Top Trends in Human Resources and What You Should Do About it NOW….

In May 2013, the Society for Human Resource Management (SHRM) released an eighty page Workplace Forecast identifying the top HR trends between 2003 and 2013.  Topping the chart, again for the eleventh year in a row, was the high cost of health care coverage.  The other nine contenders for first place are nothing to laugh about.   If you have had your head in the sand, maybe 2014 is the year that will make or break your business.   (Or maybe you’ll retire yourself!) The information age has allowed businesses to share stories of their successes and failures and has created valuable resources for workplace improvements and creative approaches to human resources concerns in business.   If you can’t come up with a novel idea on your own, steal someone else’s!

 Every day I am confronted with business operators who struggle with problems either created by or enhanced by government legislation.   From CEOs who are trying to avoid unionization to Administrators who experience high labor costs due to skilled worker shortages and even CFOs experiencing higher costs and reduced revenues due to government budget cuts.  Can’t a corporation catch a break once in a while?  I guess not in this day and age.  

 SHRM identifies four HR related trends that I would have never even put on the list but can understand why they are there.  All are related to the current state of government whose focus is on expanding employee rights and auditing businesses to bring in income -  to make a bigger government.    Particularly in the business of healthcare.   But that is a focus for another day since this is an “employment law blog”.   So let’s look at those HR trends identified that are causing HR managers to scratch their heads.  And let’s look at some businesses that have taken creative steps to avoid catastrophe.

 

                Three of the top ten trends involve the lack of a skilled workforce.   Either caused by Baby Boomers retiring, lack of new graduates in a specified field or increased global competition for jobs.  A Baby Boomer is  a person who was born during the demographic Post World War II baby boom (thank you Wikipedia!).  Those years were 1946 through 1964. Basically the youngest baby boomers are turning 50 this year and the oldest have been on Medicare for three years now.  Every day 8,000 baby boomers turn 65 years of age.   Only 33% of businesses have analyzed the effect that retirement of baby boomers will have on their business.   The rest of you will be scrambling.  

                Some of the best advice I found in researching this phenomena came from technology professional organizations.  I assume because if they lose their best people, they might as well shut their doors.   But there are lessons that other industries can learn from them. 

1.            Use Succession Planning to insure that as your older, more experienced staff begin to move out, you maintain the same level of knowledge in your organization.   Have your younger staff shadow your older staff to learn what they know.  Developing proper training programs will result in transferring knowledge and information from the retiree to his/her successor.  Waiting until the last few months of a retirees employment to educate the younger staff is a futile effort.    Plan ahead.

 2.            Offer a Mentoring Program where new staff can be coached by more experienced staff making the new staff more valuable, more knowledgeable of your culture and a resource who can replace a retiree.  Hands on work related experience on the job insures a trade off of knowledge which cannot be replaced by checklists and files.

3.            Implement a formal education program for new graduates.   Investing in up-front education insures staff is knowledgeable and trained in the idiosyncrasies of your specific business.  Lower your experience requirements just a tad and provide OJT. 

4.            Invest in educational programs and tuition assistance for work related degrees.   Insure that when a higher level position becomes available due to a retirement, you have a qualified candidate in the pipeline. 

5.            Consider untraditional work arrangements for baby boomers.   Offering baby boomers part time work, telecommuting, or work on an “as needed” basis can supplement the retirement income of boomers while allowing your company to benefit from their skills and knowledge. Being flexible and open minded can be beneficial to both parties.   Let’s face it, baby boomers aren’t retiring gracefully anymore, they are vacationing in Rome, rock climbing in Brazil and skiing in the Alps.   

As nearly 30% of the workforce prepares to depart, Human Resources will need to assess demographics within their organization and plan for future needs proactively.   Don’t wait until it’s too late.