There are no HR problems. There are only business problems with HR solutions.
Most HR professionals speak with confidence about whether or not they are adding value to the HR function. However, executives no longer think that is good enough. The C-suite is now demanding to know if HR adds shareholder value to the business – not to its own function.
When HR is not adding shareholder value and performs as a hygiene factor, firms accept industry standards and decrease their vertical integration by outsourcing significant portions of the HR function.
CEOs do not want to have HR conversations with HR. They want to have great business conversations with HR. How can HR measure its business success instead of merely its HR success? This is accomplished by discovering the link between HR initiatives and, through pro forma income statements, its impact on net income.
When HR professionals don’t present pro forma income statements as part of their project portfolios, they are bereft of the information that definitively answers the question, “Did HR add shareholder value?”
In this webinar, discover eight income statement categories that all HR initiatives should impact. If your HR project does not impact at least one of these eight categories, consider not greenlighting the project at all for the benefit of the company.
Vincent Suppa works with startups and investors and teaches graduate courses at New York University. His email is email@example.com.
© Vincent Suppa 2017