Risk versus reward - getting HR to take risks to increase the reward
Business is a constant balancing of Risk and Reward
HR is taught to minimize all risk at all costs - which inherently reduces reward
HR needs a better understanding of the Risk / Reward balance. So they will:
- Come up with new ways to do things that increase reward
- Offer ways to solve and mitigate problems that employ risk
- Look beyond compliance issues for reward opportunities
- Use Employee Relation times to discover Risk / Reward possibilities
Incredible VALUE can be found when HR goes beyond compliance
People Profits case study: Every one of the major achievements that I have had in HR involved a degree of risk. In some cases, it was just a matter of trying a new compensation plan. Would the employees understand and accept it? Would the supervisors buy into and support it with their employees? Would the new plan actually do what we wanted it to? Would there be an unseen flaw or unintended consequences? The Risk Reward Balance exists in HR just like all other functions. Unfortunately, HR professionals are taught to accept no risk; therefore the reward is never realized.
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