[Workplace] Making The Right HR Decision

For years I have watched business owners and CEOs make "people" decisions...good and bad people deci-sions...big and little people deci-sions...difficult and easy people decisions. Often, I have been privileged to participate in their decision-making by providing advice and counsel to these executives. In some cases, I learned of the decision and outcome too late to impact the results. While most leaders can recall the painfulness of their bad choices, many have never taken the time to analyze where their HR decisions went wrong. Why are some leaders able to make such effective people decisions while others are plagued by the turmoil their choices create? After much analysis of good and bad HR decisions, I have some insight to share.

First, let’s define a "people" decision. Simply put, it is any executed choice made by a leader that impacts the organization’s human resources. The most obvious people decisions are those that involve hiring and firing. Those that are not so obvious — such as the decision to coach a 20-year employee with intolerable and declining performance, the decision to change a significant policy or benefit that impacts morale or the multiple decisions involved with a harassment investigation of your two best employees — are often more complicated.

I have found over the years that every business problem has, at its core, a human resource problem. Once you realize this, it becomes obvious that leaders make a multitude of complex HR decisions every day. And let’s face it, when it comes to dealing with people issues, most of the time, you’re operating in the "gray" zone. Rarely are decisions involving your human resources black or white.

Having watched brilliant leaders make terrible people decisions, I have concluded that it is not brains, per se, that make the difference between a good HR decision and a bad one. Nor can I say that one’s longevity in a given role correlates favorably with making good people decisions. It does not.

What I have found is that good HR decision-making is dependent upon some simple, practical components or principles. These principles may not apply to financial or operational decisions — but I do believe, if applied properly, they can impact the quality and outcome of your HR decisions. Also, although it may seem obvious, it’s worth pointing out: Before you apply these principles, you must first have viable knowledge and concrete facts about the particular matter. In the absence of relevant details, one can never make a good decision.

FOUR COMPONENTS. Here are four components to effective human resources decision-making.

1. The Right Choice — None of the other components will matter if you can’t get this one down first. Making the right HR decision is absolutely dependent upon choosing the right option for action. Example: One of your employees gets injured outside of work and presents you with a doctor’s note that includes some vague limitations. The employee says he’s fine to work. Do you (a) let the employee go back to work because he says he is fine, (b) send the employee back to the doctor with a copy of your job description, the physical requirements for the position and a letter requesting more details, (c) let the employee go because you have no "light duty," or (d) place the employee on a leave of absence until he is ready to return to work? Answer: It depends! The right choice hinges on a host of considerations, like coverage under state and federal employment regulations, the precise situation, number of employees, company policies, past precedent and others. What should you do? Get professional advice! Today in business, the wrong choice will cost you much more than getting the right advice. If you don’t have the experience or knowledge in human resource decision-making, be wise and ask for help.

2. The Right Words — This is a biggie. When it comes to executing a decision involving your people, you must choose the right words to communicate your message. As Mark Twain once said, "The difference between the right word and the wrong word is like the difference between lightning and a lightning bug." To select the right words, you must consider the personality of the individual you are communicating with and you must take the time to determine how to communicate your message clearly, directly, with confidence and with respect. Stick with the facts and don’t beat around the bush, make excuses or blame yourself for something that has nothing to do with you. The best communicators have learned how to convey even bad news with honesty and sincerity and without delay. (Hint: Unless you’re one of the few gifted people who always seems to have the right words at any given moment, you’ll find that it takes time to prepare your communication.)

3. The Right Time — This one can be difficult to control and, many times, human resource decisions are necessary in response to unrelated events. Some of the HR decisions that we can control the timing of (to some extent) include terminations, coaching, hiring, compensation changes, performance evaluations and conflict resolution. When possible, plan to execute your decision at the right time. Let’s say, for example, it is necessary and prudent to reduce the commission schedule for a position and you’ve eloquently prepared your communication. The question is: when do you deliver the news? (And I’m not talking about the difference between Friday and Monday.) Answer: Not when the employees are looking at their paycheck stubs! The proper timing would be well in advance of the effective date (normally, one to two months prior). Advance timing in this example may not be "legally" required, but failure to provide it can negatively impact morale, leading to a series of events that could be more costly than legal action. Choose your time wisely. There can be a significant price to pay if you act too quickly or if you delay essential action.

4. The Ability to Execute — This one relates to leadership experience and personality. Let me explain. I once had a client — a nice guy — who often called for HR advice. He had some tough issues on a regular basis. We would brainstorm together and review all of the facts and details. Eventually, I would carefully and specifically lay out my recommendations for action. I knew he was the kind of guy who needed details, so I painstakingly described every fine point and made sure he wrote it all down. Time after time, I would learn that our strategy did not play out correctly. Why? Because — and my client would admit to this — he simply could not execute the plan. He did not have the assertiveness, nor did he have the follow-through desire or ability to see the decision through to the end. It always fell apart about halfway. The reality was that this guy was a great technician-turned-business owner. Unfortunately, he did not have the passion or personality to implement the HR decisions. If you cannot or do not execute on your decisions, your life as a leader will be stressful and the success of your business at risk. If you’re one of these people, build your team with talented people who can help you execute effectively.

CONCLUSION. There you have it — make the right choice and then execute your HR decision using the right words at the right time — four simple sounding, but not always easy to implement, interwoven components to effective HR decision-making. In my experience, I have found that leaders with a void in any of these areas will be limited in their ability to develop the business. I apply these principles to every consultation and I am certain that if you do the same, you will enhance the quality and outcome of your people decisions.

The author is president of Seawright & Associates Inc., a management consulting firm located in Winter Park, Fla. For the past 15 years, she has provided human resource management and compliance advice to employers across the country. She can be contacted at 407/645-2433 or jseawright@pctonline.com.