Although your org chart shows one HR Department you actually have two.  One is Personnel Administration.  The other is Human Capital Management.

The problem is these two unrelated functions are combined and, as a result, both are sub-optimized.

PA deals with governance.  Its job is to keep you out of jail. HCM is supposed to be a business function that adds value to your enterprise.  Having PA in the same place as HCM sucks the value out of the latter because so much is tied up in keeping regulators off your back.

TIP:  Split the functions.  Its been done. You might even put most of PA under your CFO.  Why not?  PA and HCM serve two different purposes and nothing but tradition keeps them in one shell.

Once separated you make better resource commitments and transform HCM from an expense center to a value adding function.

Jac

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