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Life’s too Short to be a Drone.

Mindset Group - Thursday, April 15, 2010

By Aaron Dodd, Operations Director

The other day I took a call from a young HR practitioner enquiring about a position with Mindset as an HR consultant. She is a graduate with a good couple of years experience at officer level in public service and an SME. She was disillusioned with her current role feeling that it was too administrative, lacked intellectual challenge and wasn’t strategic enough. It was clear she had a real passion for HR and true belief in what good “HR” can do for a business and ultimately its bottom line.

Unfortunately we weren’t able to offer her a role, but her predicament is all too common. Many people study HR at University/TAFEs for either the wrong reason or because the profession has been misrepresented to them. After a couple of years in the “real” commercial world it dawns on them that they could well have made the wrong career choice. They then fall into one of three categories;

  1. Those that give in to the system and become administrative drones, often becoming increasingly bitter and institutionalised over time.
  2. Those that fight on valiantly against the forces of evil to try to effect change in their organisations and realise their dream of what HR should be for the business. Some will succeed, most won’t. Those that do succeed will go on to have stellar Director level careers. It’s a tough gig and I tip my hat to those who have beaten the system and made it.
  3. Those that leave the profession completely.
When I talk about “the wrong reason” to go into HR, the most common ones that I hear when I ask HR people why they did it are “I love people” or “I love talking to people” or “I love helping people”. For HR to be relevant and a vital part of the commercial world these practitioners need to understand that their role is to muster their available human resources to deliver the business strategy effectively and efficiently so as to deliver the best possible bottom line for the company. HR people must remember that they are their company’s advocate NOT the staff’s.

By “misrepresentation” I mean that they have been sold a pup by academics. Many HR academics that I have met know the theory intimately, have a passion for the subject, but lack real world experience and thus have a totally deluded understanding of how HR is perceived by most decision-making business executives. They are akin to Catholic priests giving marital advice.

So why couldn’t I help out my young HR practitioner? Through no fault of her own, she simply needs more commercial experience. A successful consultant is a salesperson. It is no use having the theory and the ability to deliver if you cannot win the assignments in the first place. To be a successful salesperson selling HR consulting services requires a broad and thorough understanding of business, finance, commercial issues and strategy. Being able to engage with a Managing Director or CFO at this level so as to be able to quickly and succinctly identify their BUSINESS issues and present AND CLOSE an HR solution is paramount. Then, and only then, will your HR delivery skills come into play.

So for HR people who are looking to move into HR consulting or make yourself more relevant to the/any business, I urge you to develop your business skills and your networks (not with other HR people, but with business people). Learn to sell. Leave HR for a while. Work in other disciplines (particularly sales). Gain experience. Don’t waste your time with administration-oriented HR diplomas, study business, do an MBA.

Whatever you do, don’t take the first option. Life’s too short to be a drone.

How accountants can make recruiters’ jobs much easier

Mindset Group - Monday, October 26, 2009

By Aaron Dodd, Operations Director, the Mindset Group

Over the last few weeks Mindset’s talent division started to receive an unusually high number of applicants from a large American medico-pharma company with a significant presence in Australia. This was unusual as this company has until recently had a high reputation for good HR practices and high staff engagement. Their employees have been hard to attract! 

Our consultants started to probe deeper as to the reasons for the sudden change. It seems that with the GFC the company’s margins were being eroded so the accounting department had been asked to start clawing back money where ever it could be found. Being a listed US company, short-term quarterly reporting is paramount. Actions to make the books look better can often contradict good long-term HR policy. This was just such a case.

Mindset was given two clear examples of this;

1. Earlier in the year, high achieving salespeople, as a reward, were given the opportunity to travel to an international convention in Asia. These junkets are common in the industry. They were flown there, accommodated, entertained etc. Before they departed they were given the HR spiel about being on their best behaviour as they were representing the company etc. They travelled and had a good time. Some months later all the attendees received an invoice for Fringe Benefits Tax (FBT), and not insignificant amounts. Naturally they were all mortified. Most would not have gone had they known they’d be billed for it. Great reward huh? It turned out that the accountants had decided after the event that the FBT should be paid by the employees and not the company as would be the normal practice.

2. The head office has a gym on site that all staff can use. Some years ago for fairness it was felt that interstate staff should also have gym access, so memberships at local gyms were sourced and paid for by the company. This year, for the first time, those interstate with company-paid gym memberships got charged FBT. Naturally those head office staff with the in-house gym didn’t get the FBT bill. So much for fairness!!

Both these actions by an errant runaway accounts department have now resulted in a significantly disengaged and demotivated professional sales team, many of whom are now looking for work elsewhere. This company’s annual revenue in Australia is in the $100m+ range and by any measure is very profitable. Further the Australian business probably accounts for less than 5% of their global income so the local FBT savings are insignificant compared to the long-term damage the accounting policies and actions have caused. The costs to the business will be significant as recruiters can now easily place these staff into their competitors.

According to the applicants, the HR department seems blissfully unaware or incapable of overturning the decision. Based on this observation alone it is clear that the company’s publicised vision for HR/employee of choice is nothing but corporate doublespeak.

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