Six Hot Button Issues that Could Cost MillionsRichard J. Anthony, Sr.

As if they didn't have enough to worry about, employers are facing six hot button issues that could cost millions. If not addressed, these are the issues that sink companies or stunt growth. The common denominator is PEOPLE.

As business consultants, we see many of the same insidious issues taking root in small and midsize firms as well large companies. They sap valuable resources out of organizations and often go unnoticed until a crisis develops, requiring even more effort and dollars to fix the problem. The cost in hard and soft dollars is immense; in lost opportunity, incalculable.

Issue #1 — People Do What’s Valued, Observed, Measured and Rewarded

Compensation programs fail because they no longer fit the organizations they were designed for, assuming it was a good fit to begin with. They’re out of sync with the behaviors that are really valued. They’re not linked to observable, measurable behaviors and outcomes. And they don’t have the correct ratio of fixed to variable pay. The consequences of “failure of fit” pay programs are worse when economic pressures flat line compensation, resulting in low morale, lower productivity and wasted financial resources.

Issue #2 — Boomers on the March

Won’t be long before the first wave of Baby Boomers vacate their jobs, taking with them years of experience and a work ethic that wasn’t perfect, but preferable in many cases to the workforce a generation or two behind them. Yet most employers are doing nothing to plan for the exodus. According to a survey of 200 corporate HR professionals in the Philadelphia region, more than 85% of respondents reported they have no retirement planning process in place and over 90% said they have no plans to modify pay or benefits or hours of work to accommodate the Baby Boomers who are about to transition to the next stage of their lives.

Issue #3 — Intergenerational Conflict in the Workplace

For the first time in history, four generations of workers are sharing the workplace. Ask any first line supervisor how difficult it is to build bridges of understanding, tolerance and respect among the generations vying for opportunity, recognition and reward. Respect in the workplace is no longer limited to adherence to policies prohibiting harassment and discrimination; productivity is up or down depending upon how well four very different generations are able to get beyond their differences to achieve competitive advantage. Getting there requires a different set of rules about how to manage people and turn intergenerational variances into a competitive advantage.

Issue #4 — Seven Questions All Employees Have

Money might get qualified recruits in the door but it won’t necessarily keep them in the house. Savvy employers are taking a close look at their recruitmentand retention strategies because of the increasing cost of hiring, onboarding and training employees. Quality candidates for any job are always in a seller’s market. They have to connect with a prospective employer and over time they require the answers to seven questions: What’s my job? Am I valued? How am I doing? Where are we going? How do I fit in? How can I help? What’s in it for me? Coming up with compelling, credible answers is hard work. But necessary work to ensure enough of the right people, doing the right things, consistently.

Issue #5 — Succession Planning in the Breach

All of the data show that most companies do not have succession plans in place. The predictable result is that American business is facing a looming leadership crisis, according to statistics from the US Department of Labor. In the Philadelphia region, for example, it is estimated that more than half of privately held companies have not planned to replace their CEOs, many of whom founded their companies decades ago. The reasons for the lack of preparedness range from delusions of immortality to not knowing how to plan for a transfer of power. The most common reason is simply procrastination. Is it any wonder that most first generation companies don’t make it past their founders?

Issue #6 — Mass Customized Communication

In a college class titled “Organizational and Leadership Communication,” I teach that effective communication begins with establishing an environment of mutual trust and respect. An equally important point is that in today’s digitized world, there is no such thing as mass communication. The technology that has brought us instantaneous, real-time access to information has enabled mass customized communication— essentially the same message packaged differently to reach vertical segments of large demographic groups. The Internet is the best example: millions of websites, blogs, social networks and affinity groups that never sleep. The rumor mill, always the bane of top management because of its speed and accuracy, is built in to modern communication. The challenge is to fashion communications that excite, engage and motivate the workforce to fight for and hold on to competitive advantage. _____________________________________________________________

Richard J. Anthony, sr., is founder and managing director of The Solutions Network, inc., a consulting firm specializing in human resource management and performance improvement. He is the author of Organizations, People & Effective Communication and teaches courses in organizational and leadership communication at Villanova University. He is the founder of the Entrepreneurs

Network, a venue for aspiring and serial entrepreneurs and accredited angel investors.