© 2003 SHRM

Top Five Workplace Trends:

Awareness and Action

A Society for Human Resource Management Presentation

© 2003 SHRM

“Even if you’re on the right track, you’ll get run over if you just sit there.”

- Will Rogers

© 2003 SHRM

“The HR profession is driving the most successful companies in the world.”

- Jim Collins

© 2003 SHRM

SHRM® 2004-2005 Workplace Forecast

www.shrm.org/trends

© 2003 SHRM

Top five trends covered by the Forecast:

1. Rise in health care costs 2. Focus on domestic and global safety and security3. Use of HR technology for employee

communication, e-learning and to perform transactional HR functions

4. Preparing for the next wave of retirement and labor shortage

5. Exporting of U.S. jobs to developing countries

© 2003 SHRM

Top five trends covered by the Forecast:

1. Rise in health care costs

© 2003 SHRM

Projected Employer Health Care Costs

12.3 11.3

0

5

10

15

2004 2005

2004

2005

Source: Hewitt & Associates (October, 2004), Analysis of the Hewitt Health Value Initiative

Percent of projected cost increase

© 2003 SHRM

2005 Watson Wyatt Health Care Findings:

• While health care cost increases have been in the double-digits for several years, the rate of increase has been slowing since 2002.

• Employers seem more willing to absorb cost increases rather than pass them along to employees.

• More employers providing information on specific health issues and provider quality.

Source: 10th Annual National Business Group on Health/Watson Wyatt Employer Survey of Trends in the Health Care Marketplace. (March, 2005).

© 2003 SHRM

Problem: Health care costs increased by 42% in 2001.

Solution: Listened to employees, taught them to be smarter consumers, provided more plan choices, rolled out wage-based premiums and shifted resources from benefits that employees did not value highly (such as life and disability plans) into their health care offerings.

Source:

Watson Wyatt (Dec, 2004). Strategy@Work

© 2003 SHRM

HR professionals may find solutions by paying attention to trends within the organization.

• What are employees saying about their health care experience?

• What procedures and prescriptions are driving plan increases?

• What is the existing level of employee understanding of health care options and wellness?

Ask Questions Such As:

© 2003 SHRM

Top five trends covered by the Forecast:

1. Rise in health care costs

2. Focus on domestic and global safety and security

© 2003 SHRM

Stealth Expatriates Exposed

Source: Cendant Mobility/ Worldwide ERC. “The Hidden Worker: The Reality of Stealth Expatriates”.

3%

9%10%

38%

40%

Suspect

Confirm

No, but concerned

No, but not concerned

Don't know

Percent who believe there are stealth expatriates in their organizations.

© 2003 SHRM

Reasons Behind the Trend

Source: Cendant Mobility/ Worldwide ERC. “The Hidden Worker: The Reality of Stealth Expatriates”.

19

17

25

0 10 20 30

Perceived to be MoreEfficient/Faster

Perceived to be LessCostly

Lack of UnderstandingAbout AssignmentPrograms

Percent who believe these are the reasons stealth expatriates exist in their organizations.

© 2003 SHRM

Complaints of Identity Theft by Year

14,570 23,660 32,054

2003 215,093

2004 246,570

2002 161,896

0

25000

50000

75000

100000

125000

150000

175000

200000

225000

250000

2002 2003 2004

Overall IDTheft

Employment-Related

Source:

FTC’s Identity Theft

Clearinghouse

** Employment-related theft

constituted 13% of reported

identity thefts overall in 2004.

© 2003 SHRM

Top States for Identity Theft (2004)

Source:

FTC’s Identity Theft

Clearinghouse

1. Arizona 142.5 9. Oregon 87.8

2. Nevada 125.7 10. Illinois 87.6

3. California 122.1 11. Georgia 84.3

4. Texas 117.6 12. New Mexico 83.4

5. Colorado 95.8 13. Maryland 83.0

6. Florida 92.3 14. Utah 76.6

7. New York 92.0 15. New Jersey 75.1

8. Washington 91.1 16. Michigan 72.3

* Number of victims per 100,000 of the population

© 2003 SHRM

Top five trends covered by the Forecast:

1. Rise in health care costs 2. Focus on domestic and global safety and security

3. Use of HR technology for employee communication, e-learning and to perform transactional HR functions

© 2003 SHRM

Problem: Effective onboarding in light of 48% employee turnover.Solution: Developed an onboarding process that includes 16 weeks of job shadowing, performance reviews and knowledge tests. Implement software that creates reports on new hire’s progress that go to the individual manager of the new employee.

Source:

Watson Wyatt (Dec, 2004). Strategy@Work

© 2003 SHRM

HR Activities Supported by HR Technology

Source: Collison, J. (2005) “2005 HR Technology Survey”. Society for Human Resource Management. Retrieved from www.shrm.org/surveys

Offer Plan Offer Plan

Payroll 83% 3% Internal job postings 45% 15%

HR reporting 75% 9% Performance mgmt. 37% 31%

Benefits admin. 61% 19% Mgr. self-service 36% 24%

Compliance mgmt.

58% 21% Training 34% 28%

EE attendance 48% 15% Competency mgmt. 23% 31%

Communication 46% 12% Employee surveys 20% 12%

© 2003 SHRM

Success of HR Technology Systems

Source: Collison, J. (2005) “2005 HR Technology Survey”. Society for Human Resource Management. Retrieved from www.shrm.org/surveys

41%

68%

3%Extremelysuccessful

Somewhatsuccessful

Not at allsucessful

© 2003 SHRM

Success with HR Technology Systems?

Source: Collison, J. (2005) “2005 HR Technology Survey”. Society for Human Resource Management. Retrieved from www.shrm.org/surveys

Yes No Yes No

Increased accuracy of employee info.

80% 11% Improved communication

26% 29%

Less HR time on administrative work

49% 43% Increased EE satisfaction

21% 33%

Managers have greater access

39% 34% Positive return on investment

20% 12%

More HR time for strategy

32% 38% Improved recruiting

20% 38%

© 2003 SHRM

Functions with High Potential, but Low Effectiveness

Source: The Conference Board (2005) “Establishing Value for HR Technology” survey. Pg 8.

Attracting and retaining key talent 71%

Performance management 54%

Employee communications 50%

Workforce planning 46%

© 2003 SHRM

Questions for HR professionals:

Source: The Conference Board (2005) “Establishing Value for HR Technology” survey. Pg 13.

1. What is a senior executive’s definition of value?2. Does HR contribute to the creation of that value?3. How can HR execs use technology to prove that HR as

a function adds value to the organization?4. How successful has technology been at providing the

tools to create value?5. What are the roles and responsibilities of the

application vendors providing the software?6. Have HR departments correctly applied these tools for

their own betterment and advertised successes?

© 2003 SHRM

CEOs: Staffing is a top priority

42 percent of U.S. CEOs and 66 percent of Asian CEOs say that the availability of skilled labor is their number #1 or #2 top concern.

Source: Conference Board. “CEO Challenge 2004: Perspectives and Analysis”.

© 2003 SHRM

Top five trends covered by the Forecast:

1. Rise in health care costs 2. Focus on domestic and global safety and security3. Use of HR technology for employee

communication, e-learning and to perform transactional HR functions

4. Preparing for the next wave of retirement and labor shortage

© 2003 SHRM

Climbing out the Hole: Employment DataSHRM/Rutgers Leading Indicator of Nat’l Employment (LINE): Increase in number of vacancies each month since Dec. 2004.

4 4.2

5.7 5.8 5.75.2

0

3

6

Jan.2000

Jan.2001

Jan.2002

Jan.2003

Jan.2004

Jan.2005

Unemployment rate

BLS National Unemployment Rate

© 2003 SHRM

The Aging U.S. Workforce

Source: U.S. Census Bureau and U.S. Administration on Aging

33

49

70

0

10

20

30

40

50

60

70

Millions of Americans age 65+

199520102030

Projected numbers of older workers

© 2003 SHRM

The Aging U.S. Workforce

Source: U.S. Bureau of Labor Statistics, 2000

© 2003 SHRM

HR’s Response to an Aging U.S. Workforce

Source: Schramm, J. (2005) “SHRM Workplace Visions: The Future of Retirement”

Investing more in T&D to boost employee skills 82%

Succession planning 67%

Training line managers to recognize and respond to generational differences

48%

Bringing retirees back into the workforce 41%

Offering customized employee benefits packages 38%

Conducting studies to determine future demographic makeup of organization’s workforce

36%

© 2003 SHRM

Top five trends covered by the Forecast:

1. Rise in health care costs 2. Focus on domestic and global safety and security3. Use of HR technology for ee communication, e-

learning and to perform transactional HR functions4. Preparing for next wave of retirement and labor

shortage

5. Exporting of U.S. jobs to developing countries

© 2003 SHRM

Offshoring Projections

Source: Forrester Research

0.3

0.6

1.6

2.5

3.3

0 1 2 3 4

2003

2005

2010

2013

2015

20152013201020052003

Number of U.S. jobs moving offshore by 2015 in millions

© 2003 SHRM

Occupations at Risk of Offshoring

Represented 11% of U.S. employment in 2001. Salaries averaged $39,361.

Source: Bardham & Kroll (2003). “The New Wave of Outsourcing”. Univ. of Calif., Berkley.

Computer operations

Business and financial support

Office support

Data entry keyers

Computer/math professionals

Paralegals and legal assistants

Medical transcriptionists

Diagnostic support services

© 2003 SHRM

To Offshore? Or Not to Offshore?

HR must be involved in the discussion!

Potential benefits? Savings and increased availability of labor, expanded customer service, improved quality, and revenue potential in new market.

Potential obstacles? Training, cultural and language barriers, difficulty in managing a remote workforce, inability to communicate corporate values and goals, morale problems with existing workforce, and a potential negative public image.

© 2003 SHRM

If “knowing is half the battle,”

the other half is taking action

based on what you now know.

© 2003 SHRM

1. How can I continue to make progress on your organization’s strategic and workforce goals?

2. Will the trend impact you more/less than your competitors? Will it be an issue in the future?

3. How are others our market handling the issue? 4. What can I do now to prepare and present

solutions to your leadership team?5. Are you able to discuss the trend in the language

that’s meaningful to leadership?

Ask Yourself:

© 2003 SHRM

Use your available resources, including SHRM, your local SHRM

state council and affiliated chapter.

www.shrm.org

© 2003 SHRM

“The very essence of leadership is that you have to have vision.

You can't blow an uncertain trumpet.”

- Theodore Hesburgh (President of Notre Dame University, 1952 to 1987)

© 2003 SHRM

Top Five Workplace Trends: Awareness and Action

Thank-you

A Society for Human Resource Management Presentation