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HR Growth

“I loved it,” says Yvonne Jackson, senior vice president of human resources at Pfizer, referring to her first job in human resources. In 1970, fresh out of Atlanta’s Spelman College, Jackson joined Sears, Roebuck & Co.’s Los Angeles office as its first female African American merchandising management trainee. Her first staff rotation assignment was in human resources. “In marketing and merchandising you were dealing with product,” continues Jackson. “In human resources you were dealing with the human potential. I saw people grow and develop, and thought, ‘This is great!’ I still have the same feeling and the same focus today. Human potential: How do you capture, develop, and unleash it?”

The essential focus of human resources has not changed, yet the scope, impact, and demands of a career in this field have evolved dramatically since the 1970s. While clerical employees in “personnel” could aspire to lead the planning of company outings and payroll and benefits administration, today’s top human resources professionals serve as equal partners in the executive suite and are expected to optimally leverage human capital through economic booms and busts.

Jackson is now head of global human resources at Pfizer, the largest research-based pharmaceutical company in the world. She is responsible for more than 122,000 employees worldwide, reports to Chairman and CEO Henry A. McKinnell, and is an integral part of the company’s leadership team — the top nine Pfizer executives tasked with running the company. Pfizer, producer of the blockbuster prescription drug Viagra, achieved 2003 global sales of $45 billion. Jackson also guided Pfizer’s April 2003 acquisition of Pharmacia Corp.

Job Expectations
In today’s environment, human resources professionals are expected to come to the table with highly developed strategic, financial, analytical, and technical skills. They must produce metrics demonstrating the bottom-line impact of human resources initiatives and, increasingly, differentiate themselves by acquiring advanced degrees and certification demonstrating functional competency. Human resources encompasses a varied slate of disciplines:

  • Labor and employee relations — as a functional specialist or a full-fledged lawyer
  • Compensation and benefits
  • Organizational development
  • Training
  • Diversity*
  • Equal employment opportunity compliance
  • Occupational health
  • Safety or human resources information systems

Many follow a generalist track but have expertise in one area and work with specialists to deliver the full array of human resources functions to segments of an organization. Rewards are keeping pace with increased expectations.

Employment Opportunities
Human resources hiring at all levels has been relatively resilient. “Human resources graduates are still in demand, although the economy is faltering,” says Regina Duffey Moravek, director of career services at Cornell University’s School of Industrial and Labor Relations. The school is the

only one in the world dedicated solely to the study of labor relations and human resources on the undergraduate level. Many employers consider it the premier source for entry-level hires in this field. “As organizations grapple with rapid change and globalization,” continues Duffy Moravek, “they are facing challenges that cause them to continue to hire in human resources. Business and engineering schools are really taking a hit. Organizations seem to be deciding, ‘We don’t need 10 more M.B.A.s, but we need [human resources help].’ We graduate up to 50 students from our master’s program. In 2003, 98% found employment before or shortly after graduation.” The school’s bachelor’s program graduates about 190 students annually.

Greg Hessel runs the human resources practices unit of Korn/Ferry International from its Dallas office. Korn/Ferry places human resources executives at the highest levels and fills middle management positions through its Futurestep subsidiary. “We consider our human resources practice as the second-highest priority, second to our CEO and board of directors practice. We have 20 people worldwide dedicated to the human resources practice, with the United Kingdom, Mexico, Latin America, and the U.S. [as] the most active markets.

“Overall activity has remained steady through the economic downturn,” continues Hessel, who notes that his company did not see a reduction in requests, as did industries like technology, certain industrials, or retail. He did see the approach to human resources change. “The [human resources] jobs became more difficult, and individuals who were not able to be that ‘business partner executive’ were revealed. A lot of what we were doing was replacing talent that failed. As senior leadership teams have shrunk, it has put more responsibility on [human resources] to deliver in helping companies run in more efficient, effective ways.” Life science, including pharmaceuticals, major hospitals, and university systems, have been the most active. There has also been more human resources demand in financial services, Hessel says, with opportunities primarily in organizational management and development functions. “I’ve also seen a bounce in compensation as executives seek to retain strong [human resources] professionals.”

Employment Statistics
According to the 2002 Bureau of Labor Statistics: Of 677,000 human resources, training, and labor relations managers and specialists, 31% were in the training and development functions; 30% were human resources managers; 25% were employment, recruitment, and placement specialists; and 13% worked in compensation, benefits, and job analysis functions.

U.S. Census predictions indicate that human resources employment will grow 21% to 35% through 2012. African Americans comprised 12% of specialists employed in human resources training and labor relations, and women comprised 67%.

Industry Trends
Human resources services organizations are now proliferating as companies outsource certain functions. “Outsourcing benefits, training, organizational development, clerical staffing, payroll processing, and human resources information systems is a hot trend today and will accelerate as companies continue to cut costs,” explains Joanne Robinson, president of the National Association of African Americans in Human Resources (www.naaahr.org). Founded in 1998, its members total about 1,000 across 25 chapters.

Robinson, who has 25 years of human resources experience, runs R&R Associates, a part-time consulting firm. She is one of approximately 4,000 independent consultants.

Another trend to watch is how the diversity function is managed and staffed. According to Diversity Best Practices, www.diversitybestpractices.com, a service firm that researches and publishes data on how top companies are managing diversity, 19% of Fortune 1000 companies have separated the diversity function from the human resources function, with a chief diversity officer reporting to the CEO and managing a department of diversity specialists focused on supplier and vendor diversity, employee recruitment and retention, and even customer marketing diversity. Even when the function reports to the top human resources executive, it commands more staff and increased attention. Some see a conflict in this and predict a pendulum swing in the other direction.

“I think we’ve always made the mistake of confusing the issues of diversity and litigation avoidance,” says Johnny C. Taylor Jr., executive vice president as well as general counsel and secretary for Compass Group North America, a subsidiary of London-based Compass Group USA Inc., the largest food-service company in the world with 2003 revenues of $
13 billion. Taylor, who works in Charlotte, North Carolina, is responsible for all equal employment opportunity compliance and employee situations that become legal issues. A separate human resources executive handles all pre-litigation employee relations matters.

Compass Group USA Inc. employs over 400,000 people in 90 countries — 120,000 of them are in North America. Taylor sits on the board of directors for the Society for Human Resource Management — the largest human resources professional group in the world with 175,000 members. In January 2005, Taylor will step in as the elected chairperson of the society for a two-year term.

“Let’s be clear,” continues Taylor. “Some things we do because we do not want to find ourselves having to defend ourselves in the court of law or the court of public opinion. Employment litigation is changing the way we do things [in the field of human resources]. It’s tantamount to what happened in the medical profession. Malpractice suits changed the way medical professionals handled patients. We will see a new focus on compliance and litigation avoidance; any human resources person who does not see this has their head in the sand. The convergence of sophisticated and litigious plaintiffs and a [challenging] economy has created a need for well-trained human resources professionals.”

Pfizer’s Jackson echoes Taylor’s sentiment about inevitable shifts in the human resources role. “We’re engaged in what we call [human resources] transformation. Pfizer has a few hundred human resources people in the U.S., and they spend 40% of their time on administrative stuff. As our systems platforms are enhanced, they will need to transition to more organizational development and change management.”

Global Outlook
Korn/Ferry’s Hessel sees increasing placement activity in all markets except Asia. Last year, Jackson spent time in Italy, Sweden, Spain, and Germany, and plans trips to Japan, India, Thailand, and Latin America as she ensures her vision for human resources at Pfizer also takes root overseas.

For African American human resources professionals who are excelling at the pinnacle of an ever more critical and complex function, the payoff is a deep sense of satisfaction that they are engaged in work that makes a difference. “I don’t know of any other resource that a company can focus on that will have more direct impact on its overall success or failure,” concludes Taylor.

TOOLS FOR CAREERS IN HUMAN RESOURCES
The Bureau of Labor Statistics publishes the Occupational Outlook Handbook annually. See its “Human Resources, Training, and Labor Relations Managers and Specialists” entry for detailed, up-to-date information about human resources careers, outlook, and required qualifications (www.bls.gov/oco/ocos021.htm).

The Society for Human Resource Management provides an impressive wealth of resources and state-of-the-art research and support tools (www.shrm.org).

The Human Resources Certification Institute, an affiliate of the Society for Human Resource Management, oversees and administers programs and examinations leading to certification as a professional in human resources, a global professional in human resources, or a senior professional in human resources (www.hrci.org).

The National Association of African Americans in Human Resources (www.naaahr.org) and the Black Human Resources Network (www.bhrn.org) provide networking, mentoring, and professional development custom-tailored to the needs of black human resources professionals.

WetFeet is an industry and career research resource that publishes insider guides about a host of careers, industries, and specific companies. Its “Insider Guide to Careers in Human Resources” provides a wealth of statistics, commentary, and advice about breaking into and succeeding in the field (www.wetfeet.com).

Jackson’s Power Moves

Sears, Roebuck & Co.
(9 years)
Jackson joins Sears as a merchandising intern in 1970. She rotates into a human resources job and then back to merchandising. Jackson requests a human resources assignment but leaves when Sears insists that she remain in a merchandising/marketing track.
Avon
(14 years)
Jackson takes a lesser title for a human resources job at Avon, where she begins in executive recruiting. She is given increasing responsibilities in employee relations and then in generalist roles. Jackson is sent to Harvard Business School for 26 weeks, where she earns a management development certificate. She is promoted to vice president of international human resources. Jackson takes 26 trips to Japan in four years as she handles a large IPO. She also travels to Brazil, the U.K., and Mexico while she receives extensive development in the areas of international human resources, succession planning, and compensation. Jackson is promoted to the No. 1 person in Avon’s domestic human resources division.
Burger King Corp.
(6 years)
Jackson leaves Avon for the No. 1 human resources job: senior vice president of worldwide human resources. She partners with the CEO and senior team to successfully re-engineer the business and execute a turnaround in one year. Jackson learns the power of focus and managing major change.
Compaq Computer Corp.
(3 years)
Jackson serves as the head of worldwide human resources. She is responsible for changing the culture, enhancing communication, and upgrading manager skills. Jackson leaves when Compaq is purchased by Hewlett-Packard.
Pfizer
(2 years in current role)
Jackson is the senior vice president of worldwide human resources. She says that her biggest challenge has been integrating Pharmacia after its April 2003 acquisition.

Human Resources Salary Ranges (2003)

Human Resources Assistant $26,000 — $37,000
Human Resources Generalist $35,000 — $80,000
Human Resources Manager $50,000 — $80,000
Benefits Administrator $38,000 — $50,000
Benefits Analyst $30,000 — $90,000
Compensation Analyst $40,000 — $90,000
EEO Specialist $45,000 — $65,000
Recruiter $40,000 — $75,000
Training Manager $50,000 — $90,000
HRIS Manager $50,000 — $105,000
Labor Relations Manager $60,000 — $110,000
Human Resources Director $60,000 — $110,000
VP of Human Resources $90,000 — $225,000
Source: WetFeet Inc. © 2003, Bureau of Labor Statistics


Industries With The Greatest Projected Human Resources Growth Through 2010

Rank

Industry

Human
Resources
Growth (%)

1 Computer and data processing services 66.0
2 Residential care 55.8
3 Home healthcare services 51.2
4 Personnel supply services 51.2
5 Miscellaneous business services 47.8
6 Public warehousing and storage 46.0
7 Veterinary services 45.3
8 Health and allied services 44.8
9 Offices of physicians 43.4
10 Water supply and sanitary services 42.4
Source: WetFeet Inc. © 2003, Bureau of Labor Statistics

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