Human resource management is a process of bringing people and organizations together so that the goals of each other are

met. The role of HR manager is shifting from that of a protector and screener to the role of a planner and change agent. Personnel directors are the new corporate heroes. The name of the game today in business is personnel . Nowadays it is not possible to show a good financial or operating report unless your personnel relations are in order. Over the years, highly s illed and nowledge based !obs are increasing while low s illed !obs are decreasing. This calls for future s ill mapping through proper HR" initiatives. #ndian organizations are also witnessing a change in systems, management cultures and philosophy due to the global alignment of #ndian organizations. There is a need for multi s ill development. Role of HR" is becoming all the more important. $ome of the recent trends that are being observed are as follows%

The recent &uality management standards ISO 9001 and ISO 9004 of '((( focus more on people centric organizations. Organizations now need to prepare themselves in order to address people centered issues with commitment from the top management, with renewed thrust on HR issues, more particularly on training. )harles Handy also advocated future organizational models li e Shamrock, Federal and Triple I. $uch organizational models also refocus on people centric issues and call for redefining the future role of HR professionals. To leapfrog ahead of competition in this world of uncertainty, organizations have introduced six- sigma practices. $i*+ sigma uses rigorous analytical tools with leadership from the top and develops a method for sustainable improvement. These practices improve organizational values and helps in creating defect free product or services at minimum cost. Human resource outsourcing is a new accession that ma es a traditional HR department redundant in an organization. ,*ult, the international pioneer in HR -PO already roped in -an of .merica, international players -P .moco / over the years plan to spread their business to most of the 0ortune 1(( companies. 2ith the increase of global !ob mobility, recruiting competent people is also increasingly becoming difficult, especially in #ndia. Therefore by creating an enabling culture, organizations are also re&uired to wor out a retention strateg for the e*isting s illed manpower.

!"# T$"!%S I! I!T"$!&TIO!&' H$(

#nternational HR" places greater emphasis on a number of responsibilities and functions such as relocation, orientation and translation services to help employees adapt to a new and different environment outside their own country.

$election of employees re&uires careful evaluation of the personal characteristics of the candidate and his3her spouse.

Training and development e*tends beyond information and orientation training to include sensitivity training and field e*periences that will enable the manager to understand cultural differences better. "anagers need to be protected from career development ris s, re+entry problems and culture shoc . To balance the pros and cons of home country and host country evaluations, performance evaluations should combine the two sources of appraisal information. )ompensation systems should support the overall strategic intent of the organization but should be customized for local conditions. #n many ,uropean countries + 4ermany for one, law establishes representation. Organizations typically negotiate the agreement with the unions at a national level. #n ,urope it is more li ely for salaried employees and managers to be unionized.

H$ (anagers should do the )ollo*ing things to ensure success

5se wor force s ills and abilities in order to e*ploit environmental opportunities and neutralize threats. ,mploy innovative reward plans that recognize employee contributions and grant enhancements. #ndulge in continuous &uality improvement through T6" and HR contributions li e training, development, counseling, etc 5tilize people with distinctive capabilities to create unsurpassed competence in an area, e.g. 7ero* in photocopiers, 8" in adhesives, Telco in truc s etc. 9ecentralize operations and rely on self+managed teams to deliver goods in difficult times e.g. "otorola is famous for short product development cycles. #t has &uic ly commercialized ideas from its research labs. :ay off wor ers in a smooth way e*plaining facts to unions, wor ers and other affected groups e.g. #-" , ;oda , 7ero*, etc.

H$ (anagers toda are )ocusing attention on the )ollo*inga+ ,olicies+ HR policies based on trust, openness, e&uity and consensus. b+ (oti-ation+ )reate conditions in which people are willing to wor with zeal, initiative and enthusiasm< ma e people feel li e winners. c+ $elations+ 0air treatment of people and prompt redress of grievances would pave the way for healthy wor +place relations. d+ .hange agent+ Prepare wor ers to accept technological changes by clarifying doubts.

e+ /ualit .onsciousness+ )ommitment to &uality in all aspects of personnel administration will ensure success. 9ue to the new trends in HR, in a nutshell the HR manager should treat people as resources, reward them e&uitably, and integrate their aspirations with corporate goals through suitable HR policies.

The top ten trends of the decade for Human Resources staff and the employees served at wor were not obvious nor were they easy to pic from my original list. 9epending on your company size, your location, and the health and progress of your company and industry, the top ten Human Resources trends may have differed for you. .lthough the selection was a challenge, and # still go bac and forth, these are my top ten Human Resources trends of the decade. These Human Resources trends are presented in no particular order aside from the first trend, which has swamped HR the past couple of years. Now that you have had a loo at the top ten Human Resources trends #=ve presented, plus several of my runner ups, what are yours> 9o you agree or disagree with the Human Resources trends # have selected> Please share your thoughts on the ?Readers Respond? form below.

It's the Economy

2ith 5$ unemployment at @(.'A, as # write this, and e*tended unemployment benefits and )O-R. subsidies eeping many families afloat, this economic downturn has left no one unaffected. ,ven people still employed have watched as their B(@C Ds and savings sun to new lows. .lmost no employees have received a raise without a promotion this past year. Normal bonuses and profit sharing have been replaced with mandatory furloughs and more wor to replace that of laid+off cowor ers. "ourning the loss of laid+off cowor ers with feelings of guilt, an*iety, and fear has also chipped away at the employeeEs comfort level at wor . :oo ing over their shoulder and protecting their own !ob has become commonplace. No one can predict how bad the economy could become or how long the downturn will last. $o, business leaders donEt now whether they are managing from an economic perspective that the economy has been reset forever or a down economy that will recover. -usiness leaders are struggling to manage in times they have never before e*perienced F and the employees, who may also be e*periencing stressful economic trauma outside of wor , are watching and concerned.

Millennials Are on the March

. generation of employees who were pampered and scheduled by their -aby -oomer parents have ta en the wor place by storm. They bring pluses and minuses to your wor place, but come on, who ever heard of a play date before @GG(> $o, not only is your wor place trying to absorb these offspring of the -aby -oomer generation + and millennials bring special challenges F employers are dealing with helping three generations of wor ers happily co+e*ist to serve customers as a team. The economic downturn has made the three generation situation worst with -oomers who planned retirement, to ma e way for up and coming employees, unable to retire + and not happy about it. "illennials and 4en 7 employees are supervising -oomers and -oomers are mentoring those who wish to learn from the leaving generation. 0or the employer, managing millennials is a s ill managers need to develop. The millennial &uest for wor +life balance and for having a life outside of wor is legend. ,mployers accommodate these talented young people and develop their strengths and ability to contribute, or you=ll lose them to an employer who will. "any of them have options. They bear no resemblance to the ?company man,H touted as the ideal employee in earlier years. .nd, the wor place is changing to accommodate them.

Employee Recruiting and Networking Online

This decade has brought about the transformation of employee recruiting and social and media interaction and networ ing. 2hen # first started writing about recruiting, the big !ob boards li e "onster, had not been around very long. ,mployers have seen a transformation in how people find each other for networ ing and !obs this decade. 0rom large !ob boards li e #ndeed to niche !ob sites, from networ ing on discussion lists to sites such as :in ed#n, 0aceboo , Twitter, and ,cademy, networ ing and recruiting will never be the same again. Human Resources employees have either ept up with the new ways of interacting and communicating or they are doing their organizations a disservice. $ocial media networ ing is the new way to find employees, find !obs, get answers to &uestions, build a wide+spread, mutually supportive networ of contacts, and eep trac of colleagues and friends. $ocial media and online recruiting bring the employer new challenges. 9eveloping social media and blogging policies, deciding whether to monitor employee time online, and chec ing candidate bac grounds online, !ust scratch the surface of new employer challenges. -ut, donEt let the power of this online media pass you by.

Made to Order Employment Relationships

Perhaps itEs the push from the millennials, and definitely itEs the availability of technology that facilitates the customization, but the made to order wor relationship has

become a dominant force in the past decade. Telewor ing or telecommuting, a rare privilege in the @GG(s, has ta en wor places by storm. One giant computer company reports that 11A of its employees not only telecommute, they wor from home all of the time. . New Ior )ity publishing company allows telecommuting two days a wee and employees can bargain for more. Telewor ing is not the only component of the new made to order wor arrangements. 0le*ible anything has become the new norm. 0le*ible wor hours, fle*ible four day wor wee s, fle*ible time off for appointments, and the most important trend of all% Paid time off CPTOD allows employees to ta e time off when they need the time as it consolidates sic leave, personal time, and vacation time into a ban of days for employees to use. .dditionally, trends such as bringing baby or the family pet to the office also fall within this wor place fle*ibility. $uperficially, all of these components of the made to order Human Resources employment trend offer benefits for employees. -ut, they offer benefits for employers, too. ,mployers donEt need to police employee time. They need to ma e wor and communication more transparent and measurable so the fle*ibility yields results. Their employees are more motivated and engaged, and less stressed out about family and life issues, because they have the time necessary to address wor +life balance issues.

The Big Blur

Online, all the time, and availability via technology, has blurred the line between wor and home. ,mployees wor at home in the evening on collaborative reports and email. They shop at wor and ta e brief brea s by playing online games. ,mployees do their ban ing at wor and their wor accounting at home. .lmost no one goes on vacation without their smart phone, laptop, and indle+li e device. ,mployees ta ing PTO email colleagues with the number of their cell phone if they wonEt have access to email. No generation has ever been this connected, and for good and bad, some employees never stop wor ing. This interferes with down time, rela*ing time, and wor +life balance, but most employees !ust see it as a way of life. ,mployers need to ma e sure this degree of connectivity is not re&uired. They must also bac away from old rules about what an employee was allowed to do at wor . ,mployers do need to heed wage and hour laws when dealing with hourly employees who must be paid for every hour they wor . #ndeed, this wor F home blurring is a nightmare for employers who must pay for overtime. $o, most employers forbid hourly employees, for the most part, to wor at home. This emphasizes the differences between e*empt and none*empt employees, already a distance.

The Rise of Technology

No Human Resources trend list would be complete without an e*plicit mention of the impact of technology on all aspects of the field. # have mentioned the power of technology all through these trends, but will still cite technology as a ma!or trend. Technology has transformed the way in which Human Resources offices manage and communicate employee information and communicate with employees, in general. #n a world in which identity theft is prevalent and can cost an employee countless wor ing hours over several years to correct, safeguarding employee records is critical. #dentity theft is so serious and rising that every employer needs a plan to prevent. 9id words li e #ntranets, wi is, webinars, and blogs e*ist in common language ten years ago> # donEt thin so< only the early and earliest adopters used them. Now, employees use them internally to stoc pile information, wor collaboratively, and share opinions and pro!ect progress. They can even wor virtually and with distant teams simultaneously. They hold meetings and share visuals with teams from all over the world.

Employee Training and

e!elopment Transformed

This decade has seen the rise of technology+enabled opportunities for training, employee development, and training meetings and seminars. Podcasts, teleseminars, online learning, screen capture and recording software, and webinars provide employee development opportunities. .dditionally, during this decade, as the technology+enabled delivery options e*panded, so did other training and development opportunities and definitions, including increased e*pectation for learning transfer to the !ob. Online learning, earning an online degree or credits, and all forms of web+enabled education and training provide options that employees never had when training occurred in a classroom. ,mployers are saving millions of dollars in employee travel e*penses, and the employeeEs access to the training does not wal out the door at the seminarEs end. This is the decade when employers e*periment with classroom training in a virtual world called $econd :ife. Iou can e*pect even more progress and e*perimentation in the years to come. Plus, another Human Resources trend that flourished, though did not start in this decade, is the concept of alternative forms of employee learning such as coaching and formal mentoring. They hit the mainstream in this past decade.

Tension Increases O!er "o!ernment Inter!ention in the Employer# Employee Relationship

. debate e*ists in the 5$ between people who thin the government is already intervening too much by ma ing laws that re&uire employers to provide particular

benefits for employees, and those who donEt. People who support the government intervention believe that the 5$ government has been negligent in not mandating benefits such as paid sic leave. They consider it the JrightH or humanitarian action to ta e. Opponents want benefits for employees but argue that employers should ma e benefits choices that their employees desire and that they can afford. Opponents argue that employer mandated benefits will cost the country !obs and opportunity. $mall business, the engine of !ob creation in the 5$, is currently sitting on the sidelines because of the uncertain economy including threatened government mandates and potential changes to health care. One of the more significant e*amples of government intervention occurred with the passage of the 0amily and "edical :eave .ct C0":.D in @GG8. The affects of its passage continued to be an employerEs nightmare this past decade as, especially, its intermittent leave re&uirements created record eeping &uagmires and made trial lawyers smile. # e*pect # will be including this Human Resources trend after the ne*t decade, too.

The Rising $ost of %ealth $are

"uch as #Ed prefer to leave this Human Resources trend off the table, itEs not going away. The continually rising cost of health care insurance and health care is affecting what employers can provide in terms of additional benefits for their employees. The rise of employee payments for part of insurance coverage, the practice of see ing insurance first from a spouseEs employer, increased payments for covered family members, and higher health care provider co+pay office fees are all highlights of the rising cost of care. .mericans disagree about what needs to be done in this arena. C# support capping fees to trial lawyers and limiting payouts in medical malpractice suits, providing incentives to people becoming family practice physicians, and ma ing basic insurance more affordable.D -ut, most agree that something does need to happen so that .mericans can retain the best health care system in the world. :egislation is currently pending, which as # write this piece, is not supported by over 1KA of .mericans, so we shall see. Health care costs will remain a Human Resources trend in the ne*t decade. $ee the final trend and my Honorable "entions.

"lo&ali'ation( Outsourcing( and Offshoring

#ncreasing government regulation in the 5$ along with increasing corporate ta*ation Cmaybe highest in the worldD, higher wages, and less desirable, business friendly policies and incentives are causing employers to rethin locations for their operations. High ta*ation, high regulation states are seeing an outpouring of business Cand !obsD from their locations. The 5$ is seeing an overall rise in outsourcing !obs to overseas locations that are viewed as more friendly to business.

#n an era of globalization, this ma es sense. ,mployers see global, rather than local mar ets, so that economic factors in one location do not hinder progress. ,mployers see the positive impacts of locating offices and factories in global mar ets and tapping the strengths of local employees who are familiar with business and employment practices in the new locations. 2hether wor is off+shored, outsourced, or the company is simply e*panding globally, the challenges to Human Resources with a globally+located wor force are serious. #f a 5$ company has five employees in Hong ;ong or si* in ,urope, local Human Resources offices do not ma e sense. #n fact, the 5$ HR 9irector, with assistance from local employment agencies, probably hired the staff. "anaging and wor ing with these global locations, while obeying the laws and honoring the customs of the host country, is a challenge for managers, Human Resources, and cowor ers. # remember hiring my first employee in Hong ;ong. # learned the monetary system, the re&uired holidays, the government regulations, and more. # also found that, until # had local, trusted employment staffing assistance, the new employee and subse&uent employees too advantage of my limited nowledge. #t=s a whole new world of global challenges out there. 4et ready.

%uman Resources Trends of the

ecade) %onora&le Mentions

# considered these Human Resources trends and they are worthy and deserve a mention. $everal of them will see their biggest impact in the ne*t ten years. This includes di-ersit which is already affecting wor places and legislation. $ee my favorite piece about diversity% Search for Similarities: Just Like Me. 9iscrimination laws have had a profound impact on recruiting and hiring practices and in all areas of e&ual opportunity employment. The labor union mo-ement in the 5$ is in the process of undergoing a radical change. Recently, public sector employees became the ma!ority of union members leaving private sector union member numbers behind. .dditionally, the $ervice ,mployees #nternational 5nion C$,#5D has stated publicly that their members include illegal immigrants. This will produce changes in the ne*t decade about Political .ction )ommittees CP.)sD, raise &uestions about who is funding union activities, and also impact the illegal immigration debates in )ongress and for employers. #n the wa e of the horrific events of 9-11-0001, much of which most employees watched unfold on their televisions at wor , a feeling of a loss of safety swept the nation. 2hen tragedy struc the wor place, employers responded with new building evacuation plans, safety and crisis management plans, and business continuation strategies. People who lived closer to the events and who lost family members and friends were most profoundly affected. -ut, the events of G+@@+'((@ will never be forgotten in .merica. Hopefully, this will never be a trend, but several readers nominated this event.

The e-olution o) per)ormance management as an employee development, goal setting, and performance evaluation strategy is an important Human Resources trend in my boo . #t allows an employer to develop an employee from onboarding until they leave your company. #t moves evaluation and goal setting away from an annual appraisal administered by the employeeEs manager to a mutually beneficial defined contribution and development plan. 2eEll see considerably more from each of these trends in the ne*t decade. Hold on to your seat. The ne*t wave of Human Resources trends for the ne*t decade will soon leave the station. .re you ready to enhance and ta e advantage of them in your wor place> Please share your best trends of the decade and your worst trends of the decade. Have comments on these top @( trends and Human Resources trends of the decade, in general> $hare your thoughts about the top @( Human Resources trends of the decade.

Training
Training conferences provide insights into what is happening in the field of training and development. .ttending the annual .merican $ociety for Training and 9evelopment C.$T9D conference or Training or another of the specialty training conferences now available, is educational. These are several of the trends # am hearing a lot about.

Multimedia and Online Training

J#f youEre not in multimedia or online training, youEd better be thin ing about it,H said one trainer to another at a recent Training conference. -oth the ,*position and the )onference sessions echoed this sentiment. . recent .$T9 conference featured less multimedia, but online providers of educational sessions proliferated. ,ven though the current move in organizations has been to offer training on )9s, 2eb+based training C2-TD is not far behind. .s one booth wor er e*plained, JThere are basically three mar et segments these companies are going after. They want to be aggregators of content from whom organizations purchase a set of courses to offer internally. They want to develop and offer their own courses for an annual or pay by course fee. Or, they want to offer classes to individual consumers.H The &uality of the courses varies as does the amount and type of multimedia used in their presentation.

Additional Topics "enerated &y *e& Based Training +*BT,

This move to online learning has created several sub+conversations. One is ,lectronic Performance $upport $ystems C,P$$D that deals with the interface between people and software. .nother is creating and offering courses that trainees will actually finish< the drop out rate in self+monitored training is high.

#n a less positive direction, some providers of traditional training were attempting to move traditional, manual+based courses online. The resultant courses loo ed li e training manuals online and did not tap into the advantages of the 2eb including interconnectivity and the ability to publish real+time, up+to+the+minute information. 0inally, training professionals were discussing how to integrate a real, live instructor and peer interaction with 2eb+based or )9 training.

-erformance $onsulting
Human Performance Technology or performance consulting is changing the face of the traditional training department forever. 0ew training organizations offer trainer+led, generic classes as the only, or even ma!or, solution to organizational challenges and opportunities any more. ,mphasis is now placed on providing a range of potential solutions and assists that include in+depth needs assessment via interviews, surveys and focus groups. .lternatives to training offered by progressive human resource departments include coaching, organizational development or planned change consultation and interventions, facilitated planning sessions and large group processes. The training that is provided is often custom+designed with stated outcomes congruent with the direction of the business.

-erformance Management
.nother trend that is sweeping the field of human resources is the integration of training and development into an entire performance management system. Organizations are moving away from the long+established, one+on+one appraisal or performance review with a boss held once per year. They are designing performance management systems, instead, that provide an individual with personal and professional developmental goals and training opportunities. #n a performance management system, people receive more fre&uent feedbac from many points of view including peers, direct reporting staff members and the boss. The feedbac , nown as 8K(+degree feedbac , provides a more balanced set of observations for the employee. The performance management system also integrates a performance development plan for the individual. This plan assists the employee to continue to develop his s ills and abilities. 0or these plans, preference is accorded to integrated corporate university courses and internally custom designed and presented training. Performance development plans may include coursewor , but also provide learning activities on the !ob such as special pro!ects, serving on cross+functional teams, and s ill stretching !ob assignments.

$onclusions A&out Training Trends

One training trend is for sure. Traditional classroom training is no longer the e*clusive opportunity to learn. The age of training that includes training )9s, email classes, online learning, blended learning and university degrees online is e*ploding. These training opportunities are here to stay. # loo forward to watching and participating in their growth and change. #nterested in free online training in a multitude of topics> )hec out my online training resources.

Important Aspects of Training

How training needs are determined, how training is viewed by employees, and how training is delivered become critically important issues. Training trends and methods for gaining nowledge, other than traditional classroom training, such as coaching and mentoring, ta e center stage. New employee orientation, or new employee onboarding, is a significant factor in helping new employees hit the ground running. Training that helps each employee grow their s ills and nowledge to better perform their current !ob is appreciated as a benefit. Training also increases employee loyalty, and thus retention, and helps you attract the best possible employees. Transfer of training from the training provider, whether online or in a classroom, to the !ob, is also increasingly reviewed as you invest more resources in training. :earn the approaches that will guarantee a return on your investment and ensure employee loyalty. Organizations are increasingly as ing for monetary !ustification that the training provided produces results + be prepared to demonstrate your results.

Options for Training and Education for Employees

Options for employee training and development are magnifying due to these factors%

technological innovations, employee retention strategies, and the need for organizations to constantly develop their employees= ability to eep up with the pace of change.

$o, sending an employee off for training at a one+day seminar or a wee +long wor shop is only one of many options that e*ist now. The .merican $ociety for Training and 9evelopment has traditionally recommended a minimum of B( hours of training a year for every employee. This is consistent with the

emphasis employees place on the opportunity to grow and develop both their s ills and career while in your employ. The chance for ongoing development, is one of the top five factors employees want to e*perience at wor . #n fact, the inability of an employee to see progress is an often cited reason for leaving an employer. .s a retention strategy for your preferred employees, training and development rates highly. Only their perception of their salary and benefits as competitive, and reporting to a manager they li e, rate higher.

Options for Employee Training and

e!elopment

2hen you thin about education, training, and development, options e*ist e*ternally, internally, and online. )hoices range from seminars to boo clubs to mentoring programs. Here are the e*isting alternatives to help your employees continue to grow. 0or recruiting, retention, and managing change and continuous improvement, adopt all of these practices within your organization.

E.ternal Education( Training( and

e!elopment

$eminars, wor shops, and classes come in every variety imaginable, both in+ person and online. Ta e field trips to other companies and organizations. )olleges and universities, and occasionally, local adult education, community colleges or technical schools provide classes. 5niversities are reaching out to adult learners with evening and wee end "-. and business programs. Professional association seminars, meetings, and conferences offer training opportunities.

Internal Education( Training( and

e!elopment

Onsite seminars and classes provide training customized to your organization. )oaching gives employees the opportunity to share nowledge. "entoring is increasingly important in employee development and training as are formal mentoring programs. 0orm a -oo )lub at wor .

*hat /our Organi'ation $an and Regular Training

o to 0acilitate $ontinuous 1earning

)reate a learning environment. )ommunicate the e*pectation for learning. Offer wor time support for learning. "a e online learning and reading part of every employee=s day. Provide a professional library. Offer college tuition reimbursement. ,nable fle*ible schedules so employees can attend classes. Pay for professional association memberships and conference attendance annually for employees.

Training is crucial to the ongoing development of the people you employ and their retention and success. -e creative to provide diverse opportunities for training.

Tipes for training

#n my usual approach to training, # meet with groups wee ly for a two hour training session. These sessions can last for several years, although we do tend to limit the fre&uency over time. The ey to the success of the training sessions is that the time together, the discussion, the shared training topics, the new information, and the shared reading both educate and build the team. .dditionally, learning comes in bites small enough to practice and participants are not overwhelmed with information. They also have the chance to discuss what wor ed at the ne*t training session. )onsistent feedbac from the planned interaction is that the, usually managers, although # have fre&uently wor ed with departments, too, process whereby we built a strong, effective team was invaluable. 2hen # have wor ed with companies outside of a G( minute drive or outside of my state, # have limited the training sessions to a couple of times a month. # have found that less fre&uency interferes with the team building aspects of the meetings, although not with the educational component of the training sessions. $o, if you=re loo ing for a way to develop your internal staff that involves an e*ternal consultant, or even an internal manager or HR staff person, this is an effective way to offer training and build the team at the same time. Now that you have had a loo at the top ten Human Resources trends #=ve presented, plus several of my runner ups, what are your top Human Resources trends of this past decade> 9o you agree or disagree with the Human Resources trends # have selected> $hare yours. 2hat did # miss on my list of HR trends of this past decade> $hare Iours + :i e "ine>

Social (edia
Iour mention of social media and #nternet resonated with me. # thin video is becoming more prevalent% from video interviewing to video resumes, to recruiters recording company videos or &uestions to which the candidates must record a webcam answer. 2ith the advent of social networ s li e :in ed#n and 0aceboo , people are used to seeing each other, although in those sites it is a static picture.

$alary compensation

How to research salary, salary calculators, salary surveys, salary comparisons, basically, all things salary, online, is one of the most fre&uent re&uests for information received by the $ociety for Human Resource "anagement C$HR"D. This ma es sense when you consider the importance of salary to attract talented people, retain ey employees, and maintain an e*cited, motivated wor force. 4iven the shifts occurring in attitudes and practices about salary and compensation, this is not surprising. Organizations are struggling to eep up with changes in salary and compensation thin ing. 4one are the days when organizations gave e&uivalent increases to all organization members. These salary increases, in the one percent to five percent range, sent the wrong message to underperformers. They left organizations with too small of a budget to ade&uately reward their top performers. 2hile many companies still use this as their salary criteria, forward thin ing organizations are thin ing about salary and compensation in a very different way. .ccording to an article on the $HR" website Cyou must be a member to accessD, to get the attention of your better performing staff members, you must offer a variable pay rate of seven to eight percent, in addition to their base pay. . system that rewards better performers cannot reward all staff members ali e. #n addition to sending the wrong message, your pool of money is not unlimited. Iou must use your compensation as one of your most important communication tools, to send a message about your organizationEs e*pectations and goal achievement rewards.

$urrent $ompensation Thinking

"y current thin ing about salary and compensation includes the following components.

Organizations need to develop a compensation philosophy and direction in writing that is reviewed by the -oard of 9irectors and agreed to by your managers. Particularly in an entrepreneurial, mar et+driven company, the compensation philosophy needs to include a method for grouping similar !obs for purposes of broad banding, since promotional opportunities are limited. #t should include a responsible, measurement system for awarding variable pay. # recommend less emphasis on increasing base pay, and more emphasis on distributing gains via bonuses that reward actual goal attainment. 4oal attainment should be rewarded for both individual and organizational goal achievement to foster teamwor and eliminate the Jlone rangerH mentality. Real goal achievement is attached to outcomes or deliverables that are measurable or offer a shared picture of what success loo s li e. They should not reward chec ing items off a Jto+doH list. .s the cost of benefits has increased, their place in a total compensation pac age has increased in importance. $hifting the costs of some benefits to employees is a last+option scenario.

On page two, 6uality of 2or :ife Rewards, we=ll loo at &uality of wor life benefits and several online salary resources. The budget for salary, compensation, and benefits is not unlimited in most organizations. Thus, in addition to traditional increases to base pay, and variable rewards, such as bonuses, profit+sharing and gain+sharing, # recommend attention to &uality of wor life rewards. These can include the following.

Payment of a one+time, lump sum payment for a result or outcome that deserves recognition. Payment of smaller rewards with Jthan youH notes for above the call of duty contributions These are not necessarily tied to an achieved result, but they are contributions, that when emphasized, increase the probability of results. #ncreased emphasis on additional benefits such as pre+paid legal assistance, educational assistance, and vision insurance. #ncreased opportunity for fle*ible wor arrangements and !ob+sharing. .n organizational emphasis on the training and development of employees. )lear career paths so employees see opportunities within your organization.

#n this last category, &uality of wor life rewards, your imagination is your only limitation. The ey is to ensure fairness and consistency for similarly performing and contributing people, whenever possible. # encourage you to do even more for those employees who measurably contribute more to your organizationEs success. COf course, this opens up a second philosophical debate F fodder for a later article F about how and whether your organization provides an e&ual opportunity for all employees to e*cel.D #n summary, organizations are moving toward salary and compensation systems that emphasize fle*ibility, goal achievement, and variable pay based on performance, and less emphasis on increases to base pay. They are using bonuses based on profit and accomplishment to add to employee compensation. The rising cost of benefits is causing rethin ing of their place in the compensation system. 0orward thin ing organizations are emphasizing J&uality of wor lifeH rewards and recognition to add to the value of the total compensation pac age.