HR and Hiring Tips
3 HR Trends Defining 2010
As a background screening company, Clarifacts has seen some dramatic changes in 2010 as it relates to our clients’ hiring and staffing levels. While it is easy to blame these changes on the economy and call it a day, we wanted to dig deeper and explore how HR professionals are dealing with these significant challenges and ask them what was on the horizon for the remainder of 2010 and early 2011.
In speaking with a cross-section of our clients – from healthcare to finance to professional services – we interviewed seasoned HR pros who’ve seen their fair share of ups and downs, and we uncovered several trends consistent across all industries.
Some of their insights and answers may surprise you. Many, no doubt, will cause you to nod your head in agreement.
Trend 1: HR Staff Doing More with Less
Human resource professionals being asked to do more with less isn’t exactly a new revelation exclusive to 2010, but it seems that it is becoming the new norm. In working with and talking to clients, “less” is commonly taking the form of the HR staff itself being cut and having fewer financial resources with which to work.
Balancing appropriate workforce levels with the current business environment, hiring good employees, motivating employees and keeping them engaged are all challenges we heard. According to a long-standing Clarifacts client in the healthcare space, these types of challenges have “made us become more creative with solutions.” The same client also shared that they used to reward employees with monetary recognition, but now they have established teams, set goals and have competitions to win an award (trophy not money).
It used to be much easier for employers to give raises and bonuses. For cash strapped companies, it’s difficult, if not impossible, right now. One businessweek.com an article titled Motivating Without Money addresses how to keep employees engaged during an economic downturn. Another good resource is a list on hrworld.com called 25 Ways to Reward Employees (Without Spending a Dime). While they aren’t all exactly free, it’s a good list that will get your creative juices flowing for how to “do more with less.”
Trend 2: Increased Government Involvement
Every business, or at least those that are law abiding (i.e. tax-paying), have some interaction with the government. But a consistent trend we are seeing among many companies is a significant increase in the level of government involvement and interaction with their business.
The HR professionals we spoke with pointed to state budget cuts (going back to the do more with less mantra), additional licensing and regulations in the financial market, and the new healthcare reform legislation as three ways government changes are impacting their world.
One example is of a Clarifacts client in the financial and mortgage industry that is having to adapt to new state regulations which read, in part, that “a loan originator who is employed by a mortgage broker or mortgage banker to act in the capacity of the mortgage broker or mortgage banker shall not be employed concurrently by any other mortgage broker or mortgage banker.” While this seems harmless enough, it creates a logistical nightmare with on-boarding and compliance.
While not exactly direct government involvement, local, state and federal government agencies are looking to boost their revenue and minimize budget shortfalls. In the world of employment background screening, this means higher fees – in some cases double or triple increases – for services such as court access fees and state driving records.
Trend 3: Cautious Optimism
The past couple of years have been difficult for many organizations to say the least. But whether talking to HR professionals or business owners, many told us they have a sense of cautious optimism for the last quarter of 2010. And the Q3 Labor Market Outlook Report (LMO) by the Society for Human Resource Management seems to confirm that sentiment.
According to the survey, 74% of respondents were neutral to somewhat optimistic about job growth. The same survey also found that 31% of organizations planned on adding staff. Both measures represented significant increases over the previous year's survey results. This optimism, however, is tempered with preparation for any number of scenarios – good and bad.
Everyone wants to be positive and hope for the best as they weather this economic storm – and they are working hard to get back to staffing levels and revenues of days past – but they also know that this will take some time and that there is no quick fix. Organizations are also hyper sensitive to anything that can impact their staffing levels, benefits, salaries, etc. and are prepared for many outcomes.
What does the remainder of 2010 and early next year hold?
Tell us what you think of these trends and what the next six months hold for your organization. We’d love to hear from you at feedback@clarifacts.com.
