The internet is flooded with articles about HR, but rarely do I find one that really makes a statement. Recently I came across one titled, “Five Ways HR Really Can Impact Business Strategy,” written by Tom Starner. The article captures the true essence HR’s role in strategy and organizational transformation, helping leaders understand the “how” and “what” of strategy. These are challenges that many business owners and executives face when attempting to scale their businesses.

Starner goes on to share that there are five essentials HR must help leadership understand in creating an effective strategy:

·   Ensure alignment around the organization’s vision and values as a solid foundation for strategy.

·   Keep culture top of mind as an enabler of strategy.

·   Help leaders clearly identify and articulate the people components of the strategy.

·   Build plans to align the organizational “levers” to support the strategy.

·   Keep employees engaged around the strategy and other changes ahead.

The article emphasizes the “people” element of business operations and the importance of ensuring employees are aligned and on board with organizational changes, goals, etc. All too many times this component is forgotten, and thus strategies to fail. You can read more about HR and strategy in the full article here.

Written by Jeremy York
​jeremy@invigoratehr.com

On July 6, 2015 the Department of Labor (DOL) announced proposed changes to the Fair Labor Standards Act, the law which outlines overtime exemptions for white collar workers. The proposed changes would extend overtime protections to nearly five million workers within its first year of implementation, making many positons which are currently considered overtime exempt under the act, nonexempt and eligible for overtime. This proposed change could be a costly one for employers, especially nonprofits that already operate on slim budgets.

One of the proposed changes to the current law includes raising the salary minimum of exempt status from its current $455 per week ($23,660 per year) to $970 per week (50,440 per year). This means that in most all cases an employee would need to earn at least $50,440 per year to qualify for exempt status, ineligible for overtime, under the proposed rules. Exceptions to this may include outside sales, teachers, doctors, and lawyers; however, for most general business positions this rule would apply. 

Another proposed change is related to the performance of the primary duties of the job. Currently, there is no specific time an employee has to spend on performing the primary duties of his or her job to qualify as exempt—it is to be used as a guide but it is not determinative. The proposed rule specifies that an employee must spend 50 percent or more of his or her time performing the primary duties of the job to qualify for the overtime exemption. This is a rule currently in place in California and the DOL seeks to adopt it.

Human resource strategy, also referred to as people strategy, is just as important as an organization’s financial, operational, and business development strategies, because a company needs people to achieve its business goals.

Human resources are an integral part of any business, but many times it is one function that falls by the wayside The problem in addressing an organization’s human resource needs often lies in the lack of time, resources or expertise within a company. Many organizations do not have the resources to dedicate a staff member to the HR function, and require employees to assume the tasks. As an add-on, that limits time that can be spent focusing on HR.

Luckily there is a solution -- HR outsourcing. HR outsourcing can provide the human resources support and expertise that organizations need to help drive business.According to the Society for Human Resource Management (SHRM), companies outsource HR in order:

• to save money -- realizing cost savings through efficiency
  
• to focus on strategy -- aligning people with mission, vision, values,
  
• to improve compliance -- reducing risks through expertise; and 
  
• because there is no in-house HR experience -- acquiring an expert to lead the way. 
  

HR outsourcing can also help organizations improve accuracy, increasing quality by lessening workloads and by gaining technology advances that they may not have otherwise been able to afford. All can help the organization drive a better bottom-line.

The most common outsourced HR functions identified by SHRM include both transactional and strategic tasks such as payroll administration, employee benefit administration, training and 

Do your employees receive enough recognition for their work? Most business owners and managers answer this question by responding as YES. However, according to Gallup’s “How Full is Your Bucket? Positive strategies for Work and Life,” the number-one reason most Americans leave their jobs is that they don’t feel appreciated. In fact, 65% of people surveyed said they received no recognition for good work.

Many times employee recognition programs are passed over because leaders feel there are just “fluff” or are “too touchy-feely,” not yielding any actual benefit for the costs of such programs. According to World at Work, only 46% of senior managers view recognition programs as an investment rather than an expense. Yet, we know that employee recognition and engagement do have hard dollar costs related to turnover, productivity, quality, etc. Companies with employee recognition programs reported a mean employee turnover rate that is 23.4% lower than companies without any recognition program (SHRM/Globoforce Employee Recognition Survey, 2012). Replacing employees can cost as much as two to three times their salaries, when factoring in recruitment, training, and lost productivity costs. Lower turnover means less dollars spent on these items and more money spent on investing in the business.

Employee recognition programs recognize and promote positive behaviors that support employees in achieving an organization’s mission and strategic objectives by helping to create a culture of mutual trust, respect, and dedication. They provide organizations with the ability to provide timely recognition to employees based on the significance of their contribution—supporting the mission, living the values, going above and beyond, suggesting innovative ideas, etc. These are all behaviors that link to satisfaction and hard costs. In SHRM’s 2012 Employee Recognition Survey, organizations with strategic recognition programs in place exhibited 28.6% lower frustration levels than companies without recognition programs. When employees feel good about what they do and who they work for, their productivity and quality of work improves—all which affect the bottom line of the business.

So, do your employees receive enough recognition at work? This is a question to ask yourself as a business owner or manager. If you do not have a formal recognition program, you may want to consider the implications such a program could have on your business. If you do have a program, you may want to evaluate its effectiveness—is it doing what it should? Either way, an employee recognition program can help you increase employee engagement and positively affect your profits. And don’t forget…you’re doing a great job!

Written by Jeremy York
​jeremy@invigoratehr.com

When managers are asked to scale down their budgets, one of the first line items cut is employee training and development. This is especially true in lean organizations where funds are carefully allocated and the focus is on the “here and now”—what must we do today to get the work completed now. And thus, training and development is axed. What is unfortunate about this reality is that it neglects to consider the costs associated with forgoing employee development—the negative financial impact on the “here and now” and the long run.

I recently stumbled across a Harvard Business Review article titled “Why Top Young Managers Are in a Nonstop Job Hunt” discussing why employees are exiting organizations. The article noted that many top performing employees are not receiving the training and career development they want in order to help them grow their skillsets, causing them to look for other employers that provide such support. The article stated:

“Dissatisfaction with some employee-development efforts appears to fuel many early exits.  We asked young managers what their employers do to help them grow in their jobs and what they’d like their employers to do, and found some large gaps.  Workers reported that companies generally satisfy their needs for on-the-job development and that they value these opportunities, which include high-visibility positions and significant increases in responsibility.   But they’re not getting much in the way of formal development, such as training, mentoring and coaching – things they also value highly.”

Losing a key employee or even multiple employees can be devastating to the achievement of strategic