In light of the discussion about change and enduring wisdom, here’s what I consider the wisdom available to HR managers:
- Great HR practices generate a competitive advantage, whether you have five or 5,000 employees.
- The “tipping point” in human resources is the hiring process, which has a greater impact on productivity, teamwork, constant improvement, profitability, and compliance than any other factor.
- According to the HR That Works Cost Calculator, there’s at least a 10% cost or variance of payroll in your human resource practices. For example, if you have a $1 million payroll, your cost or variance is at least $100,000. You’ll need to bring in, at a minimum, $400,000 to put that $100,000 back to the bottom line.
- The greatest risks in employment practices are uninsurable. Despite all the noise of the legal community, poor hires, high turnover, and lack of productivity left on the table every day have the greatest impact to the bottom line. Every company should cap its employment practices liabilities by purchasing Employment Practices Liability Insurance (EPLI).
- You need to find HR exciting to be any good at it — even if it’s only one of three hats you’re wearing.