We may never agree, post 3 of ?

The dialog continues from my previous post

4. From: msalisbury001
Sent: Monday, February 03, 2014 7:12 PM
Subject: HR Department Alignment to PSFIN Department?

If you're not going to at least share the responsibility then how can you be credited for making a contribution? Look at it this way,

If HR wants a seat at the table they should have some say in the head count. HR should be the lead in designing the compensation plan, how much is available and how it is distributed. Also, HR has significant control over benefit cost even after the benefit plan design has been decided upon. For example, is the broker paid a commission or a flat fee. If it is a commission there is an immediate opportunity to reduce the annual contribution to the Defined Benefit Plan. And for larger firms, there are also opportunities for cost control associated with self insuring the benefit program.

Additionally there is the positive financial impact of an effective wellness program, which does offer the prospect of control over benefit claims expense. Also consider a safety plan that reduces accidents and workers compensation costs. You would be surprised at how much money HR can save the firm by taking these factors into account. And if HR is not doing a good job of encouraging employees to sign up for and maxing out on 401(k) contributions, it is not doing a good job of saving payroll taxes for both the employees and the employer.

If HR is not able to contribute to ongoing cost containment then what is the value of having them around after the programs are designed and implemented? Consider the sales leader. If plans call for an increase in sales orders, an increase in market share, an increase in sales pricing, and an increase in profits, do they have much control over these factors. Don't they have to combat a series of forces that are working against them like the completion, unexpended changes in demand, conflicting market trends, unexpected consumer alternatives, etc. Yet in spite of these obstacles that interfere with control, the sales leader accepts the responsibility and moves forward. So too can HR.

I encourage you to give some thought to creating an environment where HR, Finance, and other departments work together to establish and achieve mutually shared objectives rather than take the position that someone else should set the objectives and there is simply a hand off for HR to implement