HR Manager Alert! Don’t Get Cut Out of the Strategic Planning Process

By Tony Deblauwe

When it comes to strategic planning, employers should be eager for input regarding how their human capital is being handled. However, the HR manager/director is often left out of important decisions or merely given token attention at meetings. Human Resource executives have developed an undeserved reputation for only understanding the soft and fuzzy side of business (check out Fast Company’s scathing overview of HR).

Another recent scathing article in CFO.com highlights this attitude perfectly. In this piece, a Rutgers University professor is quoted as telling an audience of 300 financial executives: "HR people try to perpetuate the idea that job satisfaction is critical; but there is no evidence that engaging employees impacts financial returns." With misinterpretations like this running rampant, it is no wonder the average Human Resources Director has difficulty gaining a place at the table for strategic planning.

Put a Price Tag on It

Departments like Production, Sales, and Engineering have something that HR doesn’t: numbers that can be readily interpreted. You actually have plenty of data at your disposal. This information just needs to be presented in a way that is easy for other executives to understand. You may have to begin with the basics to get your points across. A comprehensive turnover calculator is a good place to start.

Besides company specific data, you should also be familiar with larger trends. For example, the BLS has shared these important findings:

·         Over the long term, increases in real hourly earnings for workers are linked to productivity gains

·         Since 2003, gains in the manufacturing sector have been due to a decrease in hours worked  relative to output

In other words, the key to productivity and a healthy U.S. economy is a well trained, efficient workforce.

 

Explanation Time

Don’t assume company officers know what HR terminology means. One reason the term “employee engagement” is getting a bad rap is because people think it just means making employees happy. Not true. Some workers may be perfectly “happy” sitting around twiddling their thumbs all day. In contrast, engagement is typified by increased productivity, fewer mistakes, and innovative problem solving.

U.S.Data analysis performed by Global 360 reveals that lost productivity is costing businesses $4.4 billion dollars per day. When upper management understands this, they are more likely to agree that employee engagement is a vital aspect of strategic planning. Of course, you need to put in the time and effort to understand the big picture as well. If you don’t grasp how other departments operate and what their goals are, you won’t be able to come to an agreement about the company’s larger vision.

 

Honing Your Negotiation Skills

·         Go into every meeting with clear objectives, an open mind, and a win-win solution

·         Over-prepare with numbers and data but don’t present it all at once

·         Try to remain emotionally detached

·         Spend more time listening than you do talking

·         Find common ground with each person at the table

·         Avoid making unnecessary concessions

·         Be prepared to compromise if you must

·         View constructive disagreement as a way of moving forward

·         Don’t give ultimatums - instead, always leave the door open for further discussion

 

Finally, be patient. Learning successful negotiation skills takes time. Start small by doing strategic planning within your own department. When other executives see positive results, they are more likely to accept your input.