• Toby’s Support Group – Head on over to The Office and share some of your HR nightmares with Toby.  If they’re good, he may break confidentiality and post them on the NBC website.
• Out of Office Advice – Resident punk Laurie Ruettimann tells her readers that out of office messages are for one thing only (namely to convey who can help in your absence).  Enjoy the rebel yell.
• “Regulators!” – Research warns that many “highly regulated industries report no code of conduct”.  I can think of one governor and one former Nasdaq chairman that might agree.
• Blue Blood, Red Face – The venerable Harvard allows the “Top 10 Ways Obama Can Change American Culture” to get online. The most offensive?  It’s difficult to choose, but maybe, “#8, Kansas will go cosmopolitan and develop children like Obama’s mother, with curiosity about other countries.”
• Sick of Sick Time – HR Wench takes the temperature on PTO in her post “Thank you for not being sick.”  Jenn responds to a reader’s email with her typical no-BS style.
• Still Can’t Get No Respect – With apologies to Rodney Dangerfield, a recent study shows that HR executives still don’t get C-suite respect.  What?  You’re shocked?  C’mon. Really?

Revel in these goodies while I continue to fight the head cold from hell.  Be sure to post your own stocking stuffers for others to enjoy and let’s keep the (congested) conversation going.

Some of the challenges EquaTerra cites are common to most HR departments, both public and private, including:

• Inadequate resources and lack of executive management attention and support that hamper process improvement efforts; 
• An inability to adequately focus on more strategic activities because of competing demands and insufficient resources;
• Ongoing attrition of skilled/affordable employees needed to address these challenges and an overall aging workforce. (pg. 4)

But others are truly public sector centric, such as:

• Competition from the private sector for employees; 
• Diminishing appeal of the public sector “brand” as a means to attract and retain skilled employees;
• More responsibilities than their counterparts of yesteryear as a result of mandates from the Federal Government and public calls for additional services, including homeland security.  (pg. 4)

If you’re still reading and haven’t fully given up hope just yet, you’re probably interested in hearing what the answer is – the big punch-line, the silver bullet shot forth from the blogosphere that offers that dreamy “ah-ha!” moment of infinite clarity and obvious action.  This blog may not have the ultimate answer, but here is some food for thought.  Perhaps the answer lies in the persistence of public sector HR to not take no for an answer.

We asked Glenn Davidson, Managing Director of EquaTerra Public Sector, to comment on how public entities can stretch tight dollars for key initiatives and transformation:

“Be creative; work smarter.  For instance, a marketing/branding strategy for recruitment, retention and driving behavior doesn’t have to be costly.  Look for alternative ways to get access to technology and services, thereby freeing up resources to do other work.”

Neil Reichenberg, Executive Director of IPMA-HR concluded that:

“This study demonstrates the challenges that public sector HR faces in becoming more strategic, especially in a time of diminishing resources. While the study results indicate that progress is being made, the journey is far from over. The HR department needs to develop innovative strategies and tools that will enable them to become leaders in total talent management within their organizations.” (pg. 19)

The underlying implication is that this is not happening.  But in fact, it is…. slowly.  Those who have a vested and external interest in public sector HR are going to continue to saber rattle and cry from the highest rooftops.  Why?  Because there are billions of dollars in services, licensing, consulting, competitive sourcing and the like to be gained if the internal HR functions could simply “get out of their own way”.  

The problem is that this type of change cannot truly exist without those who feel the pain each and every day electing to stop, take stock of their situation and say enough!  This is hard, and scary, and risky, and sometimes career limiting.  But if you don’t try, you frankly have nothing to complain about.  So take action now and let’s keep the conversation going. 

Convergence Begins

It is only in the past eighteen months that we have seen the industry take note of buyers concerns surrounding language and taxonomy.  In 2007, two separate initiatives led by competing advisory firms (immediately following their failed merger) were announced:

• OpenDoor HRO: Launched in April of 2007 by the triad of EquaTerra, SAP and Arinso (now NorthgateArinso), OpenDoor was intended to offer best practices and supporting documentation to speed the sourcing process and ensure adoption of common standards.  Unfortunately, the closed-door origination was viewed to have disintermediated several dozen organizations that would have preferred to help shape the standards by which they would be measured.
• TPI HRO Standards Initiatives: Announced in May of 2007, TPI presented a new initiative based upon collaboration with ACS, Convergys, ExcellerateHRO, Fidelity and Hewitt.  Like OpenDoor, the intent was the derivation of a common taxonomy, including pricing norms and service levels.  TPI was recognized for being more industry inclusive, yet did not embrace the transparent presentation of OpenDoor.

The most promising initiative yet is the work of the Industry Standards and Practices Committee of the HR Outsourcing Association (HROA).  In April of 2008, the committee announced the publication of the first approved practices, acknowledged as the largely preexisting work of the TPI HRO Standards Initiatives.  In a mature nod to the best interests of the industry, OpenDoor HRO has joined with the committee to remove any angst or confusion surrounding competitive standards.  Although this signifies positive momentum, one should question whether interests are proportionately represented, for of the thirty one committee members, only six are buyers of HRO services.

Outcomes and Conclusions

Renowned critic and playwright Eric Bentley said it well:

“Ours is the age of substitutes: Instead of language we have jargon; instead of principles, slogans; and instead of genuine ideas, bright suggestions.”

Without overreaching, one such bright suggestion is for HR executives to get involved in this quest for standardization.  This language barrier will not come down in a means favorable to all parties if those who stand to lose the most participate the least.  This initial taxonomy represents only the United States and the English language, so rest assured that much debate remains over how and if each suggested metric could be applied to your countries of interest.

As an industry, we have yet to quantify the efficacy of these recent initiatives.  Although it is tempting to sit back and wait for others to clear a global path forward, we must work together to ensure that the language of the future of HRO is one we can all speak and understand.  Apply your skill, experience and immersion, for much remains to be done and it is this analyst’s opinion that the most difficult work is yet ahead.

Let’s keep the conversation going.