Strategic HR Weekly "Sales" Tip #30
Employment is one of the most regulated and potentially risky parts of running a business. Educate your C-suite on the fact that there are three general risk considerations that go into successfully accomplishing the strategic HR objective of Business Protection.
3 Aspects of Business Protection...
If you look at the red vertical bars in my diagram below, they also generally fall into the three "types of HR" shown across the bottom.
Remember, "HR" is overwhelming to most non-HR members of the C-suite. If you break it into smaller "chunks" for them, they'll more quickly understand WHY and HOW the initiatives you are suggesting will impact their bottom line.
- Mandatory risk - meaning the many things an employer has to do, as soon as they hire employee #1. And those regulations increase as more employees are hired. Don't do those things, and there are significant consequences.
- Then there's voluntary risk - things an employer might do, because they could benefit his or her business, but they're regulated too, so they bring risk. Simple example there is a 401k plan. Not required by law. Business owners put them in place to compete for top talent to drive their business. But then they take on fiduciary risk of managing the plan properly on behalf of their staff.
- And lastly there's proactive risk reduction, which may sound a bit weird. It's actually where most SMBs are lacking the most, simply because they didn't have the internal time and/or expertise to address it. These are things a company can do, that do not bring risk with them, and are specifically done to reduce and mitigate employment risk. A simple example would be non-solicitation agreements to protect against revenue loss.