Critical skills shortage
What’s the risk?
Not having the right people in place ?with the skills you need to compete, ?innovate or grow can seriously hamper ?an organisation’s future.
“Look at how many companies want to grow in emerging markets,” says Conference Board’s Mary Young. “Their biggest concern is not finding the right people.”
Industries with an ageing workforce – such as oil and gas where it is predicted that 50% of the workforce will be retiring by 2015 – have even more to worry about.
Why should HR care?
As Young says: “These are things HR does all day. It’s your bread and butter.” HR probably already looks at workforce planning in terms of risk management, but now you need to translate that to the rest of the organisation.
What to do now:
Collect data and analysis that builds ?a compelling case for adding this to ?the enterprise risk map. Concentrate ?on getting it on the business’s agenda ?if it’s not there already.
Succession planning
What’s the risk?
As HR magazine explored a few ?months ago, only 32% of companies actually have a full CEO succession ?plan in place (according to SHL). ?With 43% of UK companies ?admitting to having experienced ?an unexpected change in leadership ?in the last 12 months, that’s a pretty ?big risk. Not having a future leadership plan in place can cause share prices to plummet and even leave organisations ?at risk of hostile takeover if a CEO ?leaves unexpectedly.
Why should HR care?
HR plays a critical role in leadership development and should be investing time and money in the leadership pipeline of the future. Getting involved with CEO and senior-role succession planning can also mitigate the occasional ‘old boys club’ mentality of the C-Suite.
What to do now:
“When it comes to...
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...revealed some of its products were being built by employees working in slave-labour conditions?
Why should HR care?
As Skanska’s Francis says: “No longer can companies get away with what they could – everything happens in real-time on Twitter now.” So any scandal can translate into major reputational damage, which could impact on engagement, retention and attraction of talent. Plus, any issues involving outsourcing of labour will come back to HR.
What to do now:
The Staff Wanted Initiative, a project led by the Institute for Human Rights and Business and Anti-Slavery International, advises using the SEE formula. SEE stands for scrutinise, engage, ensure. Scrutinise and monitor relationships with staff, recruitment and employment agencies; engage with the workforce to uncover any potential issues; ensure you provide ?a fit and proper workplace, whatever the location.
Globalization among companies has been increasing due to the high potential profits and the lower costs of labor and resources. Venturing to other countries, which have lower costs of lower costs of living, can support their families on lower salaries. Companies that don’t have to spend as much on salaries and benefits are a great way for the company to save money and increase their profits. When looking to other countries to expand to, they will need to review their value chain to make sure they are able to keep their same values with their expansion.
“Hr is shifting from focusing on the organisation of the business to focusing on the business of the organisation” (Zulmohd 2011). David Ulrich points out four distinctive roles of HR which makes the organisation most effective and produce competitive advantage. He planned to change the structure of HR function and build HR around roles. The four key HR roles identified by Ulrich, one HR business partner/strategic partner – aligning HR and business strategy which plays an important role in setting strategic direction. It builds strategic relationship with clients and strategically manages the development of the workforce. The second key role is administrative expert which creates and must deliver effective HR processes made to tailor business needs. It also involves managing people and HR related costs. To continue to the third key role, change agent which understands the organisations culture, and takes the responsibility to communicate those changes internally and gain its employees trust. The final key role identified by Ulrich is employee advocate which is a core in HR role represents employees and helps to improve their experience, protect employees’ interests and confirm strategic initiatives are well balanced. Employee advocates must also “ensure fair, ethical and equitable people processes and practices.” “David Ulrich’s HR Model is about defining the HR roles and
All organisations require management and management in turn, require a certain level of leadership abilities. The long-term success of an organisation depends on its ability to take advantage of the competences and knowledge of its employees. In an increasingly competitive environment, organisations must motivate its employees and encourage initiative within the organisation. This new organisational climate requires more than a traditional manager and organisations must find ways to develop leadership skills in order to increase effectiveness and to stay competitive. In any organisation leadership is often argued to be a critical factor for success or failure. It can also be said that a leader can be a manager but a manager is not always necessarily a leader (Gandz, Crossan, Seijts & Reno 2014). It is therefore vital for organisations to recognise traits and techniques that defines a success...
In the past HR job responsibilities consisted of a basic role of dealing with employees and administrative assignments. For example, human resource managers primarily concentrated on calculating personal and sick days of workers and payroll. However, times have changed many HR specialists have various roles to perform and departments to operate. Usually, these individuals must balance their enthusiasm for the workforce as well as the organization who is their employer. Nevertheless, when fresh challenges arise and organizations must implement new programs or procedures the HR manager is the first to usher in the tide of change.
...world has become extremely fast and full of change. If the leader can’t adapt to changing conditions, it is very possible for his firm to be kicked out of the game. How can the firm change, though? The most effective way is to go through new ideas. Here, it reminders me Welch’s famous saying: "Change before you have to."
You may have heard the topic raised on some morning show or another, but likely thought little of it. However, the figures are quite shocking. According to one author's research, '52 percent of skilled trades are expected to retire within the next 15 years, with 41 per cent of respondents indicating they will face a skills shortage in their industry within five years.'; (Arnold, par. 12).
With so many constant changes today with different generations, legal and political circumstances and ever-changing and improving technology sources, organizations have new and recurring issues arising every single day. The reasons for these issues vary widely and develop because of so many different situations. The outcome of the situation depends on many factors including the issue at hand, the management style and the ethics of the organization to simply name a few. These outcomes can certainly make or break an organization if not handled appropriately. The issue I have found to be the most significant is leadership. Within leadership, there is the opportunity for many issues in itself.
When organizational change proves necessary, all people at all levels of the organization should address change as a “how,” “what,” and “why” problem in order for the change to be sustained over time.
Knouse, S. B. (2005). The Future of Human Resource Management: 64 Leaders Explore the Critical HR Issues of Today and Tomorrow. 58(4), 1089-1092.
Suddenly, some companies become extremely successful, while rest of them unfortunately remains a failure. There can be off-course a lot of reasons for this failure but one of the main reasons is lack of leadership qualities. There are many s...
HR planning is the process of managing an organization’s most valuable asset- it’s people (Youssef, C.). HR planning helps place people where they fit best. Planning also helps utilize available workforce skills and talents (Youssef, C.). There are six things to consider when planning, environmental scanning, labor market forecasting and analysis, internal analysis and forecasting, gap analysis, developing HR plans and strategies and strategy implementation and assessments. Environmental scanning indicates and determines all of the surroundings environmental factors. Labor market forecast and
He also needs to be aware of competition for employees’ i.e. if the company’s employees are increasing the demand for labour or whether labour is available due to redundancies. HR planning is all about getting the right people and developing. to meet the company’s objectives. RECRUITMENT & SELECTION The HR manager needs to know when, why, and how to recruit staff.
Changing Roles. Traditionally, HR has been an administrative position-processing paperwork, benefits, hiring and firing, and compensation. However, recently HRM has moved from a traditional to a strategic role, the emphasis is on catering to the needs of consumers and workers. Before, HR was seen as the enemy and employees believed that HR’s main purpose was to protect management. Now, the position requires HRM to be more people oriented and protect their human capitol, the staff. In addition, human resource management has to be business savvy and think of themselves as strategic partners in the 21st century.
A business short of leadership often fails and has no chance of survival. An organisation with no leader is like “an army without generals”. A leader can make an organisation successful or break it depending on the skills they have. An expert in leadership warren Bennis said, on capital can borrow money and one with poor location can move to point b “A business short on leadership has little chance of survival”.
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)