Michael W. Mercer - Turning Your Human Resources Department into a Profit Center
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Turning Your Human Resources Department into a Profit Center
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Turning Your Human Resources Department Into a Profit Center
author
:
Mercer, Michael W.
publisher
:
AMACOM Books
isbn10 | asin
:
0814458416
print isbn13
:
9780814458419
ebook isbn13
:
9780585040516
language
:
English
subject
Personnel management, Labor costs, Profit.
publication date
:
1989
lcc
:
HF5549.M349 1989eb
ddc
:
658.3
subject
:
Personnel management, Labor costs, Profit.
Page iii
Turning Your Human Resources Department Into A Profit Center
Michael W. Mercer
Page iv
Library of Congress Cataloging-in-Publication Data
Mercer, Michael W., 1950 Turning your human resources department into a profit center.
Includes index.
1. Personnel management. 2. Labor costs. 3. Profit. I. Title. HF5549. M349 1989 658.3 88-44/024 ISBN 0-8144-5841-6
1989 Michael W. Mercer, Ph. D. All rights reserved. Printed in the United States of America.
This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019-7606.
Printing number
20 19 16 17 16 15 14 12
Page v
To Maryann Victoria, my precious one
Page vii
PREFACE
This is a unique book on human resources management. Most such books focus on how to provide good service. In sharp contrast, this book zeros in on how to provide good service to an organization and measurably improve corporate profitability.
This book will prove valuable to at least three types of managers: (1) human resources managers and professionals, (2) executives who oversee the human resources function, and (3) other types of managers who wish to know how to turn their most valuable assets peopleinto profits.
Two interesting incidents arose while writing this book. The first one involved a woman who called me after having attended one of my seminars on human resources profit center techniques. She happily recounted how she had used techniques presented In the seminar (and discussed in this book) to measurably improve her employer's profits by $1.1 million. She did this in only six months.
She told me that she had been hired as a personnel manager. The man expectation placed upon her was that of providing the usual human resources services. Her employer never asked her to do anything to enhance its profits.
Now, however, as a result of her profit improvement accomplishments, she has received a promotion and now participates in all top management meetings. She also earns a good deal more money. She is a profit center manager, not a cost center manager.
Shortly after hearing from this successful woman, I called an official of a Fortune 100 company. This company is renowned for certain of its human resources programs. Many articles have been published on these services. So, I assumed that this company would provide lots of examples of how its human resources management techniques had measurably enhanced profitability.
To my astonishment, the official told me, "We don't bother to measure the cost benefits of what our human resources function does. We Just figure that it works, so why bother measuring it in dollars and cents?"
Page viii
I was astonished that this company had never examined its human resources programs in terms of their impact on corporate profits. After all, this company was so large, had so much money, and employed so many respected human resources professionals. Surely, it possessed the funds and the brainpower to perform such cost-benefit studies.
So, I asked, "How about the work of [name of company's highly qualified human resources manager]? Hasn't he measured how his activities improve your company's profits?"
The company official hemmed and hawed. "Oh, well, ah, let's see. I guess you haven't heard. [Name of highly qualified human resources manager] is no longer with our company."
"What happened?" I asked, although I anticipated the inevitable response. "He worked for you for so long, why would he ever leave?"
The official replied, "Well, I can't go into details But, he was let go because we weren't sure his work really helped the company."
In other words, this company "de-employed" that human resources manager because he did not prove that he had upgraded the bottom line. In effect, he had operated from a human resources cost center perspective.
Such tales are widespread in the human resources community. Every month brings news of many fine human resources managers losing their jobs, or staving in stagnant positions, because they do not show how they measurably improve company profits.
This book aims to change this situation for the better. It features an easy-to-use, six-part Planning Model to guide all profit center endeavors. Chapter 3 also contains a handy Planning Schedule for pinpointing how to make the human resources profit center a reality. This book also provides you with dozens of human resources-oriented solutions to specific business problems. These solutions are accompanied by case examples that show you how to put the human resources profit center into action.
The next step is yours to take. As Will Rogers observed, "If you're on the right track, you'll get run over if all you do is just sit there." I fervently hope you take action to become like the woman who improved her company's profits by over $1 million in only half a year. She is now reaping the rewards of being a human resources profit center manager. I also believe that you do not want to meet the fate of the highly qualified human resources cost Center manager whom I have just described.
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