As a Licensed Marriage and Family Therapist (LMFT) with a Ph.D. in Psychology, my education causes me to see the psychology in everything. So with all the downsizing reports these days, I can’t help but notice what this business decision does to the people who keep those businesses going. 

Not only are those laid off affected by the stress of losing their jobs, but so are the “survivors” who remain at the company to do twice the amount of work with less help and the constant fear that they might lose their job next. 

In these situations, communication is key. Executives and Human Resources (HR) professionals must constantly and consistently communicate the reality of the downsizing and its aftermath to both types of employees in order for that reality to fully sink in. They should also promote the company’s Employee Assistance Program (EAP) services for all employees to utilize during this time. 

Numbers Don’t Lie

The psychology of downsizing also affects employees at companies who are not downsizing or who have not announced such a business decision yet. These employees’ morale and productivity is just as likely to decrease due to the worry that their company might lay them off next, since many of their friends and family members have experienced this shocking reality.

According to a Pew Research report, “Job Worries Climb the Economic Ladder,” based on a poll taken Feb. 4 to Feb. 8: “The proportion of Americans citing jobs or unemployment as the nation's most important economic problem has more than quadrupled—from 10% to 42%—since early October and job worries now far surpass concerns over the financial crisis. People's perceptions of the availability of jobs in their areas have worsened as the unemployment rate has increased. Fully 80% say that jobs are difficult to find in their local communities—up seven points since December and 16 points since early October.”

There is Hope

Despite the decreased morale and productivity downsizings can cause in the business world, there is hope. In the Feb. 11 CNBC.com On the Money blog written by Bob Rosner entitled, “The CEO Patriot Pledge: Just Say ‘No’ to More Layoffs,” Rosner encourages CEOs to go to the Web site Workplace911.com and sign the “CEO Patriot Pledge” to show their commitment to doing their part to keep their employees.

The pledge is: “As an executive my primary motivation is to act for the good of my company, not just my own financial gain. No one at our company will earn a guaranteed base salary more than 40 times of our lowest paid worker and we will offer the same health care and 401(K) matches to employees as we do for executives. We support pay for performance, so when our company’s performance serves investors and employees, we’ll share in the gains. When our company’s performance does not adequately serve our investors and employees, we’ll share in the sacrifice.”

Wow, what a concept! According to Rosner, the average CEO makes a salary 262 times the salary of their lowest paid worker. If each of those “average” paid CEOs would reduce their salaries to what the pledge suggests—just 40 times that of their lowest paid worker—then, Rosner says, this salary reduction could allow 200 workers to keep their jobs.

Quite a difference! Rosner also has a YouTube video explaining the pledge and giving an example of a CEO whose company is successful because he keeps his salary at or below the pledge’s suggested level.

Action Steps

So what can you do to improve the negative psychology of downsizing in the business world today? Save as many jobs as possible so the least number of employees have to experience the reality of downsizing!

Go to www.workplace911.com and sign the “CEO Patriot Pledge!” Read Rosner’s blog and watch the YouTube video to learn more and don’t just sign the pledge, commit to do what it says! You can change this downsizing psychology!

I saw my colleague, Priscilla Kohl’s, Insight on her top 3 articles for 2008 so I thought it was a great idea to copy! Thanks, Priscilla!

Below are my Top 5 Articles for 2008, just in case you missed them:

1. Are You Flexible? Reports on the Use of Flexible Work Schedules

Several options for making your workplace flexible exist and can include:

• Compressed work weeks/alternate work schedules;
• Flex-time and part-time options;
• “Family Time” accruals from overtime work; and
• Location flexibility.

Read the whole article by clicking here.

2. Growing an Organic Human Capital Strategy with the Organic Business Guru—CJ Coolidge

This article is an excerpt of my interview with the Organic business expert, CJ Coolidge. For over 30 years, Coolidge has been an entrepreneur, business owner, manager, sales associate, counselor, teacher and consultant. He is a pioneer in the field of creating profit through human assets, specializing in exploring the relationship between a company’s people and its profitability and discovering huge untapped potential in most enterprises. Coolidge has been speaking on these topics across America and is the author of the upcoming (Summer 2008) revolutionary business book The Squaredime Letters. You can find out more about Coolidge on his Web site: www.cjcoolidge.com

Read the interview by clicking here.

3. Return to Work Programs: What Are They and How Do They Save You Money?

For this article, I interviewed Director, Property & Casualty Claim Services, Roger Campagnola, ARM, with a large company. I wanted to know what he knows about Return to Work programs as an asset to any business’ Workers’ Compensation plan, since he manages the claim services for over 100,000 employees.

Read the interview by clicking here.

4. Facebook: Can it Increase the Emotional Health & Productivity of Your Employees?

Facebook.com, if you don’t already know, is one of the most popular social networking Web sites in the world—but what does it have to do with your employees?

Read how by clicking here.

5. Politics and the Workplace: What is an Employer to Do?

According to a Senior Human Resource Specialist of a large company, Karen Codere, business owners should establish guidelines that allow employees to discuss the issues but also allow others to opt out.

Read the rest by clicking here.

Happy reading and keep coming back to check out the amazing HR “Tools” we have planned for 2009!

I have had a lot of horrible managers in my work career so far (thankfully the one I have now is great), and I am sure all of us can relate! (Did I mention the one I have now is great?) I have always wondered why some managers can be amazing (like my current manager), while others can be down right awful. Thankfully for us all, Randstad USA has released their 2008 World of Work survey to shed some light on the ways a manager can be at their best and worst.

One part of the aforementioned study by Randstad USA focused on the gaps between employees’ views of the ideal employer versus their current company. The top 10 of those “gaps” regarding the employees’ views of the way they are managed at their current company (all having over 50 percent of the ideal workplace importance rating for the employees interviewed) is listed below as my list of the “Top 10 Ways to Be a Horrible Manager:”

1. Don’t recognize the value each of your employees brings to the organization. In the survey, 67 percent of employees said an ideal employer would recognize the value they bring, while only 29 percent said this trait describes their company well, leaving a 38 point reality gap.
2. Don’t care about your employees as much as you care about the customers. Survey says—66 percent of employees believe their employer should care about them as much as they care about their customers, but only 26 percent of those employees said this happened at their company, leaving a 40 point reality gap.
3. Don’t provide a workplace that reflects your respect for your employees. According to those surveyed for this study, 61 percent report they feel the ideal company would provide a workplace that reflects its respect for the employee and their co-workers while 28 percent report this is actually the case in their company, leaving a 33 point reality gap.
4. Don’t serve the company, serve yourself. Fifty-eight percent of the survey responders said the ideal company has an active leadership who serves the company (not themselves), while only 27 percent say their company’s leadership meets this criteria, which is a 31 point reality gap.
5. Don’t encourage your employees to continually develop their skill set. While 56 percent of those surveyed said the ideal employer would encourage them to continually develop their skill sets, only 29 percent reported this happens at their current workplace. That is a 27 point reality gap.
6. Don’t seek your employees’ honest input on business issues. Fifty-five percent of the survey responders said the ideal employer wants their honest input on business issues, while 26 percent of those surveyed said their current employer has this desire. That leaves a 29 point reality gap.
7. Don’t focus on your employees’ strengths more than you focus on their weaknesses. According to the survey, 54 percent of employees said the ideal employer would focus more on their strengths than on their weaknesses, while only 27 percent reported their current employers did this, leaving a 27 point reality gap.
8. Don’t encourage your employees to be innovative thinkers. Of those surveyed in this study, 53 percent believe that the ideal employer would encourage them to be innovative thinkers, while 28 percent said this actually happens in their current company, which leaves a 25 point reality gap.
9. Don’t have clearly defined advancement opportunities. Fifty-two percent of employees think an ideal employer has clearly defined advancement opportunities, while only 21 percent of their current employers do, leaving a 31 point reality gap.
10. Don’t encourage a collaborative work environment. More than half of the participants in this survey (51 percent) said the ideal employer would encourage a collaborative work environment, yet only 29 percent of their current companies encourage such an environment, which leaves a 22 point reality gap.

How to Be an Amazing Manager

If you saw yourself in any of these ways to be a horrible manager, there is still hope for you to become an amazing manager! Simply begin on a track toward what most employees view to be the ideal employer, and you will start to make a positive impact on your teams’ work environment. Good luck, and remember our mantra, W.W.S.H.R.D.? (“What Would Strategic HR Do?”). They would hire amazing managers and do everything they could do to turn horrible managers into amazing ones!

Flexible work schedules are becoming hot topics in the workforce today, especially in light of high gas prices and energy costs. Offering employees the option of:

• a compressed work week,
• alternative work schedule,
• flex-time/part-time scheduling or
• working from a remote location

can help not only employees, but also employers, save money and energy and increase productivity. See my feature articles this month on “Gas Prices and Retention” as well as “Are You Flexible” for more information on the possible savings of flexible work schedules.

Why Is Being Flexible with Your Employees a Good Investment?

Good question! I can speak from my own experience to answer it since I myself am a remote employee, which, as you read above, is one flexible work schedule option an employer can choose to provide for their employees.

In my experience, being a remote employee is a good investment for me and my employer for several reasons:

1. We both save money! I save money on gas and my employer saves money on providing me office space.
2. We both save time! I save time driving to work and back each day, as well as getting “ready” for work, while my employer saves time having to wait on me to get “ready” and get to work!
3. We both are more productive! I am more productive because I do not have the distractions of working in a cube when I work from home. My employer is more productive, then, because I get a lot more work done in this arrangement, which allows my contributions to the success of the business to occur a lot sooner, thereby increasing the bottom line in a much timelier manner than expected.
4. We both are happier! I am much happier and less stressed out working from home than when I am at the office. This happiness also contributes to the increase in my productivity. My employer, then, is happier because, “If Cara ain’t happy, ain’t nobody happy!”
5. We both are more loyal! I am more loyal to my company being a remote employee. It will be very hard for another company to “steal me away” because they would have to offer me the same arrangement and more money and influence than my current company. My employer is more loyal to me because they can see my loyalty to them in my work and increased productivity.

So, W.W.S.H.R.D.?

Now that you have heard how a flexible work schedule option has helped me and my employer save money and energy and increase productivity, what are you going to do to take advantage of one of these great options for your employees so you can benefit from the same results? Remember our mantra, “W.W.S.H.R.D.?” (What Would Strategic HR Do?). They use flexible work schedule options with their employees to attract and retain top talent, so if this is one of your goals, too, consider offering one or all of these options to your employees. It can be a great win-win solution!

Hello, Revolutionaries! By now you are repeating your new mantra several times a day (“W.W.S.H.R.D.?”, “What Would Strategic HR Do?”) and have initiated the Strategic HR Revolution in your company. Way to go! Today’s topic is technology. Your Mama’s HR doesn’t utilize it, but Strategic HR will not survive without it.

W.W.S.H.R.D. with Technology?

 According to a Workforce.com report written by Ed Frauenheim and Robert Scally titled, “IHRIM Conference Highlights the Influence of Social Networking and Talent Management Technology on HR” posted on June 2, 2008, the top HR technology being utilized by strategic companies currently is Talent Management software, “Talent management systems are applications for key HR tasks, including employee performance management, compensation management and recruiting. They are among the fastest-growing products in HR software, which is itself the fastest-growing category of business software.”

Whether this software comes in the form of Software as a Service (SaaS) Web 2.0 technology or a software package you can purchase online, strategic HR revolutionaries are using some version of Talent Management software to get the upper hand on attracting, hiring and retaining top talent for their companies.

So What?

You may be thinking. That is great that lots of people are using Talent Management software, but what’s in it for me? Well, Revolutionary, what is in it for you is up to you! Talent Management software is just one version of HR technology you can utilize in your business, but really the sky is the limit! You can use other forms of HR technology to automate and integrate your HR systems with each other and even other departments in the company.

For example, your payroll software could integrate with your benefits software so that benefit deductions from your employees’ paychecks are seamless and accurate. You could also have your performance reviews integrated with your compensation software so that you can keep track of when an employee last received a raise and what the next bump in compensation or bonus should be for that employee based on their performance in the interim. Again, the sky is the limit!

But You Said I Should Outsource All That Stuff!

You are correct, and what a good memory you have! Yes, I did say you should outsource all the administrative HR tasks for your company to a Professional Employer Organization (PEO) so your HR professionals can focus on Talent Management. I still highly recommend this course of action. In fact, most PEO’s have a software system that does incorporate all your HR functions to make them seamless and your employees’ information easier to track. I also recommend, however, your HR employees use Talent Management software to help you recruit and retain the best employees. In my opinion, it just helps streamline employee management and ensure accuracy of employee records so you can make sure you are rewarding your employees on a regular basis in a way that keeps them onboard.

What’s Next?

Now that you know the latest in how strategic HR is utilizing technology, Revolutionaries, tune in to my next post where I will discuss the importance of offering flexible work schedules and how technology can play a role in this strategy, as well. Until then, remember to use your mantra to continue the revolution in your company, “W.W.S.H.R.D.?”

W.W.S.H.R.D.?

In my last post, I discussed the differences between “Your Mama’s HR” and the revolution of “Strategic HR.” Continuing with that discussion, I want to implement the new mantra that every HR Manager should have somewhere in their office to meditate on daily as they make crucial talent management decisions: W.W.S.H.R.D.? This lovely little acronym stands for: “What Would Strategic HR Do?” 

What Would Strategic HR Do?

Typically in a down economy, Your Mama’s HR does not recruit. In fact, they usually are involved in massive layoffs. The recent downturn in the economy has shown this typical HR behavior to be rearing its ugly head again. So if Your Mama’s HR does not focus on recruiting in a weak economy, what would Strategic HR do? 

Drum Roll Please…

Strategic HR aggressively recruits the top talent in a down economy! If that answer surprises you, please read my previous insight and then come back to this spot after you have been properly introduced to the revolution of Strategic HR. I’ll wait; go ahead…  

Welcome to the Revolution!

Okay revolutionaries, why does Strategic HR advocate recruiting for top talent in a down economy? The answer is simple. In fact, Chairman of the Board and CEO of Administaff, Inc., Paul Sarvadi, explains the answer to this question clearly with his comments in the company’s first quarter earnings release statement of 2008, “Last quarter I mentioned our efforts to upgrade staff for our clients and fill our own open positions taking advantage of layoffs at large firms. Our success in hiring new reps this quarter is directly related to this strategy.”

Huh. So what Mr. Sarvadi seems to be saying is that by strategically using his HR department to recruit the top talent laid off from larger firms---as a result of the recent downturn in the economy---his company has been able to upgrade the staff of not only their client companies, but also their own company, by hiring stellar new sales reps. What a great example of Strategic HR at work! I think that Sarvadi is advocating this tactic because he has the numbers to prove it worked (which he did); but also, because he knows that the companies with the top talent outgrow a weak economy faster and stronger than those companies who do not employ this recruiting strategy, thereby giving him and all other companies like his the upper hand in their industries. Which company do you want to be?

Avoid the “Monster Breeding Ground”

In conclusion, I would be remiss if I did not bring your attention to a scene from the Season Finale of the T.V. show The Office that recently aired. For those of you who do not watch the show or missed this episode:

1. The HR Manager of the Scranton sales branch office of Dunder Mifflin (paper sales company), Toby, retired to Costa Rica.
2. Michael Scott, the branch regional manager (who never liked Toby), after meeting Toby’s replacement, made this insightful statement:

"Thanks to Toby, I have a very strong prejudice against Human Resources. I believe that department is a breeding ground for monsters. But what I have to consider, though, is that not all monsters are bad…like E.T., for example.”

Well put, Michael.

So do you want to be an E.T. or a Godzilla? If your goal is E.T., then make your new mantra W.W.S.H.R.D.?—and live by it. Your employees and business owners will be extremely grateful. Hey, if all HR Managers strove to become good monsters, maybe articles like, “Why We Hate HR” would cease to be written?

Does HR Need an Identity Crisis?

I just had the pleasure of reading Keith A. Hammonds’ 2005 cover article for Fast Company, “Why We Hate HR.” I know, I know, you are probably wondering what rock I have been living under for the past three years? 

In my defense, I was in graduate school then and didn’t have time—or interest—in reading about HR. Having been a business consultant advocating the outsourcing of HR for a while now, I concur with every reason Hammonds gives for the average employee’s so-labeled hatred of HR.

The sad thing is, not a lot has changed since that article was written, especially in the small-to-medium-sized businesses I work with; not to mention corporate America. The solution to this corporate “axis of evil” now affectionately referred to as “HR,” is an identity change. In other words, I believe HR departments everywhere desperately need to have an identity crisis—the sooner, the better! 

Let’s Help HR Get Out from Mama’s Shadow

So, if HR is going to get out from under its Mama’s shadow and create its own identity, how is this revolution going to happen? Well, it starts in one place, and that is in the corner office.

As a business consultant, I have learned a great deal from other small-business owners and their stories. In fact, many business owners have invited me to visit with them in their corner offices to discuss HR strategies. When we talk about HR and how it can potentially affect their bottom line, they’re the first to admit; they can no longer sit back and giggle about the HR hate mongering expressed in Hammonds’ article on the golf course or at the spa anymore.

As a small business owner, you realize that the greatest truth to emerge from Hammonds’ article is that true HR professionals need a place in the boardroom. This brings me back to my idea in the opening paragraph—HR needs to have an identity crisis and the Business Owners of America have got to kick this crisis into gear—pronto!

Let’s Have a Productive Crisis

Based on my business-consulting experiences and educational background, in order to have a productive identity crisis, you have to:

1. acknowledge there is a problem;
2. decide what your goals are to alleviate this problem; and
3. strategize your identity to accomplish them.

So let’s acknowledge the problem of Your Mamma’s HR mistakes and work to avoid them---post identity crisis.

These mistakes are clearly outlined in Hammonds’ article, but I will summarize what I think they are here: 1) Your Mamma’s HR is too busy paper-pushing to understand the employee needs of the company. 2) Your Mamma’s HR does not recognize that successful and productive businesses do directly attribute that success and productivity to having the top talent in their industry. 3) Your Mamma’s HR could not define nor implement the true meaning of “strategic HR.”

 First Step

Okay, now we know what not to do.  So, what is the first step towards Your Mamma’s HR becoming the Strategic HR adult we all know it has the potential to become? Again, Mr. or Ms. Business Owner must start the process.

Now that you have given this strategic-HR straight talk some thought, Mr. or Ms. Business Owner, what are we going to do about it?  I respect the risks you’ve taken in starting your own business and the investments you make in hiring people to represent you.  Now, I want to help you make sure those people develop into the most talented and productive employees ever employed.

Let’s Take a Deep Breath and Then . . .

You need to reassign the HR department employees according to their talents and outsource the administrative duties they handle: medical benefits, 401(k), recruiting, general training and development, payroll, etc. (If you are looking for the best company to do that, shoot me an email. I am happy to give a recommendation.) Once the administrivia, or the responsibilities formerly known as “HR”, are taken care of, reassign those people to other positions within your restructured organization.  

Voila, instant identity crisis. I don’t care what titles you give their new positions; just make sure you have the best people in place for this new area of responsibility—talent productivity management.  I further recommend that you appoint these reassigned-group leaders to places in the board room—they are going to be that valuable of an asset to you and your company.

Second Step

The key performance indicators (KPI) of these reassigned people are simple—increase the company’s bottom line through measurable human capital management. For example, your new TMO (Talent Management Officer—it’s a working title) needs to validate at each board meeting—by presenting hard numbers—that they are maximizing the talent and productivity of your employees.

Say for example, after reviewing these hard numbers, you determine that Bobby’s department has experienced a 75 percent turnover after six months. That turnover is then traced to a 7 percent increase in product damage.  

Then the TMO needs to have a meeting with Bobby and his employees so they can strategize (there’s that word again).  Next, the TMO will develop ways to help these employees be the most productive and talented they have ever been.

Strategic HR Produces Results

During the monthly meeting, the TMO explains that as a result of that strategy session and its implementation, Bobby’s people improved their performance and they are producing successfully.  They show a decrease in the turnover numbers for Bobby’s department, as well as a decrease in damaged product.

Remember, too, that strategic HR is about directing leaders to coach and inspire increased performance levels. Obviously, Bobby had some responsibility for his department’s disappointing numbers.  In this case, my suggestion is that the TMO evaluates Bobby’s role in the team’s poor performance.

Then, the TMO needs to determine if Bobby’s leadership abilities match the position expectations or requirements. If the TMO thinks Bobby can lead his team to increased performance levels, the TMO charges Bobby with his next assignment.

Of course, you could have many assignments being strategically handled at any given moment by the new group who you have so intelligently appointed.  As you can see, planning an HR strategy and executing it with specific tactics are ways to demonstrate your HR vision.

Identifying Pain Produces Gains

Okay, I know I have barely scratched the surface here; but, I hope the point is made that HR needs to have an identity crisis—and pronto! I hope I also communicated that the responsibility for this crisis does not rest in the hands of Your Mamma’s HR alone, but also with the small business owner strategizing in the corner office, down the hall.