The Human Resource budget is one of the biggest budgets a CEO sees on his desk every day. Gallup "estimates that actively disengaged employees cost the U.S. $450 billion to $550 billion in lost productivity per year."
As a CEO, you are constantly under pressure to meet shareholders' needs and stay under budget. Your human capital is one way to keep a healthy chunk of your budget in check. Our CEO, Patrick Thean, shared with me some ways a successful CEO should think about Human Capital Management.
1. Communicate a Clear Strategy
During your planning sessions, make sure that each strategic initiative has the proper human resource so that each initiative gets done, successfully!
2. Execute Your Strategy
Now that you are clear on the strategy and planning, how are you going to execute your strategic vision?
What is your hiring process? How will you get the right players on the bus? As a CEO, you should have a hand in what is involved in the hiring process. As the leader of your organization, the results of your new hires will have a large impact on your company.
3. Forget About Retention
Instead, focus on growing and developing your team. Begin with the end in mind when thinking about your workforce: Where do you want them to be a year from now, five years from now?
Most workers now are very mobile in their role. Gone are the days of 50-year careers at one place. However, if you can retain and engage your workforce, you can save more than just money!
4. Fire Your Bad Managers
According to Gallup, "People join companies, but leave managers."
Your bad managers are the number one reason your A players leave. "The fish rots from the head down" is one of Patrick's favorite management sayings. If your culture is weak and you are starting to notice a jump in turnover, you need to turn your eyes towards management.
Want to learn more about workforce management and hiring? Check out our amazing speaker line-up at Breakthrough 2017! Gallup's Tom Hoff has a great session on "How Employee Engagement Can Help Increase Profitability by 21%."
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