| HR
Accelerates Immigration Processing with VISANOW
VISANOW, an immigration solution provider, has announced the introduction
of VISANOW 2007, the latest version of its user interface, with
simplified navigation and enhanced functionality for easier immigration
processing. Working closely with immigration legal specialists and
clients from leading corporations, VISANOW developed the new, more
user-friendly system to provide easier access to account information,
more online search capabilities and increased speed and performance.
VISANOW 2007 makes it even easier for HR departments and individual
employees to process and monitor their immigration applications.
Workplace Options Acquires EAP Solutions
Workplace Options, a provider of work-life employee benefits in
America, has announced the acquisition of EAP Solutions, one of
Ireland’s leading providers of employee assistance and work-life
services. This acquisition significantly expands WPO’s European
presence and international provider network. EAP Solutions, based
in Dublin, currently provides services to more than 55,000 employees
throughout the Republic of Ireland. The new entity, Employee Advisory
Resource Ireland, will serve over 100,000 employee lives.
Pivotal Employees’ Impact on Business Results
In today’s competitive global economy, organizations
cannot afford to make poor workforce decisions. According to research
by Hewitt Associates, a global human resources services company,
the attraction and retention of pivotal employees plays a critical
role in increasing shareholder value.
Hewitt analyzed the HR data of more than 1,000 large companies
and 20 million employees – a microcosm of the U.S. labor market
– to determine the financial impact of human capital programs.
Results showed that the flow of pivotal employees – defined
as employees in the top quartile of their peers in pay progression
– into and out of an organization is a strong predictor of
changes in Cash Flow Return on Investment (CFROI1) and shareholder
value.
Hewitt captures this information in the form of “Talent Quotient”
(TQ), a human capital metric that quantifies the financial impact
that pivotal employees make on an organization’s business
results. According to Hewitt’s research, for the average Fortune
500 company, a 10 percent increase in a company’s TQ score
adds approximately $70 million to $160 million to its bottom line
over the next few years.
Hewitt’s data by industry sectors shows a range of TQ performance.
For example, the financial services sector has TQ scores ranging
from 86 to 138, energy ranging from 88 to 124, and IT 96 to 123.
More...
SMB Managers Reveal Startling Work
Hours and Habits
Almost half of U.S. small business managers work during time meant
for family and admit to making business calls and checking e-mail
while driving, according to a national survey exposing the unusual
lengths taken by today’s workers to manage increasingly 24/7
jobs. Conducted on behalf of Staples, the telephone poll explored
the balance between work and personal time for 300 leaders of companies
with fewer than 20 employees, a group representing nearly 90 percent
of all U.S. businesses, according to the National Federation of
Independent Business (NFIB). Overall, respondents reported long
hours, diminished vacation and an ever-blurring line separating
work from time-off.
The survey revealed some startling work habits, such as nearly
one in five managers (18 percent) admit to reading work-related
e-mail and documents while in the bathroom and nearly half (49 percent)
work while driving.
For most of the managers surveyed, the standard 40-hour work week
does not apply. Nearly two-thirds (62 percent) work well beyond
a 40-hour week, and one in five (21 percent) work a double week,
logging an extra 40 or more on-the-job hours. Participants cited
business growth (9 percent) added responsibility (7 percent) and
“trying to keep up” (5 percent) for their heavy workloads.
Some managers have compensated for these increased work demands
by letting work trespass into once-sacred personal time. For instance:
- One in five (21 percent) work while eating dinner at least 4–5
times per week.
- More than a third (37 percent) could not readily remember their
last vacation. Of those who did vacation, nearly half admit to
working during some portion of it.
- Additionally, the pervasiveness of mobile phones and hand-held
e-mail devices has only contributed to these long hours at untraditional
times.
- More than two-thirds (68 percent) work on days off, checking
e-mail, voicemail or making work-related calls.
- Two-thirds (66 percent) work after hours and at night.
- Half (51 percent) work on holidays.
- Almost half (47 percent) work during what is supposed to be
family time.
Generally, surveyed leaders of younger companies and those with
fewer employees expressed the most lopsided work-life balance, and
the vast majority (92 percent) characterized their workload as about
the same or heavier than from a year ago.
More...
Global Outsourcing Drives Business
Growth
The Software & Information Industry Association has announced
the release of a major survey and report on the current state of
global software development.
A sampling of the research results indicates that companies are
increasing their global development efforts: 57% of the participants
have significantly increased offshore work in the past 18 months
and many plan to add still more in the next 18 months. Growth strategy
was cited as an “important” or “critical”
driver for 84% of respondents, while increasing speed to market
and productivity were the next most important drivers. No single
business model was cited as optimum for offshore development, with
roughly half of respondents working with an offshore provider, a
third operating a subsidiary or captive, and a quarter employing
a hybrid model of both approaches.
Respondents claim to be achieving 80-100% of their cost savings
goals. While gains in productivity appear to be less than expected,
73% of respondents reported a positive impact on profits. In addition,
fully two-thirds of companies who work offshore claim the quality
of work is above average when compared to onshore staff, with 25%
rating the quality as “excellent” or “outstanding.”
More...
Are Telecommuters Less Likely to Advance?
More than half (61 percent) of 1,320 global executives surveyed
say they believe that telecommuters are less likely to advance in
their careers in comparison to employees working in traditional
office settings, according to the latest Trends@Work Quiz from Futurestep,
Korn/Ferry International’s outsourced recruitment subsidiary.
Despite this assertion, nearly half (48 percent) of respondents
indicated that they would consider a job which involved telecommuting
on a regular basis and the vast majority (a combined 78 percent)
stated that telecommuters are either equally or more productive
than those who work in offices. When asked which type of flexible
working arrangement they found most attractive, nearly half (46
percent) of respondents most preferred the option of working flexible
hours.
Smart employers know that flexible working conditions can be an
effective means to creating a productive workforce, says Futurestep
execs. Often when employers offer the option of flexible hours and
telecommuting, they help employees maintain balance in other parts
of their lives which, in turn, fosters loyalty, satisfaction and
retention.
The Trends@Work Quiz also examined whether sabbaticals or extended
breaks have any effect on one’s career. More than half (a
combined 64 percent) believe that they are either somewhat or extremely
beneficial.
More...
CIOs Will Spend More on Channel, Less
on Staff in 2007
Spending on internal IT staff remains the largest part of IT budgets,
but CIOs expect to shift more resources from staff to consultants
and integrators in 2007, according to the quarterly CIO User Survey
released by Merrill Lynch.
CIOs expect to spend an average of 11 percent of their IT budget
on external service providers in 2007, up from nine percent in the
same survey one quarter prior, according to the survey. Conversely,
CIOs spent 37 percent of their budget on staff in 2006, down from
42 percent in 2005.
Spending on internal IT staff, however, still remains the largest
part of IT budgets, according to the report. Still, it has come
down from 42 percent in 2005 to 37 percent in 2006.
Seventy-two percent reported allocating more for the channel in
2007, up from 46 percent in the third quarter of 2006 and 58 percent
12 months earlier, as spending on IT services represents an increasing
part of overall IT budgets.
Offshore outsourcing is on the rise, but CIOs' top choices of vendors
for projects included ACN and IBM as well as Indian vendors for
these types of projects. Systems integration remained the top IT
spending priority for CIOs, with consulting holding the second place.
CIOs indicated a substantial increase in the pricing for IT outsourcing
in the report, up to 2.7 percent from 2.0 percent the previous quarter.
A 2 percent increase in the allocation for offshore vendors was
expected to increase to 2.8 percent, should pricing trends remain
positive. In the previous four surveys, the allocation for offshore
outsourcing had been only 1.1 percent.
Despite the fact that projects with an offshore component decreased
from 44 percent to 36 percent between the Q3 and Q4 2006 reports,
the report predicted that offshoring of IT service will continue
to grow rapidly, noting that demand remains strong and expectations
of cost savings are high.
Indian vendors such as Infosys and Satyam continue to stand to
benefit the most from this expansion.
IT spending as a whole is expected to grow 4.2 percent in 2007,
according to the report. IT spending finished 2006 up 3.4 percent,
but slower than the increase of 4.4 percent in 2005. However CIOs
at that time had expected growth of only 3 percent, the study notes,
leaving the 3.4 percent final number more on-target.
More...
Profiles of Small Business to be Radically Different by 2017
The face of small business will dramatically change as seasoned
baby boomers, kids fresh out of high school, mid-career women, "mompreneurs"
and new immigrants come together to create the most diverse pool
of entrepreneurs ever. Those are among the key findings of the Intuit
Future of Small Business Report, a study that looks forward 10 years
and examines the prospects, influences and profiles of small business.
The first installment of the study focuses on new entrepreneurs
who break the mold, the coming proliferation of personal businesses
and the emergence of entrepreneurship education.
The first installment concludes that the newest entrepreneurs will
be far more diverse than their predecessors in age, origin and gender.
By 2017, the white, middle-aged men who traditionally launch small
businesses will be outnumbered by Generation Yers — those
born after 1982. Among this and other age groups will be a large
number of women, immigrants and "un-retiring" baby boomers
opting for entrepreneurship as a second career.
The report identifies three major trends: the changing face of
small business, the rise of personal business and the emergence
of entrepreneurial education. Those trends led to five major findings:
- Entrepreneurs will no longer come predominantly from the middle
of the age spectrum, but instead from the edges. People nearing
retirement and their children just entering the job market will
set the bar as the most entrepreneurial generation ever.
- American entrepreneurship will reflect a huge upswing in the
number of women. The glass ceiling that has limited women’s
growth in traditional corporate career paths will send a rich
talent pool to the small business sector.
- Immigrant entrepreneurs will drive a new wave of globalization.
U.S. immigration policy and the outcome of the current immigration
debates will affect how this segment performs over the next decade.
- Contract workers, accidental and social entrepreneurs will fuel
a proliferation of personal businesses. Economic, social and technological
change — and an increased interest in flexible work schedules
— will produce a more independent workforce seeking a better
work-life balance.
- Entrepreneurship will be a widely adopted curriculum at educational,
trade and vocational institutions. As a result, artists, musicians
and others not traditionally exposed to business education will
learn not just their trade but small-business management skills
as well.
- Many baby boomers nearing retirement age will launch new businesses
in far greater numbers than their counterparts from earlier generations.
Their motivation: diminished job security, disappearing pensions
and health benefits, and the need to match savings with longer
life expectancies.
The line between small and large businesses will blur as more entrepreneurs
form free-agent contracts with large companies as a natural response
to the demise of lifetime employment. By 2017, free agents will
thrive with less job security — they will have clients, not
employers — but, in trade, will exert far more control over
their time and working conditions.
For some professionals, entrepreneurship will complement a corporate
career, but not replace it. The reason: Corporations and government
agencies will see the entrepreneurial spirit as key to innovation
and will train promising candidates accordingly. As a result, professionals
will spend their careers alternating between two related worlds,
sometimes running their own businesses in the free market and at
other times running a virtual business within a larger organization.
Experience in the former will help bolster the latter.
More...
Executives See Dramatic
Rise in Competition for Talent
More than nine out of 10 North American business and HR executives
surveyed in late 2006 say their companies are experiencing increased
competition for talent — leading to higher compensation packages,
slower time to new hires and reduced business flexibility. As a
result, executives say they will increasingly look inward, to their
existing workforces, to find and develop the competencies they need
to address changing requirements in their markets.
These and other findings were part of a study that includes responses
from 726 business executives and HR professionals. The research
was conducted by SuccessFactors, a global provider of performance
and talent management solutions, in cooperation with the Business
Performance Management Forum and the Human Capital Institute.
The study shows that economic expansion and business growth are
major contributors to the current human capital shortage, but so
are more fundamental shifts in the economy, which are creating the
need for new and different competencies at most companies. Eighty-eight
percent of respondents say the critical competencies needed in their
organization are changing, and nearly half say they are changing
to a “high” or “very high” degree.
The survey also underscores the growing need for improved processes
and systems for talent management and development, as well as the
significant positive impacts that the implementation of performance
and talent management solutions can make. Yet, it also demonstrates
that a large percentage of companies don’t have adequate performance
and talent management practices in place. For example, nearly three
quarters of all respondents either strongly or very strongly agreed
that talent management was a strategic priority within their company.
However, only 57 percent said their companies have formal plans
to identify, grow and retain talent.
Among other key study findings:
- 98 percent of respondents say competition for talent is increasing
in their industry, and 65 percent say it’s increasing to
a “high” or “very high” degree.
- Nearly 95 percent say the cost of acquiring and keeping talent
rose in 2006, and two-thirds say costs increased more than slightly.
- The most profound impacts of growing competition are increases
in the time it takes to find talent, and a growing requirement
to develop internal talent.
- Talent development was indicated as the number one human capital
management challenge of 2007, according to respondents, followed
by retention and turnover, and talent acquisition.
- 55 percent note higher salaries were required in their organization
in 2006. And 68 percent identified the need to implement internal
talent development in their companies.
- Company growth is expected to be the leading driver for new
talent acquisition in 2007, followed by evolving corporate cultures
and changing market demands.
- Only about one quarter of respondents say their companies have
formal talent scorecards, and only 29 percent say they know how
to measure talent performance and productivity in terms of business
value creation.
More...
Maintaining Common Corporate Culture
a Chief Concern for Global Execs
Executives at the world’s largest companies say their chief
concern as their businesses become more global is the ability to
maintain a common corporate culture around the world, outweighing
even geopolitical issues, according to results of a survey released
by Accenture.
The annual survey of more than 900 C-suite executives in the United
States, Italy, France, the United Kingdom, Germany, Spain, Canada,
Japan and China is designed to identify the business priorities
and major concerns of executives at some of the largest companies
around the world.
When asked to identify the greatest challenges to building global
enterprises, the greatest number of respondents — 49 percent
— selected the “ability to maintain a common corporate
culture,” followed by “understand local customs and
ways of doing business,” selected by 44 percent of respondents.
Forty-one percent of respondents selected the ability to “service
remote clients/customers effectively” as a major challenge,
and more than one-third of respondents (36 percent) selected “the
impact of the global economy.” Only 25 percent of respondents
selected “the impact of different geopolitical issues”
as a major challenge.
In addition, nearly one out of four respondents (22 percent) said
that their organizations are poorly equipped to succeed as global
enterprises, despite the fact that the majority of respondents said
that their employees, suppliers and customers are more global now
than they were five years ago. This issue is particularly noteworthy
in two countries, as one-third of respondents in Japan and almost
half (48 percent) of respondents in China said they believe that
their organizations might face difficulties adapting to the global
market.
Only 55 percent of the executives surveyed said they believe their
organizations are able to develop leaders with the aptitude and
skills to adapt to rapid change and new learning. There are significant
geographic differences: two-thirds (67 percent) of respondents in
Germany said they believe that their organizations are developing
global leaders, compared with less than half (45 percent) of respondents
in Japan.
More...

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