HR: Earning a Seat at the Table
"Why do so many executives continue to regard Human Resources as a backend support service and cost center? Could it be that many HR leaders haven't demonstrated an intimate understanding of the business or an ability to focus their teams on spearheading initiatives that create tremendous value for the enterprise?"
In this article, Mark Mayleben goes on to say that the single most important area of expertise for HR leaders who want a seat at the table is operations and profitability.
In this article, we'll talk about the metric that replaces the numbers you've been reporting in the past and how you can expect it to transform your organization - and your C-Suite's understanding of the role of human resources within that organization.
We will help you change the conversation and speak their language; the bacon, the bread, the cheese (are we making a sandwich lol) we are talking about dollars and cents, the benjamins baby, $$$, the moola, the money!
Adding measurable financial value
Consider the last time you were tasked with screening candidates for an open position. Perhaps your primary requirement was alignment with the organization's core values of philanthropy, compassion, and social justice. But then, you saw these objectives:
to find a job with better pay and benefits than I have now
to transition to the for-profit sector so I can build my career and wealth
to climb the corporate ladder
These candidates may be qualified, but they're speaking the wrong language. Instead of demonstrating alignment with the core values of the organization, they spoke to their own financial gain. The same applies to your communication in the war room, so to speak. HR adds financial value to the organization, but they don't always speak the right language.
How many times has it been brought to your attention that human resources isn't a revenue-generating department?
Maybe you have a response, but it doesn't hold up in the war room because it's nearly impossible to back your value with measurable, numerical data and even more difficult to assign your value in the organization a monetary value that speaks to those who are responsible for the bottom line. Although they recognize the importance, they rarely acknowledge the value of metrics like turnover, cost per hire, and retention rate. They need metrics that speak to their objectives.
Our goal at TeamRocket is to empower you to communicate in a new language to grow strategically and help you get the tools you need and want to drive organizational success.
Talent Impact Score: The only HR metric you need to know
What if you could describe the value of your department in dollars?
What if you knew the total financial impact of every new hire on the organization?
What if your recommendations could produce measurable six-figure savings per year?
Working with TeamRocket to calculate your Talent Impact Score does all of these things and more. Here's what you need to know:
Talent Impact Score (TIS) is a new metric in HR that replaces almost every other metric by taking into consideration turnover, cost per hire, onboarding, training, longevity, and revenue generation
Knowing your TIS gives you the opportunity (for the first time in history) to demonstrate the direct and measurable relationship between the role of human resources and the profitability of the organization
Calculating your TIS is just the first step in the process; once you know how much money you're losing per hire (and most organizations are losing money every time they hire a new resource), TeamRocket can help you develop strategies to improve that number and change the future of your organization
Be prepared to be surprised; most organizations find that they lose money with every hire when they first start this process. As you're able to identify where and why those losses are occurring, you can take baby steps to reduce the loss little by little until you start earning a profit every time you bring in a new resource - the ultimate goal for profitable organizations.
Getting started today
Learning how to communicate with the C-Suite requires presenting data-driven ideas that speak to the bottom line. We're passionate about helping HR folks do exactly that - not only earn a seat at the table but transform their organizations and catapult their own careers, proving their value and business acumen to key stakeholders.
We've always recognized the value of human resources in the organization, but with the Talent Impact Score, it's become easier than ever before to illustrate that value to key stakeholders in their own language. Imagine HR leaders showing up and providing meaningful data and measurable financial results, much like any revenue-generating department. It suddenly becomes easier to justify resources in your department! And perhaps most importantly, you earn a chair at the table of strategic senior leaders.
Are you ready to learn a new language to express the value of human resources? We're ready to teach you. Contact us at TeamRocket today to take the first step.