Credible & Business Focused HR
The next and last topic in this blog series is the ever so-important and increasingly critical role of HR in helping articulate the people-side of business outcomes.
HR must be business focused, and innovative. Forward looking HR executives are starting to connect their HR Programs to business outcomes - like the Vacancy Opportunity Dashboard example (see below) which drives insight into the financial impact of on-time recruitment.
At press time for this blog (September 2015), we are hot on the heels of a July 2015 front cover (yes, ENTIRE front cover) of Harvard Business Review which sensationally gives the directive “It’s time to blow up HR and build something new” (incidentally the graphic designer who crafted the Inspector Clouseau like bomb – or is it “berm”? – for the HBR cover apparently has a lighter sense of humour than some of the participants in LinkedIn HR group discussions on this subject).
Regardless of where you sit on this issue, and the details which lie within the HBR article aren’t nearly as controversial as the cover headline, it’s a cry for HR to crank up its business savvy. It's time to build the people layer of any business capability in a timely and strategic way – and for HR to simply become client value focused.
For this to occur, the business must demand it, finance must support and enable it, and HR should be given some latitude and be allowed to learn – because this sometimes doesn’t come naturally.
The Vacancy Opportunity Dashboard helps with this. It’s used by a CHRO or a Talent Acquisition/Recruitment lead to understand where to place the most focus, and possibly select a different Talent Acquisition Strategy, by calculating the revenue loss/opportunity cost/tangible business impact when a specific role goes unfilled.
In the example provided in the dashboard, the data tells us there’s a $2M increase in revenue by having consistent, and on-time filling of Sales positions, at for example 50 days – but it also tells us that all Sales roles are NOT equal – with the Sales Representative role netting $0.8M in additional revenue alone.
Incidentally, this doesn’t include the cost of turnover if that’s part of your specific scenario, or the revenue loss in the first 50 days that the position is vacant and being filled through the recruitment channels. Including these factors can drive the opportunity cost 2 or 3 times higher in some instances.
Lastly, when an Executive team finds juicy business issues – like the $2.0M sales opportunity, the team will likely want to dive in and engage in a way that makes sense to create deep insight into the issue, and create alignment around the best way forward. This might look like an in-depth analysis into Talent Acquisition which may include Quality of Hire by Recruiter or best ROI by source of hire.
It might mean launching a Stay Survey for the Sales Organization at-large, or engaging in highly focused discussion groups with your staff, centred on fact-based hypotheses.
When it comes to people and talent, Executive’s need to be aware of what’s going on today, this week and this month, not last year or quarter – so resources and focus can be deployed to where it’s needed most.
Finally, the CEO and the Executive team are charged with delivering the organization’s business plan – and in many companies that ultimately translates to its talent.
And with fact-based, business focused insight into your talent, you can better manage the risk of not delivering on that plan.
We see great things when organizations unlock the potential of their workforce data.
If you’d like to see a 6 minute video which covers many of the details from this 4 Part Blog series, click here.
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