Costing Human Resources

At nearly every gathering of HR Professionals I have ever attended, a discussion of how to get a Seat at The Table inevitably gets broached.  I’ve sat through everything from informal discussions to lengthy keynote speeches with boatloads of ideas that sound fantastic.  That is, to other HR professionals.

In order to be viewed as a strategic member of your management team, you need to speak the same language as the rest of your management team.  You see, all your colleagues see is the cost of HR programs.  Your job is to demonstrate the benefit in dollars and cents so others in the organization can see the value that your role and your department bring to the organization.

Many of you would likely volunteer for a root canal before assuming a finance or sales role.  However, doing just that is the key to increasing your strategic importance within your organization as well as your marketability should you ever decide to go elsewhere.

Imagine presenting to your management team a reduction of turnover that saved the organization $250,000 or a management development initiative that increased same store sales by 12%.  It is critical to be able to both calculate the cost / benefit and communicate  (read sell)  the value to your stakeholders.

Until then, Human Resources will be seen as nothing more that a cost center.

Fortunately, there are some helpful resources to help you do just that (note: clicking on the links will take you to the Amazon listing).

costingBOOKCosting Human Resources by Wayne F. Cascio

costing cover

Investing in People

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