Closing in the C-Suite
I’ve heard many times how HR and talent acquisition executives claim to be partners to their respective businesses. I’ve seen a lot of promotion and some success, but little in the way of actual documented financial impact. For those HR and Talent executives reading this, I have a simple idea for you. When aligning to your business, think about how you will quantify your production. Think in the language of a CFO or CEO. Here is an example. For any company to outsource a business process, they need to review the big 4 components – cost, qualify, compliance and velocity. Can a partner do a business process cheaper, better, as compliant and faster than we can do it ourselves? If yes, then you need to immediately find the right partner to outsource (not vendor) and start quantifying the impact. That is the C-suite win for you. Here is an example for recruitment. Recruiting is a well-documented problem for just about any company today– whether you are a Fortune 500 or a small cap. The unemployment rate is under 5% which is considered full employment and some areas of the country it is less than 2%. Instead of doing the usual build out with people, tools, technology and incurring immediate operating costs -- think of bringing in a partner on a pay for performance model. It doesn’t need to be your entire recruiting operation being outsourced, it can be as little as 10-20% of your recruiting portfolio. A lot of companies are building a hedge into their operations by outsourcing a sizable piece of recruitment and then benchmarking a partner's performance against their own internal operations. Who is doing it better, faster and cheaper? If the partner is more successful, then their share of recruiting wallet increases, and the core infrastructure contracts. This cost savings or positive impact on revenue is well documented and communicated, thus, showing real partnership with the business. I’ve seen some executives break down the impact in terms of earnings per share (EPS) and use the pay for performance model to help support a company’s cash flow. This will get everyone’s attention – the CFO, COO, CAO and CEO. It’s smart, it’s sustainable and it provides HR/Talent as seat at the table in the executive suite.
The thoughts expressed are solely those of my own and do not represent another entity