Here’s the most important business finance formula you’ll ever need: P=I-E.
Don’t you just wish the HR business was as easy as pie! It is, it is, a DisruptHR audience in Capetown, South Africa learned this spring. “As HR business,” Alain Joffe explains in his 5 minute talk, “You’re going to want to focus on profit equals driving productivity and minimizing human cost.”
Got it? Oh, wait. Complexity is about to sneak in.
“How do you know what to focus on? How do you know where to start? What do do?” asks Joffe, as he points to the big screen behind him filled with HR tasks beginning with “Absenteeism” and running through “Voluntary turnover.” “It’s quite frankly overwhelming. I don’t envy your job,” says the business development manager at Mygrow.
Joffe doesn’t leave us hanging. He points to research that offers some help. First, he runs through the elements HR professionals need to take into account in building a business case for their initiatives. There are the cost elements: productivity, staff turnover, absenteeism, presenteeism and conflict. There are what he says are levers that affect the cost side: leadership, incivility and stress.
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For the next 3 minutes Joffe uses what research has found about the impact of these levers to show how how HR can build a financial model persuasive enough to convince the C-suite of the ROI of programs pulling on these levers.
In partnership with DisruptHR, TLNT presents some of the best Disrupt presentations from events across North America and now the world. Disrupt talks are modeled on the TEDx concept: Short, to the point talks on all things HR — talent, culture and technology.