Strategic HR Weekly "Sales" Tip #1

Nov 10, 2014
Strategic HR Weekly "Sales" Tip #1

Why "Compliance" Alone Doesn't Earn HR a "Seat At The Table"

Did you exceed the speed limit by 1 or maybe 2 miles per hour on an interstate in the past week or so?
Have you ever thrown out a piece of 'junk mail' you got for someone who used to live in your house?
Have you ever downloaded music or a movie without paying for it?
Did you skip filing your personal income taxes last year?

If you answered YES to any of the above, man, they are going to lock you up for life! They are all violations of federal law!

Well okay...... maybe not 'for life', but for a really long time. Right??

No?? Maybe just for that 4th thing - you know the IRS / income tax thing. They kind of have a way to track that, huh? And the odds of getting caught for tax evasion are 'significant'. But the others? Hmmm.... You're not a career criminal, and "stuff" accidentally happens occasionally.

So when HR consultants go into an SMB and tell the owner there's HUGE risk due to all the employment laws in place, why don't they shake in their boots, crumble to their knees, and beg to sign up for your help with zero concern for the cost or your fee?

Because only a handful of employment laws have required paperwork associated with them that HAS TO get sent to a government agency that's waiting for it and tracking it. And 90% of the paperwork of those laws is usually being handled in the SMB space by competent payroll service companies. For the rest of the laws that don't have any paperwork that has to be sent in to some regulatory agency, as long as reasonable effort has been made to comply and there's no obvious, blatant, purposeful negligence involved, the chances of the "employment police" battering down an SMB's door, just to "check up on things" is really pretty small. Seriously!

So is reducing employment risk still a valuable part of HR's offering?    YES!!    Absolutely!!    It just makes good business sense (if the price is right for the added protection). But remember, successful "sales" is all about seeing things from "the buyer's" perspective. And the C-suite (your "buyer") that is trying to DRIVE Profits, gets real tired of HR if all they hear is compliance-police and paper-pusher stuff. When I teach HR Value at VISTAGE CEO sessions, they tell me this all the time! They'll be much more open to spending new money on HR if they see a 'business-case' for connections to other parts of the P&L.


Rob Blunt
President, 4-Profit-HR

phone: 866-868-5885

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