Beatty said that it is most important to think outside the HR department box when it comes to filling the strategic positions that create the bulk of a company's value. To that end, he suggested that companies might be better off appointing someone from outside the HR department to manage strategic talent. He pointed to Precision Castparts Corp., a $7 billion machine-parts manufacturer, as one company that has bypassed HR in several situations. For one, it reassigned an operations executive who ran a third of the company's 150 plants to take control of scouting for and retaining strategic talent.
Such tactics are warranted because while "the language of organizations is numbers, HR isn't very good at data analytics," Beatty said. "They don't think like business people. Many of them entered human resources because they wanted to help people, which I'm all for, but I'm also for building winning organizations."
It's the CFO's job to make sure that the work of analyzing and, as necessary, reconstituting the work force gets done by someone qualified to do the job, added Beatty, and there has never been more at stake than there is now.
"The labor market is in a position to provide you with better talent than you have ever had," said Beatty, co-author of the new book, The Differentiated Workforce. "If you don't emerge from this market with better talent in the roles that really make a difference, I don't think you're trying."
That's an overgeneralization, don't you think? OK. I'll concede that a lot of HR people out there don't think like business people. But there are plenty that do.
As for cutting HR out of the hiring process, is this guy serious?
1) How many HR pros do you know who don't involve the appropriate level of management or at least 12 other people in the hiring process? I'm sure there are some HR people who do it alone out there. But I don't know any.
The last sales guy I saw hired? He interviewed with everyone. He talked to everyone from the GM to the engineering guys to the President of the company. And they all agreed on giving him an offer.
2) How do you identify what levels you cut HR out of? Who are the 'strategic people'? The C-levels only? Middle management? Because, you know, the people at Precision Castparts who make the parts? Surely, they don't matter. Nor do those people in the call center example used earlier in the article. Maybe HR could just hire those people.
3) Do you know why the HR pro had to sit in on the interviews while that sales guy was talking to 12 different people? Because the managers and others interviewing him were very likely to ask questions they can't legally ask. Yep. I'm sure HR would love for managers and supervisors to be trained to a level where that sort of thing doesn't happen. But that would require training, and you don't like training either. (Not to mention that those numbers you like so much? HR is there to keep those numbers from going out to lawyers and payouts from lawsuits due to discriminatory hiring practices.)
4) And who are these guys hiring out on their own? Their college buddies? Or, okay, let's give them the benefit of the doubt. Let's say they're talking to someone else in their field who they know who has been at the top of their game for years.
The last guy I saw like that? Was about to get a big payout due to a company closing down and really only wanted someplace to rest his weary head for three to four years before retiring. But these guys were so in awe of him that they couldn't see that.
5) Finding stellar talent sometimes has to do with the pond you're fishing in. An operations manager once moved from a big city in one part of the country to a small town in another part of the country. He started demanding that HR do better hiring. He'd rant and rave about how poor a job HR was doing.
What he didn't understand was that the talent pool in his new home was different. He had the best talent in the area. Well, he had the best talent he was willing to pay for. Which brings me to my final point.....
6) Are CFO's going to pay for hiring those strategic, key, highly educated, well-experienced people? Because the last time I checked, it seemed like CFO's are mostly telling their HR pros to do the dirty work of laying people off. Or worse, laying people off and rehiring at lower pay levels. What about the talent that's walking out the door right now?
There are, typically, a lot of areas where HR could cut back. For that to happen, though, the management at these companies have to get better at managing people. Which, by the way, doesn't all come down to numbers.
All the best!
deb
P.S. What Kris had to say about hiring strictly on the letters after someone's name and missing out on 'bootstrapped pros'? He's dead on. (Then again, Kris usually is.)
P.S. More on what the article had to say about training coming soon.