HR Strategy Archives - Strategic HR

Succession Planning: How Can We Prepare for Exits of Key Employees?

Published January 10, 2023
in HR Strategy

HR Question:

In light of The Great Resignation, I’ve been hearing more and more about the importance of succession planning should any of our key employees or leaders resign. How can our organization make sure we’re appropriately prepared for succession planning so we are well-positioned if we should lose any key players?

HR Answer:

The exit of a key employee can certainly result in turbulence within a business. Lack of preparation in filling such an important role can fuel skepticism about the future of the company among both internal employees and external stakeholders. Organizations can help temper such concerns and instability through succession planning.

Benefits of Succession Planning

Thoughtful succession planning leads to numerous benefits. Organizations that hire their leaders internally may benefit from a better quality of hire than those who look externally. According to a study at the University of Pennsylvania, although internal hires are typically paid less than external hires, they tend to perform better and have lower turnover rates. The success of internal hires may be in part attributed to a deep understanding of the business and culture, along with cultivated relationships amongst the organization, its partners, and customers.

Succession planning also serves to foster goodwill among current employees who see the organization’s faith and investment in its internal talent. Especially considering the challenges in today’s talent market, succession planning may help to increase employee loyalty and tenure within an organization.

To begin succession planning, it is important to consider the strategic direction of the organization. You may pose the questions: what roles will we need to support the future goals of our organization? What kind of growth is expected in the next 1-5 years? Determining the trajectory of the organization will better inform the roles on which to focus your succession planning efforts. Executive leadership and directors constitute critical roles that typically merit inclusion in the process. However, organizations should also include key individual contributors who possess highly specialized skills or knowledge in their succession planning efforts.

Conducting a workforce assessment

Once critical roles are identified, it is important to conduct a workforce assessment to consider factors that may affect the stability of these key roles, such as incumbent retirement eligibility. During this portion of the process, it is also essential to identify members of the internal talent pool who may be able to fill these critical roles, with the right development opportunities. You should consider the current performance of these employees, as well as their future potential. Finally, when evaluating your internal talent pool, you will want to ensure that your pipeline of emerging leaders is diverse and can bring distinct perspectives to these key roles.

Identify gaps in knowledge and skills

Next, you will want to identify any gaps between the knowledge and skills possessed by the incumbents of critical roles and those in the talent pipeline to succeed them. Once these gaps are determined, leaders can begin creating career development plans in partnership with high-potential employees. Such career development plans may include shadowing a key employee, engaging in a mentorship program, or participating in a stretch assignment for exposure to new business functions, geographies, and customers. A career development plan may also include courses or seminars to help hone essential technical or soft skills. Finally, as part of their development process, high-potential employees could be invited to participate in board meetings for additional exposure to strategic planning initiatives.

It is important to note that succession planning is not a one-time initiative, but rather constitutes an ongoing process by which the internal talent pipeline is continually identified and developed. Organizations that implement thoughtful and strategic succession planning will benefit not only from increased stability during the exit of a key employee, but also from enhanced loyalty of employees who see the organization’s investment in its internal talent.

Thank you to Christine McLaughlin, HR Business Advisor, for contributing to this HR Question of the Week.

Whatever HR challenge your business may be facing, Strategic HR Business Advisors can help! Whether it’s by developing a robust internal succession planning process, creating or improving your performance management system, or developing a comprehensive strategic business plan through our HR Strategy services, our team of experienced consultants is waiting to partner with you. Contact us to talk through your HR Strategy needs.

The Top Five Handbook Policies to Include This Year

Last Updated April 13th, 2022
in HR Strategy, Legal Compliance

HR Question:

We’re in the process of reviewing our handbook for the year and want to make sure that we’re including policies that reflect the talent we’re trying to attract. What are some of the top policies we need to include in our handbook?

HR Answer:

It’s important to review your handbook at least once a year to ensure that your policies are up to date, inclusive, and reflective of the environment in which your organization operates. Especially after the COVID-19 pandemic, many companies found the need to update their handbook policies to reflect multiple changes that occurred in the nature of their work and surrounding landscape. Some of the top policies that organizations may need to include are:

Managing non-exempt time when remote
Managing overtime
Taking into account the impact of laws on where the employee works (i.e. payroll taxes, meals, breaks)
How to handle PTO with remote workers
Safety and workers’ compensation if injured while working remotely

Remote Work Policy

Through our Generations at Work Survey, we discovered that 56% of all respondents were looking for a hybrid work situation. In order to meet the needs and desires of potential candidates, this may be an opportunity to do a complete audit of your job descriptions to see which can be remote, partially remote, or if a schedule can be created to allow for a hybrid opportunity. As you create new roles, consider creating roles that can be done entirely remotely in order to open up your talent pool beyond your geographical region.

EEO Policies

Equal Employment Opportunity (EEO) policies make it clear that you are an inclusive and welcoming workplace. These policies identify forms of discrimination, such as against a person’s race, color, religion, sex, national origin, disability, or genetic information, that the federal government will not tolerate. Most employers with 15 employees or more will be legally held to these requirements, so it’s important to ensure that your handbook reflects this legal requirement.

Handbooks may call these policies different things, but at the end of the day, these are essential policies to include to ensure an inclusive workplace. Beyond the legal obligation, ensuring that your organization promotes a positive work environment that doesn’t tolerate discrimination is important to weave into the fabric of your organizational culture. It is also a critical component in talent attraction and retention.

Anti-Harassment Policy

Similar to including an EEO policy, it’s important to include an anti-harassment policy to define and maintain a safe environment. Creating a work environment that is physically and emotionally safe for all employees goes beyond detailing what individuals should or should not do. Although it is important to identify unacceptable conduct and behaviors, it is also critical to provide employees with a clear and protected path to raising concerns about their safety or physical/emotional comfort.

Anti-harassment policies clearly outline the definition of harassment, the process for reporting incidents under this umbrella, and the steps that may be taken after reporting the incidents. Additionally, these policies should strictly prohibit any form of retaliation to ensure individuals feel protected and encouraged to bring concerns forward for the betterment of themselves and your workplace.

Employee Referral Policies

In a tight and candidate-driven market, employers are pursuing any and all avenues to find the talent they need to meet business objectives. One way to do so is by implementing an Employee Referral policy to encourage current employees to refer individuals who they think may be a fit for the organization. Utilizing employee referrals can be among the most successful strategies of recruiting culture-aligned, qualified, long-lasting talent for your organization. Referral fees can range from $500 to $30,000 (or more), depending on the industry, the level of the role, and the cost that the organization may expect to spend recruiting candidates through their recruiting team or an outsourced solution.

A successful policy will be sure to detail the referral fees, the process in which employees should refer candidates, and the timeline associated with any potential referral fees or retention bonuses.

Inclusive Policies for Women

Throughout the COVID-19 pandemic, women left the workforce in droves. As the economy and the workforce landscape continue to recover, women are slowly returning, although not at the rate at which they left.

Between the need for talent and the goal of an inclusive workplace, this is a key opportunity to review your handbook to ensure that there are inclusive policies built in to create a welcoming environment for all individuals, including women. Key policies to include in this case would be:

Flexible scheduling (which would be attractive to all candidates from all walks of life)
Lactation policies, such as the set up of a lactation room, privacy, duration of accommodations, and more
Maternity and/or paternity leave policies
Dependent care HSA funds to allow individuals to contribute funds toward daycare costs

For inspiration on how to structure the policy, consider reviewing the Kentucky Pregnant Worker’s Act for guidance.

Thank you to Mary Mitchell, MBA, SPHR, CHRS, and Samantha Kelly for contributing to this edition of our HR Question of the Week.

As the workplace landscape continues to evolve, employee handbooks and policies must evolve with it. Strategic HR can help you update and revise your handbook to ensure that it is compliant and reflects the environment your organization operates within. To learn more, request a handbook quote today.

Back-to-School: Frequently Asked Questions about Leave under the Families First Coronavirus Response Act (FFCRA)

Last Updated November 15th, 2021
in COVID-19, HR Strategy

Special thanks to the HR Pros at the HR Support Center for sharing their expertise regarding Back-to-School leave requests!

Q: If children and their parents can choose between in-person schooling or online schooling, can we deny leave to employees who choose online schooling?

A: We don’t know yet. EFMLA can be used when a child’s school or place of care is “closed,” such that the child cannot be there in person. This might suggest that if the option is available to attend in-person, that those choosing online school would not be eligible for leave. However, we expect that many school districts will need a certain percentage of students to take classes online to make in-person school possible at a sufficiently reduced capacity. In effect, these schools will be “closed” to a certain portion of the student body and it may or may not matter whether the parents chose the online option. We expect guidance from the Department of Labor soon that will answer this question definitively.

Q. If kids are going to school in-person two days a week and doing school from home three days a week, do we have to give a parent three days a week off or can we refuse intermittent leave?

A. If you’re in the Southern District of New York, you must grant intermittent EFMLA if that is what an employee needs and asks for. That district includes the counties of Bronx, Dutchess, New York, Orange, Putnam, Rockland, Sullivan, and Westchester.

In the rest of the country, the answer is not clear, but we certainly recommend providing intermittent leave (as does the Department of Labor). Employees with children are in desperate need of flexibility and understanding right now and refusing a request for intermittent leave may lead to low morale, low productivity, or the employee quitting.

Keep in mind that not all employees will want a full day off just because a child is doing school from home—many may request an hour or two in the morning and an hour or two in the afternoon. Being open to these kinds of requests should help you maximize productivity (as much as possible under tough circumstances) and reduce turnover.

Q. Can we set up childcare or tutoring in the workplace?

A. While it may be possible (and we applaud the creativity), you’d want to consult with an attorney or someone else in your state that is familiar with the kind of licensing and insurance that would be required to do this. Even if you were only allowing children in the workplace occasionally, and they remained under the control of their parent, you’d want to check with your general liability carrier to make sure that it would cover incidents that involved a visiting child.

Q. Can I deny leave to an employee who has high schoolers who should be able to take care of themselves during the day?

A. No. However, if the child or children are 15 or older, you should require that the employee provide a statement or affirmation that there are special circumstances that cause the older child to need their care. They do not need to provide any further information beyond that statement (such as what the special circumstances are). If you feel it necessary, you can remind all employees that it is fraudulent to take FFCRA leave if they are not unable to work as a result of the care they will be providing.

Q. Can we require proof that the school or place of care is closed?

A. No. You can and should (for IRS documentation) require the names and ages of the child or children being cared for and the name of the school, place of care, or caregiver that is closed or unavailable due to COVID-19. You should also require a signed statement that the employee is unable to work because they need to provide care for the child or children. Finally, if the child or children are 15 or older, the employee needs to indicate that there are special circumstances (but doesn’t need to explain them).

We don’t encourage independent sleuthing to verify what an employee tells you, but if you feel that’s necessary, be very careful of doing anything that could infringe on an employee’s right to privacy. Also be consistent in verifying this kind of information—if you are only fact-checking certain employees, you’ll open yourself up to complaints of unfair treatment.

Q. Can I ask an employee to look for outside childcare?

A. You can ask or encourage employees to look for other options, but you can’t require any proof that they have done so and you can’t deny leave because you think they didn’t try. In this case, all an employee needs to provide in a request for FFCRA leave is a statement that no other suitable person will be taking care of the child when they have requested leave for that purpose. Ultimately, who is “suitable” will be up to a parent.

Q. Can I deny leave if I think or know an employee is lying about the need to care for a child?

A. There is significant risk in denying a request for FFCRA leave if an employee has provided the appropriate documentation. That said, if you believe the request is fraudulent, you should have a discussion with the employee before granting or denying leave. If it turns out that they were submitting a fraudulent request—and you have sufficient evidence to support that—you can take disciplinary action if it seems appropriate. If, after discussion, you think their request is more likely than not legitimate, you should grant it.

Be careful of disciplining an employee who requests leave but doesn’t meet the necessary criteria. These leave entitlements can be confusing, and it would be unlawful retaliation to discipline an employee who was attempting to use their right to leave in good faith.

Q. If an employee’s stay-at-home spouse is sick with COVID-19 and unable to care for their children, can they take FFCRA leave to do so?

A. Yes, the children’s regular care provider (the stay-at-home spouse) is unavailable because of COVID-19, so the employee would be able to use either EPSL or EFMLA to provide care while their spouse is not able to do so.

Q. What if an employee won’t fill out the required FFCRA documentation?

A. The earliest an employer can require notice is after the first workday of FFCRA leave. (The regulations require employees to provide notice of their need for school closure leave as soon as practicable, but there are no consequences if the employee doesn’t do so.) If, after the first workday, the employee does not provide sufficient documentation to support their request for leave, they must be notified of the problem and given an opportunity to provide what is needed. If the employee still does not provide completed documentation after being given a reasonable opportunity to do so, then the employer is not required to provide FFCRA leave.

Q. Can we terminate an employee who is unable to work because they need to care for a child but have used up their leave under the FFCRA?

A. Assuming that no other leave laws apply, termination is an option. But you may want to instead consider offering the employee an unpaid personal leave of absence or revisiting whether a flexible or part-time work schedule would be better than losing the employee entirely. Recruiting, hiring, and training are all expensive undertakings, so if there’s a way to keep an employee around—even if they need some time off—that is likely better for your bottom line.

If you do decide to terminate an employee who is out of leave, make sure you can be consistent in that response going forward. If you are flexible with some employees while firing others, you will open yourself up to claims of discrimination.

Q. What if we find out after we’ve granted and paid for an employee’s leave that it was fraudulent? Do we make them pay us back or report them to the IRS?

A. There is not yet clear guidance about how to handle this situation, so we recommend calling your local Wage and Hour Division of the Department of Labor. They are generally very responsive and may be able to provide some guidance based on your situation.

The Virtual HR Support Center is a do-it-yourself, ready 24/7, at your fingertips resource for everything Human Resources. From employee handbooks, job descriptions and other commonly used HR documents, to up-to-the-minute law alerts, state and federal law libraries, and unique training videos, the Virtual HR Support Center will help you effectively manage your HR compliance and employee relations needs. Contact Us to learn how the Virtual HR Support Center can put all the DIY HR tools you need at your fingertips.

How Can HR Navigate the Back to School Season?

Last Updated November 15th, 2021
in COVID-19, HR Strategy

HR Question:

As schools begin their new year, the format of school is changing nearly daily – which is hard enough for kids and parents without the added stress of returning in a COVID-19 environment. As HR and business leaders, how can we best navigate the back to school season? What are other organizations doing to try and accommodate employees’ needs to be home with their kids?

HR Answer:

It’s no secret that schools are facing a unique and intimidating challenge as they try to return to a sense of “normal”. Parents and schools are turning to CDC guidance as they develop plans to educate and engage students in a time of extraordinary safety concerns and varying accessibility. In turn, employers are impacted as employees must accommodate their schools’ plans for their children.

As business leaders and HR professionals, we must realize that this is an extremely fluid situation, and there, categorically, is no one-size-fits-all! Every employee will have different needs as there is no singular standard school plan that districts are following. And, even if a plan is in place, we are already seeing it change rapidly based on outbreaks, exposures, needs to quarantine, and many other variables.

So how is HR supposed to navigate all of the plans, requests, and changing needs of this unique back to school season? If an employee approaches you about their need to be at home with their child, start first by asking the employee the following:

Provide the School’s Plan: When an employee makes you aware that their child’s school’s plan may interfere with their ability to work their normal schedule, request the employee to provide a copy of their most recent school plan.

Ask the Employee to Provide Potential Solution(s): We recommend asking the employee to submit ideas of how they can accomplish their job based on needs presented by the school schedule. This would be somewhat like the ADA accommodation interactive process, but without the legal obligation to consider. Encourage the employee to engage with peers in their workgroup to ensure adequate coverage. This can actually help team cohesiveness and empathy if there is a willingness to help out a colleague.

Next, the company and employee should consider and discuss:

What are specifics of how the school needs overlap with the work schedule?
Can the employee perform their job from a remote location?
What is the age of the child to determine how much actual oversight will be needed? If the employee is working from home, is it even feasible that they can actually work, or will they need to be actively involved in the child’s learning or have too many distractions? (This may vary from child to child, depending on learning needs.)
Does the position have flexibility regarding when the work needs to be done, or can it be done during off-hours?
What resources does the employee have to be able to work from home and what will the employer need to provide? (i.e., computer, internet connection, phone access, equipment, etc.) What are the costs associated with this? (Note: check your state laws if the employer is required to reimburse this to the employee.)
How will any changes impact the ability of other employees/departments to function effectively? If significant assistance is needed from others, or significant ongoing preparation is needed for the employee to be able to work from home, it may not be feasible.
If working from home is not feasible, can the employee work an adapted schedule or a different shift and still meet the company’s needs? (i.e., coming in early or starting late, working evenings, weekends, or alternate shifts)
How will communication be established between the employee, manager, and the team?

This is just a start of things to consider, and HR may find themselves having to get a little creative (i.e., flexible hours, working remote, onsite daycare, assisting with the cost of a caregiver, intermittent leave, job sharing). Every aspect should be looked at from both the employee’s and the business’ perspective.

While a company has no obligation to accommodate such a request, refusing to accommodate presents its own share of challenges. Employees may quit to stay home and take care of their children, or request leave (don’t forget the potential benefit of EPSLA and EFMLEA). This may leave the company short of the staff and the skills needed to be productive. Employers should also consider the perception of employees, customers, and the public if they refuse to work with employees.

What works for one employee may not work for another, even if they are in the same role. If you choose to try to work with the employee, communication is critical. The plan may need to change as you work out the logistics or as school plans change.

These are extraordinary times that are presenting extraordinary challenges. Even if you can’t fully meet each employee’s needs, showing a willingness to try and work with the employee can go a long way toward how the company is viewed. If you aren’t able to make it work, make sure the employee understands the reasoning why. This isn’t the first time HR has had to prepare for the back to school season, but most assuredly – it will be the most unique.

Thanks to Cathleen Snyder, SPHR, SHRM-SCP, for writing this HR Question of the Week!

Whatever HR challenge your business may be facing, Strategic HR can help! Whether it’s by developing a Back-To-School plan, developing a comprehensive strategic business plan through our HR Strategy services, or helping you navigate COVID-19 HR strategy issues, our team of experienced consultants is waiting to partner with you.

How Can I Prepare My Organization for Success During and After COVID-19?

Last Updated November 15th, 2021
in COVID-19, HR Strategy

HR Question:

As my business continues to feel the impact of COVID-19, how can I prepare my organization for success after COVID-19 – even if we face a second wave?

HR Answer:

Although there are national and state-wide efforts to re-open the economy and relax restrictions, businesses and employees continue to feel the effects of COVID-19. According to a study conducted by McKinsey & Company, “the challenge is especially acute for small businesses (those with 500 or fewer employees), which account for a disproportionate share of the vulnerable jobs.” McKinsey & Company emphasized this point further by highlighting the current vulnerable state of these businesses, as they account for 54 percent (30 million) of the jobs most vulnerable during COVID-19.

While many U.S. businesses have re-opened, a large proportion of them remains at half-capacity, employing fewer people, and/or maintaining a mix of on-site and remote workers. Those businesses are also seeing a decline in business and feeling the impacts of customers and suppliers hit harder by the pandemic. This has required leaders to make adjustments to their operations in order to survive in this “recovery” period but wondering whether it’s temporary or the “new norm.” Either way, many leaders are wondering how to prepare their organization for after COVID-19.

The Centers for Disease Control (CDC) offers immediate guidance for employers in helping to maintain healthy operations which include reviewing workspaces, promoting safe hygiene, revising sick and leave policies, and minimizing the number of employees in the workplace to prevent further spread of the virus.

To best prepare your business for future success after (or during) COVID-19, senior leaders and HR professionals should gather key stakeholders together to conduct a post-COVID-19 Organizational Assessment to identify where their organization stands now and what changes are needed for the future. A multitude of issues should be reviewed, some of which include:

Budget
Pipeline of work & future forecasting
Reviewing work practices for efficiency and cost-effectiveness
Reviewing and re-aligning talent
Succession planning
Review talent attraction activities

The ultimate goal of a Post-COVID-19 Organizational Assessment is to answer two questions: how do we pivot to succeed while in recovery mode, and how do we prepare should we find ourselves in another crisis in the future?

This is an all-encompassing effort to assess the health and stability of your business. It’s going to require collaboration, out-of-the-box thinking, considering new ways of operating, and taking a critical look at your entire business – your finances, your people, your supply chain, your operations, and your customers.

This a key opportunity to empower your HR team members and leaders, and to engage outside, unbiased professionals. This allows you to harness a diverse set of perspectives and expertise to benefit your business – for today and tomorrow.

Thanks to Terry Salo, Sr. HR Consultant with Strategic HR for contributing to this week’s HR Question of the Week!

Whatever your business may be facing, Strategic HR can help! Whether it’s by developing a Post-COVID-19 Assessment, developing a comprehensive strategic business plan through our HR Strategy services, or helping you navigate COVID-19 employee relation issues, our team of experienced consultants is waiting to partner with you.

The ABC’s of Diversity, Equity, and Inclusion (DE&I)

Last Updated January 11th, 2022
in HR Strategy

“The privilege of a lifetime is being who you are.” ~ Joseph Campbell

“…and not being penalized for it.” ~ Robin Shabazz, JD

By Robin Throckmorton, MA, SPHR, SHRM-SCP:

Last week, I had the honor of emceeing the Clermont County Chamber of Commerce’s Top Talent event – “The ABC’s of DE&I.” I can confidently say it was by far one of the best events I have ever attended; and one of the timeliest. As we virtually gathered to discuss how we as a business community could embrace Diversity, Equity, and Inclusion, we all felt the weight of the recent deaths of George Floyd, Breonna Taylor, Ahmaud Arbery, and the ensuing protests across the country. Ready with notepads and a willingness to learn, all 50+ attendees were on the edge of our seats, taking copious notes as we listened to the powerful group of speakers that day.

Robin Shabazz, JD with The Eastledge Group LLC kicked off the event with an extremely informative and impactful keynote on DE&I and why it matters. Then, she facilitated a dynamic panel of representatives: Arlene Koth former Director of HR for Triversity; Juan Herrera, Head of Diversity and Inclusion for American Modern; and Julie Heard, Director of Diversity, Equity and Inclusion for the Cincinnati Opera.

The lessons these four speakers shared with us echoed in my head throughout the day, prompting me to quickly connect with my team just to share the immediate impact of the event. A week later, with continued reflection, I want to share some of the key take-aways that will have a lasting impact on our DE&I approach.

Diversity, Equity, & Inclusion

First, Robin Shabazz shared her definitions of Diversity, Equity and Inclusion:

“Diversity includes all the multiple identities of employees across visible and invisible characteristics. Inclusion is how we leverage the experiences of our diverse workforce. Equity is the systemic elimination of barriers, providing fair treatment, access and opportunity for ALL to succeed.”

HR individuals and leaders have been working to implement diversity initiatives for years. Not to say that those efforts aren’t outstanding and necessary; however, to truly eliminate racism, we also need to take action towards equity – helping each individual (regardless of their race) truly belong. Robin made it perfectly clear: belonging matters.

HR leaders need to create a culture of belonging where everyone feels they are not only an important member of the group, but that they can be diverse and still respected. Belonging is not just “fitting in.” Simply “fitting in” means that a person is being who you want them to be, rather than themselves. The true meaning of belonging, and the one we need to all embrace, is actually being who you are and being valued for it.

A Powerful Panel

As Robin and the panelists continued to share their personal insights, they left us with key action items that leaders can take in order to prepare themselves for conversations with employees about racism and how it’s affecting the world. Leaders need to evaluate themselves and see what changes they need to make first. In particular, when leading a discussion, white leaders should start by recognizing “I don’t know what it’s like to be black.” This can help start the conversation and show that they are open to learning from perspectives outside of their own. In those conversations, ask “what else can I do for our team?” Listen, and respond with the tools that they may need to answer their questions.

But action cannot be limited to just leaders. Each individual has the opportunity to make a positive difference, even if it is as simple as saying “I’m sorry” when mistakes are made, and learning from it. By surrounding ourselves with others who are different from us, and by admitting vulnerabilities and learning from them, we begin to break down the biases that stood in the way in the first place.

As we approach and work towards successful change for all, one of the biggest challenges we will face is our biases. Not all biases are bad – in fact, a bias only becomes “bad” when it starts to oppress others. When biases begin to twist the outcome of even our best intentions, it is critical to address negative bias every single time. This isn’t easy. It takes work – internally and externally. And while we can’t change other’s biases, we can help others become aware of them and ask others for help to ensure our biases don’t impact us negatively.

Steps Forward

In our organizations, it is important to go beyond diversity and to place equal emphasis on equity AND inclusion. A diversity initiative often means setting goals and committing to meet them. For example, if you want to hire a diverse workforce, you need to create an environment in which diverse individuals not only come to work for you, but want to stay working for you because of the welcoming and embracing culture you enact. To create this culture, you’ll need every team member to play a role in making the change and making it stick by holding everyone accountable. Then as you hire, you’ll need to “de-bias” your hiring practices by creating clear job competencies as well as building a diverse pool of candidates. Hire the best candidate using diversity as one factor but not THE only factor. As an organization, it is critical to recognize that diversity benefits both employees and the organization while continuing to work towards removing barriers that may be present. The panelists made an excellent point: DE&I is not a program or initiative that will go away when the next “shiny object comes around.” Rather, this is an initiative that is here to stay – and needs to stay.

When we as a society can work together to create a culture or a world supported by diversity, equity, and inclusion, we will all benefit. For many organizations, leaders and employees must be willing to be uncomfortable and have uncomfortable conversations. But by leading those conversations with an eagerness for learning, development, and understanding, the benefits to an organization that values diversity, equity, and inclusion are limitless.

Strategic HR has had the privilege of working with a number of outstanding individuals with a passion and skill for DE&I. As you evaluate what you and your organization can do to make an impact, feel free to reach out to us. In the meantime, the Clermont County Chamber of Commerce has made the recording of this two-hour program available to the public for a fee of $35. We’d encourage you to set aside two hours to view an amazing and inspiring program.

Systemic Racism: How Can I Fight It?

Last Updated November 15th, 2021
in HR Strategy

HR Question:

The longstanding systemic racism and racial injustice against Black Americans is causing turmoil in my community – with my friends, with my family, and with my coworkers. What can my organization do to activate solutions to promote progress against systemic racism? How can I be a part of the solution through my workplace during these tough times?

HR Answer:

It is no secret that our nation has been rocked by heartbreak, by demands for change, and protests within our cities. As communities nationwide have processed and protested the tragic deaths of George Floyd, Breonna Taylor, Ahmaud Arbery, and more, we have seen a swell of companies speaking out against the social injustice that we operate in as a country. While these injustices are rooted as far back as 1619, if not further, we believe there is hope. Corporate America has the ability to have significant impact on improving and changing our landscape which has been sculpted, in part, by systemic racism. Now, more than ever before, it is the time to be aware of our sphere of influence to expedite action to correct misinformation and systems that do not support inclusion and belonging of Black Americans – and to do so at a faster pace than we have in the past. How do we get started?

In her Ted Talk, “Color Blind or Color Brave”, Mellody Hobson addresses the need to speak openly about race and impresses the importance of diversity in hiring. In fact, she points out that the most successful companies are the ones who make an active effort in recognizing all races, by being color-brave, not color-blind. Inspired by Mellody’s Ted Talk, we have compiled internally- and externally-focused color-brave actions that employers and individuals can take and lead, research, ask about, and/or be involved with for positive change.

Internally:

Ensure inclusive leadership with accountability for progress on Diversity & Inclusion efforts. Leadership, management, and HR set the boundaries and example for respect and equity in the workplace. The first question to ask as leaders: are we having the difficult conversations with employees? Do we need to start having those conversations? And how do we do so? The first step in this may be embracing Crucial Conversations – but if there are only a handful of questions that we can answer, here are a few:
- Are we creating opportunities or forums for employees to dialogue about pressing social concerns?
- Are we providing the tools and training to have crucial conversations?
- Are we listening to everyone’s voice?
- Do we have the right policies in place?
- Are we communicating with compassion and focusing on human connection with our team?
Create opportunity for self-reflection and development. We all have biases – conscious and unconscious. Provide exercises for self-evaluation and training programs (like cultural competency, unconscious bias, and respectful workplace training) to help determine personal strengths and opportunities. Bravely be willing to dialogue with others about this topic. Some good practical guidelines are: admit vulnerability and that you may say or do something that is contradictory to your intentions; be open to any feedback or comments; seek to understand instead of seeking to be understood; listen in an effort to learn another point of view and withhold judgments; and express respect and professionalism.
Evaluate equity in the talent lifecycle. Ensure equal opportunity through measurable targets in talent attraction, talent engagement, and talent development efforts. Some examples of best practices include creating a network of sources to recruit a diverse candidate pool and have metrics around the “funnel” effectiveness throughout the hiring process; having mentoring and sponsorships for minority talent; creating metrics for retention and promotion of minorities; and ensuring individual development plans are in place and being implemented.
Support a culture of openness and belonging with psychological safety. Tackle microaggressions that may exist in the workplace – or maybe define microaggressions in the first place. Have assessments in place to assess and reward each other as you live the standards/values. Create a welcoming environment free of posturing and aggressive competitiveness, where team members are comfortable being who they are and feel valued through a sense of psychological safety.
Create ongoing feedback loops through focus groups (i.e. ERG’s or general) and surveys. This provides the ability to stay on track with goals and keep a finger on the pulse of what’s happening internally specifically related to inclusive practices. During emotionally charged times like these, it’s important to connect with team members quickly and create opportunities to share thoughts and feelings as soon as possible and on a regular basis. Then, create action planning and implementation of initiatives/changes.

Externally:

Advocate for legislative changes and support political candidates for office that support advancement of pro-minority agendas.
Assess Corporate Social Responsibility policies and practices. If none, create them. Ensure supplier diversity targets are measured and evaluated.
Donate to funds and organizations that support the black community and social justice. Examples might include: Chambers, Foundations, United Way, and Minority business start-up ecosystem.
Donate time and intellectual capital to support actionable solutions in the community.
Create ongoing feedback loops with customers, partnerships, and suppliers to assess needs and experiences with the organization.

By being color-brave rather than color-blind, organizations and corporations can activate and mobilize change in communities, workplaces, and beyond to bring an end to systemic racism.

HR Strategy in Diversity & Inclusion will impact the bottom line for your business. After all, the employee experience, supplier/partner experience, and customer experience impact the bottom line. It’s more important than ever to optimize your inclusion practices during the global health pandemic and racial turmoil. Strategic HR receives numerous requests regarding diversity and inclusion strategies. We can help. For more information, please visit our HR Strategy pages.

Do I Need HR?

Last Updated November 15th, 2021
in HR Strategy

HR Question:

As a business owner, how do I know when I should engage someone to help me with our human resources needs?

HR Answer:

The quick answer is the typical rule of thumb is to have one HR professional for every 100 employees. However, depending on the scope of the role and how proactive your organization is, this number may be more like 1.5 HR professionals per every 100 employees (Bloomberg Report).

But not all businesses have over 100 employees, and you can’t wait until you are at 100 employees to address human resources in your business. When you hire one new employee beyond yourself, your journey down the human resources lane begins. It doesn’t necessarily mean you are ready to hire a full-time HR person; but rather, you need to do some basics to get your business in shape to have employees such as:

Setting up workers compensation
Obtaining a payroll solution
Posting mandated posters
Creating employee files
Developing a recruiting process
Creating an onboarding program and required forms
Setting up how an employee will be paid in compliance with various laws
Identifying benefits–not just health, but also holidays, PTO, and programs
Setting expectations for employees through policies in an employee handbook

Once you have your HR function set up, you may be comfortable handling your human resources function internally yourself, through your management team, or even an office manager. But, be sure you have a lifeline to an HR consultant and/or attorney to help you, should an issue arise.

As your business grows, you will also see other triggers that may tell you it’s time to get more formalized help with your HR function such as:

Business growth
Employee turnover
The need for more formal policies and procedures
Gaining or maintaining a competitive edge
Change that is impacting your employees
Conflict with responsibilities
Compliance

Compliance with federal, state, and local laws is critical for you to stay on top of as your business grows, which again is why it’s important to at least have a lifeline to an HR consultant and/or attorney. Check out this general list of the federal labor laws by the number of employees you have on your team. This list links to details on the actual law. But, there are also many unique state and local laws that may apply to your business too.

Too often, we see businesses wait until a problem occurs: if it isn’t broken, why fix it? When it comes to HR, you are better to be proactive than reactive to avoid losing key employees, receiving penalties for violating a law, or litigation.

Strategic HR can help you with any of your human resources needs, whether you are hiring your first employee or your 1,000^th. With our customized, a-la-carte approach, we can support exactly what you need. We can conduct an analysis of your HR function, establish your HR function, become your HR function, or help with key components of HR. Want to learn more? Request a Free HR Consultation.

Developing a Retention Strategy

Last Updated November 15th, 2021
in HR Strategy

Question:

We know that finding and hiring good talent is a real challenge. Fortunately, we don’t have many open positions right now, but how do we keep the talent that we have? What can we do to prevent our employees from leaving and improve our retention?

Answer:

This is an excellent question! And one that all employers should be asking themselves and directing time and resources to address retention. Like most strategies, there’s no ‘one size fits all’ solution. There are, however, a number of things that organizations can do to engage (and hopefully, retain) the employees they have.

1. Identify your high performers and high potential employees and actively re-recruit them to ensure retention. Consider those employees who consistently exceed expectations, deliver results, the positive influencers in your organization or those in mission critical positions. Dedicate time to solicit their feedback, understand their challenges, remove barriers that may be hindering their success or satisfaction level, and provide regular opportunities for growth and development. These steady performers often get the least amount of time and feedback from their managers, while poor performers oftentimes suck up the bulk of time. Managers should make a regular habit to change that.
2. Make sure your compensation and benefits are competitive. According to a Glassdoor survey, nearly half (45 percent) noted that salary was among the top reason for employees changing jobs, followed by career advancement opportunities, benefits and location.
3. Survey your employees to gain a better understanding of what’s important to them and solicit their ideas to improve your work place. Annual surveys can be a great way to get input from your employees on key issues (i.e. engagement, benefits, leadership, etc.) to help you develop a retention strategy. One word of caution…. it’s imperative that organization be transparent about the results and be ready to act upon the feedback that’s given. To maintain credibility, share survey results (the good and the bad) with employees and prepare an action plan to work and improve on the areas you can make a positive impact.
  Instead of an annual survey, many organizations have begun the use of employee pulse surveys. These surveys are often just one or two questions that employees are asked to answer more frequently (i.e. monthly, weekly). They are short and very specific, helping give you an immediate picture of what is happening in your workplace. These surveys allow you to get deep into the issues at hand for quick and immediate response. One of our favorites is TinyPulse but you can also create your own on a tool like SurveyMethods.
4. Train and develop your managers. How often have you asked someone why they chose to leave a good organization, only to find it was because of their immediate supervisor? Supervisors have the greatest impact on the work environment. To be effective, first line supervisors need to be as adept at people-managing skills as they are in their technical capabilities. Communicating effectively, identifying how to motivate diverse individuals, approachability, and showing a genuine interest and caring about their direct reports – are all just a few of the skills needed to create a positive workforce. No matter how strong your benefits and compensation packages may be, a poorly skilled supervisor can have devastating effects on morale and to your turnover.

A key component of your HR Strategy includes understanding your employees. This means taking the pulse of your employees through employee surveys to identify what you are doing well and where you could improve. Strategic HR can help you by creating a custom survey to meet your needs and facilitating the survey as a neutral third party. Visit our Employee Surveys page to learn more about how Strategic HR can help you.

Make Your Strategy Work

Last Updated November 2nd, 2022
in HR Strategy

Question:

I’m an HR practitioner consumed by the day to day, how can I be strategic in my role?

Answer:

To answer this question, let’s begin by clarifying strategic human resources. According to the Society for Human Resource Management (SHRM), strategic human resource involves a future-oriented process of developing and implementing HR programs that address and solve business problems and directly contribute to major long-term business objectives. At first pass, this definition seems like it involves a lofty and time-consuming process because we assume that a well mapped out plan is required. While a “Strategic HR plan” is a great goal to set and strive toward, it is NOT necessary to focus on the big picture every day.

As illustrated by the wheel to the right, the Company Strategy and HR Strategy are surrounded by activities HR practitioners address daily. If your “To Do” list includes items such as: developing a training plan for an individual manager, deciding about a worker’s compensation case and screening five candidates for the hot open role – approach it a little differently. Rather than taking each of these tasks (or any other set of tasks) independently, focus instead on how your actions and decisions will impact the success of the organization overall.

Ask yourself some reflective questions like:

Are the outcomes going to increase the likelihood of success for Human Resources?
Do they add to or detract from the success of the organization?
Do the outcomes align with the overall company strategy?

By asking yourself these questions before acting, you are placing a lens of HR strategy that will produce better outcomes and make you a strategic partner.

You can be strategic in all areas of Human Resources every day by taking a brief pause and evaluating alternatives and potential solutions before executing the work. If you really want to be challenged, here are a few additional ideas on the applying strategy daily:

Whenever possible, use data. It is the language of leaders and you are one too! (Hint: It is always possible to use data.)
Assess the organizations readiness for change
Understand the business metrics
Determine the organizational risks

HR strategy isn’t always about planning for the future. Sometimes it means responding to current issues and making sure they fit with the mission, vision, or goals of the company. That can be difficult to do if you are uncertain of your strategy. If you don’t have your HR and/or Corporate strategies defined, or need help tying those to your mission and vision, we can help. Visit our HR Strategy page to learn more about how Strategic HR can help you meet your goals.

Why Overcoming Unconscious Bias Is Key to Your Organization’s Success

Last Updated June 16th, 2020
in HR Strategy

Question:

One of the focus areas in my organization is promoting diversity and inclusion, and we would like to expand our current program to include more issues that have a real impact to our team and our community. I have heard about “Unconscious Bias” but don’t know much about it. Should this be a topic I’m including in our diversity initiative?

Answer:

Diversity and Inclusion initiatives are critically important to not only ensure that your workplace is free from discrimination and welcoming to all, but have also been shown to increase profit, employee engagement, and employee retention. Expanding your program beyond the traditional training topics can be the key to unlocking collaboration among your team members and showing that everyone is respected and has valued input.

One new topic for you to consider adding to your Diversity and Inclusion training toolkit is Unconscious (or Implicit) Bias. Unconscious bias refers to the associations that our brains make involuntarily and without our awareness based upon people’s membership in a particular group, such as:

Gender
Race
Religion
National origin
Age
LGBTQ

We all have unconscious biases, and these biases can be very detrimental to the workplace if not properly addressed and eradicated. A recent study by the University of St. Thomas Opus College of Business and nonprofit company MDI found that people with disabilities encounter a great deal of implicit bias in their job search.

Companies like PwC have taken notice and have started tackling implicit bias head-on through a series of online training videos as well as their CEO Action for Diversity and Inclusion” initiative.

Diversity and Inclusion programs can be powerful tools that can set the unique tone of your workplace culture. Expanding the focus areas of your company’s initiative to include Unconscious Bias and other meaningful topics can help improve your business metrics and the satisfaction of your employees!

Would your organization benefit from a training program on “Overcoming the Unconscious Bias?” Strategic HR has a dynamic presentation that is engaging and thought provoking and will have an impact on your team. Let’s talk about how we can offer this program for your organization. Contact us now and our President will be in touch with you right away to talk in more detail.

Understanding the Importance of Organizational Analysis

Last Updated July 21st, 2021
in HR Strategy

Updated July 2021

HR Question:

Our business needs and demands have grown dramatically as a result of the pandemic, and this is putting a strain on our employees. I want to make sure that we approach the growing and changing needs strategically rather than using a band-aid approach for quick fixes. What do I need to do to make sure we have the right people in the right places to continue our success?

HR Answer:

You are not alone in navigating through a changing business environment as more businesses reopen or ramp up at the same time consumer confidence and demand increases. While having a business that’s growing gives reason for celebration, it often comes with challenges as well. The changes you are navigating can bring about strategic challenges that you hadn’t anticipated, so being thoughtful about how to address them and determining the necessary steps to best manage your growth and achieve your desired business results is key.

A simple framework to think about change is “Strategy > Structure > People”. These are sequential steps, since the first informs the other, and often helps you get to root causes versus putting band-aids on problems. A very effective tool you can use to assess and understand your business and staffing needs holistically is an Organizational Analysis. An Organizational Analysis can help you to determine how your current organization structure is supporting the business results. It will also help you to further identify if your structures, processes, and people strategy are optimal as you move forward.

How to conduct an organizational analysis

An Organizational Analysis begins with an in-depth review of your high-level organization initiatives and structure, including:

Vision
Mission
Strategic goals
Financial goals & metrics
Business operations
Organization values
Organization chart

How employee surveys and focus groups can help

To ensure a comprehensive perspective, it can be beneficial to conduct employee surveys and/or focus groups with key team members to get to a deeper understanding of what’s driving your organization, in addition to identifying barriers or inefficiencies. Those closest to the work can often tell you where pain points are, provide suggestions for improvements, or tell you the work that is value add versus not.

Identify gaps and take action

By reviewing all of the data mentioned above, it will present a complete picture of what your organization is doing right and shine a light on gaps or areas that could be improved. From there, specific actions can be identified to create complete alignment throughout your organization and to ensure that you are able to not only maintain but expand upon your current success.

Your organizational analysis could reveal necessary actions such as:

Realignment of your organizational structure
Redefining operating norms, processes, and procedures
Addressing potential root causes which can help improve operations
Redesigning job functions and descriptions

The Institute of Organizational Development gives 7 reasons why organizational development is of critical importance to grow business, and an Organizational Analysis is a powerful tool to keep you focused on the big picture and making smart strategic decisions while building your organization from the inside out.

HR Strategy often involves thinking ahead to the future and making plans for the growth and development of key players. Strategic HR understands the balance between company strategy and people strategy and can assist you with both needs. Not only do we have the expertise to help you develop a strategic plan for your company, but we also have resources to help you develop your people leaders. Visit our HR Strategy page to learn how we can assist you with your company strategy.

What Is the Business World Doing to Support the Sandwich Generation?

Last Updated January 23rd, 2019
in HR Strategy

Question:

With so much focus lately on Millennial’s, I’m curious what employers are doing to support another group of employees — the Sandwich Generation?

Answer:

For employees in the Sandwich Generation who are caring not only for their own children, but also for their aging parents, they often will trudge along to care for the people who matter most. According to the Northeast Business Group on Health “Care-giving Landscape” whitepaper, caregivers miss an average of six days of work each year due to care-giving responsibilities, are less productive because of personal distractions, and are in poorer health than non-care giving colleagues.

The following are some examples of benefits that give the Sandwich Generation the support they need to succeed in and out of the office:

Flexible Work Schedule: For employees with personal obligations during the typical 9-to-5, flexibility allows them to accomplish everything they need without having to take off to catch up.
Child Care Benefits: Employers can help alleviate the financial burden of child care by subsidizing care options, including backup care.
Senior Care Benefits: In addition to helping find care options for the day-to-day, providing tips and guidance gives caregivers confidence to navigate this new role.
Financial Planning Assistance: As if managing personal finances wasn’t hard enough, this generation may have a mortgage, while also helping pay college tuition and managing their parents’ estate. Access to financial planning allows employees to work care-giving related costs into their plan and better prepare for the future.
Household Help: Employers can ease the burden of simple household tasks by providing meal prep, house cleaning and laundry services.
Access to Elder Care Experts: Senior care needs often arise suddenly, so providing information (through webinars, on-site seminars or simply by giving local expert contact information) can be extremely helpful to employees.

It’s in the employers’ best interest to provide the tools employees need to manage their personal lives so they can do well – and excel – at work. Employers who offer these types of benefits to employees show they care about the Sandwich Generation employees and want to do what they can to help.

Thank you to Alisa Fedders for providing the content for this HR Question of the Week. Alisa is a Senior HR Consultant with Strategic HR She has nearly 20 years of practical HR experience, working for private companies in HR leadership positions, in addition to her most recent HR consulting experience.

HR Strategy often involves thinking ahead to the future and making plans for the growth and development of key players. Strategic HR understands the balance between company strategy and people strategy and can assist you with both needs. Not only do we have the expertise to help you develop a strategic plan for your company, but we also have resources to help you develop your people leaders. Visit our HR Strategy page to learn how we can assist you with your company strategy.

How Can HR Impact the Bottom Line?

Last Updated January 23rd, 2019
in HR Strategy

Question:

What are some tactics I can use to show the Executive Suite how HR impacts and contributes to the bottom line?

Answer:

Getting the respect from the C-suite that HR is a value added partner won’t happen overnight; it takes time, patience, and lots of work. There are some key competencies that you need to develop and demonstrate to gain respect from the leadership team – business knowledge, credibility, strategic planning, and metrics.

For executive management to respect HR, they need to see that you really understand all aspects of the business such as the organization’s products and/or services, competitors, customers, financials, and the strategic goals and objectives. Take time to learn about each of these areas so you can communicate accurately inside and outside the organization. Keep in mind, these things change and you’ll need to make sure you are staying up to date on business developments inside your organization and within the industry.

Understanding the business overall helps, but this needs to be coupled with establishing credibility in the organization as well. You will need to:

Be responsive (answer your phone and return calls in a timely manner)
Keep commitments (show up and be on time to meetings)
Share insights on issues being discussed (even if your view is different)
Demonstrate the value of human resources activities (we can be a cost saver too)
Interface with management whenever possible (build those personal relationships)
Be ethical!

For the HR impact to be aligned with the company goals HR also needs to set strategic goals that are directly tied to the business. To do this, you need to use the organization’s strategies and develop a list of the human resources strategies that would support each one. For every activity that human resources performs, you should ask, “Which business strategy does this support?” If you can’t answer the question, ask yourself “Why not?” or “Are we missing a business strategy/goal?” If your organization doesn’t have a strategic plan, HR can take the lead by developing one for HR.

The HR impact on the bottom-line is about metrics…HR needs to be able to measure activities and show cost savings and benefits to the organization. Numbers speak very loudly to management and being able to share HR’s numbers will speak volumes. Some examples: How much is the new program saving you on turnover or absenteeism? What is a lack of training costing the company?

Lastly, we recommend that you take additional steps to ensure that you are positioning yourself to be viewed as a strategic partner. Some ways to do this may include:

Getting more involved (participating on employee task teams)
Participating in the organization’s strategic planning session (invite yourself or offer input)
Walking the talk (be a company champion and lead by example)
Volunteering to lead a company wide activity (not just the company picnic)

As with any strategy, careful planning and thought need to go into each of these activities. You’ll need to create a plan outlining what you need to do, how you are going to do it, and when it will be accomplished. Putting the plan to paper will help you stay on target and meet your goals. Don’t give up…it can take a lot of time and patience, but eventually the executive team is going to see the HR impact and the value brought to the bottom-line.

In summary, a HR Zone article notes: When you strip everything back, it is fair to say that a business is only really as good as the people working within it. Without people, you simply don’t have a company (in fact, the literal definition of a company is ‘a group of people’), and it is HR that is responsible for those people – attracting them, developing them, and strategically organizing them in a way that enables the business to perform at its best.

HR Strategy involves thinking ahead to the future and strategizing to meet goals and objectives. It also entails working cohesively with the corporate strategy. Strategic HR knows how integral human resources is to the success of an organization and can assist you with HR strategy needs. Visit our HR Strategy page to learn more about how we can help you create your strategy and align your HR needs with the corporate strategy.

Why Should We Provide Civility Training at Our Company?

Last Updated January 23rd, 2019
in HR Strategy

Question:

What is Civility Training and should I be offering it at my work-site? I have done the typical harassment, communication, and customer service training – is Civility Training different?

Answer:

Civility Training is a new approach for training. It is workplace training that includes:

Harassment,
Bullying,
Cultural sensitivity,
Diversity, and
Professional Etiquette – all rolled into one.

Yes, Civility Training is similar to those you have been offering in the past but this training folds all of those issues together and provides learners with practical tools for creating respectful, inclusive, and professional work environments – ultimately leading to improved employee relations and less harassment complaints. These types of programs not only speak to behaviors, but also challenges the attendees to look introspectively and develop a self awareness of their own actions and communication styles with those around them.

There are some things to keep in mind according to the National Labor Relations Act (NLRA) regarding Civility Training. Jonathan Segal, an attorney with Duane Morris in Philadelphia and New York noted: that the National Labor Relations Board (NLRB) general counsel has said that the following rule, which some employers may want to implement as one way to promote civility, would in fact violate the NLRA: “Be respectful to the company, other employees, customers, partners and competitors.” The general counsel has found that this rule would potentially interfere with employees’ right to engage in protected concerted activity. Civility training should be conducted with NLRB decisions in mind.

It is also important to note that in October 2017, the Equal Employment Opportunity Commission announced that it would be offering two new training’s for employees that appear to be what would be considered “Civility Training”. These training’s are expected to move away from the traditional harassment definition training and move more toward the promotion of inclusion and respect in the workplace. These are exciting training alternatives in the workplace and will definitely open up discussion and communication on workplace behavior.

HR Strategy often involves thinking ahead to the future and making plans for the growth and development of key players. Strategic HR understands the balance between company strategy and people strategy and can assist you with both needs. Not only do we have the expertise to help you develop a strategic plan for your company, but we also have resources to help you develop your people leaders. Visit our HR Strategy page to learn how we can assist you with your company strategy.

Understanding The Options Like a PEO, ASO, or HRO to Grow Your Human Resources Function

Last Updated November 2nd, 2022
in HR Strategy

Question:

As a growing employer, we are getting to the point that we need someone to take over the human resources function. As the Controller, I have been handling payroll and benefits but as we get bigger, it is becoming more difficult to handle. I have had a few colleagues recommend using an outsourced HR option like a PEO, ASO, or HRO . What does that mean and how would that impact our company?

Answer:

First congratulations on your growth! It is fabulous that you are growing but with it comes significant challenges for your human resources function. The good news is there are lots of options and considerations as you move into this next stage. A brief summary of the options is included below. Regardless of the direction, be sure you do your homework – ask lots of questions and get references. Not all PEO, ASO, or HRO agencies look / act the same – you need to make sure you know the difference and what services you are getting.

One option is a PEO – a Professional Employer Organization. A PEO handles most of the administration of certain HR operations such as payroll processing, health insurance administration, state unemployment insurance, and worker’s compensation.

Reasons a PEO may be a good solution for your business are:

If you need to offer health insurance but are either too small to get reasonable rates or have a high risk workforce.
If your workers compensation costs are too high and you need a group rated program to help obtain the coverage at a reasonable rate.

Issues to consider with a PEO:

The PEO will employ your employees and lease them back to you.
Your organization will need to comply with employment laws based on the size of the PEO not the size of your business (i.e. if you are under 50 employees, you may have to comply with laws required for companies over 50 such as FMLA and ACA)
Most PEOs are purely administrative and do not help with employee relations coaching and recruitment of key talent.

Another option is using an ASO – an Administrative Services Organization. An ASO will handle the administrative aspects of your business. For example, you may hire a payroll provider that will process your payroll and payroll related taxes. You may also hire an ASO for benefits management, workers compensation, or unemployment compensation. Things to consider with an ASO is that they are handling the administrative tasks only, you will still be responsible for “feeding the information” to the provider to get the job done which in many cases is half the work.

A third option is using an HRO – an Outsourced HR Solution to assist with the management of your human resources function to allow you to focus on the strategic initiatives of the business rather than the operations of HR. Just like any large organization with an HR Team, an outsourced HR provider should align with your strategy through the management and administration of all aspects of HR such as:

Recruitment
Onboarding
Training and Development
Employee Surveys
Compensation and Benefits (i.e. job descriptions, compensation structure, benefits, and workers compensation)
Communications (i.e. employee handbook)
Employee Relations
Recordkeeping (i.e. processing payroll in-house or with a provider)
Health, Safety and Security
Workplace Compliance

All three options: PEO, ASO, or HRO will help take some of the duties off your plate, they just do them in different ways and in varying levels. Be sure you understand the cost and impact of all of these options before diving in. Many become a commitment for at least a year so step lightly.

When you are in the infancy stage of an HR Department, oftentimes your “strategy” is to just get things up and running. There is so much to Human Resources Management that it can be difficult to know where to start while being confident you aren’t forgetting something important. Strategic HR feels your pain having helped many small companies start or grow their HR function. Let us share our years of experience getting HR “off the ground”. Visit our website today to learn more.

How To Turn Reactive Solutions Into Necessary Change

Last Updated November 2nd, 2022
in HR Strategy

Question:

I get complaints at times that I am too reactive to situations and that I need to be more strategic in my thinking. I feel like reactivity is necessary, in my job. Who is right?

Answer:

Well, you both are right. In human resources, we are required to react in many situations that arise…every single day. In fact, our handling of those situations is what others expect from us and doing it well is how we become a respected and admired member of the team. There is a difference, however, between being reactive and making decisions off the cuff and being reactive but using our knowledge of the organization, culture, and situation to come up with a solution.

Using our knowledge and experience, we can actually make a difference with those incidents and ensure those “reactions” are very well thought through solutions that we can turn into opportunities. In many instances, these events provide us a moment in time to advance a business case for something we were trying to get accomplished…a “strategic initiative”, if you will. These moments provide the best opportunity to move forward and change something that was in need of change. Experienced HR folks are able to link the reactive solutions to a justification for change in the future.

So, reactivity is not necessarily good but it is many times necessary. The key to success is knowing that your reactions are well thought through and that you take the advantage to further a cause in need of change.

HR Strategy isn’t always about planning for the future. Sometimes it means responding to current issues and making sure they fit with the mission, vision or goals of the company. That can be difficult to do if you are uncertain of your strategy. If you don’t have a clearly defined corporate or HR strategy or need help tying that to your mission and vision we can help. Visit our HR Strategy page to learn more about how Strategic HR can help you meet your goals.

Corporate Social Responsibility

Last Updated November 2nd, 2022
in HR Strategy

Question:

My new VP is focused on Corporate Social Responsibility and I’m not really sure what that means. Can you explain what that means and how HR has a role?

Answer:

Corporate Social Responsibility is a broad term for self-regulating oneself in terms of ethical responsibility and compliance. The term can refer to both internal and external activities that an organization can take part in to improve itself as well as the communities and environments in which it works. Strategic HR Leaders should take an active role in Corporate Social Responsibility. HR can take the lead by linking the identified corporate initiatives and tie them to bonus programs, development plans, retention, not to mention recruiting. These identified initiatives can become measurable results for the entire organization.

In many organizations HR still struggles to find a place at the leadership table. By thinking strategically and relying on proven business practices and tools HR can show value and become a partner with the leadership team. Strategic HR knows how difficult it can be to integrate practices with the overall business strategy. Let us assist you with your strategic initiatives – visit our HR Strategy page to learn more.

Presenteeism in the Workplace

Last Updated November 2nd, 2022
in HR Strategy

Question:

I keep hearing people refer to “presenteeism” in the workplace. What is that and why does my boss want me to look into what it is costing the company? I’ve never heard that term before!

Answer:

Presenteeism refers to employees who are on the job but, because of illness or other medical conditions, are not fully functioning. These employees are physically present at work but are distracted to the point of not working at full capacity due to physicial or emotional issues. Chronic conditions such as allergies, arthritis, migraines, back pain, gastrointestinal disorders, diabetes, and depression can lead to presenteeism issues, just to name a few. Researchers indicate that presenteeism can cut individual productivity by one-third or more. In fact, data suggests that it is a much more costly problem to employers than absenteeism AND it is difficult to manage. With presenteeism, employees show up to work but it is difficult to tell when or how much an illness or a medical condition is hindering someone’s performance. They may “look fine” but there performance may be suffering. Presenteeism is thought to be more prevalent during tough economic times, because people are afraid to miss work, potentially causing them to lose their jobs.

Determining the cost of presenteeism to the company is a challenge since the costs are nearly invisible to employers. It is hard to put a cost on the problem until the person has “checked out” to the point that it is obvious that their productivity is suffering. There are two surveys available free on line from the World Health Organization that you can use to set a baseline in your organization. The surveys (links below) can help you determine if there is a problem, possibly put some costs on the issue, and determine what, if any course of action needs to be taken.

World Health Organization – Health and Work Performance Questionnaire (HPQ)

Tufts Medical Center Work Limitations Questionnaire (WLQ)

Are daily HR issues interfering with your ability to focus on the strategic matters of your company? Do you find yourself at odds with the directives of the leadership team? Strategic HR knows how integral human resources is to the health of your organization and can assist you with HR strategy needs. Visit our HR Strategy page to learn how we can assist you with your strategy and help align your goals.

HR Working as a Strategic Partner

Last Updated November 2nd, 2022
in HR Strategy

Question:

What are some effective ways for HR to become a strategic partner in an organization?

Answer:

Traditionally, Human Resources have served two major roles. The first is administration. This is primarily centered on processing, recordkeeping, maintaining employee files, etc. The second is business partner, which mainly supports and helps to maintain the company’s business model. In recent years, HR has been called to serve a third role; strategic partner.

According to their article “What Makes HR a Strategic Partner” by Edward E. Lawler III and John W. Boudreau, a company can transform Human Resources into a strategic partner in a few different ways; developing its talent through rotation, utilizing teams with specialized expertise, have leaders located in business units, and involve line management in HR decision making.

HR ultimately needs to organize itself to rise to the corporate level. Its extensive knowledge and analysis of organizational design, business strategy and metrics and analytics are significant aspects of a successful company. By implementing these strategies, HR can transform into a strategic partner and an essential part of an organization.

Are daily HR issues interfering with your ability to focus on the strategic matters of your company? Do you find yourself at odds with the directives of the leadership team? Strategic HR knows how integral human resources is to the health of your organization and can assist you with HR strategy needs. Visit our HR Strategy page to learn how we can assist you with your strategy and help align your goals.

Leader vs. Manager

Last Updated November 2nd, 2022
in HR Strategy

Question:

What is the difference between a Leader and a Manager?

Answer:

According to Peter Drucker, “Management is doing things right; Leadership is doing things the right way”.

For an organization to achieve strong results, both leadership and management need to be present. Management allows for leadership, and leadership invites development as people stretch toward the new vision and its inherent possibilities.

Many wrongly assume that leaders are somehow “better” than managers or that managers should try to be leaders. Both have their value in an organization. In many companies, employees who master the management responsibilities in a given role are seen as promising candidates for the next level, especially if they offer ideas and strategic suggestions beyond their area of responsibility. However, leadership is not simply an advanced form of management. Often when a promotion comes, a difficult transition process begins when the newly promoted employee must prove value and competency at the next level. To do so, the new leader must let go of managing the very processes and functions on which his or her reputation had been established.

It is extremely beneficial if organizations recognize the challenges of building a strong leadership pipeline. Understand that leadership is not simply an advanced form of management — they are actually separate skill sets, actions, behaviors, and competencies.

Although some people are predisposed to being either a leader or a manager, that’s not to say that an employee can’t acquire the skills to be one or the other. The following are some examples of personality traits and qualities that make leaders and managers predisposed to be one or the other.

LEADERSHIP TRAITS MANAGEMENT TRAITS

Big Picture / Detail Oriented

Strategic / Tactical

Vision, Strategy, Execution / Goals, Projects, Tasks

Effectiveness / Efficiency

Forge Vision / Follow Vision

Right Brain-Lateral Thinking / Left Brain-Linear Thinking

People-focused / Task-focused

Internal Frame of Reference / External Frame of Reference

Intuitive / Sensing

Visionary, Dreamer, Romantic / Level-headed, Realistic, Practical

HR Strategy often involves thinking ahead to the future and making plans for the growth and development of key players. Strategic HR understands the balance between company strategy and people strategy and can assist you with both. Not only do we have the expertise to help you develop a strategic plan for your company, but we also have resources to help you develop your people leaders. Visit our HR Strategy page to learn how we can assist you with your company strategy OR visit our Career Coaching page to learn more about leadership development.

Competency Based Culture

Last Updated November 2nd, 2022
in HR Strategy

Question:

What do I need to think about when creating a competency based performance management system?

Answer:

As with any type of new program being introduced to your employees a lot of planning needs to go into creating a performance management system.

Start with a clear idea of the business challenge or problem you need to address. What is the business impact in terms of lost revenue, staff retention, performance and productivity, culture, and decision making.
Identify what is working well and what needs improvement. You’ll want to keep what’s working and change what isn’t. Articulating your company’s strengths will help identify competencies needed to measure performance.
Keep a separate to-do list of other areas that may come up as you create your plan. It’s not unusual to flush some of these things out as you dive deep and you can then make choices about what to work on when.
Revisit the company’s mission, vision and purpose to provide a refresher on why the company exists.
Review the annual business plan with the goals and determine whether or not you have the talent to deliver the results needed.
There can be many options and opinions when creating desired competencies. Try to involve HR – someone with experience in performance management, talent management and/or strategic planning to help guide the process. Be sure to describe behaviors and results. It might be helpful to ask:
- Who are the existing employees demonstrating the kind of top performance needed to deliver business goals?
- What does a top performer look like?
Identify competencies that span all positions in a company – it sets a common standard and helps create a company culture that drives performance and results.
Drill down under each competency to identify specific behavior for performance standards.
Define the spectrum of performance from the ‘top’ (exceeding expectations) through the ‘bottom’ (needing improvement). Typically a 3 point or 5 point range is used.
Determine the frequency of performance reviews with every employee having at a minimum an annual review. Ideally, real-time feedback is given as it occurs, with more formal checkpoints occurring via monthly or quarterly meetings with their direct manager.
Involve a select group of employees to give input on the competencies before finalizing. They may provide additional insights and facilitate quicker adaptation of the new system.

By following the suggestions above you will be well on your way to creating a solid performance management system.

HR Strategy isn’t always about planning for the future. Sometimes it means responding to current issues and making sure they fit with the mission, vision or goals of the company. Dealing with a company’s culture can be a touchy subject – especially when you tie that to performance management. Strategic HR can help you with a variety of issues related to culture. Visit our HR Strategy page to learn more about how Strategic HR can help you meet your goals.

Getting Through Change

Last Updated November 2nd, 2022
in HR Strategy

Question:

Our company is going through a lot of changes lately… any ideas for how to best deal with these changes?

Answer:

There is so much change taking place in the workforce today, we can’t escape it. But it can’t just be ignored, we have to decide how we are going to handle or cope with each change. It’s normal for the ‘current’ way to feel more comfortable and the ‘new’ way to feel uncomfortable – and no one likes to feel uncomfortable. But change is unavoidable in today’s work world, so we have to find a way to accept the “new normal”.

Change evokes all types of responses – anxiety, fear, irritability, resentfulness, overwhelmed AND excitement, opportunity, growth, newness, fresh. It is important to identify how you respond: positive or negative; constructive or destructive; engaging or defensive. Once you know your response, you can then work toward responding more positively. Here are a few tips for getting through change:

Pay Attention – Notice signs that change is needed and/or going to happen. If we anticipate a change, we can better prepare ourselves.
Knowledge – Knowledge is power. Whether change is happening or imminent, seek information to help you understand it. It’s easier to cope with something if you have a little information.
Communicate – Everyone involved is going through the change and likely having mixed emotions. As you share, you’ll find out you are not alone, and together you may be able to identify ways to cope with the change in a positive way.
Embrace – Imagine how it will feel once the change becomes the “new normal”. Get involved in the change and encourage others to accept the change through positive talk.
Coping Skills – During a stressful time, our bodies all respond differently. Some possible coping strategies may include:
- Exercise – If you exercise keep doing it and if you are not exercising try adding some.
- Distractions – Do something for yourself that gets your mind off of the change for a little bit each day.
- Goal Setting – Establish goals that will help walk you through the change process so you feel more in control of what is taking place.
- Reflection – Think about past changes you’ve gone through that you survived, and even thrived as a result.

Change is inevitable so we must find ways to accept change. As noted in Managing Transitions: Making the Most of Change by William Bridges, “The only certainty is that between here and there will be a lot of change…There’s no way to avoid it. But you can manage it. You can. And if you want to come through in one piece, you must.”

For a company to grow it often involves a lot of change. HR Strategy isn’t just about planning for the change, sometimes it means coping with the aftermath of creating change. Given the individual nature of humans there is no cookie cutter answer for dealing with change; the solution is as individual as each person in the organization. If you are struggling with change in your organization we can help. Visit our HR Strategy page to learn more about how Strategic HR can help you with your strategy for change.

Image of our Wheel of HR Services, with a focus on Employee Relations.

Measuring Change Impact on Performance

Last Updated July 8th, 2020
in Employee Relations, HR Strategy

Question:

What’s the impact of changes such as employee relations strategies, policies, and practices on organizational performance?

Answer:

The core answer to your question is that organizations that identify the appropriate employee relations strategies, policies, and practices WILL have ONLY a positive impact on their performance. These are the organizations that we already see named as “best places to work” or “employer of choice”. They’ve realized the benefit and competitive advantage that these changes can have to the overall success of their organization.

Below is a list of some of the key changes observed in organizational strategies over the years:

Heightened sensitivity to age differences in terms of recruiting, employee development, and employee relations policies.
More flexibility in work structure and policies such as dress code, telecommuting, and flexible hours.
Tailored rewards and recognition, especially in consideration of differences across generations.
Increased front-line supervisory training and development.

Changing workforce demographics have driven the need for organizational change across the U.S. More women are entering, and staying in, the workforce and now comprise about 58% of the total workforce in our country. We now have five generations in the workforce, with medical technology allowing older workers to be healthy enough to stay well past the historical age 65 should they choose to do so. These generations are very different with regard to their motivations and interests. Cultural diversity is also growing in organizations across the country because technology has made us all global. In short, employee relations policies and strategies have had to evolve to take these demographic changes into account.

Results we’ve observed in our client organizations include enhanced recruiting capability in a highly competitive environment; retention of high-performing employees; and increased and sustained profitability driven by engaged, highly motivated workers.

We’ve found that companies are becoming very creative when it comes to offering rewards and recognition targeted at retaining their best and brightest employees. Concierge services such as dry cleaning have been highly successful as perks that entice employees of all ages to continue their employment. Posting jobs online on sites that cater to different age groups has become a critical approach towards obtaining a recruiting advantage. In short, companies that are willing to be innovative in terms of recruitment and retention strategies have reaped the result of finding and keeping excellent employees who in turn drive profits. What works for one organization does not necessarily work for every organization. It’s important to figure out what your employees want and need that will help your organization reap the results.

Employee recognition is just one aspect of Employee Relations. In a nutshell, Employee Relations is all about how employers interact with employees to help them remain an engaged and productive employee that is content to continue employment with the company for many years. Visit our Employee Relations page to learn how we can assist you with the Employee Relations issues you may have.

Human Resources Assistance Needed

Last Updated November 2nd, 2022
in HR Strategy

Question:

I need help with human resources – what are my options?

Answer:

The role of human resources covers a variety of areas such as:

Recruitment
Training and Development
Benefits and Compensation
Communications
Employee Relations
Recordkeeping
Health Safety and Security
Legal Compliance

The type of human resources help you may need depends greatly on which of these areas where you most need the assistance. The typical rule of thumb is having one HR person to every 100 employees, however; if you have a very pro-active culture and environment, you may see a more pressing need for full-time HR help.

Below are a few options you can consider:

Hiring an HR Generalist
- Typically, an HR Generalist is going to have the skills and education to provide any aspect of HR for your business. A typical salary for an HR Generalist with about 5 – 7 years of experience will range from $45,000 – $80,000. Keep in mind, as a generalist, the individual may have some strengths and weaknesses in the field of HR, some of which are not as developed or favorable for your specific situation. Choose your HR generalist to have strengths based on your specific needs.
Professional Employers Organization (PEO)
- As defined by Wikipedia, a PEO is a firm that provides outsourced employee management tasks such as benefits, payroll, and workers compensation. Some PEOs will provide additional HR functions while others are limited to these key areas. You’ll definitely need to investigate to make sure you are getting the right skills needed for your organization. When using a PEO, they become the employer of record for tax and insurance purposes by hiring your employees.
Outsourced HR
- By outsourcing your HR function, to someone like Strategic HR, you get a great deal of flexibility. Using this model you get the HR assistance you need, whether it is everything related to HR or only small pieces or projects. You have the option of having assistance provided on-site or off-site, which is great if you don’t have the space for additional employees. For small organizations, or organizations in a growth mode, this can be the perfect solution to ensure you are attracting and retaining the best employees. An outsourced HR provider can help establish your HR function by creating an employee handbook, job descriptions, performance reviews and more. Plus outsourced HR can provide recruiting, employee relations coaching, training, and other HR related project needs.

Are daily HR issues interfering with your ability to focus on the strategic matters of your company? Do you know you need help but don’t know what type of help is best for your situation or your budget? Strategic HR knows how integral human resources is to the health and growth of your organization and can assist you with all of your HR needs. To learn more contact us at 513-697-9855 or visit our website for details on all of our services.

How To Set Up The HR Function In Your Company

Last Updated February 8th, 2023
in HR Strategy

What is an HR Scorecard and how is it implemented?

Last Updated November 2nd, 2022
in HR Strategy

Question:

What is an HR scorecard, and how is it implemented?

Answer:

The HR scorecard is a method for Human Resources to position itself as a strategic planning partner with line managers and executives within an organization. A detailed and excellent book on this topic is The HR Scorecard, by Becker, Huselid, and Ulrich. This book is available on either Amazon.com or the Society for Human Resource Management‘s website.

The premise for an HR scorecard is that HR can and should develop metrics to demonstrate how HR activities impact profitability. The process we recommend is:

Identify the critical deliverables for Human Resources.
Identify HR’s customers (for the deliverables).
Define HR activities that provide the critical deliverables (such as high-talent staffing or a retention initiative).
Conduct a cost-benefit analysis of activities that provide deliverables.

Lastly, it’s important to ask the right questions to determine if HR is providing the appropriate deliverables. Examples of these questions are:

How many exceptional candidates do we recruit and retain for each strategic job opening?
How many hours of results-oriented training do new employees receive annually?
What is the differential in merit pay between high-performers and low-performers?

In many organizations, HR still struggles to find a place at the leadership table. By thinking strategically and relying on proven business practices and tools HR can show value and become a partner with the leadership team. Strategic HR knows how difficult it can be to integrate HR practices with the overall business strategy. Let us assist you with your strategic initiatives – visit our HR Strategy page to learn more.

Should I be worrying about employee retention?

Last Updated November 28th, 2017
in Communications, Employee Relations, HR Strategy

Question:

Should I really be worried about employee retention during economic downturns when unemployment numbers are so high?

Answer:

YES!!!

It is still a shock to the system when we give presentations to HR professionals and small business owners and ask “what are you doing about retention?” and we get these looks like “retention” why would I need to do anything about retention? And there is always someone in the crowd that announces out loud “we are all just lucky to even HAVE jobs”. Dare we repeat the recent survey results by the Harvard Business review that found 25% of the top performers at companies are saying that they plan to leave their companies within the next year?

Do you find that hard to believe? Better start believing it…it is a reality! We’ve had a number of managers call and report it is already happening to them. To make matters worse, managers feel their hands are tied because their companies are taking the defensive position ”let them quit and try to find another job someplace else”. Guess what? They did…and, the ones leaving WERE the top performers! Can you afford to lose your best employees?

So, to ask again “what are you doing about retention?” Yes, some people may be lucky to have a job, but in other cases YOU are lucky you have them as employees. It’s time to start treating your employees in a manner that shows they are indeed valuable. Your business may not be in the position to reinstate the salary you had to cut, give the raise you put off, or offer the 401k match you eliminated, but can you do some things to improve the work environment? Easy things, such as:

Providing recognition for sticking with the company during these rough times.
Sharing the plan of where an employee fits into the big picture going forward.
Seeking the opinions of employees when it comes to helping the company move forward and grow.
Setting and sharing some milestones for what it may take before an employee can see an increase in salary again.
Asking what is important to the employee that keeps him/her at your company.
Determining if you have the right people managing the employees to keep everyone motivated and excited about being a part of the company going forward.
Doing things that differentiate between the good employees and the mediocre employees to show that it matters.

Turnover is expensive. It can cost your business as much as 50 – 150% of the annual salary of your lost employee. Can you afford that as your business recovers? What are you doing to manage your employees in the current economy to avoid losing your star performers?

Are daily HR issues interfering with your ability to focus on the strategic matters of your company? Do you find yourself at odds with the directives of the leadership team? Strategic HR knows how integral human resources is to the health of your organization and can assist you with HR strategy needs. Visit our HR Strategy page to learn how we can assist you with your strategy and help align your goals.

Strategic HR Management

Last Updated November 2nd, 2022
in HR Strategy

Question:

What should we be doing differently, as a small/medium-sized business, to strategically manage our HR function?

Answer:

No matter what the size of your organization, it is important for the Human Resources function to be strategically aligned with the business goals and strategies of the company.

To start, you need to understand the purpose HR serves to the organization. Regardless of whether an individual handles HR as part of their other duties, you have a one person HR department or a full HR team, the purpose of HR will need to be defined specifically for your organization. Does HR exist to administratively process paperwork and track employees? Is it to enforce rules and manage employee relations? Or maybe it is to be a coach or advisor to the company on employee and management issues. Whether it is a task-based role or a strategic role, it is important to determine this purpose.

Next, evaluate company goals to determine how HR will align with them. If the company doesn’t have a formal plan or set goals, there are likely some key objectives that the organization is striving to reach – i.e. sales, profit, growth. For HR to be more strategic, determine how HR can support these objectives. For example, if a goal is to increase sales by 10% this year, the HR function might want to consider internal goals such as:

Reviewing the compensation of sales (and other staff) to ensure compensation provides the right incentive to meet sales goal;
Developing the necessary training for the (sales) team to be sure they have the skill set and knowledge to successfully sell the product or service;
Evaluating the (sales) team to determine if the right staff exists to meet goals, or, if you happen to be short staffed, based on productivity results;
Ensuring clear expectations are set with the (sales) team including measures that will be used to evaluate performance.

This is just an example, but gives an idea of the type of thinking that takes place in order for HR to be a strategic solution for the company.

Working strategically, and formulating a plan to guide the HR function in a more strategic direction, does take time to implement on top of an already full plate. So, how to start:

Shuffle priorities – is there something you are doing that could be delegated or outsourced to free up time to work on strategy?
Identify subject matter experts – are there others in the organization that have the expertise needed/have an interest in developing by working on a special project?
Assemble a team – can the strategic goals be met with a team effort rather than by one person?
Use an outside expert – do you need to outsource the project (to someone like Strategic HR) to get the project done in a timely manner with the right expertise?

Once the HR function has its’ goals clearly defined in conjunction with the corporate strategy it will be easier to identify areas in which HR needs to make adjustments to be more strategically aligned with the organization and with the leadership team. As with the organizational strategic plan, the HR strategy will need to be revisited and revised periodically to address changes in the organization and the goals of the company.

Are daily HR issues interfering with your ability to focus on the strategic matters of your company? Do you find yourself at odds with the directives of the leadership team? Strategic HR knows how integral human resources is to the health of your organization and can assist you with HR strategy needs. Visit our HR Strategy page to learn how we can assist you with your strategy and help align your goals.

The Balanced Scorecard Approach

Last Updated November 2nd, 2022
in HR Strategy

Question:

Someone recommended that I take a “balanced scorecard” approach to HR management. What is a “balanced scorecard”?

Answer:

The authors of the book HR Scorecard, Dave Ulrich, Mark A. Huselid, and Brian E. Becker), coined the phrase “balanced scorecard”. It refers to a 7-step model that outlines an approach for HR practitioners who wish to become business partners in their organization. The seven steps are:

Clearly define the business strategy – this involves learning more about the organization’s strategic objectives and goals. The HR Department should be in a position to align its objectives and goals with those of the organization. To do this the HR staff must get to know the management team and their challenges, barriers and constraints. After leaning about the needs of your managers, HR needs to conduct an audit of the HR function to determine if it has the competencies and skills necessary to help the company achieve its Mission, Vision, and Strategic Objectives.
Build a business case for HR as a strategic asset – many managers perceive HR to be an administrative function. HR must make a proative effort to educate the leadership team about the potential HR has as a strategic business partner. It may be help to use a ‘return on investment’ (ROI) approach to HR activities. This entails looking at activities undertaken by HR as necessary to solve a business problem or need, helping to determine the cost of the business problem, recommending and implementing solutions, determining the cost of the solution(s), and calculating the savings to the company (the difference between the cost of the problem after HR interventions and the cost of the solution).
Create a strategy map – HR needs to provide a value proposition for its activities and change the perception that HR is overhead, strictly an expense generating department. HR should take the time to map out each of their processes, such as benefits administration, to ensure that the processes are streamlined, provide a quality product or service, and are targeted to meet specific organizational objectives.
Identify HR deliverables within the strategy map – this requires distinguishing between qualitative and quantitative deliverables. Tangible deliverables might be saving $485,000 a year in turnover expenses following an HR intervention such as supervisory coaching. The types of deliverables that are more qualitative, and therefore difficult to put a solid number on, are those like time savings for managers who must handle conflict among direct reports. If their direct reports receive training and assistance to handle conflict themselves, this results in less time for that manager, who is then free to engage in other activities that might be more productive for the company.
Align the HR architecture with HR deliverables – often HR’s education and training focuses on HR’s role as “the police”, people who hire and fire, or administrators whose job is simply to keep personnel records. Take steps to recruit and hire HR staff that take a strategic, wholistic approach towards the HR functions. HR competencies are expanding all the time – problem solving, decision making, strategic planning, business acumen, etc. are critical HR competencies.
Design the strategic measurement system – identify appropriate measures for your unique organizational needs by looking at other companies. Don’t make the mistake of benchmarking against companies in an entirely different industry or in a different growth stage.
Implement management by measurement – HR leadership needs to be diligent in first selecting, and then consistently measuring, the appropriate success criteria. It may be helpful to set process checkpoints at three or four times during the year to honestly discuss how HR staff is doing in relationship to their strategic objectives.

Our thanks go out to HR guru Linda Gravett for sharing her insights into the HR Scorecard and strategic planning for Human Resources.

In many organizations HR still struggles to find a place at the leadership table. By thinking strategically and relying on proven business practices and tools HR can show value and become a partner with the leadership team. Strategic HR knows how difficult it can be to approach integrating HR practices with the overall business strategy. Let us assist you with your strategic initiatives – visit our HR Strategy page to learn more.

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