2020: Do You Even Need Human Resources?


Well, do you need a great team to win?

Depositphotos_19407685_l-2015Why don’t university presidents regularly assume an additional position like being Head Coach of the University’s football team? How hard can it be? OK, if not the President taking on this role, how about the Dean of students? Or the trainer? The Head Trustee? The Band Leader?

It would save money… Big time.

Wait a minute. Everybody demands winning teams.  Winning at football helps a University make millions with an ROI. But to pull off a winning football program requires a master with different competences and a unique knowledge of football. College Presidents are probably the last choice if we are talking about facilitating football outcomes.  Further, since they have other primary university duties, assuming the position of football coach will encroach on their ability to perform key activities.

Does your Company even need HR?

So why do leaders try to do the equivalent multi-role football mistake in their businesses every day?  So many owners, assistants, CFO’s etc. additionally perform the unique role of HR for their business on top of their other job(s). They take on the facilitation of business and human outcomes in areas that require special HR talents and professional knowledge for best results. Even with no formal training, they assume internally sourcing is the best process to have a winning team. And they are quite satisfied it saves money… big time.

Is there an advantage of having HR?

Whether outsourced or done in a large department or even a department of one, a professional HR role recognizes the outside world offers a diverse choice for a workforce. They range from energized employees, to No-Shows, Drama Queens, Snowflakes, Ladder climbers, Busy bodies, Tattletales, Know-it-alls, Bullies, Whiners, and Quitters. And all HR has to do is to decipher these groups, recruit and hire the very best of them and make them perform at a high level by whipping them into a unified, happy, highly trained, crack team of professionals. The absolute best team. A National Champion! And professional HR fixes things done imperfectly or unsafely so you don’t get visits from a dozen or so regulatory agencies. It also finishes off the mountain of paperwork required of you, simply due to the fact you have employees. Does having the best team create an advantage in business? You bet.

Is a professional HR function worthwhile updating or investigating further?  Some indicators that might offer you pause…

  • The total cost of onboarding, HR, Admin taxes, benefits, equipment, training, bonuses, etc. can range from 1.5 times to 3 times the salary of the position. Ouch.
  • BNA tells us the median HR budget is $2,966 per employee for companies under 250 employees and many CT companies do not even track or budget this cost, but your competition does.
  • Gallop studies suggests a company can have a $25% greater profit by performing HR properly.
  • Can you measure single employee’s ROI and do they understand their financial value to the company and where their performance is without you telling them?
  • Professional HR has arrived with Human Capital Management, Strategic HR and HRIS. Has yours?
  • How much of your HR function have you costed and outsourced?
  • Big companies have an HR person for every 102 employees. Even small companies have learned techniques to get that same professional coverage the big ones do at a fraction of the costs.
Does it make sense to perform HR professionally? You bet.

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