ORC Sightlines

December 2003

Research Shows Importance of Data to Diversity Initiatives

"Metrics are the key to effective diversity programs" is one of the messages to come out of in-depth research conducted by Columbia Law School. Researchers conducted extensive interviews with members of ORC's Workforce Opportunity Network and found that diversity and EEO managers rely on data to help managers understand what is happening in their organizations and to facilitate integration of diversity concerns with other HR management practices. So diversity and compliance departments devote much of their time to producing data on the representation of women and minorities in various breakdowns of the organization, auditing pay variations, and monitoring hiring, retention, and promotion rates.

Other factors that emerged as important contributors to successful initiatives included leadership at various levels of the organization-not just the top, employee involvement, and accountability. Nevertheless, many companies remain on the fence about explicit rewards and penalties for diversity performance. Most are talking about doing it, and some tie diversity into the performance evaluation system by including it somewhere in their competency models or "giving credit" for pro-diversity activities such as mentoring or serving on a diversity council. Few companies, however, have taken the step of linking a significant portion of variable pay to meeting defined objectives.

The study also confirmed the consensus that the business case for diversity-which might be different for every company-is a prominent catalyst for equity initiatives. But other frequently cited motivators are the need to improve communications within the organization or to respond to apparently isolated issues, for example, an employee who uses a religious greeting or inquiries about sexual orientation issues. Companies are using these openings as levers for further efforts or as opportunities to collaborate with the company's business unit leaders to identify diversity issues and develop inclusion strategies. Diversity work remains opportunistic, and diversity leaders and champions have to be alert for opportunities to demonstrate the applicability of diversity management techniques to business issues.

For more information on the Columbia study or the issues discussed here, contact ORC diversity consultant Liz MacGillivray, liz.macgillivray@orcww.com; 401-847-7877.

SHRM Unveils Global HR Certification Program

For at least twenty years, the idea of establishing a credentialing program for international HR practitioners has been the subject of worldwide discussion. While the whole idea of credentialing for HR is not without critics, who worry about setting unrealistic standards or creating artificial barriers for experienced and qualified professionals, proponents of certification in international HR see it as a means of encouraging practitioners to develop professional skills and knowledge in an area of HR management that becomes more important every day.

To that end, the Society for Human Resources Management (SHRM) has announced that the first Global Professional in Human Resources certification examination will be offered at its International HR Conference in March. Comprehensive self-study educational materials have been developed to support the program and are now available through SHRM's Education Department. By November, 2004 the certification exam will be offered via computer testing in 250 cities around the world.

The global HR examination and educational program is the result of intensive efforts during the last five years involving almost a hundred volunteer experts representing the range of HR disciplines. ORC Senior Vice President Roger Herod has chaired SHRM's global certification committee since 2000, and several ORC consultants helped develop the exam itself. More information and the exam application are available at http://www.hrci.org/gphr.  

Health Care Costs Dominate Labor Negotiations

A review of recent settlements by members of ORC's Labor and Industrial Relations Advisory Group (LIRAG) revealed few surprises, but confirmed the trend we've seen developing for some time (see, for example, Sightlines for March 2003): the cost of medical insurance has surpassed job security as the chief sticking point in labor negotiations. Employers have had little choice but to continue to increase employees' share of premiums and co-payments and further restrict choice of carriers in some cases.

Many have also reduced medical benefits or increased contributions for retirees. While most companies have successfully protected their right to make unilateral decisions regarding retiree medical insurance, some are finding themselves under pressure by unions to negotiate this as well, underscoring the importance of building a fence around retiree issues to keep them off limits. Once language over a retiree benefit has slipped into a contract, that benefit may be fair game for bargaining from here on out.

For more information on health care from a labor relations point of view, or to find out about LIRAG, contact Tom Connors, thomas.connors@orcww.com; 212-719-3400

ORC Opens Doors to New Reading Room

The ORC Reading Room, a new feature on ORCWorldwide.com, makes available articles and memos written by ORC's HR management experts for journals and client groups. From global leadership development to compensation design to expatriate management to diversity, these materials will keep you informed and spark new ideas.

 

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