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<b style="color: blue">Human Resource Associates</b>
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<span class="heading">HR - On The Job</span>
<p class="issue">HR and High-Tech</p>
<p class="subtitle">From Pencil and Paper to the "Cloud"</p>
<p>Technology has come a long way in the last 20 years, and the trip is getting even faster. In the late 1980s, few people had heard of fax machines, and when they arrived, they became indispensable at $2,200 each. By the early 2000s, most companies had very little use for them, even at $49.95, as the PC and e-mail were firmly entrenched in our workplaces and homes. Now, in 2010, many are beginning to see the PC as being of less use, and even laptops are becoming passé as hand-held tools with all their "apps" are the new technology.</p>
<p>But even for companies that have modernized their finance and operations departments, and for many small companies, HR hasn't made it into the high-tech world yet. Personnel files are usually still hard-copy paper folders, and although payroll may be PC-driven or provided by a vendor, very little other information is being collected and analyzed about their workforce. Why is that? It may be that although we are all aware that technology can make work more efficient and accurate, many of us don't see that the cost of additional hardware, software, conversion, and training time will provide the necessary return on investment (ROI) where HR is concerned. But they may be overlooking the most valuable use of technology in the HR function - analyzing the workforce or HR metrics.</p>
<p>HR metrics is the process of collecting critical information about your workforce and analyzing it in such a way that you can make important and informed decisions. In its simplest form, it may tell you why you are losing your best employees:</p>
<ul>
<li>Where did they come from (recruiting source)?</li>
<li>Who was their supervisor?</li>
<li>What was their age?</li>
<li>What benefits were provided to them?</li>
<li>Were they overqualified?</li>
<li>Were they under-qualified?</li>
<li>What was their pay level?</li>
<li>What training did they have?</li>
<li>What education level?</li>
<li>How long did they stay?</li>
<li>What month did they leave?</li>
<li>How much overtime did they work?</li>
</ul>
<p>Find correlations that identify trends or patterns, and you can respond to those patterns. For example, some years ago, a client faced a problem of being unable to keep employees in one of its most difficult but highly paid positions. An analysis showed that the primary correlation was that they were leaving during their fifth year of employment. A policy was created that recognized the completion of each employee's fifth year by providing him with one bonus week of vacation, one time only. That solution eliminated almost 90 percent of the turnover.</p>
<p>In its more sophisticated form, HR metrics can identify for which positions your company should be preparing a successor, who that successor should be, and what training and experiences he/she should be receiving. With regards to recruiting, HR metrics can help identify:</p>
<ul>
<li>Time to fill a vacancy</li>
<li>Quantity and quality of applicants based on source</li>
<li>HR cost per hire</li>
<li>Voluntary turnover rate during first year of employment</li>
<li>Involuntary turnover rate during first year of employment</li>
<li>Percentage of new hires performing above average by end of first year</li>
<li>Percentage of new employees performing below expectations by end of first year</li>
<li>Satisfaction of managers with hiring process</li>
<li>Quality of <i>retention rates</i> of new hires by recruiting source</li>
</ul>
<p>It can also provide information such as:</p>
<ul>
<li>New hires by age, gender, source, etc.</li>
<li>Percentage of employees with skill sets, education, certifications</li>
<li>Overtime hours by job type, dollars, department, day of week, supervisor, profitability of overtime</li>
<li>Performance appraisals ranked</li>
<li>Wage changes by time period, age, gender</li>
<li>Absences by type, age, gender, seniority</li>
<li>Terminations by seniority, age, race, gender</li>
<li>Total cost of paid time off</li>
<li>Time to attain productivity (getting up to speed)</li>
</ul>
<p>HR metrics is a primary element in the high technology systems that companies are installing as they increase in size and complexity. When an entire system of HR services is combined into one correlated package, it's called a Human Resource Management System (HRMS).</p>
<p>An HRMS software package can be obtained through vendors that can install an entire system and customize it to your specific needs. They can help you organize the data and create the database. A full service HRMS normally includes separate systems that can be correlated within each other to provide:</p>
<ul>
<li><i>Payroll</i> - Automates the pay process by gathering information on employee attendance, pay rates, deductions, and reports.</li>
<li><i>Work Time</i> - Gathers work sheets, labor distribution, cost analysis, productivity, and efficiency patterns.</li>
<li><i>Benefits Administration</i> - Organizes and tracks employee participation, profit sharing, retirement, etc.</li>
<li><i>HR Management Information System</i> - Provides the central personnel file function. It provides many aspects of HR, including identification, training, compensation, evaluation, and history of the employee. It acts as the central database from which all other services emanate.</li>
<li><i>Recruiting</i> - Online recruiting is becoming the primary method to garner potential candidates for available positions. The system assesses internal candidates, identifies potential candidates, connects to online recruiting sites and sources, assists in reference checking, generates advertisements, and provides applicant tracking.</li>
<li><i>Training/Learning Management System</i> - Tracks employee training, development, experiences, skill, etc. Provides training modules, and recommends and schedules development resources.</li>
<li><i>Performance Record</i> - Provides analysis of past performance, improvement, coaching results, recommendations, etc.</li>
<li><i>Employee Self-Service</i> - Allows employees to query HR-related information and to perform some HR transactions using the system. Employees can check their attendance record, change addresses and dependents, and supervisors can approve overtime without going through personnel.</li>
</ul>
<p class="section">The Cloud</p>
<p>Where high-tech is now going is in the "clouds." The cloud refers to the recent concept also known by its technical name SaaS or Software as a Service. Traditionally, when a company or HR department decides to acquire a high-tech system, it purchases the software package, a box of disks (that for all practical purposes it owns) that will be installed on its hardware. The new cloud concept does not sell or give you any software; you will not own anything. You are connected to the vendor's master copy of the software through the Internet. All updates, upgrades, maintenance, or repairs are administered to the master program provided by the vendor. You pay for the service.</p>
<p>If you're not wired up to the high-tech world yet, don't wait too long. What used to be a long trip is getting shorter and faster, and it won't be long before we're on to the next generation of high tech breakthroughs.</li>
<hr />
<p align="center"><b><i>Have an employment question?</i></b></p>
<p align="center">Send it to <a href="mailto:[email protected]?subject=From HR On The Job">[email protected]</a>.</p>
<p align="center">Please include Company Name and Association in your e-mail. Company identification will be kept confidential.</p>
<hr />
<p class="heading">Hitchhiking on the Information Highway</p>
<p><b>Dateline:</b> November 2010</p>
<p><i>(Note: Although we attempt to provide the HRU update on the first of each month, we are normally delayed awaiting the release of several monthly government statistical reports. We will hereafter update the information as each report becomes available without waiting for all of them to be released.)</i></p>
<p class="section">Trigger Words</p>
<p>In his very creative book "What a Great Idea", Author Charles "Chic" Thompson produced the following phrases called "Trigger Words". These are words that trigger images and thoughts that generate positive, pro-active influences. He says that any business person seeking success can find value in this list of phrases.</p>
<table width="100%">
<tr><td>
Closer to Consumer<br />
Improve Communications<br />
Immediacy<br />
Automate<br />
Meaningful Incentive<br />
Speed Up<br />
More Profit
</td><td>
Higher Quality<br />
Zero Defects<br />
Reduce Stress<br />
Cut Paperwork<br />
Increase Sales<br />
Self Confidence<br />
Lower Costs
</td></tr>
</table>
<p class="quote">"People are eternally divided into two classes:<br />
1. The believer, The builder, The praiser<br />
2. The unbeliever, The destroyer, The critic"<br />
- John Ruskin</p>
<p class="section">I Fought the Law -- and the Law Won</p>
<p>After McDonald's restaurant lost the infamous law suit against them for serving hot coffee, and they were vilified in the widely circulated film "Super Size Me" because people liked their food so much they overate, they have been diligent about warnings labels, the temperature of their coffee and the addition of salads and low calorie foods (which are their lowest selling products).</p>
<p>But the law is not through with the nefarious evil-doers. A former manager at a McDonald's restaurant in Brazil sued them because after 12 years of working for them, he had gained over 60 pounds. He claimed that the company provided him with free lunches everyday and required him to sample certain foods to assure they were up to standards. He claimed that their food was unhealthy (Like the customers, he chose the burgers, fries and soft drinks over the salads and low calorie foods). The former employee was awarded $17,500. Another victory for the defenders of the justice who warn us all that crime doesn't pay.</p>
<p>In that same vein, AVON products a few years ago faced a law suit when they terminated an employee caught sleeping on the job. Security videos showed that he was doing this quite often. When the supervisor decided that he needed to address the issue with him he discovered that the employee had already left early for the day.</p>
<p>The supervisor tried to contact him to no avail. His sister however, said that he was very sick. When finally contacting him he agreed to a meeting to discuss the issue. He failed to show up for the meeting and he was terminated.</p>
<p>Two months later the employee finally did contact the company saying he had been under treatment and wanted his job back. The company refused and the employee filed a law suit citing violations of the Family and Medical Leave Act (FMLA), and the Americans with Disabilities Act (ADA). Although he had never requested leave under the FMLA or indicated any need for assistance under the ADA, the court of appeals ruled that when the sister said he was very sick, the company had thereby been given sufficient notice that the employee needed FMLA leave and possibly needed accommodations under the ADA. The company, they felt, should have then offered the employee leave and accommodations without the employee having to request them.</p>
<p class="quote">"Our privileges can be no greater than our obligations.<br />
The protection of our rights can endure no longer<br />
than the performance of our responsibilities."<br />
- John F. Kennedy</p>
<p class="section">How <em>Not</em> To Fire An Employee</p>
<p>Lawyers representing terminated employees love an ugly, embarrassing firing the way that the personal injury lawyer loves a bad car wreck. Even when the termination is for good cause or bad performance, a bad firing can turn a jury against the company and can even be used as evidence of animosity towards the employee. Sometimes poor Managers using bad judgment over react when deciding to terminate an employee.</p>
<p>Here are a few actual cases from the files of Attorney Alan L. Rupe:</p>
<p><u>A Computer Engineer</u> took his daughter to work with him on "Take Your Daughter to Work Day." He was fired that same day with his daughter sitting beside him in the HR Manager's office and was then forcibly escorted out of the building.</p>
<p><u>A cattle feed Salesman</u>, employed for over 20 years was called late one snowy January night and instructed to drive to a city 300 miles away to discuss his sales goals for the coming year. When he arrived the next day, he was met by the HR Director, who handed him a notice of termination, which was effective immediately. The HR Director also took possession of the car. The Salesmen had to call his wife to drive through the snowstorm to come and pick him up.</p>
<p><u>Upon arriving at work</u> one Monday morning, several bank Managers and Supervisors (all over 50 years of age) were told to go to the banks large conference room for a special announcement. After waiting for over an hour, a security guard appeared with the banks HR Director, who handed each of the employees a severance agreement and a cardboard box containing all their personal items and family photographs that had been removed from their desks. The employees were then led single-file out of the building, under guard.</p>
<p class="quote">"What you do speaks so loudly<br />
that I cannot hear what you say"
- Ralph Waldo Emerson</p>
<hr />
<p style="text-align: center"><sub>© William J. Cook</sub></p>
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<span class="heading">Labor Stats</span>
<hr />
<b>Federal Minimum Wage</b>
<hr />
<p align="center">
<b>$7.25</b>/hour<br />
</p>
<hr />
<b>Average Income</b>
<hr />
<table>
<tr><td /><td class="u">October 2010</td><td class="u">October 2009</td></tr>
<tr><td class="i">Hourly</td><td class="b">$19.10</td><td class="b">$18.78 </td></tr>
<tr><td class="i">Weekly</td><td class="b">$644.11</td><td class="b">$619.74</td></tr>
</table>
<hr />
<b>Federal Povery Level</b>
<hr />
<table>
<tr><td class="i">one person</td><td class="b">$10,956</td></tr>
<tr><td class="i">family of four</td><td class="b">$21,954</td></tr>
</table>
<hr />
<b>IRS Mileage Allowance</b>
<hr />
<table>
<tr><td class="i">business</td><td><b>50</b> cents/mile</td></tr>
<tr><td class="i">medical or moving</td><td class="b">16.5</b></td></tr>
<tr><td class="i">charitable</td><td class="b">14</td></tr>
</table>
<hr />
<b>Postage</b>
<hr />
<table>
<tr><td class="i">1 oz</td><td><b>44</b> cents</td></tr>
<tr><td class="i">postcard</td><td class="b">28</td></tr>
</table>
<hr />
<b>Population</b>
<hr />
<table>
<tr><td class="i">world</td><td class="b">6.9 billion</td></tr>
<tr><td class="i">U.S.</td><td class="b">309.7 million</td></tr>
</table>
<p align="center">
<i>one birth every </i><b>7</b><i> seconds;</i><br />
<i>one death every </i><b>13</b><i> seconds;</i><br />
<i>one new immigrant every </i><b>35</b><i> seconds;</i><br />
<i>net gain of one person every </i><b>11</b><i> seconds.</i>
</p>
<hr />
<b>U.S. Civilian Workforce</b>
<hr />
<table>
<tr><td /><td class="u">October 2010</td><td class="u">October 2009</td></tr>
<tr><td class="i">Total</td><td class="b">153,904,000</td><td class="b">153,854,000</td></tr>
<tr><td class="i">Employed</td><td class="b">139,061,000</td><td class="b">138,242,000</td></tr>
<tr><td class="i">Unemployed</td><td class="b">14,843,000</td><td class="b">15,612,000</td></tr>
<tr><td class="i">Want A Job</td><td class="b">6,255,000</td><td class="b">6,032,000</td></tr>
<tr><td class="i">Unemployment Rate</td><td class="b">9.6%</td><td class="b">10.1%</td></tr>
</table>
<br /><hr />
<b>U.S. Workforce Productivity</b><br />
<sub><i>(The amount of goods produced, divided by the number of work hours it took to produce it)</i></sub>
<hr />
<table>
<tr><td class="i">1992</td><td class="b">3.7%</td></tr>
<tr><td class="i">1993</td><td class="b">0.5%</td></tr>
<tr><td class="i">1994</td><td class="b">1.3%</td></tr>
<tr><td class="i">1995</td><td class="b">0.9%</td></tr>
<tr><td class="i">1996</td><td class="b">2.5%</td></tr>
<tr><td class="i">1997</td><td class="b">2.0%</td></tr>
<tr><td class="i">1998</td><td class="b">2.6%</td></tr>
<tr><td class="i">1999</td><td class="b">3.3%</td></tr>
<tr><td class="i">2000</td><td class="b">3.4%</td></tr>
<tr><td class="i">2001</td><td class="b">2.9%</td></tr>
<tr><td class="i">2002</td><td class="b">4.6%</td></tr>
<tr><td class="i">2003</td><td class="b">3.7%</td></tr>
<tr><td class="i">2004</td><td class="b">2.8%</td></tr>
<tr><td class="i">2005</td><td class="b">1.7%</td></tr>
<tr><td class="i">2006</td><td class="b">0.9%</td></tr>
<tr><td class="i">2007</td><td class="b">1.9%</td></tr>
<tr><td class="i">2008</td><td class="b">1.8%</td></tr>
<tr><td class="i">2009</td><td class="b">+5.8%</td></tr>
<tr><td class="i">2010 1st quarter</td><td class="b">+2.8%</td></tr>
<tr><td class="i">2010 2nd quarter</td><td class="b">-1.8%</td></tr>
<tr><td class="i">2010 3rd quarter</td><td class="b">+1.9%</td></tr>
</table>
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