 Top 8 ways to get More Productivity 2
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Without Data You're Sure To Be "Over Plan" In Opinions
Since HR is a business function, business owners must ask, "Just what is the value of this function to the total enterprise?" "Where do poeple make a difference in the organizations ability to achieve starategic or financial outcomes?"
Traditionally, HR, like accounting, IT and other general and administrative units, has been treated as an overhead expense.
The premise is that all overhead units shoud be managed as economically as possible.
The value accruing from their operations has been viewed as a necessity or nice thing to have.
In the case of HR the alleged value is keeping people happy. This translates very loosely into retention and productivity.
However beyond turnover rates and meeting the budget, there has been little, if any, assessment of HR's performance. Turn Over Ratio = (W2s-#EEs at end of yr)/# of EEs at end of year.
For a growing number of firms this is no longer a viable position.
In the pursuit of profit ability and competitive advantage serious management is looking at all functions for a return on investment. Simply operating within the budget is no longer sufficient.
HR outsourcing firms have proved their value. The question of keeping HR or outsourcing most of HR is increasingly showing up on the agenda.
There is no single right answer to the question of outsourcing. Its value has to be judged at the time for each situation.
The point is this: what is the best way to spend money on HR services?
That is a question that in-house HR delivery systems have to be prepared to answer, and the answer will have to come in terms of a return on investment versus "keeping people happy".
ABC's
- Where would improvement have the biggest impact?
- Where are the bottlenecks in performance? Are some individual skills bottlenecks to performance?
- What are the data that you need?
- And is there a benchmark available you can use?
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In the meantime.... you have probably discovered if you have employees you'll most likely have dysfunction. If you want answers to make your company:
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