HRintheNewEconomyTrendsandLeadingPracticesinHumanResourcesManagementMarch2001PeopleSoftWhitePaperSeriesHRintheNewEconomyTRENDSANDLEADINGPRACTICESINHUMANRESOURCESMANAGEMENTPEOPLESOFTMARCH2001HRintheNewEconomyContributors:JosephH.Boyett,Ph.D.,JimmieT.Boyett,RowHenson,HeidiSpirgi-Hebert2001byPeopleSoft,Inc.Allrightsreserved.Published2001.PrintedonRecycledPaper.RestrictedRightsPrintedintheUnitedStatesofAmerica.TheinformationcontainedinthisdocumentisproprietaryandconfidentialtoPeopleSoft,Inc.Nopartofthisdocumentmaybereproducedortransmittedinanyformorbyanymeans,electronicormechanical,includingphotocopyingandrecording,foranypurposewithouttheexpresswrittenpermissionofPeopleSoft,Inc.Thisdocumentissubjecttochangewithoutnotice,andPeopleSoftdoesnotwarrantthatthematerialcontainedinthisdocumentiserror-free.Ifyoufindanyproblemswiththisdocument,pleasereportthemtoPeopleSoftinwriting.PeopleSoft,thePeopleSoftlogo,PeopleTools,PS/nVision,PeopleCode,PeopleBooks,andVantiveareregisteredtrademarks,andPeopleTalkand“Peoplepowertheinternet.”aretrademarksofPeopleSoft,Inc.Allothercompanyandproductnamesmaybetrademarksoftheirrespectiveowners.Theinformationcontainedhereinissubjecttochangewithoutnotice.Copyright©2001PeopleSoft,Inc.Allrightsreserved.PrintedintheUSA.ThisdocumentcontainsormaycontainstatementsoffuturedirectionconcerningpossiblefunctionalityforPeopleSoft’ssoftwareproductsandtechnology.AllfunctionalityandsoftwareproductswillbeavailableforlicenseandshipmentfromPeopleSoftonlyifandwhengenerallycommerciallyavailable.PeopleSoftdisclaimsanyexpressorimpliedcommitmenttodeliverfunctionalityorsoftwareunlessoruntilactualshipmentofthefunctionalityorsoftwareoccurs.ThestatementsofpossiblefuturedirectionareforinformationpurposesonlyandPeopleSoftmakesnoexpressorimpliedcommitmentsorrepresentationsconcerningthetimingandcontentofanyfuturefunctionalityorreleases.TRENDSANDLEADINGPRACTICESINHUMANRESOURCESMANAGEMENT1HRintheNewEconomy:TRENDSANDLEADINGPRACTICESINHUMANRESOURCESMANAGEMENTAwhitepaperproducedincollaborationwithJosephH.Boyett,Ph.D.andJimmieT.BoyettofBoyett&AssociatesAMessagefromPeopleSoftPeopleSoftisconstantlysearchingforinnovationinhumanresourcemanagementandworkswithsomeofthetopindustryleadersandthinkerstokeepyouapprisedofthelatestHRtrendsandpractices.OneexampleofthiseffortisPeopleSoft’songoingpartnershipwithDr.JosephH.BoyettandJimmieT.BoyettandtheirfirmBoyett&Associates.Dr.BoyettisauthoroftenbooksincludingWorkplace2000andisarenownedanalystofworkplaceandworkforcetrends.HeandJimmieBoyettaretheco-authorsofBeyondWorkplace2000,TheGuruGuide,andTheGuruGuidetotheNewEconomy.In1998,PeopleSoftaskedtheBoyettstoconductresearchtoidentifythebestideasshapingthinkingaboutthefutureofHR.TheresultsofthatresearchwerepublishedinMay1999inahighlyregardedwhitepaperentitledHumanResourcesMostEffectivePracticesacrossBestCompanies.In2000,weaskedtheBoyettsonceagaintoexamineemergingtrendsandleadingpracticesinhumanresourcemanagement.BelowaresomeofthemostimportanttrendsandleadingpracticestheyidentifiedasaresultofthatresearchandadditionalresearchtheyconductedoverthelasttwoyearsfortheirnewestbookTheGuruGuidetotheKnowledgeEconomy(JohnWiley,Spring2001).PeopleSoftHRINTHENEWECONOMY:MARCH20012TRENDSANDLEADINGPRACTICESINHUMANRESOURCESMANAGEMENTASummaryoftheLeadingPracticeFindingsI.Organizingorganizations.Mostanalystspredictthatadaptive,virtualorganizationswillreplacerigidorganizationalstructures.Theorganizationofthefuture,includingtheHRfunction,willessentiallybeanetworkofautonomoussmallprojectteamsthatformandreformasneeded.AkeyresponsibilityofHRprofessionalsinsuchorganizationswillbetohelpmanagersaddressthesocialimplicationsandpsychologicalconsequencesofcreatinganddismantlingteams,breakingupgroupsthathave“bonded,”andhelpingemployeesadjusttobeingmovedconstantlyfromprojecttoproject.II.Proactiverecruiting.Askillscrisiscontinuesandhasnowbecomeglobal.ThisshortageofskilledworkersputsenormouspressureonHRtofindinnovativewaystoattractnewemployees.Thebestandbrightestcandidatesarecomparisonshoppingemployersliketheycomparisonshopforclothingorautomobiles.III.Employeeretentionthroughgoodmanagement.Inaneconomyinwhichdemandforskilledworkersishighandunemploymentisexceedinglylow,mostcompaniesrecognizethatthebeststrategytofighttheskillwarsistoavoidlosingthetalenttheyalreadyhaveonboard.Evidencefromanumberofrecentstudiessuggeststhatthebestretentionstrategyisnotnecessarilyhigherpayormorecreativeperksbutrathersimplybettermanagement.Inshort,peopledon’tquitcompanies,theyquitbadbosses.IV.Respectforwork/lifebalance.Eighty-sevenpercentoftheAmericanworkforcehassomekindoffamilyresponsibilityandseventy-eightpercentsaythatfindingwork/lifebalanceisamajorpriority.Consequentlyakey“goodboss”retentionbehaviorisrecognitionofandsensitivitytowork/lifestressesthatemployeesface.V.Celebratingdiversity.TheU.S.population,andconsequentlytheU.S.workforce,isbecomingincreasinglydiverse.Iftrendscontinue,minoritygroupswillmakeupone-halfofthepopulationbytheyear2050.Leadingcompaniesrecognizethatinadiversesocietytherecruitmentandrete