So how much does it cost to drive up revenues by 1%?\u00a0 There are many possibilities including:<\/p>\n
So which of these has the largest actual impact to the bottom line?\u00a0 It\u2019s not as if I or HBR can provide any answers for your specific situation, but it certainly is an interesting idea to ponder.\u00a0 It\u2019s not that any of these is the \u201cright\u201d answer, but understanding that there may be an optimal mix for your spending.\u00a0 Note that the above is not a comprehensive list.<\/p>\n
Of course you need a constant influx of new talent from outside your organization.\u00a0 Without new talent, your existing talent actually stagnates.\u00a0 New talent from outside not only brings fresh faces, but also ideas and spurts of energy into an organization.\u00a0 New talent from outside is also a quick way to fix many problems such as departments that may be creeping along at too slow a pace.\u00a0 However, new talent is quite expensive does not bear the historical perspective of incumbents.\u00a0 They are often prone to repeating mistakes that have been made before, because they were not there to witness it the first time.<\/p>\n
Developing talent is probably less expensive, but the lead time on this is considerable.\u00a0 Senior talent may take years and even decades to develop.\u00a0 What you get in return though is a deep understanding of not only the product at hand, but also the entire history of the R&D that went into a product.\u00a0 As you make these choices and forecast your talent needs, you\u2019ll also be projecting the ratio of senior talent you\u2019ll be needing in the future.\u00a0 How you decide to staff your learning organization or your staffing organization will be critical to your ability to execute on your desired mix of talent sources.<\/p>\n
In terns of rewards, I could also have phrased this as short term and long term rewards, but I find the opposition of rewards and engagement more interesting.\u00a0 Basically you\u2019re asking of you should invest in creating motivating jobs and a motivating workplace, or if you should introduce motivating factors such as monetary compensation.\u00a0 The reality is again that the answer is some sort of a mix.\u00a0 But this is exactly the type of philosophical challenge we all have.\u00a0 If we\u2019re dealing with salespeople, the mix is weighted towards cash.\u00a0 If we\u2019re dealing with service reps, we probably are more interested in engagement.\u00a0 The mix may also change depending on the type of industry you are in, or your company\u2019s position as a market leader or laggard.<\/p>\n
All too often we cruise along adding to HR budgets so we can keep up with reactionary demands.\u00a0 Not often enough to we sit back and evaluate how and where we spend our money.\u00a0 Remembering that our jobs are to shape the organization\u2019s future workforce, this shaping is fully dependent on the choices we make today.<\/p>\n","protected":false},"excerpt":{"rendered":"
So how much does it cost to drive up revenues by 1%?\u00a0 There are many possibilities including: Cost of acquiring new talent versis: Cost of developing new talent Cost of rewards versus: Cost of 1% increase in engagement So which…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[30,33,8,12,15,20],"tags":[],"class_list":["post-780","post","type-post","status-publish","format-standard","hentry","category-compensation","category-finance","category-strategies","category-learning-management","category-talent-acquisition","category-talent-management"],"_links":{"self":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/780","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=780"}],"version-history":[{"count":1,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/780\/revisions"}],"predecessor-version":[{"id":955,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/780\/revisions\/955"}],"wp:attachment":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=780"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=780"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=780"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}