See if these comments from an article about the real costs of poor people management practices sound familiar:
No one knows better than HR professionals that an organization’s human capital is its most important asset. The positive impact made by a single motivated manager, an innovative thinker or a newcomer with an ambitious new project can reverberate positively within businesses of any size. Conversely, the burden of people performing below par — the hours spent correcting mistakes, the money wasted on unproductive performance, and the costs of having to recruit and train replacement staff — take a powerfully negative toll on the bottom line.
Yet, far too many executives today continue to regard HR as a non-strategic cost and to under-invest in hiring and employee development solutions. Why would astute executives take this position? Organizations have long had a difficult time connecting human performance costs with their root cause. Underperformance, and its associated costs, results in large part from having the wrong people in jobs. Until the person-job match connection is made, organizations will continue to under-fund proactive investments to ensure that the right people are filling jobs in their organizations, and to over-fund reactive investments in dealing with employee performance problems.
As the world merges into one global economy, human capital is, more than ever, the key driver of profit and innovation. The advantages will go to those who can redefine skill sets, reconcile cultural differences, and match the right people to the right jobs through intelligent and objective assessment.
For those who follow current trends in human capital, this excerpt may sound very familiar. Would it surprise you to learn that this was taken from an article published in 2004?
In 2004 Facebook was founded, blogging was named the word of the year and George W. Bush was re-elected President. The Dow Jones Average closed at 10,783 and the stock price of Valero Energy had risen 93%. The top grossing movie was Shrek 2 and the top selling book was The Da Vinci Code.
The world has changed dramatically in 12 years. In business, marketing/advertising is done on social media. Purchasing and distribution is now supply chain. Cost reduction is focused on sustainability. Tightly controlled corporate data has moved to the cloud and is accessed via BYOD. Yet for many organizations, people practices have not evolved nearly enough.
What will HR and people practices look like 12 years from now? Will business executives in 2028 look back and be amazed that managers did annual performance reviews? Or that companies ran job postings to attract talent? Or that people relied on employers for their health insurance? Or that workers commuted every day to an office? Or that US employees only received an average of 2-3 weeks of vacation per year? Or that quarterly profits drove corporate behavior? Or that pay rates were based on tenure? Or that Human Resources was called that?
Given the amount of disruption in every aspect of business, HR and people practices are unlikely to look the same as today (and 2004). What will it look like? How will HR evolve?
For help shaping the future of your people practices, please contact us.