Welcome to the April 11, 2007 issue of The Total View

Published by Success Performance Solutions, Written by Ira S. Wolfe

Visit our Human Resources Blog and Perfect Labor Storm Blog where we can post daily (and more often) human resource updates, news, and Perfect Labor Storm facts. 

What's Inside:

1.   Can HR Save Circuit City?

Circuit City in late March announced the layoff of 3,400 of its most experienced, and therefore its highest paid, salesclerks.  "This 'wage management initiative'," writes Stephen Meyer, B21 Publisher and author of HR Cafe - "which replaces the experienced clerks with cheap, inexperienced ones -- will save the company up to $250 million over two years."

What it will cost them in the long run is anyone's guess. But you have to ask: what were Circuit City executives thinking when they approved this strategy? Where was HR, purportedly the advocates and protectors of the employees?

I can only suppose how the discussion might have gone, the proponents for and opponents against this strategy pleading their case. Imagine yourself as a member of the executive team, listening to the pros and cons of laying off workers. The CFO reports replacing 3,400 salesclerks with lower paid ones will save $250 million. The VP of HR pleads against this strategy by emphasizing how layoffs will have a devastating effect on morale. The CFO responds: Show me how paying someone $15 per hour vs
$8 per hour is more productive.  The VP answers back: that's hard to measure.

Which one would you choose? Unfortunately when a business is scrambling to stay competitive, support for cutting expenses over avoiding lower morale wins every time.

Now let's assume you are the VP of HR for another company just like Circuit City and a proposal is discussed during an executive meeting:  you are going to lay off 3400 employees and rehire others for less pay. But unlike the VP of HR at Circuit City you come armed with financial data. You admit the immediate economic effect of layoffs will far exceed the risk of lower productivity, morale, and customer satisfaction. But you deftly argue the value of retaining experienced and productive employees with historical and predictive data. You demonstrate how experienced workers outshine the inexperienced when comparing profit per employee, how recruiting costs and turnover rates soar with untrained, lower skilled employees, how lower morale leads to lower customer satisfaction which adds to customer churn.

Imagine how much more effective a major strategy change like this might end up had the VP of HR (or any other executive for that matter) possessed the data to evaluate the additional direct and indirect costs associated with recruiting costs to hire replacements, training costs to train new employees, the cost of turnover and the higher costs of mistakes, customer returns, and lost customers.

Putting the right financial data in the hands of HR isn't about them winning every time but helping business make the right decisions. Who knows - maybe the $250 million is the best option for Circuit City but I fear like so many other organizations, they have no idea.

Share your comments about this article on HR Blog or reply to this email. 

2.  Perfect Labor Storm Alerts #628 - #629

Fact #628: 81 percent of respondents said they are currently facing a moderate to severe shortage of qualified workers. Most severe are shortages pertaining to the higher skill levels.
(2005 Skills Gap Report, The Manufacturing Institute/NAM/Deloitte Consulting, LLP)

Fact #629: 90 percent of respondents indicated a moderate to severe shortage of qualified, skilled production employees.
(2005 Skills Gap Report, The Manufacturing Institute/NAM/Deloitte Consulting, LLP)

Perfect Labor Storm 2.0 is now available. The year 2007 will see an increase in skilled worker shortages and more competition. The result will be higher salaries, more training and career advancement opportunities, and more flexible work cultures. How prepared is your company to find skilled and dependable workers?

Perfect Labor Storm 2.0 is the newly updated and revised 2007 edition of best-selling book first published in 2005. You can now download an advance copy of PLS 2.0. a $10 value with every purchase of the original Perfect Labor Storm, still a great value at $7.95.

Don't miss day-to-day updates on Perfect Labor Storm.   Save the Perfect Labor Storm blog to your favorites.

3.  New! Upcoming Webinars, Workshops and Training Dates Announced

April 12, 2007: Interview for Success (Call for information)
April 17 - 18, 2007 - ASSESS Expert System User Certification

"ASSESS Expert System Certification"

For the first time ever, Bigby Havis and Success Performance Solutions have partnered to sponsor a 2-day ASSESS User Certification in Central PA. (Bigby Havis is one of the top U.S. organizational psychology consulting firms with domestic and international clients.)

Date: April 17-18, 2007
Time: 8:30 - 5:00; 2nd day ends at 12:30PM
Place: Lancaster, PA
Tuition: $1500 per person; $1000 for 2nd person, same company

Assess Expert System is a premier psychometic employee evaluation tool that will take the guesswork out of hiring and promoting key employees.  A state of the art web-based system, ASSESS produces job specific reports linking key personality traits to managerial and executives competencies.  Every selection report comes with a customized behavioral interview guide and every development report includes performance improvements tools and tip customized to the employee, based on his/her responses.

ASSESS Expert System assists management in the selection of outside candidates and in the promotion, placement or development of internal managers, supervisors and professionals. The assessments provided are industry-standard, and each item has been carefully validated and documented.

Participation is limited and over half the seats are already filled.
Don't wait. Call 800-803-4303 for information.

4.  Manager's Guide to Interviewing and Hiring Top Performers

This book is for individuals with training responsibilities who are looking for tools to help their managers, supervisors, and/or team leaders interview, hire, and retain top performers. If you or someone in your hiring system has limited experience in interviewing and hiring, this book will help you and your organization to be more proficient in hiring practices.  Includes over a dozen job aid templates for recruiting, hiring, and retaining top performers.

Visit the SPS bookstore and order your copy of Interviewing and Hiring Top Performers.

5.  Customer Service Excellence Starts Here!

One-stop shop for all building a culture of customer service excellence.
- Customer Service Skills Profile
- Customer Service Commitment Profile
- 100 Activities and Actions for Customer Service Excellence
- 50 Activities for Achieving Customer Service Excellence
- Excuses, Excuses, Excuses
- Pre-employment test: Customer Service Clues

Click here for more information.

6.  Quotes from Hire Authorities

"It just goes to show you what can happen when you hire right, train right, and treat [employees] right - your people want to stay with you."
John Isbell, IHOP Director of Training & Development

Ira S. Wolfe Copyright 2007 - All Rights Reserved. Reprints and other distribution by permission