I just got out of a great meeting with two coaches and HR professionals; Tim Bianchi with Trilogy Solutions and Jean Baker with Red Lantern Group, LLC.

We talked about a number of things, but one area that each of us are passionate about is human resources.   When I think of a human resource department within a company I think of:

• Hiring
• Benefits
• Rules and Laws

We continued to talk about different types of human resource departments.   Big companies have HR departments with specialist in each area. Many times small businesses have a single HR person who also wheres many hats.    We concluded that in businesses . . . regardless of size don’t see there HR department as a profit center.    The question is why not when there are statics ‘out there’ that say otherwise.

• A gallop poll shows that 56% of the US Workforce are disengaged in the jobs and another 17% are actively disengaged.
• SHRM says that for every $8.00 an organization loses it costs in the area of $3,500.00 to replace them.
• Findings from the Psychological Bulletin (September 1998) show a significant difference in performance between superior and average workers.   See ‘Cost of Average‘ for Breakdown

Each of areas directly impact an organization’s bottom line.   What are organizations doing to combat these stats and improve them in their organization?  The three areas above can be a result of a breakdown in one or more of the areas below:

• Recruiting
• Hiring
• Training
• Management
• Leadership

Which of these areas are responsible for improving the stats above?  Is it not HR?   The statistics clearly show that when there is a breakdown it has measurable financial impacts on an organization.   Couldn’t the same be said that if an HR department is doing the best job it can it would become a profit center for an organization?

Here are four ways an organization’s HR department can be a profit center.

1. Know Your Employees
2. Give Your People What They Need to Be Successful in Your Company
3. Give Your Management and Leadership What They Need to Be Successful with Their People
4. Promote Based on Successful Management & Leadership Competencies rather than Tactical Success

Now, I’m not going to go in to detail in this posting with how to do these four things.   I will write post of each point in the near future.

The bottom-line is this:  Right now companies are spending millions of dollars and a great deal of time understanding their target market, as in their ideal customers.   The people in charge know and if they understand how their customers think, behave, and motivations they will be able to be more intentional with their marketing, lead generation, and sales efforts.   They know that understanding their customer gives them the greatest chance of success.

• What would happen if only 27% of your customers liked your product or service?
• What would happen if your client retention was poor and it costs you $3,500 to replace a customer?
• What would happen if the customers you do have weren’t consistent?

The reality is you would probably go out of business.  You know:

No Customers = No Business

We’ll guess what: 

No Employees = No Business

Jason Kiesau Uncategorized