selling the value of hr to executive...

1 Copyright 2008-2014 © 4-Profit-HR

Selling the Value of HRto

Executive Leadership


Selling the Value of HRto


“Sales??” =


Sales 101

What Do I Mean By “Sales” in HR?

HR Consultants(Firms or Individuals)

HR “Departments”(within a company)

Prospective Business Clients

Their CFO

Their CEO

“Sell To”

“Sell To”

Either way, it’s attempting to “getting a seat at the table”…• …convincing another business to use your HR services, or• …convincing Upper Management within your company that your HR Initiatives will drive profitability (and they’re not just “overhead” expenses”).


Sales 101

Let’s Further Examine “Sales” in General…

From the HR Provider’s side (seller’s side)…

selling involves having something that may be of value to a prospective client, and convincing that prospective client to part with their money in return for receiving your value.

From the Client’s side (buyer’s side)…

it involves “changing” what they are currently doing, and mentally and physically “buying” your value proposition.


Why Human Resources (HR)?

Value For You From This Session:

1. Better understanding of “HR’s” Value Communication challenge

2. Better understanding of HR’s connection to the P&L

3. Differences between Strategies, Tactics, and Task Implementation

4. “HOW Selling”, versus “WHY Selling” (to the C-Suite)

5. An enhanced “HR Value Mindset” (due to #1 thru #4)



Challenges of HR Professionals:

Defining “HR” (very vast and far reaching) and getting everyone on the same page

The stereotype that HR people “only do paperwork and tell us what we can’t do”

Getting buy-in to the Management Strategy that HR Initiatives make a difference on profitability (a.k.a. Human Capital Management)

Understanding HOW HR Initiatives have impact (on many areas)

Assessing the current HR Profile (starting point)

Estimating financial impact of HR improvement opportunities

Estimating risk and financial impact of HR deterioration possibilities

Upfront understanding that HR Initiatives take time to have impact

HR metrics to “prove” value (other than basic expense management)

1.

2.

3.

4.

5.

6.

7.

8.

9.



Let’s do a WHAT, WHY, and HOW exercise:

WHAT: Define what Key Strategic Human Resource Initiatives are

WHY: Identify why each one can be valuable to a business

HOW: Show how each Initiative can be accomplished

1.

2.

3.


Today?Tomorrow?Unknown!


Provide…WCPayroll Srvc.Health Ins.401kEtc.

MaximizeBusiness

Profits

Business ProtectionStrategies

Protect…Laws / Regs(Proactive)

Trade Secrets(Proactive)Litigation(Reactive)

Attract BestTalent

Improve…Recruiting StrategyInterviewingEffectivenessSelection ProcessCompensationBenefits PlanTraining & Dvlpmnt

Shareholder Value

(Owner Wealth Accumulation)

ExpenseManagement

(of HR Services & Products)

Turnover Reduction Strategies

Employee Performance / Productivity

Improve…Individual / TeamProductivityTraining / DvlpmntCommunicationsAbsenteeismLost TimeStrategic Planning

LeverageResources

Monitor…EfficienciesSave TimeJob AnalysisCore Bus.FocusOutsourceOptions

Cost Containment

Strategies(Experience Driven)

Control…Health Ins.Increases

WC E-Mod

SUI Rate(s)

Exec Compensation

Non-Qualified Plans

IncreaseBusiness

Value

Business Self-Sufficiency

and Systemization

Build…Hire Experts

andSpecialists

ConsolidateVendors

HRSystemization

IncreaseBusinessRevenue

ReduceBusiness

Costs(Short Term)

ProtectBusinessRevenue

AvoidFines

ContainBusiness

Costs(Long Term)

AvoidLawsuits

IncreaseBusiness

Productivity





MaximizeBusiness

Profits




Attract BestTalent


Shareholder Value


ExpenseManagement





LeverageResources


Cost Containment



WC E-Mod

SUI Rate(s)

Exec Compensation

Non-Qualified Plans

IncreaseBusiness

Value


and Systemization


andSpecialists

ConsolidateVendors

HRSystemization


ReduceBusiness

Costs(Short Term)


AvoidFines

ContainBusiness

Costs(Long Term)

AvoidLawsuits

IncreaseBusiness

Productivity

Many Businesses With Less Than About150 Employees Are “Living” In This Space





MaximizeBusiness

Profits




Attract BestTalent


Shareholder Value


ExpenseManagement





LeverageResources


Cost Containment



WC E-Mod

SUI Rate(s)

Exec Compensation

Non-Qualified Plans

IncreaseBusiness

Value


and Systemization


andSpecialists

ConsolidateVendors

HRSystemization


ReduceBusiness

Costs(Short Term)


AvoidFines

ContainBusiness

Costs(Long Term)

AvoidLawsuits

IncreaseBusiness

Productivity

HOW on an HR Strategic / Tactical interface level

WHY They’re Important…

(Key Business Strategic Goals)

WHAT: Key Strategic HR Initiatives…


1) Recruiting 3) Compensation 5) Payroll and Tax Administration 8) Workplace Safety / Workers CompHuman Resource Forecasting / Planning assistance Compensation Plan and Strategy assistance Payroll Processing (pay & tax calculations, checks, etc Workers Compensation (WC) coverageRecruiting strategy assistance Wage / Salary Administration & Research Online Payroll Processing WC - upfront deposit eliminationEmployment Application updating / compliance FLSA compliance and guidance Timeclock system Pay-as-you-go WC coverageJob Description writing Incentive pay plans Time and attendance interface capabilities Annual wage & premium auditJob Description updating Executive compensation plans Direct Deposit Experience Modifier verification / correctionADEA compliance / guidance Total Compensation statements Pay Card (debit card) processing Long term WC cost containment strategyADA compliance / guidance 4) Employee Benefits 941 Quarterly filings WC Claims administration / First Report of InjuryEEO compliance / guidance Vacation / Leave Policy development / administration State(s) Quarterly withholding tax filings and deposits Post accident drug testingHelp Wanted Ad Design FMLA compliance / guidance State(s) Unemployment Insurance (SUI) quarterly tax fi Return to Work programsHelp Wanted Ad / Job Board placements USERRA compliance / guidance W-2 and W-3 preparation and distribution Lost time frequency trackingHelp Wanted Ad / Job Board discounts PPACA compliance / guidance Federal Unemployment administration - 940 filing Safety audits / inspectionsStaffing agency assistance ERISA reporting and disclosure (Form 5500, SARs, etc State Unemployment Insurance account & rate OSHA ComplianceRecruiter / Headhunter firm assistance Retention strategies / benefit plan design SUI Experience Rate verification / negotiation OSHA 300 log maintenanceWOTC planning / administration Employee Benefits communication / education Certified Payroll Safety Manual development / updatingApplicant Tracking System Annual shopping / comparing benefit options IRS compliance / correspondence (employment related Safety TrainingCoordination of the Interview Process Annual rate negotiation CCPA compliance / guidance Certificates of Insurance administrationApplicant resume reviews Long term Benefit Plan cost containment strategies Garnishment Liability / paperwork processing 9) "Other" Employment ComplianceSupervisor Training - Interviewing Group Health Insurance coverage Lost checks - stop payments / re-issue HR Audit(s)Employment phone interviews Group Prescription coverage Responding to employment and wage verification requ Employment Rights posters cost / updatingEmployment personal interviews Group Dental coverage 6) Performance Management GINA compliance assistanceEmployment verifications Group Vision coverage Job Analysis Wage and Hour Claims responseMVA record checks Group Life coverage Skills training DOL communication assistanceCriminal background checks Group Short Term Disability coverage Organizational Development assistance EEO Compliance - EEO-1Offer letters Group Long Term Disability coverage Career Path planning Affirmative Action Plans 2) Hiring Research / Answer employee questions on benefits Succession Planning CRA (Title VII) assistanceEmployment Agreement design / writing Benefit plans premium reconciliation / payment Performance appraisal system assistance and training BLS responseConfidentiality Agreements Open-Enrollment meetings / administration Supervisor HR Training - Team Building Union / Labor Relations administrationNon-Compete Agreements Employee Eligibility / Change Tracking and Processing Goal Setting Strategies 10) Record Keeping / HRIS TechnologyNon-solicitation Agreements Health / Wellness Programs Supervisor Training - Employee Counseling Human Resources compliant forms resourceArbitration Agreements Voluntary benefits plans shopping Disciplinary/Probation policies / procedure developmen Employee files - HIPAA compliancePost-Offer Drug Testing Voluntary benefits enrollments / administration Disciplinary/Probation action - documentation / implem Employee files - Retention trackingCost-per-Hire Analysis / Control Voluntary Dental Complaint procedure policy development Employee File - Timely DestructionPre-employment Testing Voluntary Vision Supervisor Training - Complaint Procedures Employee anniversary date trackingPre-employment Testing benchmarking Voluntary Life Employee Handbook development / printing Tracking of Skills, Licenses, and CertificationsOrientation of New Employees Voluntary Disability Employee Handbook changes / compliance updating HRIS (Human Resource Information System) - system DFWA compliance / guidance Retirement Plans - Standard 401k, Safe Harbor, Roth Company newsletter HRIS - employee access trainingPRWORA compliance / administration Retirement plan fiduciary responsibility Suggestion System development HRIS - Manager web accessIRCA - I-9 compliance / administration Retirement Plan - Form 5500 filing Workforce Attitude Surveys HRIS - Employee Self Service PortalW-4 administration Retirement Plan - Annual discrimination testing Reduction In Force analysis Job CostingState withholding forms administration Pre-Retirement Counseling / Retirement Planning Absenteeism frequency tracking HR Management Reports via web-based HRISInsurance coverage acceptance / waivers 529 College Savings Plan administration 7) Workplace Liability Management Tracking of company issued propertyRetirement Plan enrollment / waiver Tuition Reimbursement Plan EPLI - Employment Practices Liability Insurance 11) SeparationHandbook review / receipt documentation Premium Only Plan (125) Administration Employee Litigation response Supervisor Training - Termination ProceduresEmployee Onboarding Process FSA (125) Administration Employee / Supervisor Training - Sexual Harassment State(s) Unemployment Claims administrationTurnover cost analysis Dependent Care (125) Administration Supervisor Training - Violence in the Workplace Attendance at Unemployment hearingsTurnover frequency tracking HSA / HRA Plans Employee / Supervisor Training - Substance Abuse WARN compliance

Profit Sharing Plan Supervisor Training - Discrimination COBRA administration and liability (new ARRA reqrmn Profit Sharing Plan Administration HIPAA administration and liability Employee Assistance Plan (EAP) Severance package design Credit Union Outplacement assistance/services

Recruiting Hiring CompensationEmployee Benefits /

Management

Payroll and Tax Administration

Performance Management

Workplace Liability

Management

Workplace Safety /

Workers Comp

(Other) Employment Compliance

Record Keeping / HRIS

TechnologySeparation


Attract BestTalent

ExpenseManagement




LeverageResources

Cost Containment


HRSystemization

HOW on a HR Tactical & Actual Task Implementation level


Here’s What a

“Strategic HR Value Road Map”

Looks Like

All Together


Business Goals

Business Strategies(to accomplish Business Goals)

HR Strategies(to accomplish Business Strategies and Goals)

HR Tactics(to support HR Strategies)

HR Activities, Products, and Services(actual implementation to support HR Tactics)



Does it do a good job justifying HR’s existence?

Okay, here’s the catch…

If you’re going to “Sell the Value of HR to Executive Leadership”, DO NOT USE THIS APPROACH!!!

All the Arrows are upside down!

CEOs don’t want to listen to employees justify their existence.

They want to hear HOW they can contribute to driving company goals.



HOW selling, versus WHY selling…I took you from bottom up, but…

Approach C-suite from top down!!!

Before you go in, do the “value allocation exercise” for all you do; want to do; or could do (for the right reason)

Show them the P&L components

Show them HR’s Strategies that support the P&L

Show them HR Tactics (Employee Lifecycle works perfectly here)

Then let them pick what is important to them (true C-suite folks will gravitate to the “Strategy” levels).

And show them all the specific “HR things” that accomplish their picked Strategies.


Why Selling

The “Let me tell you why all I do is important”approach is cumbersome and overwhelming with something as vast as HR, and the C-suite does not have the patience for it.

How Selling

Answers the CEO’s question of “How can you do that for me?”, asked because they are interested. You don’t have prove your worth. If you show them a reasonable compelling list of strategy-specific solutions, you’ll quickly be seen as an expert.



About Rob Blunt• President and Owner of 4-Profit-HR and PEO Consulting Group since 1998

• 24 years in “HR Sales” – direct, sales management, and as trainer / consultant

• Started with Administaff (now Insperity) in 1987

• 1st year selling, on 100% commission basis, I with 113 small businesses in Baltimore, and no one “bought”. Zippo. None.

• 8 years later, still 100% commission, was making $220,000/year

• I learned that it’s all about the other person, when you want to sell something (reading recommendation: How to Win Friends and Influence People, by Dale Carnegie)

• Worked with ~80 firms doing Sales Training, or Sales System Consulting

• My passion is to help HR Professionals - Consultants and Employees – be more successful and make more money

• Sales “Tool” developer

• US Naval Academy – mechanical engineering, with follow-up studies in nuclear engineering

• Contact Info: 410-315-6980 or [email protected]

http://www.4profithr.com/


How to Sell theValue of HR to



How to Sell theValue of HR to


Thank You!

Rob Blunt, President

www.4profithr.com

410-987-1223

[email protected]

http://www.4profithr.com/

mailto:[email protected]

selling the value of hr to executive...

Documents