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8/22/04
TRAINING Executive coaching can impact a company's bottom line. A new study by Right Management Consultants shows that the return on investment from executive coaching is almost six times the initial cost of purchasing coaching services. The report is based on a survey of 100 senior executives who have been participants in employer-sponsored coaching programs. When asked to assign a monetary value to the coaching they received, 70 percent of respondents estimated that the return on investment on their coaching was $100,000 or higher. Executive coaching has become an important tool in helping newly hired managers assimilate, said Joseph Daniel McCool, editor of Executive Recruiter News, a division of Kennedy Information in Peterborough, N.H. Called onboarding, the practice can save employers money by increasing retention and helping new business leaders transition to new jobs more smoothly. Survey participants were from Fortune 1000 companies and held the position of vice president or higher, according to Right Management. About 30 percent earned more than $200,000 per year. The survey also asked the executives about the impact of coaching on themselves and the workplace. Fifty-three percent pointed to improved productivity, 48 percent said employees now produce better quality work, and 48 percent said the organization was stronger and more cohesive. The executives also described intangible benefits. For example, 77 percent said relationships with subordinates improved, 71 percent had better relationships with supervisors, and 67 percent pointed to more teamwork among employees. Onboarding or assimilation coaching works like this: US employers hire coaches to work with new executives during the first 90 to 100 days of the executives' tenure. That period is believed to be the most critical for a new recruit. The coach helps the executive navigate the corporate culture. Onboarding is not just for new hires. Specialists say individuals who are promoted within a firm and moved to a new division may also require help.
--DIANE E. LEWIS
EMPLOYMENT Government has joined private employers in the outsourcing of key human resource functions to US contractors. The Conference Board, a New York research group, said about 10 to 15 states, as well as the US Office of Personnel Management, are looking at outsourcing some key human resource functions such as payroll and benefits processing, performance evaluations, benchmarking, recruiting, and information technology. The board identified a handful of government agencies as outsourcing ''trailblazers.'' They include the US Transportation Security Administration, the State of Florida, Detroit Public Schools, and the Texas Health and Human Services Commission. The practice doesn't sit well with unions, however. They are against the outsourcing of state, local, and federal jobs because the private companies that provide such services tend to be nonunion. Labor unions maintain the workers employed by those services are less likely to work full time, do not have job security, and are less likely to receive top wages and benefits. American unions are also worried that the outsourcing trend could further reduce union membership, say labor specialists. Today, for example, 12.9 percent of the nation's workforce belongs to a union, down from 34.7 percent in 1954, according to the US Census Bureau. The board relied for its data on a report by Accenture, the consulting firm, that revealed that state governments are either considering outsourcing or have already adopted the practice because they want to reduce costs. That doesn't mean there aren't negative consequences to outsourcing these jobs, however. According to the Conference Board, the arrangements can lead to layoffs, skill transfers, unemployment insurance fees, and disruption of local services. The board, which issued the findings last week, said government agencies in Australia, England, and other parts of Europe have been outsourcing all or parts of their human resources services for years. Now, the trend is catching on in the United States. Three forces are fueling the practice. ''First, IT systems are reaching the end of their life span,'' said the Conference Board. ''Legacy computer systems, which are about 25 years old, need to be replaced. With growing deficits and a reluctance to increase taxes, many states are looking at capital outlays of $80 million to $100 million to replace these systems.'' According to the board, the cost of upgrading information technology is so expensive that state governments are searching for ways to make the needed changes without incurring more debt than they can handle. The economic downturn is also prompting state and US agencies to consider human resource outsourcing. ''The downturn that struck the nation... created severe budget shortfalls throughout the government sector, particularly in state governments,'' the board said. Lastly, said the board, government agencies want to run their organizations more efficiently. And they are eager to adopt the same kind of management principles and performance measurements used by the private sector. --DIANE E. LEWIS
OVERTIME REVISIONS Wondering whether you will be affected by the overtime revisions that will go into effect Aug. 23? An affiliate of the AFL-CIO unveiled a website last week that will permit workers from across the country to get answers to their questions about overtime pay. The website is www.workingamerica.org. and is sponsored by Working America, a national organization for working people. --DIANE E. LEWIS
JOB PROSPECTS From the United States to Europe, college graduates are more confident about their job prospects these days. A report released last week by Accenture found that many feel their dream jobs are within sight. The study is based on a survey of 1,500 recent or soon-to-be college graduates in the United States, England, France, Germany, and Spain. Of those who are not yet working, 60 percent said they expect to have a full-time position in their field within the next six months. Just 16 percent said the job search could take more than a year. The report said college graduates in the United States and England appear more optimistic: Sixty percent of the college graduates in England and 56 percent in the United States believe they will land the job they want in three months. --DIANE E. LEWIS
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