Because you’re worth it. Aren’t you?

The nature of my life is such that the topics of conversation can verge from the sublime to the ridiculous, to the completely unexpected. A case in point is that last week I managed to discuss the array of deviant sexual practices and the financial model of HR services within the same 24 hours.

Go figure.

Whilst I’d love to tell you all about felching spoons and the fetishistic objectification of nuns, I’m not sure that would be the best use of your time, please the internet censors, or be particularly wholesome. That said, if you catch me over a glass of wine or two, who knows what could happen….

But that’s not the point. Or maybe it is. But it’s not THIS point.

Most HR teams are set up as cost centres. They’re overheads. Essentially this means that as a user, you get what you’re given. And you pay for it, whether you like it or not. There are advantages to this. Sometimes we have to do things that people don’t want, or don’t know that they want. Sometimes we need to do things a little bit differently to how people want.

But what if we were profit centres? What if we charged for our services and then other departments could buy them? How would that work? And why are companies increasingly looking at this?

I can immediately see some advantages. Instilling a mindset within the HR team to focus on value generation would be helpful. Allowing managers to define the value they want from the HR team could be insightful. And perhaps most of all, reducing the number of pointless and failed initiatives that drive employees and managers up the wall would be a huge benefit.

Still, it can’t counter the unease I have about the whole idea. Firstly it assumes that procurers are experienced, educated and knowledgable. And that isn’t always the case. Secondly, it creates unnecessary internal markets that detracts attention away from the real purpose of the organisation. Finally, and for me most importantly, it suggests HR is there to serve the budget holders and not all employees. Which worries me.

I think HR can gain all the benefits that are derived from this way of operating, without having to change the financial model and incur the associated down sides. It doesn’t seem to me a huge leap of faith or thinking to do that.

Ask yourself, every day, “Would I pay for my service?”

And if that doesn’t work and if things get really bad. Console yourself that what ever might happen, “we’ll always have fisting”.

Yeah. That.

8 comments

  1. dougshaw · July 21, 2014

    Knee tremblers last week – fisting this week. This is one heck of a journey of discovery 🙂

    • Neil · July 26, 2014

      A roller coaster of discovery nonetheless, who knows where it could end!! I haven’t rolled out the dwarves yet.

  2. Tim Baker · July 21, 2014

    Never thought I’d see fisting and felching in an HR blog!

    Excellent post. I’ve not seen this topic discussed as much as I was expecting. Matt Jeffery wrote about Recruitment becoming a profit centre in 2011 and the last I heard on this was in 2012 when he was interviewed – http://www.hci.org/blog/part-6-recruitment-profit-center-interview-matthew-jeffery it looks as though he and his boss disagreed on this and perhaps the reasons for that are in-line with yours.

    • Neil · July 26, 2014

      It seems to be rumbling away in the background, I was discussing L&D as a profit centre the other day and I just can’t see that working. I don’t understand why we can’t install the mind sight without the mechanism.

  3. HB · July 21, 2014

    Yes!

    • Neil · July 26, 2014

      Is that an orgasmic exclamation?

  4. Julie · July 22, 2014

    Best closing ever. 50 shades of HR?

    • Neil · July 26, 2014

      I admit, I did steal it……but don’t tell anyone will you?

      You’ll have to run that suggestion by The Women of HR…..I’m not sure I’m qualified to answer and I have a vested interest!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s