Five Year HR Plan
2006-2011
Planning Committee:

Five Year Plan

Introduction SMC Company is becoming a leader in manufacturing ergonomic office equipment. The company is located in a small mid-western town of 30,000 people with a local labor market population of approximately 40% minority. SMC has been successful in diversifying its labor force; two-years ago the racial demographic makeup of the company was 90% white, now SMC has a bilingual workforce. SMC is faced with the challenge of remaining competitive in the local labor market where unemployment rate is lower than 2.2%. Over the past two years SMC have experiences many changes such as a shrinking local labor market, rising labor cost, bilingual workforce, accident rate increase of 50%, and SMC’s CEO is terminally ill. Furthermore, demand for SMC’s product continued to increase and the company has experienced unsuccessful labor organizing activities. The plan will address all aspects of what SMC needs to do in the next five years, with the emphasis on five major areas: staffing, employee development and training, compensation and benefits, employee relations, and safety and health. Ongoing issues of technological advances and diversity and demographics are also addressed.
Staffing
In an ongoing effort to address many of the challenges associated with staffing, the leaders at SMC identified a plan to utilize the “Strategic HRM” competency approach. Utilizing this approach allows the organization to revisit opportunities for improvements. In conjunction with staffing, the needs to address the concerns of the employees were also prevalent in the company’s decisions. Not only was it important to understand the climate of the organization but to allow them to assist in the recruiting efforts for the company. Our long-term goal will include recruiting efforts to replace the CEO in his position due to illness. We will allow him to remain in the capacity of a consultant if he chooses. In addition, due to the labor market shrinkage, and the need to incorporate diversity in the workplace by expanding our demographic search, we will accept bids from temporary agencies to assist with recruiting opportunities outside of the mid-western town of 30,000 people. By accepting a partner in our recruiting efforts, we will avoid costly and disruptive surprises that could prevent us from obtaining our long-term goal of remaining competitive and providing goods and services to our customers. This inclusive environment will promote employee productivity and organizational success. C. Davis Fogg once stated, “Strategic planning is a roadmap for impelling continuous change and enduring a future for an organization (Fogg, 1998). With that stated, if we continue to provide and encourage developmental opportunities for all of our employees, along with ensuring employee readiness for those that are bilingual. Hiring more translators to the workforce will assist us in properly managing, training, and providing a more inclusive workforce to those that does not speak English, will permit us to be more secure in our future growth in this industry. In the next five years our plans include identifying, developing, and mentoring future leaders to build the organization. The leadership team will promote visibility outside of the company through lectures at universities of higher learning, campus recruiting, and business publications including: newspapers, magazines, and internet.
Employee Development & Training The training and development department at SMC has drafted a 5-year plan for training all employees. Due to the recent overhaul of the company it is mandatory that all employees are up to date with their training. This will entail getting employees educated on multiculturalism, technological advances, as well as supply and demand of their product (ergonomic office equipment). The demand for SMC’s ergonomic office equipment has declined over the years due to stagnant growth of the company, and no new employees bringing forth fresh and innovative ideas. The politics of the company has been the sole reason why there hasn’t been a large demand for their product. However, with the recent renovation of management, the plan on how to get SMC’s product to increase will occur in the first year, and is as follows: • Gain recent studies about the benefit of ergonomic workstations and the dangers to workers' health arising by not following certain principles. This research on computer ergonomics is important for the working individual as well as for the employer who is interested in limiting absenteeism and in increasing worker productivity. • Complete surveys to find out what office equipment is in demand. • Contact past businesses to ensure our office equipment is working for them, and to see if they have any new needs of improvement. • Have quality and control visit manufactures to ensure all products are being manufactured according to our standards. SMC can once again be at the forefront of proven and effective ergonomic designs. SMC must invest in leaders who are able to work with all people with the proven ability to obtain and secure accounts across the United States and abroad. SMC will become global in the next five years.
Multiculturalism
Also, in the first year management will concentrate on getting all employees trained on EEOC, and sensitivity. Due to the increase of immigrants entering into the country as well as the workforce; it is crucial to ensure SMC is ready to open their minds to the ideas, and thoughts of these new Americans. In the second year after EEOC and sensitivity training has been established SMC will focus on recruiting of top talent for diverse management and employees. The third year will find SMC focused on contacting diverse businesses, and pitching SMC’s product to them. It is important to reach out to these businesses, and secure a sale. The last two years of the 5-year plan will focus its attention on successfully keeping positive ties with the new employees, and clients.
Technology
Although, SMC has not utilized the newest of technology in the past; the company can no longer ignore its importance in today’s workplace. The company may not have seen the importance in keeping up with technology, but technology is steadily advancing. SMC’s leaders saw technology as expensive, and that they were getting along fine without it. However, technology is an investment. SMC may have been getting along well without it, but it is barely getting along, and no longer a leader in the world of office ergonomics. It is important for SMC to understand that technology is not an obstacle, but a path to higher productivity, lower labor costs and eventually - more profits. The 5-year plan for this area is: • Update all technology within the company • Get employees trained on new computers. The productivity that each employee enjoys by utilizing computers on their job should make their hours more productive and more profitable for the employer. This in turn lowers labor costs and should lead to higher profits. • Get software development consultants to create software for production of SMC’s products. • SMC will go online, and open its store online to join the internet world. This will open new positions, as well as open the door for new customers via the World Wide Web, meaning more profits. Every organization whether operating for profit or for some other ends has a mission, a clearly defined purpose for its existence. An organization must have some strategic plan and an appropriate (complimenting) structure in order to achieve its long term goals and objectives. Strategic planning involves identifying and evaluating the organization’s goals and determining what strategies and resources are needed to accomplish these goals. SMC depends on having the people with the right skills, attitudes and capabilities to effectively reach its goals. The HR strategy is concerned with designing and implementing programs, processes and initiatives to attract develop and retain its people (human resources). Once a potential employee has been recruited, it is not enough to merely introduce him/her to the organization (orientation) and allow him/ her to perform her job in a static manner i.e. not creating an environment were the employee may further grow and add to his/her knowledge and skills thus being able to add value to the organization. Training is giving employees the knowledge, skills and attitudes needed to perform their job. Development is the continuous process of acquiring the knowledge, skills and attitudes that will be needed to cope with changes in job demand or to tackle a job with greater authority and responsibility. It is the process or result of change and deals with things that are already in place. Over the past 2 years, SMC has experienced changes in the demand for its product which has increased, its workforce is now bilingual, its accident rate has increased by 50%, and it has experienced unsuccessful periodic labor organizing activities. SMC has developed the following plan that will be a key component in its ability to remain competitive over the next five years. SMC must broaden its vision to include people development as part of its strategic planning. Although training covers a broad range of subjects under the three main categories (skills, attitude, knowledge), using the term "training" without linking it to "development" narrows the concept of the training function and leads to failure.
SMC has realized it is dealing with human thoughts, feelings and reactions, which must be given equal, if not more attention than to the skill itself, creating a double-focus: people development and skills training. These two simultaneous objectives will give them the right balance and guide our actions to reach its goal. To clarify its development objectives and identify the criteria for success, SMC must ask a few questions: o Does it expect an automatic, faultless job performance? o Does attitude count? o Do loyalty and dedication count? o Do general knowledge and know-how count? o Do people-skills count? o Does initiative count? o Does a learning attitude count? o Do they want employees to feel proud of their role and contribution? How can SMC expect such qualities and behavior if it consider and treat its personnel as "skills performers"? However, they could achieve the desired results if they address the personal development needs of the employees involved. In order to accomplish all of this, SMC has to have a strategic development plan. The framework for SMC’s strategic development plan contains four major stages. o Strategize: HR will first work with management to determine how development will link strategically to the strategic business plan, with an eye toward employee and organizational performance improvement. o Plan: SMC realizes planning must occur in order to implement a development plan that will provide positive results for the organizations and its employees. As part of planning, the objectives and expectations of development will be identified and specific, measurable learning objectives created in order to track the effectiveness. o Organize: Then, the SMC will organize and decide how development will occur, obtaining the resources needed, and developing the training interventions. All these activities culminate in the actual training o Justify: Finally, SMC will measure and evaluate the extent to which the development has met the objectives set. One key element of SMC’s development plan is diversity. The changing US demographics, increasing globalization of business and pursuit of effective competition make it imperative for companies, like SMC to include diversity in its development plan. The ability of SMC to manage a diverse workforce will be a major determinant of their continued survival and success in becoming world class corporations. SMC realizes the benefits to strategic development are numerous. It will enable HR professionals to get intimately involved with the business, partner with operating managers to help solve their problems, and make significant contributions to organizational results.
Compensation & Benefits What the HR department at SMC Company must do in this five year plan to help improve local labor cost from rising is first hire more workers so that the existing employees do not have to work more hours, develop a progressive compensation and benefits package that will minimize the high turnover rates that we have been experiencing. The way that SMC Company can improve the compensation and benefits, is by providing a comprehensive healthcare package, 401-K plan, tuition reimbursement, employee stock purchase plan, paid time-off, bank membership, short and long term disability insurance, and transportation assistance
Healthcare Package

All regular employees working at least 70 percent time are eligible for healthcare package on the first day on the first two full months of employment.
SMC could provide a major medical 80/20 plan with a $1,000.00 deductible per family.

|Employee Cost |Annual |Monthly |Per Pay Period |
| Single |$212.16 |$17.68 |$8.16 |
|Single + 1 |$1,560.00 |$130.00 |$60.00 |
|Single + 2 |$1,984.00 |$165.36 |$76.32 |

(Benefit, 2005)

Dental benefits will cover two checkups per physical year including full dental hygiene and cleaning with no deductible with a cost of $8.75 single and $15.00 family a month. Vision plan with basic eye exams provided once every 24 months with a $10 co-payment.
401-K Plan SMC is willing to match .75 cent for every dollar invested up to the first 5 percent of an employee’s investment. Our competitors are only matching .50 cent for every dollar up to 4 percent. Tuition Reimbursement The tuition reimbursement plan will reimburse the employee up to $3500 towards a two-year degree and $5000 towards a four-year degree; including a contractual agreement that they will continue to work for SMC following graduation for two years.
Employee Stock Purchase Plan
SMC plan will allow employees who have been with the company two-years or more to purchase a maximum of 1000 shares in SMC common stock through payroll deductions or lump sum payments (Employee Stock, 2006).
Paid Time-Off SMC will spend approximately 10% of payroll on paid time off plans.
Paid days off provided to all employees in the company (the company closes). The seven holidays that SMC will observed are New Years day, Memorial day, Independence day, Labor day, Thanksgiving day, the day after Thanksgiving, and Christmas Day. SMC vacation days will vary with years of service. Employees will be granted 10 days of vacation per year upon hire, 15 days after five years of service, and 20 days after 15 years of service.
First Bank Membership All regular employees would be eligible to open bank accounts through First Bank. A regular Checking Account includes unlimited check writing without per-check fees and no monthly maintenance fee. Employees who open checking accounts with direct deposit with First Bank, will receive reduced costs on account services charges, interest bonuses on qualifying Certificates of Deposits and IRAs, no first year credit card fee, and discounts on installments loans (AED, 2006).
Short and Long-Term Disability Insurance
Offered on a 12 month retention basis and long term disability will be offered after 18 months of continuous employment (eSupplement, 2006). These insurance benefits will be offered at discounted group rates, and give eligible employees the option to elect coverage. A typical policy replaces at least half of your salary up to a specific maximum benefit, such as $5,000 per month (Long-term, 2006). Long-term benefits begin when short-term disability benefits stop.
Public Transportation Program SMC offers public transportation assistance to employees with an annual salary of $25,000 or less. Under this program, employees who use public transportation or provide 2 or more fellow employees a ride to work will receive up to $35.00 per month (AED, 2006)
As the company continue to grow in this five year plan, SMC Company must consider given bonuses to their employees for meeting their numbers each quarter to show the employees how much they are appreciated. Another perk that would help SMC Company as they grow is holiday gifts for Thanksgiving, and Christmas. For thanksgiving SMC will provide each employee turkeys and for Christmas provide each employee hams . In doing this SMC Company would create a family like environment and show the employees also that their families are very important
Employee Relations
SMC is a non-union company. In the past 2 years SMC has experienced unsuccessful periodic labor organizing activities. One of the reasons that it has been unsuccessful is because the law only allows a union where a majority of workers in a particular workplace vote to form one. In order for SMC to remain union-free SMC must prevent the majority of its workers from thinking they need a union. There are many reasons employees think they need to form a union. Typical issues the union involves itself with are: Wages the average earnings are 8% higher in trade union workplaces. Bargaining for better holidays average trade union members get 29 days annual leave against 23 days for non-union workers. Gaining compensation for those who are injured or become ill. Developing the job of Health and Safety committees (Union in the
Workplace, 2006). HR has developed a five-year plan to maintain SMC union-free environment. In keeping employees happy HR ask the company’s leadership to implement the following motivational factors: ➢ Appreciation of accomplishments ➢ Ability to grow in the job ➢ Recognition ➢ Pleasant working conditions ➢ Each person treated as a human individual ➢ Good wages
Many of these motivational factors can be accomplish with training, some of them can take place right away, and some will have to be done over the next five years. Other things that will be included in the five-year plan are a better partnership between labor and management, open and candid sharing of information, and shared responsibility and accountability for results (Noe, R., Hollenbeck, J., Gerhert B., & Wright, P, 2003).
Safety & Health When looking at a 50% increased accident rate at SMC, we must look at past performance and history to develop a five year plan for safety and health. When looking at past history, we can see that “through the 1960s, workplace safety was primarily an issue between workers and employers. By 1970, roughly 15,000 work-related fatalities occurred every year. That year, Congress enacted the Occupational Safety and Health Act” (Noe, Hollenbeck, Gerhert, & Wright 2004). To continue to be in complete compliance with the Occupational Safety and Health Administration (OSHA), we believe there are answers and solutions to the increased accident rates at SMC. Our first recommendation would be to adopt a new and improved training program at SMC that will meet all health and safety standards required by OSHA. We also believe SMC should implement a needs analysis that highlights each and every task that any new employee of SMC learns, conducts, or performs. It is also our recommendation that SMC documents all of these particular processes in writing and is put into written guidelines for the employees of SMC. We also recommend future hands-on training for the new procedures and that their supervisor then certifies them in writing. Another way to protect our employees from further safety and health hazards is for the employees of SMC to follow OSHA’s safety rules and regulations as well. OSHA’s general duty clause requires employers to be “constantly alert for potential sources of harm in the workplace and to correct them. Employees also have a duty to report hazardous conditions” (Noe, Hollenbeck, Gerhert, & Wright 2004). Lynn Williams, President of United Steelworkers of America, has noted, “We can’t count on government. We can’t count on employers. We must rely on ourselves to bring about the safety and health of our workers” (Verespec 1992). Also looking at past history and statistics, we can see that “the rate of occupational illness more than doubled between 1985 and 1990, according to the Bureau of Labor Statistics, while the rate of injuries rose by about 8%. However as depicted in the graph, both rates showed an overall downward trend during the 1990s to 2005. [pic] Our last recommendation is that SMC develop a safety awareness program with three primary components. The first of these three components is identifying and communicating hazards in the workplace. Second, is reinforcing safe practices in the workplace. Third, is promoting safety internationally.
Conclusion
In conclusion, this represents our five-year plan recommendations describing what SMC needs to do over the next five years to remain competitive with regards to staffing, employee development and training, compensation and benefits, employee relations, and safety and health We have also prioritized the plan and actions needed to address these proposed changes. If SMC will put these proposed recommendations and plan into action, our company’s total earning potential is limitless and the future success of SMC is guaranteed.

Reference Page
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Ergo in Demand (2006). 12 Easy Guidelines for an Ergonomic Computer Workstation. Retrieved November 5, 2006 from: http://www.ergoindemand.com/ergonomic-computer-workstation-guidelines.htm eSupplemental. (2006). Short Term Disability Insurance. Retrieved October 29, 2006, from http://www.esupplemental.com/shorttermdisabilityinsurance.htm?_kk=short%20term%2
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http://www.ltc-usa.com/LTCI/what_is_ltci.htm
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Noe, R., Hollenbeck, J., Gerhert, B., & Wright, P.(Ed.). (2004). Fundamentals of Human Resource Management, 1e [University of Phoenix e-Book Collection]. The McGraw-Hill Companies. Retrieved October 14, 2006, from University of Phoenix, r-Esource, MGMT/431-Planning and Recruiting Human Resource Web site: https://ecampus.phoenix.edu/content/eBookLibrary/content/eReader
Union in the Workplace. (2006). Retrieved on November 4, 2006, from http://www.thetimes100.co.uk
Verespec, M.A., OSHA Reform Fails Again, Industry Week, November 2, 1992, p.36

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SMC

Human Resources Department