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Human Resources; How much is enough? A Controversial Perspective

Guest post by: G.J. Miller

Article Overview: If your HR staff is not providing key reports and developing programs and strategies that either reduce your costs or increase revenue in some way, then you don’t need them at all. I mean that. But assuming you have, or will hire, a Human Resources professional that does or will make recommendations that contribute to the bottom line, the answer is “it depends”.

Human Resources; How much is enough? A Controversial Perspective

I know, you are thinking "well, that wasn't much help".

Start with the number of employees as a general indicator.

A basic rule of "thumb"

How many employees do you have? A common approach is that if you are in the manufacturing sector, or are unionized and you answer 50 or more, then you should have an HR person on staff. Beyond 50 or in knowledge or service industries, the rule of thumb is 1:100 employees.

Then balance this with your answers to these six questions:

Are the organization values and business strategies clearly communicated?

You can't clearly communicate what you haven't articulated. This is crucial to the success of any organization. Simple but true - not knowing how you want staff to "behave" or deliver, based on values and culture, is like inviting poor customer service to the party.

If you don't know your organization's values, or if you haven't taken the time to identify the culture (culture = values and is disguised as attitudes and behaviours) for success, then no amount of HR will help.

Is there any HR infrastructure in place?

There are basics that you need, no matter your size. These can and should be very simple, no matter the size of your organization. Things like an employee handbook, performance coaching process, pay for performance methodology and an interview and selection program that identifies people that "fit" - technical skills and behaviours or attitudes (culture) - to name just a few.

Are managers trained in the effective use and communication of all processes and programs?

To create synergy and harmony within the organization, ALL managers need to have the same understanding of, and be using the programs and processes in the same way. This has the potential to reduce confusion and focus the "team" on company goals. It can ensure less friction or angst and contribute to a higher level of morale.

Are leaders expected to "walk the talk?"

Leaders can't HAVE a team - they must realize they are PART of the team. That means no "do as I say, not as I do" attitudes. Leading by example is one of the most powerful behaviours a leader can model. Don't just tell the folks.....do it.

Are managers and leaders held accountable for implementing and managing HR programs and initiatives?

Train managers and hold them accountable so programs become second nature - HR can't do it alone. HR should be designing programs, training managers, and communicating and implementing only those programs that move the organization forward, reduce cost, increase retention or increase revenues. There should be no superfluous programs, please, and no 'flavour of the day' programs. Every initiative must tie to the business strategy.

Most importantly a program should not be installed just because a manager likes it. If you have a knowledgeable HR professional on your team that knows his/her stuff, expect them to speak up - welcome their feedback. At the end of the day they will align the HR function with the business goals.

Are there consequences for managers and leaders who fail to meet objectives that relate to people?

Here's where the rubber meets the road. People represent anywhere from 60 to 80% of an organization's expenses. The higher end of the scale is typically found in knowledge industries. When you hand people assets over to managers and hold them accountable, it should mean if they don't deliver on the people objectives there is some impact. People are a large component of expenses, remember?

If objectives are not met, maybe managers shouldn't get a salary increase or, at least, not as much as planned. Perhaps their bonus is reduced because those goals are incorporated. Maybe if they continue to ignore the assets they manage they get fired. Radical? Perhaps. But you wouldn't let them crash the company car more than once without repercussions and it's only worth 20 - 30K.

So how much HR is enough?



If you answered YES to the last six questions; you need an HR strategic partner to help manage change and design or tweak programs that focus resources on company goals.

If you answered NO to the last six questions; you are probably spending too much time on people problems and not enough time growing the business! At this point, unless you hire a highly seasoned, very expensive HR professional, forget it. You are better, in the short term, to find a good consultant and outsourcing partner that can put the wheels back on in fairly short order. Then bring in an HR Professional with the experience that matches your organization size and strategic needs.

If your answers were all over the place, well......it depends!

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Article Tags: attitudes, behaviours, business strategies, company goals, confusion, employee handbook, friction, harmony, hr person, infrastructure, manufacturing sector, organization values, performance methodology, poor customer service, rule of thumb, selection program, synergy



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