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Why do 74% of organizations see simplification as a current priority?

 

“Simplification is an emerging theme; HR is part of the problem.”

- Deloitte Consulting 2015 Human Capital report

I agree with both the question and the answer. Simplicity is just not in the DNA of HR.

Systems should solve problems - not just create complications

- People Profits Principle 54

Operations, Sales, or Marketing people are constantly reviewing options to be faster, more efficient and effective – they are RESULTS driven. They have to be as they are judged directly on very objective results. When they meet one goal – the next goal is higher.

What are the documented objective goals of your HR people? In most cases, the goals are at best vague and not measurable. Then how can it be managed? HR departments lack an overall strategy and few sub-strategies and tactics for the 7 parts of Human Capital. Without these strategies and tactics the activities being done will by nature be more complicated and the results lacking.

HR is all about tons of paper, obsolete processes and activity. What would happen if we held them as accountable to objective results as we did SALES?

  1. What is the timetable to solve our skills gap?
  2. What is our engagement and how can we increase it?
  3. What is our cost and duration to hire?
  4. What is our turnover and when and how will it go down significantly?
  5. Why do we hire 110-120% of our open positions?
    1. New hires not showing up or quitting quickly? 

The list goes on and on? (What would be on your list?)

If you were to solve these problems, your life would get seriously simpler

and more profitable

Look at that last line again, think of the money represented above. How much money would you save and make if you affected all five line items by JUST 10%? Some of your companies would literally save $Millions. Some of your companies would save $10s of thousands – which might mean your net income just doubled.

Case study: A manufacturing company saw an increase of $1.7 million or 30.4% in their net income each year by achieving results in just two of the above list. Turnover, cost of recruiting and selecting, costly employee benefits among many others are very expensive. What makes it worse is that many times we don’t know if we are hitting the targets because we never set them. 

People Profits mission is to elevate your HR department to where you need them to be. The strategic driver of your greatest asset!! We do this by building a comprehensive Human Capital Strategy and Plan including all 7 elements of HR with no conflicts and focused on business and financial principles.

Profits and Growth through Human Capital Strategy and Systems

See HR differently

Clark Ingram, MBA, SPHR, CEBS, CPCU is the principal of People Profits, www.PeopleProfits.com ©2015 People Profits, LLC

#engagement #turnover #profit