THE

100

PRINCIPLES OF HIRING ACCURACY

PRINCIPLE

#42
IF YOU VIEW HR AS A COST CENTER, YOU'RE DOING IT WRONG
One misconception in business is the idea that unlike other departments, HR is just a cost center. So long as HR is over Hiring & Talent Development, this couldn't be further from the truth.

IF YOU VIEW HR AS A COST CENTER, YOU'RE DOING IT WRONG

One misconception in business is the idea that HR is just a cost center.

A cost center = a department that doesn't directly add to profit, but still costs the organization money to operate.

2 areas make HR undoubtedly NOT just a cost center (listed in order of importance):

1) HIRING
2) TALENT DEVELOPMENT

At the end of the day, people create all value.

You might say, but what about our 'processes'? Or 'machines'? Or 'products'?

Those things create value too, but they're all created and then employed by people.

Who is responsible for selecting your people?

>HR (or more specifically, Talent Acquisition/Recruiting).

Who is responsible for training those people?

>HR (or more specifically, Training & Development)

Will hiring better people & then training them to be even better improve profit for your company?

Duh. I'd argue more than any other area of the company.

If you view your HR department as just a cost center, you're doing it wrong.

Do you agree?