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« Back to the November/December 2005 Explorer newsletter
What’s Hot & What’s Not
HOT
The most recent version of the Human Capital Index (HCI) has been released by Watson-Wyatt. First appearing in 1999, the HCI details the positive link between “superior” human capital (HR) practices and shareholder value and return. For example, the current report shows that “Clear Rewards and Accountability” deliver a 16.5 – 21.5% increase in total returns to shareholders and how excellence in recruiting and retention practices nearly always leads to improved financial performance. Always widely discussed and debated, people professionals should especially check this out to see why the HCI pegs developmental training and 360-degree feedback as practices guilty of “potentially draining shareholder value.” Download the North American, European, and Asian reports here.
HOT or NOT?
The US Department of Labor has released one of its often-missed – but quite enlightening - summaries of the US job market. The Job Openings and Labor Turnover Survey, which details job separations such as layoffs, firings, retirements, and voluntary quitting, found a large increase in job openings in the government sector, but decreased activity in trade, transportation, and utilities. An interesting statistic called “The Rate of Quits”, which indicates how easily employees may change jobs, realized a slight increase, to 2%. However, the report notes that Hurricanes Katrina and Rita may have impacted job change and employee movement at the end of the summer. Nonetheless, both the rise in turnover and job openings in many industry sectors may be further evidence of an improving US economy. Get full details.
VERY HOT: How high can Google fly? And are Yahoo and Tata far behind?
It comes as no surprise that a company trading at nearly $400 per share is doing a lot of hiring. Google, Inc., purveyors of that ridiculously popular search engine, hired just over 800 people in its last quarter. Its total work force numbers around 5,000, but not for long; their website lists over 1,000 job openings. And with revenue nearly doubling on a yearly basis, it’s destined to grow at an even more astronomical rate. A recent piece on ZDNet suggests that its growth may impact the already-thin market for experienced engineers. And with a jump in hiring at Yahoo and IT outsourcing firm Tata Consultancy, it seems that a few recently small companies are having a big impact on the pace of change in the tech sector. Want to jump into the fray? Apply with Google.
NOT HOT
Q: “How much do we spend on temps?”
A: “Heck if I know!”
San Francisco-based Taleo has released some alarming data regarding the lack of knowledge most companies have about the number and cost of their temporary (or, “contingency”) employees. In addition, organizations do seem to have concerns about the potential liability of contingent labor and that both tactical and strategic management of these folks varies widely within most companies. It’s a worthwhile read, especially as it lends insight into how your firm could methodically track costs and resources associated with contingency workers. And if you really want to lower your productivity today, check out Yves Lermusiaux’s excellent blog, chock full of great links and insights.
Compiled by Mark C. Healy