1. June 26-29, 2011 Las Vegas, Nevada Empowering HR As a Strategic Business PartnerDeveloping and Implementing a Next Generation HR Strategy Mark Borys • 6.27.11 SHRM 2011 Annual Conference & Exposition

2. 2 Developing and Implementing a Next Generation HR Strategy What Do We Want As HR? We want people in our company to: Believe in the mission and strategy Feel they can trust leadership & feel leadership cares about them Be proud of our company Be excited about their work Be productive – creative, working smart, and willing to put in extra effort Trust the reward/recognition system To learn and grow Feel they have a positive impact on others and on society “EMPLOYEE ENGAGEMENT”

3. 3 Developing and Implementing a Next Generation HR Strategy Engagement Is An Outcome

4. 4 Developing and Implementing a Next Generation HR Strategy The Good News… It’s only a new word – we have been working on “engagement” for decades All things old are new again Empowerment Maslow’s Hierarchy Advantages: It is a word that is being studied, discussed, measured Helps us explain why ‘culture’ is so important and quantify impact of a strong culture “ENGAGEMENT” OFFERS A FOOTHOLD TO TAKE ACTION

5. 5 Developing and Implementing a Next Generation HR Strategy The Challenge…Many Are Not Engaged Less than half of American workers (45%) are satisfied with their jobs. Lowest since 1987. -Time magazine Companies with large numbers of dissatisfied workers experience greater absenteeism and lower productivity. Turnover 51% higher than their peer companies. -Gallup More than half of U.S. workers feel their jobs are less secure now than they were a year ago. -Gallup More employees are looking for new opportunities outside their organization than they were in 2008. -Blessing White Fewer than 1 in 3 employees worldwide (31%) are engaged. -Blessing White SINCE WHEN HAVEN’T WE FACED CHALLENGES!

6. 6 Developing and Implementing a Next Generation HR Strategy The Challenge…Part 2 Statistics alone don’t change people’s minds Most times – HR ‘arguments’ can’t either Initiatives without manager ‘engagement’ die on the vine HOW? We need to help the business reach their goals with action that brings about engaged employees

7. 7 Developing and Implementing a Next Generation HR Strategy Business Success Fulfill Employee Desires Revenue and Growth Increased profits and control of costs, increased productivity Market share/General success amongst peer companies. Gain the Creative edge over competition. High Customer Satisfaction and Advocacy

8. 8 Developing and Implementing a Next Generation HR Strategy Business Success  Fulfill Employee Desires Revenue and Growth Increased profits and control of costs, increased productivity Market share/General success amongst peer companies. Gain the Creative edge over competition. High customer satisfaction and advocacy

9. 9 Developing and Implementing a Next Generation HR Strategy Profits, Productivity & Engagement Statistics: (http://blog.allyis.com/shrm) High: Improved operating income 19%. Low: Profit declined 33%. -Towers & Watson Engagement scores in top quartile: 18% higher productivity and 16% higher profits. -Gallup Shareholder return: 19% higher than 2009 average. In low-engaged companies: 44% below average. -ISR Disengaged employees cost US companies $328 billion in 2006 (due to lack of innovation and customer service). -Gallup High: Miss 20% fewer days of work and are almost 80%more likely to be top performers. -Towers & Watson

10. 10 Developing and Implementing a Next Generation HR Strategy Theme – Get What You Give Employees behave as they are behaved towards If you want TRUST – give TRUST If you want RESPECT – give RESPECT You want connection – give information and be available You want your employees to believe in leadership and strategy – make them believable by connecting them to employees and their objectives

11. 11 Developing and Implementing a Next Generation HR Strategy What To Do? Evaluate the leadership on the ‘I view employees’ scale? How much resistance you might receive Helps determine how to relate to them Baseline to determine movement Perfect their language – know the business Set your goals and measures Start at a place of most likely success – develop and share the vision (repeatedly) Align goals, organization structure, processes, technology Recruiting is key!

12. Developing and Implementing a Next Generation HR Strategy Where To Start? Strong up/down/across communication channels Believes there is genuine interest in employee well being Believes in strategic direction Trusts leadership Respects leadership 12

13. 13 Developing and Implementing a Next Generation HR Strategy Keep In Mind… Can’t do it overnight You WILL move the organization!!! Each new success will require sustaining energy Your managers and employees are unique and therefore the solution is unique – if they change, your approach may need to. HAVE A GOAL SPEND THE ENERGY TO MAKE A DIFFERENCE

14. 14 Developing and Implementing a Next Generation HR Strategy Questions? Email: mborys@allyis.com Website: www.allyis.com Statistics: http://blog.allyis.com/shrm