Every day I open the newspaper in the morning or turn on the evening news and as of late the same stories are on. The GOP has come out with these lists of programs that need to be cut in order to solve the deficit problem faced by this country. I am not negating that there is a spending problem in this country. What I am disputing is the tendency from either side of the aisle when talking about making cuts in spending they reduce everything to the level of a commodity. This can in the long run lead to dramatic changes in our society.
Take the budget debate and convert it to our organizations and their human capital assets. When we find that our organizations are declining for what ever reason the first tendency is to suggest that we cut expenses by cutting overhead. So the first thing that tends to be cut are the trainers and human resource professionals. Usually there are dire results that come as a result. Take the corporate mobility industry as a good example. In 1955 when the industry began, it was done so in response to a real need on the part of individuals who were being moved by their organizations. When we got into the 1990's and early 21st Century, the deliver of relocation services began to be treated by the procurement side of the company as a commodity. The result was that service levels dropped. The needs of the human capital assets were ignored. The level of engagement on the part of employees declined. Instead of being a real live person, the employee became just another number.
Now as we work our way through the budget deficits at the federal, state and organizational level we are headed towards treating our human capital assets as commodities instead of being viable assets of the organization. I have a friend who was the CHO of an organization who was directly told that if was better financially to let him go then to continue to operate as they have been, James Womack in his book Lean Thinking states that unless the organization is on the verge of going out of business there is no reason to lay anyone off. There are sufficient non-value added steps to our processes that you can find the funds to avoid treating your human capital as commodities,
As a member of the C-suite of your organization you have the responsibility to manage the workforce of your organization and this includes respecting and appreciating the worth your human capital assets bring to your organization. It is their creative power which enhances your organization in the marketplace. It is their creative power which provides you with the innovation to be the best in your industry. It is their creative power which makes your organization attractive to the best talent in the world.
As corporate executives you determine the legacy that your organization leaves in the global economy. Are you leaving the legacy which says your human capital is just another number on your balance sheet? Are you telling the available talent that you really want them in your organization but we think that your contribution is limited because you are a commodity? The choice is yours to determine just how much your human capital assets are worth to your organization. The choice is your to determine whether they are a vital part of your organization or just something that can be swept under the rug when times get tough.
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