There are still many companies that do not have an official human resources department. And yet, the HR function is alive and well in many of these same companies. It is practised on the management committee, it is embodied by the head of the company, director of operations, or the financial and administrative director. By “alive,” I mean that there recruiting, training, perhaps laying off as required—but ESPECIALLY that concern is being demonstrated for employees. Employees are greeted by name, recognized for their efforts and listened to, and management ensures that the work environment is positive. In short, there are no picket signs in the plant or the sidewalk in front of the offices, and yet, one day the management committee votes resoundingly to set up a HR department. Why?
Because they are overwhelmed by requests and sometimes they drop the ball. Take, for instance, the young manager who was told he is a high potential and has important value in terms of succession—well, he is still waiting on the bench for the sign to join the game. And talking about signs, he is starting to give signs of impatience—and of heeding the siren calls of other offers. . . There are many signs, of course; the following are officially recognized indicators that you must pay special attention to:
– Turnover rate, especially when it is impossible—or almost—to explain it, given that no one conducts exit interviews, or if these are only carried out by the managers, without ever being correlated by a neutral third party external to the boss-subordinate relationship.
– Outside consulting fees are increasing (recruiters, lawyers for legal opinions or litigation files, various consultants, trainers, etc.) These budgets must be monitored. Ask your CFO to do it; this is something right up his or her alley! What’s important is pinpointing what kinds of services are in demand. More consulting firms for project management? More outside recruiters? More trainers? More litigation files for your outside legal advisors to manage? Identify the requests, analyze them and attempt to understand the needs of your organisation and the underlying source of the demands.
– Increasing CSST claims. Overall, claims are up—there are more accidents, burnouts and various injuries. Do you really know what is happening? What about prevention? Are first-line managers aware of safety, physical prevention and mental health issues?
– The work climate has changed, and silos and cliques are forming. The lack of communication is hurting the company, a lack of accountability is slowly but steadily making inroads and radical union pamphlets are apparently circulating in the locker room. . .
– Employee performance is down: There are production delays, and deliveries are late. Customer satisfaction is declining, and sales and marketing are pointing the finger at operations and manufacturing or customer service, which, for their part, complain about the lack of resources and obsolete systems.
– Payroll is late, with frequent mistakes, and the group insurance no longer meets employee needs.
– The management committee is struggling, with staffing requests flying in, and projects are lagging because of the shortage of good people.
– The black cloud of succession is casting its shadow, and with it, the next retirements, which are imminent.
Of course, all these things never happen at the same time (or we hope for you that they don’t!). But to be on the safe side, be attentive to precursors. Your future HRM is not a magician—he or she will not be able to solve all your problems with the wave of a wand. This person must channel the HR function and reactivate, as required, best practices and desirable behaviours. The HRM will go out in the field, sound out employees, listen, sometimes reassure, but—especially—take care up the files that have fallen between the cracks. The HRM must re-establish or initiate, as the case may be, a dialogue between employees, supervisors and management. He or she must provide a neutral place for all to lay down their arms and unburden themselves. Yes, there’s a bit of the psychologist in your HRM, not just in terms of listening but for bringing individuals to question themselves, work on their development and help the organization focus on reaching its business objectives. Ultimately, that’s what human resources is all about—promoting a healthy, positive work environment for creating value and ensuring the development of the company. So, what about you—what dashboard will you be presenting at the next management committee meeting?
Sources: SRHRM, ORHRI, DELOITTE
How many employees should a human resources professional be responsible for?
According to the Society for Human Resource Management (SHRM), the average ratio is 1.21 or 1.22 HR professionals for every 100 employees; companies with fewer than 100 employees have an average of above 2 professionals while those with more than 100 employees have an average equal to 1 professional. Deloitte Consulting indicates an average of 1.7 professionals for 100 employees.
Nathalie Francisci, Adma, CRHA
Executive Vice-president
at Mandrake Groupe Conseil