HR & Finance

1. HR & Finance Cats and Dogs OR Beneficial Relationship Presented by: David G. Hanna, Managing Member Paystubz

2. IS THIS YOUR RELATIONSHIP WITH FINANCE/ACCOUNTING? It doesn’t need to be.

3. General Finance Work Personality PRAGMATIC ONLY LOGIC USED IS IF/THEN STATEMENTS. HYPER ANALYTICAL DOGMATIC

4. General HR Work Personality Comforting Knowledgeable Adaptable Empathetic Organized Relationships are important.

5. Excite your Finance Dept with: • Numbers that matter to finance for turnover reduction. • Less expensive training. • Benefits with less cost. • New analysis that THEY get. • Understanding each other - Better Jargon! • You might just start to win them over!

6. TURNOVER FOCUS. Hire Slowly. Fire Quickly.

7. Improved Interviewing/Screening 20 studies proved: Better interviewing/screening applicants can reduce turnover by 42%

8. WHY focus on interviewing/screening?How much can HR really control? • Day to Day work environment of staff? • LOW level of influence/control. • Daily Manager interaction with staff? • LOW level of influence/control. • Applicant screening process? • HIGH level of influence/control.

9. Focus on what you can control. • The Right Human Personality in a poor to marginal work environment is more likely to be long-term employee. • The Wrong Human Personality in a GREAT Work Environment is not likely to be long-term employee.

10. Right People – Right Position • Know the work environment for THAT position. • Screen personality accordingly. • Identify specific negative job characteristics which are used to: • Create custom screening instrument in order to screen out individual job applications who are most likely to have negative reactions to specific job characteristics.

11. BETTER SCREENING: One Method • Job Congruence System. • Designed to assess the compatibility of job demands and applicant interests. • Most useful when a lot of negatives associated with job duties. • Customized to THE JOB’s known work environment. • More details included at end of slides.

12. CALCULATING TURNOVER COST Finance HR Often focuses on direct costs (easy to quantify): Labor to interview/screen. Labor to train. Cost of advertisement. New uniform/equipment. Etc….. Often focuses on indirect costs (more difficult to quantify): Reduced/lost productivity. Lower morale. Increased risk of injury. Etc….

13. Turnover Cost Calculation Method • Let finance win this argument? • Either way: Turnover is expensive and they’ll generally be agreeable with wanting to avoid turnover. • Slowly introduce the real costs of turnover through persistent education. • Allow Operations/Managers to explain the indirect costs.

14. TRAINING Containing/minimizing the costs.

15. TRAINING – the Value proposition • What finance (and some managers) hear/think when a training session/program is mentioned: • Expensive and inefficient use of time. • Just another excuse to not work and eat donuts. • Gees, I have things to do – my people need to be producing at all times! • Metaphors/Sayings: • Not training employees is like a baseball team that only plays games against opponents and never practices. • Ever see a World Series Champion that never practiced? Excellence requires practice. • Amateurs practice until they get it right – Professionals practice until they can’t get it wrong.

16. TRAINING PROGRAM STRUCTURE

17. How to win the training argument • Make your entire training program(s) LESS expensive by: • Leveraging Technology. • Scrutinize/remove travel costs. • Use internal talent for your ‘teachers’. • Assign SMEs (subject matter experts) internally.

18. Leveraging Technology in Training • Offer training ‘on demand’ – CHEAP! – Finance LOVES cheap! • Reduce the TIME perceived to be ‘lost’ during training. • You Tube video library. www.youtube.com/paystubz • Intranet library of resources. • Why keep teaching the same ‘session’ over and over in person. RECORD IT! • Keep ‘self-serve’ training to MICRO topics. • More quick and simple but effective and easily repeated. • TOOLS: video camera, even your smart phone! • SOFTWARE TOOLS: screen capture software/recording (Snag It, Camtasia, Vimeo, Screen Flow from Telestream.net • Build/store Your Own INTRANET (FREE): Google Sites

19. Leveraging Technology in Training See a sample that leverages technology, go to: www.khanacademy.org

20. Reduce Travel Costs of Training

21. You’ve hired teachers!

22. You already have SMEs

23. Benefits on Special – FREE! Consider unique benefits to add! Especially when other benefits may be cut.

24. Employee Benefits – Perception. • Perception IS reality for the individual. • AND – do employees perceive benefit the same way you do?

25. FREE benefit ideas!

26. FREE benefit ideas-continued.

27. Impress Finance with Your Knowledge READ – TRAIN yourself.

28. Improve your financial analysis skills:

29. The Jargon/Communication Gap What you say, what they hear.

30. What you say, what they hear. HR Says: Finance Hears/Thinks “We’ve realized from our last employee survey, the staff does not like the alternating holiday schedule. It seems we’re not incentivizing them enough.” “So, this alternating holiday schedule that seems perfectly reasonable and fair is now going to cost us! Why don’t you just say, from our staff surveys, people want to be paid more for working on holidays. And, why don’t we just tell them to get on the bus or off the bus, and work every other holiday or work somewhere else.”

31. What might have been better phrasing: • Finance people would hear this statement! • We’ve realized from our last employee survey our turnover might increase due to the new alternating holiday schedule. We feel it would be worthwhile to provide some additional compensation that would be far less expensive than any increased turnover. Here are the numbers: estimated possible turnover from the change in policy 4 staff (at $10,000 per lost employee) = $40,000, cost to provide additional pay for alternating holidays: $13,000. We’d prevent an additional $27,000 in cost.

32. Cats and Dogs CAN get along!

33. Presented by: Paystubz David G. Hanna, Managing Member david.hanna@paystubz.com 605-721-2480 www.paystubz.com South Dakota’s Largest Human Capital Management Software/Service Provider

34. REFERENCE FROM PRESENATION • The Job Congruence System (JCS) • The Article : An Innovative Approach for Cost-effective Turnover Reduction - by John F. Binning, Ph.D., and Anthony J. Adorno, M.S. of The Human Resource Group. • Available online at this link: http://www.aboutpeople.com/PDFFiles/The%20Right%20Person%20For%20the%20Job.pdf • Or, this link: http://www.callcentres.com.au/staffturno.htm