“THE TEAM WITH THE BEST PLAYERS WINS.” – JACK WELCH, FORMER CEO OF GE
Friends of mine outside the HCM industry are always asking me what I do for a living. For those of you that work in the HCM industry, you know there are so many moving parts and it can be a challenge at times to articulate in laymen's terms what we do for a living. The true mark of an expert is someone who can describe what they do in such simple terms a 7th grader could understand. Most professional sales books tell you to have a 30-60 second elevator speech to use if someone asks you what you do for a living. I’m not saying I am an expert here but have been very successful in my sales career at this point.
Create an Elevator Speech that Works!
Let me propose a question for you… If you had just won a $6,000,000 lottery, you wouldn’t just throw that money in the stock market without first sitting down with several financial advisors, accountants, attorneys to figure out how to maximize the ROI on that investment while reducing risk, and minimizing personal tax implications for the year would you? Of course not…You would want to hire the best advisory service available to ensure a great return so you could preserve your capital, minimize risk, and maximize your investment returns! Doing so is considered financially prudent.
In the same breath, if you owned a 100 employee company that had a $6,000,000 labor spend, wouldn’t you want to figure out ways to invest in those employees to maximize their productivity and profitability? In its essence, that is what a human capital management strategist does. They will analyze everything within the life cycle of the employee from recruiting to retirement. As an HCM Expert, I work with business owners to learn how they deploy that capital through investment in compensation, benefits, and training and development. I help them determine how effective their approach is and how we can help them make their employees more productive and profitable by taking a more efficient approach.
If you Manage People, Employee Development is Critical!
One very huge piece to Human Capital Management is Talent Management. Talent Management is something that is near and dear to my heart. I have spent over 10 years owning and managing an executive search firm and can see the value of this quote by Jack Welch first hand. My agency focused on recruiting sales professionals and the hard part about recruiting sales professionals is that you need to be shrewd enough to peel back the onion on their work ethic and performance results to figure out what you are going to get if you hire them. As many sales managers will attest – it can be a crap shoot at times! Most direct line sales managers lead a team of 6-8 sales professionals so if they “miss” on a hire, their team will not be firing on all cylinders and likely struggle to even make plan – this can have a very negative impact on that sales manager’s annual income and even put their own career on the chopping block! Not a good situation for sure! To the contrary, when you hire that “A Player” that can make all the difference in the world and can mean a much bigger w-2 and even fast tracking up the corporate ladder – the 80/20 rule exists for a reason! As the Great Jack Welch said, “The team with the best players wins!”
Many Business Owners Lack the Tools and Infrastructure to Effectively Recruit on their Own!
When you think about how recruiting works in most small to mid-sized organizations, because recruiting is so labor intensive; there are simply not enough internal resources to effectively manage recruiting and also ensure all of the other components of attracting, developing, and retaining talent within the organization. That is the reason that the contingency based recruiting industry is a 6-billion-dollar industry. To top it off, by the year 2025, Millennials will comprise nearly 75% of the entire workforce. There is going to be a massive labor shortage in 10 years and if companies are considering just remaining status quo on this topic, they will be in for a rude awakening! I read a recent case study published by Deloitte and it concluded the following: “In today’s New environment, the old ways of recruiting, acquiring, accessing talent are no longer effective. Companies that fail to adapt will likely be on the losing end when it comes to attracting the people they need.” The new way of doing things ties back to training and development and driving employee engagement. As many of us in the HCM industry already know – everything ties back to employee engagement. Gallup published a study in 2016 that states that only 32% of employees were engaged with 51% of employees not engaged at 17% actively disengaged. What this means is that nearly 68% of employees are disengaged at their current job! What makes this even more critical is that according to AON Hewitt, “Companies with low engagement scores can earn an operating income 32.7% lower than companies with more engaged employees.” The silver lining here is that you investing in people through employee development opportunities is a great way to move the needle on employee engagement.
The reason that many companies don’t invest in the training and development is because they have overwhelming administrative burdens associated with a lack of integration around the HRIS and payroll systems. In most organizations, 80% of an HR departments time is spend on administrative tasks, not people. Most business owners wear multiple hats which can be a difficult and challenging aspect of running a company. If the business owner is not careful, it can become an obstacle to reaching the business goals. That is where HCM consultants like me come into play. I help my clients with creative solutions that integrate processes and provide our client companies with more administrative bandwidth so that they can focus on more strategic initiatives that will make the company more money and allow the people in the company to focus more directly on their goals.
In summary, it is important to have an elevator speech ready if you are in professional selling. As a top HCM consultant at ADP, I work with all types of businesses and help them gain better insight into how they deploy their labor spend in the most efficient manner to accelerate business results. If you are interested in a free consultation, hit me up on LinkedIn to get the process going today!