Friday, October 5, 2012

Solving the Mystery of Two HRs Part 2


My contention is that there are two HRs, but let me try to explain. There are a number of sub functions that are frequently associated with the HR function. For example, Recruiting, EmployeeBenefits, Compensation, Recordkeeping, Training, Payroll, Safety, Workers Compensation, and the like. Most people in HR are busy working at tasks associated with these sub functions.

This work may be needed to be done but such tasks generally do not add value to the business. For example, processing I9 documents correctly does not add value. The work may be needed, since the company does not want to risk a fine if they are out of compliance, but even if the work is done perfectly, it is difficult to demonstrate that I9 administrative work contributes to the success of the business. However, maybe we should clarify what we mean by contributions.  

You may be familiar with the phrase better, faster, cheaper. These words describe in a concise fashion, what comprises business value. However, it is not enough for a task to be performed better, faster, or cheaper. The improvement must be appreciated by senior management for it to be a contributor to success. So if HR finds a way to keep records more accurately or payroll figures out how to calculate vacation balances faster I doubt if senior management would give these improvements much attention since they do not significantly contribute business value. And besides, aren’t all employees expected to improve how they perform their job as a matter of course?

Now I think you may be beginning to grasp the problem. Much of what HR does or is involved in today is administratively oriented or support work. These activities tend not to have a direct correlation to the success of the business.  So, no matter how well they are performed, the business value is not well recognized. As a result, the HR staff, who may be good and loyal employees, are not perceived as business contributors. Furthermore, the HR department is considered a cost center that does not add significant value to the business.

Forgive me, but a comparison of the traditional HR function to that of a receptionist can be made. Both HR and the receptionist needs to be, helpful and efficient. However, does any business reward a receptionist as if they offer significant business value?

Next up, Further advances on the Mystery of Two HRs and how HR can add value and be recognized for doing so.

From Michael Salisbury with the Human Resource Alliance (HRA) at www.hralliance.biz

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