Memo to CFO’s: Don’t Trust HR
Wednesday, March 25th, 2009Richard Beatty, Rutger HR Professor (USA) has certainly sparked some online “debate” from his recent presentation to 300-odd Financial Executives in Orlando USA. As I read the information, Beatty says that HR are spending too much time on trying to engage employees who are “unengageable” or just couldn’t care less about working in the organisation. He bases his information on the Gallup survey of customer services employees in a Financial firm and the negative impact of the bottom quartile on customer reaction. He also states that HR isn’t very good at data analytics and we don’t think like business people. “Many of them entered human resources because they wanted to help people.”
I think on the analytics side he is probably right, I have worked in large Blue Chips and the data gathering and analysis in HR is woefully bad, HR Professionals end up running around fire-fighting or introducing the lastest HR “must-have” Strategy (soon to dropped as implementation didn’t stick as the organisation was too busy getting business done). Basic numbers and measures are forgottten in the dash towards “employer of choice”.
Beatty’s arguments and solutions remind me very much of Jack Welch’s (General Electric), 20, 70, 10 principle for performance management. Reward the top 20% performers, satisfy the middle 70% and get rid of the bottom 10%. Translated recently to “performance manage” the bottom 10%. Problem is that the bottom 10% soon are of a high standard and you start alienating good people and get a reputation.
I have to agree that some HR Professionals aren’t business-minded, but in the majority we are pretty savvy when it comes to seeing the bottom line - if you had to deliver on some of the budgets given by Boards, you would have to be. I think good HR professionals would agree with Beatty that finding out what makes top performers tick and training and selecting those attributes makes sense - but isn’t that part of engagement? Getting employees the skills and the knowledge to be able to contribute to the goals of the business. Engagement isn’t just making people feel warm and fuzzy about the organsiation they work for.
Other interesting comments come from Denise Cooper of Profitablity through Human Captial, who relates Beatty’s comments back to 2005 article “why we hate HR” and Jim Holincheck who breaks down the article into sections and comments well on each - particularly on the analytics side (I am presuming that is his consultancy area). Also Gautam Ghosh who points out that Beatty could be playing to the audience and enforcing some age-old stereotypes (I am with him on that point)
We love our jargon, I have seen many definitions of engagement but still the myth perpetuates that it is about “employer of choice” and “feeling warm and fuzzy about the organisation”. Really - there is nothing very cuddly about a Corporation to feel fuzzy about!