as with any industry, it is hard to cut through the clutter and hype surrounding proposed solutions to select the best technology to meet organizational needs. Though one provider may declare it offers self-service capabilities, for instance, it may not be the same level needed or offered by others, providing disappointing results. For an HR manager that has met with false promises in the past, doing the homework on proposed solutions is even more important.

Selecting the best tools requires assessing key factors, such as the ability to:

  • Grow and scale with the organization
  • Provide full ownership of the data
  • Simplify processes through wizards
  • Provide full security for backups, servers, added protective layers, etc. and transfer data within secure encrypted sessions, secure sockets layer (SSL) (128 bit encryption), or be encrypted prior to being sent
  • Provide authority to decide who will be allowed access and to what degree
  • Offer a robust eligibility engine for company enrollment activities and rules
  • Link with carriers with clean, validated transfers, beyond basic ANSI files
  • Offer 24-hour service from a direct contact that can help.

Though managing human resources is certainly not without its challenges, perhaps individuals are drawn to this role in the first place because of “the challenge” and the opportunity to make a difference at companies and in the lives of individuals. Frequently, HR managers can accomplish more and further prove their worth to the company by relying more heavily on employees and technology that can help them to focus on the most important issues.

Aligning Your Incentive Programs

by David Parkinson on / No Comment

Category: Finance, Human Resources

SPECIAL GUEST BLOG By David Parkinson, HR Mentor, Mentors.ie

Within the new business climate the subject of “Business Intelligence” has become a new buzzword within the community as well as some other “new” words that have been around for a long time such as “data mining”…but the problem with these buzzwords is that they usually are clouded in mystique around a certain specialty, such as “technometrics” or some other phrase of the day. But in operations management a majority of the work is performed by those in operations, and as a result the data to drive these new areas of inquiry is present within their own daily tasks. So how does an organization utilize these front line employees and turn them into data-mining business analysts with their day to day grind? The answer in short is to link their recognition toward the development of deeper level analysis and data driven problem solving.

The only way to motivate employees is to link their recognition to a set of criteria, because in the end you can only manage what you focus on. So employee’s recognition and reward must be focused on those items that are in alignment with the things that are deemed important to the employer. In these days of lean profit margins for commodities the low hanging fruit has been harvested by previous efforts and new relationships and deeper levels of data must be observed to drive out waste and harvest improved profitability. Every employee must be rewarded and judged on their ability to think analytically about the work they do as a business, and this involves data.

Data must be at the cornerstone of the recognition program as the “acid” test through which everything must pass, and this has two distinct reasons.

1. Without data profitability can be suspect and interpreted in several different ways.

2. If the data collection method is not present to meet the needs of the analyst new data collection methods will spring into existence and the organization will have another lens through which it can evaluate itself and its environment.

This creation of new data collection driven through operations will push the organization toward a better understanding of how it can collectively impact its world, and the appropriate recognition system will allow the employee to feel as if their contribution was directly tied to the value of their effort in discovering the solution and highlighting the relationship or issue. In the new reality the department is a business, and each employee is a franchise in that business, while they have been handed a system, their interpretation of the system will drive a stronger business unit.

How to Retain Employees During Times of Change

by David Parkinson on / 104 Comments

Category: Human Resources

Retaining talented employees is one of the topmost priorities of employers today. Without the right people with the right skills, your business can’t consistently fulfill your customer’s needs. The challenge is not only to attract the best talent but also to retain them.

Rising opportunities for career development, lifestyle decisions, job mobility, unbalanced work life, poor mentoring and stress are some factors which influence and individual’s decision to continue or quite. Among other things, a retention strategy demands respecting employees’ concerns right from their entry into the organization till their retirement. It encompasses the organization’s ability to provide the best of work climates.

What Troubles Employees?

Employees expect from their employers to:

  • Provide induction
  • Create a good work environment
  • Motivate them to work
  • Train them
  • Provide a suitable compensation package
  • Implement reward strategies
  • Counsel them
  • Hold affable exit interviews

An appropriate HR strategy alone can satisfy employee expectations.

Where are companies going wrong in these times of change?

Too many companies approach the retention of key employees during disruptive periods of organizational change by throwing financial incentives at senior executives, star performers, or other “rainmakers”. The money is rarely well spent!

There is a better and less costly approach to employee retention—and one that will serve companies well as they merge, restructure, and reorganize to seize strategic opportunities as the economy picks up. It starts with identifying all key players, but targeting only those who are most critical and most at risk of leaving. These people are then offered a mix of financial and nonfinancial incentives tailored to their aspirations and concerns.

Three suggestions for Retaining Employees

  • HR and line managers need to work together during times of major organizational change to identify people whose retention is critical. Yet too often companies simply round up the usual suspects—high-potential employees and senior executives in roles that are critical for business success. The “hidden gems” might be found anywhere in the company: a Business Development manager who is nearing his retirement age and is no longer on the company’s list of’ high potentials”. Even if the employees’ performance and career potential are unexceptional, their institutional knowledge, direct relationships, or technical expertise can make their retention critical.
  • One-size-fits-all retention packages are usually unsuccessful in persuading a diverse group of key employees to stay. Instead, companies should tailor retention approaches to the mind-sets and motivations of specific employees.
  • Financial incentives play an important role in retention—but money alone won’t do the trick. Praise from one’s manager, attention from leaders, frequent promotions, opportunities to lead projects, and chances to join fast-track management programs are often more effective than cash. Leadership opportunities are a powerful incentive in any sector.

When financial incentives are required, it is important to design them appropriately and use them in a targeted way.

Closing Thoughts

Targeting retention measures at the right people using a tailored mix of financial and nonfinancial incentives is crucial for managing organizational transitions that achieve long-term business success; it’s also likely to save money.

Maintaining Company Morale in Turbulent Economic Times

by David Parkinson on / No Comment

Category: Human Resources

SPECIAL GUEST BLOG By David Parkinson, HR Mentor, Mentors.ie

When the going gets tough, the tough get going… or so they say. But if your company has been going through the rough for some time – managing costs, asking staff for concessions, delaying bonuses, reducing training and hiring budgets – the general effect is often lowered morale.

Although you may not believe your company is experiencing a morale problem, consider that low morale demonstrates itself in a number of ways, including – increased sick leave or personal time taken, decreasing performance, higher number of customer complaints, higher rates of company theft or shrinkage, increased turnover amongst staff, decreased communication between managers and employees, or simply a lack of interest and enthusiasm amongst staff.

Faced with such a list of symptoms, it is easy to see the connection between low employee morale and a direct effect on your company’s bottom line. We coach our clients to consider employee morale as one of the key performance indicators for the company’s leadership team. Careful consideration of the impact of strategic decisions on employee morale will directly influence the profitability of the company.

Some of the simple tips we give leaders to improve employee morale include:

  1. Constant Communication – If your company only has a general meeting or performance reviews once a year for staff, your employees have 11+ months of uncertainty in which they’re left wondering how they valuable they are to the company, and how the company is doing overall. Increasing the frequency of communication and feedback is key to keeping employees engaged with the company.
  2. Transparency – Is your company’s rumour mill working against you? Does it seem like negative news escalates and there’s an atmosphere of fear in your office? Encourage transparency amongst your managers – set guidelines for what performance indicators they can share with their staff and advise them that they should share both good AND bad news with staff. Often times, the facts of a negative outcome are far less scary to staff than the rumour itself.
  3. Lead By Example – Negative company performance affects the morale of leaders just as much as it affects the employees, however this is an opportunity to demonstrate leadership and turn around the situation single-handedly. If absenteeism is skyrocketing, consider postponing your own vacation until later in the year. If your managers seem apathetic or less communicative than normal, make yourself more accessible to them simply by walking through the office twice per day. If company turnover is high, look for ways to reward long-term employees publically.

Every company is different, and these simple tips may not be enough to turn around the tide of negative emotion in the workplace. If you fear you’re facing an impending exodus of important intellectual assets, consider working with a Cognito Management Consultant to review your company’s morale and develop a plan to improve it, and your bottom line.

Seizing Competitor HR Assets

by David Parkinson on / No Comment

Category: Human Resources

SPECIAL GUEST BLOG By David Parkinson, Human Resources Mentor, Mentors.ie

Leveraging Industry Failure For a Strong Internal Team

One of the sad truths in today's economy is that a large number of industries aren't going to weather the storm.

When you see or hear that a major competitor has left the marketplace, your initial reaction may be one of elation. More consumers will be up for grabs and you have a strong chance of converting them to your product or service.

Often unconsidered is the fact that the internal knowledgebase of your competitors is also on the auction block. With unemployment rates high, many well qualified people are seeking work, creating a "buyers market" for fantastic talent. The employees of your former competitor are aware of the difficulties of job seeking and are very likely to view any overtures on your behalf positively. 

 Leveraging HR Assets

The first step to knowing how to best use this advantage is knowing what you need. 

Carefully assess the human resources that you have available to you in your current organization and identify key points that you feel should be strengthened for better success in the future. 

Consider whether you should "hire up" (replacing current employees with better qualified talent for the same price) or "muscle up" (adding new talent to an already strong team for broader depth).

Broadcasting Opportunity

In a time when media is full of financial doom and gloom, it's important to demonstrate (both for prospective employees and investors) that you're still going strong. 

Are you suddenly the only company in your industry? Perhaps you should send a press release announcing that fact. Has your company maintained profitability? A video broadcast on your homepage should drawn attention to this. Is your employee turnover rate negligable despite the downturn? Mention this is a job posting for your ideal candidate.

Take a few minutes to post positions for your ideal candidates on the internet. For minimal cost, it's worth putting the message out that you're seeking to hire great talent… and drawing competitor talent towards you. Inform your HR staff to specifically look for candidates that list your former competitor on their resumes.

Turning Enemies Into Friends

When you've been contacted by a former competitor's employee, the work is just beginning. In a competitive field, your former-competitors-employee-now-your-prospective-star-talent must be "turned" by more than simply a new name on the paycheck. 

Ask your new prospect what they liked and disliked about thier last employer. Ask them what they felt were the challenges that the previous employer couldn't overcome (and ultimately lead to business failure). Ask them what they would have done differently, and what internal obstacles they faced that prevented them from doing those things.

Finally, your challenge is to convince the new prospective employee that your company was the better employer choice all along. Illustrate your successes. Sell your culture. Make it a better fit, and you will be gaining not only valuable talent but also a life-long proponent for your company's success.  

Whether you're recruiting for former competitor employees or you're simply recruiting for a stronger internal team, Mentor.ie can provide you with guidance and assistance with your recruitment strategy in today's marketplace, to help you reap rewards not only today but for years to come.

David Parkinson, HR Mentor for Mentors.ie

by Micheal O Callarain on / No Comment

Category: Human Resources

David Parkinson, HR Mentor at Mentors.ie talks about why mentoring is so important for SME businesses, and how his 40 years experience at the executive level in HR offers a solid sounding board to Mentors.ie clients.

© 2010 Mentors.ie All rights reserved.

Powered by Wordpress