Tuesday, February 18, 2014

We may never agree post 4 of ?

The dialog continues from my previous post

---------------5.Original Message---------------

I guess we are just not going to agree on this. Here are a few points in response to your note: If HR's contribution is Cost Controls then it will not have a seat at the table. You sit at the table if you can have global strategic impact.

Strategic HR impact is primarily in Talent Management. Having the right people in the right seats at the right time. That is how you add value. If you can deliver this you get a seat.

HR should not have a say on head count. Operations people need to be able to determine the optimal staffing. HR can offer counsel, guidance and advice but not own the head count. HR can find the best candidates for the positions and that is how they earn their seat.

Broker commissions, self insurance are fine ways to control costs but as you know they are only a very small part of the total cost of providing the benefits. And once saved, they are one time savings.

You went on to discuss increasing sales. Companies do not just ask for higher sales from their staff. What they want is increasing net profits. The targets for the increased sales are determined in advance with the factors you enumerated taken into account. Bonus are paid based on selling high net value products not based on the $ volume of sales. So yes the sales staff does have control over this by picking the right targets to sell to and not selling products merely to get the sales dollar volume up.

To get the seat at the table HR has to provide Strategic improvements. Better staff, better assignments for high potentials, better HRIS systems (like implementing cloud based systems) etc. Think how HR can improve the daily life for each employee, each executive and you will be asked to join the senior management. Bring solutions to these kinds of problems not merely cost controls.

Regards,

 
 
 
 
 
 
 
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