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A Look Back at All That Happened in 2008

Written by: Jennifer Loftus

Article Overview: 2008 was a very busy year. Astronology takes a look at the major happenings of 2008 and their implications on the human resource industry.

A Look Back at All That Happened in 2008

2008 was a memorable year for human resource professionals. There were far more challenging events in 2008 than in many prior years. The events of 2008 have also altered numerous human resource strategies for years to come. Below is a summary of some of the key events we’ll be discussing for years to come.

U.S. Presidential Election
We elected Barack Obama, an African American, as President. Hillary Clinton, a woman, ran against him for the Democratic nomination. Sarah Palin, another woman, was on the Republican slate as the Vice Presidential candidate. These events raised diversity awareness throughout the country. Along with these accomplishments came increased demands on human resource professionals to develop systems and programs to support and encourage diversity throughout their organizations.

Financial Service Organizations Bailout
The U.S. Government provided AIG with about $150 billion to rescue it from collapsing. The reasons for AIG’s decline are complex. There were allegations of wrong-doing. Our economy survived Enron. Large companies failed before. This was different. The AIG event triggered a widespread loss of consumer, investor, and employee confidence. Human resource professionals experienced increased scrutiny in administering all forms of executive compensation and challenges from employees who wanted more open disclosure on compensation decisions.

Votes on Gay Marriage
Californians first allowed same sex marriages in June then voted to outlaw it in November. Connecticut legalized gay marriage. Human resource professionals were left, in many cases, unsure as to how to approach issues of domestic partnership not knowing which way state regulations would turn.

Smartphone Sales Skyrocket
2008 U.S. sales of Smartphones, such as BlackBerries, grew at a rate of more than 70% each quarter over the corresponding quarter in 2007. Comparable global growth rates were in the range of 10-20% –huge figures in a stagnant economy. More people are more connected than ever. Human Resource professionals are challenged more and more to keep pace with the rapidly changing technological landscape. With changing technology come demands from executives and employees for HR to develop organization-wide systems for more rapid disbursement of information and analysis of data.

Governmental Leadership Collapse
NY Governor Eliot Spitzer resigned after admitting to being involved with a prostitute. Illinois Governor Rod Blagojevich was accused of selling Barack Obama’s senate seat. Detroit’s mayor, Kwame Kilpatrick, was indicted on eight felony charges, including perjury, obstruction of justice, conspiracy to obstruct justice, and misconduct in office because of an affair. Secretary of Housing and Urban Development Alphonso Jackson resigned as federal investigators looked into accusations that he steered housing contracts to friends. Human Resource professionals were challenged to ensure policies and procedures governing ethical behavior in the workplace were in place and enforced.

Housing Bubble Bursts While Gas Prices Fluctuate Wildly
Unprecedented rise in housing prices. Unqualified borrowers. Subprime mortgages. Credit crunch. Foreclosures. Economic crisis. Gas prices soar to $4.00 per gallon then drop below $2.00. Human Resource professionals were challenged to set 2008 and 2009 compensation budgets that were both responsible to the organization’s ability to pay and employees’ needs to make ends meet. At one point in 2008 many organizations considered increasing current compensation budgets and to develop alternative travel support for employees. Others were investigating special financial counseling programs to help employees survive personal housing challenges. We’ll be exploring the housing issue in more depth in an up-coming issue of Astronology.

In With Marijuana, Out with Trans Fats
Michigan legalizes medicinal marijuana. Massachusetts decriminalizes marijuana. New York City California bans trans fats. Human Resource professionals had to review their policies on substance abuse and wellness to ensure compliance and to meet increasing employee demands for healthier workplace environments.

Wall Street Bonuses
Executive pay was all over the news. All of a sudden, everyone is a compensation expert. Now that we’re using our tax money to save some of these companies, the government is taking an interest too. Again, human resources, especially compensation professionals, is under increased pressure to ensure all compensation programs have been designed to be reasonable, equitable, and ethical.

Unemployment Rate Highest in 26 Years
The unemployment rate is heading above 7 percent, and rising steadily as of this writing. The rate is higher than it’s been since 1982. While the pool of potential employees has grown, Human Resource professionals are challenged to ensure key talent is retained and motivated, especially when the short-term financial gains of layoffs may appear lucrative to some executives.

These are just some of the key events of 2008 that shaped 2009’s human resources strategies. Human Resources has taken a critical role in both supporting and shaping the ever-changing employer-employee landscape. Clearly, retention and rewards came to the forefront in 2008 while the go-go recruitment strategies of past years took a back seat. 2009 will undoubtedly prove to be an interesting year, one where those HR professionals and organizations with both short- and long-term strategies that balance conflicting needs will most likely enjoy the greatest success.

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Article Tags: aig, bailout, barack obama, compensation decisions, democratic nomination, diversity awareness, domestic partnership, employee confidence, executive compensation, financial service organizations, gay marriage, global growth, hillary clinton, human resource professionals, human resource strategies, open disclosure, president hillary, s sales, same sex marriages, stagnant economy



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