HR and the bottom line
We’re constantly asking clients and HR professionals the following question: “How do you make a difference to the bottom line?” Without sounding simple minded, whenever and whoever goes to work in the private sector the ultimate goal is to drive revenue and profit to the bottom line of the company.
How does HR do that? HR can do that using what we term a “soft or employee centric approach”, i.e. the traditional employee engagement ideas-anniversary awards, Christmas party, employee of the month, or the one that we love wishing people happy birthday when it is their kids’ birthday.
These approaches, however dated are still important and make a difference. In addition to these tried and true approaches the opportunity exists for a more focused and fact based approach to adding to the bottom line. One value added service that HR can offer (because they really own the data to come up with the actionable intelligence) is to influence where the location of the next office or factory is based on combination of census data and the characteristics of the top performers doing the job that will be done at the new location.
We have seen this make a real difference in time to productivity for the new location as well as affecting a lower turnover rate. One of the main reasons why there was a lower turnover rate and a faster time to productivity (compared to other location openings prior to HR intelligence being used in this way) was because the company in question put the location very conveniently on the bus route near a college that offered a program that was training ground for the workers that this organization would need in the future.
HR was able to build a business case using the intelligence that they had gathered to not only justify the choice for the new location but to use predictive analytics to allow the organization to plan around what “likely would happen” based on those analytics that HR provided.
We would submit that this is a great example of the things that HR needs to make ordinary rather than being worthy of a comment on a blog posting or in LinkedIn. These are the things that we as HR professionals need to be thinking about. Can you think of any other fact based examples of how HR can help the business?