Recruitment/retention, strategic planning and cost containment are among HR’s top priorities for 2007, according to preliminary results from The Bureau of National Affairs’ HR Department Benchmarks and Analysis 2006 Draft. The survey of U.S. employers reported that 38% of respondents selected issues related to recruitment or retention as their top priority for 2007. Another 19% chose strategic planning and management, which included such issues as talent management, succession planning and measurement. Cost containment, especially for benefits, was noted as the top priority for 14% of respondents, and 22% noted other priorities for 2007, including regulatory compliance and productivity/quality improvements. (HR Department Benchmarks and Analysis 2006 Draft [Bureau of National Affairs, Inc.], 2006, Ch. 5, pp. 4-5)

Nearly half (49.8%) of companies overall are planning HR budget increases of less than 2% for 2007, but private-practice firms such as law and accounting firms are more likely than firms in other industries to budget increases of more than 5%, according to the annual HR Department Management and Cost Control Survey conducted by IOMA for HRfocus. Overall, 34.2% of firms are planning HR budget increases of 2% to 5% for 2007, and 16.0% are planning increases of more than 5%. Following are the 2007 planned HR budget increases by industry.

(HRfocus, July 2006, pp. 1, 13)

As reported by HRI, to get the most value out of HR outsourcing, firms should plan for how the roles of retained HR staff will change, according to HR consulting firm Buck Consultants. A 2006 Buck survey of 85 U.S. employers, "Retained HR After Outsourcing: Optimizing Performance," found that HR staff who were kept on after the outsourcing decision tended to become "significantly more involved in consultative and decision support." More than half of firms reporting success in their outsourcing initiatives had planned ahead for role changes when they formulated their strategy (54%) and had provided training in consulting skills and business skills. Bruce Barge, a Buck managing director, said, "Our survey shows that planning ahead for the changed roles of retained HR staff results in maximum business value." ("Buck Consultants Survey" [Buck Consultants], June 14, 2006)

As reported by HRI, global experience, demonstrated expertise, a solid grasp of talent management, the ability to support strategic decisions with analysis, and an authoritative presence are among the traits sought for HR executives, according to a series of interviews conducted by BNA. Someone who "has lived overseas and had meaningful experience, such as a start up or close down of a facility" is the kind of international experience that sets a candidate apart, says Greg Hessel, a global director with executive search firm Korn/Ferry International. In addition, candidates vying for top HR positions must be knowledgeable about Sarbanes-Oxley compliance, executive compensation, the use of metrics for decision support and talent management, adds Wendy Murphy, managing partner with executive search firm Heidrick & Struggles. Patrick M. Wright, director of Cornell University’s Center for Advanced Human Resources, says that business and personal credibility are more important than ever, too. Yet, the deciding factor is often the "chemistry" between the HR candidate and the hiring executive, says Hessel. (Human Resources Report [Phillips], September 11, 2006, pp. 957-958)

As reported by HRI, accelerating industrialization in some developing nations may be responsible for the global increase in job-related illnesses and injuries, according to data from the International Labour Organization (ILO). The ILO found that job fatalities rose in China and Latin America largely due to the construction boom, which employs many workers, especially in Brazil and Mexico. In China, job deaths rose from 73,500 in 1998 to 90,500 in 2001; in Latin America, fatalities grew from 29,500 in 1998 to 39,500 in 2001. Jukka Takala, director of the ILO Safework Programme, attributed the increase to growing numbers of unskilled workers that come from rural areas in developing nations. "Most have never worked with heavy machinery, and some have little or no experience with industrial hazards such as electricity." Takala said he expected such figures to shrink as development levels off and workers take less-dangerous jobs. (Global HR Report, May 2, 2006)

As reported by HRI, a growing trend finds innovation and productivity rising as U.S. employers let employees work on pet projects on company time. Joyce Gioia, author of Impending Crisis: Too Many Jobs, Too Few People, thinks pet-project policies will become popular recruitment and retention tools as loyalty becomes more precious in the face of a tight labor market. Genentech and 3M have done it for years, and Google has made its "20% time" policy a major recruiting tool as well as an innovation driver. Giving employees a chunk of time to devote to their own personal projects - some of which have resulted in the development of a cancer-fighting drug and the creation of Post-it Notes - pays great dividends in innovation and productivity, not to mention new product sales. And allowing employees to work on independent projects can stimulate more loyalty and creativity. According to Robert Fulmer, visiting business professor at Pepperdine University, "It’s a way to get people to go beyond what’s expected of them." (Workforce Management [Frauenheim], April 24, 2006, pp. 40, 41.)

As reported by HRI, most companies have no defined policy against office romance, but workers seem more open-minded about it than they were four years ago, according to the 2006 Workplace Romance survey of 493 HR professionals and 408 employees by the Society for Human Resource Management and CareerJournal.com. Only 9% of HR pros surveyed prohibit dating among employees, and more than 70% of organizations have no formal written or verbal policies about office romance. HR professionals say that they are less concerned about sexual harassment allegations than they were in 2001 and more worried about office dating causing Fatal Attraction-style retaliation among co-workers whose romances hit the rocks. But the big no-no among HR professionals is still a romance between a boss and his or her direct subordinate. Eighty percent called it inappropriate in 2005, up from 64% in 2001. However, workers seem less concerned about it. Seventy percent of employees felt it was wrong in 2001, while just 60% felt that way in 2005. While more companies are requiring employees to confess when they have an office romance, fewer than ever are actually confessing. (HR News [Gurchiek], February 9, 2006)

As reported by HRI, having a diverse workforce may enhance employee loyalty, according to a Gallup Poll commissioned to mark the 40th anniversary of the birth of the Equal Employment Opportunity Commission. The survey found that 61% of employees who perceived that their employer ranked in the upper third of respondents for diversity said they were "extremely satisfied," while satisfaction among those who ranked their company in the middle or lower third slid to 34% and 21%, respectively. Gallup pollster Max Larsen said, "These data make it pretty clear that it makes good business sense to have operable diversity efforts in organizations." (Employee Benefit News [Butler], March 2006, p. 16)

As reported by HRI, "The most important element influencing engagement is the possession of sufficient opportunities to learn and develop new skills," reports World at Work, relying on the findings of a Towers Perrin global workforce survey of 86,000 employees administered in 2005. When respondents were queried about the top drivers of engagement, "opportunities to learn and develop new skills" ranked first, while "improved my skills and capabilities over the last year" ranked second. These responses show that development and skill-building has positive results far beyond the immediate application of the skills acquired. Highly engaged employees work harder and are more likely to stay with the company, as other findings from the same survey show. (World at Work [O'Neil and Gebauer], First Quarter 2006, pp. 9, 14)

The end of the week brings an end to our forum on leadership.  The discussion will close with one final question by Dr. Al Coke, an expert in leading, training, managing and training. 

Today, Dr. Al Coke wants you to consider,

Do you know the difference between your managership requirements and your leadership requirements?