Workforce Development - A Good Investment?

What are the pros and cons about telecommuting?

I have a blog I read with some frequency entitled HR Clean-up (Because HR is a Dirty Business), that recently published a great article entitled "Telecommuting"

It is written from the perspective of the current astronomical fuel prices we're seeing. The gist of the article follows:

There was an article, not a big one, in Sunday's Boston Globe that stated "4-day weeks, telecommuting look better to employers now".  Since I actually teach Virtual HR and I've been a proponent for flexible work arrangements for a long time, I read with interest. Traffic It turns out that soaring commuting costs are finally forcing employers to help employees out.  And, given that so many of us have moved away from work to find cheaper housing, employees are buckling under the increased expenses.  On top of employee costs, employer costs are also skyrocketing.  Companies are starting to figure out that office space isn't cheap--so if an employee is ok with heating and cooling themselves, why not? The other really big change is on the legal front.  Finally, there seems to be some movement to get a bit more flexible. As organizations start to embrace telecommuting, it will be critical for HR to be at the decision making table--along with IT, Building Services, and everyone else who makes the organization tick.  HR has an amazing opportunity to push the traditional boundaries of "butt in seat" and get companies to start measuring what counts--work output. It is going to be a long hot Summer and fuel costs are going to continue to escalate.

However, there are many faces beyond this article, that factor into the telecommuting discussion:

An article "Telecommuting not so great for those left in office" that was published in January 2008 by Kristina Cooke over at Reuters looks at how those that telecommute have less stress and a higher morale compared to those that are left to come into an office everyday. She mentions that “their co-workers tend to find the workplace less enjoyable, have fewer emotional ties to co-workers and generally feel less obligated to the organization.

The beginning of the article states "Telecommuting may boost morale, and cut stress, but it can have the opposite effect on those left behind in the office, according to a new study"

The author cites how telecommuting has been a growing trend in the United States since about 2000. About 37 percent of U.S.-based and international companies now offer flexible work arrangements, with the number of those programs growing at a rate of 11 percent per year, according to the Society of Human Resource Management. but then goes on to explain how

The author cites research of Timothy Golden, a management professor at Rensselaer Polytechnic Institute that claims that when a number of their co-workers toil away from the office by using computers, cell-phones or other electronic equipment, those who do not telecommute are more likely to be dissatisfied with their job and leave the company.

I'm a bit skeptical about this inference.

In the late 1990's I worked with IBA, an early pioneer in telecommuting, and participated in the establishment of the first "telework" centers around Washington DC.  Others have since sprung up, adding credence to the ideas of telecommuting in various "flavors".  In 2006, The Telework Coalition, conducted a Telework Benchmarking study of 13 large organizations with mature telework programs.

This study asked about the attitudes of those employees who did not telework. Both our study and two previously conducted studies by other organizations in which there were multiple participants showed that the non teleworking coworkers were both enthusiastically supportive and felt teleworking was good for the organization, or at the least, the situation was a non issue.

I believe that this area is ripe for investigation and action by management and HR practitioners.  Since each organizations' DNA is different, it may not be the right solution for every situation, but there are viable telecommuting approaches that will and do help organizations attract and retain talent in todays increasingly complex market.

The key talent planning areas - Overview

As I speak at different events around the country people come up and ask a lot of really good (and sometimes tough) questions.  One of the ones I frequently hear is "What are some of the key talent planning areas that I should be working on?"

That's a big area, and I'll try to expand on some of these over the next few weeks, but let me begin by summarizing for you:

Operating Model - (what "stage" is your organization in?)

• Growth, contraction, restructuring, reorgs, funding

Workload & Flow - (how are you approaching the process of managing your workforce?)

• Outsourcing, combining functions, realigned duties

New Positions - (what is the expected impact of new additions?)

• New positions; additional headcount on existing positions

Technology - (how will technology affect my workforce requirements?)

• Expected productivity gains; reduced headcount needs

Work Processes - (how can we re-engineer our current processes to acheive smarter results?)

• Expected productivity gains; reduced headcount needs

Retirements - (looking at the inevitable loss of knowledge, experience and industry contacts)

• Planned (known) and historical level of unplanned

Turnover (recognizing that levels of long-term commitment are going down, and that competition for skilled workers is going up)

• Planned and unplanned voluntary and involuntary

Diversity (as our workforce gets increasingly diverse, not get more multicultural - our organizations need to be more adaptable)

• Any specific goals or talent gaps that need filled

Buy vs. Build - (FTE vs contingent labor pool - which works best for you?)

• Recruit or train/develop the needed skills internally

Competencies - (Its all about having the competencies you need to get the job done)

• Any gaps in required capabilities & related competencies

Want to be thrown into the "deep water" unexpectedly?

Nobody likes surprises, and the people you are grooming for future top opportunities are no different.  That's why it's extremely important to make sure that you have a "pre-departure cross-cultural training" program established when you are thinking about sending people to work overseas.

A pre-departure training program helps to ensure fewer difficulties when abroad. The program should cover such topics as: customs and norms of the country; working visas; risks and responsibilities of travel; health issues; emergency procedures; day-to-day living; strategies for adapting to an international environment; and ongoing communication with the program.

As part of the training, it is also important to provide participants with the tools necessary to recognize and to effectively deal with difficulties or traumatic events.

During the course of the training, the expat should be encouraged to take responsibility for their health and well being abroad.

Such a program should be carefully thought out and run for at least several days, and ensure that the expat and their trailing spouse does not get the impression that they're being "thrown into the deep water" and expected to learn how to swim by themselves.

What should such a program entail?

Obviously, there are many variations, but I'd suggest as a minimum:

• Visas, Passports, Travel Arrangements, Vaccinations, Insurance, Medical Exam, Basic Items to Bring, etc.
• Communication/Reporting expectations
• Accommodation provisions of the assignment
• Policies and Procedures (contracts, emergency form, liability waiver, etc)
• Intercultural communications to include
  • The Concept of Culture
  • Understanding Culture Shock
  • The Ways in which Values and Attitudes Affect Behavior
  • Communicating Across Cultures
  • Problem Solving scenarios
• An overview of the "Host Country"
  • Social, Political and Economic context
  • Cultural Context: Values and Attitudes
  • Day to Day Realities they'll likely encounter
• Managing Your Health Overseas is important too. 
  • Logistics and medical preparations
  • Maintaining their health overseas
  • Coping with stress and mental health while abroad
• Safety and Security Issues are a MUST
  • Tips on keeping safe
  • Sexual Harassment
  • Conflict Resolution
  • Emergency Procedures

Ideally, this orientation should be done by company managers who have been overseas and have been reassimilated into the company.  It will help the anxious manager/spouse to get the facts and experiences from someone who's "been there"

And while we're on the subject, don't underestimate the impact of the spouse in the "assignment satisfaction process"  (we'll get into this more deeply in another post in this space)

To deal proactively with spouse concerns, this training should also deal with helping him/her identify career orientation and aspirations, assess career “sabbatical” options and alternatives, review realistic relocation options and support needs, and establish informal communication links.

Putting these "up front" pieces in place will help to ensure that the persons international work assignment is a success.

Is Letting Them Go a Wise Strategy?

Leslie Levine is a seasoned author who writes great stuff about what's happening in toe workforce.  One of the articles she wrote about developing your employees, entitled "Let Em Go" struck a nerve with me.

She cites how some businesses view the anticipated departure of Baby Boomer s as an exodus, which is a fairly dramatic term. Is that what you see happening at your company? Even if you don´t know when your older employees plan to leave it still behooves you to have some idea. Clearly, you don´t want to be caught off guard, especially if your competition has been planning all along. Here are some points to consider:

She presents in this article a series of probing questions that aren't intended to put you into a panic but rather to remind you that the future is here.

She refers to David Delong, author of the book, "Lost Knowledge: Confronting the Threat of an Aging Workforce", and a management consultant and researcher at MIT´s AgeLab, stated on NPR that Leaving workforce with knowledge that didn't exist 20 years ago.

He also said that between 2003 and 2013 the age group of 50-64 will grow 40 percent while the age group 35-49 will shrink 10 percent. Those are numbers that no business can afford to ignore. What will you do?

I'll also suggest a alternative view that I hope evokes some discussion...

What of the "knowledge" held by baby boomers is worth passing along to the younger generations?

I throw out this question, because, depending upon which industry you are in, the "entrenched" thinking of these workers may be viewed as a factor in prohibiting new ideas from being developed.

So, is it always valid to assume that the "boomer knowledge bank" should be passed on?  Readers, care to share your experiences?

Being "Green" is Also Good For Worker Retention

GrAn article published by the American Society of Heating, Refrigerating, and Air-Conditioning Engineers says that being "green" is not only good for the earth, it's also good for employee retention, worker morale and the bottom line.

That's the message from the Kenexa Research Institute's 2007 WorkTrends[TM] survey of workers in the U.S., U.K., Germany, China, India and Brazil. The survey shows companies with clear corporate social responsibility (CRS) efforts, including environmental and social programs, are most satisfied.

Kenexa's executive director, Jack Wiley, a workforce development guru, says the survey shows workers at these companies stay at their jobs longer and are more content with senior management. He says other benefits of CRS activities include increasing an organization's advantage when recruiting employees, setting the organization apart in terms of employment brand, elevating the sense of teamwork among employees, and helping establish an emotional tie between the employee and the organization.

Going green is becoming increasingly popular, so why wouldn't you want to increase your retention while you build employee engagement, and social awareness?

The role that "Career Blockage" plays in International Assignments

Increasingly, firms find that it is necessary and prudent to expose their promising talent to international assignments.  Sometimes it works out fine, other times it doesn't.

One of the reasons cited by expats that leave posts (or firms) is "career blockage", or better known as the feeling that working abroad has gotten their career sidetracked, while people back home are climbing the corporate ladder.

I used to travel abroad extensively, and would frequently run into an expat that after a few drinks would admit “the home office has forgotten about me”

It doesn't seem to matter whether you are doing your job or not, it's just a human nature response to conditions.  It appears to the expat that there is a lack of collegiality and communication when working abroad, especially when surrounded by cultural natives who are in their natural setting, and receiving support and personal communications routinely.

The role of "HQ" managing this common concern is significant. 

HR needs to ensure that expatriates know that an international assignment helps in terms of advancement within the firm.  This also needs to be periodically reinforced by upper management.  Sometimes this is hard to do, especially when there is a lot or organizational "churn" at the upper management levels with people moving to different jobs, or leaving the firm altogether.  Remember that the initial expectations that may have been set, if not committed to a written agreement, may not survive if there is (as if often the case), changes in upper management.

Likewise, planning needs to take into consideration, the very real concerns that expats have about their return to their "home base."  I have declined some overseas posts because the company was unwilling or unable to describe what would happen upon my return to the states.

Will the firm respect (and value) the unique new skills that I have acquired while overseas?  Will my return represent a "loss of status" (either real or perceived)?  Will there be a plan for re-integrating me into the stateside business?  Reverse "Culture Shock" can also be a factor, (and an adjustment period is a wise idea for the expat, as well as their family)  If firms are not prepared to do these things, it can really impact on the willingness of personnel to go overseas on assignment.

It is food for thought, hmmmm?

Good Grief Charley Brown ! Now We Have a Maintenance Crisis

My thanks to Joel Leonard over at PlantServices.com for taking the bull by the horns.

With American Idol returning to the television air waves, Joel was reminded of why he started his crusade for awareness for the Maintenance Crisis in the first place.

The fuss and attention being paid to crowning still another singing American Idol has gotten on his nerves again. In case you didn’t know, almost five years ago he was a guest speaker at the Society for Maintenance & Reliability Professionals (SMRP) Conference in Nashville. That conference changed his life and started him on a crusade against the maintenance crisis.

At the time, Joel was serving as VP of the Association for Facilities Engineering and the board had been discussing the pending retirement of the boomer generation. To his surprise, that was a key concern at SMRP. Bob Baldwin, then editor of Maintenance Technology, led an open discussion about the pending crisis. He polled the audience of more than 600 engineers and maintenance pros from the biggest companies in the United States and said, “Raise your hand if you plan to retire in the next 10 years.”

More than 90% of the audience  reached for the sky. Then he asked the attendees to keep their hands raised if they felt comfortable with the next generation. Everyone dropped their hands.

Baldwin then asked why. One said,  “The kids aren’t hungry and aren’t pursuing the education needed to advance in this competitive profession.” Others chimed in, saying, “The insecurity of manufacturing is scaring the younger generation away,” and, They don’t want to get their hands dirty.” Some said that most of them don’t even know about the maintenance, reliability and facilities engineering professions. Or maintenance simply just isn’t cool.

When the group adjourned for a break, Joel and others stretched their legs outside in the 30° weather. To their surprise, around the corner they saw about 5,000 of the very people we had been looking for —16-to-28-year-olds — standing in a line outside the Nashville Coliseum. They were waiting to audition for American Idol. While we were discussing the exodus of retiring maintenance talent, whose salaries averaged more than $80,000, and wondering where the next generation was, we realized there they here at the Coliseum, hoping to sing their way to the top.

That evening, they decided that talking at maintenance conferences or writing books and articles for other engineers wouldn't fix the problem because outsiders need to be aware of the problem and the opportunities the crisis presents. After a couple of barley-infused beverages, Joel posed, “Why not write a song about the maintenance crisis?” His friends agreed that it was a good idea, but they said he couldn’t do it.

They were partly right: he couldn’t do it alone. With the help of some friends, real musicians took Joel's original lyrics and now as a result there we is not only a song, but in nine genres, with one version especially for women, and jazz, Spanish and French renditions in the works.

The songs have been played at industrial and engineering conferences worldwide. Rolls Royce Aerospace and others have made it their department’s anthem. The songs have been downloaded from Joel's Web site more than 50,000 times. Radio stations, including National Public Radio, have played it. Even a class of sixth graders knows the country version, “Find me a Maintenance Woman,” and at least three of them memorized the lyrics.

Free downloads of “Find Me a Maintenance Woman” and “The Maintenance Crisis Song” can be found at www.mpactlearning.com.

Are Construction Jobs Going Down Under?

One of my favorite sources on trends about the skilled labor shortage, is "Perfect Labor Storm 2.0" authored by Ira Wolfe, who constantly helps fill in the gaps about HOW people are coping with the worsening skills shortage.

One of Ira's latest excellent contributions is "Will U.S. construction workers flee to Australia?" where he discusses how the Australian Housing Industry Association (HIA) has called for a special visa scheme to recruit 15,000 overseas construction workers to combat the local (Australian) skills crisis. Thousands of skilled building workers could be lured from the faltering US housing industry to help ease the crisis "down under"

I'd like all of my readers in the construction space to ponder this, and carefully so.  Ask yourself what you think the economic will be to the US, when many workers choose to "relocate" their future to the other side of the globe. 

Just check out one of many sites offering Construction Jobs in Australia and you'll notice two things:

1. many companies are actively seeking qualified and skilled people to join them, and
2. these are the same types of jobs that are being cut by the implosion of the residential housing construction market in the U.S.

American construction workers may be surprised at how well they'll be received by the Australian workforce marketplace, and the incentives they'll have to come down to work.  Kind of makes you wonder when the last time their former American employers told them how valued they were?

Put yourself in the place of the laid-off or soon-to-be-laid-off construction worker.
There are a number of questions you might want to ask yourself...

• Did you feel valued at your last job? 
  
  • Was it because you were unappreciated, or was it because your work contribution was just "ordinary"?
• Do you have the skills to compete in the highly competitive Australian workforce
  • you didn't think they were looking for unskilled general labor did you?
  • (by skills, I mean the skills to survive in the marketplace, not just the technical skills to get the job)

Looking for another job, especially in another country, can be a daunting, as well as an enlightening process for US construction workers.  By entering into a job search in the other parts of the world, they will become informed of other opportunities and perhaps for the first time for most U.S. construction workers, lets them know how competitive they are in the "global" job market.  (HINT: If your skills have become outdated or job specific, you might want to consider a few training programs in order to update your skills, or develop new ones.)

American construction workers who consider the new global opportunities that are appearing, may also find that they need skills to adapt in a different culture that they never before had to consider.

Time of great risk or great opportunity?  I guess it depends on how you want to look at it.

Can You Afford The High Co$t of Turnover?

Thanks to the folks over at Chrysalis for this article, which puts the real cost of workforce turnover into a real-world dollars and sense perspective.

Case Study:The High Cost of Workforce Turnover

Les's business generated revenues of $6.6 million in 2003. Profit margins were 14%. His 2004 projected increase in revenues (an eight percent increase) is $528,000.

Last year, Les's company produced sixty-four W- 2's for 35 positions. Essentially they hired 64 new employees for twenty positions; 15 employees were employed more than 12 months.

On the surface, turnover appears to be 83 percent, less than the 92 percent industry average. Churn-over, the number of employees hired and gone in less than one-year, was a whopping 320 percent (64 attempts at hiring for 20 positions)!

At the cost of $6,000 per employee, these 64 employees cost the company $384,000. Even at the same clip this year, churn-over will eat up nearly seventy-two percent of the projected revenue gains.

What's worse - much worse - is how much revenue has to increase to sustain the 14 percent profit margin. At fourteen percent profit margin, nearly $2,743,000 in additional revenues need to be brought in just to keep pace with the lost costs of churn-over.

Increasing revenues shouldn't be Les' primary focus unless he likes to just work harder and harder with not a lot to show for it. If Les and his team would only put a plan in motion to reduce annual hourly turnover to 25%, they would find it much less painful to grow the business at the top line and the bottom line.

The cost of 16 churned employees would be $96,000, a savings of $288,000 in the human resource line item. Re-funneling a portion of the savings for wages, benefits and training back to the remaining employees would certainly be a good idea too as the return on retaining employees is clearly much greater than recruiting new ones.

Of even greater importance will be the increased profit margin from revenue growth. Although the revenues required to foot the bill for even 25 percent turnover is still over $600,000, Les's company will increase profits due to increased productivity and quality from a more experienced workforce, lower administrative and training costs for new hires, and less stress on supervisors, managers and co-workers.

Myths about Gen X in the Workforce - They don't want to grow up

The Reality:

They really don't know how.

The youngest generations in today's workforce are facing a delayed adulthood. They are getting married later, having children later and just generally facing the "real world" later. This isn't the result of a mutated maturity gene, it just is. And if we are being completely honest, Boomers had a lot to do with why it's happening.

First, as parents, Boomers had a tendency to coddle their children and use their own good fortune to make sure their children didn't experience adversity. Second, as career models, Boomers demonstrated the toll of working long hours and "paying one's dues" in a way that made their children less likely to follow in their footsteps. Millenials today look at the corporate ladder and think, "there must be another way."

My advice to you—don't waste time wishing they were different. Don't spend your energy comparing today's youth to the desires and drive you had at age 18. These employees are not a reflection of you, nor are they an earlier version of you. And again, that is okay. Your task is to take this new understanding and use it to reposition how you interact with, motivate and reward your staff.

Take attire for instance. Your 18-year-old self would have gladly donned whatever uniform was necessary to fit the company mold. Be it pressed khakis and a tie or a specific corporate uniform, fitting in was part of the package. Today's youth wants to stand out. They want their individuality to shine through even when required to provide a consistent standard of service and performance. Balancing corporate needs with individual desires takes some creative thinking.

Home Depot is one company that has addressed this dilemma at a very basic level—company uniforms. They simply require that all employees wear a standard Home Depot apron. Be yourself underneath (within reason) and show the customer that you are on the Home Depot team with this bright orange apron. Is there a standard that you can adopt to accommodate individual preferences? Something to think about.

Thanks to Cam Marsten for research cited in this article

Boomers Defy Traditional Retirement Through 'Re-careering'

Although the demand for talent continues to escalate as millions of Baby Boomers reach retirement age, a growing number of these professionals are "re-careering," or changing professions mid to late in their careers, according to more than 270 international recruiters surveyed by Korn Ferry

read more | digg story

The "Perfect Labor Storm" and Why It Isn't Going Away

Among the top experts in the discussion of the "Perfect Labor Storm" is Ira Wolfe, who authored the book by the same title.

The book discusses why the aging workers, retiring baby boomers, rising health care costs, shortages of skilled workers, generational gaps, work ethics (just a few of the workforce demographic and socio-economic events that I discuss on this blog) are colliding to produce the biggest shortage of skilled workers in the United States and many other developed countries.

It's a good read, and worth the time, especially if you're an employer or policy maker.

Here's a synopsis of what you'll find...

Many managers and business owners and even economists and strategists are hoping for a break in the socio-economic "climate" and praying this storm too will pass. Human resource professionals, executives, and managers alike wrongly believe they are the isolated targets of some insidious plot to abscond with their workers or else are just magnets for under-skilled workers with poor work ethics. And not unlike the Andrea Gail which was sucked under by the colossal waves even two days before the full force of the storm hit, their businesses too will sink with this short-sighted, wait-and-see attitude.

All workforce trends indicate future employee shortages will not blow over for decades. Many solutions such as retaining older workers longer are flawed. Since health care and retirement costs explode for workers over age 55, how will businesses afford to insure these workers....and without health care and retirement benefits, why will they work? Even worse the full force of the storm won't hit until the end of this decade.

The Perfect Labor Storm has no industry or geographic boundaries. From plumbers to dental hygienists to teachers to border patrol to radiologists, virtually every industry at nearly every skill and position level is affected by shortages of workers with the right skills and attitudes to do all the jobs.

Is this starting to get you attention?  It should!  Besides Dr Wolfe's book, check out the other parts of this blog to get a better understanding of why this is an issue, and most importantly, what you can do about it.

Putting "old Charley" out to Pasture

Recently, I witnessed the retirement of a fellow, who I'll call "old Chariey" who after many decades as a player in a large construction firm, stepped down, in order to "pursue other interests"

A veteran of the business, he had built up a stunning legacy of successfully completed projects, had served on dozens of committees and industry boards, was well known in the construction market, and when he walked out the door, took much of this knowledge with him.

We live in interesting times, indeed.

There is a general recognition that many industries, including construction, can benefit from the extensive skills of existing older workers.  And trend data indicates more older workers want to remain on the job longer.  Unfortunately, they often are forced to decide between their social security benefits and a paycheck.

Older workers possessing a broad array of building, supervision and management skills are often discouraged from working past retirement because they can lose some of their social security income if they earn more than the limits.

In calendar year 2005, for example, until recipients turn 65 (currently the normal retirement age) they can earn up to $31,800 without penalty; seniors earning more than that amount lose $1 of benefits for every $3 of earnings above the limit. There is no limit once past 65 years old.

Beneficiaries under the age of 65 are penalized by a reduction in benefits of $1 for every $2 of earnings above $12,000 in 2005.

Smart firms are starting to realize that they need to make better use of older workers talent, relationships and experiences.  These are people proud of their accomplishments, who want to contribute and share in a meaningful way, and it puts organizational leadership into the position of "thinking outside the box" to figure out how to leverage these assets in a meaningful "win-win" way.

Removing the social security earnings test would encourage more skilled workers to remain in the building trades - where their knowledge, connections and experience are still needed, and valued.

Myths about Gen X in the Workforce - Younger generations have no work ethic

The Reality:

Younger generations have a self-centered work ethic. This is not necessarily the negative that it may seem at first. Millenials are dedicated to completing their task well. They have not been raised in a way that demands them to look around and see what should be done next. Instead they ask "what is my job" and go about figuring the best, fastest way to complete that task. Then they consider themselves done. This is a key differentiator between your employees and yourself.

The younger they are, the more your employees view their jobs as "something to do between the weekends." For most, early employment has nothing to do with a career path; it is a way to earn money to have fun in their free time. And that is okay.

When you understand what motivates your employees you are better able to set mutual expectations for success. Instead of being frustrated that your youngest employees are not interested in climbing your corporate ladder, embrace their true motivation—reliable spending money—and use it to your advantage. When you tell an employee, "I understand this is not your lifelong career, but to earn the paycheck every week, here is what I expect…" they are much more likely to respond than if you try to motivate with promises of promotions and titles down the road.

Understanding that being at the job isn't as important to Millenials as completing the assigned task also opens up new opportunities for motivation and reward. Younger employees are very likely to respond to offers of paid time off.

A leading retail organization has recognized this new way of thinking with its "Working Hard Card." When managers witness an employee rising to a challenge, exceeding expectations or otherwise giving 110 percent, they can hand the employee a "Working Hard Card" on the spot. Each card is worth a set amount of paid time off to be used at the employee's discretion. It is a simple strategy that rewards employees in the currency they value most—their time.

Thanks to Cam Marsten for research cited in this article

Construction Industry Needs 185,000 People Per Year Over Next Decade

The construction industry will need an average of 185,000 new workers annually for the next 10 years to meet the nearly equal growth and replacement needs, according to a labor supply outlook released in January 2007 by the Construction Labor Research Council (CLRC), a private research group in Washington, DC, that is underwritten by contractor associations. 

The CLRC found that industry growth will require an average annual increase in construction employment of about 90,000, or 1.6 percent, over the next 10 years, which is about half the actual employment growth rate in construction for 1992-2002.

The average annual increase in the overall workforce for the next 10 years will be 1.1 percent, according to CLRC, the slowest rate of growth since the 1960s.

An additional 95,000 workers annually will be needed to replace current industry workers who are expected to retire during the next 10 years.

Factors accelerating this trend in construction are

• the higher average age of workers in the industry and
• a decline in the portion of the labor force in their prime working years of age 25 to 44.

“This country is in a period in which the labor markets are most impacted by the growing number of workers in their final working years, rather than the stable number of potential new entrants.

The outflow from the age pipeline is the dominant characteristic, not the inflow. The potential will continue for tight competition for new labor force entrants, primarily due to demographic factors,” the research group said. CLRC stressed the importance of “communicating construction's opportunities to all potential qualified entrants” in the new environment created by this “societal shift.”

Because the working life of construction field labor is shorter than most occupations, CLRC said that demographic trends “are impacting whether this trend of relatively early retirements in construction will continue is less certain that in the past, the research group found.

Factors that may reverse it include

• the physical ability to work later in life,
• the financial need to work longer, and
• the increase in age for the receipt of full Social Security benefits.

The group also noted a shift in construction from defined benefit to defined contribution pension plans.

The greatest demand in the next 10 years by craft will be for

• electricians, with an average of 22,400 annual new entrants needed,
• carpenters (22,000 needed), and
• laborers (20,100 needed).

“An actual shortage of bodies is highly unlikely,” CLRC said of the future workforce. As has been typical in construction, there often is “a mismatch between skills available and skills required.”

Large Influx of Hispanic Workers

A key to meeting heavy demands for new workers in construction during the past 10 years has been a large influx of Hispanic workers, when employment of Hispanics more than doubled to nearly a quarter of all industry workers. With Hispanic employment projected to increase relatively rapidly, their impact in construction is likely to increase.

Immigration is an unknown that could significantly impact the future supply of labor, according to CLRC, finding that a relationship between the influx of Hispanics on construction job sites and immigration is very likely.

Labor demand in construction can be moderated by the use of more highly skilled workers and by increases in productivity. For the period 1992-2002, CLRC said that construction employment increased at a greater rate than output.

Forecast Based on Training Data Inconclusive

Training is a significant determining factor in the future availability of skilled workers in construction, the research group said. An estimated 225,000 persons are enrolled in federally registered, multi- year, apprentice programs but the quality of federal data on completions was found to be “questionable” by CLRC.

This and the lack of reliable national data on the number of persons in vocational programs makes "the adequacy of industry training efforts impossible to determine," the research group said.

Relatively good apprentice data from California “provides an interesting look at the characteristics of today's apprentices,” according to CLRC.

More than half of apprentices in the state are minorities and whites slightly outnumber Hispanics. The largest construction apprentice program in the state is 70 percent minority.

The CLRC based its survey on data from the Bureau of Labor Statistics and the Census Bureau.

To Have A Good Workforce, You Need To Have Good Leadership Skills

You'd be surprised at how much good talent flees from bad bosses each year.  Did you ever wonder if there is a "scale" (other than gut feel) to determine just how good - or bad, a boss is? 

in order, if you are looking at retaining top talent, and seeking to retain the talent you have, in addition to running the business or department responsibly, you need to be a boss that employees are thankful for

John McKee (Founder and President of BusinessSuccessCoach.net, is the author of "Career Wisdom: 101 Proven Strategies to Ensure Workplace Success") offers this quick quiz to help you find out if your management style is helping or hurting employee perceptions:

Simply answer yes or no to each item below. (scoring provided at end)

QUESTIONS
1. All employees generally dislike work.
2. The best motivator for your team is money; it's what brings them back every day.
3. Keeping emotions out of the management process has served the operation well.
4. Your staff prefers to work as a team so that individual accountability is lessened.
5. As much as I would like to, I just don’t have the time to spend talking in-person to my subordinates.
6. I encourage feedback from a suggestion box or other anonymous method.
7. I live for the weekends (this job is a paycheck to support my "real" life).
8. I don't believe outsourcing can happen to my company.
9. Regular team meetings are not justifiable as they take too much time, which lessens productivity.
10. My current management position isn't very influential, but when I move up the ladder a bit I can make a "real" contribution to the company.

SCORE CARD:
Give yourself 1 point for every time you said "No:"

10 = Excellent!! You'll be running the show in no time!
9 = Brilliant. You obviously see your employees as an asset.
8 = Solid. You have the right attitude, and the team will see that.
7 = Well done. You know people and their needs.
6 = Good. You recognize the power of your role.
5 = Fair. May be time to rethink your management strategy.
4 = It's definitely time for an attitude adjustment.
3 = Change or die (metaphorically). Things aren't good, but it's not too late to make impactful changes.
2 = Do something significant that will be viewed in a positive light or your employees will leave.
1 = It's time to consider a new job where you do not manage people.
0 = Ever consider a job as a bounty hunter?

Factors Shaping Our Future Workforce - Part 1 - Impact of an Aging Population

Aging of the population is currently the single most important trend affecting the workforce in the USA.

Personal lifestyle changes and medical advances are keeping people viable and active longer.

Additionally, financial pressure and personal desire are keeping them working beyond traditional retirement age.  This is evidenced by the projection that by 2025, workers aged 55 and older will be more than 20% of the work force in the USA

The concept of "old" and "senior" are also changing.  By 2050, individuals aged 75 – 78 will be considered to be "middle age."  Mortality tables are being changed to reflect this: maximum life expectancy is increasing from 99 (tables created in 1980) to 120.5 years (new tables published in 2003)

Finally, we are and will continue to experience a lack of younger replacement workers due to a "baby bust" which started with Generation X

One of the most anticipated workplace trends of the 21st Century is the huge retirement wave that will hit most industrialized countries, including the United States, in the next few years. But surveys consistently report that most companies are unprepared to respond to the seismic shifts that are expected to appear in the workforce.

What implications does this have?

Searching for the Silver Bullet: Leading Edge Solutions for Leveraging an Aging Workforce, the latest study from the MetLife Mature Market Institute, which was developed in collaboration with David DeLong & Associates, explores what proactive organizations are doing to creatively meet the challenges posed by an aging workforce.

The study includes in-depth case studies about four companies that have successfully implemented programs to address the changing workforce demographics: Boston Scientific, First Horizon Corporation, The Aerospace Corporation and Weyerhaeuser.

Drawing on the experiences of employers that have put innovative initiatives in place to address the changing demographics, the study provides insights for HR managers on such topics as: implementing effective flexible work arrangements, helping older workers successfully transfer knowledge and devising creative solutions for rehiring retirees.

The U.S. Bureau of Labor Statistics indicates that between 2004 and 2014 the growth in the percentage of older workers will far outpace that of younger workers.

In that period, the percentage of individuals in the workforce ages 55-64 is expected to grow 42%, compared to a 5% increase in workers age 45-54 and an 8% decline in workers age 35-44. At the same time, the percentage of workers 65+ is expected to grow 74%.

“As the wave of baby boomers approach retirement, companies are searching for a silver bullet – a one size fits all approach for addressing the needs of an aging workforce,” said Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute. “However, what we learned from this new study is that there is no panacea for addressing the needs of a mature workforce.

What’s needed, instead, is a portfolio of strategies and solutions that balance the need to retain older workers while also transferring knowledge to younger workers, so that business performance can be sustained.”

“By learning from others and putting practices in place now, employers will be better able to navigate the dramatic changes coming in the workforce,” added Timmermann. “Organizations that haven’t prepared properly will have fewer options to minimize the impact of retiring baby boomers in order to sustain business performance.”

Valuable lessons learned from the study include:

• The need to think of phased retirement or flexible work options as a program, not a policy;
• How to create effective knowledge sharing relationships between older mentors and younger workers;
• How company-sponsored benefits and retirement planning workshops that focus on the economic consequences of leaving the workforce will encourage some employees to remain in the workforce past age 65;
• The need to make knowledge transfer an explicit part of any job when rehiring a retiree; and
• Why companies must stop searching for the “silver bullet” and recognize that there is no quick fix to these workforce challenges. The solution is a portfolio of integrated programs that will accommodate the changing labor market.

The study also provides specific tips to help employers:

1. Create and leverage a network of former employees;
2. Rehire retirees indirectly on a project basis when pension restrictions prevent direct re-employment;
3. Hire retirees with special expertise to innovate on critical projects; and
4. Tap the expanding pool of older people seeking employment.

“When it comes to solving the problems of an aging workforce, the glass is both half empty and half full,” said Dr. David DeLong, president of David DeLong & Associates, Inc. “Organizations can focus on the barriers or the opportunities. Most executives today recognize that their workforce is going to change dramatically in the next decade. They can maximize the contributions of employees and the assets they bring to the workplace.”

The MetLife Aging Workforce study was conducted during the first half of 2007. While this research focuses on four specific case studies, more than 75 interviews were conducted with managers in 28 organizations identified as leading edge in dealing with the changing workforce. To enhance the findings, more than a dozen experts on aging workforce issues were also interviewed.

Shouldn't that Christmas Feeling Last the Entire Year?

MERRY CHRISTMAS TO ALL MY LOYAL READERS!

PEACE TO YOU AT THIS SPECIAL TIME OF YEAR, and throughout the year

Wouldn't it be nice if the feelings of appreciation that are expressed between friends and colleagues continued throughout the year?

That is the genesis of the question that our friends over at AZCentral.com raises in their recent article entitled "Show worker appreciation every day"

This timely article discusses the benefits of "showing the love" to the people that are important to us - every day.

Because isn't it a good feeling to know you're appreciated?

A Perfect Hiring Storm: Scarce talent and Bad Press

Over at the Offshore Recruitment Outsourcing blog I always find perspecfives of value.  In early December, they published a great piece entitled A Perfect Hiring Storm: Scarce talent and Bad Press

In this article, they discuss another recent article appearing on Careermag.com contributed by Debbie Benami-Rahm, whose research I have found to be top shelf.

One of the key elements of this discussion is the following:

The way your organization handles the interview and hiring process either brings you the talent you want or scares your talent away.

Couldn't agree more.  It's increasingly a binary choice.  Many organizations with whom I have consulted over the years have not changed their tactics and methods, despite the fact that entire workforce "value proposition" has changed.  Further, many are completely clueless, and still do the same thing over and over and expect a different outcome.

A few years back, I also put some specific metrics on the true cost of employee attrition when I wrote "The Death of Employee Loyalty"

The situation is changing, and the companies that refuse to change will be relegated with higher costs, lower customer satisfaction and lower profits until they come to the realization that the workforce recruitment and retention process IS their business.

The Organizations That Continue To Win The “War For Talent” Will Be Based On Many Factors…

The demographics of the global workforce aren’t going to stand still while businesses try to catch up.

This makes having a transparent, consistent and strong employer "brand" essential, because it allows employers to align their talent acquisition and retention strategies to their corporate values. It also allows companies to project into the market a clear image of themselves, which a potential employee can buy-in to.

Whether its encouraging the aging workforce to remain motivated and continue working, whether its making the differentiation between themselves and the competition clearer to the smaller pool of Human Capital that do have the skills and abilities needed, or whether its continuing to drive a volume of employees into specific market sectors - strong recruitment campaigns, imaginative retention strategies, employee engagement initiatives, flexible benefits and work/life balance can be key ingredients in attracting and retaining talent now and into the future.

We All Want To Work for A Company That Supports Us, Don't We?

I wanted to share this with you my readers.  I received this message from a close friend of ours, who also like myself is a vet.

My cousin sent this to me and I thought you all would like to know about it.  Happy holiday shopping!
Shannon

I know I needed this reminder since Sears isn't always my first choice. Amazing when you think of how long the war has lasted and they haven't withdrawn from their commitment. Could we each buy at least one thing at Sears this year? How does Sears treat its employees who are called up for military duty? By law, they are required to hold their jobs open and available, but nothing more. Usually, people take a big pay cut and lose benefits as a result of being called up.

Sears is voluntarily paying the difference in salaries and maintaining all benefits, including medical insurance and bonus programs, for all called up reservist employees for up to two years. I submit that Sears is an exemplary corporate citizen and should be recognized for its contribution.

I suggest we all shop at Sears, and be sure to find a manager to tell them why we are there so the company gets the positive reinforcement it well deserves. Pass it on.

Decided to check this before I sent it forward. So I sent the following e-mail to the Sears Customer Service Department: I received this e-mail and I would like to know if it is true. If it is, th e Internet may have just become one very good source of advertisement for your company. I know I would go out of my way to buy products from Sears instead of another store for a like item, even if it's cheaper at that store.

This is their answer to my e-mail:
Dear Customer: Thank you for contacting Sears.The information is factual. We appreciate your positive feedback. Sears regards service to our country as one of greatest sacrifices our young men and women can make. We are happy to do our part to lessen the burden they bear at this time.
Bill Thorn
Sears Customer Care
webcenter@sears.com
1-800-349-4358

Please pass this on to all your friends. Sears needs to be recognized for this outstanding contribution and we need to show them as Americans, we do appreciate what they are doing for our military!!!

It's Verified ! By Snopes.com at: http://www.snopes.com/politics/military/sears.asp (shows the entire article)
http://www.truthorfiction.com/rumors/s/sears.htm

Not bad for a McJob

One high profile example of a corporation tackling their employer brand head-on is McDonalds, who rely on a steady supply of Human Capital to give their business and their brand life.

After the term 'McJob' appeared in the Oxford English Dictionary, being described as having low pay and poor prospects, McDonalds responded in 2006 with the challenging 'Not bad for a McJob' campaign.

The McDonalds fight-back campaign featured posters including examples of health policies, flexible working hours and prospects for promotion, with the objective of improving their public image as an employer of choice and ensuring their employees felt 'McRespected' and 'McValued'.

McDonalds represents an extreme example, but other companies across the world dedicate much time and resource to winning coveted places in top employer listings, such as the Sunday Times Top 100 Companies to Work For in the UK and the 100 Best Employers to work for in Canada. And, according to Sheffield University, its a case of 'Who Cares Wins' in todays job market.

Performance Appraisal and Feedback - What are Today's Management Expectations?

Performance Appraisal and Feedback is an important part of the talent management process.  However, the "equation" is different today than it has been in the past.

I'd like to share with you some ideas on current thinking about:

• Supervisors’ Accountability For Employee Performance
• The Supervisor As Coach
• What Does The Company Need From The Employment Relationship?
• What Do Employees Really Want From The Employment Relationship?

The Supervisors’ Accountability For Employee Performance

Traditionally, management has meant performing the functions of:
Planning

• Define Goals for Future Performance
• Determine Tasks Needed to Meet Goals
• Determine Available Resources

Organizing

• Assign Identified Tasks
• Allocate Needed Resources

Leading

• Inspire Employees to Achieve Goals

Controlling

• Monitor Employee Activities to Assure Progress

Over time, this role has transformed to include an awareness of :

• Decentralized Decision Making
• Flexible, Skilled & Involved Workforce
• Increased Sensitivity in Work Relationships

The Supervisors’ Job Description has thus evolved as a Supervisor of the Work of Other Employees to include :

• Setting Objectives
• Hiring Employees
• Training Employees
• Assigning Tasks to Employees (Delegation)
• Measuring Performance of Employees
• Rewarding/Disciplining Employees

Accordingly, the Supervisor is accountable to the business to

• Meet Their Own Performance Objectives
• Maintain Accurate and Timely Records of Employee Performance Throughout the Appraisal Period
• Complete the Forms Used in Appraising Employees and Return Them to HR on time
• Maintain Their Knowledge and Understanding of the Performance Appraisal Process,, and
• Review Appraisals Together With Employees

In other words, from the Company's perspective, they are looking for the Performance Appraisal and Feedback process to help

• Maximize Employee Productivity
• Employees Focus on Organization’s Objectives
• Employees Take On Responsibility for Their Performance
• Management Understand How to Manage Performance Effectively
• Facilitate Coaching, Counseling and/or Discipline for Poor Performers
• Provide protection From Legal Liability
• Establish an Objective Basis for Development, Compensation and Rewards

The Supervisor As Coach

Management is so 20th Century!  This "old" view of things looks at Management as a often one-way process whereas coaching is two-way, with the coach and the employee constantly giving and receiving feedback.

Coaching then, instead of “Managing” or “Supervising” is a key concept for achieving top organizational performance.  Supervisors become coaches when they use feedback on a continuous basis to reinforce positive behavior or counsel employees to correct actions that do not further the organization’s goals.

What does Coaching involve?

• Being there for them
• Giving them what they really want
• Rewarding them with "ownership" of their part of the business

According to a study conducted by Mercer management Consulting for the Council of Communications Management, 75% of respondents in a study of employee communications indicated that internal communication has a positive influence on employee performance.

The supervisor is the critical link between top management and employees.  Keeping employee communications “up front” and honest helps to build employee morale, contribute to company loyalty, and increase productivity.   

What kinds of things are important for your employees to be aware of?

What Does The Company Need From The Employment Relationship?

Employee engagement is more important today than ever.  Business leaders need to encourage activities that make employees feel more participative in the business.   You also need to reward people who learn more about their jobs, new trends, solve problems, and are willing to make changes.  Employees who feel empowered are far less likely to become chronically absent or quit.

What Do Employees Really Want From The Employment Relationship?

According to a 2001 Randstad North American Employee Review study looking at how employees define success in the workplace, the following dimensions were most frequently cited:

• Being trusted to get the job done
• Opportunity to do the type of work i want
• Power to make decisions that affect their own work
• Finding a company where i want to work a long time
• Getting raises
• Having flexibility
• Many different job options & opportunities
• Getting promotions
• Getting praise & recognition
• Managing (leading) other people
• Gaining seniority

But it gets even more interesting.

• Mature workers (aged 61-75) workers view themselves as "contributors," while viewing their employers as a "benevolent master." Their greatest psychological need is "respect" and their overriding workplace characteristic is "dedication." Having power to make decisions that affect the whole organization is important to them.
• Baby Boomers (now aged 42-60) are "adaptable" and in need of "appreciation." They view employers as "partners" while striving to be "recognized employees.”
• Gen X'ers (new age 27-42) are "realists" in need of "security." The volatile nature of the new economy drives them to perceive employers as "terminators," while they view themselves as "employees with a future."
• And Gen Y (26 and younger) see themselves as "entrepreneurs" and their employers as "providers." They are in need of "attention" while remaining "cautiously optimistic" about the future.

But for all employees, the most important corporate value cited was TRUST…even more than money or title.  A well thought out Performance Review and Feedback system can be a unique experience that can help

• Make employees feel like members of the “Club”
• Facilitate their ideas, suggestions for problem-solving
• Challenge them with new tasks, assignments, projects
• Involve them in setting performance criteria
• Encourage self-evaluation of their performance
• Work together to set performance objectives

Why then, does the Performance Appraisal process often evoke discomfort versus a sense of discovery?  Perhaps that's because often the program is representative of

• Inadequately defined standards of performance
• Sketchy or ambiguous performance documentation
• Inadequate time allotment for the discussion
• Supervisor bias in judging performance
• Reliance on gut feelings; lack of objectivity
• Lack of timeliness of performance reviews
• Lack of employee involvement

So are they still relevant?  YOU BET !   

Your workforce wants to do the right thing, BUT

• They may not know the rules
• They may not have clear goals
• They may lack confidence
• They may have limited ability
• They may be poorly trained
• They may not have the right equipment
• They may have limited communication
• They may be distracted by personal problems

Today more than ever, a well conceived and properly executed program can be used

• To let employees know where they stand and to give them feedback
• As A basis for compensation and rewards
• As A basis for individual training and performance improvement
• As A basis for career planning
• As A basis for business planning
• To document HR decisions, placement,promotions and discipline

Is this your experience?  How about sharing your "success" stories as well as "horror" stories with our readers.

Do you Understand Older Workers Priorities & Work Life Balance Concerns?

Older workers are one of the keys to the "War for Talent", but many employers do not understand these workers.   There are many different types of workers in this age group, and each one requires a different key to unlocking their potential.

Older members of the workforce who have extensive experience and skill, also have a significantly different "point of view" when it comes to what is important to them.  Firms and organizations alike need to recognize these  personal priorities, which include the important "work-life balance" element

Consider the many varied "situations" you'll discover when you examine a "cross-section" of these workers in almost every business and organization:

1. Those that are stable and settled:
   (and may have no further career aspirations)
   
2. The workers who are motivated by reputation,
   (they're seeking status and have a need for achievement that is still growing)
3. Workers who feel vulnerability
   (may feel that their "value" is diminished through reduced capability or feel that their skills are no longer up to date)
4. Those who are more engaged or feel their work more is important than in past periods of intermittent or part-time working. 
   (many women re-entering the workforce with grown families fit into this category)
5. People who are more confident, and ready for new challenges
   (ready for anything new, or are ready to try self employment)
6. and workers who are anxious about being displaced by younger colleagues

As you can see, each of these "categories" of workers are looking at employment from quite different points of view.  Keep checking back, as I'll be expanding on some ideas that you'll find useful in reaching out to each.

A Halloween Treat for You from the Evil HR Lady

I'm a fan of the "Evil HR Lady", who publicly claims to be "an HR professional in a Fortune 500 Company. I've hired, fired, managed pay and analyzed the numbers. I've even tried to cooperate with Finance, but, well you can guess how that turned out."

She operates a great blog by the same name (Evil HR Lady) with a high volume of feedback that confirms that she is on the right track.

She recently published a great article called "The Coming Talent Shortage" that provided a response to the YouTube video about workforce demographic changes. 

Michael Moore (the lawyer, not the other Michael Moore) posted a link to this video about the upcoming labor shortage.

This article is a "MUST READ" for people concerned about where our future experienced talent will come from.  Enjoy and let me know what you think!

Hiring Foreign Nationals: A Visa Programs Primer

In many situations, you may not be able to find "local" talent to fill a skilled labor requirement.  Obviously, there are a number of "alternative sources" from which you can source these needed skillsets.  When considering bringing in foreign workers, you and your team need to be aware of the myriad requirements, laws and issues associated with bringing foreign workers on board.

The good folks over at BLR (Business & Legal Reports) have provided a great source of information to help keep you out of hot water.  Their HR Daily Advisor newsletter, which provides in-depth professional guidance to those in the talent business, published a recent article you will not want to miss.

Entitled, "Hiring Foreign Nationals: A Visa Programs Primer", this great article will provide you useful information, including perspectives on your talent acquisition policies and procedures when it comes to hiring foreigners.

Check out this information, it can keep you out of trouble.

Laborers Are Unskilled, Right?

A common misconception is that the "common laborer" you encounter falls into the "unskilled labor" category.  In discussions I have with others, I sometimes hear things like "well they're just laborers, anybody could do their job.  Wow!  DO these people need to get up-