How HR Can Help Make Your Company and Save You Some Bucks
These are challenging times for companies. The good news for the HR executive is they are more valuable now than ever. When the money stops coming in the front door, companies become more concerned about what goes out the back door. For the first time in some time, risk management and employee productivity are real concerns. What follows are some suggestions to help HR make an impact on the bottom line:
- Eliminate the waste – Dr. Deming stated that every company does three things: add value, engage in administrative activities (accounting, etc.), and produce waste. One way to reduce waste is to get rid of the poor performers—now. Don’t wait until you’re forced into a layoff. Help the company engage in rating and ranking of the workforce and put forth a plan to set aside ten percent of it. The idea is not to replace that ten percent of employees, but to “cascade” down responsibility to the lowest common denominator. For example, an employee making $50,000 a year is paid roughly $25 an hour. It is your job to make sure they’re not doing any $10 or $15 an hour work.
- Force employees to contribute – There’s a reason why most employee suggestion systems don’t work. It’s because most employees are more concerned about any judgment attached to any suggestion they make then the contribution it may afford the company. The only available solution is to force people to provide suggestions. It is now part of their job requirements. Hold monthly suggestion meetings where every suggestion is rewarded with a dollar, raffle ticket, or lottery ticket. Make them fun. Then begin to implement the ideas. Once the employees realize the process is “safe,” be prepared to handle all the suggestions you will get.
- Cut out the time distracters – In today’s environment, there’s no time for 10 minute smoke breaks or fooling around on MySpace, Amazon, or texting your best friend. Make clear your prohibitions against these activities. If necessary, create a separate area where employees can engage in these activities during lunch and break times. In our new economy there will be no for wasting time.
- Don’t let your bread winners walk out the door – One of the biggest mistake a company makes is to ignore their star employees. “Bob makes the company $250,000 a year and causes me no headaches.” And, in the process, Bob gets ignored. Big mistake. Feed the ego of your top performers before they look to get it fed elsewhere!
- Make sure you don’t get sued – Litigation goes up when unemployment does. Make sure you have proper documentation to support any termination or RIF decisions. If you are an HR That Works user and you are not using the compliance training tools and Employee Compliance Survey, now would be a good time to begin.
Help the company with these critical objectives and watch your value soar.