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H9-19p02_ADP.indd 2 8/5/2019 2:42:51 PM

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Please contact Arianna Talan at 212.886.4100 with any questions regarding these materials. This advertisement was prepared by Havas Worldwide NY at 200 Hudson Street, New York, NY 10013. Human Resource­ ® September 2019 Executıve COVER STORY Health & Benefits Executive Comp HR Leadership Prescription for The Upward Trend Learning by Example 30 McDonald’s New Golden Age Savings 25 Continues 28 BY JULIE COOK RAMIREZ BY ANDREW R. MCILVAINE BY JULIE COOK RAMIREZ BY JEN COLLETTA L&D leaders are playing increasingly Just four years ago, things were trending downward at fast- Specialty drugs account Philippe Krakowsky, executive pivotal roles in the success or failure food giant McDonald’s. Now, the company is enjoying rising for just 1% to 2% of vice president and chief of their organizations, prompting sales, profits and stock prices—and HR is chief among the prescriptions, but more strategy and talent officer, efforts to align L&D with the players credited with that turnaround. From culture change to than 40% of total U.S. drug chairman and chief executive organizational strategy. Several organizational restructuring, Chief People Officer David Fairhust spend—and that figure is officer of IPG Mediabrands companies weigh in on how they’re shares the company’s recent recipe for success. Page 14 projected to rise to 50% at the Interpublic Group of arming their L&D leaders for this by 2020, prompting many Companies Inc., topped the new business reality. HR Tech employers to go into panic list of the 50 highest-paid Driving HR-Tech Adoption 18 mode. Several organizations HR executives in 2018. As a Talent Management have employed specialty- group, the top earners brought BY TOM STARNER drug strategies to get a in 11.6% more than in 2017, Keeping Your Finger on the Employers are expected to keep ramping up their spend handle on costs, while still marking the second year in a Pulse of Engagement 36 on HR technology—but, once they buy (or build) it, how can helping their employees stay row that overall compensation BY LARRY STEVENS organizations ensure the workforce actually uses the new healthy. increased. As the employee experience takes technology? Several employers and experts share their takes center stage, many organizations on best practices for increasing HR-tech adoption. Also in this are moving to pulse surveys to section, HR Tech Influencers make the case for investment in this ensure they know what their space, while we also look back at a highlight of HR Tech China. workforce is looking for from the Columnist Josh Bersin explores some easy ways to kill trust with employer—leading to new survey technology misfires, and Jason Averbook looks at how HR can tools on the market. build the best possible employee experience. 18 28 36

30

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HR Trends 8 HR Leadership 25 6 Roles to Put On Your Radar 5 By the Numbers 39 Talent Management

HUMAN RESOURCE EXECUTIVE® Magazine (ISSN 1040-0443 USPS 002-565) is published monthly with combined issues Why Millennials Aren’t That Different 5 for January/February and July/August by LRP Magazine Group, an LRP Media Group Company, Suite 500, 747 Dresher Rd., Horsham, PA 19044, (215) 784-0910. Periodicals postage paid at Horsham, PA and additional mailing office. Single Inside HR Tech copy price: $8.95. Subscription rates: In U.S., $94.95 for one year; $138.95 for two years; $180.95 for three years. In Canada and Mexico, $106.95 for one year; $169.95 for two years; $222.95 for three years (U.S. currency). In all other How Tech Can Combat Talent Shortages 6 foreign countries, $138.95 for one year; $222.95 for two years; $307.95 for three years (U.S. currency; prices include air mail delivery). For subscription information, call 1-800-386-4176 or FAX to (215) 784-0317. POSTMASTER: Send address changes to: HUMAN RESOURCE EXECUTIVE, PO Box 2132, Skokie, IL 60076. Emerging Intelligence Why HR is Becoming a Science 6

September 2019 3

H9-19p03_TOC.indd 3 8/9/2019 10:47:44 AM Edıtorıal Welcome HRE’s New Editor

A few personal details about me: that increasingly became vital in the this space. I’ll be taking you up on You can call me Elizabeth or Liz. I’m industry. those offers. Keep them coming, married and live in a quirky town Still, it’s only been in the past few especially if you don’t mind a few called Lake Worth Beach, Fla., with my months that I’ve spent much time inevitable dumb questions. And let me husband, a fellow journalist, and two thinking in-depth about that term: know who else I should meet, what teenagers. I joined the HRE team from human resources. That’s the new and events I should attend, whose podcasts the world of daily journalism in South interesting part of this job and of this I must listen to and what I’ve got to Florida—a hotbed of news even before publication: that intersection of people read. the election of our part-time neighbor and work, where we all spend so much It will take some time. Luckily, the President Trump. Most recently, I was of our time, our energy and, if we’re experienced staff here are expertly editor of the Palm Beach Daily News, lucky, our passion. leading the way through the transition. a community newspaper and website What that means is that I’ll be I also have two other HRE newbies t’s been several weeks since I serving the small, oceanfront town of editing and guiding coverage about with me on this learning curve: joined Human Resource Executive®, Palm Beach. those subjects that matter most to My boss, Tim Burke, senior vice and now that I’ve met most of my Before that, I spent many years you as HR executives leading your president/publisher of HR products, colleagues and can find the coffee as a reporter and an editor, including companies into the future. We’re and Kathryn Mayer, benefits editor and mostly work our website, it’s five years as a sports writer for the working for you, digging into such key and chair of the Health & Benefits time that I introduce myself to you, Palm Beach Post. As a newsroom topics as talent acquisition, technology, Leadership Conference, also have our HRE readers. manager for the past six years, I spent and health and benefits to provide joined the team in the past few months. I’m thrilled to say hello. And a small percentage of my time on HR information and insight—and that’s the I hope to meet many of you soon, II’m eager to hear from you about the concerns—primarily performance essence of journalism, no matter the either virtually or in person, maybe content we’re delivering and how we management, recruiting and retention, publication. during HR Tech this fall in Las Vegas. can change or improve it to better diversity and inclusion, and training If we’re doing our jobs well, we’ll Until then, please contact me with serve you. As you know, I will never be and development. In that time, I do more than tell your stories. We your suggestions for HR Executive—or able to replace editor emeritus Dave experienced the sometimes-painful will help you solve problems. We will anything else on the subject of the Shadovitz, but I’m honored to take the transitions from paper forms to online recognize your achievements. We will people, tools, themes, challenges and reins into the future. tools and HR-technology systems understand your challenges, maybe ever-changing technology of human before you do, and help you steer resources. around them. We’ll be here doing You can reach me at eclarke@lrp. what we love in hopes of helping you com; on Twitter @LizClarke92; or on do your jobs better, no matter what LinkedIn. Quoteworthy part of the market you’re in. Over the coming months, that will mean “Business acumen is a key skill you don’t typically think about L&D a growing connection between our leaders having or needing but, as I talk to business leaders, it’s what print magazine, our digital content and they crave.” our related conferences, as all three complement each other in providing Elizabeth Clarke —Michael McGowan, managing director and practice leader of you vital information and tools. Executive editor leadership and talent at BPI Group First, I’ve got a lot to learn. I’m Page 30 grateful to those of you who have already offered to help me understand

Human Resource ® Executıve VOLUME 33, NUMBER 7 HUMAN RESOURCE EXECUTIVE® Magazine Kenneth F. Kahn PRODUCTION/AD SERVICES CIRCULATION All other written correspondence to: is designed to provide accurate and President Customer Service Department authoritative information in regard to the Nancy Sicilia Christopher Martin Human Resource Executive Magazine subject matter covered. It is published with Timothy D. Burke Production Manager Business Director, Magazine Group Senior Vice President/Publisher, P. O. Box 2132 the understanding that the publisher is not HR Products Suzanne Shultz Skokie, IL 60076 engaged in providing legal, accounting or other professional services. If legal advice Assistant Production Manager ADVERTISING HEADQUARTERS Elizabeth Clarke or other expertise is required, the services Executive Editor GRAPHIC SERVICES of a competent professional person should Tim Jordan be sought. The publishers have taken all David Shadovitz Associate Publisher reasonable steps to verify the accuracy Lugene Moyer Ste. 500, 747 Dresher Rd. Editor Emeritus Publishing Technology Manager and completeness of information contained Horsham, PA 19044 in HUMAN RESOURCE EXECUTIVE®. The Rebecca McKenna Jill Murphy (215) 784-0910, ext. 6550 publisher may not, however, be held Vice President Global Events and Graphic Specialist [email protected] responsible for any inaccuracies or omission Publisher of information in any article appearing in Linda Dickson Amy Olimpo HUMAN RESOURCE EXECUTIVE®. Jen Colletta Senior Graphic Designer Regional Sales Manager Managing Editor (215) 784-0910, ext. 6365 Entire contents Copyright © 2019, HUMAN Sue Casper [email protected] RESOURCE EXECUTIVE®. All rights reserved. Andrew R. McIlvaine Art Consultant Senior Editor Joe Kirschen Material in this publication may not be reproduced in any form without written MARKETING Regional Sales Manager LRP CORPORATE EXECUTIVES Michael J. O’Brien (215) 784-0910, ext. 6295 permission. Authorization to photocopy Web Editor/Staff Writer items for internal or personal use, or the Patrick Boyle [email protected] Kenneth F. Kahn Marketing Art Director internal or personal use of specific clients, Terri Garrison President is granted by LRP Magazine Group, provided Administrative Assistant DIRECT RESPONSE For subscription information, Todd Lutz that the base fee of US$10.00 per document, Chief Financial Officer plus US$5.25 per page is paid directly to Steve Boese, Peter Cappelli, please call (800) 386-4176, email Copyright Clearance Center, 222 Rosewood Worldata [email protected], Carol Harnett, William M. Kutik, Timothy D. Burke Drive, Danvers, MA 01923, USA. For those List Sales or fax to (215) 784-0317. Eva Sage-Gavin, Carol Patton, (561) 393-8200 or Senior Vice President/Publisher, organizations that have been granted a Paul Salvatore, Julie Cook Ramirez (800) 331-8102 HR Products photocopy license by CCC, a separate system Contributing Editors, Columnists Send payments to: of payment has been arranged. The fee code and Writers Michele Garville LRP Media Group for users of the Transactional Reporting Digital Media Operations Specialist 360 Hiatt Drive Service is: 1040-0443/19/$10.00+$5.25. Sharon Staehle (215) 784-0910, ext. 6386 Dept. 150F Program Manager, Media & [email protected] Marketing Palm Beach Gardens, FL 33418

4 Human Resource Executive®

H9-19p04_Editorial_Masthead.indd 4 8/16/2019 11:05:34 AM Hiring for Growth While Building a High-Performance Organization

Today’s very low unemployment rate, combined with an emerging need for harder- to-find “soft skills,” is challenging employers in their desire to source, hire and develop the right people required to drive a company’s ongoing growth objectives.

BY TOM STARNER

Special Advertising Supplement Sponsored By

H09-19pA1-A8_OracleSupp.indd 1 7/16/2019 3:23:53 PM Hiring for Growth While Building a High-Performance Organization

nder the best of Pamela Stroko, Vice president of HCM circumstances, Transformation at Oracle, says the ongoing skills strengthening gap is challenging HR professionals at every turn, U especially when they are tasked with providing the a workforce that reflects an necessary talent to spur growth under today’s trying employer’s true business values, conditions. culture and growth objectives while “There are two questions that everybody in HR is asking,” Stroko says. “First, people want to know if filling critical talent needs represents the skills gap is a real thing. Then, if it is real—and a challenge. the data says it is—the second question is, how do But with today’s historically low unemployment you hire to support growth with a widening skills rates and ongoing skills gap, the formidable task of gap? These conversations are happening every day recruiting and retaining talent with the required skills within HR.” to drive growth is even more difficult. In fact, the Today’s job candidates can ask for things in this widening skills gap accompanying full unemployment economy they couldn’t ask for just 10 years ago, Stroko numbers (3.7% in the U.S.1) deliver a one-two blow adds. to employers. Weathering the current storm requires “People are also much more willing to take a risk innovative thinking and technology to fill talent needs and ‘try something on’ or go to a company maybe they through well-stocked pipelines, which, in turn, will lead always thought about working for because there’s so to optimized productivity and the desired increases in much opportunity,” she says. “There is a mindset out business growth. there—be it right or wrong—that, if I try it and I don’t Research shows that the skills gap is not only like it, I can just go get something else. very real, it’s reaching serious proportions. The “It’s shopping; but, in this case, they’re job Society for Human Resource Management’s survey shopping,” she says. of 1,028 HR professionals in late 2018 found that an eye-opening 83% say they had difficulty recruiting Hiring for Emotional Intelligence: suitable candidates in the past 12 months.2 And a Finding Soft Skills separate study found that 70% of HR professionals are Keeping talent pipelines filled with the right experiencing a skills shortage among applicants—with candidates to meet emerging business challenges has even the minority who reported an abundance of prompted employers to shift needs and requirements applicants stating that those who apply do not have from technical skill sets being the number one priority the requisite skills.3 to candidates with so-called “soft skills,” including Today, that widening skills gap—which, in most characteristics like emotional intelligence, clear cases, involves the emotional intelligence and soft communications, critical thinking, problem solving, skills required to build a workforce that can drive innovation, desire/willingness to learn, teamwork and productivity, deliver financial success and boost creativity. employer brand—is creating perhaps the most hard-to- Stroko confirms that the notion of soft skills not solve talent-acquisition and retention landscape ever being on equal footing with technical skills no longer across the globe. holds true.

1 Bureau of Labor Statistics, June 2019 2 SHRM, Skills Shortage Tightens Job Market; 83% of HR Professionals Report Difficulty Recruiting: SHRM Research, February 2019 3 Challenger, Gray and Christmas Inc., Challenger Hiring Survey: Employers Report Skills Shortages; HR in Demand, June 2019

A2 Human Resource Executive®

H09-19pA1-A8_OracleSupp.indd 2 7/16/2019 3:27:05 PM “Soft skills are now the a variety of options in terms of sourcing, but also hard skills,” Stroko notes. develop relationships with and learn about the talent. “They’re actually some “If you’re trying to find talent that fits with of the hardest factors your culture and your business values and growth to hire for because objectives, you need that time to engage with that those skills are not candidate pool to be able to identify candidates in great supply in who are going to be a good fit on all fronts,” she the marketplace. says. Things like Tucker says that this includes being: emotional intelligence, • Proactive—It takes planning to build a diverse and how it aligns slate of candidates with the potential to be with an organization’s high performers in a given organization, with culture, values and its unique set of values and ways of working. growth plans, are very This means starting the sourcing process well important.” before a requisition is submitted. According to Wendy Lynch, • Flexible—To expand the candidate pool, founder of Lynch Consulting Ltd. and co-author of Get recruiters need to think broadly and creatively to What Matters: Tools to Transform Conversations at regarding potential sources of candidates. Work and co-founder of The Heart of Human Capital Both HR and hiring managers need to be blog, employers have made the mistake of discounting open to different types of employees, such very important foundational attributes by even calling as contract, part-time, job-share and remote them soft skills in the first place. workers, as well as internal talent and passive “We don’t have a great connotation for the word candidates. ‘soft’ when it comes to skill sets,” Lynch says. “We • Predictive—Being open to new sources of imply that the real skills are the other things, like what candidates is important, but organizations someone has learned in school or with experience that should, at the same time, use the data they they’ve had in the workplace. But that’s simply untrue, have on previous hires to predict which especially with the changes happening in today’s sources of talent are most likely to result in business landscape. Soft skills now are in demand, but high-performing employees. are hard to find.” Oracle’s Stroko concurs, explaining that employers need to start thinking about external pipelines well Sourcing Diverse Talent Pipelines that before they need to fill a job. She also suggests an Fit Your Culture, Business Values effective but low-tech networking strategy as a way How do employers today match up talent needs to get external high performers interested in a with their culture, values and growth objectives, while company. landing and keeping employees who have those much- “I often tell people that every single desired soft skills? executive at your company needs to go to Elissa Tucker, principal research lead of HCM at some conference somewhere for some the American Productivity & Quality Center—which reason every year,” Stroko says. “While partners with 500 employers globally in benchmarking, they’re away, have them go out of best practices, process and performance improvement, their way to meet people, take and knowledge management—says that outcome will down names of those who only happen for employers that take the time to pursue impress them.”

H09-19pA1-A8_OracleSupp.indd 3 7/16/2019 3:27:36 PM That feeling when… Everything just comes together

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H09-19pA1-A8_OracleSupp.indd 4 7/18/2019 1:19:34 PM That feeling when… Everything just comes together

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H09-19pA1-A8_OracleSupp.indd 5 7/18/2019 1:19:54 PM Hiring for Growth While Building a High-Performance Organization

Next, those executives promotions and look for ways to reskill and upskill should build their social presence existing employees.” with those connections, because Technology plays an increasingly important role in every person they meet can be put employee retention and internal mobility—using career- into an employer’s recruiting system, development, learning and succession-planning tools which will likely be a key factor in keeping to hire from within. By doing that, employers with rapid up with growth objectives. growth expectations—situations that create a steep “They could be a potential job candidate at learning curve for both new hires and internal talent some future date, or could know somebody who transfers—can keep pace with the speed that can cause could be a potential candidate,” she says. “You have a whiplash effect during rapid-growth scenarios. to get much more thoughtful about this.” Tucker offers the following example of a Stroko is convinced that hiring is no longer a cause- large technology employer, which created these and-effect proposition. opportunities to foster hiring from within to keep pace “It’s not, ‘There is an opening, so let’s fill a job,’ ” she with its ambitious growth projections: says. Instead, she says, employers need to understand • Career coaching—Employees can interact that they are going to have job openings over a with digital assistants to design and pursue period of time, so they must solve the issue of how their desired career paths and get connected to bring people into its online community, in social to appropriate training resources and conversations, in wanting to learn about the company. opportunities immediately. Next, employers must nurture those relationships long • Training and development—The organization term and, finally, determine how to tap that talent created an interactive-training media hub that resource at the optimal moment. tracks users and awards them badges through “These questions are critical for an organization’s the organization’s gamification system. future growth and financial success,” she says. • Internal talent acquisition—Employees can Networking remains a potent strategy for successful upload their resume to a digital assistant that talent sourcing, according to Stroko. uses an algorithm to match their capabilities “If that’s how people are mainly getting hired, then to the jobs that best fit them. build a network that can yield that kind of support “Historical workforce data like the number of years for your organization,” Stroko says. “It’s critically in a position and performance ratings can be used by important.” an organization to predict which employees are ready As for potential high performers already in the for a new challenge,” Tucker says. “It also can be used fold, an internal pipeline for sourcing talent will work to predict which candidates are most likely to become because, so often, the right person for an opening is high performers if hired.” already working in the company. Stroko adds that, without effective career planning, “Internal talent remains largely under-leveraged as not only will employers potentially miss the chance to a source of desirable recruits,” Tucker says, adding that source talent internally, they could lose them altogether. best-practice organizations use resources like career “In this market, keeping who you already have is so coaches and career maps to help employees move important,” she says. “I’ve recently read that if a high internally. potential had someone in the company who served as “They empower employees to be more engaged an advocate or mentor to them, they were 89% less in the career process and streamline internal hiring,” likely to leave. she explains. “Employers must build or fortify their “If you want to keep people, first start building organizational infrastructure to support internal those connections so people feel like someone’s

A6 Human Resource Executive®

H09-19pA1-A8_OracleSupp.indd 6 7/16/2019 3:28:43 PM “To best position an organization [and new recruits] for growth and achievement, evaluate ways to improve communication, alignment and skill development,” she says. “When the pathway to mutual success is clear, it attracts and retains talent.”

Onboarding: Fostering a Long-Term Relationship If there is a best time to communicate to high- potential external candidates that they can trust a new employer to help them flourish, it’s during onboarding, when new hires experience a true sense of whether they made the right choice. It is also a critical early step in creating a lasting high-performance culture because, if employers want those talented newcomers to stick around, they must provide the best possible environment for career satisfaction and success. looking out for them—somebody cares about them, Onboarding can help drive that outcome. someone is investing in them,” she says. “Without “If you are onboarding a new employee and you those efforts, talented people just won’t stay.” want them to be able to feel comfortable to take risks in a team setting, it’s really important to focus Rewarding High Performers on the interpersonal side and not let the tactical/ According to Lynch, infusions of new talent certainly administrative side take center stage,” Tucker says. can help build or reinforce a high-performance “That especially means streamlining the administrative culture and add momentum to corporate growth. pieces and focusing on relationship building from the But the success of any individual employee—new get-go.” or experienced—also depends on an organization’s To support a high-performing workforce, Tucker ability to harness and reward high performance. Thus, says, onboarding needs to be “paced, social and successful recruitment and onboarding are natural personal.” For example, onboarding should be extensions of a successful approach to human capital a longer-term (up to nine months, if necessary) management. coordinated effort that provides new hires with “Finding and attracting top talent is critical,” she information, relationships, tools and experiences at the says. “But companies cannot hire their way into high moment of need, she says. It also should be a people- performance and profitability. Hoping that talent by focused process, involving training, networking and itself will transform an organization is a fallacy.” performance management. Finally, a successful Lynch says that, after an unsuccessful hire, it’s onboarding experience should be designed common to blame recruitment for “selecting people from the perspective of what new hires want, who weren’t a good fit,” when it is more likely that the not just what the organization needs. environment stifled performance by not nurturing their Leveraging mobile technology as part unique contribution. Simply put, she says, with aligned of your HCM solution is a logical way incentives (a win-win culture) and an aligned purpose to build this personal, intelligent (clear, shared values), talented, motivated employees onboarding experience that can thrive. connect new employees to

H09-19pA1-A8_OracleSupp.indd 7 7/16/2019 3:29:15 PM Hiring for Growth While Building a High-Performance Organization

the training, communications and welcome events that make their transition easier. “Surveys of new hires show that their experience has improved,” she says. According to Stroko, research from entities such as the Aberdeen Group has shown there are two critical difference-makers in successful onboarding. “The first thing you have to do is tell people what’s expected of them at work. Tell them what the deliverables are,” she says. “You need to be very specific.” Building Productivity, Brand and Stroko says employees are more likely to stick Meeting Growth Demands around when they understand what’s expected of In the end, if employers can follow these roadmaps, them. So employers need to quickly (within 60 days) the result—more often than not—will be a high- take the second critical step of clearly spelling out performance culture that ignites productivity, builds how performance will be evaluated. an attractive employer brand and boosts return on “Unfortunately, the first time many companies investment—a key metric that shares a hand-in-hand talk to a new hire about what’s expected is at the relationship with positive growth. first performance review,” Stroko says. “And with Stroko, working with Oracle’s Talent Strategy that, you’ve already missed the boat. That situation Institute, found that employers that consistently make can stir up issues around retention because the new the various great places to work lists share a key hires don’t feel like they were honestly told what was attribute: Their leadership throughout the ranks clearly expected of them.” If employers lose those potential outlined the company values and truly lived those high performers, a negative impact on growth is sure values. to follow, she adds. “There was no mistaking what they valued from Lynch says employees are listening for clues when the top of the organization, and that translated down learning about a new organization during onboarding, through the company,” Stroko says. “Every company trying to assess what’s happening there and whether needs a what, a purpose. What do we stand for? What their new employer has its act together. are our values? How do we act towards people?” “We do not want high performers to spend their To recruit for and achieve a culture that will succeed time wondering who they can trust, what they are in today’s seriously competitive talent landscape, really supposed to do, how they will be evaluated and employers must imbue their values across the workforce. whether or not their compensation will reflect how well “It’s critical how you drive your values through any they do,” Lynch says. Rather, she says, those matters organization,” Stroko concludes. “You need to create must be so clear and considered non-issues that the authenticity, meaning you actually do what you say new employees can focus on performing. you’re going to do and live by the words you say you’re “Too often, we mess up by delivering ambiguity and going to live by. With that, a high-performing culture mixed messages when what they need to know is what and corresponding positive growth are the likely result.” they are to accomplish, how they will be evaluated and To learn how Oracle HCM Cloud can help you hire what is important to the organization,” Lynch says. for growth, visit oracle.com/hcm.

A8 Human Resource Executive®

H09-19pA1-A8_OracleSupp.indd 8 7/16/2019 3:29:53 PM Talent Management By Peter Cappelli/Columnist

of the same millennial cohort. As far as we can tell, there is still no reason to think this Why Millennials Aren’t That Different cohort should be treated any differently than young people The Washington Post recently the Great Recession. Nothing They are behaving somewhat were in earlier periods. They published an interesting about them as individuals differently because of what has still appear to want the same summary of data about caused them to earn less than happened to them, not because things—marriage, children and millennial experiences, previous generations did at this of who they are. a home—they just haven’t been particularly as opposed to point in their lives, for example, If you are an employer, able to afford them. those who were the same age which appears to be the driving what does this mean for you? decades earlier. factor in these other results. Nothing. Nada. Zip. It’s true that Peter Cappelli is the The first point the Post Finally, nothing in any of those entering the job market George W. Taylor Professor of made is that fewer of those these results supports claims now feel much more entitled, Management and director of the in this age group, born from that people in this age group because of the tight job market, Center for Human Resources 1981 to 1996, are married than are different than previous but those who entered a decade at The Wharton School of the previous age cohorts were at cohorts were at this age, need ago still feel less so, because of University of Pennsylvania in this point. The trend toward to be managed differently, want the lousy job market, they say. Philadelphia. Send questions or later marriages has been going different things and so forth. They are supposed to be part comments to [email protected]. on for some time, though. The Pew Foundation reports that, while the average age of first marriages in 1960 was 20 and 23 for women and men, HR Leadershıp respectively, it is now 27 and 29. The average age at which By Eva Sage-Gavin/Columnist they have children is also up, by about seven years as compared to baby boomers. The one most important to realtors is that they are about six years older than baby boomers before they 6 Roles to Put On Your Radar own a home. About 20% of that difference appears due to the You’ve probably heard Futurologists. What company doesn’t want fact that this cohort owes more the statistic that 65% to identify the next huge trend, from a surge in in student loans than did the of children today will vegan eating to the sharing economy? While baby boomers. They also are work in jobs that don’t a few companies are on the leading edge, few more likely to have attended exist yet. As a leader in your company’s talent have institutionalized this role versus hiring ad college and gotten a college practices, you may be wondering, “How do I hoc. degree at this point in their life hire talent to equip us for the future, when the Cause Matchmakers. Purpose- than any group before them: future is morphing so rapidly?” led companies are the future, so cause 36% of millennial women have It’s understandable to think of mapping matchmakers could be the evolution of a college degree versus 20% of future talent as daunting due to the constantly sponsorship leaders. They will identify baby boomer women, while the changing nature of business, but I prefer opportunities to do good and deliver something figure for men is 29% versus 22%. to over-index on the exciting aspects of this back to customers and society, functioning as The linking theme in the challenge. I thought I’d share with you several the corporate lynchpin to greater good. above figures comes about of the roles I see emerging in the talent Did any of these spark thoughts of your from one more difference: This landscape. They are industry-agnostic and HQ- organization? If so, it’s not too early to be hiring group has had less income related, but they could spur some interesting this type of talent. Hiring for tomorrow’s needs growth in their career than conversations in your talent planning. today is how many corporate titans broke the prior cohorts. Many of them Trust Leaders: Two-thirds of consumers mold for true innovation. graduated into the teeth of the say they are attracted to a brand because it I’ll leave you with a story: One of my team Great Recession, the worst does what it says it will do and delivers on its members has a gifted 14-year-old son, who job market in modern times, promises. Trust leaders will protect customer recently attended a STEM job fair. When whose effects still linger. Recent data, as well as help incorporate safety into he arrived home, my colleague was slightly studies asking young adults every aspect of the customer experience. bewildered at his descriptions of careers in why they have not had children Marketing Monitors: Functioning as an vegetation management, neutrino physics and turn almost entirely on the lack ombudsperson, they will monitor automated biomimicry architecture. But she said his eyes of financial resources. outputs from bots or artificial intelligence, lit up as the words tumbled out of his mouth. Importantly, most of the ensuring they mesh with—rather than He is just a few years away from being differences, on average, for this contradict—brand values. Enterprise use of AI hirable. And I would venture to guess that job age group are driven by those grew 271% over the past four years, so this type descriptions far more futuristic wouldn’t rattle who did not go on to college. of oversight will become more crucial. him one iota. I also think that older versions of Compared to prior generations Growth Hackers: I’m sure we all know him have recreated themselves for the new job of individuals without a college someone wired for this job—a person who market, equally as excited about the future. degree, many in this age enjoys rapid, almost restless, experimentation, That’s the talent we need to tap for roles category delay or sidestep someone always in search of the Next Big that don’t exist yet. It’s not too soon to start. getting married, having Thing. These people will contribute to product children or buying a home. Not and service development, driving innovation to Eva Sage-Gavin is a former CHRO with surprisingly, that seems driven unlock growth. more than three decades of experience in Fortune by the depressed labor market Chief Storytellers. This role already exists, 500 corporations. She currently serves as the for those individuals. just not in large numbers. Storytellers rally senior managing director for Accenture’s global An important point is around the larger brand and purpose, as well as talent and organization consulting practice and that these differences are how what a company does represents it, driving as a technology board director. Send questions or things that have happened to deeper emotional connections with customers. comments to [email protected]. millennials, largely because of

September 2019 5

H9-19p05_TM_HR_Leader_Columns.indd 5 8/2/2019 9:28:52 AM Insıde HR Tech By Steve Boese/Columnist employee experience, while offering an enhanced employer- value proposition. This will How Tech Can Combat Talent Shortages be how HR leaders position their company as a preferred In light of the current labor get behind the wheel, making retention challenges. Walmart, employer in a tight market. market, HR leaders have to U.S. Xpress the largest carrier for example, recently adapted We will showcase success be more innovative than ever yet to use such technology. (essentially loosened) its initial stories like those from U.S. to help their organizations Candidates put what they screening process to get more Xpress and Walmart at the compete to find and retain learned from the instructional driver candidates into the HR Technology Conference, talent—and technology can videos and VR simulator to the recruiting funnel, as well as Oct. 1 through Oct. 4 in Las play an important role in this test on the company practice announced salary increases and Vegas. There, you can learn effort. Given this, I want to course. All of this is designed benefits improvements for its from a range of HR leaders share one example where a to better engage and prepare truck drivers. Increasing wages and innovative technology and combination of HR and HR tech drivers for a demanding job, and improving benefits are as service providers on how this is making a difference: the U.S. while HR leaders see the traditional as a company can get partnership of HR and HR tech commercial-trucking industry. benefit to engagement and when it’s attempting to increase can help your organization According to the American retention by equipping drivers hiring effectiveness and reduce meet its most pressing business Trucking Association, the with the tools and experiences unwanted turnover. The real and talent challenges. industry is on pace to have a they need to succeed. solution probably lies in a truck-driver shortage of 175,000 The company will likely still creative and comprehensive Steve Boese is a co-chair of by 2026. In addition, it needs to have to employ other, more combination of both HRE’s HR Technology Conference hire up to 900,000 drivers in the traditional HR approaches approaches—applying modern & Exposition®. Send questions or next 10 years to replace those to address recruiting and technologies to improve the comments to [email protected]. leaving the industry, mostly through retirements. Hiring in the trucking industry has always been By John Sumser/Columnist tough. The jobs are difficult Emergıng Intellıgence and require significant training for drivers to qualify for the required CDL license and remain certified. Often, Why HR is Becoming a Science commercial drivers are away from home for days, even Between the newfound for exploring the limits of possibility and a bad weeks, at a time. Drivers are ability to connect HR one for integration and connectivity. Now, little subjected to health risks, initiatives to business start-ups are essentially in a tryout stage for including long stretches of outcomes and the absorption into a larger entity. sedentary driving, interspersed explosion of intelligent Every year, I create a report that describes with elements of physical tools, technology is making it increasingly the issues and players in the emerging science work to secure loads and possible to understand and predict the of HR. My presentations at next month’s HR perform maintenance on organization and its behavior. We’re still in the Technology Conference in Las Vegas are the their vehicles. The job itself early stages, yet it’s easy to imagine an evolution result of hundreds of hours of interviews, demos has also increasingly been in which HR can help business leaders anticipate and a deep look at how machine learning and AI portrayed in the media as one the results of their people-related decisions and work. As I research, I’m starting to see an uptick that has a high likelihood of guide them through complex decision-making. in absorption of these smaller experiments; the being disrupted by technology. The spectrum of improved tools include big fish are feasting on the little ones. Self-driving trucks are in active reporting, people analytics, predictive analytics, The danger is that the acquiring operations development and testing, and machine learning and natural-language rarely produce a cohesive big picture. If the some experts believe we will processing. Coupled with burgeoning little, focused AI apps run the risk of unintended see wide deployment of self- frameworks for understanding work, people and consequences, an assembly of them can driving trucks even sooner than organizational cultures, these tools constitute multiply the problem. Whether you like it or not, self-driving personal vehicles. the exploratory elements of the new science. you are going to spend a considerable chunk of Facing such challenges From here forward, the hallmark of HR will your time figuring out how to dummy-proof your to hiring and retention, U.S. be its ability to use data to steer the workforce systems from the AI that has come to live there. Xpress, one of the nation’s towards the organization’s future. It’s getting clear that any large organization largest trucking companies The goal of all science is to understand the (say, more than 5,000 employees) will want based on total revenues, world in ways that make it more predictable. to have its own analytics and data-science recently made some significant Until now, organizations and their members laboratory. That’s where organization-specific investments in and changes to posed impossible challenges in modeling and nuances and algorithms will be built. Here’s the its driver-training programs, predicting behavior. Even the best 20th-century start of a reading list that will get you in shape infusing modern technologies assessment tools left much to be desired and for this new, scientific HR: into every step and relying on offered little in the way of useful correlation. • Organizational Culture and Leadership, fifth feedback from its 8,000 truck Both people and organizations are examples edition, by Edgar Schein; drivers along the way. of complex systems. They behave differently • The Model Thinker: What You Need to Know The formerly classroom- in different contexts, and minor nuances can to Make Data Work for You by Scott Page; based training program is now generate extremely different outputs. The • Superforecasting: The Art and Science of self-paced and available online, combination of data models, inexpensive Prediction by Phillip Tetlock; and with more than 30 videos computer processing and virtually limitless • The Human Use of Human Beings by to help drivers engage and storage in the cloud make what used to be Norbert Weiner. become familiar with upwards impossible calculations now possible. of 200 commercial-vehicle Early on, it looked like intelligence tools John Sumser is the principal analyst at learning topics. Additionally, would be added to core software processes HRExaminer. He researches the impact of data, at its new training facility in like apps on a smartphone. There are over analytics, AI and associated ethical issues on Georgia, the company deployed 600 venture-financed experiments involving the workplace. Send questions or comments to a virtual-reality simulation for tiny, unconnected bits of HR—a good model [email protected]. truck drivers before they even

6 Human Resource Executive®

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H9-19p07_AFLAC.indd 7 8/1/2019 10:59:41 AM The Latest Trends in Human Resources HR Top Story Tr e n d s Encouraging Employees to Report Misconduct

here’s a good chance that more than half of your employees look the other way regarding compliance What to Know Tmisconduct by co-workers, according to a new survey. Gartner gathered responses from more than 2 million about the EEOC’s respondents from 167 organizations worldwide between 2009 and 2017. The results revealed that nearly 60% of all misconduct Pay-Data Rule observed in the workplace is never reported, which can create huge risks for organizations. The No. 1 reason is fear of retaliation, says Vidhya Balasubramanian, managing vice president of Gartner’s legal hen the White and compliance research group. House Office “Almost one in four employees tells us they wouldn’t report Wof Management because of fear of retaliation from their co-worker, manager or and Budget announced organization in general,” she says. Likewise, employees who don’t plans to stay the Obama- report misconduct feel they lack enough information—uncertainty era pay-data-collection lowers reporting rates—or rule in August 2017, don’t believe the company few observers were been doing EEO reporting for believes savvy companies will take action. surprised. It was just the a long time has the headcount will look upon the process At the very least, latest move by the Trump stuff under control, but as an opportunity to turn the Balasubramanian says, HR administration to roll back when you start aggregating mirror on pay equity in their can strengthen its reporting many of the rules and all the compensation data own organizations. This, he system by observing five regulations instituted by and hours data, you may says, can hopefully help them key steps. his predecessor. need to have two or three or avoid what he predicts will First, reframe the However, employers’ even more different systems be the “next big wave” of concept of reporting, she collective sigh of relief was communicating with each employment lawsuits. says. Instead of employees short-lived. In response to a other to make this happen.” “This new EEO-1 rule believing they’re simply lawsuit filed by the National The deadline for provides an opportunity to HR tattling on a co-worker, HR Women’s Law Center against submitting the data is Sept. 30. professionals to start having should rebrand reporting as a process that enables employees to the OMB, a federal judge If you haven’t yet started the a robust dialogue about these clarify or ask questions about company policies or procedures. reinstated the rule this process, Coburn recommends issues and how to tackle Then, create various reporting avenues, such as an anonymous spring, requiring the Equal a good starting place is for HR them,” says Coburn. “It’s not hotline or a specific email or web portal. HR managers then must Employment Opportunity professionals to pull together an easy thing to fix, but gone offer guidance to workers regarding whom employees can address Commission to collect pay the requisite data and ensure are the days when companies their issues with, such as HR, a boss or another supervisor. data—sorted by job category, it can be generated in the could bury their heads in Next, HR needs to ensure the reporting process is consistently race, ethnicity and gender— appropriate format. And, while the sand. They need to be communicated, says Balasubramanian, including during onboarding, from companies with more he’s not completely sold on proactive and identify issues new-manager training, leadership programs, town-hall meetings and than 100 employees. the idea that the rule will help and start trying to address in employee communications. Previously, employers the EEOC identify instances them.” Equally important is manager training. According to the Gartner were required to provide a of pay discrimination, Coburn —Julie Cook Ramirez survey, two-thirds report misconduct directly to their boss. But does “headcount report,” broken that boss know what to do with the information? down by job category, race “That will dictate whether employees will come to [their and gender, explains Brett boss] again and what they’re going to tell their friends,” says Coburn, a partner in the Balasubramanian. “Most employees are just as likely to speak up and labor and employment group report something they’ve seen to their manager and ask for guidance of Alston & Bird. While the in the same breath.” revised EEO-1 form “uses Decision Drag The last step, according to Balasubramanian, is to increase the same building blocks,” As the world of work is rapidly transparency, which, in turn, demystifies the entire reporting process he says, it also collects total redefined, Gartner recently by keeping employees updated on any developments in a case. W-2 compensation data and found that the No. 1 skill for “You don’t need to give them all the details,” she says. Instead, hours worked. The rule is hiring managers needs to be give them “regular touchpoints so they don’t feel their information intended to help the EEOC decisiveness—as too many got lost in a vacuum somewhere. Employees who report expect to identify instances of pay are dragging down hiring have some sort of update about the investigation process.” discrimination, but Coburn with slow decision-making. In Besides facing legal and financial troubles, she says, companies is dubious it will do anything particular, the firm found: that dismiss reports of employee wrongdoing can also damage their but create an administrative own reputation, which often leads to high turnover or recruitment burden for employers. challenges. “The data that will be • the average time between the initial job interview and the hiring manager making an offer was 33 days in 2018, up 84% from 2010; “Many companies are taking to heart the #MeToo movement and collected is so aggregated and also the number of scandals over the last couple of years that have lacking in a lot of critical ways, • longer decision-making around hiring causes a 16% reduction in implicated senior leaders,” says Balasubramanian. “That’s been a big I don’t know how it’s going to candidates accepting offers; and impetus for companies to reassess their processes.” provide useful information to • decisive hiring managers hire 10% more high-quality candidates than —Carol Patton government regulators,” says traditional hiring managers and reduce time-to-hire by 17%. Coburn. “A company that has

8 Human Resource Executive®

H9-19p08-12_Trends.indd 8 8/16/2019 11:07:13 AM and reminds us we’re a part work remotely. President Major company get- harm to the relationship Loneliness: The of something bigger than just and CEO David Lewis says togethers are opportune between remote workers ourselves.” he works to keep those moments for helping and the company, says ‘Dark Side’ of Telework remains very employees in the loop by remote workers get some Lewis. Trained managers, in popular. Nearly half (47%) using technology to try valuable facetime with their comparison, understand how Teleworking of job seekers polled by and simulate the same colleagues, says Lewis. to give remote workers the Indeed last year said having a experience they’d have if “Company meetings opportunity to demonstrate telecommuting option is “an they worked on site. tend to have big social that they’re productive and an Schawbel works important factor” in choosing “We do Skype video components, such as going successful, he says. from his Manhattan a job. Telecommuting has calls with them instead out bowling or to happy “It’s not about having Dstudio apartment been on the rise since of voice-only conference hour,” he says. “Look for creepy webcams to spy on every day during the work 2005, according to data calls,” he says. “The face- ways to include teleworkers these employees, but helping week. Not long ago, he from the U.S. Bureau of to-face contact cannot be on that level and budget for managers successfully lead realized he was feeling Labor Statistics and the overestimated in terms of its it—it’s well worth the cost.” remote teams,” says Lewis. miserable. U.S. Census. The BLS’ value.” At Chili Piper, a software Remote workers should “People only talk about the 2017 American Time Use Christina Andrade, firm that automates also be prepared to make upside of working from home; Survey revealed that 23% of director of operations at scheduling for sales and changes on their own to no one talks about the dark U.S. employees did some Metis Communications, says marketing professionals, combat feelings of isolation. side of it,” says Schawbel, or all of their every one of its Schawbel says he learned to research director of Future work at home. 31 employees build in face-to-face meetups Workplace. A new work remotely, during each workday to The “dark side” includes survey from including ensure he doesn’t spend all less, if any, human contact, Citrix Systems CEO Nicolas of his hours alone in front of feelings of isolation finds that the Vandenberghe. a screen. and loneliness, and high cost of “We’ve “I started scheduling disengagement from the housing in committed to my days so I was regularly organization. some of the hiring talent meeting other people, “When people feel like nation’s largest without regard whether it was coffee with that, they’re less productive, employment to their physical friends, lunches with clients happy and fulfilled,” he says. centers is also location,” he or business partners, what- Schawbel has some an impetus for says. have-you,” he says. “I got numbers to back him up. telework. The The company very strict about blocking Last year, his firm published survey of 5,000 makes heavy off time for those meetups a study of remote workers workers from use of tools because it’s very easy to fall based on interviews with across the such as Slack into that trap of working all more than 2,000 employees U.S. finds that and Zoom for the time without realizing and managers. It found that 70% would move from major the firm—whose employees collaboration and keeping you’re shutting yourself off two-thirds of remote workers cities if they could perform are dispersed across the employees connected, says from the outside world.” do not feel engaged and over their jobs at the same level U.S.—uses technology to Vandenberghe. All employees —Andrew R. McIlvaine one-third said they never get elsewhere. However, despite help employees understand participate in weekly video any facetime with their team 85% of respondents saying their colleagues’ workflow, meetings via Zoom to get the members. Remote workers they believe they could do quirks and preferences. It latest company updates. also feel less attached to their jobs effectively from schedules company video To help employees avoid Remote Workers their employer: Only 5% said anywhere and 69% saying chats that are intended to feeling isolated, Chili Piper they always or very often remote work would enable give team members time to also rents employees space in Two-thirds do not feel see themselves working at them to be more productive get to know one another on co-working offices, such as engaged their company for their entire and focused, only 35% of a personal level. At the video those operated by WeWork. career, compared to one-third companies say they’re meetings, employees show “At co-working spaces, One-third never get of employees who do not introducing better flexible/ one another where they work you have access to a second facetime with work remotely. remote work policies. from, talk about their pets set of colleagues you can team members In his book Back to Such shortsightedness during “bring your pet to talk to and go to happy hour 5% always or very Human, Schawbel explored could hinder companies’ lunch” meetings and have with,” says Vandenberghe. often see themselves ideas for bridging the gap access to talent. “water-cooler chats” where “For us, it’s become a strong working at their current between telecommuters “People today want to the only rule is that there’s point for recruitment.” job permanently and the home office. These work where they want to no talk about work for 20 Lewis says the challenges included having leaders work,” says Tim Minahan, minutes. remote workers face are travel to meet with their vice president of strategy for “The more we learn about often exacerbated by direct reports in person and Citrix. each other’s hopes, fears and managers who haven’t been letting remote workers lead Yet, teleworkers often stories, the easier it is for trained in managing people group meetings. feel forgotten and left out of us to create a strong team from a distance. Often, these “People don’t want important company events. dynamic,” she says. managers may be skeptical extremes,” says Schawbel. Technology—specifically, A master Google calendar that teleworkers are actually “The research shows video conferencing—can helps employees know working. that they need time for help compensate, although the status of each other’s “Some managers still collaborating and time alone.” it’s not the only solution, say schedules so it’s easy for believe teleworking is really a And yet, he says, “We experts. them to know the best times dodge for taking care of kids have an inherent need to be At OperationsInc, an HR to ask their colleagues or goofing off,” he says. around other people. It helps outsourcing and consulting questions or just to check in This level of distrust us brainstorm and collaborate firm, 30 of its 100 employees and say hello, says Andrade. can end up doing real Source: Future Workplace

September 2019 9

H9-19p08-12_Trends.indd 9 8/16/2019 11:07:12 AM Tr enHR ds

most active shooters, with very few What does your training look like? company. During the break, the CEO Training Employees to exceptions, have some association We target three audiences. The first was up at the head table with me and with the company, whether they’re a is the general workforce, who are the an office manager approached me Be the Eyes and Ears terminated employee, a suspended eyes and ears of the company. They’re with a young woman I could tell was employee, a disgruntled customer, an the people you see, after there has been distraught; I knew right away she had Of the Company ex-husband of an employee. When you an active-shooter situation, interviewed a restraining order and was coming hear the statistic that 33% of women about how this person’s behavior forward. She said, “I have a restraining Active-shooter training is an killed in the workplace are killed by concerned others. That training is order, and I haven’t had the courage unfortunate reality today, but do your an intimate partner, that’s almost to typically less than an hour and can be to bring it forward to HR.” The CEO workers know how to spot problem epidemic proportions. So, companies done in person or through an online was there with me and there was no signs before an incident occurs? need to be thinking about their policies learning-management system, and it judgment. They changed the access The statistics about workplace in general and what managers can do to focuses on the behavior signs to look for controls to the building, provided her violence are alarming: Nearly two recognize signs of an issue. There have and emphasizes that reporting warning a special parking space, got the photo, million Americans are victims of been behaviors that have concerned signs isn’t punitive: If you care about notified police—and she’s still an workplace violence each year—yet a others in almost every single [recent your and your co-workers’ safety, it’s not employee there. And I think there were quarter of violent incidents at whistleblowing if you recognize other employees there paying attention work go unreported, according and report warning signs. to how this was handled, who could see, to the Occupational Safety and We also have a training to “This company cares about me.” Health Administration. The help managers and supervisors severity of such incidents varies understand how to handle issues How can HR help cultivate that widely, but the Bureau of Labor the general workforce may type of culture, where people feel Statistics reports workplace report to them. And the third, comfortable coming forward? homicides jumped from 83 to and just as important, is for an Without negating zero-tolerance 2015 to 500 just one year later, interdisciplinary team, which policies, successful violence- with homicides accounting for the DOL, OSHA and SHRM all prevention programs need to involve about 10% of all fatal occupational recommend. It can be a team an educated workforce. They need to injuries. That year, nearly 80% of of HR folks, legal, security, know about things like protections workplace homicides were the members of the [employee- regarding restraining orders, that result of gun violence. assistance program] or local warning signs won’t be handled With workplace shootings police. If there is somebody in a punitive way, how to identify occurring with seemingly increasing high-profile case of workplace violence], whose behavior is concerning, you can concerning behaviors—for that to regularity, active-shooter trainings are a so if we can start identifying those have this team look at it, instead of just happen, HR has to provide leadership grim reality at many workplaces. While behaviors early enough, there is the the security director or HR. in creating a culture of caring. such programs can prepare workers potential for intervention before the They need to create an atmosphere for an emergency situation, there’s a situation escalates into violence. Beyond training, what policies can where this issue is not treated as a lot more companies should be doing employers put in place to support a whistleblowing exercise. If HR just has to stymie workplace violence before Do companies tend to have policies violence-prevention strategy? a strict “We won’t tolerate violence” it escalates, says Matthew Doherty, in place for violence prevention? One that we recommend is approach—if that’s the summation of senior vice president and leader of the Not yet. We do an analysis of regarding protective or restraining the policies—there will be a reluctance Threat and Violence Risk Management violence-prevention policies so we can orders. There are a whole host of to bring forth concerning information. Practice at Hillard Heintze. help them build a program before we reasons acts of violence [from intimate All of this work needs to promote Doherty joined the security and even think about doing training, and we partners] take place at workplaces; courtesy, respect and safety. If those risk-management firm 12 years ago follow best-practice guidelines [for such jealousy, the fact that the workplace is three pillars can be promoted by HR, after a career in the U.S. Secret Service, policies] from the Department of Labor, providing this individual independence it’ll provide a much safer workplace for retiring as the special agent in charge OSHA and Society for Human Resource or simply that’s where the person can everyone. of the National Threat Assessment Management. We’ve found several be located. So, if you have a restraining —Jen Colletta Center. Now, Doherty and his team commonalities that point to not-very- order, some companies now have a advise private-sector organizations sound approaches to prevention. policy that you have to bring it to the and federal agencies on active-shooter For example, in most employee supervisor or HR. planning and threat assessment, with handbooks, we find that prevention People often get these orders where Listening to Employees a particular focus on creating policies policies are punitive, with a focus on they live, but it isn’t expanded to their On Benefits and programs that support a culture in zero tolerance: “Workplace violence workplace. If you live in one town which workforces are empowered to is not to be tolerated at Company X.” and work in the next town over, that identify and report potential threats. Well, if you think about it, most acts of information won’t be shared with the HRE spoke with Doherty about this workplace violence are not committed local police whose jurisdiction includes work, and the integral role HR leaders on impulse; they’re planned in advance, your workplace, so the employer can play in preventing violence. and there are warning signs. If someone needs to make sure that police where is suffering depression or despair, is that the workplace is located are aware. Your active-shooter training focuses a violation of this zero-tolerance policy? You want to get a copy of the order not just on what to do if someone If you notice that your female co-worker and a picture of the person named A survey of more than 2,200 opens fire, but also how to prevent is wearing excessive makeup to hide in the order, and that can posted at employees conducted by the situations from progressing to that bruises, how is that a zero-tolerance the entrance to the building or at the National Business Group on point. How does that compare to violation? When I ask for policies, security station. You can offer the Health revealed: most active-shooter trainings today? I get these zero-tolerance policies, employee an escort to their parking • one-third want more help with financial Hopefully, it’s the start of a trend. where companies say how they’ll fight spot because that is often the most health, particularly with prescription-drug Oftentimes, I’m called by companies direct threats of bodily harm or sexual vulnerable point at the workplace. And and housing costs; because of media exposure around harassment. Those, of course, should the employee needs to be reminded that • 27% of employees are looking for more the phenomenon of active shooters in be in place. I’m fairly confident that if they will not be discriminated against mental-health support, especially regarding the workplace and asked to provide I walked into any workplace and there merely because they are a victim, or workplace burnout; and active-shooter training—and I’ll do it, was a fight between two co-workers in suspected of being a victim, of domestic • 58% of workers whose employers and do it well. We’ll teach people how the lobby, it would certainly be reported. abuse. support four or five wellbeing dimensions to run, hide, fight and how to react if But what about the early warning signs report excellent or very good health, there is a shooter in the workplace. But of despair, depression, domestic abuse? What does such a policy look like in compared to 43% of those whose my first response when I get these calls Those warning signs, left unchecked, actual practice? employers support three or less is, “What are your violence-prevention can lead to the acts we’ve seen in the We just recently trained the general dimensions. programs and policies?” It’s a fact that news. workforce of a major insurance

10 Human Resource Executive®

H9-19p08-12_Trends.indd 10 8/13/2019 2:36:37 PM feedback from peers, direct reports and extract meaning management a 3 Ways to Make other internal stakeholders. and themes more value-added Performance evaluation: from the data, process, so that Performance According to Shannon, technology can while analysis of people feel it help organizations create more objective specific projects is supporting Management Less and relevant annual reviews by capturing helps ensure B:7.8125” the business data throughout the year, providing more accurate ratings.T:7.4375” and their ability to improve their Painful tangible examples of performance in real “The challenge,” EnderesS:7” performance.” time. Natural-language processing can says, “lies in making performance —Julie Cook Ramirez Performance management continues to be a thorn in the side of workers, despite extensive efforts by employers and technology vendors to improve the process, according to a new report from Bersin, Deloitte Consulting. The report, Performance Management Solutions: Market Primer, paints a picture of employers and solution providers attempting to reinvent the dreaded practice, which achieved a net promoter score of -60 in the Bersin High-Impact Performance Management study. “If you had a product with a net promoter score of -60, you’d probably kill it—you wouldn’t even try to improve it—but killing performance management is not an option because it can provide a lot of value,” says Kathi Enderes, vice president and talent and workforce research leader at Bersin. Organizations and vendors have attempted to improve perceptions by adopting names like “check-ins” or “total performance,” but such efforts have Solutions for the unexpected, 1 VB_ largely fallen flat, says Enderes. “Rebranding without changing the unthinkable, and the unlucky. Studio Dean Burgess how you do it is not effective because Job # A4988 you’re changing the name but not what Date 6-4-2019 4:05 PM people don’t like about [performance management], which is that it is too Live 7” x 10” infrequent, too subjective and just not Trim 7.4375” x 10.625” Bleed 7.8125” x 11” value-added,” says Enderes. Gutter None The report highlights three essential Pub HRE Mag GI

activities Bersin identified as inherent to T:10.625” P. Date None B:11” S:10” performance-management solutions: Financial wellness means being prepared for an accident or illness. Approvals: ______GCD Goal Management: In lower- Accident, hospital indemnity and critical illness insurance help performing environments, this is ______CD employees avoid dipping into their savings. ______AD typically a once-a-year, forward-looking ______CW process where goals are set and possibly ______AE shared with a direct manager, but Our expanded voluntary benefits provide relief from expenses1 ______Traffic then forgotten until they are revisited ______Proof not covered by medical plans. And a simpler experience for employers and six or 12 months later, according to Scaled None Matthew Shannon, senior research workers—from onboarding and enrollments to billing and claims. analyst of solution provider markets Prudential Advertising 973-802-7361 at Bersin. With the aid of technology, We’re the #1 brand considered by employers for financial wellness.2 high-performing organizations turn goal management into a future-focused Our data-driven approach gives us insights into employee needs, activity in which individuals develop at every life stage. As a result, our education and engagement approaches short- and long-term goals that align with can inspire employees to take action to improve their financial wellness. specific organizational objectives and can be course-corrected in real time. Multi-Source Feedback: No matter how hard we try to be impartial, bias is implicit in everyone and it Visit prudential.com/voluntary negatively impacts the performance- review process, according to Enderes. The solution lies in removing bias from the process, not the person. While Accident Critical Illness Hospital Indemnity low-performing organizations tend | | to embrace practices that unwittingly embed bias—such as having a single manager own the entire feedback 1 Includes medical and non-medical expenses. process—high-performing ones 2 Prudential/Phoenix Marketing Int’l Study of Group Insurance Brokers, 2018. utilize multiple sources of feedback, Group Insurance coverages are issued by The Prudential Insurance Company of America, a Prudential Financial company, Newark, NJ. Technology supports the process © 2019 Prudential Financial, Inc. and its related entities. Prudential, the Prudential logo, the Rock symbol and Bring Your Challenges are service marks through automatic “nudges” to collect of Prudential Financial, Inc., and its related entities, registered in many jurisdictions worldwide. 1019819-00001-00

VB_HRE_7.4375x10.625.indd 1 06-04-2019 16:05 H9-19p08-12_Trends.indd 11 8/16/2019 11:07:27 AM TrHR en ds

and its integrated digital-learning way it encourages collaboration and Introducing the Josh solution, which is designed to help engagement, and the relevant library individuals and teams adopt new ways of quick reference resources all Bersin Academy of working and thinking. contribute to a high-impact solution.” The academy’s programs are The academy, which already Today’s most contentious designed to address the business and has 423 enrollees, currently offers business issues—including digital talent issues all organizations face the following programs: People as transformation, AI and automation, pay today, such as HR strategy, employee Competitive Advantage, The Agile equity and inclusion—are redefining experience, diversity and inclusion, Learning Organization, Performance the way companies operate. talent management and technology Management Reimagined, The HR While HR has the biggest role in innovations. Complementing the Tech Workshop and Wellbeing at determining how organizations will programs is a library of specially Work. Programs planned for later in adapt to these changes, global industry curated learning resources, which 2019 include Introduction to People analyst and HR Tech Conference include articles, research briefs, videos Analytics, Designing the Employee keynoter Josh Bersin says most HR and tools for on-the-job support. New Experience, AI in HR and The New leaders don’t spend enough time or resources will be added weekly to Role of the HR Business Partner. individual practitioners and small HR have the right resources to prepare ensure members have access to the Members receive a certificate for teams can join the academy’s global themselves or their HR teams for the most current information, Bersin each completed program, and those edition for $40 per month per member, future. says. The academy also fosters a with SHRM certification can receive while introductory enterprise pricing Indeed, according to a recent global community of HR and talent 20 recertification credits for each starts at $450 per member per year and Deloitte survey, nearly half of 10,000 professionals working together to solve completed course. comes with the ability to customize respondents cited the need to upskill problems and advance the profession. “Every problem that’s new, we’re programs, in-depth analytics and their organizations’ HR teams as an The launch follows a multi-month going to do a program on it,” Bersin personalized onboarding services. “urgent or very high” priority. pilot program that sought input from says. “Our goal is to make sure we Attendees at the HR Tech In an effort to help both individuals people at 16 companies, including United have content that applies across the Conference in October will have and organizations overcome their Health Group, Taj Hotels and Kronos. whole board of the HR function.” exclusive access to Bersin’s HR upskilling challenges, Bersin recently “My background in learning One of the stated goals of the Technology Market Report. launched the Josh Bersin Academy, design and architecture gives me a academy is “to provide a high-quality For more information, visit which he describes as the first global- keen appreciation for the academy’s learning and development experience www.hrtechconference.com/ development academy for HR and talent learner experience,” says Pamay to HR and talent professionals at all hrtechfactbook.html. professionals. It can be accessed on any Bassey, chief learning officer for the levels at an affordable cost.” To that end, —Michael J. O’Brien mobile device with a browser. Kraft Heinz Co., another one of the The academy was created in pilot program’s participants. “The partnership with Nomadic Learning engaging interactions, the innovative Oct. 27–29 2019 Strategic HR Forum, Upcoming Events Renaissance Boston Waterfront Hotel, Boston. This forum will offer opportunities to engage in forward-thinking discussions and explore strategies perspectives of Sept. 10–12 2019 Learning & Leadership companies are using to lead better workplaces. the company or Development Conference, Encore Boston Harbor, Addressing Attendees can develop new frameworks for industry, she says. Boston. Attendees will receive the tools and meaningful and dynamic employee experiences, Also, review your strategies needed to identify, develop and coach Burnout in the new approaches to talent acquisition, learning and leaders to better engage and retain teams and will communication inclusivity, and more. For more information: HR People find out how retention is the hard-won outcome Workplace policies. Are + Strategy at https://www.hrps.org/executive-events/ of engaging and challenging talent. For more employees expected strategic-hr-forum/Pages/default.aspx Your star employee is to respond to phone information: Human Capital Institute at https:// Nov. 6–8 National Workers’ Compensation and coming to work late, seems detached calls, texts or emails after work and on lldconference.com. Disability Conference® & Expo, Mandalay Bay, Las Oct. 1–4 ’s HR Technology Conference from her job and exhausted on most weekends? It’s important to “be present” HRE Vegas. Thousands of workers’ compensation and & Exposition®, The Venetian, Las Vegas. days. While illness or personal issues when speaking with employees, she disability-management professionals from across Whether attendees are looking to increase their may be the culprit, there’s another says, adding that managers should be the nation come together for this once-a-year event knowledge to buy and effectively implement possibility: She may be burned out. paying attention to the affected worker, that’s not to be missed! NWCDC offers endless new HR systems or to stay on top of this rapidly The World Health Organization not to their cell phone or laptop. opportunities that will propel workers’ comp and changing industry—success starts here. As the recently classified burnout as an Burnout can be reduced or possibly disability-management programs forward. With more industry’s leading independent event for 20-plus than 35 sessions spanning six unique program tracks, occupational phenomenon or work prevented by reinforcing overall years, HR Tech has been a key catalyst for tens of NWCDC will help attendees gain new ideas on how hazard in its International Classification wellness activities involving the body, thousands of HR and IT executives in their quest to use workers’ comp programs to engage absent of Diseases. The organization says mind and spirit, says Vinck. HR leaders to leverage technology and secure HR’s role as workers, speed return-to-work and much more. burnout is characterized by the can encourage employees to take short a pivotal component in their company’s overall For more information: LRP Media Group at www. success. Hailed as the industry’s “Town Hall following three symptoms: walks during the workday, meditate or WCConference.com. • feelings of energy depletion or engage in breathing exercises, as well Meeting,” HR Tech is a once-a-year chance to learn exhaustion; as offer time off for self-care to help from—and network with—respected thought Nov. 14–15 HR Comply 2019, Renaissance • increased mental distance from build their resilience. leaders and like-minded professionals. HR Tech is Nashville, Nashville, Tenn. This event is formerly the Advanced Employment Issues Symposium. It is one’s job, or feelings of negativism or Although HR can train employees on not a user conference and does not sell speaking slots. That means each session offers practical a leading human capital management conference cynicism related to one’s job; and preventing or managing burnout, Vinck and actionable takeaways—minus the sales pitch for HR professionals, executives and in-house • reduced professional efficacy. says, the real challenge is persuading and vendor hype. Plus, home to the world’s largest counsel. The content and expert presenters will help Although WHO doesn’t label resistant managers to acknowledge it. HR-technology expo—the size of seven football attendees get ahead of workplace-policy updates burnout as a medical condition, its HR professionals can get their attention fields—HR Tech gives attendees the chance to with an overview of breaking updates and proven best consequences are still harmful, says by addressing the financial impact it compare more products and services side by side practices. For more information: BLR at https://live.blr. one workplace expert. has on employee turnover, productivity, than any other event. For more information: LRP com/event/hr-comply. Media Group at www.HRTechConference.com. Employees who are burned out employee morale and engagement in March 23–25 2020 People Analytics & Workforce may call in sick more frequently, says their department or throughout the Oct. 27–30 The HRSouthwest Conference, Fort Planning Conference, JW Marriott Turnberry, Jaime Vinck, CEO at Sierra Tucson, company. Worth Convention Center, Fort Worth, Texas. This Aventura, Fla. Attendees will hear how high- a behavioral-health organization that “It’s very important to develop conference offers educational sessions on relevant performing organizations are creating a competitive supports 450 employees. Likewise, the an environment of connection and HR topics, including employment law, healthcare, advantage with workforce analytics. Learn how to quality of their work may decline. They support,” says Vinck. “Anything you talent management and more. Attendees will have balance just-in-time talent demands with long-term may miss deadlines, make careless can do to prevent burnout will help networking opportunities and interaction with the planning, build your workforce planning and analytics mistakes, lose interest in work tasks employees in the long run with their expert lineup of educational speakers. For more function, apply analytics across the talent lifecycle, and more. For more information: Human Capital or projects they were once passionate mental and physical wellbeing.” information: The HRSouthwest Conference at https://hrsouthwest.com. Institute at https://pawpconference.com. projects or those that offer different —Carol Patton

12 Human Resource Executive®

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H9-19p13_VARIDESK.indd 13 8/8/2019 9:51:13 AM Cover Story McDonald’s New GoldenGolden Age with our entrepreneurial heritage but in Despite the pressures of a rapidly changing industry, McDonald’s a contemporary way, and this required has embraced innovation in its people policies and practices in an evolution of our culture.” From 2012 to 2015, the business hit order to fuel a financial turnaround. BY ANDREW R. Mc ILVAINE a tough spot of negative sales growth across the entire system. “The reality is that we lost touch with our customers or David Fairhurst, the leadership, McDonald’s expanded change and knows how to harness all as we were trying new innovations that entrepreneurial spirit took hold rapidly throughout the U.S. and then the ‘capitals’: financial, cultural and were not generating customer growth,” F at an early age. the world, providing the opportunity human,” he says. he says. “I had my own sweets shop when I for numerous franchisees around the Dave Ulrich, Rensis Likert Professor Easterbrook swiftly launched was 10 years old, selling to local kids,” world to become millionaires. at the University of Michigan’s Ross a turnaround plan. He closed less- the northwest England native says. These days, McDonald’s, like School of Business and a partner at profitable locations, invested in The lure of commerce wasn’t the its fast-food competitors, is facing the RBL Group, served as a consultant upgrading food quality and restaurant only thing on young Fairhurst’s mind, a turning point. The industry’s to the company on its cultural technology, and restructured the however. He also seriously considered global growth has slowed, even as transformation and has high praise for company. becoming a pastor and took public- consumers’ expectations for innovation Fairhurst. Fairhurst has played a vital role in speaking lessons at his local church, and convenience continue to grow. “David is just one of the best HR the restructuring effort that reduced in addition to engaging in lots of Customers want home delivery, people I’ve run into,” he says. “He has costs by $500 million. This included community volunteer work. healthier eating options and the ability great insight into the business and moving from a decentralized reporting Upon graduating college, however, to pay via their phones; yet, they also great instincts on what HR can do to relationship to a centralized one, with he’d lost his ambition for a career in want more than the convenience help.” all 18 of the company’s wholly owned the church—yet he hadn’t lost sight of that McDonald’s has built its markets reporting directly to corporate his idealism, nor his fascination with reputation on—they want a hospitable The Power of Organization Design headquarters. business. He ended up combining the environment where they feel welcome, At the time Fairhurst stepped into “Getting all of the behaviors aligned two into a career in HR. says Fairhurst. Meanwhile, a tight labor his current role in 2015, things were was a top priority,” says Fairhurst. “When people science and market and competing opportunities trending downward at McDonald’s. A “It’s not about becoming a different commerciality come together, it from the emerging gig economy mean year before, a Consumer Reports survey McDonald’s, but a better McDonald’s.” feels like HR,” says Fairhurst, who that finding and retaining restaurant declared McDonald’s hamburgers He cites the importance of continued his community involvement employees to help maintain that the “worst-tasting” of all fast-food organization design in helping the by serving as a visiting professor at environment is harder than it’s ever chains. The company felt compelled company reshape itself for the future. the U.K.’s Manchester University been. to run commercials denying that its “One of the things I’ve recognized and working with nonprofits to teach Despite these pressures, McDonald’s hamburger meat contained “pink over the years is the power of OD,” he workers new skills. financial performance has been on the slime.” Same-store sales had been says. “OD is about ensuring the right Fairhurst today is corporate rise. The company’s stock price is at an declining for six consecutive quarters, people focus on the right things.” executive vice president, chief all-time high, while profits have risen by and its stock price was barely Too often, however, OD gets people officer at McDonald’s Corp., 4.5% since CEO Steve Easterbrook took budging upward. And, unfairly or not, “switched on and off”—brought in to which is itself a global symbol of over in 2015. According to data from McDonald’s bore the brunt of criticism help solve a particular issue, and then commerciality and entrepreneurialism. Technomic, total sales rose 2.4% last over the fast-food industry’s role in the abandoned once the issue is resolved, Beginning with a single hamburger year to $38.5 billion. nation’s obesity epidemic. says Fairhurst. Instead, OD should stand in San Bernardino, Calif., in Easterbrook, who’s led a Meanwhile, consumers were be “always on”—driving scenario 1948, founders Richard and Maurice turnaround at the company that’s showing an increased preference for planning and conceptualizing the shape McDonald pioneered a system in resulted in cost savings of $500 fresh, healthy alternatives to traditional the organization will need to take in which burgers, fries and milkshakes million, moved Fairhurst into the top fast-food items, or for newer chains such order to deliver against those plans. were produced with assembly-line HR job shortly after becoming CEO. as Chipotle and Five Guys Burgers. “Always-on OD” can also help ensure efficiency. They later partnered with Easterbrook had previously served “Our heritage was about the organization can adapt quickly to Ray Kroc, a milkshake-machine as president of McDonald’s Europe, understanding our customer, but the changing business needs, he says. salesman who greatly expanded their where Fairhurst was chief people challenge was that our customers’ As part of the organization redesign, franchise operations. In 1961, the officer. needs had moved on, and we hadn’t McDonald’s various markets—which McDonald brothers sold the business “I have the privilege of working kept up as well as we should have,” says traditionally had been organized to Kroc for $2.7 million. Under his with a CEO who’s really a catalyst of Fairhurst. “We needed to reconnect according to geography—were

14 Human Resource Executive®

H9-19p14-16_1McDonalds.indd 14 8/9/2019 10:52:03 AM Corporate Executive Vice President, Chief People Officer David Fairhurst

GEORGE PAPADAKIS September 2019 15

H9-19p14-16_1McDonalds.indd 15 8/9/2019 10:52:17 AM Cover Story McDonald’s New Golden Age

reoriented toward being grouped in budget down and supported the market, “segments,” depending on which stages but there wasn’t really an emphasis on of evolution they were in, he says. driving anything,” he says. “Working closely with Steve, we In order for the company to got to the point where we realized Here Are Some Goals David continue innovating, the culture had to that, although defining our structure change, he says. by geography had served us well Fairhurst Wants You to Consider Working with Ulrich, Fairhurst for 40 years, it was not the best way Teams matter: “You’ll know you’ve created a teaming culture when the created the slogan “Better Together” to support our business strategy,” biggest compliment someone can give you is that you keep losing your best to emphasize collaboration over says Fairhurst. “When you put people to rapid-action, cross-functional teams.” competition among the company’s markets together which have similar Build leaders at every level: “We’re supporting our people at every level various global markets. Rather than needs, challenges and opportunities, of the organization to become less managerial and more inspirational.” compete with one another, they were innovation happens more readily.” encouraged to share ideas, says Berube. Challenge every HR process: “Traditionally, HR has been too keen to follow Core functions such as HR and “One of my favorite parts about the established processes rather than question, objectively review and reinvent.” finance departments were also whole culture piece is that we’re very globalized, with the intent of allowing Run HR like a business: “Take a similar approach to zero-based clear on what we don’t do anymore,” he the business side to focus its attention budgeting: Make a business case for everything. Is every HR process says. “We’re not going to obsess about on operations, he says. making a difference? If not, consider eliminating it.” operational gains over customer gains, Develop ambidextrous leaders: “We need leaders who are comfortable for example, which we used to do.” Changing the Talent Model dealing with ambiguity/paradox.” Managers all the way down to the The changes at McDonald’s store level are encouraged to lead and Prioritize diversity and inclusion: “For far too long, D&I has been extended to the executive suite at something of a peripheral activity, often sitting as part of an organization’s be innovative, he adds. McDonald’s corporate headquarters in [corporate social responsibility] agenda. In some ways it still will, but only if Meanwhile, the centralized Oak Brook, Ill. (The company has since we change the definition of CSR to ‘core strategic response.’ ” reporting relationship with the various relocated to a new building in Chicago’s global markets has helped McDonald’s trendy West Loop neighborhood.) And finally: “Being a disruptor is tough—but being disrupted is even avoid duplicative efforts, says Berube. Working with Ulrich, Fairhurst tougher.” “We had this horrible problem of oversaw an “objective assessment” creating the same thing [multiple] of the business to gain a solid times,” he says. “Every country would understanding of what “world-class convenience. They’ve upgraded that Fairhurst has also emphasized go out and create their own trainings, leadership” means and how it would to ‘customer obsession’—as in, rather the importance of teams within the spending lots of money on the same apply to McDonald’s. than employees just smiling at the organization. training being done elsewhere.” “We wanted to see how we stacked customer, the customers smile back “Organizations are typically siloed Thanks to the centralized up against others not only within because they’re delighted with the into different functional areas, but the relationship, that sort of duplication no our industry sector but to leading service.” reality is that more of our work cuts longer happens—instead, frameworks businesses outside our sector as well,” The goal for Easterbrook and across those functions,” he says. are adopted companywide and tweaked he says. Fairhurst is to have an organization The company’s partnerships with to fit individual markets, says Berube. Fairhurst and his team eventually stocked with “ambidextrous” the Uber Eats and DoorDash online The corporate HQ move to came up with an acronym called managers—those who are comfortable food-delivery services are prime downtown Chicago is emblematic of “BEST,” for Building Blocks, Execution dealing with ambiguity and paradox, examples. McDonald’s was able to McDonald’s changing culture, says Proficiency, Strategic Proficiency and says Fairhurst. extend the services to its customers by Fairhurst. The new building features Talent Proficiency. quickly pulling together the right people outdoor terraces, an employee café “This highlighted the historic Reinventing Performance Management from around the world, irrespective with stadium seating and a layout strength we needed to build on while Fairhurst’s zest for shaking things of geography or function. In 2018, that features a mix of huddle rooms, helping us focus on the new muscle we up and questioning established ways of McDonald’s partnership with Uber Eats communal seating, private workstations needed to develop,” he says. doing things extends to processes such generated $3 billion in revenue. and private phone rooms. Building Blocks, for example, refers as performance management. “The future is about fluidity, agility “It’s designed in such a way to to the behaviors and traits most critical “What I hear is that performance and speed,” says Fairhurst. encourage collaboration,” he says. in an agile, growth environment, management in most organizations has The company is recruiting heavily on while Execution Proficiency refers to little correlation to the performance of An Evolving Culture college campuses, which had not been the ability to prioritize and get things the business,” he says. “It involves lots These days, it’s not enough for a priority before. done. Strategic Efficiency centers on of appraisals, processes and time but a McDonald’s to be focused on customer Meanwhile, every HR company making customer-led decisions to drive big question mark as to how it relates service—that needs to be redefined to process has been challenged—if it competitive advantage, and Talent to driving business performance.” customer obsession, says Fairhurst. doesn’t have a good business case, Proficiency relates to building the Fairhurst aspired to something “That’s a strong thing to aspire to,” then out it goes, says Fairhurst. capabilities of others. different at McDonald’s. he says. The employee experience has also All senior leaders at McDonald’s “We completely redesigned When Easterbrook arrived, he been prioritized, he says. “Attracting were assessed against the BEST performance management,” he says. began pushing franchisees to try talent is just one element of this. model. For the first time in the “You can’t manage performance, but new things, such as all-day breakfast. It’s also vital that people have a company’s history, each one was you can motivate it.” “This was something consumers said great employee experience, and we assigned an executive coach. Through The new PM model at McDonald’s they wanted,” says Derek Berube, the continue to innovate to ensure we’re an a combination of developmental is built around clear and effective goal company’s director of HR analytics. engaging and enjoyable place to work.” opportunities and replacement of some setting, performance feedback and By working closely with franchisees Ulrich says that, while Silicon Valley members of the team with new talent career-development conversations with and mandating that they upgrade and companies tend to get the lion’s share from within or outside the organization, managers, says Fairhurst. More than remodel their stores, the company has of attention these days, older companies McDonald’s executive team evolved to one person now delivers feedback, ensured that the customer experience offer valuable stories of reinvention. reflect a blend of internal and external and managers are required to have at at McDonald’s reflects the speed and “People often point to exciting HR experience, says Fairhurst. least one goal-setting conversation with efficiency they’ve come to expect while organizations at places like Facebook By 2017, nearly every senior leader direct reports at least annually. they also enjoy new perks, such as or Tencent, but those are relatively new on Easterbrook’s executive team was “We’ve gotten great results so digital menus and tableside delivery. companies,” says Ulrich. “McDonald’s new to his or her role. far,” he says. Eighty-seven percent These changes have been helped is an older company in an industry that “Steve and David have done a of employees report having had along by a reshaping of McDonald’s has huge headwinds against it, but marvelous job of redefining leadership goal-setting conversations with their corporate culture, says Berube. they’re turning it around.” for the next generation,” says managers, while 75% have received “Historically, you were considered a Ulrich. “Traditionally, McDonald’s performance feedback and 82% have very good performer here if you were Send questions or comments about DNA was all about cleanliness and had career-development conversations. able to influence others, kept your this story to [email protected].

16 Human Resource Executive®

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H9-19p17_WOMEN_IN_HRT.indd 17 8/1/2019 11:00:15 AM HR Technology

If you buy (or build) it, will they really come? BY TOM STARNER Driving HR-Tech Adoption here is little question that their own,” Pinc says. employers around the world “Nothing really sells will continue to invest in itself.” HR-related technology in the coming years. Earning Company-Wide The global HR- Buy-In management market, for Automaker General instance, is anticipated to Motors, for example, reach $30 billion by 2025, identified employee with a compound annual recognition as one Tgrowth rate of 11% over that time, of the top drivers of according to a new report by Grand employee engagement, View Research Inc. The report defines as well as for its the main HR-management market potential to accelerate as core HR, employee collaboration cultural change. and engagement, recruiting, talent According to management, workforce planning and Sandra Garcia, global analytics. compensation and That predicted spending spree global strategic on the horizon begs the question: initiatives lead at Will HR-technology adoption rates General Motors, meet expectations? In other words— culture alignment was borrowing a version of the tagline at the center of its from the popular baseball film Field revamped approach to of Dreams—if you buy (or build) it, recognition, for which it will they really come? It depends, say worked with Achievers, both experts and HR leaders who a provider of rewards have experienced recent success with and recognition HR-technology adoption. Importantly, technology. they note, high adoption/usage rates “We took 60-plus will only happen if HR leaders plan disparate recognition properly, a topic that will be explored programs and created in depth at the HR Technology a single unified Conference & Exposition® in Las program under one Vegas in October. recognition platform, “The idea that, if you just buy it globally aligned and roll it out, ‘they will come’ is not behind our company going to happen unless there’s an behaviors,” she says. effective strategy in place,” says Chris With that, the program enabled communications efforts on why Currently, GM has a 99% activation Pinc, director of product management, General Motors to provide a globally recognition is important, everyone’s rate, with seven out of 10 employees data surveys and technology line of consistent recognition experience for role in recognition and how to actively using the platform monthly. business at Willis Towers Watson. its employees and measure program effectively recognize employees,” she “Since launch, we’ve seen increases Pinc notes that planning needs to start success. says. in positive perceptions of recognition well before implementation and go-live When selecting its technology With strong messaging from the in our engagement survey and steady dates. Primarily, he says, HR must partner, Garcia explains, GM CEO and senior leadership integral improvements in program metrics,” work through what the technology determined simplicity and user to the plan, GM launched the Garcia says. “It’s the result of a provides for users, delivering concise experience would be key in driving new program to more than 68,000 robust program-sustainment strategy, messages focused on why adoption is program adoption. The company employees across the globe in August comprised of ongoing communication, a good idea in the first place. worked with Achievers to develop a 2017. In just three weeks, Garcia says, education and a phased rollout Regardless of the features and comprehensive communication and activation rates reached 87%, against of new programs and program functionality of new software, HR must training plan to ensure a successful a target of 80%. Since the launch, the enhancements—all aimed at boosting still take a proactive role to drive up launch. program has set the record for most program engagement and usage.” adoption rates. “As the recognition platform was activations in the first day of program Vanessa Brangwyn, chief customer “There are very few products so intuitive, we were able to focus launch (26%) in Achievers’ history. officer at Achievers, says that, for out there that drive adoption on 18 Human Resource Executive®

H9-19p18-24_2HRTech3.indd 18 8/13/2019 2:40:35 PM PEOPLE SIDE OF DIGITAL By Jason Averbook/Columnist

employee-experience technology to employing in performing their deliver value to company leadership, work. So, they will be relying less and HR departments and managers, less on someone’s degree as being employees need to actually use the Creatingthe a criteria, Window less and less relying to onthe Workforce technology, which is why Achievers someone’s sort of pedigree … as focuses on driving consistently high Every major enterprisebeing is the proxy forI how hope they you will caught that part. levels of employee participation, undergoing transformation.perform. Increasingly,It’s impossiblethey will be to be a purpose-led HR organization especially during implementation. If “we” (collective) HRgetting into skills-basedif you don’t assessments, measure purpose. Designing HR processes “To earn company-wide buy-in disruptors have donemore our simulations,based and ongreater workflows use of or that reek of compliance serve and drive productivity, we created a jobs, we’ve encouragedvirtual digital and augmentedthe HR realityfunction, to allownot the workforce. Flip the script. Start frictionless installation process for transformation to followpeople the to demonstratewith mindset whether and they design with the workforce in mind; the Achievers employee-engagement needs of the workforce,can actuallywhich perform,this is as how opposed you will to transition to a purpose-led people platform to take the burden off HR follow the needs of the customer. You can’t providetrusting they can.function. Rather than measure cost per hire, measure leaders and make it easier and faster value-adding service or goods to your market—and the sentiment of the workforce. Rather than measure to meet employees where they are,” you certainly can’t remain competitive while doing NPS, measure employee experience. she says. The platform also uses push so—without an engaged workforce that is fully equipped Think about measurement differently. HR technology notifications to mobile and email to and empowered to do their jobs easily and well. Happy is the intravenous that goes from the people function drive participation and engagement. employees, happy customers. In fact, stop separating the to each worker in a personalized, relevant, channel- Overall, Brangwyn says, Achievers’ two; your employees are your primary customers. sensitive way, with empathy built into it. Use it to customers report an average 86% This all leads to our obsession with employee measure experience and to deliver experience. activation rate, with 94% launch experience. What is the evolving role of HR professionals Constantly asking employees how they feel about their satisfaction. in crafting the organizational experiences of tomorrow? work or the way they do it can lead to survey fatigue. It begins with the realization that workforce experience And if it’s often done reactively, not proactively, that Consistency and Communication is the most important priority of the people function makes it difficult to do anything about it. Brunswick Corp., a publicly held (HR) in any organization—ahead of anything else. Let your systems tell you something about sentiment: company with annual sales over $4.5 It should be your obsession, HR. If you address this, Are workers logging into systems you thought they billion, chose a technology solution first and ahead of everything else, other priorities will couldn’t live without, or have they abandoned systems to re-energize its sagging wellbeing naturally fall in line. they find to be useless, confusing or cumbersome? program and drive employee Along these lines, I’ve heard a funny little expression When you measure sentiment at moments that matter engagement. According to Melissa about HR “looking in the mirror,” like it will help us through real use and application of your workforce tools, DiLeonardo, wellbeing program discover our true purpose or more clearly see our you begin to proactively optimize and design tools that manager at Brunswick, the company function in a new light. Rather than looking in the mirror can better support the workforce where they are. struggled to prioritize wellbeing in and expecting answers to jump out at us, why not turn HR has never seen a more immediate opportunity daily operations, which ultimately the proverbial mirror into a window through which you to design a workforce experience that measures and affected engagement, productivity see your workforce? delivers tangible impact to the business. That’s why and turnover. Brunswick, which has Employee experience must have purpose at the Leapgen is attending the upcoming HR Technology approximately 15,000 employees in center. Purpose is what today’s workforce cares about Conference & Exposition, Oct. 1 to Oct. 4 at the Venetian more than 30 countries, works in three when they choose where to work (and we are in a job in Las Vegas. Our entire team will be on hand to provide primary product categories: marine market and economy where people are in a position to guidance on building a strong core HR foundation, propulsion, boating and fitness. choose). Employees want to understand the mission of human-centered design thinking for workforce DiLeonardo explains that your organization, they want to feel personally connected experience, building a people-analytics practice and manufacturing employees endure to it, and it needs to align with their own values and more. Hope to see you at Booth #3022 and in my physically taxing, repetitive work and guiding principles. If you connect those dots—if they workshop on Oct. 3, where I will outline the difference strict shift hours that make it hard truly connect, organically and not artificially—and you between digital transformation and technology transition. to prioritize self-care. Alternately, sustain and support that over the long haul, you have employees in office environments created an engaged workforce that will drive real and Jason Averbook is a leading analyst, thought leader and are sedentary and susceptible to valuable competitive advantage. They will also tell you consultant in the area of HR, the future of work and the stress. Brunswick knew wellbeing what they need to continue to perform their best work impact technology can have on that future. He is the co- and engagement can help drive the for you; if you listen, this will determine where and founder and CEO of Leapgen, a global consultancy helping best business results, but its existing how you need to evolve and transform your business to organizations shape their future workplace. Send questions program wasn’t effectively reaching continue to meet their needs … if you listen. or comments to [email protected]. Brunswick’s complex population, a sentiment confirmed through a series of employee focus groups conducted at its larger sites. DiLeonardo says the previous from clinical wellness to holistic software, to help redesign its approach engagement through the Limeade wellbeing offering was dated and not wellbeing. to wellbeing as an engagement driver. Insights Dashboards. The program in tune with industry trends—such as So, leadership chose Limeade, A new wellness program, called Be needed to provide a simple, relevant shifting from ROI to VOI and pivoting a provider of employee-experience Your Best, launched last year to experience to manufacturing-line deliver relevant, employees, who have limited access whole-person to email and minimal time for “As the recognition platform was opportunities participating in wellbeing initiatives to its diverse during the workday, and communicate so intuitive, we were able to focus population and organizational support for wellbeing support wellbeing across all the company’s locations. communications efforts on why in every corner of DiLeonardo says that, when the organization. launching broader HR initiatives, one recognition is important, everyone’s Brunswick of the company’s key objectives is role in recognition and how to also committed to replicate the messaging through to a more data- any and all available communication effectively recognize employees.” driven approach channels. When it partnered with to tracking Limeade to power Be Your Best, it — Sandra Garcia, General Motors employee announced the changes with home

September 2019 19

H9-19p18-24_2HRTech3.indd 19 8/13/2019 2:40:53 PM Keynoters Create Your HURRY! Secure Barbara Corcoran Your Seat Now Star of ABC’s Shark Tank Competitive to Be Among the FEATURING Advantage BIGGEST Names Josh Bersin World-Renowned Industry Analyst in HR! At HR Tech, you’ll discover how to effectively leverage OCTOBER 1 - 4, 2019 technology to improve HR services, so you maintain a THE VENETIAN® | LAS VEGAS talented, motivated, productive workforce that is the envy of all others. Only HR Tech provides www.HRTechConference.com the insights your team needs to better strategize and make informed decisions Ravin Jesuthasan regarding the use of your current — Global Expert on the Future of Work or yet to be purchased — technology. 12 Content Tracks World-Class Speaking Faculty

Earn ANALYTICS MARKET LANDSCAPE Jeanne Meister Steven Seltz Jason Averbook Head of Compensation Founding Partner, Leading HCM Thought Leader & Benefi ts Strategy, Recertifi cation Future Workplace ARTIFICIAL INTELLIGENCE PROJECT SUCCESS Siemens Corporation Credits CORE HR RESEARCH INSIGHTS Jennifer Carpenter Tim Mulligan Sarah Smart Global Head of Talent VP Global Recruitment, CHRO, Vulcan Enterprise FUTURE OF WORK TALENT ACQUISITION Acquisition, Delta Air Lines Hilton Hotels HR EXECUTIVE TALENT MANAGEMENT Kelly Cartwright Andrew Saidy Head of Recruiting VP Talent Digitization, And MORE! HR TRANSFORMATION TECHNICAL SUCCESS Transformation, Amazon Schneider Electric 100+

See all Sessions at Martin Everhart Jonathan Sears 100+ Principal, EY People Advisory CHRO, RW Barnabas Health www.HRTechConference.com Services

Largest Exhibition of HR Technology Providers FRIENDS OF HRE HR Tech Talks Save $300.00 with PitchFest Competition SAVINGS Promo Code FRIEND300. Visit the Private Demo Rooms Solution Provider Sessions Diamond Sponsors Platinum Sponsors World-Famous Startup Pavilion HR Tech Expo Live Podcasts Gold Sponsor And more! The size of 7 football fi elds CD1907-8 | © 2019 LRP Publications

H9-19p20-21_HRT_EXPO.indd 20 8/1/2019 11:01:00 AM Keynoters Create Your HURRY! Secure Barbara Corcoran Your Seat Now Star of ABC’s Shark Tank Competitive to Be Among the FEATURING Advantage BIGGEST Names Josh Bersin World-Renowned Industry Analyst in HR! At HR Tech, you’ll discover how to effectively leverage OCTOBER 1 - 4, 2019 technology to improve HR services, so you maintain a THE VENETIAN® | LAS VEGAS talented, motivated, productive workforce that is the envy of all others. Only HR Tech provides www.HRTechConference.com the insights your team needs to better strategize and make informed decisions Ravin Jesuthasan regarding the use of your current — Global Expert on the Future of Work or yet to be purchased — technology. 12 Content Tracks World-Class Speaking Faculty

Earn ANALYTICS MARKET LANDSCAPE Jeanne Meister Steven Seltz Jason Averbook Head of Compensation Founding Partner, Leading HCM Thought Leader & Benefi ts Strategy, Recertifi cation Future Workplace ARTIFICIAL INTELLIGENCE PROJECT SUCCESS Siemens Corporation Credits CORE HR RESEARCH INSIGHTS Jennifer Carpenter Tim Mulligan Sarah Smart Global Head of Talent VP Global Recruitment, CHRO, Vulcan Enterprise FUTURE OF WORK TALENT ACQUISITION Acquisition, Delta Air Lines Hilton Hotels HR EXECUTIVE TALENT MANAGEMENT Kelly Cartwright Andrew Saidy Head of Recruiting VP Talent Digitization, And MORE! HR TRANSFORMATION TECHNICAL SUCCESS Transformation, Amazon Schneider Electric 100+

See all Sessions at Martin Everhart Jonathan Sears 100+ Principal, EY People Advisory CHRO, RW Barnabas Health www.HRTechConference.com Services

Largest Exhibition of HR Technology Providers FRIENDS OF HRE HR Tech Talks Save $300.00 with PitchFest Competition SAVINGS Promo Code FRIEND300. Visit the Private Demo Rooms Solution Provider Sessions Diamond Sponsors Platinum Sponsors World-Famous Startup Pavilion HR Tech Expo Live Podcasts Gold Sponsor And more! The size of 7 football fi elds CD1907-8 | © 2019 LRP Publications

H9-19p20-21_HRT_EXPO.indd 21 8/1/2019 11:01:15 AM HR Technology

mailers, email reminders, on-site fliers “We also developed a new participation at launch through and challenges. For example, one and posters, and HR demonstrations wellbeing program logo and aligned having single sign-on capabilities and successful effort had local “program during open-enrollment meetings. with company branding, so all straightforward, well-communicated champions” responsible for improving Senior and local leaders were also material is anchored in the same initial login instructions with customer adoption and supporting employee provided with program highlights visual cues/memory triggers,” adds support. Limeade also helps maintain inquiries. so they could incorporate reminders DiLeonardo. She says partnering Brunswick’s improved utilization with Within three months of the 2018 during other employee meetings. with Limeade helped improve a wide variety of available activities launch, 57% of eligible Brunswick participants registered, compared to 30% participation in its prior wellbeing program in 2017. Today, registration sits at 71% of eligible employees, HR IN THE FLOW OF WORK By Josh Bersin/Columnist with 87% of department managers participating in the program. According to WTW’s Pinc, creating champion networks, as Brunswick did, can work well in driving maximum HR-tech-adoption rates. 4 Ways to Kill Employee Trust The best example of the champion concept, he says, involves a group of employees—or even a single A wide range of tools and • Systems that predict retention may inadvertently champion in each office, or one on technologies now in use by discriminate against minorities or other groups who leave each team or in a department—who HR organizations around the the company because of corporate culture. are early tech adopters by nature and world are collecting volumes • Assessments for job fit may institutionalize old, go through training early. Pinc says of employee-related data. discriminatory hiring practices that are embedded into it’s best to choose employees who Outside of HR, companies are hiring history. are tech-savvy and adept at helping using systems that assess employee emails for network • Systems that use organizational-network analysis to others. analysis, record conference calls and video meetings, and identify performance may not factor in the role gender or “It’s typically easy to find those monitor employee activities through badges. While such age can play in work relationships. kinds of folks in any workplace,” he information can certainly be useful, it can also be a huge • Identification of high performers could be biased says, adding that HR needs to get that liability when misused. Additionally, what data a company toward individuals previously rated highly. group on board early so, when people collects and how they are used significantly impacts To counter such built-in bias, you need to monitor and have questions or get confused at any employee trust. train your analytics systems. In other words, look at the point along the way, they can turn to Below are four dimensions of trust that comprise the predictions and recommendations they are making, and their local champion and say, “I know ethical and fair use of employee data and analytics. inspect the results for bias. I’m supposed to use this new tool, but 1. Privacy: Every day, we read about companies that 4. People Impact: How the use of analytics impacts I can’t remember how to do it,” he have gotten into trouble because of compromised data employees is perhaps the most important dimension. says. privacy. As we bring in more and more data-collecting If employees believe they are being monitored for the technology into the HR function, data privacy must be wrong reasons, the impact will certainly be negative. Maximizing the Benefits an area of focus for HR leaders. Are we protecting the Therefore, your team should document how data Craig Johnson, a partner in privacy and confidentiality of our employees? Who has collected by every system capturing employee-related Mercer’s Workforce Communication access to the various types of information collected data are being used. In particular: & Change Group, offers the example automatically? Are employees informed about what data • Do not use monitoring data to surreptitiously inform of launching a new HCM system, are collected and how they are used? performance reviews. where it’s imperative that an adoption I see two equally important components to privacy. • Do not use any form of wellbeing data for succession strategy is strong both on training and The first is the establishment of rigorous privacy planning, performance reviews or any other form of communication with the workforce. policies that govern all employee-related data across the employee coaching. “We’ve seen companies who enterprise. The second is to be completely transparent • Do not use training data for performance evaluation. will actually communicate that with employees about what data are collected, how they • Do not cross boundaries between personal and something’s going live, but there are collected and how they are used. professional data. might not be any training available,” 2. Security: The sister of privacy is security. Are the In fact, it would be wise to do a legal review before he says. “Or, we see some companies data stored in a way that protects them from hacking, you start capturing data to ensure you are adhering conversely who provide some theft or misuse? Do you have password policies, to GDPR and HIPAA guidelines, as well as other training, but then there’s no follow-up encryption and other data-protection practices in place confidentiality protections. Focus your analytics communication or reminders. You so an employee can’t take the data home, send them to a program on strategies that positively impact people. If need both elements here.” third party or accidentally release them onto the internet? you’re tracking people to measure work productivity Johnson says HR must provide While IT has long dealt with the security of financial, to make work better, then you’re moving in the right context that lets managers know, for customer and competitive information, companies now direction. If you’re using the data to weed out low example, that, even though they may must implement security practices around employee performers, you’re probably violating your company’s not have been involved in onboarding information, such as pay, job history, healthcare data and management principles. before, the new HCM platform performance. My overarching recommendation is to use the recent changes that. 3. Bias: The newest and most complex problem consumer experiences with data as a guide. Companies “Now that they will be involved in related to people analytics is bias. Whether you are that expose massive amounts of consumer data have the onboarding process, HR needs analyzing the data yourself or buying an AI tool from a suffered in terrible ways. Today, trust is one of the most to clearly spell out their role and vendor, it is important to remember that all algorithmic important business assets we have. Take it seriously and responsibility and provide thorough systems are based on existing data. If the existing make sure your efforts to make management more data- training on the tool that enables them data are biased, the predictions and recommendations driven move in the right direction. to meet those new demands,” Johnson generated will also be biased. says. “You won’t have high adoption AI-based technology can actually reinforce or Josh Brsin is an analyst, author, educator and thought rates without the right combination of introduce bias in a number of ways, including: leader focusing on the global talent market and the training and communication.” • A system may compare an employee’s pay to that of challenges and trends impacting business workforces Brian Sommer, president and peers, but ignore factors such as race, location and age around the world. Send questions or comments to founder of TechVentive, which advises when assessing fair pay. [email protected]. technology and services firms on

22 Human Resource Executive®

H9-19p18-24_2HRTech3.indd 22 8/13/2019 2:41:07 PM thought leadership and sales training, says truly maximizing the benefits of new HR technology requires what he Influencers Make the calls a success chain. “You will make this work because you do your homework, your due diligence and you make an impressive Business Case for HR-Tech Investment business case, both with leadership and the workforce,” he says, IBM CHRO Diane Gherson and others weigh in on what it suggesting that, before anything else, HR leaders need to go out into the takes to gain C-suite approval for investing in HR tech. the organization—and I’ve yet to find field and “play in traffic.” BY HRE STAFF an executive who doesn’t think that is “That’s my term,” he says. “They the single most important part of their can’t just go to events like the HR business. Technology Conference in Las Vegas and be passive. They need to representing all population types, get involved and come away fully Below are excerpts of Q&As infuse their voices into your planning understanding the entire range of with several of our inaugural HR and test cycles, and continually audit possibilities that HR technologies can Tech Influencers about making the efficacy by confirming that device bring to bear.” the business case for investment enablement, ease of access, speed of Laura Hamill, Limeade’s chief in HR technology (for the full support and multi-channel touches are Ravin Jesuthasan people officer and chief science list of Influencers, visit http:// foundational to any deployment. Managing Director officer, notes that, in a recent hrexecutive.com/top-100): Willis Towers Watson study from Gallup, only 17% of U.S. What area of the HR function employees agree with the idea that will be most impacted by emerging their company “readily implements technologies? new technologies that help us be more Virtually every aspect of HR productive.” Mark Stelzner Tim Sackett is a candidate for some form of “It’s a signal that employees don’t Founder/Managing President process or cognitive automation trust their employers to implement Principal HRU Technical (i.e., AI). While we have seen much technology that’s in their best Inflexion Advisors, Resources progress in recruiting, given the data interest,” she says. “The impact? LLC What’s the most dramatic shift intensity and repetitive nature of the Low utilization or worse—a sense of What’s the most dramatic shift you see happening in the HR-tech workflows, creating opportunities negativity or even hostility when it you see happening in the HR-tech space today? for advanced analytics and process comes to using HR tech.” space today? Intelligent automation and artificial automation, I believe this is just the Ultimately, boosting utilization The exciting (and relentless) pace intelligence being built into technology tip of the iceberg. As my co-author depends on creating a meaningful of industry innovation is requiring that can take on so many of the tactical John Boudreau and I described in our and compelling experience for unprecedented organizational agility. parts across every spectrum of what recent book, Reinventing Jobs: A 4-Step employees—an experience that’s done Whether due to legislative and we do in HR, recruiting, payroll, Approach for Applying Automation to for them, not to them, Hamill says. regulatory changes, maintenance benefits, LOD, compensation, etc. Work, leaders need to first deconstruct “We focus our approach on enhancements or scheduled releases, This type of technology is forcing the job or workflow to categorize showing employees that the employers must constantly triage and organizations to rethink what it means activities into three continuums in organization cares about them, which prioritize the absorption of net-new to be in every single role under the HR order to understand the optimal role our research indicates is a great capabilities across their HR portfolio. umbrella. and type of automation. The three way to create a place to work where Without thoughtful readiness, we are In acquiring and implementing continuums capture whether the employees are engaged and want to seeing organizations fall materially new technologies, what are the work is repetitive versus variable, stay,” she says. “When we do this, behind in the cloud. most common mistakes HR independently performed versus employees feel a sense of mutual How can HR leaders best organizations make? interactive and physical versus mental. trust and are more likely to utilize make the business case for HR- They don’t build in measurable What’s the most dramatic shift the solution—which is a win-win for technology investment? performance indicators within the you see happening in the HR-tech everyone.” Having secured approval for every process and technology. I’ve never space today? “Since the Limeade program business case we’ve ever authored, I once had an adoption issue with my It has been fascinating to see HR launched, we’ve noticed a change can state with confidence that it always HR- or TA-tech implementations functions shift from their legacy focus around the engagement, energy and comes down to core alignment with because we make sure that using the on process-enablement technology collaboration of our employees,” the organization’s strategic objectives. technology will increase performance, to automation solutions that enable adds Brenna Preisser, Brunswick’s A thorough and forensic discovery and that performance is measured— them to optimize the performance of chief human resource officer. “It process provides the content, but so, if you don’t use the technology, their workforces through substitution allows us to drive initiatives across the context is derived by exploring you won’t be performing well. It of highly repetitive, independently the entire enterprise, and it’s really whether employee experience, pretty much ends all adoption issues performed rules-based activities; resulted in great gains from a cultural cost reduction, cost avoidance, immediately. augmentation of more variable, often standpoint.” restructuring, de-risking, competitive How can HR leaders best interactive work; and creation of pressures and/or a foundation for make the business case for HR- new types of work that place greater Send questions or comments about growth are the drivers for enterprise technology investment? emphasis on the more “human skills” this story to [email protected]. transformation. The exact same way that a finance like empathy, creativity, etc. Are there certain strategies leader or operations leader or sales Are there certain strategies that are more effective than leader makes that same case for the that are more effective than others when it comes to getting technology they need for their function others when it comes to getting The HR Technology Conference your workforce to use new HR to be successful: Build the business your workforce to use new HR & Exposition® will be held Oct. 1 technologies? case around agreed-upon business- technologies? through Oct. 4 at the Venetian in Although seemingly obvious, success measures for your organization Start by defining the optimal talent Las Vegas. For more information, visit organizations should always put and make your case. We are trying to experience (TX) to understand the www.hrtechnologyconference.com. the employee at the center of every build the space shuttle from scratch— specific outcome (behavior) you are experience. Secure change advocates we are trying to increase the talent of looking for and deconstructing the

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H9-19p18-24_2HRTech3.indd 23 8/13/2019 2:41:21 PM HR Technology

underlying workflow to understand technology is going to replace an the role and type of automation to expert, knowledgeable, persuasive apply for various tasks. Understand recruiter who can compel and convert that automation should either a passive candidate with highly valued substitute, augment or create/ and scarce skills to become a new transform human work and be clear hire. about which of these outcomes you Buying slick technology without are trying to achieve. objectively identifying what problem such a system needs to solve, how it will work, who will use it and what measures will define whether it’s been successful. Without this rigor up front, technology is acquired but not Diane Gherson properly implemented, configured, Chief Human Resource integrated or optimized. The time it Officer then takes for the company to realize IBM the value of its investment, if ever, How can HR leaders best can be longer than the technology is Li Dong, vice president of Donghao Lansheng Group and chairman of the board of make the business case for HR- relevant. Shanghai Foreign Service (Group) Co., Ltd., spoke at HR Technology China in May technology investment? Are there certain strategies about how data and AI are fueling the Intelligent Age. The most important place to start that are more effective than is the business pain point. In our others when it comes to getting case, it was cost of replacing talent your workforce to use new HR (this was self-funding and provided technologies? 3 Mindsets Needed for the savings for other projects). Then, it Good, old-fashioned, boring was investing in AI (skills inference, change management. Technology personalized learning platform, is embraced and optimized when a matching candidates to openings) to thorough impact analysis has been solve the skills gap (not self-funding, completed, in advance, for every but strategically important). We group that will be affected by it. Only funded that from using chatbots to then can a company effectively engage take 40% of the volume from our HR the organization in closing the gaps service centers and by automating between the current state and the Intelligent Age much of our operations, starting with future state and preparing for a new BY JEN COLLETTA payroll, travel reimbursement and HR way of working. controls. Closing these gaps may require he modern HR function is humans’ emotional quotient and In acquiring and implementing any or all of the following: org-design increasingly being fueled machines’ intelligent quotient and new technologies, what are the changes, training, communication, by rapid changes in the humans’ subjective opinions with most common mistakes HR performance-management changes, economy and technology, machines’ objective calculations, he organizations can make? systems access, etc. Bona fide change prompting the need for said. We are now able to apply AI to management is the key to rapid collaboration among HR and Finally, HR leaders have to shift employee data for social-sentiment adoption and realizing the value of other parts of the business— their mindsets to focus more on analysis, organization-network analysis, new technologies. along with a shifting mindset creativity and collaboration, Dong said. skills inference, assessing flight risk How can HR leaders best to support those changes. “In the Intelligent Age, the and so on. Just because we can look make the business case for HR- That was the message information technology will realize at our employees’ emails or social- technology investment? Tdelivered to attendees at HR ubiquitous connectivity, fast media activity or comments in Slack HR leaders can best make the Technology China this spring by Li interactions and transform the channels doesn’t mean we should. Like case by expressing and quantifying Dong, vice president of Donghao business mode from traditional value all AI, we need to be transparent about the technology’s benefits in Lansheng Group and chairman of the chain-based to platform-based,” where the data come from and what economic terms—the language of board of Shanghai Foreign Service he said. “As a result, enterprises they are being used for. For example, business. Appropriate HR-technology (Group) Co., Ltd. Dong detailed how are required to design customized our sentiment analysis can pick up investments provide efficiency and today’s Intelligent Age—marked by experiences, interactive activities and tone, volume and themes, but not what effectiveness benefits, presently developments in artificial intelligence converge ecosystems for customers people are actually saying, or who and in the future. For example, and big data—is creating new driving by forging a creative and integrated is saying it. Email and social-media investing in automation that interfaces forces, higher efficiency and business mindset and creating a platform for activity are off-limits; for most of us, multiple systems can greatly enhance transformation, all of which are cross-industrial cooperation.” that is an invasion of privacy. efficiency now, while investing reshaping the HR function. Dong shared that his company, in technology that supports data To keep up with that evolution, HR FSG of DLG Group, determined in integration and deep analysis can leaders must first, Dong said, establish 2014 it aimed to transform into a greatly impact the effectiveness of a “human capital mindset,” rooted in technology-driven platform enterprise, future decisions. the concept that human resources must developing three platforms that Linda Brenner The greater the value of collective be distinguished from human capital, “enable customers and the whole Managing Director benefits, the more compelling the which he defined as “the combination of industry” with more intelligent HR and Founder business case for technology. It is knowledge, experience, technical skills SaaS products. “The company is Talent Growth usually easier to quantify efficiency and health conditions embodied in the growing into a globally competitive Advisors benefits, but invariably, effectiveness ability to perform labor so as to produce enterprise in human resources In acquiring and implementing is more valuable; hence, the need to economic value.” service,” he said, “by improving its new technologies, what are the sharpen skills to express effectiveness Second, a digital-driven mindset experience, efficiency and quality most common mistakes HR benefits in quantifiable (economic) is needed to propel collaborative through extensive technology organizations make? terms. innovation among humans and applications.” Believing that technology is machines. Stronger ties need to be going to replace deep expertise. In Send questions or comments about established on several fronts, such Send questions or comments about talent acquisition, for example, no this story to [email protected]. as between human wisdom and AI, this story to [email protected].

24 Human Resource Executive®

H9-19p18-24_2HRTech3.indd 24 8/13/2019 2:41:36 PM Benefıts

With specialty drugs accounting for an ever-increasing portion of total spend, plan sponsors are employing creative cost-cutting strategies. BY JULIE COOK RAMIREZ Prescription for Savings

rom the early days of the apothecary in the late 1890s until nearly a century later, prescription drugs were fairly mainstream—an antibiotic or pain medication, for example. Perhaps something to soothe an itch or relieve nausea. Later on, patients benefited from innovations like birth- Fcontrol pills and medications to ease the symptoms of anxiety. As the 20th century came to a close, however, an exciting new class of drugs made its debut. Known as specialty drugs, these advanced medications are used to treat complex or rare chronic conditions, such as cancer, rheumatoid arthritis, hemophilia, HIV, psoriasis, inflammatory bowel disease and hepatitis C. In recent years, these have become some of the most widely advertised drugs, with TV viewers regularly bombarded with commercials for Humira, Stelara, Remicade, Keytruda, Specialty drugs improve patients’ quality of life, extend life expectancies and can even cure disease, but those benefits come at Methotrexate and other medications. quite a high cost. According to Express Scripts, specialty drugs account for just 1% to 2% of prescriptions, but more than 40% of The ads boldly tout the benefits—and total drug spend in the U.S., stats that shine a light on the need for employers to consider a specialty-drug strategy. side effects—of these drugs and encourage patients to ask their doctor 12-week treatment course. Meanwhile, insurance carriers and self-insured costs—a topic sure to be on the minds if such treatments are right for them. the list price of Neulasta, which helps employers are struggling to figure of many at the Health & Benefits What they don’t say is these are some prevent infection in cancer patients out how they can possibly cover the Leadership Conference April 15-17 in of the most expensive drug therapies receiving chemotherapy, is $6,231 per astronomical cost of specialty drugs, Las Vegas—has likely resulted in a ever to be commercially offered in dose. which currently account for just 1% to greater number of employers adopting the U.S. (An effort by the Trump In May, the Food and Drug 2% of prescriptions, but more than 40% strategies over the past four years, administration to require that prices be Administration approved a new gene of total U.S. drug spend, according to according to David Dross, managing divulged in TV ads was struck down by therapy for spinal muscular atrophy, the Express Scripts 2018 Drug Trend pharmacy practice leader in Mercer’s a federal judge in July.) a rare disease affecting infants and Report. And that figure is projected Houston office. However, he believes The average monthly outlay for a toddlers. Pharmaceutical giant to rise to 50% by 2020, reports the employers still feel there’s not much specialty drug is $3,000, according Novartis has priced the one-time drug Pharmacy Benefit Management they can do to get a handle on costs. to Strategic Benefit Advisors. at $425,000 per year over five years. At Institute. “It’s the biggest issue in the However, many of the most commonly $2.1 million for a full course of therapy, pharmacy space, and employers prescribed specialty drugs cost far Zolgensma is now the world’s most Panic Mode recognize they need to take action, but more. Enbrel, which is widely used costly drug. While they recognize the challenge they don’t feel they have a whole lot of to treat rheumatoid arthritis, juvenile For patients, the benefits of these posed by the high cost of specialty options,” says Dross. idiopathic arthritis, plaque psoriasis innovative drug treatments are clear: drugs, less than half of employers had Paul Fronstein, director of health and other chronic conditions, averages They improve quality of life, extend enacted a specialty-drug strategy as research and education for the more than $4,000 per month, while life expectancies and sometimes— recently as 2015, according to a survey Employee Benefit Research Institute, Hepatitis C drug Harvoni averages such as in the case of Hepatitis drug by Mercer. A heightened awareness goes one step further, saying many $1,125 per pill, equating to $94,500 for a Mavyret—even cure disease. However, of the challenge of specialty-drug plan sponsors and HR executives are in

September 2019 25

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full-blown “panic mode” when it comes to getting their specialty-pharmacy but to watch for side effects and spend under control. The Benefits of Covering Benefits determine whether a dose adjustment “They want employees to get the By Kathryn Mayer is needed for maximum benefit, while right care, but they feel their hands are avoiding the waste that would come if tied with regard to the cost of these never set out to be an employee-benefits the patient had been provided a larger medications,” says Fronstein. reporter and editor—does anyone?!—but, supply of the drug from its initiation. That feeling of panic isn’t nearly nine years in, I can’t imagine a beat I’d Lincoln Financial Group has likely to ease up any time soon, as enjoy covering more. adopted a multi-faceted specialty- I In my years writing about the industry (I’ve specialty drugs are accounting for drug strategy that also incorporates spent the last few years as editor-in-chief of an ever-increasing percentage of the a pre-authorization requirement and Employee Benefit News), I’ve seen a lot of action— prescription-drug business. According a step-up approach, according to everything from the passage of the Affordable to Strategic Benefit Advisors, just 10 Care Act to fluctuations in employer-sponsored George Murphy, senior vice president specialty drugs were available in 1990. healthcare to ongoing fears over healthcare costs. of total rewards, HR technology and Today, there are more than 300 on More recently, it’s been about an exciting new crop operations. Rather than starting a the market, with another 700 in the of offerings. Dare I say that benefits are in and cooler than ever? patient on a specialty drug “right off pipeline. That intensifies the need for Though table-stakes offerings like healthcare and retirement remain vital the bat,” patients are started on a less employers to craft a specialty-drug components of a benefits package, a hot job market and an increased focus on expensive drug and then moved up strategy. Many are left to wonder if they employees’ overall wellbeing and work-life balance are bringing more attention “through the more expensive classes should even try to cover such drugs or to such benefits as student-loan-repayment programs, generous paid-leave of drugs” if they are not achieving the exclude them from the plan altogether. programs, caregiving and tuition perks. (And it’s making my job a whole lot of fun!) desired result. This approach not only “There are concerns around ethics. How much does this matter? Nearly everyone is an employee, and changing saves money, explains Murphy, it also Do we cut off specialty at a cap? Do we benefits are changing the workplace. This multifaceted industry is having a results in more effective treatment for give a lifetime amount? Do we exclude direct impact on millions of workers’ lives, happiness and financial security. that particular individual. gene therapy because it’s going to Benefits are at the heart of a job, and smart HR executives are taking note. “We want to make sure we are cost millions of dollars?” says Kelly That’s why I’m excited to join Human Resource Executive® to cover this getting the most effective drugs into Chillingworth, senior vice president beat and to chair HRE’s annual Health and Benefits Leadership Conference, our employees’ hands, not necessarily and pharmacy practice leader at which will take place April 15-17 in Las Vegas. In both roles, I hope to share the most expensive ones,” says Lockton Cos. “Employers don’t want to my love of benefits, to tell stories that matter to senior-level HR leaders and to Murphy. “The difference could be discriminate, but they don’t see these meet people who are eager to change the industry. related to how a person metabolizes In the meantime, I’d love to hear from you. Please send story ideas, tips and costs as sustainable.” drugs in their system.” comments to me (or just say hello!) at [email protected] or find me on Twitter @ According to Fronstein, the While some specialty drugs are mayereditor. easiest approach is to simply increase taken orally, the majority are injected or co-pays or deductibles. While he infused, thus requiring administration sees a great deal of interest in that claims costs in the long term,” says and other utilization-management by a medical professional. That opens strategy, Fronstein says, it’s not an Guinn. programs help an employer keep a lid the door for employers to practice site- effective means of controlling costs Still, Guinn recognizes the need on costs, while also ensuring a given of-care management, another promising because asking an employee to pay to adopt an aggressive strategy for drug is appropriate for a patient’s cost-control strategy, as patients are an extra $1,000 or $2,000 will do little reigning in the cost of specialty drugs, specific condition. encouraged or required to access to chip away at a $50,000 or $60,000 which, she says, represented the “Ensuring the drug is clinically treatment through less expensive pharmaceutical cost—and may largest growth area in medical and appropriate is the first key to managing providers. Lincoln Financial Group even damage employee morale or pharmacy benefits for BenefitFocus specialty drugs because you don’t practices this strategy, which can result discourage employees from taking a during the 2017-2018 plan year. want to pay for drugs that you know in significant savings. Chillingworth necessary medication to avoid the hit “Our ultimate goal is to prevent clinically are not going to work,” says points to Remicade, commonly to their pocketbook. The result is a the ripple effect of high claims that Rosier. “You don’t want to use a drug prescribed to treat certain types of disengaged, sickly employee who may drive overall healthcare spend at for breast cancer that’s only been arthritis, Crohn’s disease, ulcerative cost the company more in the long run BenefitFocus,” says Guinn. “Our proven effective for lung cancer.” colitis and chronic plaque psoriasis. She because their condition is left to fester. primary strategy for accomplishing In addition to pre-authorization, says the cost to administer the drug in Chillingworth has a few clients this is to identify the chronic conditions Chillingworth recommends plan an outpatient hospital setting is double that have opted not to cover specialty present in the employee base, sponsors consider requiring the cost in an office setting. drugs at all or only cover them if identify the utilization and medication reauthorization, which she describes as “If you can incentivize or drive there are no other therapies available compliance by these employees and “a newer thing in pharmacy-coverage employees to have their drug treatment to treat a given condition. While that put specific programs and initiatives in land.” Under reauthorization, employees administered in an office setting instead certainly is the employer’s prerogative, place to educate employees and help will be granted six to nine months of a hospit al, you’re going to save $5,000 Chillingworth says, Lockton doesn’t offset the cost.” of coverage to determine if they are to $10,000, which otherwise would recommend that approach. Fronstein responding appropriately to the drug have been completely wasted money,” concurs, adding that it’s “going to Low-Hanging Fruit treatment. After that point, they must says Chillingworth. “There is so much be really tough to exclude” specialty In her first year at BenefitFocus, meet reauthorization criteria. low-hanging fruit where we can shave drugs if they have been approved by Guinn instituted a strategy that “We might ask for evidence that off some meaningful dollars by doing the FDA, Medicare covers them and employs a “step-up” approach, in which their viral load is dropping or their things that don’t impact member access they have been deemed medically traditional, generic drugs are tried inflammatory markers are under or quality.” necessary by the prescribing doctor. first. If the desired outcome is not control,” says Chillingworth. “If we While she’s seen other companies achieved, providers are then allowed find that it isn’t working, why would we Send comments or questions about excluding or restricting specialty drugs to step up treatment to incorporate want to continue paying for that drug this story to [email protected]. to save money, Misty Guinn, director of specialty drugs. indefinitely?” benefits and wellness at BenefitFocus BenefitFocus has also begun Employers would also benefit from Inc., has a “strong stance” against the requiring pre-authorization to verify limiting the initial supply of a specialty The Health & Benefits Leadership strategy, which she calls “short-sighted.” that a specific drug is medically drug to 30 days, according to Brian Conference will take place April 15-17, “The negative impact on employees’ necessary. According to Nadina Marcotte, president and CEO of the 2020, at Aria Resort & Casino in Las wellbeing comes into play and, in that Rosier, health and group benefits National Business Group on Health. Vegas. For more information, visit sense, it’s not allowing them to achieve pharmacy practice leader at Willis That allows sufficient time to assess www.benefitsconf.com. better health and could lead to higher Towers Watson, such pre-authorization not only the effectiveness of the drug,

26 Human Resource Executive®

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CEOs as well, whose pay has also increased over the past few years.” The 2018 top 10 features four women. Overall, 56% of the top earners are women, compared to 50% in 2017 and 38% in 2016. Yu notes a number of factors that could be at play in the diversifying of the list. “As some executives step down over time, they may be replaced by someone of the opposite gender,” she says. “In addition, the top HR officer isn’t always one of the top- five highest-paid executives, so some of these executives might continue to be similarly paid in future years, but they won’t crack the highest-paid list because they weren’t one The of the highest-paid in their own company.” Nancy Phillips, CHRO at Nielsen Holdings, was deemed the biggest winner, jumping from the 40th spot in 2017 to 16th last year, earning $4,290,209. Neil Marchuk, Upward executive vice president and CHRO at Adient, dropped from second place in 2017 to 34th The group of last year, earning $2,586,743; Marchuk resigned in February top-earning HR 2019. execs reported Together, the top 50 earned $182,166,219, compared to an 11.6% increase $163,189,832 in 2017. Trend Continues As a percentage of CEO in compensation pay, the average compensation or the second year in a row, the average annual for HR leaders was 39%, an increase from 32% in both 2017 and packages in 2018. compensation package increased for the 50 highest- 2016. The average CEO pay in 2018 topped out at $13,482,785, paid HR executives named in filings with the Securities compared to $11,887,974 in 2017. and Exchange Commission in 2018. The average All top 50 HR executives received full-value stock awards, BY JEN COLLETTA compensation increased last year by 11.6% to $3,643,324, up from 98% of the top earners in 2017. The average value of on the heels of a 7.8% increase in 2017, and a decrease of full-value stock awards increased 20.4% from 2017 to 2018, to 6.1% the year before that. $1,990,654. The prevalence of stock-option awards increased Topping the list was Philippe Krakowsky, executive slightly from 54% to 56% between 2017 and 2018, while the vice president and chief strategy and talent officer, average value shot up 16% to $432,649. chairman and chief executive officer of IPG Mediabrands Fewer top earners received a bonus last year, with 88% taking Fat the Interpublic Group of Companies Inc., who took home home a bonus, compared to 94% in 2017. The average bonus $7,800,456. He was followed by Abbot Laboratories’ Stephen decreased 4.6% between 2017 and 2018, to $639,633. Fussell, who earned $6,685,518, and Mark James of Honeywell As for base salaries, CHROs earned, on average, $542,059 in International Inc., whose total compensation was $6,546,808. 2018, compared to $534,859 in 2017 and $523,921 the year before. The 2018 HR’s Elite list was culled from a universe of 267 On a per-employee basis, average HR-executive pay decreased former and current HR executives at Russell 3000 companies who to $696, compared to $747 in 2017. At the high end, Scott Milsten, were among the five most highly compensated officers in their senior vice president, general counsel, corporate secretary companies and were therefore included in those organizations’ and chief people officer at e.l.f. Beauty Inc., earned $8,390 per filings with the SEC. (In 2017, 224 former and current HR employee. On the opposite end of the spectrum, Lowe’s Cos.’ executives made the cut.) Executive Vice President and CHRO Jennifer Weber earned $15 In determining the rankings, Equilar calculated total per employee. compensation as the sum of base salary, discretionary and The largest employer on the list was the Walt Disney Co., with performance-based cash bonuses, and the grant-date value of 201,000 employees; its CHRO, Mary Parker, jumped four spots Editor’s note: The year-to-year stock and option awards. (Benefits and perquisites were excluded to the fourth position, earning $6,347,065. The smallest was e.l.f. trends in this analysis and from the calculation.) All compensation values were taken directly Beauty Inc., with Milsten earning $2,324,096 and dropping 15 the accompanying chart are from the summary-compensation table for each company’s proxy spots from the 2017 list. based on a recalibration of the statement. The annual revenue for the top 50 companies averaged $15.6 2017 HR’s Elite list, which was Like last year, all 10 of the top earners brought home more billion, down from about $15.7 billion in 2017 and $16 billion revised after HRE published than $4 million. the year prior. The average workforce size increased to 49,400 the rankings last year in “As the economy has done well over the past couple of years, employees, up from about 44,720 in 2017, which also increased order to match the inclusion that has benefited companies and their executives, whose pay is from 40,000 in 2016. methodology employed in 2018. usually tied to company performance,” says Courtney Yu, director of research at Equilar. “This is similar to trends that we see with Send questions or comments about this story to [email protected].

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HR's Elite

HR Exec. 2018 2017 Pay as a % NEIP Stock Option Total Revenue Rank Rank HR Executive Title Company Name HR Total of CEO Pay Salary Bonus Payouts Awards Awards Other** Employees ($MM) 1 3 Philippe Krakowsky exec. v.p. & chief strategy & talent The Interpublic Group of Cos. $7,800,456 47% $1,250,000 n/a $3,528,125 $3,022,331 $- $187,193 54,000 $9,714 officer; chmn. & CEO, IPG Inc. Mediabrands

2 Stephen Fussell exec. v.p., HR Abbott Laboratories $6,685,518 31% $620,000 n/a $682,000 $2,691,621 $2,691,897 $97,779 103,000 $30,578

3 Mark James sr. v.p., HR, security & comm. Honeywell International Inc. $6,546,808 36% $774,231 $- $1,080,000 $3,519,537 $1,173,040 $53,150 114,000 $41,802

4 8 Mary Parker sr. exec. v.p. & chief HR officer The Walt Disney Co. $6,347,065 10% $996,938 n/a $2,100,000 $1,950,105 $1,300,022 $80,456 201,000 $59,434

5 7 Donna Kimmel exec. v.p. & chief people officer Citrix Systems Inc. $6,213,952 33% $446,250 n/a $572,181 $5,195,521 $- $62,193 8,200 $2,974

6 InaMarie Johnson * chief people officer Zendesk Inc. $5,292,145 169% $192,404 $50,000 $103,613 $3,192,750 $1,753,378 $102,522 2,700 $599

7 Tracy Keogh chief HR officer HP Inc. $5,148,187 27% $630,000 $- $1,421,536 $3,096,651 $- $39,800 55,000 $58,472

8 Alan May exec. v.p., HR Hewlett Packard Enterprise Co. $4,954,029 39% $590,000 $- $1,296,525 $3,067,504 $- $506,363 60,000 $30,852

9 12 David Johst corp. exec. v.p., HR, general Charles River Laboratories $4,857,518 36% $650,509 n/a $867,101 $2,682,666 $657,242 $411,881 14,700 $2,266 counsel, chief admin. officer International Inc. & corp. secretary

10 11 Steven Pelch COO & exec. v.p., organization Emerson Electric Co. $4,590,560 31% $550,000 $700,000 n/a $3,340,560 $- $80,130 87,500 $17,408 planning & development

11 Brent Hyder exec. v.p. & chief people officer The Gap Inc. $4,586,669 22% $686,539 $- $115,396 $3,354,430 $430,304 $170,141 135,000 $16,580

12 Patricia Wadors chief talent officer ServiceNow Inc. $4,508,129 27% $375,000 n/a $271,560 $3,861,569 $- $10,195 8,154 $2,609

13 Anne-Marie Law exec. v.p. & chief HR officer Alexion Pharmaceuticals Inc. $4,449,885 27% $650,000 $- $910,000 $2,889,885 $- $846,604 2,656 $4,131

14 Paulette Alviti * exec. v.p. & chief HR officer Mondelez International Inc. $4,367,929 30% $335,342 $500,000 $357,340 $2,837,324 $337,923 $48,673 80,000 $25,938

15 27 Adam Kokas exec. v.p., general counsel, Atlas Air Worldwide Holdings Inc. $4,343,622 65% $614,024 $- $2,037,347 $1,692,251 $- $171,375 3,275 $2,678 secretary & chief HR officer

16 40 Nancy Phillips chief HR officer Nielsen Holdings Plc $4,290,209 22% $500,000 $- $- $2,490,207 $1,300,002 $27,885 46,000 $6,515

17 Kathleen Scarlett chief HR officer & pres., U.S. Best Buy Co. Inc. $4,037,465 24% $684,615 n/a $1,444,451 $899,283 $1,009,116 $165,029 125,000 $42,879 retail stores

18 Jill Larsen * exec. v.p., HR & chief HR officer Medidata Solutions Inc. $3,991,071 39% $275,897 n/a $247,750 $2,967,424 $500,000 $167,111 1,998 $636

19 Ana White * exec. v.p. & chief HR officer F5 Networks Inc. $3,847,404 56% $280,380 $400,000 $166,933 $3,000,091 $- $4,400 4,409 $2,161

20 25 Tracy Skeans chief transformation & people YUM! Brands Inc. $3,739,022 28% $664,231 $- $824,766 $625,015 $1,625,010 $8,665 34,000 $5,688 officer

21 Aimee Hoyt sr. v.p. & chief people officer Illumina Inc. $3,707,979 34% $435,348 $- $371,910 $2,900,721 $- $149,192 7,300 $3,333

22 Christine Deputy chief HR officer Nordstrom Inc. $3,588,827 82% $604,587 $- $432,819 $2,551,421 $- $86,153 74,000 $15,860

23 Brian Stolz chief people officer Activision Blizzard Inc. $3,480,091 11% $685,936 $- $445,341 $2,348,814 $- $53,472 9,760 $7,500

24 Shelley Milano chief HR officer L Brands Inc. $3,319,090 93% $849,846 $- $996,408 $1,357,942 $114,894 $133,123 25,500 $13,237

25 Thomas DiDonato ◊ sr. v.p., HR Lear Corp. $3,253,425 34% $671,875 $- $467,625 $2,113,925 $- $220,244 169,000 $21,149

26 23 Marcia Avedon sr. v.p., HR, comm. & corp. affairs Ingersoll-Rand Plc $3,236,761 22% $643,750 n/a $736,527 $1,409,821 $446,663 $102,458 49,000 $15,668

27 15 Timothy Huval sr. v.p. & chief HR officer Humana Inc. $3,150,985 20% $590,921 $- $857,427 $1,291,525 $411,112 $162,451 41,600 $56,912

28 Lisa Buckingham exec. v.p. & chief people, place Lincoln National Corp. $3,030,920 22% $667,812 n/a $1,022,036 $961,292 $379,780 $187,329 11,034 $16,424 & brand officer

29 Danielle Kirgan exec. v.p. & chief HR officer Macy's Inc. $2,945,512 23% $750,000 $- $938,500 $777,018 $479,994 $199,471 130,000 $24,837

30 21 Linda Bradley-McKee exec. v.p., HR Aramark $2,841,759 18% $700,227 $- $541,500 $1,120,024 $480,008 $55,634 180,000 $15,790

31 24 Jennifer Weber exec. v.p. & chief HR officer Lowe's Cos. Inc. $2,783,812 20% $615,000 $200,000 $166,850 $1,342,653 $459,309 $60,567 190,000 $71,309

32 Carmel Galvin * sr. v.p., people & places, & chief Autodesk Inc. $2,726,803 30% $361,539 $50,000 $289,026 $2,026,238 $- $7,326 9,600 $2,570 HR officer

33 Ernie Meyer exec. v.p. & chief HR officer Portola Pharmaceuticals Inc. $2,709,863 47% $156,153 $75,000 $48,600 $895,500 $1,534,610 $127,499 324 $40

34 2 Neil Marchuk † exec. v.p. & chief HR officer Adient Plc $2,586,743 304% $655,000 $400,000 $- $1,531,743 $- $348,010 85,000 $17,439

35 Elizabeth Whited exec. v.p. & chief HR officer Union Pacific Corp. $2,547,371 20% $438,958 $- $608,000 $900,365 $600,048 $19,007 41,967 $22,832

36 Robin Kranich exec. v.p., HR Gartner Inc. $2,544,614 22% $475,405 n/a $449,775 $1,133,573 $485,861 $39,967 15,173 $3,975

37 Jenny Brandemuehl chief people officer Chegg Inc. $2,523,313 28% $398,333 n/a n/a $2,124,980 $- $6,125 1,087 $321

38 Anthony Webster exec. v.p. & chief HR officer Evoqua Water Technologies $2,465,320 20% $365,304 $635,000 $- $1,200,015 $265,001 $31,428 4,000 $1,340 Corp.

39 Kenneth Sawyer sr. v.p., HR & comm. Verso Corp. $2,459,911 34% $353,500 $124,950 $446,205 $1,535,256 $- $102,581 4,400 $2,682

40 38 Daniel Smith sr. v.p., organization & admin. Owens Corning $2,438,974 29% $562,500 $- $189,841 $1,686,633 $- $95,648 20,000 $7,057

41 35 Robert Ravener † exec. v.p. & chief people officer Dollar General Corp. $2,420,220 23% $578,875 n/a $416,595 $713,436 $711,314 $57,157 135,000 $25,625

42 Dennis Berger † exec. v.p. & chief HR officer AutoNation Inc. $2,391,110 19% $376,894 $- $264,250 $1,749,966 $- $286,398 26,000 $21,413

43 43 Kenneth Julian sr. v.p., admin. & HR Thor Industries Inc. $2,367,472 16% $500,000 $- $633,065 $1,234,407 $- $- 17,500 $8,329

44 44 Pamela Tondreau exec. v.p., chief HR officer, chief Cypress Semiconductor Corp. $2,329,746 33% $373,461 n/a $267,133 $1,689,152 $- $3,770 5,846 $2,484 legal officer & corp. secretary

45 Maurice Harapiak exec. v.p., HR & chief admin. Cleveland-Cliffs Inc. $2,329,288 16% $426,000 $- $1,243,866 $659,422 $- $40,680 2,926 $2,332 officer

46 31 Scott Milsten sr. v.p., general counsel, corp. e.l.f. Beauty Inc. $2,324,096 31% $325,000 n/a $- $1,499,096 $500,000 $5,500 277 $267 secretary & chief people officer

47 Sharon Brunecz * chief HR officer Amedisys Inc. $2,303,247 48% $215,385 $60,770 $63,583 $1,179,407 $784,102 $137,492 21,000 $1,663

48 34 Mara Swan exec. v.p., global strategy & talent ManpowerGroup Inc. $2,290,171 20% $610,000 $- $330,000 $1,080,150 $270,021 $67,788 30,000 $21,991

49 39 Pascale Meyran sr. v.p. & chief HR officer Capri Holdings Limited $2,249,973 16% $500,000 $- $250,000 $1,299,963 $200,010 $12,213 11,096 $5,238

50 42 Anup Banerjee sr. v.p., HR & chief development Snap-on Inc. $2,221,180 27% $449,003 $- $198,864 $841,521 $731,792 $48,508 12,600 $4,070 officer

**THIS VALUE IS EXCLUDED FROM HR TOTAL SOURCE: EQUILAR INC. (WWW.EQUILAR.COM) SYMBOLS ON EXECUTIVE NAMES: * NEW EXECUTIVE, † FORMER EXECUTIVE, ◊ NO LONGER HAS HR IN TITLE, BUT STILL WITH COMPANY The 2017 rankings noted on this list differ from those published in HRE in September 2018 because a new, broader methodology was used to determine this year’s list. To show accurate comparisons, the 2017 rankings were reconfigured using this same methodology. September 20182019 29

H9-19p29_EliteChart.indd 29 8/9/2019 1:13:40 PM HR Leadershıp

Rather than feeling bogged down by the increased demands, Laura Lee Gentry, vice president of talent and learning at Ultimate Software Group Inc., is invigorated and excited to be working in the current L&D environment. “It’s a very dynamic time for L&D,” says Gentry. “Change is the new normal, and it’s the responsibility of the learning organization to make sure that companies and their people are ready and able to adapt to the new future of work.” While learning and development has taken on a heightened importance, budget cuts and reallocation of resources have led many organizations to slash L&D staff. For Leah Minthorn, director of North American learning operations for Iron Mountain Inc., a data- and records-management company, that equates to the need to be skilled—and skill her L&D team—to serve as “learning consultants.” Unlike the traditional role, in which L&D professionals served as “order takers,” Minthorn strives for “consultative partnerships,” in which she and her staff get to the root cause of a problem, offer the most appropriate solution and deliver on it. “In today’s environment, learning and development leaders need to be strategic, consultative partners who can really convince business leaders of the value of learning,” says Minthorn. “The leader needs to engage with stakeholders to understand what makes the business successful and where there are gaps, so they can offer Learning by Example solutions for how L&D can make it even more successful.” Learning leaders are charged with overseeing the to hire based on soft skills, culture fit and a willingness to learn, rather than a Deeply Rooted development of the workforce, but how are they resume full of relevant capabilities and Responding to those heightened tending to their own developmental needs? experiences. demands requires a different set The result is a massive shift— of skills and competencies than from learning and development was typically needed to deliver BY JULIE COOK RAMIREZ mere generation ago, being a “nice-to-have” to an on organizational learning and learning and development environment in which L&D leaders development expectations, according was a vastly different are playing increasingly pivotal roles to Michael McGowan, managing proposition. Except in the success or failure of their director and practice leader of for those instances organizations, according to Tracy leadership and talent at BPI Group. In where “high-potential” Duberman, president and CEO of the addition to a thorough understanding employees were singled Leadership Development Group. With of “the latest and greatest in terms out to be groomed for the heightened importance of learning, of adult education,” McGowan says, executive positions, Duberman says, today’s chief learning today’s L&D leaders need skills “training” typically officers are partnering with the CEO around change management and Ainvolved a one-size-fits-all approach to align learning and development to organizational design, along with a that saw employees herded into mass organizational strategy. deep foundation of business acumen. sessions where they suffered through “L&D leaders are facing “Business acumen is a key skill boring presentations or watched unprecedented challenges and you don’t typically think about L&D outdated videos. Even hands-on opportunities to do some really leaders having or needing but, as I learning opportunities were done awesome work with individual talk to business leaders, it’s what they by rote, rather than tailored to an contributors, emerging leaders, high crave,” says McGowan. “They need individual’s specific needs. potentials and leaders, as they respond [L&D leaders] to be able to understand Driven by advances in technology to massive and significant changes how the business operates and, from and changing demographics, going on in their respective industries,” there, introduce, create and buy the today’s L&D landscape bears little says Duberman. “The biggest push right types of programs that will resemblance to that which existed is for L&D professionals to create help close skills gaps throughout the even at the arrival of the current programs and services that help organization.” millennium. Learning is increasingly their organizations execute on future At Ultimate Software, Gentry individualized, mobile and on demand. strategies. That requires playing at a credits her team’s business acumen At the same time, a shortage of skilled higher level, as the stakes are higher for its ability to be highly impactful, workers has led many organizations for L&D executives now.” although she personally didn’t have

30 Human Resource Executive®

H9-19p30-32_4Leadership.indd 30 8/9/2019 10:04:30 AM HRExecutive.com STRATEGIC HR INSIGHTS, ANALYSIS AND TRENDS FROM THE EDITORS OF HUMAN RESOURCE EXECUTIVE® HR Leadershıp

to cultivate such knowledge as an publications, watching TED Talks, and to learning and development, become too enamored of the “bright, L&D leader—she brought it with her. seeking advice and coaching from the according to Charles Bendotti, new, shiny thing,” according to Doug Before she began working in talent senior leaders of the organization. senior vice president of people and Lynch, senior fellow at the University management in 2011, Gentry was a That intellectual curiosity is a culture. Critical to the endeavor is of Southern California’s Rossier financial professional. She earned crucial component for any L&D communication, he says, as a major School of Education in Los Angeles, both her undergraduate and graduate leader striving to stay up to date with transformation entails helping people managing director of StartED New degrees in finance and embarked on a emerging trends, says Minthorn. “connect the dots” to determine York and author of Evidence Matters: professional career that included stints You don’t have to be a subject-matter whether they have a future in the new The Penn Handbook for Evaluation in in finance at both Smith Barney and expert in everything, she says, but organization and what skills are needed Workplace Learning. Rather, he says, Bell South. While that experience gave you do need to be “curious enough to to take them there. they should focus on designing and Gentry a “leg up,” she recognizes that understand someone’s day to day” in “We have to move from being an facilitating increasingly individualized other members of her team may not order to make recommendations that organization where we tell people what learning plans that combine an array of have the same advantage. To ensure will support their needs. Likewise, they need to learn to one in which modalities. that they, too, develop a deep business interpersonal skills, compassion, people share their learning together,” At Iron Mountain, “roles and acumen, Gentry sees that they are patience and understanding are critical says Bendotti. “That requires knowing responsibilities continue to evolve,” embedded in the business, sitting to building the kind of relationships each person well enough in all aspects according to Minthorn, requiring at the table with leaders, hearing that will enable an L&D leader to to clearly define what they need to learning leaders to create more adept the challenges business leaders are create a collaborative environment, develop in order to be successful.” L&D processes to keep up with the dealing with on a day-to-day basis says Minthorn. While Bendotti relies in part on changing environment. Increasingly, and responding with ways the L&D conferences and conversations with that means a blended approach that function can help. She also rotates Connecting the Dots his peers to help inform him of trends incorporates newer technologies, along members of her team throughout the With more organizations in the L&D space, he stresses that he with traditional learning experiences business to give them “cross-functional undergoing massive changes to is “very careful” when considering and good old-fashioned coaching. understanding.” better position themselves for future what strategies to employ at his “The blended learning experience “If you’re not delivering programs success, the learning and development organization. That’s especially true gives people what they need that’s that are delivering value to the function is further challenged—not when it comes to technological unique to their needs, as opposed to a business, you are wasting your only to retrain the workforce, but also solutions. one-size-fits-all model,” says Minthorn. company’s money,” says Gentry. “The to help the organization’s current “What we are facing is very “You have to reach all their senses, needs of the business are front and and future leaders develop their different from any other organization, so we start with e-learning, which is center for us, and all of our partners capabilities for leading during times of so I’m not sure anyone can tell me what an overview of what they are going to have to be serving a business need.” transformative change. Perhaps that we need,” says Bendotti. “What might experience firsthand in experiential While Gentry came to the world is best epitomized by New York-based be important for Facebook or Google learning, followed by on-the-job of L&D already well-versed in the Phillip Morris International. More than might be very different for PMI. It’s training and then ongoing coaching language of business, Minthorn 170 years after London tobacconist critical to do very introspective work to with a leader. That’s critical to giving has spent the entirety of her more Philip Morris opened his flagship shop, ask where we stand, where we want to people the tools they need to be than 20-year career in learning and the world’s most successful cigarette go, where are the gaps and how can we successful.” development. She recognizes the company has decided to transform move forward.” According to Lynch, L&D leaders need to align her team, resources and itself into a “science and technology- Indeed, while much has been are often amazing at developing others, initiatives with the changing demands minded company, actively working made of tech-enabled learning, mobile but not necessarily the most adept of the business. Admittedly, she doesn’t towards a smoke-free future.” learning apps and the introduction of learners themselves. Bendotti agrees, have the “best financial acumen,” Overcoming this “massive innovations like artificial intelligence equating the situation to the saying but is constantly striving to bolster challenge” requires a highly to the learning and development space, “the shoemaker always wears the her knowledge by reading industry personalized, individualized approach L&D leaders must be careful not to worst shoes.” “When you lead the learning function, you are very good at telling VOLUNTARY BENEFIT people what they should do, but you are not very good at learning yourself,” he says. Only for employees. Throughout his career, Bendotti Only from Nationwide®. has avoided that fate by considering himself a perpetual student and being eager to learn. 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Certain coverages may be subject to pre-existing exclusion. See policy documents for petinsurance.com/hrexec a complete list of exclusions. 2 Price based on state of residence and pet’s species. 3 Average based on similar plans kind of growth,” says Gentry. “We can’t from top competitors’ websites for a 4-year-old Labrador retriever in Calif., 90631. Data provided using information available as of December 2017. very credibly coach them on being Insurance terms, defi nitions and explanations are intended for informational purposes only and do not in any way great leaders if we aren’t modeling replace or modify the defi nitions and information contained in individual insurance contracts, policies or declaration pages, which are controlling. Such terms and availability may vary by state and exclusions may apply. Underwritten great leadership ourselves.” by Veterinary Pet Insurance Company (CA), Columbus, OH, an A.M. 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32 Human Resource Executive®

H9-19p30-32_4Leadership.indd 32 8/9/2019 10:04:47 AM CASE STUDIES IN HR EFFECTIVENESS Addressing Gender-Pay Gaps During Annual Salary Planning

Overview ALCAL Industries is Central and Northern California’s largest independent electrical distributor. It is the parent company of Alameda Electrical Distributors and California Service Tool. The two subsidiaries have 12 branches and provide one of California’s most respected offerings of electrical products, tools, tool- rental and repair services, safety equipment and project management. Challenge Prior to UltiPro, the company developed a compensation plan with bands and ranges for managers to apply to their employees, tied to specific employee ratings. However, because managers completed this salary-planning process manually on spreadsheets, they had difficulty comparing how their employees were ranked within the company’s compensation system. In addition, HR was required to invest a substantial amount of time reviewing the data manually once it received the spreadsheets back from managers. Solution ALCAL sought to provide managers with the process, while at the same time elevating our disparities that exist after the process are necessary visibility and insight to make the best conversation with managers about making non-discriminatory. pay decisions and selected UltiPro, going live in decisions that are fair and consistent,” says “The Pay Equity report is highly visual, easy April 2018. Paulsen. “HR is no longer viewed as an enforcer to use and simple to run because it is integrated “UltiPro Compensation Management of compliance and laws, but rather as a trusted into UltiPro Compensation Management,” ensures that our managers understand our advisor regarding meaningful compensation says Paulsen. “We can see easily if employees compensation plan and have clarity around the decisions. UltiPro has made managers more are falling outside of recommended ranges factors that drive it,” says Courtney Paulsen, sensitive to, and responsible for, a fair and without having to move over to UltiPro Business HR analyst at ALCAL. “As managers input their equitable culture.” Intelligence. Thanks to the ease of exporting changes into UltiPro, they can see compa- data out of UltiPro, I am also able to run my ratios in real time and have instant visibility Results own manual descriptive analysis, linear-trend into all their employees. UltiPro’s flexibility According to Paulsen, UltiPro’s Pay Equity analysis, forecast analysis and correlation and analysis tools enable managers to identify report provides HR with the transparency matrix. Although I ran my own review outside of pay disparities, even when men and women to be more proactive with its annual UltiPro, it returned the exact same results as Pay are in different roles with different pay ranges. compensation process and to ensure that any Equity.” Managers are able to make corrections when women’s compa-ratios are falling at the low end, with recognition made easier because the performance ratings are also visible. As a result, HIGHLIGHTS managers can make better decisions, without Organization : ALCAL Industries relying on HR, and before HR runs its official analysis.” Headquarters: Hayward, Calif. Paulsen notes that UltiPro makes the review and approval paths simple to set up, and the Primary Business: ALCAL provides a respected offering of electrical products, next level of management is also able to gain tools, tool-rental and repair services, safety equipment and project management. broad insights and easily compare manager Challenge Faced: ALCAL developed a compensation plan with bands and worksheets. ranges, but managers had dif culty comparing how their employees were ranked. “UltiPro Compensation Management expedited our compensation-management

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H9-19p33_CS_UltimateSoft.indd 33 8/8/2019 2:10:41 PM CASE STUDIES IN HR EFFECTIVENESS How Aon Drives the Search for Top Tech Talent in the Digital Age

igital transformation is changing how organizations operate, and CHROs Dhave an opportunity to lead the charge. Creating a workforce for the digital age will involve defining new jobs and career paths. The case study below offers an example of how Aon partnered with an organization to re-engineer its rewards framework to attract and retain top talent in a competitive market. Situation A trucking and logistics company located in a small East Coast city had a strong company culture and attractive employee- value proposition. However, because of its location, the company faced difficulty attracting the talent it needed to move its business into the future. Employees with the right set of digital skills are already in high demand for companies across all sectors. Additionally, our client also faced unexpected competition for in-demand technology talent from a large telecommunications conglomerate headquartered in another city, which broadened the scope of peers our client traditionally viewed as competitors for talent. Challenge The company had previously hired mostly pay for these jobs, as benchmarking insights recognition program and greater opportunity local talent but, with its industry facing digital revealed that the company simply wasn’t for career progression. By helping the disruption, it has become more dependent on offering market rate for the types of in-demand company reimagine its career framework and technology. The business needed a workforce jobs it needed to fill. organizational structure, Aon was able to help with strong skill sets in data analytics, it create a more compelling employee-rewards cybersecurity and artificial intelligence. In order Results experience that attracted the type of talent it to find these skills, the company had to go to Beyond our approach to developing a new was seeking and engage its current workforce. other locations outside of its normal target rewards structure for future jobs, the company For more information about how Aon is talent pools. Finding employees with these skills also had an older rewards system in place helping organizations reimagine their rewards also meant the company needed to review its that it found wasn’t resonating with younger programs to identify, attract and retain approach to rewards to attract new types of workers. These employees were typically drawn top talent in the digital age, visit aon.io/ talent. to factors such as a more dynamic employee- DigitalWorkforce. Solution The company worked with Aon to HIGHLIGHTS completely reimagine and re-engineer its rewards framework from the ground up. Aon Organization: A trucking and logistics company started by rebuilding the organizational chart using proprietary methodology, performing Headquarters: A small East Coast city comprehensive data benchmarking for more Challenge Faced: Hire for new types of jobs to enable digital transformation and than half of the company’s jobs and then engage current workforce. developing a new salary structure specifically to attract tech talent. Rewards opportunities Solution: Revamp the current rewards plan and career framework to offer more for the types of new jobs the company was competitive compensation and a more compelling total-rewards plan that meets targeting differed in important ways from the the desires of a younger generation, as well as introduce exible career paths. client’s traditional rewards plans. The analysis found that the company needed to offer higher

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H9-19p35_WC_CONF.indd 35 8/5/2019 2:23:34 PM Talent Management

cross-platform distribution; and, most importantly, create real-time graphical representation of the data using dashboards, heat maps, alerts, graphs and more. The creation of the survey questions, facilitated by support from the vendor, Taylor says, adds an important dimension to the process. He can select questions from those provided by the software, which allows him to benchmark the company relative to other Culture Amp customers, and he can also get help in phrasing his own questions. For example, he discovered through this process that a question he intended to include could provide more meaningful results if asked as two separate questions. Armen Berjikly, senior director of growth strategy for Ultimate Software, which makes UltiPro Perception, agrees that the wording of survey questions can be key to getting accurate results. “People speak of things in different ways,” he says. “Sometimes, that’s a function of their position in the company, sometimes their experience.” An entire survey, Berjikly says, can fail to provide accurate results because of a few misplaced words or sentences. Distribution of the surveys is virtually automatic, and employees can access them on any device. Taylor says he keeps surveys short enough so that participants can complete them in less Keeping your Finger on the than three minutes. “If the surveys are too long, employees get tired and don’t consider the responses carefully,” he says. Josh Bersin, global industry analyst, agrees that the standard annual surveys take too long to administer and for results to be compiled—and they rarely provide the information Pulse of Engagement a company needs to solve its problems with employee engagement. New survey products provide continual data on employee Accordingly, many companies turned engagement. Here’s how to make the most of them. to outside consultants to administer the surveys and analyze the results. “It could take months before BY LARRY STEVENS ike many companies, Nasdaq Nasdaq solved that problem using companies got meaningful, usable had been conducting annual Culture Amp, a real-time survey data, if they got them at all,” Bersin surveys among all its product it launched at the start of this says. The new breed of products that workers to gauge employee year that, Taylor says, makes it easy to provide both surveys and graphical satisfaction: Were they happy conduct surveys and interpret results. interpretations are less expensive with how they were being Without much effort, the company was than hiring consultants, easier to use compensated? Were they able to increase the number of surveys and provide immediate, actionable getting the training they to four a year. Equally important, the data. “Companies that need to gauge needed and the recognition data are more granular—indicating employee engagement should at they desired? Did they see results to line managers. “Now, we can least familiarize themselves with the Lthemselves remaining at Nasdaq? gauge employee engagement down capability of these tools,” Bersin says. The results rendered a clear to teams with as few as four people,” picture of how well the company was Taylor says. He adds that he can Getting Managers on Board engaging its workforce. But there actually get even more specific than For the implementation of a new was a big shortcoming with this four people, but that would threaten survey solution to be successful, method, according to Rich Taylor, anonymity, which is essential to getting managers have to support it. Taylor vice president of employee experience honest responses, according to all acknowledges that, at first, some were at the company. “The data we got experts interviewed for this article. worried that the tool might show faults from the surveys weren’t actionable,” Culture Amp is one of a number of with their management process. Once he says. Because the survey didn’t real-time survey tools, which include the rollout began, however, their worry pinpoint specific problem areas— Glint, UltiPro Perception, TinyPULSE turned to curiosity; they wanted to teams, managers or departments, for and Deloitte EngagePath. These know how well they were doing. instance—there was no way to help products facilitate the creation of “Before, managers had no way of underperformers improve. survey questions; provide for survey really knowing what was in the minds

36 Human Resource Executive®

H9-19p36-37_5TM.indd 36 8/9/2019 4:32:31 PM of employees they worked with,” he says. In general, managers were pleasantly surprised at how engaged 4 Best Practices for Employee-Engagement Surveys their teams were. Still, most managers found areas to work on. So, Taylor According to JD Peterson, chief growth officer at Culture AMP, architects of and other members of his department asked them to develop action plans to employee-engagement surveys should follow these basic principles: shore up areas of concern. “We asked them to prioritize one or two things that they would work on and hopefully 1. Only survey as often as you can take action. It’s not “survey fatigue,” improve before the next quarterly ✔ survey,” Taylor says. it’s “lack-of-action fatigue.” For example, if managers receive low scores from their teams on a question like, “I see good career ✔ 2. When taking action, select one focus area, two actions and communicate opportunities at Nasdaq,” they may hold regular one-on-one meetings the plan three times. with employees to discuss career paths at the company. Managers who are at a loss to determine how to fix ✔ 3. Democratize the concept of engagement. Share data, and be transparent a problem can also turn to the tool, which provides some suggestions. about what you expect of others to build a culture-first company. More importantly, managers can seek help from the company’s employee ✔ 4. To build trust and support from end users, communicate your intentions experience department, whose members have expertise in solving for collecting feedback clearly and frequently. employee-engagement challenges. At Nasdaq, the primary purpose of the surveys is to help managers, not as a tool for evaluating managers’ performance. However, Taylor says, company began including employees But, with the tool, we can actually onboarding process as well. This is he would be hesitant to recommend at the line-management level did it measure the benefit of it by comparing especially important since many of its someone for promotion who begin to see significant improvement in rolled-up data quarter to quarter,” she workers do not sit in traditional offices, consistently gets poor grades from engagement, as measured by Glint. says. where there is regular interaction those he or she supervises. He’s also So, when she implemented Glint These tools can also be applied among managers and those who work had to have a few difficult talks with at DocuSign, she says, “I wasn’t when seeking to measure effectiveness for them. “Many of our employees managers whose teams struggled with going to make that mistake again.” and improve specific corporate work in a distribution center where engagement, asking if they think they The company rolled out access to the programs. For example, Andrew they’re pulling product and shipping, are in the right position. “I suspect, as software to all managers. She says Bohacek, talent success manager at not having one-on-one talks with we move on and have more surveys the intuitiveness of the tool virtually Duluth Trading Co., says his company their supervisors,” Bohacek says. In under our belt, we will be having more eliminated the need for training, uses UltiPro Perception to, among addition, many people in the customer- of those types of conversations,” he other than a brief introductory other things, fine-tune its 45-day support area work from home. says. video. “Generally, I just tell people, onboarding process. In order to survey workers, Duluth ‘Experiment with the dashboard. You “Previously, we used products like passes around an iPad and also has Inclusivity is Key can’t break it.’ ” SurveyMonkey, and that gave us a kiosks around the distribution centers. Other companies use survey tools Glint provides alarms to indicate general idea of whether we were doing The survey takes only a few minutes to help managers help themselves. areas that need work, but the specific a good job of onboarding,” he says. to complete. The fact that the workers “We don’t even see the results from actions managers take are up to “But it didn’t give us the granularity don’t identify themselves on the individual managers,” says Joan Burke, them. For example, Burke found she we needed to improve the onboarding mobile devices—and, in fact, are not chief people officer at DocuSign, which was weak in the area of employee program.” even using their own devices—gives has implemented survey product Glint. recognition, so she convened focus For example, if a training program them the reassurance many need that “Executives only see the roll-up results groups to hear specifically what was rated poorly, was it the medium their responses are private. Once the from all managers.” workers felt was missing. in which it was presented? Was it survey is completed, heat maps show DocuSign gave all managers the The tool itself can provide some the length? Was it too boring or too managers areas that the company ability to see their teams’ survey suggestions, as can HR. At DocuSign, wordy? Was it sufficient? Was it too needs to pay more attention to, such as responses, a practice Burke believes because of company expansion, a large time-consuming? Says Bohacek, “It’s compensation, recognition or training. is essential to taking full advantage number of people were moved into great to hear that employees found HR Or, if problems show up in specific of survey results. When her previous management, creating a population of was helpful—but what specifically did departments, there might be a need for company implemented Glint, she managers with less than two years of the employee like or dislike, and why? leadership training of supervisors. was a bit nervous about potential experience. Accordingly, the company [These] were questions generalized The ability for HR to gauge problems with the company-wide recently initiated a six-month manager- surveys didn’t always answer.” employee engagement continually, rollout of a brand-new product, so, at training program, which, Burke says, Now, using real-time data from rather than once a year, is key in that company, she provided survey can include a focus on areas indicated UltiPro Perception, “We were able to today’s market, says JD Peterson, results only to people at the executive as weak by the Glint tool. completely revamp the onboarding Culture Amp’s chief growth officer. level. They reported the results were program,” he says. And while the “In today’s fast-moving business much easier to analyze than traditional ROI Implications company had been considering environment, there is a lot of row-and-column survey data, but they As with most technology rollouts, changes to the program even before change,” he says, noting mergers and didn’t always know how they could executive support is essential to getting the new tool, the surveys acquisitions, expansions, contractions, actually use the data to effect change. success—which often hinges on provided a roadmap. “We were no promotions, new hires and exits all Burke’s experience with Glint at her demonstrable ROI. longer just trying things to see if may affect employee engagement. “We former employer showed her that the Burke says the tool, in a sense, is they worked, with no data to actually need to be able to measure that effect “survey data were very interesting at a self-justifying. “The traditional answer determine scientifically if they were.” continually, not just once a year.” corporate level—and there are things when HR is asked to justify the cost Duluth uses Perception to you can do at that level—but they’re of a product is to say that, without the understand how employees are Send questions or comments about limited,” she says. Only when the program, we would be in worse shape. engaged after they complete the this story to [email protected].

September 2019 37

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People Compiled by Jen Colletta

American International Group Inc. BellSouth International and the Gillette Nettles comes to ManpowerGroup Schmidt has has named Karen Ling as executive Co. from Molson Coors Brewing Co., where worked in HR vice president and He holds a bachelor’s degree in she spent 20 years in various leadership leadership at global CHRO. She will business administration from Fundación roles, most recently as chief people and bank HSBC, Avis, lead the insurance UADE and a master’s degree in HR diversity officer. General Electric, organization’s global from Universidad del Salvador. She holds a law degree from the LEGO and Diageo. HR department, with University of Wisconsin-Madison and He earned a a focus on aligning Planet Fitness Inc. recently hired a bachelor’s degree from Florida A&M bachelor’s degree talent strategy with Kathy Gentilozzi as its chief people University. in commerce from long-term business officer. In this capacity, she will oversee the University of objectives. the fitness-center franchisor and Vestmark, a wealth-management Edinburgh. Ling was CHRO operator’s HR strategy, including talent partner that provides an SaaS platform, at Allergan for the last five years. She acquisition, organizational development, recently announced Nick Thurlow Phil Ulrich was recently has also held HR-leadership roles at employee engagement, benefits and as its chief people officer. Thurlow named chief HR officer atFlex , a Merck & Co. Inc., Schering-Plough and compensation. will be responsible for all HR strategy, manufacturing-solutions provider. Wyeth. She has more than 30 years of HR including talent management, employee Ulrich previously was senior vice Ling has a law degree from Boston experience, most recently as executive engagement, total rewards and president of HR for the electrical sector University and a bachelor’s degree in vice president of HR at FULLBEAUTY organizational development. at Eaton, a global power-management economics from Yale University. Brands. Gentilozzi previously held Previously, he was vice president of company, and also worked at Cooper HR-leadership positions at Aeropostale, HR and public affairs at global energy Industries Honeywell International. Ricardo Pravda is the new senior Macy’s and the May Department Store company InterGen Services Inc. He He earned a master’s degree in vice president and CHRO at Catalent, Co. also spent 15 years at Comverse Inc. in industrial/organization psychology a global provider of advanced-delivery Gentilozzi earned a bachelor’s various leadership roles, including as from Clemson University and a technologies and development and degree from Eastern Connecticut State vice president of HR, and also worked bachelor’s degree in psychology from manufacturing solutions. Pravda held University. at Boston Technology and Cabletron Presbyterian College. a number of positions at Catalent since Systems. 2005, most recently serving as vice Michelle Nettles has been named Thurlow has a master’s degree in Data-intelligence company Teradata president of HR for the company’s 30 chief people and business administration from Boston recently announced Kathy Cullen- global sites. culture officer at College and a bachelor’s degree in Cote as its new CHRO. In this capacity, Pravda has more than 25 years of global workforce- management, economics and sociology she will focus on workforce planning, experience across the HR function, solutions company from Hartwick College. talent management, learning and including in talent acquisition, HRIS, ManpowerGroup, development, and employee experience. compensation, succession planning, tasked with Jewelry company Pandora appointed Cullen-Cote has more than 30 years organizational design, performance leading HR and Erik Schmidt as its new CHRO. of experience in HR, most recently as management, acquisitions and culture across Schmidt comes to the company from executive vice president and CHRO divestitures. He has worked in HR the organization’s the CHRO role at Britax, a manufacturer at software company PTC. Previously, leadership at companies such as 80 countries and of child-safety products, whose previous she held leadership positions at Abbott Laboratories, Phillip Morris territories and its family of brands and CEO, Alexander Lacik, became the Johnson & Johnson, Raytheon, Imark International, Nabisco International, functions. CEO of Pandora earlier this year. Communications and Barry Controls.

38 Human Resource Executive®

H9-19p38_ Marketplace_People.indd 38 8/16/2019 11:07:58 AM By The Numbers Figures from the workplace and beyond COMPILED BY HRE STAFF

$183.8 million 159%

The amount recently awarded Percentage increase in the number of remote by the Department of Labor to workers in the U.S. since 2005. private-public apprenticeship Source: Global Workplace Analytics/FlexJobs partners to increa se career opportunities in IT, healthcare and advanced manufacturing. Source: Department of Labor 49%

Nearly half of surveyed employees say they 37% are investing in themselves by learning about artificial intelligence (e.g., machine learning) because their companies don’t provide training. Percentage of employers that Source: Randstad US have loosened job requirements in order to recruit talent; 72% of these companies have done so within the last year. Source: Adecco USA 27%

Percentage of employees who said their organizations are using technology well to better 2.8% attract and retain top talent. Source: Next Concept HR Association/Waggl The increase in average compensation for U.S. civilian workers between 2018 and 2019. Source: Bureau of Labor Statistics $700 million

Amount that Amazon plans to spend upskilling 100,000 One-third employees by 2025. Source: Amazon Proportion of workers who go without needed healthcare because they can’t afford it; this can increase the number of sick days they take by 70%. Source: Integrated Benefits Institute $3.1 billion

Amount that global HR-technology venture capital reached in 2018, more than triple the amount invested the year before. Source: The HR Federation

September 2019 39

H9-19p39_ByTheNums.indd 39 8/1/2019 2:16:32 PM SET YOUR SIGHTS ONJOBSOF THEFUTURE

As business leaders grapple with big-picture questions prompted by the digital economy, they must focus their vision on workforce planning. With Aon’s help, HR leaders can see what talent issues are ahead and how to anticipate future workforce needs.

To understand how to build a workforce that ignites innovation, visit aon.com/CHRO

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