Do Unions Help Organizational Productivity?

On Wednesday, we convened for the first Manhattan College session of the month and yet another engaging dialogue on current issues in HR. In this week’s meeting, we took on the topic of unions and their impact on organizational productivity.

unions, productivity, organizational productivityWe can all agree that unions serve a specific and crucial role in our civilization and that when workers first began full-scale organization in the early 20th century, the institutions they created provided essential worker protections that made many aspects of modern society possible. There’s no doubt that unions, as a concept, are founded on important principles.

But in recent years, arguments have been raised suggesting that unions have outlived their original purpose, and that modern unions may sometimes serve the interests of workers at the expense of the organization as a whole. According to these charges, unions may be responsible for creating obstacles to productivity which can slow growth, stall free enterprise, and ultimately hurt the same members of society they were created to protect.

A union provides a necessary support structure in the event of employee abuse or wrongful termination. And union contracts can protect salary structures and working conditions from the whims of the free market. But what happens when contract negotiations reach a total impasse over minor conflicts? Or when unions use their power to protect incompetent or counterproductive employees? And are there some inherent conflicts built into public worker unions, in which union-negotiated salaries are paid with public funds?

In this week’s class session, we laid these issues on the table and examined the impact of unions on company productivity and the role of HR professionals in the sometimes-fraught relationship between employees and management. We didn’t agree on every detail, but we all recognized an important truth: HR managers need to find ways to work with both unions and company leadership in order to make sure workers receive all legal protections and companies get the most out of their valuable human capital.

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Attracting and Retaining the Millennial Generation: Do Young Workers Require Special Consideration?

Recruitment and retention are vital components of any staffing strategy, even during a slow economy. Regardless of the state of the job market, employers need to aggressively recruit talented workers. And once great employees are on board, they’ll be more productive if they’re managed carefully, respected, and given the resources they need for success.

millennial generation, workers, young workers, enthusiast young workersSo if you’re staffing an office with a high percentage of millennial workers between the ages of 18 and 25, do you need to alter your HR approach and bend over backwards to accommodate this special demographic? For some management experts the answer is clear: absolutely.

But our Manhattan College class discussed the issue on Wednesday, and not all of us were in complete agreement. Millennials are valuable employees, no doubt. The energy, enthusiasm, and high risk tolerance they bring to the office can lend powerful support to company goals. But when it comes to managing them, not everyone believes that they benefit from special treatment. The millennials in your office may not have earned the white glove approach, and despite their apparent fragility, they may not want it. In the end, making special accommodations for them based on cultural myths may do your company more harm then good. Here are a few arguments from both sides of the debate:

The Pipeline: Take Care of Your Millennials and They’ll Take Care of You

Nurturing millennials and picking them up when they fall may seem like a logical way to deal with young, enthusiastic and emotionally sensitive employees. That’s because it is. Young workers are easily crushed and disillusioned, but if you encourage them and stand behind them win or lose, they’ll keep caring about their jobs long after the point when many employees become hardened, risk-averse and self-serving. This doesn’t mean letting them play on Facebook all day. But it does mean giving them a break when they fail, pairing them with carefully chosen mentors, and providing training in their own language. Nurtured young workers become loyal, experienced older workers, and you want your best employees to stay on your team.

Teach Millennials To Swim: Push Them into the Deep End

Offering training sessions in text-speak? Allowing social media use during working hours? Picking up the hand-holding process where helicopter parents left off? No, no and no. Younger workers become valuable, experienced older workers only when they’re pushed beyond their comfort zones. If you treat millennials like adults, they’ll learn to act like adults, and they’ll gain priceless self-confidence as they do so. Your company will reap the benefits, and so will they.

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High Executive Compensation: a Wise Move for Employers?

We’ve recently seen a high degree of media and cultural attention surrounding the issue of extravagant executive paychecks. The collapse of Wall Street, taxpayer bailouts, and a declining economy that threatens the security of the middle class have all led to close scrutiny of this practice. And because the issue strikes a personal chord for so many of us, the resulting criticism has been laid on with a broad brush. “High executive compensation” has come to suggest a spectacle of greed and undeserved privilege, and we can’t seem to separate the motivation behind the decision from front page images of pampered maladroits who run their companies into the ground and then retire to mansions in the south of France.

executive, compensation, worker compensationBut there is certain logic to this move. Otherwise it wouldn’t happen. In an recent session of my Manhattan College course, we discussed some of intricacies of the labor market—both real and imagined—that have led us where we are today in terms of executive compensation.

Here are some of the controversial statements we explored:

Worker compensation is measured not by the suffering of the worker, but by the returns he or she generates for the company. In other words, workers are not paid because they work hard. They are paid because their work generates money for others. A stay-at-home parent, for example, works very hard, but his work does not generate money for anyone else. A basketball player may not work as hard, but his labor is part of a long chain. Every ball he throws sustains a billion dollar franchise that enriches thousands of people.

True or false: Executives are genuinely talented, and in order to retain talent and keep it out of the hands of competing firms, companies need to invest. Does this statement have merit? Or can speculation unnaturally inflate the value of a person just as it sometimes can with a house, a commodity, or a work of art? Are overcompensated executives actually paid for the returns they generate, or are they paid because their value is falsely expected to continue rising?

Does extravagant executive pay betray the trust of shareholders? Does it cross not only ethical boundaries, but also the boundaries of good business sense and fiduciary responsibility? Or does it make sense to invest in a product that’s rising in value, regardless of the substance behind that speculation?

Join my class next time and find out how where the discussion takes us. In the meantime, feel free to comment below and share your thoughts on the subject!

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Securing Talent in the Current Job Market

As recruiters and employment firms have long recognized, jobs that require specific skill sets offer greater staffing challenges than jobs that don’t. Skilled labor is simply harder to come by, even when an economic downturn begins to favor employers in the ever-shifting balance between companies and job seekers.

securing talent in the current job marketBut some employers have trouble accepting this reality. And when employers become picky, or simply refuse to acknowledge an essential scarcity of talent, they sometimes make unrealistic decisions that can have a negative impact on their firms. These decisions can include everything from hiring temporary help while waiting for the dream candidate to appear, to keeping positions open indefinitely (in a misguided refusal to “settle”).

I see these behaviors all the time. And unfortunately, the outcomes are rarely ideal.

Employers who are struggling to acquire skilled labor should consider the following before making any more self-defeating errors:

  1. Stop matching the person to the job. Instead, start matching the job to the person. If talent comes your way, even talent that’s an almost-perfect match for your needs, reach out and act. Skills are often flexible within a certain range, and jobs can often be adjusted to fit the talent at hand. The most poorly done job is the one that isn’t being done at all.
  2. When you hire temporary help, remember the definition of “temporary”. Either train your temps with the expectation of bringing them on full time, or just find and hire your full time employee. Exhaustive interviews and excessive pickiness shouldn’t play a role in your relationship with a short term staff member.
  3. Stop being a romantic, and start being a manager. As long as positions remain unstaffed, work remains undone. Some employers fear that if they make a commitment to a less-than-perfect candidate, the perfect candidate might ride in like Lancelot five minutes later. But talent is money. And when skilled candidates are turned away, they’re picked up by the competition and positions stand empty, benefiting no one. It’s romantic to wait for perfection, but when you’re staffing skilled positions, realism is a better bet.
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Does Increased Dependence on Laptops, Cell Phones and PDAs Hurt Employee Productivity?

On Wednesday, March 21st, my Manhattan College students tackled the controversial HR topic on our agenda: the intersection between technology and productivity.

employee productivity, dependence on laptops, mobile phones, PDAsWith the rise of tablets and PDAs and the universal presence of mobile devices in meeting rooms and offices, it’s natural for managers to wonder where this trend is taking us. Most of these gadgets rode in on the promise of increased convenience and personal productivity, which sounds great for users and consumers. But what about those who hire these users and consumers, the ones who pay a yearly or hourly rate for labor and efforts that aren’t always supported by the latest mobile widget? Could these devices actually be reducing employee productivity and keeping employers from getting their money’s worth?

Specifically: Should managers question the value of employee hyper-connectivity? Or should they encourage any and all mobile technology in the workplace, in keeping with what seems to be the style of our age? The debate will likely establish itself onto two camps, the believers and the skeptics.

The Believers

What’s good for the employee is good for the business, and if the employee can reduce the time spent managing his personal life, he’ll naturally devote that extra time to work. If he can find a restaurant, check in with a childcare provider, get directions to a meeting location, and touch base with a client (friend, accountant, personal trainer, etc.) on the go, then he can gain control over his sprawling responsibilities and focus his full attention on the job. Even better, he’s always reachable. With the latest mobile device in hand, he can be contacted at home, on weekends, and even on vacation. This can work to an employer’s advantage in countless ways.

The Skeptics

Sure it may be possible to contact an employee at home on a weekend, but does this foster a healthy working relationship? And sure the employee can use her mobile device to take notes during the meeting…but is that what she’s really doing? An employee’s ability to stream a movie while waiting in line at the deli doesn’t actually help her employer do anything, and there’s no guarantee she’ll turn the movie (or YouTube video or media feed) off during business hours. Without the device, her hands are free, her eyes are on the task at hand, and her mind is focused on one (work-related) project at a time.

Image By: umpcportal.com

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