Putting Values Into Action
2005 - 2006 Annual Report Society for Human Resource Management
Mission of the Society for Human Resource Management: Serve the HR professional. Advance the HR profession.
The Society for Human Resource Management (SHRM) serves the needs of the human resource (HR) management professional by providing the most essential and comprehensive set of resources available. In addition, the Society is committed to advancing the HR profession and the capabilities of all HR professionals to ensure that human resources is an essential and effective partner in developing and executing organizational strategy.
A Message from the Chair and CEO
The North Star is the star that the earth's axis points
zation and its talent become more focused on what’s truly
toward in the Northern sky. For many years, the North
important. Values reduce distractions, simplify decisions, and
Star has been used to chart navigational maps and has
prepare an organization for tomorrow.
been employed by sailors around the world as a navigational tool. It has also been used to measure astronomical
Indeed, values create value. Experts say that more and more
latitude. When people think of the North Star, they think
companies around the world have implemented formal
of it as omnipresent—a universal constant, the brightest
statements of corporate values, and that executives now
light in the cosmos and one that has provided guidance
identify organizational values as a cornerstone of their busi-
and direction to many over the years.
ness agenda. In addition, many more companies are making their values explicit to employees and customers alike.
For SHRM, our values—the belief that our members and employees matter, that what we do and how we do it
SHRM believes that values can drive performance and inno-
matter, and that our culture matters—have become our
vation and, naturally, that the most successful companies
North Star. They drive our daily decisions and direct the
derive value through their people. The activities and results
way in which SHRM conducts its business. They guide
described in this report reflect how deeply our principles
how SHRM interacts with people—our members, volun-
infuse our actions and activities today and in the future.
teers, and staff, and they direct how the Society plans for
We simply believe our values will help us meet our strategic
the future. Our values also are intrinsically tied to our mis-
goals and, perhaps more importantly, help us build stronger
sion and our commitment to that mission.
relationships with our members, and other influential leaders and enhance the reputation of both the HR profession
The key point to remember about values is that implement-
and the Society.
ing them focuses everything concerned with them. For an individual, committing to and applying a set of values nar-
The ultimate power of SHRM’s values lies in our commitment
rows their focus and releases new energies, which promote
to express them in everything we do. Like the North Star,
success, achievement, and a sense of fulfillment. Likewise,
they are, and will be, our guiding light for years to come.
when an organization adopts and instills values, the organi-
Johnny C. Taylor Jr., J.D., SPHR 2005-2006 Board Chair
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Susan R. Meisinger, SPHR President & Chief Executive Officer
2005 SHRM Board of Directors
From left to right Back Row: Nancy L. Volpe, SPHR, Director-at-Large; Beverly K. Carmichael, Director-at-Large; Rita Bennett, Director-at-Large; Jose A. Berrios, Director-at-Large; Audrey Boone Tillman, Director-at-Large; Carolyn Gould, SPHR, GPHR, CCP, Director-at-Large; Mary Cheddie, SPHR, Director-at-Large; R. Roosevelt Thomas, DBA, Director-at-Large; Center: Robb E. Van Cleave, SPHR, IPMA-CP, Treasurer. Front Row: Janet N. Parker, SPHR, Chair Designate; Johnny C. Taylor, Jr., J.D., SPHR, Chair; Susan R. Meisinger, SPHR, President, CEO (Ex-Officio, Nonvoting Member); Robert O. Gonzales, Secretary. Not Pictured: Clinton R. Gurney, CPA, Director-at-Large.
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Rock ‘n roll icon Elvis Presley once said,
Values are like fingerprints. Nobody's are the same, but you leave 'em all over everything you do. In 2005, SHRM rolled out a new organizational values initiative to clarify both the organization's values and the connection between those values and the employees' personal values. Focus groups were held to involve employees in the development of a values statement and all employees participated in training workshops.
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SHRM Values
What We Do Matters Every job at SHRM is important and contributes to meeting our mission to serve the HR professional and advance the HR profession.
Our Members Matter We ALL serve our members, volunteers, and the HR profession.
Our People Matter We value our colleagues.
Our Culture Matters We value an honest, supportive, and collaborative environment.
How We Do Things Matters We are passionate and committed to being THE BEST.
Elvis Presley's sentiment echoes what SHRM intends for our newly developed values statement to accomplish—leave indelible fingerprints on everything we do.
The activities and results described in this report reflect how deeply these values infuse all that we do.
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inform Keeping our members informed
In the 21st century, information is the most important
The vehicle many members turn to for information is
commodity. The strategic use of it determines the suc-
SHRM Online速. In 2005, more than 90 percent of
cess or failure of most organizations and their leaders.
members, and a large number of non-members,
SHRM strives to be an excellent source of information to
visited SHRM Online. SHRM launched a redesigned
help members stay on top of current trends, learn from
and reorganized Web site in October of 2005,
the experiences of leaders in the field, build a career,
drawing on feedback from members gathered
and gather research to guide decision making.
during the previous year.
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Putting Values Into Action
Two new Focus Areas were added to SHRM Online:
and links to full articles directly to their own
HR Outsourcing and Workplace Diversity. Focus Areas
personalized Web page such as those created using
include news, research, webcasts, discussion areas and
the My Yahoo! feature. Users may also add the feed
more for specific HR disciplines, all free to members.
to their organization’s Web site, ensuring fresh content
New features and content were added to existing
for visitors.
Focus Areas, including new translated content, an update to country reports within the Global HR Focus
SHRM and Employ Media, LLC, received official
Area, a retirement planning resource center within the
approval to operate a new World Wide Web address
Compensation & Benefits Focus Area, and more than
with the suffix .jobs. The new suffix exists exclusively
1,000 new articles.
for organizations to post open positions and can be an important tool in any organization’s recruiting arsenal.
HR News published more than 500 original news
Organizations that are approved may set up Web pages
articles in 2005. This free daily online news service
with their company name followed by .jobs (e.g.,
captures breaking news of importance to HR profes-
www.shrm.jobs), which is now a permanent Internet
sionals and provides timely analysis and advice
domain like .com, .net, and .org. Many companies
based on the top issues.
are already using the .jobs domain, including Amazon, Walgreens, The Walt Disney Company, Nokia, American
A popular educational resource, SHRM Online offered
University, and Mercedes-Benz, among others.
45 webcasts on a variety of topics free to members, including reducing retiree drug costs, HR technology,
HR Magazine®, SHRM’s
business continuity planning, HR leadership, and Six
flagship publication, featured
Sigma, among others topics. An archive of webcasts
cover stories on such topics as
hosted since 2004 is available on SHRM Online.
why Wall Street is often blind to the value of people and
SHRM continues to leverage new technologies to
people management, the role
deliver information to members, making Really Simple
of human resources in educat-
Syndication (RSS) feeds for SHRM Online news stories
ing corporate boards, and the soaring use of metham-
available to members and non-members. Users may
phetamine in the workplace. In addition, the magazine
receive HR-related news feeds with headlines, summaries,
published a stand-alone collectors’ issue commemorating
Our Culture Matters • How We Do Things Matters • What We Do Matters • Our Members Matter • Our People Matter
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the magazine’s 50th anniversary and 50 years of the
Award for On-Site Trade Show Coverage from the
profession, which was well received by members.
American Society of Business Publication Editors.
The magazine was chosen as a finalist in two categories
As a book publisher, SHRM
for the prestigious Jessie H. Neal Award—considered to
released several new titles in
be the Pulitzer Prize for business publishers. It was
2005, including Proving the
honored also by Association Trends, which covers the
Value of HR: How and Why
association industry, with a Gold Award for Professional
to Calculate ROI. As part of
Society Magazine with a budget larger than $1 million
our Business Literacy for HR
in 2005. And, the Society of National Association
Professionals series, SHRM and
Publications honored HR Magazine with a Gold Award
Harvard Business School Publishing produced three
for Feature Article and presented SHRM with a Silver
books, The Essentials of Finance & Budgeting, The
Award for General Excellence of Editorial Products.
Essentials of Managing Change and Transition, and The Essentials of Negotiation. Finally, SHRM co-pub-
Debuting with the spring
lished The Future of Human Resource Management
2005 issue, SHRM redesigned,
with Wiley Publishing. The book was edited by SHRM
renamed, and relaunched
president and CEO Susan Meisinger, SPHR, former
Staffing Management
SHRM president and CEO Michael Losey, SPHR, and
magazine (formerly
management expert David Ulrich, PhD. It featured sub-
Employment Management
missions from 64 thought leaders on the critical HR
Today) with positive feedback
issues of today and tomorrow.
from members. The publication covers the latest techniques and trends in recruiting employees, and
SHRM published survey reports on a variety of topics in
its audience is HR professionals who have a focus on
2005, including one on the Fair Labor Standards Act’s
recruiting and staffing. Staffing Management won
white-collar regulations one year after their adoption.
a Silver Award for Most Improved Professional Society
Among topics covered by survey reports published in
Magazine from Association Trends.
2005 were rewards and incentive compensation, organizational communication, the future of the U.S.
The SHRM Conference Daily, published at the SHRM
labor pool, disaster preparedness, and the worldwide
Annual Conference & Exposition, received a Gold
view of the maturing HR profession. In addition, SHRM
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released a report on employee development conducted
executive summary of the Human Capital Benchmarking
jointly with Catalyst, an organization that works to
Study is available free to members on SHRM Online.
expand opportunities for women at work. The Leading Indicator of National Employment SHRM was a sponsor of a groundbreaking study on
(LINE™), launched in 2004 by SHRM in coordination
civil rights in the workplace conducted by The Gallup
with Rutgers University School of Management and
Organization. The survey commemorated the 40th
Labor Relations, continues to gain support from influ-
anniversary of the Civil Rights Act and was intended
ential audiences. Released monthly, LINE tracks total
to determine employee perceptions of discrimination
employment, total vacancies, recruiting difficulty, new
in the workplace and consider how these perceptions
hire compensation, and employment expectations. In
affect job performance. SHRM was represented at a
addition to LINE’s usefulness for HR professionals with
news conference at Gallup’s world headquarters with
recruiting and staffing responsibilities, it is increasingly
Cari Dominguez, Chair of the U.S. Equal Employment
being used by economists and financial analysts to
Opportunity Commission. The Gallup survey and all of
enhance their forecasting ability. SHRM is conducting
SHRM’s survey reports are available through SHRM
outreach efforts to this audience, including promotion
Online, free to members.
at a National Association of Business Economists conference. Economic data distribution giants Haver Launched in June of 2005,
Analytics and Global Insight have begun to distribute
SHRM’s Customized
the monthly LINE indexes to their subscribers. In 2005,
Benchmarking service is
LINE data were enhanced through collection of a non-
generating steady interest
manufacturing (service sector) sample for comparison
from HR professionals looking
with the current manufacturing sample. Members and
to leverage metrics and other
non-members may sign up to receive monthly
customized data in strategic
e-mail notification of the release of LINE.
ways. The service was made available following the release of a human capital benchmarking report that
In our drive to provide members with high-quality
involved gathering HR, financial, and other organization-
research pieces, SHRM produced numerous case studies
al metrics from more than 1,500 organizations and ana-
on topics such as organizational diversity networks and
lyzing the data by company type, size, and industry. An
corporate social responsibility, which feature advice
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from HR experts on common managerial problems.
To encourage discussion about the future of HR,
Eight Research Translations were published to pro-
SHRM holds an annual symposium on various aspects
vide members with a practitioner’s perspective of
of human resources. In late 2005, SHRM held the
research from the academic community and to present
Symposium on the Future of Strategic HR in
thought-provoking “golden nuggets” applicable to
Washington, D.C. The event brought together experi-
organizations today and in the future.
enced HR practitioners and consultants from around the country, members of SHRM’s senior management,
Research Quarterly reports, authored by SHRM
and professor Lee Dyer, to discuss the future of strate-
researchers, appeared in HR Magazine throughout
gic HR—what it is and what can be done to drive the
2005 and are available free to members on SHRM
transformation of HR to a more strategic profession. An
Online. Topics included HR’s strategic role in crisis
executive summary was developed from the symposium,
management, reaping the value in HR outsourcing,
which was mailed to all members and is available online.
the power of diversity for competitive advantage, and leveraging the shift to self-service HR technology.
In addition to proactively providing information, SHRM responded to nearly 150,000 member inquiries to our
SHRM undertook a major
Information Center in 2005. Express Requests, the
project in 2005 to identify
Information Center’s online self-service vehicle, contin-
several scenarios for the
ues to be a very popular tool and yields a high satis-
future of HR management.
faction rate from users, with an average rating of
Working with Decision
94.4 percent for the year.
Strategies International, SHRM published Scenarios
The Information Center added a database of 35 inter-
for the Future of HR
active forms that make automatic calculations based on
Management: 2015, which presents a set of possible
data entered by the member online. Examples include
futures, not as predictions, but as information to help
revenue per employee, cost per hire, vacancy rate, and
HR professionals gain a better understanding of what
turnover. A new online directory of salary survey data
it may take to succeed in the years ahead. The report
received 8,000 hits in its first month of operation and
was used in SHRM’s own strategic planning discussions
continues to be popular.
and is available online, free to members.
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2006 Highlights With a foreword by SHRM President and CEO Susan Meisinger, SPHR, and co-authored by University of Southern California professors Edward E. Lawler, III, and James O'Toole, The New American Workplace will be published and available in the summer of 2006. Thirty years ago, O’Toole wrote a book, Work in America, that received national acclaim, including front-page coverage in The New York Times and The Wall Street Journal. The book sounded an alarm about worker dissatisfaction and the effects on the nation as a whole. Based on 30 years of research, the new book, funded by SHRM, sheds light on what has changed—and what hasn't. In our Business Literacy for HR Professionals series, Harvard Business School Publishing and SHRM will release four books in 2006 on communication, power and influence, business strategy, and project management. In 2006, SHRM expects to publish other books, including the following working titles: • Outsourcing Human Resources Functions
• The Comprehensive, All-in-One HR Operating Guide
• Building Profit through Building People
• SHRM Guide to Federal Employment Laws
• Employment Termination Source Book
(with Nolo Press)
In response to member feedback, SHRM launched a new State Workplace Law page on SHRM Online in February 2006 to provide more targeted, state-specific information. State legal news was added to HR Week, customizing SHRM’s weekly e-newsletter to distribute 52 editions of the newsletter with state-specific employment law news in the recipients’ home state or territory. SHRM plans to archive the regional content online for member access. New in 2006 will be an expanded program that includes a series of business leadership webcasts. Also planned is a new RFP database that matches HR consultants with possible clients and an expansion of the newly launched HR Technology comparative product listing. A new Online Buyers’ Guide will be released to help members find HR products and services from vendors easily. In another new offering through SHRM Online, podcasts were made available in early 2006 for selected SHRM webcasts. Members may now download the audio of a webcast onto a personal audio player, such as an iPod, and listen to it when and where they want. SHRM released a number of research products during the first quarter of 2006, including survey reports on talent management and job recovery; a Research Quarterly on HR technology competencies; and Research Translations covering participatory management and corporate social responsibility.
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develop Helping our members develop professionally
SHRM reviews and refines its educational programming
conferences. Taking into consideration the feedback of
and professional development programs to meet the
members and input from SHRM’s senior management
needs and interests of HR professionals continuously,
team, a statement was finalized that outlines the
including those outside the United States.
unwritten assumptions under which SHRM staff has operated. The philosophy covers everything from plan-
In 2005, SHRM created a conference philosophy and
ning and pricing to evaluation and volunteer participa-
strategy statement to provide guidelines for launching
tion and begins with the following declaration:
new conferences as well as evaluating current SHRM
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Putting Values Into Action
SHRM's conference philosophy is to produce unique conferences and experiences that contribute to the skill development and advancement of its participants and increase the visibility of the HR profession. We support the SHRM brand by understanding the needs of our customers and consistently delivering conferences that produce a high level of customer satisfaction. The overall goal of each conference is to deliver practical knowledge and showcase opportunities for growth by developing programs that have practical applications in the workplace.
SHRM successfully presented many quality professional
employment legislative
development programs in 2005, including our 57th
issues. Held in New York
Annual Conference & Exposition in San Diego, fea-
City, SHRM’s second
turing keynote speakers Bill Cosby, Malcolm Gladwell,
Strategic HR Conference
David Ulrich, Ph.D., and Bertice Berry, Ph.D. One of the
addressed issues such as
best-attended conferences in SHRM’s history, more
strategy, leadership, deliver-
than 17,000 attended the conference and gave an
ing value, and corporate
average satisfaction rating of 94 percent.
ethics. The conference was held for senior HR professionals and featured many networking opportunities.
SHRM set attendance records for its 28th Annual SHRM®
Attendance at SHRM Academy programs grew
Global Forum Conference
in 2005, receiving very high marks from participants.
in Chicago, its 2005 SHRM®
The Academy, designed to help HR professionals attain
Workplace Diversity
a deeper understanding of business essentials, launched
Conference in Las Vegas, and
a Conflict Resolution Skills for HR Professionals
its 36th Annual Employment
program in December.
Management AssociationSM (EMA) Conference in Dallas. At the 23rd Annual SHRM® Employment
Executive education continues to be an exciting area,
Law & Legislative Conference in Washington, D.C.,
with SHRM adding new offerings with highly respected
approximately half of the attendees participated in
academic institutions. New for 2005, SHRM’s Advanced
organized visits with their members of Congress to
Program in Human Resource Management:
share their professional experiences on various
Creating Organizational Value through Exceptional
Our Culture Matters • How We Do Things Matters • What We Do Matters • Our Members Matter • Our People Matter
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HR Management premiered at the University of
Professional in Human Resources (SPHR) certifica-
California, Los Angeles, in September.
tion, an online resource center, and archived webcasts.
Several new programs were offered in conjunction with
A newly designed Advanced HR Generalist seminar—
Harvard Business School Publishing. More than 100
based on a framework that allows participants to cre-
attendees registered for the new HR Executive
ate wholly integrated HR plans—was rolled out at
Certificate Program: Critical Strategies for HR
SHRM’s Annual Conference in 2005.
Leaders held in conjunction with SHRM’s Strategic HR conference.
More than 5,700 participants enrolled in courses through
Responding to members’ needs and expectations,
SHRM® e-Learning, which
SHRM offered a networking event for senior HR
migrated to a new software plat-
professionals in each of SHRM’s five domestic regions,
form to allow for scalable growth
with more than 560 professionals registered to partici-
and international accessibility.
pate. The events, successfully held in Philadelphia, Orlando, Chicago, Phoenix, and San Francisco, had
SHRM is researching international interest in other HR
a special emphasis on at-large members (those who
educational products as part of its international strategy
are members of SHRM, but not a local chapter).
developed in 2004 to raise awareness of global issues
Dr. Roch Parayre, Senior Fellow in the Mack Center
by HR professionals and to serve HR professionals out-
for the Strategic Management of Innovation at the
side the United States.
Wharton School, assisted with the program and spoke at several of the events. Feedback from the partici-
In 2005, SHRM focused on
pants was outstanding.
implementing its international strategy and experienced an
The SHRM® Learning System continues to be
historic achievement for the
the premier tool for preparation for certification by the
organization—opening its
Human Resource Certification Institute (HRCI), an
first office outside the United States. SHRM is pleased
affiliate of SHRM. The system was redesigned in 2005
to announce the formation of a new subsidiary com-
and includes a supplement specific to the Senior
pany, Strategic Human Resource Management
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India Private Limited (SHRM India for short).
Resources (PHR) and more than
Established October 2005 in Mumbai, India, SHRM
35,200 certified as a Senior
India employs staff to oversee operations.
Professional in Human Resources (SPHR) worldwide.
SHRM is working to build strong relations in China
HRCI expects more than 22,000
also. A delegation of SHRM executive staff and board
professionals to register for one
members traveled to both countries during 2005.
of its three certification exams in 2006.
SHRM continues to build relationships with major universities, government agencies, industry, and other HR
For those preparing for a career in HR, SHRM is working to
associations in China and India with the intent to share
define the minimum curriculum requirements for under-
its HR knowledge and resources and gain knowledge
graduate and graduate programs in HR management. In
of the business trends in each country, for the further
2005, SHRM articulated a strategy to work with the aca-
benefit of SHRM’s U.S.-based membership and in sup-
demic community and developed the SHRM® Human
port of the SHRM mission to serve the HR professional
Resource Curriculum Templates and Guidebook.
and advance the HR profession. SHRM’s student program underwent a complete evalSHRM and HRCI engaged in a market research study
uation in 2005, and the resulting recommendations
to evaluate the opportunities for possible HR certifica-
will be implemented in 2006 and 2007. As part of
tion programs outside the United States and to
our student strategy, SHRM will target both students
understand the opportunities and challenges that may
interested in entering a career in HR and schools
arise as SHRM expands internationally.
invested in the HR profession, providing services to assist students in entering the field. The HRGames
Within the United States, HRCI certification of U.S.-
competition, which prepares students for PHR certifi-
based professionals with global responsibilities continues
cation through a series of game-show-style matches
to grow. Nearly 400 professionals are now certified as
of students from various colleges and universities,
Global Professionals in Human Resources (GPHR),
was also evaluated and determined to be valuable
a certification that was just launched in 2004. As HRCI
in providing students with the knowledge and net-
celebrates its 30th anniversary in 2006, there are nearly
working opportunities needed to find a position in
46,500 people certified as a Professional in Human
human resources. To encourage excellence in academic HR research, the
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Michael R. Losey HR Research Award was presented
The Foundation’s Board of Directors
by the SHRM Foundation to Professor Frank Schmidt in
voted to increase the amount of scholar-
2005. Dr. Schmidt is the Ralph L. Sheets Professor of
ship money awarded to SHRM members
Management and Organization at the University of
in 2005. Three research grants totaling
Iowa. He is known for his research on the develop-
more than $62,000 as well as $63,000
ment and application of validity generalization methods to calibrate the predictive validity of employment procedures. The annual award of $50,000 is made by the SHRM Foundation from the Michael R. Losey endowed research fund.
The SHRM Foundation, which funds research, publications, and education to advance the HR profession, raised more than $485,000 through its 2005 campaign, a 13 percent increase from the previous year. In addition, HRCI donated $1 million to the Foundation. Among the projects undertaken by the Foundation was a DVD, Fueling the Talent Engine— How to Attract and Retain High Performers, a case study of Yahoo! Inc. In addition, the Foundation released the second in its Effective Practice Guidelines series, Selection Assessment Techniques, available free to SHRM members through SHRM Online.
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in scholarships and awards were given by the Foundation in 2005. During the past ten years, the Foundation has funded more than $1 million in research grants for 79 research projects.
2006 Highlights The SHRM 58th Annual Conference & Exposition, to be held June 25–28, in Washington , D.C., will feature General Colin L. Powell, USA (Ret.), and author David McCullough among other keynoters. SHRM will introduce a new program for Chief Human Capital Officers from the federal sector at the conference and expects to launch the HR Career Guide, a tool to help our members assess where they currently are in their careers, where they want to go in the future, and how SHRM can help them achieve their goals. A new certificate program for the public sector will premiere at the Annual Conference & Exposition in conjunction with Harvard Business School Publishing to build the managerial and strategic skills of senior HR leaders in the public sector. In addition, SHRM will introduce a new certificate program, Strategic Management: Emerging Perspectives in HR, in partnership with the Wharton School of the University of Pennsylvania. Harvard Business School Publishing and SHRM hosted six regional events for HR executives in 2006 as part of their Executive HR Network (EHRN). EHRN is an exclusive program for senior HR professionals, developed to bring together forward-looking HR leaders from top organizations to address critical challenges, exchange ideas and solutions, and interact with renowned experts in leadership, strategy, and management. As mentioned, SHRM began efforts in early 2006 to implement its rollout strategy for the minimum curriculum requirements in undergraduate and graduate HR programs. The first stage involved forming an alliance between SHRM and the Association to Advance Collegiate Schools of Business, the primary accrediting body of business schools regarding the newly developed SHRM Human Resource Curriculum Templates and Guidebook. In the summer of 2006, HR Magazine will publish an article introducing HR professionals to the template, and introduction of the curriculum to the academic community is expected in late 2006. Pilot student conferences in the North Central Region and the Southwest Central Region will take place in 2006 and will include enhanced programming of networking opportunities and leadership development opportunities. In addition, all regions will host HRGames, with the winners being sponsored to attend the national competition. The SHRM Foundation will increase its regional scholarships to a total of $50,000 in 2006 for eligible SHRM members pursuing an HR degree or PHR, SPHR, or GPHR certification. In addition, chapters and state councils are eligible to compete for the scholarship monies to fund programs that promote certification. In 2006, the Foundation reintroduced the Barbara Sanchez Scholarship Award, which will give one $1,300 scholarship annually to each of SHRM’s domestic regions. The award is available to SHRM members in the news media field pursuing education or certification. The SHRM Foundation expects to release the third report in its Effective Practice Guidelines series on employee engagement and a fourth DVD on ethics in the workplace.
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build Building recognition for the profession
As an important component of our mission to advance
be the exclusive underwriter for CEO Exchange,
the HR profession, SHRM works to ensure that busi-
a unique business series taped at leading business
ness leaders and policymakers recognize the value of
schools, produced by WTTW-Chicago and broadcast
human resources and smart people practices.
on national public television. Each one-hour program features two dynamic and visionary chief executives
One of the most significant opportunities for SHRM to
in conversation with each other and the host, CNN
accomplish this goal is a project undertaken in 2005 to
senior analyst, Jeff Greenfield. There are 10 shows in
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Putting Values Into Action
the series featuring CEOs from companies such as
SHRM placed high profile advertising in The Wall Street
Comcast, Allstate, Nordstrom, Starbucks, McGraw-
Journal and USA Today in November and December
Hill, Mattel, and Activision,
2005. Both full-page ads were designed to recognize
among others. Chapters and
the significant role that HR professionals play in the
state councils at each taping
workplace, particularly during times of national disaster.
location are invited to attend. The series, which began airing in April 2006,
In addition to paid media opportunities, SHRM contin-
will be broadcast in 21 of the top 25 U.S. markets.
ues to reach millions of readers in targeted publications through non-paid proactive efforts. During 2005,
SHRM continued its sponsorship in 2005 of the
SHRM reached 121 million readers in targeted media
Marketplace Morning Report and All Things
publications such as The Wall Street Journal, The
Considered programs, which air on National
Washington Post, and FORTUNE magazine. Appearing
Public Radio. The underwriting message allowed
in more than 2,800 print stories, SHRM was successful
SHRM to reach more than 13 million listeners
in helping to place important articles that reinforced
with the message of “HR: Leading People, Leading
SHRM’s key messages about the value of strategic
Organizations.” SHRM also worked with Marketplace
human resources to organizational success.
to develop the segment Conversations From The Corner Office, which ties closely with the CEO
In addition, SHRM contributes a regular column in
Exchange series. The radio program features CEOs
two European-based publications, European CEO
and discusses their leadership, business, and people
and Business Finance. The columns are intended to
management strategies.
reach business leaders abroad with SHRM’s key messages about the value of human resources. Among In late 2005, SHRM
the topics covered in 2005 include the importance
sponsored CNBC’s
of workforce culture and labor laws for companies
Executive Leadership
looking to expand to the United States and the need
Awards program, which
for European Union countries, many of which have
included advertising and branding opportunities
compulsory retirement policies, to prepare for the
before, during, and after the event on CNBC and
looming labor shortage by encouraging workers to
in The Wall Street Journal.
postpone retirement.
Our Culture Matters • How We Do Things Matters • What We Do Matters • Our Members Matter • Our People Matter
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SHRM unveiled its new Human
The SHRM速 Speakers Bureau, which manages
Capital Leadership Awards pro-
requests for SHRM staff and volunteer speakers on
gram in November 2005
a variety of topics, was improved in 2005 to facilitate
at its Annual Leadership
the tracking and efficiency of requests using customized
Conference and began accepting
software. By year end, more than 150 speeches by
nominations. The awards recog-
SHRM speakers were arranged through the bureau to
nize HR leaders who serve as
chapters, state councils, and other organizations.
essential partners in developing and executing organizational strategy. Categories recognize strategies and programs by HR departments, as well as an HR leader who has advanced the profession in a significant way.
For the second year, SHRM published the list of the 50 Best Small and Medium Companies to Work For in America, in conjunction with the Great Place to Work速 Institute. The companies were announced to attendees and the press at the SHRM速 Annual Conference & Exposition.
20
2006 Highlights
Building upon its strong relationship with CNBC, SHRM will have an increased presence on CNBC in 2006. This opportunity will include participating in initiatives such as the Human Capital Strategies Billboard, which will feature LINE data monthly as well as other important data; broadcasts of Human Capital Updates, 30-second promotional spots delivering strategic HR messages; SHRM sponsorship of the World Economic Forum proceedings in Davos, Switzerland, a broadcast in January; SHRM’s continued sponsorship of and participation in the Executive Leadership Awards; and a proposed series of Human Capital Roundtables. Winners of the first SHRM Human Capital Leadership Awards will be announced at SHRM’s Strategic HR Conference in the fall of 2006 before the HR leaders in attendance. CNBC, SHRM's media partner, will run promotional spots highlighting the event, and coverage will be detailed in the November issue of HR Magazine. In addition, SHRM will make a press announcement to members of the HR and business press and highlight the winners’ best practices in SHRM materials. The winner of the Human Capital Business Leader of the Year award
21
advocate Advocating public policy
will be invited to the CNBC/Wall Street Journal
American workers and employers while promoting
Executive Leadership Awards in New York City.
flexible and competitive organizations.
As the Society has grown in size and stature over
2005 was an active year in the federal policy realm,
the years, so have its efforts to inform and influence
with SHRM providing testimony on issues before
HR public policy. SHRM works to ensure employ-
Congress and federal agencies eight times, more
ment laws and regulations are fair and balanced for
than double the number the previous year. SHRM
22
Putting Values Into Action
representatives testified on such subjects as the
approximately 1,760 were sent to state-elected offi-
Family and Medical Leave Act, retirement security,
cials, an increase of 600 letters from the previous year.
elder care, and emergency preparedness. Nine ami-
Member advocacy activities were focused on building
cus briefs in court cases on employment and benefit
relationships locally with public policy decision makers
issues were submitted also, twice as many as in
through eight “Day Inside the District” and five
2004, and nine comment submissions were sent
“Day Inside the Beltway” efforts in 2005. In addi-
to regulatory agencies.
tion, SHRM updated its online toolkits that support these efforts.
SHRM began an ambitious effort to review our public policy and legislative statements to ensure they
SHRM initiated a communica-
are current and reflective of our membership and
tion plan in 2005 to provide
the HR profession. Approved by the SHRM Board of
more focused, qualitative
Directors were a revised health care statement and
information to volunteer leaders, members, and staff
two new position statements on employee represen-
on public policy issues and activities. Quarterly confer-
tation rights and corporate campaigns in a collective
ence calls were held with state and chapter legislative
bargaining environment. In addition, SHRM conduct-
leaders on policy issues.
ed member surveys and held focus groups on the
In addition, SHRM developed HR Public Policy Alerts
issues of retirement security, workforce readiness,
on key issues, created a new governmental affairs
and offshoring/outsourcing in each of our regions
program brochure, executed a regional job shadow
and at SHRM conferences.
day, and delivered 62 speeches to SHRM chapters, state conferences, and national events among other
On the state level, SHRM continues to grow our advo-
groups, on HR public policy issues.
cacy efforts. Through our State Affairs program, SHRM partnered with 18 SHRM state councils to
In 2005, SHRM’s organization-wide policy focus
advocate on 29 separate HR public policy issues in
was on health care, workforce readiness, and
2005. Of the more than 14,600 letters written in 2005
offshoring/outsourcing. For each issue, an internal
to elected officials through the HR Voice program,
taskforce was created to facilitate advocacy and
Our Culture Matters • How We Do Things Matters • What We Do Matters • Our Members Matter • Our People Matter
23
educational opportunities, resources, tools, and information for our members. As a result of taskforce recommendations, public policy speeches were developed on each issue for the SHRM Speakers Bureau, and SHRM sponsored a White House Conference on Aging event on the Mature Workforce. In addition, SHRM served as the vice chair of the AARP Foundation’s workforce initiative, sponsored the National Disability Mentoring Day with the U.S. Department of Labor’s Office of Disability Employment Policy, hosted several webcasts and programs on health care and workforce readiness, and released a survey on outsourcing/offshoring at the Strategic HR Conference.
24
2006 Highlights
The second session of the 109th Congress began at the end of January and marked the start of a busy year. HR issues expected to receive attention at the federal and state levels include retirement security, workplace safety, genetic discrimination, immigration, and health care technology, among others. In the first quarter of 2006, SHRM submitted five Supreme Court amicus briefs. SHRM will pilot the use of telephone technology to offer “call-in” days as an additional means of supporting our legislative federal and state advocacy efforts and we will continue our leadership role in the areas of offshoring/outsourcing, retirement security, and workforce readiness throughout 2006. In addition, focus groups and a survey are planned on the issue of immigration. In early March, SHRM president and CEO Susan Meisinger was selected as a delegate by the U.S. Department of Labor at its 2006 National Summit on Retirement Saving. The summit worked to advance the public’s knowledge of private retirement savings, facilitate the development of educational programs on personal savings strategies, and develop recommendations for further research and reforms in the field of private pensions and individual retirement savings.
25
partner Partnering with our volunteers and employees
Our Volunteers As stated in SHRM’s new values statement, our mem-
Launched in 2004, SHRM’s Volunteer Opportunities
bers and our people matter. Without the efforts of our
Center (VOC) captured nearly 1,300 volunteer profiles
tireless volunteers and our committed staff mem-
in 2005. The online applicant tracking system allows
bers, SHRM simply would not exist. SHRM worked
members to review current and open volunteer posi-
on a number of objectives in 2005 to strengthen
tions as well as position descriptions for many of the
these partnerships.
volunteer opportunities within SHRM. Additional
26
Putting Values Into Action
efforts will take place in 2006 to increase awareness of
maintaining their Web sites. As part of the initiative,
the VOC, which is an important tool to help identify
SHRM develops a site template, serves as site host, and
senior HR professionals for potential vacancies on
trains volunteers to update and maintain the site. By the
SHRM’s Special Expertise Panels.
end of the year, 15 Web sites were launched for chapters and state councils, and an additional 12 sites went
Approximately 170 HR professionals volunteer on one
live in early 2006, with a total of 55 anticipated this year.
of SHRM’s Special Expertise Panels, serving as resources
SHRM is helping chapters and state councils offer rich
by identifying and reporting emerging trends in specific
content on their Web sites by providing news feeds of HR
HR topic areas, offering expert advice on matters of
News articles. As of early 2006, a total of 152 chapters
professional significance, and providing guidance on
and 23 state councils were using the feeds.
matters of public policy. SHRM panel members possess advanced HR knowledge in one of 12 panel concentra-
2005 was the second year of SHRM’s two-year pilot
tions. A new Corporate Social Responsibility sub-
program to provide financial support to state councils
panel was created and met for the first time at the
in good standing. The level of support is based on the
SHRM Leadership Conference in November 2005.
number of SHRM members in the state with a minimum of $2,000 and a maximum of $7,000. In 2005,
Another area in which SHRM has made progress
SHRM provided nearly $200,000 to state councils to
collaborating with our chapters is our joint billing
enhance their efforts to support SHRM’s mission at
program. A Web conference in May and a face-to-
the state and local levels.
face meeting in November were designed to increase communication and improve service levels for chap-
To help chapters and state
ters currently in the program. Quarterly conference
councils present the SHRM
calls will be implemented for program participants
Learning System to its mem-
in 2006. SHRM is working to extend the program
bers, SHRM has developed an
to other chapters.
initiative to offer chapters and state councils greatly reduced
With 569 professional chapters of varying sizes and
pricing for instructor and participant kits.
resources, SHRM launched a pilot program in 2005 to assist chapters and state councils with developing and
To support chapter efforts to identify quality speakers,
Our Culture Matters • How We Do Things Matters • What We Do Matters • Our Members Matter • Our People Matter 27
SHRM introduced the Affordable Chapter Speakers
SHRM Foundation, and Diversity.
Program in 2005. Through the program, SHRM pro-
Focused programming and communication continued in
vided template speeches that may be given by chapter
2005 for volunteer leaders. Legislative Affairs CLA vol-
leaders on a variety of HR-related topics such as work-
unteers at the state council level were offered compli-
place trends and measuring the return on investment
mentary registration to the 2005 SHRM Employment
for HR activities. In addition, SHRM created an online
Law & Legislative Conference. State council volun-
resource for chapters to secure top-quality, non-SHRM
teers in the other five CLAs were offered complimentary
speakers at very reasonable rates for chapter meetings
registration to the 2005 Leadership Conference.
and state conferences. The program currently lists more than 65 prospective speakers. Feedback on the
Attendees at the 2005 SHRM® Leadership
creation of the program has been positive.
Conference reported a 97 percent satisfaction rate with the event—two percent higher than the previous
SHRM’s 2005 Membership Advisory Council, which
year. The conference is
acts as an interface between the volunteer leaders and
a vehicle for bringing
the SHRM Board of Directors, was very active in providing
SHRM and our volun-
feedback and direction on such topics as membership
teer leaders together
strategy, the HRGames, and chapter affiliation standards.
to communicate and for SHRM to provide
Because it’s important for chapters and state councils
information and resources to help the volunteers in
to follow a charter document as a guide for their activi-
their roles. The 2005 conference featured specialized
ties and operation, SHRM made a major push in 2005
programming for panel members and volunteer lead-
to ensure each organization has an updated charter
ers related to the six CLAs and on strategic leadership
document. One-hundred percent of state council char-
development, which were among the most popular
ters have been submitted to SHRM for approval, and
sessions offered. Financial support in the form of
97 percent of chapter charters have been submitted.
complimentary housing for panel members and CLA volunteers was provided again this year.
For SHRM state councils, work centered around the six Core Leadership Areas (CLA) of Legislative,
To extend the learning opportunities available at the
College Relations, Workforce Readiness, HRCI,
Leadership Conference, SHRM’s Volunteer Leaders’
28
Webcast Series produced 20 webcasts in its second year
SHRM-AID phone number for members and chapters
and archived on-demand rebroadcasts throughout 2005.
affected by the hurricanes. SHRM established a disaster
The library of webcasts for volunteer leaders in chapters and
response template, which includes locating members
state councils now offers more than 30 archived webcasts.
directly affected and helping them return to work, sharing vital information and resources, and leveraging part-
The 2005 Leadership Conference served also as an
nerships with other organizations that can help serve the
opportunity for SHRM to gather feedback from the
needs of SHRM members and their organizations.
leaders of Super Mega Chapters (those with 1,000 or more members) as we develop a strategy for
Even in years without major disasters, community
collaboration and partnership between SHRM and
service is an important part of life at SHRM. In 2005,
these large chapters in areas such as membership
employees participated in events to benefit the larger
and professional development programs.
community. In May, employees participated once again in the Greater D.C. Cares Annual Servathon,
Presented at the Leadership Conference, the SHRM®
this time cleaning, gardening, and painting the inside and outside of a middle school
Pinnacle Awards recognize outstanding achievements
in Washington, D.C. In June,
in chapter development and contributions to the
SHRM sponsored our Going
advancement of effective human resource manage-
Beyond HR team of employees
ment. In 2005, a new Pinnacle Award was introduced
and their families to participate
to honor outstanding achievements by a state council. In total, eight chapters and two state councils received Pinnacle Awards.
in the Susan G. Komen Race for the Cure to benefit breast cancer awareness and research.
Our Employees
As mentioned previously, SHRM rolled out a new
With a variety of resources, SHRM responded in the
organizational values initiative in 2005 to clarify both
wake of the Asian tsunamis that occurred in December
the organization’s values and the connection between
of 2004 and the hurricanes that hit the south central
those values and the employees’ personal values. All
United States in the summer of 2005. In addition to
employees participated in a one-day values workshop,
employee donation matching, SHRM established
and eight staff volunteers received Facilitator
resources pages on SHRM Online and set up a 1-800-
Certification Training.
29
Pinnacle Awards The Pinnacle Awards honor excellent work accomplished by SHRM’s chapters and state councils to serve the HR professional (STP) and advance the HR profession (ATP). The winning entries described below are examples of the important activities undertaken across the country on behalf of the HR profession.
Garden State Council-SHRM, Inc. (Northeast Region) Title: A Marketing Strategy and Plan to Enhance the Brand and Advance the Profession Working with the Rutgers University MBA Interfunctional Consulting Group, the Garden State Council (GSC) developed a three-to-five-year marketing strategy. The project centered on ATP- and STP-focused activities and included partnering with professional organizations, other state councils and chapters, and at-large members in New Jersey. GSC SHRM worked to improve its Web site to act as an information conduit and marketing tool and increased traffic by 54 percent from the previous year. The council worked to develop a relationship with the leading business publication in the state and jointly sponsored the first Best Places to Work in New Jersey list. Other successes included improved performance in supporting the needs of chapters, as well as increased member participation and chapter membership.
SHRM Texas State Council (Southwest Central Region) Title: Branding the SHRM Texas State Council Despite years of repeated efforts to improve, the Texas State Council (TSC) still faced a problem—few members knew about it or understood the council’s value to their chapter. To rectify the situation, the council launched a new branding campaign with the tagline “Sharpen the HR EDGE: Educating communities, Developing leaders, Growing chapter membership, and Empowering success.” The council forged relationships with local business groups, which proved valuable when council members were sought out as resources in the planning and deployment of relief efforts following Hurricane Katrina. TSC members helped evacuees with resume writing, interviewing, and job counseling, among other services. Included in the council’s success was securing a 2005 proclamation by Texas Gov. Rick Perry designating October as “HR Awareness Month.”
Cleveland SHRM Chapter (North Central Region) Title: Cleveland SHRM Mentoring Program Working with the Northeast Ohio Human Resource Planning Society, the Cleveland SHRM Chapter created a mentoring program to transfer knowledge and skills that enhance the HR profession through advice and advocacy from experienced and interested mentors. Among the goals is to connect up-and-coming HR professionals with
30
more senior leaders, offering opportunities to grow professionally, learn in a non-threatening environment, and network effectively. Since the program’s launch in 2002, a total of 132 professionals have participated with approximately 375 hours of exchange and learning logged during a three-year period.
Dallas Human Resource Management Association (Southwest Central Region) Title: Community Relations With a 2005 theme of “Excellence through Partnerships,” the Dallas Human Resource Management Association developed its community relations project to give back to the community and to find innovative ways of linking community activities to the interests, skills, and experiences of its HR professionals. From the North Texas Food Bank to the Texas Workforce Commission, the chapter contributes time, money, supplies, and professional experience to assist organizations in its community. In 2005, chapter members helped more than 2,000 job applicants in their training sessions. The chapter’s disaster relief campaign resulted in a $10,000 donation to the American Red Cross, and its continued support of “Attitudes and Attire” workshops has helped dozens of women succeed in the workplace.
Morris County SHRM Chapter (Northeast Region) Title: AAA Ponds Through their AAA Ponds program, the Morris County SHRM Chapter of New Jersey developed an experiential vehicle for sixth- and seventh-grade students to gain first-hand knowledge of the various technical and behavioral skills required to be successful in the workplace, while supporting their school’s mission and values. The students, many of whom had special education needs, created their own company and completed a prototype of a new product offering for their target market. The chapter employed the concept of a lawn and garden products company, with the students developing a prototype pond for their customers. The school received a brand new pond. Students developed a variety of skills required of their positions, including research, analysis, computer proficiency, negotiating, creative problem solving, communications, time management, and follow through.
SHRM of Greater Tucson Chapter (Southwest Central Region) Title: The Future Workforce Development Program With the intent to build a capable and committed future workforce, members of the SHRM of Greater Tucson Chapter partnered with area high schools to prepare students for careers, reinforce the connection between classwork and future success in the workplace, and set goals for future opportunities. The Future Workforce
31
Development program enables HR leaders to partner with teachers to provide real-world career preparation for the students. More than 150 students have participated in the training program, gaining valuable insight into the qualities and characteristics they need for future success on the job. The chapter has plans to present the curriculum to at least five additional high schools.
Pittsburgh Human Resources Association (Northeast Region) Title: People Do Matter Recognizing that the Pittsburgh region suffers from outdated perceptions forged during the labor-management conflicts of the steel era, the Pittsburgh Human Resources Association directed a group of business leaders in discussions to determine how best to get the word out that the region’s businesses have world-class human capital strategies. Through the People Do Matter program, the chapter conducted a thorough analysis of the local business community to identify companies that demonstrate HR best practices. Following a rigorous review process, the best practices are promoted through educational sessions and business publications and shared through the chapter’s communications vehicles and educational events. The initiative has influenced the community’s perception of HR by demonstrating how strategic practices leverage human capital to create a competitive advantage.
SHRM Puerto Rico Chapter (Caribbean Atlantic Region) Title: Student Leadership Development Program The Puerto Rico Chapter’s Student Leadership Development Program was designed to develop future HR professionals through initiatives that help them increase their skills and capabilities in order to prepare them for successful careers. The chapter accomplished this mission through five core learning and application areas, including a mentorship program, educational development, student activities (including participation in a student awards competition), a leadership program in which students become part of an executive committee and serve as a liaison between professional members and students, and an annual student conference. As of mid2005, a total of 54 protégés, 22 mentors, and 20 companies had been involved in the program.
32
SHRM Columbus Georgia Area Chapter (Southeast Region) Title: Global HR at Home—SHRM Columbus Area Teaches Russian HR Professionals Through a program that brings Russian and American businesses together to assist Russian entrepreneurs, a group of Russian HR professionals asked to come to Columbus to learn the “American way” of HR management. The Columbus Georgia Area Chapter developed a program of instruction equating to 90 hours of contact time during a three-week period, providing HR information that the Russians could incorporate into their businesses back home. The project included the entire HR community, from HR generalists in small companies to HR vice presidents in large corporations, sharing their knowledge and experience with the Russians. Through the experience, the chapter learned a great deal about Russian HR practices and created an opportunity to advance the profession abroad.
Central Kansas SHRM Chapter (Southwest Central Region) Title: Success Strategies for Our Youth: A Central Kansas SHRM Chapter Workforce Readiness Initiative Lamenting the lack of skills young people had while interviewing or when entering their first jobs, the Central Kansas SHRM Chapter partnered with youth organizations—such as the Boys & Girls Club, schools, and groups organizing career fairs—to help address the need for instruction and guidance. Chapter members met with local youth and made presentations on interviewing etiquette, teamwork, production and assembly, project management, conflict resolution, and employee recognition. Members involved the youth in projects that required hands-on use of these skills. The chapter estimates that it reached approximately 150 area youth, involved at least 20 percent of its members, and helped raise the profile of the chapter and the HR profession with civic and local business leaders.
33
SHRM was busy in 2005 with a number of key HR
SHRM offered staff a broad selection of in-house
initiatives, including the first stages of implementing
training in 2005. Training and development sessions
a new HRIS system as well as the initiation of an
included seminars and workshops on topics such as
overall strategic benefits review. The Society under-
SHRM values, performance management, dealing with
took a compliance review of SHRM’s overall benefits
difficult people, and career pathing. In addition, SHRM
programs and started a comprehensive review of
held a half-day training session on cross-cultural diversi-
current HR policies with the goal to ensure that
ty, intended to provide staff members with the ability,
they are deployed fairly and consistently across
flexibility, and interest to help SHRM advance its
the organization.
international goals.
To ensure that those who are selected to lead and grow the Society are able to meet our high expectations, SHRM developed a more rigorous hiring process in 2005 to refine the recruiting, screening, and assessment processes for selection of new employees at the director level and above. All SHRM staff directors were reviewed at an Executive Team meeting in 2005 with a focus on career development. Special attention was given to retention issues and possible rotation for high-potential directors. SHRM will continue this effort in 2006, expanding it to create development plans for all employees.
Understanding that the professional development and growth of our employees is central to the success of the organization and the excellent service of our members, SHRM once again made training a top priority. One-hundred percent of employees participated in at least one professional development activity in 2005.
34
2006 Highlights Of the 421 individuals indicating an interest in participating on one of SHRM’s Special Expertise Panels, 118 met the qualifications and were reviewed by the Panel Selection Committee. Recommendations for the 2006–2007 panel members were presented in February 2006 to the SHRM Board of Directors Governance Committee for review and approval. Throughout 2006, SHRM will implement changes to the management of the panels and will conduct a survey of panel members to assess the management of the panels and their experiences as panel members. A series of regional town-hall-style meetings is being planned for late 2006 as an opportunity for networking and will feature SHRM President and CEO Susan Meisinger discussing the future direction of SHRM and the HR profession. Internally, SHRM conducted a complete review and enhancement of its performance management system in early 2006, with the addition of coaching and counseling training to enhance the performance appraisal process. The organizational values identified in 2005 will be incorporated into the new performance management system. Work continues on the employee benefits review in 2006, with the intention of crafting a benefits plan that attracts and retains the best and brightest employees. Continually seeking to improve its work environment, SHRM will field another biennial Employee Attitude and Diversity Survey in late 2006.
35
strengthen Strengthening our future
Years of hard work, good decisions, dedicated service
nearly a half century to reach 100,000 members, it has
to our members, and the efforts of countless volun-
taken SHRM just seven years to double that number.
teers have helped to ensure that SHRM is in great
SHRM works hard to attract new members, but the
shape and prepared for its international expansion.
retention of current members is an important measure of a job well done. The organization ended the year
For the first time in its history, SHRM’s membership
with a membership retention rate of more than 80
grew to more than 200,000 in 2005. While it took
percent. With an objective to increase new member
36
Putting Values Into Action
acquisition and existing member retention, SHRM
SHRM undertook a major project in 2005—a
developed brand and membership strategies to deliver
conversion of our member management systems,
a compelling message about how the Society meets
database and data warehouse that will substantially
the needs of all HR professionals. A cross-departmental
enhance service to our members and on our report-
team worked intensively throughout 2005 to review
ing capabilities. A cross-department change control
and revise SHRM’s membership strategy. The key goals
group was created to address problems as they arose.
of the membership strategy are to:
The conversion effort created a few challenges with
•
Serve as a career partner to HR professionals;
data clarity and responsiveness at its implementation,
•
Remain open to all individual members, while
largely invisible to our members, and most of the sig-
focusing on targeted membership groups; and
nificant issues have been resolved.
•
Remain the largest HR association by continuing to achieve significant growth and retention levels
The American Society of Association Executives
because of the value of our offerings.
Center for Association Leadership selected SHRM as one of eight visionary associations in early 2005
The strategy was developed with the input of
due to strong fiscal performance and exceptional
SHRM’s regional councils and the Membership
member retention. In addition, SHRM is proud to
Advisory Council and was approved by the SHRM
have been listed by the U.S. Chamber of Commerce
Board of Directors. Several new programs are being
as one of the 25 largest associations and one of 100
designed to effectively implement the strategic goals.
fastest growing professional associations in the United States.
After fielding several pilot surveys, SHRM established a Member Satisfaction Index to measure overall
In strong financial shape to meet the needs of its
member satisfaction with SHRM and its products and
members, 2006 marks the 16th year SHRM has
services. The organization’s overall rating increased three percentage points—from 76.3 in 2004 to 79.3
increased and improved its member benefits without an increase in membership dues.
in late 2005. SHRM has established our Member Satisfaction Index based on the American Customer Service Index.
Our Culture Matters • How We Do Things Matters • What We Do Matters • Our Members Matter • Our People Matter 37
March 24, 2006
Certification of the Annual Financial Statements of the Society for Human Resource Management
We are the senior-most officials of the Society for Human Resource Management (SHRM) with responsibility for the financial controls and reporting of the Society. We have reviewed the annual Consolidated Financial Statements for the years 2005 and 2004 and based on our knowledge:
The financial statements are accurate and complete, and fairly present the financial condition of the Society for Human Resource Management and its Subsidiary, including the results of operations and cash flows (separately stated as Consolidated Statements of Financial Position, of Activities and Changes in Net Assets, and of Cash Flows); and
The financial statements do not contain any untrue material statements or facts and are not misleading in their presentation.
To assure the accuracy of our certifications, the Society created and maintains an audit process to examine identified risk areas and internal controls. The Audit Committee of the SHRM Board of Directors reviews and authorizes conduct of audit programs on an annual basis. The head of Internal Audit Services presents audit findings and recommendations to the Audit Committee along with quarterly status reports regarding related actions taken by management. Audit reports are also shared with the outside auditors to assist in the preparation of the Consolidated Financial Statements. Based on our review of the results of this process, we are satisfied that the controls and financial disclosure procedures adequately reflect the financial condition of the Society.
We also certify that material changes in financial operations and financial disclosures, if any, are reviewed by the Audit Committee for approval and that incidents of fraud, if any, are also reported to and reviewed by the Audit Committee.
Susan R. Meisinger, SPHR
Henry G. Jackson
Mary K. Ferrari
President & Chief Executive Officer
Chief Financial Officer
Controller
38
Independent Auditor’s Report
To the Board of Directors of the Society for Human Resource Management and Subsidiary
We have audited, in accordance with auditing standards generally accepted in the United States of America, the consolidated statements of financial position of the Society for Human Resource Management and Subsidiary (the Organization) as of December 31, 2005 and 2004, and the related consolidated statements of activities and changes in net assets and cash flows for the years then ended; and in our report dated March 24, 2006, we expressed an unqualified opinion on those consolidated financial statements.
In our opinion, the information set forth in the accompanying condensed consolidated financial statements is fairly stated, in all material respects, in relation to the consolidated financial statements from which it has been derived.
Raffa, P.C. Washington, DC March 24, 2006
39
SOCIETY FOR HUMAN RESOURCE MANAGEMENT AND SUBSIDIARY CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31,
2005
2004
$4,581,018 1,494,274
$6,572,522 1,756,155
3,069,561 150,347 — 5,122,435 1,504,507
2,143,178 136,514 87,745 3,467,425 1,088,990
Total Current Assets
15,922,142
15,252,529
Long-term investments Prepaid pension cost Property and equipment Buildings and building improvements Land Computer software Computer equipment Furniture and equipment Automobiles
103,804,633 636,953
88,856,919 1,270,564
29,791,640 5,883,311 6,327,308 5,555,768 5,241,496 60,374
29,619,561 5,883,311 6,498,539 4,721,280 4,720,797 60,374
52,859,897 (16,912,723) 35,947,174
51,503,862 (15,515,592) 35,988,270
$156,310,902
$141,368,282
ASSETS Current Assets Cash and cash equivalents Short-term investments Accounts receivable, net of allowance for doubtful accounts of $166,496 and $224,798 in 2005 and 2004, respectively Due from affiliates Income tax receivables Prepaid expenses and deposits Inventory
Gross property and equipment Less accumulated depreciation and amortization Net property and equipment
TOTAL ASSETS
Notes to these statements are located at SHRM Online at www.shrm.org/annual/
40
SOCIETY FOR HUMAN RESOURCE MANAGEMENT AND SUBSIDIARY CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - CONTINUED
December 31,
2005
2004
$9,177,610 83,127 16,350,655 2,827,409 540,235 71,291 519,096
$8,383,998 — 16,685,407 3,098,319 461,377 73,185 481,811
29,569,423
29,184,097
1,438,931 — 7,727,466
1,158,789 71,291 8,249,333
Total Liabilities
38,735,820
38,663,510
Net Assets Unrestricted
117,575,082
102,704,772
117,575,082
102,704,772
$156,310,902
$141,368,282
LIABILITIES AND NET ASSETS Current Liabilities Accounts payable and accrued expenses Income tax payable Deferred membership dues Deferred conference and seminar fees Deferred subscriptions and other Capital leases payable, current portion Note payable, current portion
Total Current Liabilities Accrued benefit cost Capital leases payable, net of current portion Note payable, net of current portion
Total Net Assets
TOTAL LIABILITIES AND NET ASSETS
Notes to these statements are located at SHRM Online at www.shrm.org/annual/
41
SOCIETY FOR HUMAN RESOURCE MANAGEMENT AND SUBSIDIARY CONSOLIDATED STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31,
2005
2004
Revenue and Support Membership dues Publications, advertising and royalties Annual conference Seminars and educational programs Other conferences Other
$29,334,674 22,433,190 15,927,067 12,999,823 3,903,808 3,679,024
$27,443,352 20,321,336 13,936,401 11,559,754 3,367,461 3,349,509
TOTAL REVENUE AND SUPPORT
88,277,586
79,977,813
16,078,283 12,091,252 9,129,003 5,873,054 4,065,827
15,571,609 9,236,099 7,391,409 5,248,871 3,273,688
47,237,419
40,721,676
17,404,631 12,908,562
17,260,175 11,307,425
30,313,193
28,567,600
TOTAL EXPENSES
77,550,612
69,289,276
Change in net assets from operations
10,726,974
10,688,537
7,247,136 (3,103,800)
7,957,324 (2,196,867)
14,870,310
16,448,994
102,704,772
86,255,778
$117,575,082
$102,704,772
EXPENSES Program Services Publications Seminars and educational programs Government and public affairs Annual conference Other conferences
Total Program Services Supporting Services Management and general Membership services
Total Supporting Services
Non-operating Activities Investment income Provision for income tax expense
CHANGE IN NET ASSETS NET ASSETS, BEGINNING OF YEAR
NET ASSETS, END OF YEAR
Notes to these statements are located at SHRM Online at www.shrm.org/annual/
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SOCIETY FOR HUMAN RESOURCE MANAGEMENT AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31,
2005
2004
$14,870,310
$16,448,994
Adjustments to reconcile change in net assets to net cash provided by operating activities: Provision for doubtful accounts receivable Depreciation and amortization Loss on disposition of property and equipment Unrealized gain on investments Realized gain on investments
58,302 3,145,736 — (971,508) (871,645)
194,447 2,650,955 1,910 (5,191,772) (1,148)
Changes in assets and liabilities: Accounts receivable Due from affiliates Income tax receivables Prepaid expenses and deposits Inventory Prepaid pension cost Accounts payable and accrued expenses Due to affiliates Income tax payable Deferred membership dues Deferred conference and seminar fees Deferred subscriptions and other Accrued benefit cost
(984,685) (13,833) 87,745 (1,655,010) (415,517) 633,611 793,612 — 83,127 (334,752) (270,910) 78,858 280,142
(292,513) (34,902) (60,033) (352,971) (433,875) 223,949 2,201,170 (69,220) — 683,690 754,979 (292,016) 182,292
14,513,583
16,613,936
(3,104,640) (99,458,038) 86,615,358
(2,889,510) (20,037,661) 2,693,000
(15,947,320)
(20,234,171)
(484,582) (73,185)
(452,362) (67,499)
(557,767)
(519,861)
NET DECREASE IN CASH AND CASH EQUIVALENTS
(1,991,504)
(4,140,096)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
6,572,522
10,712,618
$4,581,018
$6,572,522
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES Change in Net Assets
NET CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment Purchases of investments Proceeds from the sale of investments
NET CASH USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on note payable Principal payments on capital lease obligations
NET CASH USED IN FINANCING ACTIVITIES
CASH AND CASH EQUIVALENTS, END OF YEAR Notes to these statements are located at SHRM Online at www.shrm.org/annual/
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