Testing Times For HR
Now, more than ever, the HR function will be tested and now more than ever our profession will need to move quickly to meet the challenges unfolding before us (see this great HBR article about the challenges HR has faced over the decades).
Conversations are fast moving from “Values” to “Value”, from "EQ" to "EVA" and from ”employee engagement” to “headcount”. The way in which we respond to this will either cement our place in relevant business dialogue or consign us to the growing pile of disposables.
Naturally, we believe a continued focus on employer/employee relationships is important but so too is the understanding of hard metrics – (Profits, EBIT, ROI etc). More than ever practitioners need to know the dollar and exponential effect of each HR lever available.
As HR practitioners make sure you:
Understand the company’s current financial situation.
You have built “Zero based” organisation restructures – if you built the organisation again from the ground up, what opportunities emerge?
Review the way in which functions are resourced. Can it be done in a more effective/cost effective way? Can outsourcing and strategic alliances help?
“Stress test” the quality of the performance management system
Are everyone’s efforts really and absolutely aligned to the key priorities?
Are goals being reviewed regularly?
Are performance conversations happening all the time?
Review IR compliance – the ombudsman is currently recovering huge dollars across the country – your business could be at significant risk.