Developing a Strong HR Strategy

When it comes to HR advice, Sharlyn Lauby serves up a generous pour. We were lucky enough to have the opportunity to pull up a stool and ask the author of the popular blog HR Bartender some of our biggest questions about establishing HR at the expansion-stage.

Join in as we discuss the first HR role companies should hire for, the difference between culture and policy, HR metrics and ROI, and the trends Sharlyn sees impacting HR heading into 2013.

What characteristics should founders/CEOs look for when hiring for their company’s first HR role?

Obviously, companies will look at what their needs are at the time. But they should also consider what this role will do as the company grows. It’s unfortunate, but I’ve seen situations where the company only hires for the moment and as the company grows the HR person isn’t given the support (in terms of training/professional development) to grow along with the needs of the company.

Do you have any specific suggestions for how a company can make sure this doesn’t happen?

The Society for Human Resource Management (SHRM) released a competency model earlier this year. It includes a self-assessment and competencies at the entry, mid, and executive levels of experience. You can check it out here.

How do you dispel the misconception that a company establishing HR is a step towards losing its startup culture?

Culture and policy are two different things. A well-crafted policy should not torpedo corporate culture.

For example, one of my clients has a strong sense of community. They spend a lot of time giving back and volunteering. I asked them if they wanted to offer an employee benefit of paid volunteer time. They loved the idea. We researched different options and developed a policy. The policy supports their culture.

What is biggest contribution HR can bring to a company to help it scale?

One of the challenges start-ups face is a lack of consistency. Every employee gets hired with their own unique “deal”. As the organization grows, so does the number of “deals”. At some point, it becomes unmanageable – both from a volume and a fairness perspective. For example, HR can help the company craft the best compensation and benefits structure to align with their culture. I’m pretty sure the goal isn’t anarchy.

So HR should anticipate the needs of the company and help it grow. Ask the question – if the company doubles in size, what would that look like? What will employees need? What will managers need? Then, what does HR need to do to support that?

What are the best metrics senior management at growth-stage companies should monitor to measure HR ROI?

I’m assuming with growth comes lots of recruiting. Staffing related metrics such as cost per hire, turnover cost, time to fill, and yield ratios will be very beneficial. As a HR pro, you do not want lack of hiring to be the reason the company isn’t meeting its goals.

Do you have any suggestions in terms of benchmarks, or how HR should work with senior management to establish expectations and get everyone on the same page?

There are a couple of ways to look at benchmarks. First in terms of the industry. Let’s say we’re a tech firm. Does the technology arena publish any kind of best practices study? This gives a company the opportunity to compare themselves with their competitive set.

The other is based on location. Using the technology example, if my company isn’t in Silicon Valley, then I might be competing for talent against companies not in the tech business. Find out what’s happening in your community.

Many consulting firms offer executive research about best practices. One example is the IBM Global CEO Study – very interesting read about what the C-Suite is thinking.

Are there any examples of companies incorporating/utilizing HR in innovative ways you would recommend expansion-stage companies look to as potential models?

Both Forbes and Fast Company publish a Most Innovative Company List. The Society for Human Resource Management shares the “50 Best Small & Medium Companies to Work for in America”. I believe it can be valuable to read these lists for ideas and inspiration, but keep in mind your own unique culture. It’s also great for recognizing trends.

What trend(s) do you see having an impact on HR moving into 2013?

I’m hearing a lot more talk about problem solving and process improvement. Companies want employees to be able to figure out stuff on their own and they are allocating resources to make that happen. With companies operating with fewer layers, managers today do not have the time to fix every little issue.

I also believe companies are ready to invest in leadership development. There’s too much talk about turnover and disengagement. Organizations recognize the impact of that on the bottom line. They can’t get ahead if the company is constantly churning their employees. The cost to develop good leaders is less than the expense of constant turnover in a disgruntled workforce.

Lastly, I see the acceptance of mobile and social technologies. Many organizations held off dealing with new technology because they didn’t see how it fit their business. Now, it’s essential to remain modern and relevant.

 

Do you have HR questions? Ask Sharlyn below!

And for more expansion-stage HR advice, check out our recent HR roundtable series.