hr omissions, things that hr should do but doesn't delete

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A list of powerful practices that most HR departments don't use

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IMPACTFUL THINGS HR SHOULD BE DOING BUT IT OFTEN DOESNT

High-impact Omitted Practices to Consider

2011

Dr. John SullivanProfessor, Author and Advisor to ManagementWWW. DrJohnSullivan.com

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Goals for today

To make you thinkBut rather than thinking about improving your current practices Instead, to get you to think about what youre not doing And to consider adding 1-2 omitted practices that would really improve productivity

Is this the reason for the lower productivity?

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The process I used for identifying these practices

I studied the most innovative HR firms to identify next practices (Google, Microsoft, Facebook etc.)Next, I examined the best practices of highly effective/well-funded business functions to identify omitted practices that could be transferred into HR (Finance, supply chain etc.)I will have met my goal if your reaction to at least a handful of these omitted practices is that makes sense, I wonder why we dont do that?

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Lets look at omitted HR practices

12+ next and omitted practices that can increase productivity and HRs impact (with examples)

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Next practice - Reward great people management

Productivity problemMany managers dont spend much time or take their people management responsibilities seriously

Although HR owns all of the key components (performance management, performance appraisal, competencies and reward systems), we do not usually reward people management performance

What percentage of firms reward managers for their performance on people measures (Source: Stephen Gates of The Conference Board) >

(39%)

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Next practice - Reward great people management

Actions to takeDevelop a people management scorecard for each manager Measure, report and reward managers for outstanding people management results (reward through bonuses and requirements for promotion)Benefits What is measured, reported and rewarded is done first and done bestMgrs. have already learned to respond to rewardsAn example >

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Ex. Quarterly people management scorecard

Team productivity & qualityEmployee innovation impactsQuality of hiresRetention of key employeesDevelopment of leadersInternal release of developed leadersEmployee satisfaction with feedbackBest practice sharingAverage combined rating on the 8 factors ______

Bot. 10%Below aver. Average Top 25%Top 5%

Name _________________ Dept._________Quarter # ______

Key people mgmt performance factors

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Next practice Identify productivity barriers

Productivity problemManagers operate in a competitive world... that forces them to periodically increase productivityHR must offer help in the form of internal productivity consultants (IPC) I have found that the most effective approach for increasing productivity is to utilize employees to identify and remove the barriers that prevent productivity improvementHR productivity consultants can help execute the process

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Next practice Identify productivity barriers

Action Institute a productivity barrier identification and removal process which includes surveys & small groups to identify the barriersBenefits When employees and managers are given the right tools, they excel at identifying these barriersMany barriers are relatively easy to break downProductivity can increase by double digits within monthsAn example >

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Productivity improvement process

Identify barriers to productivity

I need you to increase output by 25%, help me to identify the factors that prevent you from doing that?(200% in two months)

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Productivity problems come from 20 key factors

The manager Hiring/ retaining top eesLearning/ sharingClear goals / Motivation/reward/ engageEmployee skills degradeRight job placement2 way communicationsPerformance metricsPlans and strategyCollaboration for innovation

Prioritize to max impact / focusInfo. for better decisionsTeam member capabilityTools and equipment Inputs/ raw materialsResources & budget A lack of integrationOutside work factors Perceived barriers to productivity/innovation

Even policies can impact productivity

Our Dog Policy

Google's respect and affection for our canine friends is an integral facet of our corporate culture. We have nothing against cats, per se, but we're a dog company

Why does it work Spend more time, more cross functional collaboration, aids recruiting/retention & personalized motivation

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Next practice Improve promotions through contests

Productivity problemPromoting the wrong people can have dramatic negative impacts on productivity, retention and morale

Employees often assume that promotions are biased and are not based on actual abilities

Sometimes each team member has not had an equal chance to demonstrate their performance and capabilities

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Next practice Improve promotions

ActionsPromote people based on their ability to perform in a work problem contest (e.g. Iron Chef)In other cases, let employees appeal when they consider a promotion to be unfair (IBM)Benefits A chance to find and assess many candidatesFewer complaints about bias because the results are performance-based and anonymousSuperior results after a contest promotionAn example >

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Internal competitions can improve performance

MGM Grand sends a message that performance triumphs over tenure (400%)

Learn more about MGMs commitment to its people: http://bit.ly/fotn55

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Omitted practice Convert HR impacts into $

HR problemCurrent HR metrics fail to WOW senior executives who only understand dollars, revenue and profitHR is often underfunded partially because it uses a different language (turnover, engagement, time to fill etc... vs. profit, productivity and ROI) A focus on cutting costs is not as impressive as increasing revenues

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Omitted practice Convert HR impacts into $

Action Convert all major HR outputs into revenue impactsInclude the $ impact of great hires, employee innovations, reduced turnover of top performers and the value of developed leadersBenefits Senior managers can see the tremendous $ impact of HR directly alongside the business impacts of other functions (finance, marketing, supply chain etc.)

Some examples >

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A quick example to illustrate the difference between rev. impact metrics and std. metrics

Standard L&D metrics are OK 98% of employees are satisfied with L & D

The cost of each L&D hour is down 12%

These two could be labeled as so what metrics >

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A quick example to illustrate rev. impact metrics

But revenue impact metrics grab your attention$148k is the average yearly sales of a salesperson It is $197k if they completed a job rotation last yr.It averages $249k if they spend 6 hrs. a wk. or more on social networks sharing best practicesIt is $301,000 if the salesperson did bothFor every 7 salespeople that do both, we increase revenue by $1 millionWe have 211 salespeople

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Google calculates business impactof a single great hire

One top-notch engineer is worth 300 times or more than the average we would rather lose an entire incoming class of engineering graduates than one exceptional technologist.

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Alan EustaceSenior Vice President, Engineering and Research

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Next practice Offer free time / flexibility

Productivity problemThere is a need to dramatically increase ideas, productivity and innovation

HR needs an additional effective tool to supplement the barriers to productivity reduction program

Next generation workers expect flex scheduling, remote work & free time for their own projects

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Next practice Offer free time / flexibility

Action Provide top performers with 20 % time or ROWE optionsBenefits When top performing employees are allowed to make their own time and project decisions, productivity and innovation can increase dramatically (i.e. Genentech and 3m)Office/ real estate costs can be cut dramatically

3 examples >

What is the value of 20% time?

What is the measurable bus. impact of 20% time? 54% of Google products started as 20% time Up to 35% of their traffic comes from them (Rough estimate)

Google programs initiated during 20% time:Google NewsOrkutGmailAdSenseGoogle TranslateGoogle ReaderGoogle EarthGoogle TalkGoogle MapsGoogle Sky

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What is the business impact of offering a flexible work environment?

Results Only Work Environment

Pick your hoursPick where you workNo in-person meetings required

The business impacts:ROWE individuals have 45% lower turnover ($13 million per year at $102k per employee)When workers switch to ROWE, their productivity jumps by

35%

Deloitte lets you design a flexible job

Mass career customization (Deloitte)Every employee can dial up/ down their job as career aspirations & personal needs change including:Work hoursTravel demandsJob responsibilities

Unlike flextime/ job-sharing, all at the location are automatically enrolled to minimize any stigma

Results: most choose to dial up their career (66%), Voluntary turnover rates of top performers choosing this option was 200% lower

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Offering no cost short-term projects

A free time projects websiteThey offer employees a chance to bid on short-term projectsThese part-time job rotat