Innovative Human Resources Trends

Human Resources: Best Practices
A White Paper by Joseph M. Dougherty
July 7, 2016

Human Resources Best Practices 1
Contents
Human Resources Evolution.............................................................. 2
Employee Engagement ...................................................................... 3
Health and Wellness .......................................................................... 7
Recruiting........................................................................................... 9
Culture ............................................................................................. 12
Corporate Social Responsibility ....................................................... 15
Retention ......................................................................................... 17
Compensation.................................................................................. 19
Diversity ........................................................................................... 21
Benefits............................................................................................ 22
Training and Development .............................................................. 24
Measuring Effective Human Resources Efforts ............................... 25
Conclusion........................................................................................ 27
Works Cited...................................................................................... 28

Human Resources Evolution
Prospective employees browses through the market to find an
employer who offers benefits, higher salaries, and professional
development opportunities. Companies are experiencing
organization change due to performance, new technology, and high
turnover. Millennials are looking for more challenging
opportunities, so Human Resources (HR) professionals must
consider providing employees with the resources to become a
leader. Executives envision large scale corporate development and
expansion in the global market. Telecommunications executives
believe the most important factors facing the firm are
organizational design, leadership, culture, and engagement (Pelster
& Schwartz, 2016).
Although HR is not a profit-generating business sector, the team
provides the firm with the human capital to succeed plus HR has a
strong impact on business alignment and corporate governance.
Roughly 80% of companies operating expenses are talent related
(Abnett, 2015). In order to fulfill the executive team’s vision, the HR
team must find ways to showcase the firm’s culture and leadership
opportunities through creative recruiting methods. Benefits,
training and development, compensation programs, corporate
culture, and office environment are the primary factors prospective
hires look for in an employer. Corporate norms are changing, and
employees are noticing the changes as 88% of employees are
overall satisfied with their job (Lee, et al., 2016). Studies have
shown by providing additional resources, retention rates rise, which
decreases employee turnover and costs associated with hiring and
training new employees.
Human Resources is transitioning to a people pleasing business unit.
Companies like Google, Amazon, and Jet.com introduced a Chief
People Officer (CPO) position. Executives created the position to
oversee talent acquisition, performance feedback, benefits, and
culture. The responsibility of the CPO is to authorize all HR
functions and to report directly to the CEO in regards to human
capital performance. To go even further, Google retitled their
Human Resources department as the “People Operations.”
The purpose of this paper is to showcase the current human
resources best practices in the telecommunications industry and the
market.

Employee Engagement
Performance is directly related to the employee’s ability to work,
their motivation to work, and given opportunities. An employer can
affect these elements through the workspace in ten different ways.
Employee engagement stems from the CEO.
Firms compete to win “best places to work” surveys by showcasing
their benefits, designing workplaces, and developing corporate
cultures. Some factors that are driving the change in employee
engagement include:
 Companies want workers with technology backgrounds
 Millennials lack loyalty to their employer
 Candidates browse through various publications to
determine if a company is a good place to work
For the first time since 2012, employee
engagement has topped 33%, and as of March
2016, employee engagement is 34.1%
Figure 1. Employee Engagement from CEB (CEB, Driving Business Performance in
the New Work Environment)

With advances in technology, employers are becoming more
globalized and diverse,
in age, gender, and
national origin. So, HR
must develop
programs to improve
employee engagement
by bridging the gaps
between generations
and cultural divides.
Team work and team
leadership are
conducive to
employee
engagement. For the
first time since 2012,
employee engagement
has topped 33%, and
as of March 2016,
employee engagement
is 34.1% (Adkins,
2016). Another factor
coming into the
workplace is the need
for immediate
feedback. General
Electric recently
introduced an
application that
provides immediate feedback to their employees’ goal progress
(Nisen, 2015).
Quicken Loans attributes the success of their customer service to
their employee
engagement. The
CEO and Human
Resources executives
work together to
identify problems
affecting employee
engagement and
create solutions.
Quicken Loans’
headquarters has
open offices, bright
colors, and flex work
spaces to encourage
collaboration.
Executives relied on
employee feedback to
determine how to
restructure the
headquarters to
better meet their
needs. In addition,
Quicken Loans offers
child care, exercise
classes, snack food,
and other amenities.
This is an example of
a company who is not
in Silicon Valley but still offers all the amenities of a Silicon Valley
company (Pelster & Schwartz, 2016).
Figure 2. Factors Affecting Productivity (Wright, 2016).

The Walt Disney Company, Make-A-Wish, Subway, and Google have
launched initiatives to retitle positions in an effort to increase
performance ratings. Retitling is not for every company, experts
suggest it is best for large, dominant companies or start-ups. But
they suggest trying it with a couple small business units to see the
effects.
 Make-A-Wish, workers brainstormed new titles for
themselves, some examples include, a nurse became “quick
shot,” X-ray technician became “bone seeker,” and an
infectious disease specialist became “germ slayer.” At the
end of the study, the results revealed those employees
experienced less emotional exhaustion and felt more
recognized for their work.
 A similar experiment was done at a European brewery. A
collective group of employees created their own position
title, rather than individuals creating their own. After three
months employees were more satisfied with work and more
aligned with the business (Grant, Berg, & Cable, 2016).
Retitling motivates employees to feel inspired by their work which
increases performance ratings within the firm. Some HR
professionals are nervous about pursuing this option because job
transfers and hires are more difficult for candidates and recruiters.
Employee Engagement can be measured through focus groups,
surveys, and turnover data. Through this information, HR can
determine what’s working and what employees are looking for.
In general, employees feel defined by titles or roles, so by giving
them unique or unusual job titles, employers can improve
happiness and productivity. Millennials tend to connect more with
unique job titles rather than Baby Boomers. Walt Disney was one of
the first employers to use unique job titles for his employees. In
addition, Walt Disney implemented a first-name basis for his
company to give employees (or Cast Members) the sense of a flat
structure yet in a hierarchial business structure. In addition, Disney
encourages managers to think in four ways:
1. Display genuine care for staff members. This does not
include benefits like health care and gym memberships but
is more concerned with engaging employees on a personal
level.
2. Create a hassle-free workplace. Disney encourages their
leaders (or managers) to ask questions and actively listen to
what employees have to say. Leaders are then told to
implement changes to help improve the workplace.
3. Cultivate developmental opportunities through job or
responsibility rotational programs. Disney leaders are
rotated throughout the company so they develop a stronger
understanding of the different lines of business and
locations. Cast members develop a strong work ethic and
are more engaged as they are faced with new challenges
and perspectives.
4. Overmanage the process by “operationalizing” care. Disney
encourages their leaders to pay extraordinary attention to
the providing general care to their employees. The
workplace is full of deadlines and stress associated with
that, so managers need to support and care for their
employees (Jones, 2014).

All of these strategies Disney implements help improve the
employee engagement levels and employee retention by
training managers to focus more on the employee than on the
customer. Based on over 2,000 reviews, Indeed.com rates
Disney employee satisfaction as a 4.3 out of 5. A majority of the
reviews discuss the work atmosphere and the internal support
teams.

Health and Wellness
The design of a workplace provides opportunities for employee
engagement and performance. The WELL Standardi
offers an
opportunity for employers to showcase their workplace
environment. The WELL Standard assesses seven performance
inducing aspects of the office environment. Lighting is considered
to be the most important factor: dimmed lights lower worker
productivity and fluorescent lights cause headaches (How Your
Office Environment Can Affect Employee Productivity, n.d.).
Employers who follow the WELL Standard see an increase in
employee productivity, employee collaboration, and employee
health (WELL Building Standard, n.d.). If employers focus on
creating collaborative and health-focused workplaces, they can
lower the chances of sick building syndrome and medical insurance
rates.
Through Verizon’s health-and wellness initiative, women receive
free on-site mammography screenings, employees can use the
fitness centers, or pay $15 a month for one-on-one fitness coaching
or health and nutritional training (Verizon is the 2013 DiversityMBA
#1 Company for Diversity Leadership, 2013).
Google’s headquarters has been converted into second homes for
the employees. Although Google stocks their cafes with healthy
food, they also stock it with junk food but do so in a way to
discourage consumption. Junk food is placed behind opaque glass
with visible nutrition labels, while healthier options are placed
behind transparent glass. Within the first week of the program,
2,000 Google employees consumed 3.1 million fewer calories. In
addition, water consumption rose 47% and sugary drink
consumption fell 7%.
Companies have to be careful with free food offerings. If employees
eat too much sugar or high-calorie snacks, their mood will be
adversely affected. However, if companies offer free fruits and
vegetables, employees tend to be more engaged, happier, and
creative. More so in the technology industry, food is used as a
motivator to encourage employee engagement.
Fitbit offers a corporate wellness program through their fitness
trackers. Productivity, employee engagement, and retention rates
increase with the implementation of a fitness, or corporate
wellness, program. Adobe, BP, GNC, Redbox, and NetApp have
implemented the Fitbit corporate wellness program. Fitbit hosted a
Figure 3. Wellness Program Benefits (Fitbit for Corporate Wellness, 2015).

corporate wellness seminar in San Francisco, Calif. In June 2016.
Immediate results come from an increase in oxygen flow from
increased activity levels which directly impacts memory and
awareness.
Firms are using third-party vendors like Exos to build their corporate
wellness programs. Exos focuses on four key pillars to success:
Mindset Nutrition
Movement Recovery
When properly implemented, the four pillars increase employee
productivity and employee mental and physical strength. Exos
provides fitness equipment and professional trainers to help
employees improve their well-being. Depending on what level of
integration, Exos will also operate the firm’s cafeteria and provide
meals that compliment the employees workout. Current clients of
Exos are Adidas, Walgreens, and Abbott Nutrition.

Recruiting
In 2013, businesses spent nearly $70 billion nationally on recruiting
services, staff, and products (Bersin, Corporate Recruiting Explodes:
A New Breed of Service Providers, 2013). More recruiters are
required to have a LinkedIn recruiter license, yet many do not
believe LinkedIn is a successful tool anymore because there are too
many candidate profiles.
When placing candidates, recruiters are using assessment services
like the Myers-Briggs personality test to determine if candidates are
the right fit for the job and the company. Within a margin of error,
personality assessments can accurately predict if a candidate will
work well with their peers and/or manager. The most effective way
to recruit, according to Forbes, is through BigData. Companies are
using Broadbean, Burning Glass, and eQuest for their BigData needs
to help improve the firm’s recruiting efforts (Bersin, The 9 Hottest
Trends in Corporate Recruiting, 2013).
In 2013, British Telecom signed a contract to use Oracle’s Fusion,
cloud-based Human Resources software, with BT employees
throughout the world (Goodwin, 2013). BT moved from PeopleSoft
to Oracle. As a global company, BT can now simplify their Human
Resources processes and view data in real-time. Having real-time
data allows BT to make decisions less based on insights and
analytics, which allocates more time for managers to focus on
people management than data collection.
Along with Bloomberg and McKinsey, Google is using Burning Glass’
LENS Suite to manage and search for candidates. Oracle and IBM
Kenexa-BrassRing use eQuest for their BigData recruiting needs.
Google spends on average four to five times more on recruiting
than any other company because they believe the goal of Human
Resources is to hire great people.
Fortune 500 companies are having difficulties recruiting because
they have not been able to create a work environment that appeals
to GenX, GenY, or Millennial candidates. Millennials currently make
up more than half of the workforce, a catalyst for organizational
change. Baby Boomers are struggling to adapt to the changes in the
workplace and ultimately are leaving their long-term employers.
Technology is creating a “digital HR” by changing the way recruiters
attract talent, companies are using innovative technology to
improve the work experience, and the internet is making business
more global (Pelster & Schwartz, 2016). Another way HR teams are
Figure 4. Social Media and Mobile Recruiting (SHRM Social Media Recruitment and Screening Survey
Report, 2016).

attracting talent is through virtual reality. HR specialists offer
applicants the opportunity to experience jobs through virtual reality
glasses. Not only does this introduce applicants to the job type, it
also shows the trendsetting culture of the company.
Mobile recruiting is encouraging recruiters to post job listings like
advertisements on mobile websites (Noguchi, 2015). Furthermore,
mobile recruiting demonstrates to candidates the employer has a
good understanding of technology. Millennials are heavily tech
savvy and prefer to work for companies who understand and
promote technology. In 2014, USG Corp. began their mobile
recruiting initiative to attract more millennial workers. Over the
course of one quarter, applications jumped 26%.
AT&T has implemented their own “talent network” to provide more
insight to potential candidates regarding jobs and the nature of
AT&T’s business. Telecommunications and technology companies
are fortunate to have as many recruitment firms as they do,
Randstad SourceRight, Korn Ferry Futurestep, and Kelly OCG are just
a few of those available. From a social media standpoint, both
Verizon and AT&T are actively posting updates to their site to
increase their brand awareness. Both companies focus on
promoting what they can offer to their employees.
AT&T is also focusing on recruiting women and minorities into the
STEM field. The “Know and Grow” initiative focuses on providing all
females and minorities a senior executive mentor to help with
professional development (Rizy).
As HR is becoming more digital and technology based, companies
are using these opportunities to connect with the applicant. Sure,
companies can do Mail Merges and send a batch of emails to
prospects to save time. Or, companies can use social media and the
resources available to them to connect on a personal level with
candidates. Recently, Google took advantage of these
opportunities. A People Operations Specialist at Google messaged a
candidate by referencing all of his LinkedIn skills. Jubilantly, the
candidate then posted on Twitter and received a response from the
recruiter. These types of interactions are effective in acquiring
talent that otherwise would be overlooked.
An Ernst & Young survey asked telecommunications executives
what they believe can provide the most positive impact on their
operating model and 55% of respondents agreed acquiring talent
with new forms of expertise was the best option (Global
Telecommunications Study: Navigating the Road to 2020, 2015).
Executives are more concerned now with how to provide a
competitive advantage against other telecommunications firms and
executives see customer relations and experience as the best
opportunity. In order for organizations to improve their customer
relations departments, they must first need to improve their
recruiting and ensure they are looking for the right candidates.
Figure 5. Verizon LinkedIn Post captured May 6, 2016 at 9:32am.

Figure 6. Corporate Culture

Culture
Companies use their culture as a competitive advantage in the
transparent job market. Ultimately, culture is an indicator of a
company’s health in relation to the business strategy. Culture is
implemented to encourage collaboration and communication
through team work. A company’s culture establishes the
requirements for what recruiters are looking for in candidates. HR
measures the success of a culture through employee engagement,
feedback, and publicity through social media and other outlets.
Executives need to participate in the corporate culture and
demonstrate the organizational values to encourage full
participation.
The actual values a company believes in are shown by who gets
rewarded, promoted, or terminated. Netflix believes in nine values:
Judgement, Communication, Impact, Curiosity,
Innovation, Courage, Passion, Honesty, Selflessness
Netflix has seven aspects of culture:
 Values are what we value
 High performance
 Freedom and responsibility
 Context, not control
 Highly aligned
 Pay top of the market
 Promotions/demotions (Hastings, 2009)
The nine values give Netflix employees the ability to approach their
managers and managers treat their employees as competent
workers. The seven aspects of culture combines with the nine
values give employees accountability of their projects and their
work load. This process took a while to gain strength at Netflix and
experienced missteps throughout the process. First of which was
raising the cost by 60% and contemplating a spin-off company in
2011, which resulted in an 800,000 customer decrease. However,
from missteps similar to this, Netflix has improved their culture and
values and transformed it into the so-called “Netflix Culture Deck,”
which has been distributed throughout the marketplace for
different companies to learn from and how to properly treat their
employees.
Companies need to be able to measure their culture. In each
situation, the employee and the business strategy are considered:
 Starbucks analyzed social media posts to understand their
cultural strengths and weaknesses through their employee’s
point of view
Figure 7. Employee Rankings of Cultures (CEB, Maximum Impact of Culture on
Discretionary Effort, 2016).

 Nordstrom created a People Lab Science Team to create a
culture that attracts top talent
 Securitas Belgium defined behaviors that work with their
culture
Silicon Valley companies are leading the trend in providing
amenities. Forbes rated Google as the number one company to
work for. In 2015, Google received 2.7 million applications but only
hired 1,000 (100 Best Companies to Work For, 2016). Google
expects culture to encourage creativity within their team as they are
provided with collaboration opportunities. Some amenities Google
offers are:
 Pilates
 Communal spaces that resemble studio apartments or
subway cars
 Coffee bars
 Bowling alleys
 Bocce courts
 Weekends off
 Eyebrow waxing
 Courses taught by Ivy League professors
 On-site celebrity interviews
 Health consultations (Stewart J. , 2013)
Culture can be a barrier to integration during mergers and
acquisitions, however, Deloitte considers culture to be very
important during mergers and acquisitions because it offers an
opportunity for a new culture (Pelster & Schwartz, 2016). In 2015,
Hewlett-Packard Co. split into HP Inc. and Hewlett-Packard
Enterprise. The business created a new sales culture and
environment that supported high-performing salesmen. HP Inc.
used analytics based on the sales behavior and competencies of
their salespeople, as a result, HP Inc. developed a “culture
commitment” to transform the company’s sales culture (Pelster &
Schwartz, 2016). During the largest financial merger, Wells Fargo
evaluated Wachovia’s values and culture to determine they were
compatible. Wells Fargo believes this is why the merger was so
successful.
Figure 8. Firm Priorities from Executives

Culture creates a much better sense of internal morale than any
other program, including retention, professional development, or
compensation. If employees feel they can express their ideas freely,
they will be more productive. The Container Store experiences at
least 20% annual growth per year and the executive team attributes
this to open and welcoming corporate culture.
One overshadowed aspect of corporate culture is the dress code. In
May 2016, J.P. Morgan Chase announced their dress code is now
business casual. The executive team at J.P. Morgan realized more
clients are dressing casually, so as a way of not intimidating clients,
J.P. Morgan Chase allows their employees to dress down. In
addition, J.P. Morgan realized their employees were wasting time
picking out their suits and clothing for the day. In the waning age of
business formal, firms like Crowe Horwath still issue videos outlining
what employees can wear, but they have finally begun to allow
jeans in the office.
Companies can successfully develop culture by establishing a vision
that is well communicated throughout the company and is
applicable at all levels of the organization. Roughly one-third of
employees believe executives have the ability to transform of
develop a sense of corporate culture. Executives that emphasize
collaboration amongst employees have the best odds of successfully
implementing or transforming corporate culture.
How are we to measure the success of a corporate culture? No one
has developed a formula for corporate culture, so what are the
metrics to use? Some companies use employee engagement,
retention rates, and performance reviews to measure their
corporate culture. A broader focus can be placed on how a
company achieves their goals rather than what the company
achieves; the process to accomplishing goals far outweighs what
those goals were because it provides insight to the values set in the
company. However, the best way to measure corporate culture is
through the firm’s competitive advantage. What makes this
company desirable? Is it the product or the service? Happy
employees and employees who embrace the firm’s values are much
better at assisting customers. Customers who experience bad
representatives or employees are less likely to be repeat customers,
which is a direct representation of the corporate culture.

Corporate Social Responsibility
Corporate social responsibility (CSR) is becoming a priority not only
of companies but their customers, employees, and investors.
Previously, very few Fortune 500 companies filed sustainability
reports or talked about CSR, and now more companies are showing
how they can impact the environment, community, and social
causes. CSR can help companies portray a different brand image. In
addition, CSR retains talent and improves employee engagement. 7
in 10 millennials consider a company’s CSR before applying or
accepting an offer. Millennials are looking for companies who
support everything from philanthropic to environmental
sustainability which creates a sense of shared value for the
employees. Many companies are now focusing on the “3 P’s”
principle: people, planet, profits. Companies are believing in giving
back to the community to help build safe neighborhoods and
successful schools that will pave the way for future business
leaders.
Fortune 500 companies are leading the trend in CSR. The size of a
business has no bearing on a firm’s CSR initiative. Large firms like
Coca-Cola are setting trends in the CSR environment. In 2012, Coca-
Cola announced a plan to hire five million women by 2020 through
local bottlers and distributors of Coca-Cola products. The 5x20 plan
not only helps Coca-Cola but it helps the communities where Coca-
Cola has bottlers and distribution warehouses by providing better-
educated, healthier families, and more successful communities
(Wharton School, 2012). In addition, Coca-Cola is investing in
technology that reuses water throughout the production of their
soft drinks. Coke already recycles old bottles and cans into scarves,
clothing, and bags but Coke won’t be satisfied until they create an
edible bottle (Kowitt, The Coolest Things Ikea, Coca-Cola, and
Walmart are Doing to Cut Waste, 2016).
Ikea is leading the market in CSR practices. Ikea is positioning itself
to be a 100% sustainable by 2020. Through investments with
renewable energy companies like PV systems, Ikea is cutting their
utility costs and saving the environment. Plus, Ikea operates 29
wind farms and invested 1.6 billion Euros into renewable energy.
The majority of their store locations are powered by solar panels on
the roof. Next year, Ikea will test their furniture recycling program.
Customers bring in old furniture, receive a voucher, and Ikea
recycles the furniture into spare or repair parts (Kowitt, The Coolest
Things Ikea, Coca-Cola, and Walmart are Doing to Cut Waste, 2016).
A firm’s CSR should align in three ways: philanthrophy, operational
effectiveness, and business models. A firm’s first CSR responsibility
is focusing on the philanthropic nature of the mission. Firms should
be seeking to help with civic organizations, engagement with
community initiatives, and support and encourage their employees
to volunteer. Next, CSR programs should improve operational
effectiveness. The programs should provide social and/or
environmental benefits in ways that the company is otherwise
unable to do. However, these activities or programs may reduce
emissions, reduce costs, and improve productivity, retention, and
engagement. Lastly, CSR programs should be designed to transform
the traditional business model. This includes promoting your
products but also reaching out to underprivileged individuals who
could sell your products. This part of CSR is mainly focused on
improving economic, environmental, and social challenges that face
regions of the world and country.
Internal community outreach teams can provide metrics on the
firm’s CSR wins. One way in particular is through a charitable giving
matching program, the outreach team can then determine how
much money employees have donated and how much the firm has
donated. Similarly, firms can offer volunteer field trips for their

employees to take time off from work and go with fellow employees
to volunteer for the local community. This increases employee
productivity and engagement by taking employees away from work
for an hour to then come back refreshed. Firms can take this data
and track the number of hours employees have given to their local
community. Employers can use volunteering as an incentive for
their employees, so the volunteer who gives their most time
receives some type of award. Sustainability programs are another
way to improve the CSR of the firm and of the employees. All of
these opportunities stem out of the Community Outreach division
of firms.

Retention
Human Resource performance has been growing since 2013. In
2016, 38% of executives rated the performance of Human
Resources good or better HR is innovative, aligning itself with
business needs, and retraining employees (Pelster & Schwartz,
2016). In response to the lack of employee engagement, retention,
leadership, and culture executives are redesigning their corporate
structures. For a successful transition and to attract top-talent,
executives and Human Resources officers must work synergistically.
Deloitte believes the employee-employer relationship is changing.
For employees to move vertically in their career, they will work for
multiple employers providing them with experience at each stage.
However, if companies provide professional development, retention
rates will increase. In a 2016 study, executives considered
organizational design, leadership, culture, and engagement the
most important priorities facing their firm. Four years ago,
executives believed leadership, learning, and HR skills were the
most important priorities. In response, companies are
decentralizing authority and assigning it to teams. As a result of the
millennial demographic, global teamwork as a focal point, only 38%
of all companies are still functionally organized (Pelster & Schwartz,
2016). Additionally, employees want to feel like they have a
purpose. Some companies are retitling positions from traditional
titles to more impactful names. Employees who retitle their
position are more satisfied with work, more aligned with the
business, and less emotionally exhausted.
When considering employee retention, companies like Netflix use
the “Keeper Test,” “Which of my people, if they told me they were
leaving, for a similar job at a peer company, would I fight hard to
keep at Netflix?” (Hastings, 2009). Netflix only wants star
employees who consistently work hard for the firm. Similarly,
Zappos will pay employees $2,000 within their first week of training
to quit if candidates do not to embrace the company’s mission
(Tsang, 2016). Retention is an issue with companies but proper
talent acquisition is as well.
During annual performance review periods, employees are
preparing to bargain for more benefits and perks in addition to a
raise or promotion. Employees want flexibility in their work
schedules, office or desk location, vacation time, or the number of
projects they receive; employees also look to negotiate
telecommuting, gym memberships, dry cleaning costs, child care,
transportation expenses, parking spots, and education expense
reimbursements (Smith, 2012). Companies leverage their benefits
and perks to attract and retain younger employees.
Glass manufacturer, Corning has implemented four strategic tactics
to improve employee engagement:
 Identify specific outcomes and metrics for each phase of the
talent planning process and rebrand talent to a focus on
outcomes and actions
 Allow employees to search the intranet for new
opportunities within the firm for professional growth
 Develop a new succession plan that is unbiased and
automated to select the more qualified successors
“Which of my people, if they told me they were
leaving, for a similar job at a peer company,
would I fight hard to keep at Netflix?”

 Encourage manager-employee coaching through an open
door policy designed to better align the employees goals
with the organizations mission (Training and Development,
2014)
In an effort to retain employees and improve loyalty, Chobani
announced employees will receive ownership of the company if it
were to file for an IPO. Full time employees will receive “Chobani
Shares” based on their tenure and role at the company. “Chobani
Shares” can be converted to either cash or tradeable shares if the
company were to file for an IPO. The average “Chobani Share” is
estimated at $150,000, so many employees could have over $1
million. Many technology companies already offer this stock grant
program to their employees. In October 2015, Apple allowed all full
time employees to invest in restricted stock. About 20 of the largest
900 S&P companies allow their employees to invest in restricted
stock (Miller, 2016).
Turnover can be a good way to refresh the organization. By
bringing in new workers, organizations are gaining new mentalities
and ways of thinking, “fresh blood.” Also, technology is constantly
changing which causes skill requirements to change, so rather than
paying to train employees on the new technology, companies can
bring in younger talent with experience. Lastly, for every low-
performing employee a firm terminates, a high-performer can serve
as the replacement. Yet, turnover can be seen in a bad light
because firms can lose critical organizational skills and knowledge,
there is a small pool of talent for certain jobs, and it has a direct
impact on the workplace environment and the business.
Millennials and GenY workers are causing an increase in the
turnover rate as they are more willing to switch jobs and leave their
current employer. GenY workers combine for more voluntary
turnover than both GenX and Baby Boomers combined. In
European countries, Baby Boomers are leading the charge in
voluntary turnovers and GenY workers are actually staying loyal to
their employers.

Compensation
Average wages for the Information industry have increased by
4.4% from $34.74 to $36.26 per hour since April 2015. This is the
second highest wage, only falling short to Utilities ($39.79) (Table
B-3. Average Hourly and Weekly Earnings of All Employees on
Private Nonfarm Payrolls by Industry Sector, Seasonally Adjusted,
2016).
Wages for telecom workers increased from $31.37 in December
2015 to $31.70 in April 2016, an increase of 1.04% within 4 months
(Industries at a Glance: Telecommunications: NAICS 517, 2016).
The Bureau of Labor bunches wired telecommunications carriers,
wireless telecommunications carriers (except satellite),
telecommunication resellers, satellite telecommunications, cable
and other program distribution, and other telecommunications
under the telecommunications subsector of the information
sector. Employment within the telecommunications subsector has
decreased since the beginning of 2016, dropping from 803,000 to
797,800. As a result, the unemployment rate within the
telecommunication subsector has increased from 3.1% to 4.3%.
Swedish-based furniture company, Ikea, believes in a flat
structured organization allowing every employee to feel a sense of
leadership and accountability. Ikea consults the MIT Living Wage
Calculator to determine a livable wage for all of their employees
and discourages overworking (Kowitt, At Ikea, Everybody is Equal,
2016). Rather than paying at an unlivable wage, Ikea pays their
lowest earning employees enough money to live a comfortable life.
Ikea has a great 401(k) program that increased the employer-
matched contributions.
Financial services company, First American pays their sales
representatives an average annual base pay of $55,194 with the
opportunity to make $85,000 in additional compensation. First
American motivates their salesmen with the opportunity to win an
Figure 9. Telecom and Company Rates (Industries at a Glance: Telecommunications: NAICS 517, 2016).

all-inclusive trip to an exotic location.
Plus, salesmen still have the opportunity
for bonuses, raises, and profit sharing
opportunities. Salesmen at First American
average $140,105 a year.
Incentive pay can be a useful method to
encourage productivity and employee
engagement. The goal of incentive pay is
to drive productivity towards
accomplishing business strategic goals and
differentitating employee based on the
value they provide to the end goal.
Incentive pay should be rewarded to
employees who exemplify exceptional
work performance in their normal duties
that contribute to the firm’s success.
Conversely, incentvie pay can demotivate
high-performing employees. If C-suite
executives earn incentive pay, while
middle-management does not, employees
will become demotivated and productivity
will suffer. To combat this, executives can
align incentive pay throughout the
organization and give every worker the
opportunity to earn extra money.
Compensation surveys are becoming
more popular tools for HR professionals,
especially third-party reviewed surveys
which tend to be more reliable.
Specialists recommend if companies use
free surveys, they should compare the
results to at least three other surveys.
The best free survey is the BLS data,
otherwise surveys can cost from hundreds
to thousands of dollars depending on the
parameters.
When HR recruiters and managers look to
set compensation levels, the best strategy
is to benchmark jobs based on two or
three comparable positions in the
industry with similar skill sets. Firms are
also taking advantage of The Bureau of
Labor’s statistics and salary averages to
help them hoan in on the appropriate
amount. If the comparable jobs are not at
least 70% similar to the job-in-question,
then other surveys should be used to
provide a more accurate benchmark.
Compensation specialists need to be
careful when comparing jobs to just look
at the requirements and skill set rather
than the title because they can vary
across all industries.
Lastly, it is a good practice for HR
professionals to document everything to
provide rationale regarding compensation
or any HR related issue. Accurate
documentation is a catchall for any
internal (or potentially external)
confrontations.
Figure 10. Incentive Planning Strategies for Employees and Middle
Managers

Diversity
AT&T and Verizon are the current telecom leaders. Both companies
implement a diversity strategy that employs both racial diversity but
also opportunities for veterans and people with disabilities. In
2013, Verizon was rated as the number one company for diversity
leadership which includes a diverse workforce, conducting business
with diverse supplier and serving a diverse customer base.
Additionally, Verizon provides a Veteran Advisory Board to help
support newly hired veterans become acclimated with the work
environment (Verizon is the 2013 DiversityMBA #1 Company for
Diversity Leadership, 2013).
A diversity initiative encourages employee engagement. Companies
need to be able to manage different generations and different
genders, races, cultures, and sexual orientations to provide a
sufficient workplace that encourages flexibility, creativity, and
purpose (Pelster & Schwartz, 2016). AT&T believes in self-managed
teams that incorporate individual diversity, these projects not only
work together for a common goal but also take on the management
of the project.
In 2008, AT&T created their Aspire program to help prevent high
school dropouts by providing students with necessary tools and
support. Aspire teamed up with Junior Achievement to provide job
training and shadowing for high schools students (Rizy). AT&T
realized this program will help support the telecom industry by
providing more students with the resources they need to succeed.
Diversity can go wrong in companies. It might seem like a great idea
to recruit minorities but you can’t make a square peg fit into a
circle. Too many companies are recruiting minorities without
considering the culture of the firm, too many companies fail
because the minorities do not thrive in the organizational culture.
Rather, executives should adjust and make changes to the
workplace that embraces the workplace diversity. Experts believe
the six key values firms need to meet for a successful diverse work
environment are:
1. Create a cultural and generational mosaic
2. Embrace risk as the new normal
3. Continuously see and seize opportunities
4. Make room for the individual
5. Do well by doing good
6. Create a family (Llopis, 2011)

Benefits
Corporate benefit spending has outpaced wage growth for over 10
years. Large sized companies (500 or more employees) are the
focus of benefit growth. Benefits will not impact retail or food
services but will affect careers of high-performing employees. The
number one benefit employees look for is health-care insurance
(Greenfield, Company Perks Keep Getting Nicer, But Only for Some
Workers, 2016).
AT&T provides employee training, adoption assistance, leave of
absence, veterinary insurance, auto insurance, and home insurance.
Verizon refers to their benefits as “rewards” and offer
medical/dental/vision/life insurance, paid vacation, training, tuition
reimbursement, time away, family care, and savings discounts (Raja,
2014).
About 40% of businesses are expected to move their health care
benefits to an exchange by 2017 which will free up functional time
and internal resources. Outsourcing health care benefits will help to
grow the total benefits package to attract and retain more talent
(Training and Development, 2014).
In March 2016, Etsy and Fidelity expanded their paid leave policies
for employees. All of Etsy’s employees are eligible for 26 weeks of
paid paternity or maternity leave, this policy is available regardless
of gender or family circumstances and includes adoptive parents.
Only 12% of American workers are covered by paid leave policies
Netflix recently provided unlimited parental leave while Facebook
gives new parents $5,000 in “baby cash.” Pinterest offers a parents
three months’ paid leave plus a month of part-time hours, and two
counseling sessions to help them readjust to the work environment
(Greenfield, Company Perks Keep Getting Nicer, But Only for Some
Workers, 2016). Fidelity also offers student debt repayment up to
$10,000. About 70% of American students are graduating with an
average debt of $35,051 (Greenfield, Etsy and Fidelity Expand Their
Family Leave Policies, 2016).
Some other companies with employee-centered perks are:
 Zillow offers perks for recent mothers. If women
employees are traveling, Zillow will ship their breast milk
back home
 Campbell Soup has an on-site kindergarten, after-school
programs, and lactation rooms for nursing mothers
 Cisco offers physical therapy, primary care, and
acupuncture
 General Mills created the FUSE (Flexible User Shared
Environment) program that allows employees to sit
wherever
 Hershey Foods Corp. provides fitness centers, tuition
reimbursement, and immediate eligibility for 401(k)
matching program
 J.M. Smucker Company holds bowling nights and softball
games for the employees. Smucker’s also reimburses 100%
of tuition
 Boeing allows employees to take 12 paid holidays and a
winter recess between Christmas and New Year’s Day
 Johnson & Johnson offers private concierge services to their
employees which includes returning library books to picking
up dry cleaning
 Visa offers free exercise classes, sports teams, clubs, and
discounted tickets to events. Plus, employees who
commute to work by bike, car pool, or public transportation
receive additional benefits
 Yahoo employees have on-site fitness centers with yoga,

kickboxing, and golf classes. Employees also have
discounted ski resort rates (Stanger, 2013)
 Google offers a death benefit policy for spouses to receive
half of their partner’s salary for ten years and children
receive $1,000 until they reach 23 (Casserly, 2012)

Training and Development
Human Resources initiatives are requiring new employees go
through the same training to learn the nature of the business:
Zappos requires all employees spend their first four weeks in a call
center, Twilio expects all of their employees are capable of coding,
and Twitter employees attend Twitter University on a weekly basis
(Tsang, 2016).
Firms are working to increase the allocated budgets for leadership
and development projects. 2014 was the first time in 3 years that
companies allocated more money to the L&D budget. HR teams
should determine the potential value of the L&D initiative by talking
with organizational leaders, assess the value of learning requests,
and prioritize learning opportunities to the business mission and to
create a profound business impact.
Only 24% of employees believe their manager helps them meet
their development goals. SMART goals and development plans have
been shown to increase the amount of support from managers and
shown to increase employee engagement.
 Adobe moved to a performance management system that
focused on SMART goals and professional development.
Employees have Employee Resource Centers (ERC) to
support their professional development and networking
abilities. Employee engagement and collaboration
increased as a result of the ERC. Adobe’s team leaders are
accountable for providing tough, challenging projects to
their team members.
 Goldman Sachs provides training for managers to help
coach employees to their goals. Managers are taught to
isolate the most effective development methods by talking
with various leaders and employees to determine the most
meaningful source of their development. They are also
taught to create an experience-oriented individual
Over 60% of organizations are working to dramatically increase
leadership investment training programs. Managers,
employees, and leaders can finesse their skills through learning
opportunities with peers.
 Shell develops leaders through their ongoing peer support
and the use of their skills within the work environment.
Shell helps employees identify networking peers within the
organization, empowering leaders to take the lead in
networking sessions, and going beyond idea sharing into
applying skills to break down barriers (Training and
Development, 2014).

Measuring Effective Human Resources Efforts
In the 1970’s, Lockheed-Martin formed the basis of measuring the
return on investment (ROI) of Human Resources. Measuring the
ROI of a Human Resource program is a great way to improve the
level of respect and support for future Human Resources initiatives.
As previously mentioned, Human Resources is not a profit
generating area of the company but it is a value creation center that
supports the profit generating teams by providing them with high-
performing individuals.
Researchers from the ROI Institute developed a multi-stage model
to measure the ROI on Human Resources, see Figure 9. There are
eight key stages which support the final report:
1. Evaluation planning – The development of appropriate
Human Resources objectives to meet organizational goals
and how the team will collect the data.
2. Collective data – Human Resources members are tasked
with collecting data that happens during and after the
initiation of the Human Resources plan. Typical ways to
collect the data is through questionnaires, action plans,
interviews, focus groups, and performance monitoring.
3. Isolating the effect of the Human Resources
program – The Human Resources team needs to eliminate
any biases from altering the data. Analysts need to use
control groups, trend line analysis, and expert estimated
strategies to prevent the skewing the performance data.
4. Converting data to monetary values – All of the
collected data needs to be converted to a monetary value
which accurately reflects the value gained or lost by the
organization due to the Human Resource program. Experts
use a five step process when calculating value: determine
the units, determine the unit’s value, calculate the change in
performance, determine annual improvement, and calculate
total monetary value of the improvement. Many strategies
exist for Human Resources teams to assign value to
activities like using historical costs, internal or external
experts, external databases, or estimate the costs. When
estimating the costs, Human Resource associates ask
managers how much they believe the value is and their
certainty, the product of the two is how much the cost is.
For example, if a manager believes the daily value of anFigure 11. Human Resources ROI (Phillips & Phillips, 2014).

employee is $2,500 and they are 90% confident, the daily
cost of that employee is $2,500 x .90 or $2,250.
5. Tabulating the cost of the Human Resources
program – Cost to the Human Resources program typically
includes initial analysis and assessment,
development/design cost of the program, participant time
for the program, implementation costs, maintenance costs,
administration costs, and evaluation costs. All of these
values amount to the total cost of the Human Resources
program, which is the denominator for the ROI calculation.
6. Calculating ROI – The numerator of the formula is the net
benefits gained/lost by the program and the denominator
are the total costs of the program.
𝐵𝑒𝑛𝑒𝑓𝑖𝑡 𝑡𝑜 𝐶𝑜𝑠𝑡 𝑅𝑎𝑡𝑖𝑜 =
𝑇𝑜𝑡𝑎𝑙 𝐵𝑒𝑛𝑒𝑓𝑖𝑡𝑠
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡𝑠
Net Benefits (Costs) = Total Benefits – Total Costs
𝑅𝑂𝐼 =
𝑁𝑒𝑡 𝐵𝑒𝑛𝑒𝑓𝑖𝑡𝑠 (𝐶𝑜𝑠𝑡𝑠)
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡𝑠
𝑥 100%
7. Identify intangible benefits – At some points monetary
value can be lost or miscalculated, then the benefits or
values should be listed as intangible benefits with a note
explaining why a value cannot be calculated. Some
intangible benefits are job satisfaction, organizational
commitment, teamwork, and customer satisfaction.
8. Reporting results – Finally, the Human Resources team
must generate an impact study to highlight the results of
the implementation of the program.

Conclusion
With every generation comes change. Human Resources accounts
for the generational differences between employees and the
corporate culture. Executives set the vision for the culture and HR
teams are tasked with accomplishing the mission. Millennials are
entering the workforce at an astonishing rate that is almost
overwhelming. Plus, Millennials lack loyalty to their employer and
are expected to have many jobs throughout their career. However,
HR teams can quell this by providing resources for professional
development, opportunities for growth, and amenities that alleviate
daily stress.
Recruiting is becoming data driven and HR recruiters are looking for
new ways to grab the attention of their candidates. Mobile
recruiting is a growing strategy to pull in applications for job listings:
the process is easy, accessible, and always available. Similarly,
BigData is playing an increasing role in HR. BigData is helping HR
teams analyze and locate low performing areas, plus BigData allows
recruiters to track applicants throughout the entire process.
Through the last recession, employee retention was difficult due to
smaller budgets so firms needed another bargaining point, benefits.
During annual reviews, employees are more likely to bargain for
added benefits when there is no option for a raise. On-site benefits
improve employee retention and engagement through amenities
like on-site cafeterias, fitness centers, and open workspaces.
Engagement is driven through opportunities for employees to feel
as the office is their own. If employees enjoy work, engagement will
improve. If employers provide dark, basic, boring offices,
engagement will be low. Employee engagement tactics can be
attributed to the increasing numbers of Millennials, who look for a
different, progressive thinking culture.
The key to successful HR practices is to ability for your employees to
tell a story. Did your firm save a dog today? Did your firm paint a
mural to help revitalize dilapidated areas? The stories your
employees tell is the sign of a successful (or unsuccessful) Human
Resources initiative. Stories can serve the purpose of recruiters and
brand ambassadors as friends, family, or colleagues will be intrigued
by your company, which results in more applications. Employees
expect to take ownership in their company and want to feel part of
the corporate family.

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