Is Your HR Function As Important As Sales and Marketing?
If I were to have created this blog around twenty years ago, I would’ve probably lost my job, as the generations that came before us had different needs, motivations and ambitions. This led to them staying in jobs for longer. However, as we sit here in 2018 companies all over the world are battling to retain existing employees, along with attract new talent into their business.
Most leadership teams will tell you that they are struggling to attract and retain, because of one of the following reasons…
“We can’t afford the wages that other companies pay”
“People aren’t skilled enough for the jobs that we need them to do”
In my personal opinion all three of the above are easy excuses… far too easy. If you have a clearly defined employer value proposition (EVP), employer brand and a set of core values (that your daily behaviours align to, not just some words stuck on a wall” then the objections above can be overcome, in most cases.
The purpose of this blog is to discuss why I believe a modern people strategy, is just as important as your sales and marketing function.
What Even Is A People Strategy?
I assume that most people will have been interested by the title of my blog, as HR typically has a negative connotation. However, if you aren’t already aware, there are two sides to a HR function…
Side 1 – Traditional HR – Administration, disciplinaries, payroll etc
Side 2 – Modern HR – projects, change, attraction, retention, engagement, employee development
To me personally a modern people strategy is…
The structures, processes and digital tools that will enable a business to attract, retain, develop and engage, with the purpose of improving business performance and reducing costs.
But How Could A People Strategy Be As Important As Your Sales and Marketing Function?
If you’re still reading this blog then that is great – I assume that a lot of people will have stopped now as they’d see this as “a load of fluffy stuff”.
The purpose of a sales and marketing function is to attract, retain, develop and engage clients, the purpose of a people function is to attract, retain, develop and engage talent.
If you engage a client through sales and marketing then you will get a return on investment through either a sale/referral/relationship. If you engage an employee through your people function then you will get a return on investment through improved performance/improved brand image/better chance of attracting (which leads to less time resourcing – time=money).
I’ve included a couple of points below which summarises just SOME of the performance improvement opportunities and cost reductions that can be made if you consider implementing a modern people strategy…
- Engaged employees are 27% more likely to record excellent performance (Gallup)
- Organisations with high employee engagement outperform others by 202% (Business2community)
- The average employee costs £11,000 to replace – this is “average” so imagine how much it could cost to lose a senior employee… (Accounts + Legal)
A Few Interesting Points About Internal Culture…
Simon Sinek… Starbucks was founded around the experience and the environment of their stores. Starbucks was about a space with comfortable chairs, lots of power outlets, tables and desks at which we could work and the option to spend as much time in their stores as we wanted without any pressure to buy. The coffee was incidental.
Stan Slap… A company can’t buy true emotional commitment from managers no matter how much it’s willing to spend; this is something too valuable to have a price tag. And yet a company can’t afford not to have it.
Neil Degrasse Tyson… Once you have an innovation culture, even those who are not scientists or engineers — poets, actors, journalists — they, as communities, embrace the meaning of what it is to be scientifically literate. They embrace the concept of an innovation culture. They vote in ways that promote it. They don’t fight science and they don’t fight technology.
The purpose of today’s blog was to scratch the surface of what is an up and coming topic in the board room. If you do not already have a clearly defined people strategy in place ,which will enable you to attract, retain, develop and engage, then I would strongly encourage you to consider this as a priority.
As always happy to answer any questions and receive some feedback on this. Please like/share/comment or get in touch with me.
Client Delivery Consultant