CONDUIT

The Evolving role of HR

The Evolving role of HR: Partnering with Leadership by Michael Echols in the May 2006 edition of Workforce Performance Solutions makes the case that the new HR executive is a proactive, strategic member of the executive team responsible for developing the most precious of all corporate resources—leadership. We could not agree more.    

We are in a ‘knowledge economy’. Leadership talent is needed at all levels within the organization  to process information and leverage critical thinking skills.  As Echols points out, senior executives tend to look at recruitment and not retention as the preferred solution for maintaining adequate supply of leadership. But as workforce demographics shift there will be a shallower pool to draw from stifling growth and expansion opportunities for companies not properly prepared. 

We are witnessing progressive companies redefine the recruitment paradigm. By using targeted peer-peer and manager-employee recognition strategies, firms are re-recruiting employees everyday. By recognizing individual efforts that are in line with the larger corporate mission, these companies are consciously reminding employees why they came on board in the first place—‘to make a difference’. They are also strengthening the employee’s emotional commitment to the corporate cause. That investment in cultivating an energized leader will pay off handsomely as work practices and obstacles become increasingly complex. Firms that cultivate the mindshare and commitment of their employees will in the process be re-recruiting them.

Intrapreneurs: Who are they?

Who are these new breed of leaders called the corporate intrapreneurs? They are the forward- thinking employees within every organization that are constantly seeking ways to optimize resources and innovate existing processes for maximum impact and return.

According to Neal Thornberry in his recent book, Lead Like an Entrepreneur , internal entrepreneurs or corporate intrapreneurs can help businesses identify and create new growth-oriented business opportunities or leverage existing processes for maximum return. 

As we all know sustained competitive advantage comes from using internal strengths to exploit opportunities and neutralize threats. An often untapped strength is the perspective that comes from an employee’s experience and insight. In many organizations this creative energy often goes unrealized. Organizations that encourage employees to explore innovation by recognizing risk taking are realizing new potential while developing new leaders within their ranks.

If you want to encourage intrapreneurship, Thornberry says you should create supporting sub-structures for intrapreneural activities including a recognition platform that celebrates both success and attempts (including failed efforts) to innovate.

Doing so builds momentum and encourages engagement. Companies that recognize innovative initiative have found that efforts to promote and recognize intrapreneurs have inspired and motivated others to pioneer as well. 

Appealing to Generation X

A recent article in the business section of the New York Post; “Microsoft Throws In The Towel To Pampered Geeks” reflects the ongoing competitive battle to retain talent but with a fresh twist—it illustrates the new power and preferences of Generation X.

Gen X, ages 25-40, makes up about 30% of the workforce and they are very different than those preceding Baby Boomers.  Generation X wants work-life balance, they crave variety and independence. Gen Xers are loyal yes—but to themselves and not the companies they work for.

I once heard a Generation Xer say that, “a career is simply a job one has had way too long’. He offered that comment tongue-in cheek of course but it does illustrate the sentiment these new breed of workers have to employers. Why? Many come from two worker homes and became skeptics when their parents’ loyalties were rewarded with layoffs, downsizing, reduced benefits and pension defaults. 

The said fact for corporate America is this: Companies looking to cut costs in the 90’s also cut loyalties with future generations. The implied ‘contract for life’ no longer exists and progressive firms like Microsoft recognize they need to be creative in how they re-recruit employees.

And if you think throwing money at the problem is the answer think again. While cash plays a significant role in attracting Gen Xer’s to a company, research confirms it plays only a minor role in getting people to think of their job as their businesses. That aspect of employee-employer shared commitment stems from an agreeable culture and work environment.   

Gen X loyalty comes not from future expectations but from a sense that this is the right place, today. If you want to keep Gen Xers at work recruit them often. Let them know that you value their input, respect their opinions and admire their decision making abilities. Give them the platform to do the same with their co-workers.  This will help ignite a culture of shared values and beliefs and will reinforce the simple notion that you are on the same page with them everyday.

we are in a thinking economy

Comments on Pink: Be in the Right Mind, by Adrienne Fox in HR Magazine 2006, page 32

Daniel Pink is right on the money—so to speak. The author of Free Agent Nation believes we are already in a “thinking economy”, one where employees who actively think, process, and react accordingly are exponentially more valuable to their companies than those that robotically plug away.

Employees who think of their job not simply as the place they work, or the task they perform, but as their business are more productive, stay on the job longer, are viewed as leaders by peers and  have a positive effect on customer loyalty.

It is our observation that these employees are often more emotionally and intellectuality connected to your business purpose and share the same goals as your business leaders do. 

But how do you nurture this level of commitment? How do you recognize when it occurs? How do you encourage it across the enterprise?   

Many firms have developed peer-peer recognition platforms that allow coworkers to recognize one another when they go the extra mile, own the outcome, or just help get each other through tough stretches.

In the process they are not only identifying and cultivating that most precious of all corporate commodities—leadership—they are also promoting best practices and attitudes across the workplace.

If there is one thing that I’ve leaned from reading Daniel’s book is that companies need to recruit their best employees over and over again. This low cost, high impact approach is indeed a prudent approach.   

Emerging Market - China

At the recent World at Work Conference (May 7-10) there was much discussion at emerging markets specifically China. With a total population of 1.3 billion, China is one of the largest economies in the world and is an attractive economy for multinationals which currently comprise about 15% of all companies in China.   

While reward and recognition strategies may vary among models (state owned, private enterprise and multinationals) one thing is clear: there has been a rapid adaptation to a free market economy. That makes it easier for multinationals to operate there, but it also signals that those that do will need to be innovative with their employee retention strategies. In China employee attrition is high and the war for talent is as competitive as it is in the west.

Already we are seeing evidence that reward program planners are taking a holistic view with pay, benefits, leaning and work environment to promote retention and engagement. It’s hard to imagine how much the world has flattened. Consider this: In the new China economy individual recognition goes a long way in helping employees there understand how their performance impacts business results. Sounds familiar doesn’t it? 

Transnationals looking to outperform the China market will want to explore implementing western style peer-peer and manager-associate recognition programs to sustain high levels of productivity and retention. Systems that translate language and award in local currency will be in demand.   

Sarbanes-Oxley Compliance

A recent blurb in the Money section of Tuesday’s (May 9th) USA Today confirms what we all knew what was going on when the law was passed in 2002: Sarbanes-Oxley compliance is costly. 

Sarbanes-Oxley presents both problems and opportunities for those who approach compliance with the appropriate end goal in mind – to increase shareholder value.  The challenge is finding the time, expertise, and resources to comply.   

Sarbanes-Oxley legislation has not dampened reward and recognition activity. It has however broadened the dimension of data and analysis. While reward and recognition activity is likely to become a material reporting function, it has resulted in cautious financial executives getting involved early in the planning process and challenging financial justification before funds are allocated.

Financial executives are demanding air-tight business cases and are hesitant to approve budgets unless there is a clear and demonstrable business need. They are also demanding detailed tracking of all program activities. Depending on the corporate environment, Sarbanes-Oxley has elevated launch barriers and added new layers of ongoing scrutiny. Progressive companies have modified their reporting structure to reflect this and in some cases are using digital dashboards to afford faster data views that allow planners to constantly examine a program’s relevancy and business purpose.