HR Leadership and Breaking the Mold: Where is Your ROI While You Recruit, Retain and Reward Employees?

Mark Lopshire, MA, M.Ed.Director, MSTI @ SLMVMC208.814.1685

“To improve the health of the people in our region.”

Purpose

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We will:Challenge yourselfChallenge the normDestroy the old paradigm and perceptions of HRSeek HR velocityHR leadership!Review Solutions

Agenda

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• Customer Perception: HR is just overhead!• What is your ROI? • Recruiting• Reward • Retain• HR Leadership - Changing the paradigm • Challenges • Summary

Customer PerspectiveHR is just overhead

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• HR always adds more processes• HR adds more paperwork• HR takes to much time to find candidates• HR gets us crummy employees• HR tells me that I cannot fire a poor performer• HR increases the cost of our health benefits• HR reduced our vacation time• HR is just worried about regulatory requirements • HR sits at their desk and makes stuff up• HR does not understand what I do

Customer PerceptionNot limited to the private sector

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“….What did we get? Slow service; sometimes NO service if someone goes on leave, because the work sits there, no matter what. Customer service took a big hit. I do not blame them; you cannot get blood out of a turnip.”

“The HR managers in my agency…would recognize that my organization is on the road to mission failure.”

“The ineptitude of federal HR functions is well-documented, well-known and widely accepted. Throwing more money, more training and more FTEs at HR will not resolve these performance deficiencies.”

“Not surprising. HR gets cut before anyone else. ..We're the step children of the step children…”

Customer Perception

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• Is it a wonder that the perception is HR is just overhead?

• We need to change the view!• Exercise: • What have you done for your customer

today?

HR cannot be overhead!

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ROI is the return on the investment. How much did you invest and how much did you make? It applies to HR!

Examples:Old school: Hire 10 new employees on manufacturing line – Newspaper

ad $500, total annual salaries + costs $260k per year First six months 50% quit or are firedSearch, rehire, train, loss of manufacturing time cut by 10%-30%

weeklyHR cost the company over $150k in this year – wrong hires, lines

down, time to hire/rehire, affect on team – what is the ROI?Change the paradigm: Hire new CIO – Search firm 30%, Salary $100k,

$10K bonus plus benefits/costs $30k (Year 1 cost $170k)In first year cut IT expenditures $50k, implemented new inventory

tool and reduced inventory by $100k – Was this a good ROI?

What is your ROI?

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“Good is the enemy of great”…Jim Collins From Good to Great

• Exercise• Describe your three greatest HR accomplishments

that have contributed to in some manner to the success of your company?

• Put a dollar value to that accomplishment in terms of time saved, dollars saved, improved recruiting, retention, etc.

• Write your 30 second elevator pitch why I should hire you?• Save and adjust throughout the next 30 minutes

Recruiting Hiring the best

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Find the right hireNewspaper? Internet? Local? National? Associations?

Integrate leaders into the process early on and update weeklyGreat opportunity for transparency and holding ourselves

accountableUse a score sheet/matrix

Reduce errorSave interview documentation

Avoid legal issues Recruiting Velocity!

Anticipate, proactive – eliminate the reactive

Recruiting Hire the best!

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Aptitude – 25% What have they done?Do we lie on our resumes!

Attitude – 50% Can they identify their ROI? Can they learn? What are

their strengths? Potential – 25%

What can they be doing in 36 months? Can they contribute to the team ROI? How can they improve processes?

RecruitingHiring pipeline

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Velocity!Keep certain jobs always postedAccept unsolicited resumes – send them to managers as “hip

pocket” solutions – no calls…why not!Determine FTE solution:

80 FT/20 PT/10 Temp or PRN80/10/1070/20/10

"Far and away the best prize that life offers is the chance to work hard at work worth doing”…Theodore Roosevelt

RecruitingBehavioral Interviews

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“Describe”… “Describe”… “Describe”… Identify employee outcomes and success prior to posting Integrate in job description Posting – clearly state “Please ensure that your resume reflects the skill sets,

behaviors and how your positive attitude will help our company!” Make list of behavioral interview questions - makes candidate selection more

defensible - allows for comparisons – Review applications with the behavioral traits and characteristics in mind. Phone screen candidates with managers then schedule the most qualified

candidates for a behavioral interview. Ask your list of behavioral and traditional questions of each candidate during the

behavioral interview Team interviews not only identify “great fit” they also train future leaders References lie – ask behavioral questions Consider summary matrix – use a grade! Select your candidate

Recruiting Keep the Pipeline Filled

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Be ready to hire nowFocus on HR velocity!

Proactively work with and anticipate turn over with leaders

Internet and web posting for hard to hire and high turn over positions

Strategic planning through 2014 – 36-month forecast – Growth, new products, retirements, turn over and internal promotion – this is a best guess tool!Partner with customers to develop!

RetentionWhy do great employees leave?

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• High performers ask for training, responsibility and opportunities! …. • Quint Studer, Results That Last

RetentionWhy do great employees leave?

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Because they can!They know their ROI and we have not taken care of them!

The job or workplace was not as expected….speak the truth.Mismatch between job and the person...competency and personality. Too little feedback or coaching…we all need daily feedback with the

detailsNo growth, training and promotion opportunities….title, training,

challenges…it is not the pay! Feeling devalued and unrecognized….recognize and seek high

performance employee input.Stress from overwork and work-life imbalance…family or job? Loss of trust and confidence in senior leaders…clear vision, ethical,

role model.

Rewards

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“Great managers break every rule perceived as “conventional wisdom,” when dealing with the selection, motivation, and development of staff”… Marcus Buckingham and Curt Coffman, First, Break All The Rules: What the World’s Greatest Managers Do Differently

"Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game”…Donald Trump

Rewards

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Speak the truthSpend 90% praising the best! Manage up!Title, training, challenges…it is not the pay! Seek high performance employee input…

committees and projects – be careful of burn-outInvolve in setting the visionUse as role model

HR Leadership

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"Leadership is not magnetic personality…It is notMaking friends and influencing people ..Leadership islifting a person's vision to high sights, the raising of aperson's performance to a higher standard”…Peter F. Drucker

HR LeadershipVoted by HR Managers

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Human Resource Managers plan, direct, and coordinate human resource management activities of an organization to maximize the strategic use of human resources and maintain functions such as employee compensation, recruitment, personnel policies, and regulatory compliance.Tasks* Serve as a link between management and employees by handling questions, interpreting and administering contracts and helping resolve work-related problems.* Analyze and modify compensation and benefits policies to establish competitive programs and ensure compliance with legal requirements.* Advise managers on organizational policy matters such as equal employment opportunity and sexual harassment, and recommend needed changes.* Perform difficult staffing duties, including dealing with understaffing, refereeing disputes, firing employees, and administering disciplinary procedures.* Plan, organize, direct, control or coordinate the personnel, training, or labor relations activities of an organization.* Represent organization at personnel-related hearings and investigations.* Administer compensation, benefits and performance management systems, and safety and recreation programs.

This is a bureaucratic answer to a real world problem!!

HR LeadershipFrom a customer perspective!

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Human Resource Managers communicate and support leaders at all levels with education,training, and finding qualified employees while ensuring that recruiting, retention andrewards are focused on at all levels

TASKS Get out of your desk and meet leaders in their area to help solve work-related problems. Identify staff vacancies in advance and recruit, interview and select applicants. Communicate and improve compensation and benefits – communicate the value Talk with and train leaders about equal employment opportunity and sexual harassment,

and recommend changes Communicate weekly with leaders how HR is working on understaffing, refereeing

disputes, firing employees, and administering disciplinary procedures Hire the best Communicate with leaders about their top three most pressing issues and look for processes

that will improve their support Develop business and customer partnerships

HR LeadershipWhat about all of those legal issues?

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Hire the best, train them and you will reduce employment and employee issues

Then train the employees and leadersThen proactively round with leadersAnd you will reduce employment and employee issuesChallenge the norm!Destroy complacency in the workforce!

HR LeadershipMetrics

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Traditionally HR Managers do not like metricsTime from need identification to submission

Did not say time from termination to submissionTime to approvalTime to hire

Case studies2001 – TTH for Oracle Developers less than 3 days2011 – TTH qualified medical physicists two weeksWhat is your TTH? What candidate have you lost this year?

Can you keep your pipeline filled proactively?Do you have recruiting velocity?

HR LeadershipMetrics

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Monthly turnover by position and skill level Annual turn over does not identify issues and trends in a

timely mannerOvertime and premium pay management

Reduce $100k in monthly OT by 10%Employee complaints - Internal grievances

Run graph by typeEmployment issues - External

Run graph by typeTransparency. Brief monthly.What are your metrics?

HR LeadershipLEAN Processes – Immediate ROI

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The relentless pursuit to eliminate wasted time! Eliminate non-value add activities or processes to customers

Over-production: Submit in three copies with four signatures Waiting: HR form not on hand and must wait for tri-fold – keep on the intranet Transportation: Hand carry forms – email the forms Inventory: Keep six months of forms on hand Motion: Walking forms instead of email Over processing: To many meetings to make simple decisions Correction: Resubmit paperwork People: Under utilization of human resources…be strength based organization

Lean is not just manufacturing! Reduce time to hire…Eliminate paper - Web based processes Reduce time to legally terminate poor performers…Leader training Reduce leader paperwork…Forms online Reduce time and overhead for background checks …outsource

HR LeadershipPartnerships

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Teach leadership

"Good leaders make people feel that they're at the very heart of things, not at theperiphery. Everyone feels that he or she makes a difference to the success of theorganization”…Warren G. Bennis

Work closely with leadersPresent HR metricsShow them HR ROI!

"The key to successful leadership today is influence, not authority.”…Ken Blanchard

HR LeadershipCommunicate, Communicate, Communicate – Rounding with a purpose!

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• Round with a purpose with leaders• Have you seen every leader at least once a week in

their team environment?• Do you know every leader by their first name?• Can you discuss the top three corporate challenges and

top three issues for every department?• But email is so much more efficient – your customer

may not have time for email!

Challenges and Opportunities 2011 – 2014

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What is your corporate culture?Barriers?Is it to late to prove your ROI?How can you measure and share your metrics?Can you adapt?How can you go from good to great?

“..If people believe in themselves, it's amazing whatthey can accomplish." …Sam Walton

What is your ROI?

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• Exercise• Share your three greatest HR accomplishments that have

contributed to in some manner to the success of your company?

• Share the dollar value to that accomplishment in terms of time saved, dollars saved, improved recruiting, retention, etc.

• Share your 30 second elevator pitch why I should hire you?

Summary

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It is never to late to change!You cannot be overhead!You can lead!Meet your customer where your customer is!

Questions?Thanks you!

Mark Lopshire, MA, M.Ed.Director, MSTI @ SLMVMC208.814.1685