What is a Strategic Plan?

This week I’m going to talk about what exactly a strategic plan is.

A strategic plan is a written statement about the future direction and goals of an organization or HR department based on an analysis of the organization’s current status, strategy, strengths, limitations, threats, and opportunities in the current and future business environment.  

An effective strategic plan helps the organization understand where it is now, where it would like to be in the future, and how it’s going to close the gap between its current reality and the desired future status in order to get to where it wants to be.

All good strategic plans support the organization’s vision, mission, and values as well as identify its strategic goals and needed resources.

Since I brought it up, let’s take a minute to define vision, mission and values even though most readers probably already know but it never hurts to revisit the definitions.

An organization’s vision statement provides a clear perspective of what it wants to have happen in the future. It includes a description of its operations as well as a compelling explanation of how the organization will look and function once the strategic plan has been implemented.

The organization’s mission statement is a clear description of it’s overall purpose. It identifies the essential reasons the organization exists and the principal products and services it provides to the marketplace.

Finally, the values of an organization represent the key core priorities of it’s culture. It’s what drives the organization’s priorities and how employees honestly behave.  An organization’s values typically remain the same over time.

A complete business strategy is made up of three parts – an operations strategy, a financial strategy, and most importantly IMO a people strategy.  I’m focusing on the people strategy, or HR Strategic Plan, as it provides the foundation of all the other strategies with the ability to identify, build, and reinforce the organization’s capabilities.  

The justifications for creating an HR Strategic Plan are that it provides a solid framework for value-added action, helps establish priorities, allows for the all important measurement of results, and creates a way for reallocating resources from the organization’s low producing activities to its high producing activities.

In addition, it helps increase and improve HR’s credibility within the organization by showing its positive impact on the organization’s bottom line. Which is always a good thing especially since, as I recently mentioned in a previous post, HR is still thought by many business leaders as pretty much an administrative function that operates separately from the rest of the other functions in the organization

In order for HR to take on a strategic role and be a strong strategic business partner, it must be represented in the leadership of an organization and be involved in defining the organizational issues before the strategic decision are made.  HR must be involved in turning those decisions into a set of organizational actions.  

According to my favorite HR thought leader, Dave Ulrich, there are several things an HR professional must do in order to be an effective Strategic HR Business Partner:

  • Understand and communicate that improvements are typically very difficult and complex and will take time to accomplish so watch out for quick fixes as they are typically very seductive but rarely work.
  • Align the HR Strategic Plan with the Business Strategic Plan which will ensure HR being seen as adding value to the organization.
  • Keep the strategic plan top of mind instead of shelving it and forgetting it.  The plan must be executed and managed in order to be effective.
  • Create a Capabilities Focus within the organization.

I want to focus a little more on that last bullet, Capabilities Focus, since the first three bullets are fairly self explanatory.

Capabilities are an organization’s ability to effectively manage its resources in order to gain a competitive advantage in the marketplace. They are anything the organization does well that improves business and creates a competitive advantage in the organization’s marketplace.  

Strategic HR Professionals are able to effectively identify and improve an organization’s capabilities that will help execute the organization’s strategy and leverage new products and services.

Some examples of organizational capabilities include knowledge, innovative designs, adaptability, cost competitiveness, and strong leadership.

Defining deliverables and showing how they can be measured and what actions need to be taken is critical in the strategic planning process. The Strategic HR Professional must focus on the deliverables which are, in other words, value added results.

The HR strategic plan is developed from looking, listening, questioning, clarifying and knowing what needs to be done.

The plan must include ways that HR can help the organization add value to its key stakeholders (employees, customers, and investors), improve organizational capabilities, improve employee competence, fulfill regulatory compliance, determine processes and activities that can be retained or outsourced, and align HR programs with organizational goals.

My next post in this series will discuss how the strategic HR Professional must be able to speak the language of business and define a few important strategic business terms that will need to be understood. Then after that, I’ll get into the steps of how to actually develop an HR Strategic Plan.

Why You Need to Create a Strategic Plan for Your HR Function

So why have an HR Strategic Plan?

In today’s highly competitive business environment, success is often determined by how well an organization and Human Resources can manage change.  Organizations have to constantly monitor their place in the external business environment as well as evaluate and improve their organizational capabilities, or intangible assets, in order to effectively compete in the marketplace.

The strategic planning process is the most effective way for organizations to identify and address all of the various external and internal forces that have an impact their business. This process moves the organization from their current place to their desired future.  And more importantly, brings value to all of the stakeholders of the organization.  

But what value is the strategic plan without the people within the organization being ready, willing, and able to execute the plan? None. The organization’s employees must understand and be fully engaged in and willing to follow the strategic plan in order for it to be of any value to the organization.

This is where HR comes in.  

HR’s value lies in being able to build and maintain the organizational foundation and infrastructure to help drive the necessary changes that will accomplish the organization’s strategic goals.  

Regrettably, HR is still thought by many business leaders as pretty much an administrative function that operates separately from the rest of the other functions in the organization.  Sadly, this reinforces the opinion that HR isn’t that important to the success of the organization. HR is also not typically held accountable for business results, as the other functions are, and because of this, HR considerations are typically ignored and viewed as a cost center rather than a profit line contributor.

There are some leaders, however, who recognize that an organization’s human capital is a key strategic resource for increasing organizational capability and achieving a competitive advantage over competitors.  Being able to attract, retain, motivate, and develop the best employees in the organization’s industry are critical to its success in the marketplace.

The ability of an organization to execute it’s strategic plan rests solely on its effective utilization of its human capital.  

Smart business leaders are recognizing this and have turned to HR to help them positively impact their business results.

In order for HR to have a positive impact on an organization’s business results, we must focus on and engage in both the long-term strategic and the short-term administrative and operational planning.

There are three roles that HR has in an organization that need defining before we go any further:

First is the administrative role. This is the traditional role most people think about HR. It’s things like regulatory compliance, policy & procedure interpretation, record keeping, HRIS management, benefits administration, onboarding & offboarding activities, etc.

Second is the operational role. These are the HR activities that relate to the day to day operations of the organization.  These are the tactical activities such as recruiting, filling job reqs, handling employee relations issues, employee communication, compensation program management, etc.

These two HR roles aren’t the high-level exciting things many of us in the upper levels of HR like doing any more but they are absolutely essential to the organization and the reputation of the HR function. HR must be 100% technically competent in the administrative and operational roles and execute their HR services flawlessly.  

HR’s reputation is built on the employee’s perceptions of competence and has to be flawless in these two roles in order for to build a solid foundation of building on the higher level strategic role.

Third is the strategic role. This is the role where HR can really make a difference.  It requires HR participating in the strategic planning process, improving the organization’s performance, ensuring effective leadership, redesigning organizational processes, and ensuring financial accountability for HR results.  

Business literacy is required in order for HR to be effective in the strategic role. HR must know and fully understand who the organization’s stakeholders are as well as the organization’s markets, products, customers, and competitors.  Fully understanding financial terminology, speaking the language of business, and knowing how to read and interpret the organization’s financial statements – income statement, balance sheet, cash flow statement, etc.- are absolutely necessary.

I believe that the most effective strategic HR professionals are those who have real-life business experience outside of HR. (Self-promotion alert) I’m, of course, biased having successfully led and operated, with full P&L accountability, an award winning full line Macys department store for 13 years.

By having a solid business background and experience, HR can develop effective value-added strategies of staffing, performance management, total rewards, employee relations, and employee development. This puts the organization’s employees in the best possible position to execute it’s strategic plan and contribute to its financial success in the marketplace.

Strategic HR is my favorite topic and the role I enjoy most as an HR professional. I’ve touched on it a bit in my Metrics and Analytics series but I’ve been focusing on writing/podcasting mostly on the operational side of HR.  I had to build a foundation first, you know!

Now I can start exploring more strategic HR topics here at HHHR!  

Next week, I’m going to continue with strategic HR and explain exactly what a strategic plan is.  

Effectively Dealing with Sexual Harassment in the Workplace – Do the Blocking and Tackling

Since sexual harassment is currently such a big issue these days, I’m going to talk about the tools I’ve effectively developed and used over the years.  I’m writing this in November of 2017 and you can’t watch TV, listen to the radio, or read anything online without learning about some high profile politician, media personality, or famous celebrity being accused of some form of sexual harassment.

What frustrates me is how it has become such a “popular” thing to expose all of a sudden.  If we are being honest with ourselves, we all already knew this kind of behavior has been going on for years but nobody ever did anything about it.  At the highest level possible, we had a two term President in the 90’s who we all knew engaged in it.  And we now have a current President who was recorded bragging about it before winning the election. We also all knew about the infamous “casting couch” in Hollywood which has been around since the 1920s and probably even earlier. 

I’m frustrated that our society tolerated it for so long.

It’s about time that women are finally feeling comfortable about coming forward with their stories of harassment. There is no place for sexual harassment in our workplace and private lives. Never has been and never will be.

While all of the stories, so far, have been from women, and I fully recognize that most of the victims are going to be women,  I’m waiting to hear some men start coming forward telling their stories of how they were harassed – it happens to all genders, in every industry, in every socioeconomic status, etc.

In fact, two of my three biggest sexual harassment investigations were with women as the instigators.  So I know it’s only a matter of time before we hear about a woman politician, media personality, or celebrity harassing a subordinate. Let’s not forget how many female teachers, a female dominated profession, are being caught having sex with their male underage students. So it cuts both ways. Both men and women can be deviant creeps.

So how do we stop sexual harassment?  I’ve been reading a lot of articles about how the old traditional ways of dealing with it – an up-to-date policy, training, and investigate quickly and fairly to all complaints – no longer work.  That we must do something different to put an end to it, things like promoting more women and  implementing predictive analytics!

There is no easy solution and, sadly, no matter what we do, sexual harassment will never end.  It is, unfortunately, part of human nature.  Harassment, sexual and other types, have been around since the beginning of time and will be around until the end of time.

The only way to deal with it from an HR standpoint, in my opinion and experience, is to effectively and consistently do the basic blocking and tackling of having a strong and updated policy, conduct training annually and during onboarding, and conducting quick and fair investigations.  

I’ve had a lot of experience handling sexual harassment complaints and investigations.  And I can say that by effectively executing the basics I listed above is the best way of slowing it down and keeping it under control.  It creates a culture that clearly demonstrates that sexual harassment is not tolerated in the workplace and will be quickly addressed.

I have three steps of a Harassment Policy process that I find work best.

First, during onboarding,while reviewing the employee handbook, I stress that there is no tolerance of sexual or any other type of harassment  in our workplace.

When setting up the employee handbook, I make sure the policy is the first one listed so as to emphasize it’s importance. I also make sure I review it, along with our legal council and/or an employment lawyer, at least once every two years (I would do it right now regardless of when it was done earlier because of the current high profile cases in the media) to ensure it’s up to date. It’s also good to make sure the policy is written in plain english, not in legal handbookese that nobody understands.

Make sure each employee’s signee Acknowledgement of Receipt is in their file so there’s evidence that you reviewed the important policies with them.

Second, later in the onboarding schedule, I have a Harassment Training  session.  I will conduct either a live presentation or show them a video depending on the size of the onboarding class. I have two compliance trainings during onboarding, Harassment Prevention and Drug and Alcohol Prevention, and this again emphasizes the importance of our policy by putting such a primary focus on it during their onboarding.

I also have two mandatory annual all-hands Harassment Prevention training sessions, one for the general employee population and one for the supervisors and managers. I require managers and supervisors to attend the general employee population session so they are seen by all employees to be part of and fully supportive of the process. This also emphasizes to the managers the importance of the policy.

Each of these training sessions has a quiz that I require each employee to take and turn in after we review the answers. This gives you a document for their file that they’ve attended the training session and interacted by taking the quiz. Also make sure the employees sign an attendance sheet and file those sheets with your training materials.

Third and finally, when a complaint is received, I immediately jump into action and start an investigation. I once drove five hours from my office in Denver, CO to a remote location in central Wyoming the same day I received a complaint and immediately started the investigation. I stayed there for two days to interview people, have discussions with management, decide on proper corrective action, communicate our conclusion to affected employees, and conclude the investigation.

I then write up a final report documenting the process of my investigation, who I spoke to and what was said, my conversations with management, and the results of the final decision and corrective action taken.  This document goes into the accused’s file and I like to have a copy in a separate investigation file with other investigations I conducted.  

As you can see, I will always drop what I’m doing and immediately start an investigation when I get a harassment complaint because harassment is the most toxic workplace situation. It creates all sorts of serious legal, morale, productivity, ethical, safety, and many other similar problems. Problems that I can head off if I address the complaint immediately.

While it’s important to keep the investigation as confidential as possible while on site, we all know that the grapevine will communicate why you’re there and what you are doing.  Employees will see the corrective action and understand why.

This final step of a quick and fair investigation followed by the appropriate corrective action, if warranted, sends the strongest message possible to employees that harassment is not tolerated and will be dealt with swiftly. And it only really takes one or two instances to send a clear message and make a positive impact on the culture.

Now, remember, these steps will not completely eliminate harassment but they will go a long way in significantly reducing it to the point there will only be a few cases.  

But you have to do the day in and day out blocking and tackling consistently in order to minimize harassment and keep your company culture one that makes it clear it’s not tolerated.

The Problem with Performance Appraisals

Oh yeah, another article about it...

Nearly everybody hates performance appraisals. It’s a topic that has been written about and discussed ad nauseum by just about everyone in the industry.  It seems like everybody is trying to come up with a fancy and shiny new system.

I’ve written about how to do them and how to make them better several times.

And this week I’m going to add one more article into the mix based on a podcast I listened to the other day.

The podcast is Manager Tools (Mark and Mike) and this week’s episode is titled “Don’t Get Rid of Your Performance Review”.  I was fascinated by their take and ended up really studying what they had to say by listening to it several times and studying the show notes (available only to licensees).

Now they are big believers of performance appraisals, but only if done effectively, of course. They think organizations getting rid of them is ridiculous.  And I agree.  

They, like most, think that the system is broken and place a large part of the blame on HR, the owners/managers of the system, because we “regularly talk them (the appraisals) down” in our organizations. I certainly agree with this statement as I hear it at every SHRM meeting I attend.

HR also likes to change the form every couple of years so that they can show a big project initiative accomplished for their annual appraisal. But, unfortunately, changing the system seriously damages the ability for the organization to collect the all important trend data we need to to make important personnel and succession decisions.  

They give a nice bit of history about performance appraisals. Some version of performance appraisals have been around for thousands of years, according to my research, but Corporate America started borrowing heavily from the Army’s system shortly after WWII, according to Mark. The rapid growth of these organizations necessitated a system to help them grow so they looked to the US Army as the model.

In the Army, appraisals were never intended to be seen by the person being evaluated. They were only seen by the evaluator and his superiors. The purpose of the appraisal was for succession planning should the ranking officer be killed in battle. The Army, of course, would need to know who would be the next up to take command, a pretty important thing, right?

There was, frankly, no need for the appraisals to be shared because the Army had the system in place where soldiers received ongoing and constant feedback about their performance and conduct. There was never a question and soldiers always knew where they stood.  

Organizations who adopted the system soon realized, however, that their managers did a very poor job of giving their direct reports regular ongoing feedback so the “obvious” answer was to start sharing the performance appraisal with them. It was felt that they should at least get some sort of feedback at least once a year.

Rather than organizations training and following up with their managers to provide ongoing regular feedback and building relationships with their direct reports, they took the easy path of just requiring the annual performance appraisal.

Now while Mark and Mike put most of the blame of why the system is broken onto HR and only a little on managers, I would say it’s evenly split between the two. I’ve been in both shoes and, honestly, HR can only do so much especially when managers don’t fully support the system. (Maybe because HR has screwed it up so bad? I don’t know)

I would love to have the managers I support give ongoing regular feedback to our direct reports and the performance appraisal simply be an end-of-year summary that won’t be a surprise.

It is my experience that most managers don’t want to do the difficult and time consuming work of building effective professional relationships with their direct reports in order to establish trust and credibility. I wrote about a similar topic with HR having to build a foundation to establish trust and credibility.  Managers need to do this with their direct reports.

Remember the purpose of the performance appraisal is Talent Management and Succession Planning.

While it’s now very trendy these days for HR departments and companies to dump the performance appraisal, ironically, they are replacing them with regular ongoing feedback. They are, hopefully, training their managers to effectively deliver this feedback and building relationships  in addition to monitoring it. This goes back full circle to the Army officers who were trained to give regular ongoing feedback to their soldiers.

The only way to fix performance appraisals is to train your managers to build effective relationships and give effective regular and ongoing feedback to their direct reports. Senior leadership and HR must also monitor and measure that it is happening ( remember – what gets measured gets done). Then conduct the annual performance appraisal as an additional measurement of your talent management and succession planning strategy.   

This was part one of the Manager Tools podcast series on Performance Reviews and after reading the show notes there is a lot of other good stuff I will review and comment on in the coming weeks.

Steps to Help Your Employees Understand the Details of Their Benefits

Tell them real-life stories

This week I’m going to cover a small but very important tactical element of HR. Although it’s a small thing, it leads to a much larger strategic element of building a high-performing workplace culture

I’m a strong believer in delivering an amazing onboarding experience for employees. I built one at one employer from the ground up and I had the pleasure of  inheriting an outstanding one at another employer.

Today’s post is going to deal with one portion of the onboarding process – the Benefits discussion.  This is often the most confusing and boring part because HR typically comes in and goes through the insurance benefits using HR and insurance industry jargon. As a result, most employees don’t understand most of what is being said and just tune out and start looking at their phones. This is unfortunate because an organization’s benefits are an important and  critical piece of the total rewards program and employees need to fully be comfortable with understanding them.

I think employees really need to understand all of their benefits and there should be the appropriate amount of time put into the onboarding schedule to make sure employees really do fully understand them. We owe our employees the extra effort to help them understand their benefits rather than just handing them a packet of papers or just helping them logon to the onboarding site and leaving them with an hour to review and enroll.  

So here’s how I do it.

In my schedule, the benefits discussion occurs immediately after all the required hiring paperwork is completed. This way, they are still pretty fresh and enthusiastic.  I always go into the HR portion which includes the insurance and benefit portion of onboarding telling the new hires that this portion is going to be the most exciting and interesting part of the entire  process. I’m obviously being silly and I purposely exaggerate this because they and everybody else has experienced the opposite so it grabs their attention.

I then like to tell real-life stories about how the different benefits work. These are my stories based on my experiences and I’m certain you have your own story bank you can go to when communicating benefit details to your employee team.

For instance as I’m talking about the medical benefits, most people understand what the deductible means and how the co-pay plays into that but many don’t really understand what the Annual Max Out of Pocket means.

So I tell a real-life story about an employee (this was at a previous employer and whose identity I keep confidential) who had a heart attack while out camping with his family. He was life flighted to the hospital and had open heart surgery.  Well, when everything was said and done and the employee added up all the bills that came, the total was over $1,000,000. Fortunately for him and his family, the company health insurance plan had a maximum out of pocket of $3500.  What does this mean? Simple. The employee only had to pay $3500 total for the episode.. And this all happened in the summer so he had to continue treatment, cardiac rehab, and many other doctor appointments and because he reached his MOP, he paid nothing for the rest of the year. Every time I tell this story, I see clear understanding in the new hires’ eyes because this story always makes it obvious what the max out of pocket is.

Another story I like to tell is when describing the Employee Assistance Program (EAP). This benefit is very often forgotten and rarely used. I believe strongly in it as I’ve used it myself and tell the story of a couple employees I helped through substance abuse problems (again at a previous employer keeping names confidential).  

I had employees come to me asking for help with their substance abuse. They feared they would lose their job but my company believes in helping employees who ask for help. So I gave them all the EAP info and explained to them how the EAP works and strongly encouraged them to call and get the counseling help they need. I also explained that in addition to the free counseling sessions, our medical insurance has programs to help them clean up. They took advantage of these programs, cleaned themselves up, and remained good productive employees.

I love telling this story.

The last story I’m going to share this week is about the Flexible Savings Account (FSA). I tell them I love this benefit because it’s like an interest free, tax free loan to pay for medical related expenses like co-pays and deductibles. I tell them I usually max out the benefit and contribute the full $2600 and at the end of the year, if I have some left over, I treat myself to some very nice eye glasses and/or prescription sunglasses.  I also go back to the story above about the maximum out of pocket and tell them the heart attack employee had about $1600 left in his FSA and applied that to the MOP amount of $3500 he owed. So he only had to come up with $1900 for the entire cost of the episode.

There are, of course, other stories I tell to help our new employees understand the more complicated details of their benefits but I may share those at another time.. I always get positive comments from the new hires who appreciate me taking the time to sit down with them and going through the benefits we offer and explaining, through real-life stories, how they work.

Not only does this help them personally in understanding their benefits package, it sends the strong message that the organization sincerely cares about them and their well-being.  It’s an important element in the strategy of building that all important high-performing culture that we all strive for.  

My HR Journey

How I ended up in HR

I was at a tech industry HR event in Boulder a few months ago and we were all asked to talk about our “HR Journey” – what was it that led us to choose HR as a career. Or what was it that led HR to choose us?

The exercise required that we had to get up in front of everybody and tell our story. We didn’t have much, if any, time to prepare as we didn’t even know we were going to do this exercise. The first “drafts” of our stories were a little rough but then we were allowed to get up again and tell our stories again, and this time they were more polished.

I enjoyed the exercise because it forced me to really think quickly of a story that led me to choose HR as a career. My mind was blank but it came to me as I was walking up to the front of the room to tell my story. Funny how the mind works.

So here’s my story…

I started my career right out of college working for a Pacific Northwest based retail department store called The Bon Marche’ (which is now part of Macy’s). I worked my way up the ladder until I reached my desired goal of being a Store Manager. I loved being a Store Manager and in my 13 years as one, I earned the Store/Store Manager of the Year award twice along with a record number of performance awards during my tenure.

I learned that I loved building consistent high-performing cultures filled with employees who loved doing what they did in a tough, low-paying work environment. In retail, HR is a very important and vital element. It was what I enjoyed the most and I was very good at it and thought I’d do it for the rest of my career.

But there was a particular incident that occurred that led me to seriously consider leaving and focusing on HR as my next career direction.

It was Sept or Oct and a young pregnant woman came in for an interview for the Holiday season. As a Store Manager I always enjoyed participating in the interviewing and hiring process. She interviewed well, I saw that she had potential, and I decided to hire her. I didn’t care that she was pregnant. I only cared that she was smart, enthusiastic, and cared for customers. She would be a great addition to the store team.

Years later, she reached out to me via Facebook and told me how much she appreciated me hiring her that day. I had changed the direction of her life. Nobody else in town would hire her because she was pregnant. To make matters worse, she was single and pregnant and her life was a mess. I had no idea at the time but my believing in her and hiring her gave her new hope.

My team at the store was just that, a team that cared about each other and helped each other. The team took her in and she became part of the store family. She was surrounded by people who cared and she responded by giving us everything she had and became fantastic sales associate.

I’m very proud of the teams I build and how they always cared for and loved each other. That is what I enjoyed most about my job. Building strong high performing cultures of people that loved (or at least liked) their work.  That is why I went into HR so I can help leadership build strong, high-performing teams.

Today, this woman owns her own retail business, has her life together, and is doing very well.  She is also is the proud mom of a beautiful daughter.

Bottom line, the main reason I moved into HR was to use my talent and skills to help organizations create positive, high-performing cultures where people really enjoy coming to work. We spend huge amounts of our time at work and I believe our workplaces should be happy and supportive places where we enjoy being every day.

The ability to create and provide a high-performing culture where people want to be, directly helps accomplish the importance of business goals in any organization. The overall company performance improves, productivity increases, and financial performance improves – all of which produces greater shareholder value.

I want to be able to be a positive influence on employees and, by extension, their families by creating a positive work culture where the employee is happy and feels like they are accomplishing meaningful work.

Frankly, it’s the right thing to do.  And I’m glad I’m able to do it.

Building an HR Foundation

Establish your credibility, competence, and trustworthiness

HHHR Photo

The most important thing an HR professional who’s moving into a new job or department can do is to build and establish a rock-solid foundation of credibility, competence, and trustworthiness. Today, I’m going to discuss how to do this.

There are two things an HR pro typically does when starting a new job at an organization or transferring to a new department.

  1. They come in with “guns a blazing” and immediately start changing the way everything is done and immediately start introducing HR initiatives. They focus on quickly making a big splash introducing HR initiatives and impressing senior leadership.
  2. They come in and take the time to get and know the employee’s, their team, processes, and culture. They focus on providing outstanding customer service to their client base and getting a good lay of the land and culture before making significant changes and introducing big HR initiatives.

Yes of course, sometimes you have to come in with “guns a blazing” and get things fixed quickly. The situation, and leadership, demands it because they need things to be fixed, and fixed yesterday. While it seems to make sense at first, it’s not. It will mostly cause significant chaos and business disruption. It certainly does not establish the credibility, competence, and trustworthiness for the new HR pro!

The best and most effective way for the HR pro to establish their credibility, competence, and trustworthiness in the eyes of their new company/department is to take the time to get to know and understand the team, processes, and culture before making any drastic changes. Build that important and critical foundation.

Remember, Human Resource pro, you are dealing with humans and, as such, you need to build a foundation of relationships first before you will be able to accomplish anything with any credibility and trust. Everybody in your organization is watching what you are doing and how you are doing it.

Start building a solid foundation so that you will be seen as a credible HR expert. Make sure there are minimal mistakes made with the basics like payroll, benefits, answers about polices, etc.

Here are the steps I recommend to build a strong and stable foundation that will establish your credibility and ability to effectively manage the HR function in your new organization. I think we all know this but often forget as it is the blocking and takleing.

  1. Most importantly – get to know the team. Get out of your office every single day and CIRCULATE around the office(s), store, plant, etc. and chat with your fellow employees. Learn your employee’s names and what’s important to them both personally and professionally. This helps them see HR as a part of their team, not the Grim Reaper that only makes an appearance when something bad is about to happen.
  2. Study and know the employee handbook (I know, zzzzzzzzzzzzzzzz) and other policies and procedures. You’ll need to be able to answer policy and procedure questions from employees as you circulate and as they come by your office/desk.
  3. Dig into the HRIS and make sure all the data in there is complete and accurate. It often isn’t. Make sure it is so that everything that feeds from the HRIS (payroll, benefit integration, etc) will also be accurate.
  4. Become the expert in the health and retirement benefits your organization offers. Make sure enrollments are completed with 100% accuracy. Build great relationships with your brokers and ask lots of questions.
  5. Respond quickly, accurately, and politely to all manager and employee requests and questions. Remember, you are a service organization supporting the other functional areas of the organization. Don’t ever be condescending because you think they should know the answer. You are the HR expert, not them and they are coming to you for your expertise – the reason you have the job!

By doing these five basic steps, you build the foundation of a successful HR function in your new organization. These are the basics that will establish you as a credible and trustworthy HR professional in your employee’s eyes.

Yes, I know every senior HR professional, and leadership team, wants to do the exciting strategic stuff but without that important foundation, the strategic HR initiatives will fall flat because you will not have the credibility and trust from the very people who need to buy in to those initiatives.

You absolutely must have a solid and effective foundation in order to effectively build the strategic framework that your leadership, managers, and employees will embrace. This will ensure your success in your organization and allow you to more easily have your strategic HR initiatives be successfully adopted.

Taking a Knee is a Workplace Issue

NFL Players are Hurting Their Employer's Business

I’m going to throw my hat in the ring on the NFL players taking a knee during the National Anthem thing. Personally, I don’t like it and, as a result, have changed my NFL viewing habits because of it. With that out of the way, and since this is an HR blog, I’m going to address how this relates to HR.

To me this is purely a workplace issue, not a free speech issue. The players are at their workplace when they are protesting. These protests are hurting their employer’s reputation and earnings as evidenced by the significant drop in attendance and drop in TV ratings week after week.

The players’ free speech isn’t constitutionally protected here. The constitution prevents the government from making a law that stops freedom of speech and the government is not preventing them from protesting. Their protests are causing the NFL direct financial harm by fans boycotting their games either by not attending and/or not watching.

I’ve never worked for an employer that would allow me to protest while I was at work and if I did, I’m 100% certain, I would be disciplined and/or no longer work there.

I’ve read some articles claiming their protests are a protected concerted activity under the National Labor Relations Act. This one from the New York Times and this one from a pro-union blog. Their arguments are compelling but I really don’t see it as the players are not protesting their working conditions nor are they engaging in political advocacy as it relates directly to their job.

From my understanding they are protesting in support of former 49ers quarterback Colin Kaepernick.

Here is what he said when this all started:

 “I’m going to continue to stand with the people that are being oppressed. To me, this is something that has to change. When there’s significant change and I feel that flag represents what it’s supposed to represent, and this country is representing people the way that it’s supposed to, I’ll stand.”

“This stand wasn’t for me. This is because I’m seeing things happen to people that don’t have a voice, people that don’t have a platform to talk and have their voices heard, and effect change. So I’m in the position where I can do that and I’m going to do that for people that can’t.”

“It’s something that can unify this team. It’s something that can unify this country. If we have these real conversations that are uncomfortable for a lot of people. If we have these conversations, there’s a better understanding of where both sides are coming from.”

“I have great respect for the men and women that have fought for this country. I have family, I have friends that have gone and fought for this country. And they fight for freedom, they fight for the people, they fight for liberty and justice, for everyone. That’s not happening. People are dying in vain because this country isn’t holding their end of the bargain up, as far as giving freedom and justice, liberty to everybody. That’s something that’s not happening. I’ve seen videos, I’ve seen circumstances where men and women that have been in the military have come back and been treated unjustly by the country they fought have for, and have been murdered by the country they fought for, on our land. That’s not right.”

His statement has nothing to do with working conditions or political advocacy that relates directly to the job of being an NFL player. I don’t see how these athletes are being oppressed. They’re living the American Dream. They get to play the greatest game on earth, get paid millions of dollars, are celebrities, and are worshiped as heroes by millions of fans.

Kaepernick’s protests are an attempt to bring attention to other people who are being oppressed. In fact he even said “This stand wasn’t for me” in this statement. Whatever you think of his statement and the reasons behind his protest, this has nothing to do with working conditions and political advocacy as it relates directly to their work in the NFL.

I think his reasons are admirable but he brought it to his workplace and decided to protest during our National Anthem and flag unfurling. This has caught on throughout the NFL and many of us don’t connect the two and find it offensive and disrespectful to our country and those who have fought to ensure and protect our freedoms, despite what they say to the contrary.

Now many fans are exercising their power by boycotting games causing the NFL to lose a lot of goodwill, reputation, and most importantly, revenue.

When an employee’s conduct directly hurts an employer’s business, as is clearly happening here, that employer has every right to take corrective action on the employee. The protesting NFL players are protesting while at the workplace and are causing a serious negative financial impact on their employer.

The NFL is, in my opinion, obligated to take the appropriate corrective action to protect their business.

Dealing with National Politics in the Workplace

You can’t get away from it these days. It’s all the media is talking about, it’s all over our social media feeds, it’s on all the award shows and entertainment programs we’re watching, it’s overheard in the stores and coffee shops we are visiting, and it’s in our workplace. Political discussions are everywhere and we are more politically polarized than I’ve ever seen in my life.

With today’s massive megaphone of social media and the 24 hour news cycle, many people have expressed their passion about the political issues and their candidates. And there’s something to offend just about anybody with the current hot-button issues such as race, class, gender, abortion, LGBT rights, immigration, terrorism, religion, etc.

I would venture to guess that we have all witnessed some very heated exchanges between family, friends, and coworkers regarding today’s political climate. I’ve seen people I respect and care about say or write some pretty horrible things about others based simply on their political beliefs.

People are more polarized in their positions like I’ve never seen before and those positions are making their way into the workplace and affecting morale and productivity.

In addition, many of today’s issues swerve into employment law. Political discussions about issues that affect working conditions such as minimum wage, equal pay, and paid leave might be protected by federal law.  While, on the other hand, political discussions about race, gender, and religion may lead to harassment or discrimination claims. And it only takes one person to pop off during a heated discussion and alienate another employee and/or cause a hostile work environment or a potential harassment claim.

I make it a practice not to discuss politics at work – especially these days. I hear enough of it on my Sirius radio when I commute to and from work and when I’m home trying to catch up on the news. Frankly, I’m exhausted of it all and don’t want to have to deal with it when I’m at work.

But, I’m HR, so I have to deal with it at work.

As such, I’ve come up with a couple of proven recommendations to help keep things under control.

First and foremost, HR must remain neutral. This is my number one recommendation. Whatever your beliefs, HR must be neutral and not take a side in a disputed conversation about politics. HR absolutely should not engage in a conversation with other employees expressing their political opinions and joining in with them bashing a side. I guarantee that you have employees on the other side who will hear or overhear what you said which will erode your credibility with them.

The purpose of your neutrality allows all of your employees to feel safe coming to you with their concerns about potentially uncomfortable or hostile political conversations they overheard or were part of. It’s HR’s job to make sure employees feel safe to surface any concerns they have from conversations they’ve had or overheard that make them feel uncomfortable or offended.

Second, Establish and communicate ground rules. Meet with your senior leaders to determine what political discussions your organization is willing to tolerate/accept at work. Will you ban it entirely or will you allow some as long as their respectful, appropriate, and inclusive of all beliefs?

Once you have that established,  conduct an all hands meeting and follow up with an email reminding your employees to be professional, respectful, and tolerant of other employee’s political beliefs. Remind them of the process for airing their complaints and how they will be dealt with and what the consequences will be for violating these ground rules. You must, as HR, clearly communicate to your employee population where you draw the line between acceptable and unacceptable behavior. You can’t be ambiguous.

It’s also important to understand that you can’t ignore the issue at work. Ignoring it will only make the situation worse because these conversations may escalate into profanity and direct threats. Other employees who want to stay out of these discussions may also be unwillingly dragged in.

When you overhear a controversial political discussion happening at your workplace, and you’ve established the accepted ground rules, you simply remind the employees engaged in the conversation that they are not behaving in an acceptable manner (professional, respectful, or tolerant). If they continue after your reminder, you simply begin your organization’s disciplinary process.

Hopefully these suggestions will help you keep your workplace professional, respectful, civil and ultimately productive!

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What are Metrics and how to Avoid Common Mistakes When Working with Them

Seventh Entry in the Metrics and Analytics Series

Now that we’ve spent several weeks in the Metrics and Analytics Series defining what analytics are and discussing several real world applications, I want to spend this week reviewing and defining metrics and some common mistakes when using them.

Let’s start out by defining what metrics are according to Jac Fitz-Enz in his book The New HR Analytics. According to Fitz-Enz, metrics “are numbers that indicate how well a unit or an organization is performing in a specific function.” Rather than relying on anecdotal evidence, metrics provide context to where we can analyze performance much more accurately.

These metrics come in the form of percentages, ratios, complex formulas, or incremental differences and can be either individual or aggregated. We can also track them over time in order to show trends.

The data for the metrics are found in both internal and external sources. Internally, the data are payroll, employee surveys, Enterprise Resource Planning (ERP) systems, HR functions, marketing data, sales data, and financial statements. Externally, the data are common benchmarks in your industry, national and local labor market trends, salary surveys, actions from competitors, workforce demographics, and government reports.

In addition, the data collected is both quantitative and qualitative.

Quantitative data are the numbers. Examples of quantitative data are retention rate, overtime, training & development hours per employee which can be found in most HRIS systems. Some other examples are tracking the number of daily employee-client interactions, the number of units an employee produces, etc. These data can be used to rank employees to award bonuses, raises, and promotions for those who excel as well as offer additional training and coaching or discipline employees who are falling short.

Qualitative data are actions and behaviors that are observed. There are no numbers involved which means the data are subjective. Often these data are collected via employee surveys, interviews, and observations. Examples of qualitative data are why employees stay or leave an organization, the value of teamwork in an organization, the effectiveness of how a supervisor manages her direct reports, etc.

It’s also very important to avoid making certain common mistakes when working with metrics. HR Professionals need to show that we understand what we are talking about and how we analyze and report them as they contribute to the improving the business. I have summarized the following common mistakes from the The New HR Analytics.

  • Confusing Data with Information – Don’t bury yourself in data thinking you will find some valuable information simply from gathering it. You will need to know what you will do with it once you have it.
  • Valuing Inside Versus Outside Data – As Fitz-Enz says “…no one in the organization cares what is happening with the human resource function. All they want to know is what value HR is generating for the company.” Don’t get hung up on the HR activities, instead focus on the employee activity and how it impacts the organization.
  • Generating Irrelevant Data – Metrics must be able to effectively answer relevant business questions so the focus must be to collect and report only data that is important to the business. Learn and understand what metrics are important to your organization.
  • Measuring Activity Versus Impact – Don’t collect and report data that doesn’t show some positive or negative effect. Just reporting costs, quantities, or time cycles without describing their effects on the business is ineffective and a waste of everybody’s time.
  • Relying on Gross Numbers – Try to avoid averages as they mask the effects on the business. Analyze the mean, median, mode, and the percentile in order to determine if the data points are spread out in a wide range or are bunched up around the middle.
  • Not Telling the Story – After collecting and analyzing the data, make sure to tell the story of what happened, why it happened, when it happened, where it happened, how it happened, and to whom it happened.  Never report something if it doesn’t tell a story.
  • Analysis Stagnation – What are the implications of the data and what are you going to do with it? If the data and the story are compelling enough, determine how to get management to take action in order to solve the identified problem or exploit the identified opportunity.

I encourage you to take another look at these common mistakes and do what you can to avoid them. As I mentioned, HR Professionals must, in order to be take seriously, be able to understand what we are talking about and how to effectively analyze and report our data in order to positively impact the business of our organization.

I invite you to take the survey located at the top of the sidebar on this week’s post about metrics and some common mistakes about them.