In part 1 of this series we asked the question about what is the HR role- Is it transactional or transformational in nature. In this second installment we are going to expand on that question.
We present a 45 minute program entitled In Plain Sight: Hidden Wastes that Affect the Viability of Your HR Organization" in which we begin by posing to the audience a scenario to be worked through. The question we pose is that you are sitting at your desk and you receive the latest financials for the HR department, what do you do with the numbers?
Our suggestion is that the way you respond to the question will determine whether you are part of problem or are part of the solution. Let me explain more in detail. First of all the majority of HR professionals tell me they never see these types of reports. That is a problem in itself which I will touch on later. Of those who do see the reports, the most common response is that we review the numbers.Review the numbers for what? Are you checking that the numbers add up? Are you verifying that the computer did not err and assign the wrong numbers to the HR account? We would suggest that if this is all you are doing, then stop looking at the financials. Go down to the local business supply store and purchase a wall calendar and begin to cross off each day with a big red X. Incidentally you are counting off the number of days until you do not have a position. If this is the route you take then I am sorry but you are part of the problem.
On the other hand, if you take the time to work through the numbers to see what they are telling you then you are part of the solution. We need to ask ourselves why we are getting the results we are. In example if you see that the numbers are telling you that the cost of payroll has escalated over the previous period . do we understand why? Are the numbers up due to an increase turnover rate which should drive us to ask why are so many FTE's choosing to leave our employment? Are the benefit costs escalating because we have allowed to many exception to benefit guidelines increasing our costs?
In every situation such as these you should make it a priority to challenge every decision with a minimum of 5 why's. Why do we do this? BY the time you get to the last of the five why's you will understand what the problem is. With knowledge and understanding of the problem we can begin to work on the solutions, thus transforming the human resource function.
HR Strategic Focus Part 3: Voice of the Customer
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