June 26, 2006
Every month, in collaboration with the Institute of
Workplace Studies (IWS), CAHRS identifies the ‘Top
10’ news items from the IWS News Service covering
key workplace issues that would be of interest to
CAHRS sponsors. Now CAHRS and the HR
Division have agreed to distribute this information as
another benefit of HR Division membership.
These news items are carefully selected, covering
areas such as emerging workplace trends,
compensation, executive training and development,
technology enabled HR services, important policy
announcements impacting people practices,
employment related macro economic data and top
line general economic data, significant court
decisions relating to employment law and any other
issue of potential significance to human resource
managers.
The content is sourced from U.S. Government and
international agencies, public and private bodies,
consultancies and knowledge services firms, industry
associations, unions and select academic institutions.
Because the links below are sometimes to
copyrighted materials, you may be asked to sign in to
a proprietary website (for example Business Week
online) after following the link. However, once you
have signed up for these free services, you will be
able to find the complete article. Our goal is
to
provide you with information about up-to-date issues
in HR.
The CAHRS Top Ten

1.
Creating Value for
Employees, [May 2006], by McKinsey
Summary: In today's global marketplace, a
handful of companies that have developed massive
scale and
scope are generating enormous earnings: $10 billion
or more a year. Such extraordinary profits, the
evidence
suggests, reflect the ability of these mega-
institutions to make their talented professionals—
tens of thousands
of them—more productive.
2. Hiring Efforts Remain Extremely
Strong for Job Seekers, [23 May 2006], by SHRM
Summary: May was another strong month
for the U.S. job market, with nearly two-thirds of
employers from
the manufacturing and service sectors planning to
hire in the next 30 days. Despite strong recruitment
efforts,
nearly a third of manufacturers say they cannot find
skilled employees to fill vacant positions.
3. Employee Incentive Systems: Why, and
When, They Are So Hard to Change, [May,
2006], by
Knowledge at Wharton
Summary: Two researchers use Andersen
Consulting, Kodak and other organizations to study
conflict,
especially with regard to incentive systems, that
results when companies undergo major change, such
as
adopting new technologies or shifting into new
markets.
4. CEO Succession 2005:
The Crest of the Wave, [18 May 2006], by
Chuck Lucier, Paul Kocourek, and
Rolf Habbel
Summary: Global CEO departures reached
record levels for the second year in a row, and may
be peaking,
according to the fifth annual survey of CEO turnover
at the world’s 2,500 largest publicly traded
corporations.
The study also found that performance-related
turnover set a new record in North America, and
merger-driven
successions were at their highest level globally of
any year other than 2000.
5. CEO Pay: A Window into Corporate
Governance, [17 May 2006], by Knowledge at
Wharton
Summary: Once again, proxy season has
revealed some eye-popping numbers in executive
compensation
packages, generating heat from shareholders, labor
organizations and some analysts who contend the
links
between CEO pay and performance are frayed.
6. International
Assignments Increasing, Mercer survey finds,
[16 May 2006], by Mercer
Summary: Multinational companies are
significantly increasing the number of international
assignments, but
the effectiveness of their expatriate policies varies,
according to a new survey by Mercer Human Resource
Consulting. Some 44% of multinational companies
report an increase in the number of international
assignments to and from locations other than the
headquarters over the past two years. The survey
provides
the latest practices and policy developments in
employee mobility management among approximately
200
multinational firms worldwide, and across a variety of
industries.
Respondents cite overall professionalism, analytical
skills, business knowledge and written and verbal
communication as
the skills that new employees lack most frequently.
More than 25 percent of the respondents also
indicate that there is a shortage of qualified
candidates in positions that require degrees in
science, technology, engineering and mathematics.
To address the skills shortage, organizations are
offering undergraduate educational assistance (59
percent), graduate
educational assistance (48 percent), job-related
skills training (55 percent) and internships (38
percent).
7. Transforming Pay Plans: 2006,
Compensation and Benefits Report, [17 May
2006], by Hudson
Summary: Most workers are satisfied with
their compensation, but given the chance, many
would change their
mix of cash and benefits. This finding is one of many
complexities uncovered in Hudson's latest survey,
which
reveals a work force with shifting compensation
demands that can be hard for employers to decipher
and
even harder to satisfy.
8. Few Multinationals Have Implemented a
Health and Productivity Strategy Outside United
States,
[30 May 2006], by Watson Wyatt
Summary: Multinational companies have
developed a health and productivity strategy in the
United States,
but they have not been as proactive in other regions
of the world, according to a new survey by Watson
Wyatt. However, as health care costs rise around
the globe, multinationals are increasingly adding these
programs worldwide. The survey of 90 multinational
companies found that 65 percent currently have a
strategy to improve the health and productivity of
their workers in the United States but significantly
fewer
have programs in Canada (22 percent), Asia-Pacific
(21 percent), Europe (16 percent) and Latin America
(15
percent). Although many of these multinationals plan
to develop a health and productivity strategy in these
regions over the next two years, they will still lag
behind their U.S. operations by a wide margin.
9. Company Efforts
Positively Impact U.S. Employees' 401(k) Saving
Habits, [16 May 2006], by Hewitt
Summary: Efforts by companies to help U.S.
employees save for retirement -- including putting
the 401(k)
plan on autopilot, simplifying plan choices and
targeting communication -- have resulted in
improvements in
employees' retirement saving and investing
behaviors, according to a new study by Hewitt
Associates. The
annual study, which examined the saving and
investing habits of more than 2.6 million employees
eligible for
401(k) plans, revealed the positive effect of
automatic enrollment on 401(k) participation rates.
Approximately
36 percent of workers with less than one year of
tenure participated in a 401(k) plan in 2005, an
increase of 6
percentage points from the prior year. Further,
among companies that offered automatic enrollment,
the
overall employee participation rate was 14
percentage points higher than the overall employee
participation
rate across all companies. Hewitt's study also
revealed improvements in overall employee behavior
around
diversification, company stock and the use of
lifestyle funds.
10. Telework Bench Marking Study: Best
Practices for Large Scale Implementation in Public
andPrivate Sector Organizations, [2 June 2006],
by the Telework Coalition.
Summary: This study asked managers of
several mature and well established telework
programs, recognized
as being among the most successful in both the
private and public sectors, what worked, what didn't,
and
what they'd do differently if they could start again
from the ground up.
Learn more...