Slice Less, Protect More

As a Human Resources Professional, the financials of your company likely company rarely affect the outcome of an average day. Of course, if a layoff or a hiring freeze, or maybe a hiring influx might make an HR professional say things are “good or “bad” financially for the company. Over the course of a year the actual financials are not necessarily the key focus of anyone in the Human Resources department. However, recently we conducted a survey of HR professionals that garnered some interesting facts and figures concerning HR and company financials and why they should be important to everyone in the Human Resources department.

 

One of the biggest issues that we find when entering a company to teach financial concepts, is the deeply siloed work atmosphere that permeates the very walls of the building. Departmentalized departments even in “open office” bull pen new aged societies of work. Functioning as a team is more a “banner on the wall” HR ideal than a reality. People are people and they tend to find themselves stuck in a method of thinking that “this department only does A, and B.” The unfortunate truth is that only doing A and B means they likely don’t consider the impact on C and D and most definitely not Z.

 

CEO DESIRE

 

When CEO’s were asked in a 2015 CEO Challenge Survey what their biggest challenge would be in the next 3-5 years, they ranked finding and developing Human Capital as their number one concern. However, when we ask HR professionals if they are familiar with the company financials and their professional impact on the bottom line, almost 87% responded that they do not understand them.

 

This goes back to siloed departmentalized thinking that can cripple a company. To think that a purchasing department didn’t care how the inventory counts or warehouse performed would be ludicrous. These two departments should be one in the same, hand in hand working in unison together to create a lean mean inventory machine. This is the same concept for what is happening at the CEO level and what is happening at the HR level.

 

There is no way that a CEO on his or her own can effectively manage to reduce the cost of human capital on their own. Can one slice down the columns of hierarchy and trim the fat here and there slamming doors shut and creating an air of fear and intimidation by paycheck. Yes. Sure. Perfect. Happens all the time. That is the easy way. That is the old way, the tired and weary way of CEO’s and heads of HR everywhere.

 

EDUCATION

 

However, there is a better way. Education of a different sort that creates a pathway to understanding in a way that everyone can learn and deeply understand the impact of the slicing and dicing lean thinking ways of the past. If the HR department truly understood the net profit impact of good versus bad hires, the cultural pain and suffering of slicing and dicing, what might change?

 

The idea in both practice and results is to update the way HR looks at hiring. If taking an extra week to find the exact right person for the job creates a less impactful hole in the organization over the span of 10 years instead of focusing on the cost of one week of empty-desk-syndrome, doesn’t this make more sense? The National Business Research Institute backs this idea up in a study that showed that 66% of employers experienced negative effects of bad hires and that is not even a statistic on the effect on the CEO’s desire to reduce the impact of human capital management.

 

PROTECTION

 

If you can draw a line through this thought process, you will see clearly that it is imperative for HR professionals to truly understand the actual impact of hiring and human capital management on their company. Not only will the thrill of making good hires be increased, but imagine the calmness of leaving a desk empty just a few more moments be ok, not to mention the peace of knowing your department is working in harmony with other departments. Soon everything will run smoothly. No more running forward out of fear, less slicing and dicing, money will be spent appropriately and birds may even sing at your window. At the end of the day you will be at the very least an HR hero to your CEO.

 

Talent Reality 101 is a new gamified version of company financials that educates the HR professional, and everyone else in a company, about the actual cost of their role. In 2017 the time has come to create a new way to think about work, education, culture, business, and departmentalization.

Find out more contact Bill Albert: bill.albert@businessmethodiologies.com

 

 

 

This article graciously references the following:

 

http://www.gallup.com/businessjournal/181700/strengthening-meet-global-business-demands.aspx

 

https://www.conference-board.org/ceo-challenge2015/

 

Infographic: The Cost of a Bad Hire

By: Daynah – DirectEffective.com & Bill Albert BMIGC

Get your own blog at: www.directeffective.com        contact@directeffective.com

Posted 4th January by TalentReality101

 

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