Title: Future Trends in Human Resources In Todays Global And Depressed Economy
1Future Trends in Human ResourcesIn Todays
Global (And Depressed) Economy
- KEN MOORE, M.S.
- Adjunct Professor, SUNY- Albany
- 518-374-1050 kmoore01_at_nycap.rr.com
2TODAYS PROGRAM
- Future Trends in Human Capital
- Four Generations Working Together
- Linking Human Resources and Corporate Financial
Performance
3IMPROVING YOUR BUSINESS LITERACY
- Finance
- Business
- Core discipline
- People
4What Business Issues Are Affecting Trends?
- Domestic Global Economy
- Cost of Doing Business
- Politics
- Legal
- Technology
- Generational
- Others???
5Goals
- Non - Financial Financial
- Literacy Literacy
6THREE H.R. TRENDS(As seen by Investor
Customer Employee)
- Interdependency
- Business Strategy Partnership
- Talent Management
7Trend 1Interdependency
- ISSUES
- Silo elimination Virtual management
- Twice the work Complexity
- Ambiguity KSAs - Teams
8TREND 2Business Strategy Partnership
- Outcome orientation
- Understanding the business
- Financial literacy
- Operational transparency analysis
9TREND 3Talent Management
- Issues- Shifting Needs - Challenges
10Trend 3Talent Management
- Attract
- Hire
- Develop
- Retain
- Support
- Fire
-
11Trend 3Talent Management Issues
- Older Workers
- Generational differences
- Virtual work Virtual management
- Job design options (FT, PT, Shared)
- Child elder care costs (FMLA)
- Freelance consulting / contracting
- Identifying KSA weakness shortages
12Trend 3Talent Management
- Shifting Needs of Talent
- Generational differences
- 9 5 vs. 24/7 mindset
- Work life balance
- Global workforce differences
- Career and KSA development opportunities
13Trend 3Talent Management
- CHALLENGES
- Workforce Analysis KSA development
- (Ex. Soft vs. hard skills)
- ROI metrics on One size management
- Human Capital does not fit all
-
- Virtual Participative
- Management decision making
14TREND SUMMARY
- Focus is on organizational success
- Being a business partner / ally
- Managing talent wisely
- Embracing proactive
- change
- Financial business
- literacy
- 5. Focus on what matters
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16Four Generations
- RECIPE FOR CONFLICT
- RECIPE FOR OPPORTUNITY
- Presented by
- Ken Moore
- 518-374-1050
- kmoore01_at_nycap.rr.com
17FOUR GENERATIONS
- Veterans 1925 1946
- Baby Boomers 1946 1964
- Generation X 1965 1985
- Generation Y 1985 2000
18SOCIAL BUSINESS ISSUES
- Age discrimination
- Pensions health care
- Business forecasting
- Corporate social responsibility
- Transparency of operations
- Shifting demographics
- Worldwide change (e.g. elder care)
19VETERANS
- lt 1925 1946
- a.k.a.
- Silent Traditionalist
- Seniors Loyalists
20VeteranInfluences
- Depression / New Deal
- World War Two Cold War
- Post-W.W. II US dominance
- G.I. Bill Levittown
- Organization Man (Grey Flannel Suit)
- GM vs. USA
- Big band music
21Veteran Accomplishments
- Durable national infrastructure
- Won World War II
- Landed men on the moon
- Miracle vaccines (polio, tetanus, TB)
- The best and the brightest
22VeteransDominant Work Values
- Loyalty / Hard work
- Respect authority / Adherence to rules
- Commitment / Patriotism
- Patience / Clearly defined gender roles
- Doing without / Faith in institutions
23Veterans Personality
- Consistency Uniformity (TV dinners, Holiday
Inns, McDonalds) - Conformers Dont rock the boat
- Definitive sense of right wrong
- Clearly defined gender roles
- Conservative / Cash not credit
- Traditionalist Uncomfortable with
transparency / touchy-feely
24Baby Boomer 1946 1964(78 million)
- INFLUENCES
- Television / Drugs
- Civil Rights / Sexual revolution
- Viet Nam / Watergate
- Political assassinations
- Challenges to authority
- Rejection of the status quo
- Beatles Hendrix - Woodstock
25Baby BoomerAccomplishments
- Equality
- Civil rights
- Social growth
- Technology
- New Frontier
26Baby BoomersCore Values
- Optimism Idealism
- Personal immediate gratification
- Look out for 1
- Material success
- Personal growth loyalty to career
- Youth dislike of authority
27Baby Boomers Personality
- Growth Expansion New Frontier
- Stars of the show focus on them
- Teamwork Collaborate cooperate
- Personal gratification recognition (atta boy
atta girl) - Material vs. spiritual fulfillment
28Generation X(46 million)
- 1964 1985
- Xers Gen X
- Invisibles Lost
- Slackers Baby Busters
29Generation X Influences
- Globalization / End of Cold War
- Two-career parents / High rate of divorce
- Computers Technology
- MTV AIDS
- Mass layoffs / Corporate mergers
- Watergate / Nixon resignation
- Three Mile Island / John Lennon
- Oil crisis / Iran hostages
30Generation XAccomplishments
- IPOD / Blogs / Nintendo
- Google / Yahoo
- Jump starting Internet
- Gulf War 1
- Full ethnic integration
31Generation XDominant Work Values
- Skepticism
- Superficial / Independent
- Global knowledge / Local ignorance
- Work - life balance
- Informality / Flexibility
- Corporate Social Responsibility
- Observe, but not participate
32GEN X PERSONALITY
- Self-reliant Latch-key kids
- Searching for surrogate families
- Desire for work life balance
- Like informality Matrix vs. Hierarchy
- W.I.I.F.M.
33Generation Y1985 2000
- (35 million)
- Cyber
- Millennials
- Nexters
- Internet
34Generation Y Influences
- Technology Diversity
- 9-11 / War on terrorism
- Gangs Violence / Columbine
- Globalization / Flattening of the world
- Dotcom bubble burst
- Sense of entitlement / Impatience
- Soccer moms / Play dates
35Generation Y Current Core Values
- Optimism / Realism
- Autonomy / Empowerment
- Techno-savvy
- Street smart
- Transparency of work
- Nomadic
36Within the OrganizationDos
- Focus on the business plan
- Embrace diversity
- Accept change
- Answer the Why
- Develop flexibility
- Go back to school
- Focus on what matters
37Within the OrganizationDont
- Stereotype
- Assume we all think react alike
- Be arrogant in your way
- Assume you are more important and
- have more wisdom than them
- Lose sight of why the company exists
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39Linking Human Resources and Corporate Financial
Performance
- Presented by
- Ken Moore
- President, Ken Moore Associates
- kmoore01_at_nycap.rr.com
- 518-374-1050
- www.kenmooreassociates.com
40SUPPOSE YOU HAD ANINDIVIDUAL WHO COULD
- Increase your profit
- margins
- Lower your cost
- of goods sold
- Improve your P/E ratio
- Generate significant
- competitive advantage
-
- AND
41 - Deliver flawless H.R. work
42CEO Responses
- OLD - Why are you wasting your time in H.R.
- NEW - Why didnt I demand this level of
performance from H.R. 5 years ago
43CREATING THE PERFECT H.R. WORLD
- SUPERIOR PROFITABLE
- TRANSACTIONAL BUSINESS
- SKILLS PARTNERSHIP
-
-
44Transactional / OperationalH.R. Perfection
Seeks
- Efficiency
- Standardization
- Data base systems
- Compliance
- Comprehensive, specialized knowledge
45A Business Partnership Requires HR To Be
- Profitability Direction
- Productivity/Efficiency Focus
- Competitive Advantage
- Operational Sustainability
- Performance Outcome Oriented
46ECONOMIC ISSUESAFFECTING H.R. STRATEGY
- Health care pensions
- Recession energy
- Too big to fail? too big to run?
- Government activism
- Bailouts Stimulus - Taxes
- Corporate re-thinks
- Mergers Acquisitions Chapter 11
47Transactional / OperationalH.R. Perfection
Seeks
- Efficiency
- Standardization
- Data base systems
- Compliance
- Comprehensive, specialized knowledge
48Enhancing Our Professional Literacy Skill Sets
49WHY FINANCIAL INTELLIGENCE ? ? ?
- The language of business is Finance
- The ability to critically evaluate company
performance leading to enhanced HR decisions - (W.I.I.F.M.) - Career enhancement
50ROADBLOCKS TO FINANCIAL INTELLIGENCE
- I hate math
- Not my job
- Accounting finance departments hold on too
tightly to the information - Executive level discomfort with financial
transparency
51Current Financial Metrics in HR
- Revenue per FTE/HRE
- Cost per hire
- Turnover costs
- Workers compensation costs
- Benefit costs as a of payroll
- 401k match?
- Bonuses, raises, ESOP?
52Keys to HR Financial Literacy
53THE FINANCIAL FOUR
- Cash management
- Debt management
- Asset management
- Profit, equity share value management
54In your home
- Checking/savings account money in your
wallet/purse - CDs? - (Cash Management)
- Mortgage, credit cards, student
- loans, car loans, etc?
- (Debt Management)
- Home improvements IRS deductions (Asset
Management)
55Profit, Equity Share Value
- Do you have money left over at the end of the
month (profit)? - Do you have more month left over at the end of
the money (loss)?
56Basic Financial Statements
- BALANCE SHEET
- INCOME STATEMENT
- STATEMENT OF CASH FLOW
57Balance Sheet
- Assets Liabilities Equity
- (Assets Liabilities) Equity
- (Assets Equity) Liabilities
- Assets What you own
- Liabilities What you owe
- Equity Whats left over
58Income Statement
-
- Revenue (What you earned)
- minus
- Expenses (What you spent)
-
- Net Income (Your profit (loss)
59STATEMENTS OF CASH FLOW
- Cash flow from operating activities
- Cash flow from investing activities
- Cash flow from financing activities
- Where did the money come from?
- Where did it go?
60Net profit marginPepsiCo
- 2008 2007
- Net income _____ _____
- divided by
- Total revenue/sales _____ _____
- Profit margin _____ _____
61Net Profit Margin - Pepsi
- 2008 2007
- Net Income 5,142 5,658
- divided by
- Revenue/Sales 43,251 39,474
- Ratio 11.9 14.3
- Is my company profitable? Y / N
- Is PM going in right direction? Y / N
- Rating (poor) 1 2 3 4 5 (excellent)
62Comparative Net Profit Margins
- 2008
- PEP KO
- Net Income / 5,124 5,807
- Revenue (Sales) 43,251 31,944
- Ratio 11.9 18.2
- Pepsi Rating (poor) 1 2 3 4 5 (excellent)
63PROFIT MARGIN IMPACT ON HUMAN RESOURCES
- If profit margins increase
- 401(k) match level
- Salary benefits improvements
- Investment in PPE (staffing, training, etc.)
- If profit margins decrease
- Layoffs closings
- Reduced spending
- Pressures on costs (do more with less)
- Restructuring
64Human Resources Impact on Profit Margin
- Revenue enhancement
- Low turnover Appropriate KSAs
- Efficiencies Partnership
- Business plan focus
- Costs
- Labor Benefits Payroll
- Compliance Turnover Green
65ACCOUNTS RECEIVABLE TURNOVER
- 2008 2007
- Gross Revenue _____ _____
- divided by
- Accts. Receivable _____ _____
-
- Quotient _____ _____
- 365 / quotient _____ _____
- Your evaluation
- (poor) 1 2 3 4 5 (excellent)
66Accounts Receivable Turnover(PepsiCo)
- 2008 2007
-
- Gross Revenue / 43,251 39,474
- Accts Receivable 4,683 4,389
- Quotient 9.24 8.99
- 365 / Quotient 39.5 days 40.9 days
- Rating (poor) 1 2 3 4 5 (excellent)
67Accounts Receivable Comparison Turnover
- PEP KO DPS
- R 43,251 31,944 5,710
- AR 4,683 3,090 676
- Q 9.24 9.67 11.8
- 365
- A.R.T. 39.5 37.7 30.9
- Rating (poor) 1 2 3 4 5 (excellent)
68Average Collection Period Impact on Human
Resources
- Better
- Improved cash flow for spending
- Better interest rates for borrowing
- Business stability
- Worse
- Value chain weakness
- Additional pressure on credit staff
- Performance evaluation and decisions
69EFFECIENCY RATIO(Banks)
- Non-interest expenses / Interest income
- other income
- KEYCORP TRUSTCO
- 2007 0.654 (34.6) 0.469 (53.1)
- 2008 0.836 (16.4) 0.527 (47.3)
- Rating (Poor) 1 2 3 4 5 (Excellent)
70EFFICIENCY RATIO IMPACTON HUMAN RESOURCES
- Customer satisfaction
- Staffing levels
- Layoffs branch closings
- Technology (ATMs, online banking)
- Energy
- Sales marketing
- Bank business strategies
71CURRENT RATIO
- PEPSICO
- 2008 2007
- Current Assets 10,806 10,151
- divided by
- Current Liabilities 8,787 7,753
- Current Ratio 1.23 1.31
72FUN WITH NUMBERSOIL - 2008
-
- SUN HES CVX
- Net Income 776 2,360 23,931
- Revenue 54,146 41,209 273,005
- Profit Margin 1.43 5.72 8.77
- TOT XOM BP
- Net Income 19,936 45,220 21,169
- Revenue 233,826 477,359 284,265
- Profit Margin 5.53 9.47 7.44
- AVG (1.435.728.775.539.477.44) / 6 6.39
73FUN WITH NUMBERSINSURANCE - 2008
- HIG AET MET
- Net Income (2,749) 1,831 3,209
- Revenue 9,219 26,600 50,989
- Profit Margin -29.8 6.88 6.29
- PRU CI UNH
- Net Income (1,073) 292 2,977
- Revenue 29,275 19,101 81,186
- Profit Margin -3.66 1.53 3.66
- AVG (-29.8 6.886.29-3.661.533.66) / 6
1.29
74Profit MarginFun With Numbers - 2008
- XOM MCD MSFT GD
- N.I. 45,220 4,313 17,681 2,459
- R 477,359 23,522 60,420 29,300
- P.M. 9.47 18.3 29.2 8.39
- AET RAI WMT IHG
- N.I. 1,831 1,308 12,731 262
- R 26,600 9,023 378,799 1,854
- P.M. 6.88 14.2 3.36 14.1
- Oil company average 6.39
- Insurance company average 1.29
75WHAT HUMAN RESOURCESCAN DO
- Create sustain a learning environment
- Argue and demonstrate financial business
literacy as competitive advantage - Plan budget for employee development
- Promote continuing education programs
- How-to books CDs
- AMA SHRM courses
- On-line programs
- Internal external program experts
- Association program tutorials
76HR INITIATIVE
- Link all HR work to support the companys value
chain - as seen by the stakeholders - Eliminate the Silo mentality within the
organization - And
77RELAX HAVE FUN