Oswald, author of the Oswald Letter, suggests that HR can start by concentrating on three areas: turnover (see yesterday’s Advisor), productivity, and absence. Here’s how to present to him:
(That tells me what my ROI is.)
Now you’re talking my language, Oswald says.
What if you could increase productivity by just 1 percent? Oswald asks.
If you have average revenue per employee of $150,000, and your productivity gains drop to the bottom line, that’s a $1500 savings per employee. Got 1775 employees (as in yesterday’s example)? You just saved me $2.66 million, Oswald says.
What if you could reduce absenteeism by 20%? Oswald continues.
Say the company’s average salary is $33,500. That gives a cost per employee per day of $130. If your average employee misses 10 days a year, that’s $1300 per employee, or $2.3 million for 1775 employees. Reduce by 20%, that’s saving me roughly $460,000 more, says Oswald.
Let’s total the savings from turnover (in yesterday’s issue), productivity and absenteeism, Oswald says:
Cost Reduction Project
Think you have Oswald’s attention now?
Here are his Four Lessons for getting a seat at the table in the C-Suite:
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Find out what the top three strategic initiatives for the company’s leaders are. Attend industry events to understand the issues, and then figure out how HR can be involved, Oswald says.
Managing up, just one more daily challenge—in HR, if it’s not one thing, it’s another. Like FMLA intermittent leave, overtime hassles, ADA accommodation, and then on top of that whatever the agencies and courts throw in your way.
You need a go-to resource, and our editors recommend the “everything-HR-in-one website,” HR.BLR.com. As an example of what you will find, here are some policy recommendations concerning e-mail, excerpted from a sample policy on the website:
Privacy. The director of information services can override any individual password and thus has access to all e-mail messages in order to ensure compliance with company policy. This means that employees do not have an expectation of privacy in their company e-mail or any other information stored or accessed on company computers.
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E-mail review. All e-mail is subject to review by management. Your use of the e-mail system grants consent to the review of any of the messages to or from you in the system in printed form or in any other medium.
Solicitation. In line with our general non-solicitation policy, e-mail must not be used to solicit for outside business ventures, personal parties, social meetings, charities, membership in any organization, political causes, religious causes, or other matters not connected to the company’s business.
We should point out that this is just one of hundreds of sample policies on the site. (You’ll also find analysis of laws and issues, job descriptions, and complete training materials for hundreds of HR topics.)
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