11 7switch to 401k plans defined benefit plans a

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Unformatted text preview: were engaged in same industries.  Now, workers control the means of production—their creativity, energy, mental ability. 11 7.Switch to 401(k) plans  Defined benefit plans a result of economic boom of the 50s and 60s.  Subsequent legislation increased compliance costs and hassles.  Single-employer DB plans declined from 112,000 in 1985 to 29,651 in 2004.  In 2005, 53% of all workers had access to a DC plan; 22% had DB plans. 12 What’s the problem with DC plans?  In 2004, nearly 30% of eligible employees did not participate  Many cash out their balances when switching jobs  Many invest unwisely 13 8.The Global Economy  1960, US exports $25 billion  2004, US exports $1.2 trillion  Lower trade barriers, increased employee mobility and highspeed Internet  17% of US employment was under foreign control by 2005  Immigration supplies important sources of labor  Off-shoring of white-collar jobs is expected to increase 14 U.S. Recession began December 2007  SHRM surveyed 2,342 professionals in January 2010 from selected industries: construction; federal, state and local government; health; manufacturing; professional services; finance and high tech. (Gurchiek, 2010)  65 percent of HR professionals said they lost 1ess than 10 percent of their staff since the onset of the recession in December 2007; 22 percent lost 10 percent to 20 percent of their staff; and 11 percent lost 21 percent to 50 percent of their staff. 5/12/13 15 Watching recovery… 3 U.S. Recession began December 2007  SHRM surveyed 2,342 professionals in January 2010 from selected industries: construction; federal, state and local government; health; manufacturing; professional services; finance and high tech. (Gurchiek, 2010)  65 percent of HR professionals said they lost 1ess than 10 percent of their staff since the onset of the recession in December 2007; 22 percent lost 10 percent to 20 percent of their staff; and 11 percent lost 21 percent to 50 percent of their staff. 14 15 Watching recovery…  62 percent said their company is hiring full-time staff.  47 percent of people being hired are for new positions; 41 percent are replacements for positions lost during the recession; 12 percent are for new duties added to jobs lost during the recession  As of March 2010, the areas expecting the most employment were health care, Federal government, technology and finance. 16 9.The Fear of Terrorism  Fortified and backed-up computer data networks  Air travel has become a time-consuming ordeal  Job applicants subject to thorough background checks  National Guard and reserve troops taken from employers 17 10.Evolution to Strategic Partnership  “As HR moves into its highest strategic role, then, it will need to wean itself from strict compliance responsibilities that increased its prominence but can limit it to a tactical, rather than a strategic role.” (Ten changes, 2005, p. 44)  “The amount of time that the HRM function devotes to administrative tasks is decreasing, and its roles as a strateg...
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