WorkPlace, July 2000

It seems like it happened overnight. All of a sudden your benefits package was outdated, your compensation levels became archaic, your schedules were rearranged with flextime and your employees started declaring "mental health" days. Where did it all begin? Some blame the advent of the fax machine as the culprit, others blame casual Fridays or Gen-Xers. Either way, the old way of doing things is history.

The employment arena will continue to change as American leaders search for a new organizational model. Since the early 1980s, several models have emerged, but none have survived. Consider Total Quality Management, empowerment and team-based management, to name a few. A model still must be designed that can respond to the rapid pace of the information age and changing demographics. What will this model look like and how will it affect a company’s human resources? A look in the crystal ball of employment suggests the following:

Project Focus — Informal partnerships and loose alliances will bring together key people to complete big projects in shorter periods of time. Individuals will bring a very specific set of skills to the project and will float between projects. Telecommuting will be more prevalent. Work arrangements and schedules will be flexible, changing shape when needed. More work and functions will be outsourced to consultants and contractors.

Compensation — Expect continued shifts toward pay for performance programs at all levels as emphasis moves from hours worked to projects completed. More employers will offer employees a financial stake in their business.

Benefits — More employers are expected to scrap traditional health plans and provide cash (or, possibly tax credits) in lieu of medical benefits. Sick time will be replaced with "personal time off" and more of it. Employees will begin controlling their own retirement funds. Benefit programs will become portable (using kiosks) and will cover independent contractors and domestic partners. Biomedical discoveries will alter health benefits.

Management Style — Dominant, demanding management styles are no longer effective. The management style most commonly practiced by many women will be most effective in the coming chaotic, customer-driven, multigenerational environment. Managers will learn how to deliver a "personal touch" to a remote workforce. Talented managers with key skills such as negotiation, facilitation and coordination ability will be in demand.

Culture — Diversity and the intermingling of multiple generations under one roof will lead to confusion. Expect programs that are generation or department specific, i.e., the information technology department will be treated differently from the sales department; perks will range from picnics to cappuccino at work. Companies will find ways to offer phased-in retirement to older workers.

Unionization — Expect labor unions to be revitalized, due to the growing gap in compensation, a lack of stability in business and contingent workers looking for equal treatment. The shift to hire more immigrants, handicapped and traditionally unemployed individuals into unskilled, lower-wage positions also makes the arena prime for unions. (Union membership rose faster last year than at any time in the past 20 years, the Bureau of Labor Statistics reports.)

Training — Businesses will shift their internal human resources focus to training that can respond to a rapidly changing workforce. With technology advances that produce smarter equipment, smarter people are needed to keep up. As it becomes more difficult to buy talent, employers will have to produce it. Training will be more virtual, more interesting and more cutting-edge. Training and educational programs that integrate work and life will become necessary.

Legal — Discrimination claims will shift from those based on race and sex to charges based on religion, national origin and sexual orientation. Businesses will have to guard against industrial espionage and theft of patents, innovations and trade secrets.

THE RIGHT STEPS. In the Y2K world of business, constant innovations in information technology, the entrance of e-commerce in the marketplace and serious shortages of workers are revolutionizing the workplace. How can organizations stay one step ahead of this rapid pace? If you haven’t already, consider these essential recommendations:

Examine your compensation plan. Ensure internal and market equity. Develop creative results-oriented incentive programs. Ensure your benefits are Y2K ready. Your compensation package may be generous, but if it doesn’t meet the needs of today’s workers, it won’t be effective.

Focus on results. Explore options for outsourcing, flextime and a shift in mindset to project work and bottom-line results.

Beef up training. Train new workers early, continually educate long-termers and upgrade your training to stay a step ahead of others in the pest control industry.

Prepare managers. Ensure your managers have the tools necessary to meet the demands of managing a cross-generational workforce. Teach them how to develop leadership skills.

Involve HR. The biggest changes in business will be in information technology and labor. If your HR function doesn’t have a seat at the strategy table yet, add a chair. HR must develop a solid strategic plan for how the organization will handle the upcoming labor challenges. HR will be a key function of the future.

The business model of the new millennium is taking shape. In the end, regardless of the color, size or shape of the model, one thing is certain. It will be spelled F-L-U-I-D. And he or she who welcomes change and adapts the quickest will win.