Improve HR Value To Company By Making HR A Performance Rather Than People Department

Human resources and other management leaders searching for ways to take their businesses from good to great should critically evaluate their workforce recruitment, management, compensation and benefit practices are properly designed to support business success or inappropriately detract from performance.   When designing and administering the human resources and other workforce processes for any business, human resources managers and consultants and the business leaders they support should stop thinking of and administering human resources as the “people” department and start thinking and running the department as the “performance management” department.

The primary responsibility of management is to define the business goals and manage its people and other details to accomplish the goal. Businesses leaders determined to succeed usually take steps to promote achieve desired well-defined goals by adopting detailed implementation plans that depend upon properly qualified workers reliably delivering the required performances their business needs to succeed.

As businesses technically only act through the performances of their people, everything that goes right or wrong or better or worse in a  company ultimately depends on what its people do, when and how.  Human resource and associated workforce performance both are key drivers of business performance and costs as well as major contributors to liabilities and expense.    even the most promising businesses experiences difficulty succeeding unless its people reliably perform as needed to implement the business plan.  While businesses can struggle or fail if management chooses a poor business path, even the most promising businesses will experience difficulty achieving success if it can’t get its people to reliably implement the business plan. Therefore, effective workforce management critically impacts every company’s performance and ultimately, its success.

As with any other company resource used in its operations, management must manage workforce resources to meet the needs of the business.   Management and its people must understand that the “people department” exists to drive business performance not to maximize employee satisfaction.  When recruiting, hiring and promoting workers, business leaders should and must objectively define the tangible education, experience, skills, compensation and other employment terms to fit management expectations of the business needs. However hiring someone who has the capability of doing the job is only part of the equation.  Getting the employee to actually do the job as desired for the compensation and other benefits of employment offered by the business is where management comes in to play.

While it’s great when the business needs align with the needs of its people, the management has a duty to put the success of the business ahead of employee satisfaction when these needs do not align.  While management can admire the success realized by the management by survey human resource consulting businesses in promoting the idea that  management will be unable to hire sufficient employees unless it restructures its business operations and workforce expectations to match survey responses of Gen-X and Millennial workers, the business failures and setbacks of the automobile, steel, airlines and numerous other businesses clearly document the perils to the business and its workers that the business failures and setbacks of the automobile, steel, airlines and numerous other businesses  when management pander to compensation or other expectations of workers at the expense of responsible management.   Therefore, while management generally should consider the market competitiveness of the company’s employment, compensation, benefits and  culture, the implications on the company’s ability to recruit, retain and motivate the workforce talent and performances needed to best operate the business with the least management effort, expense and liability ultimately must determine whether and to what extent to accommodate a particular worker or group of worker’s demands or expectations about hours of work, compensation, benefits and other job satisfaction issues on business performance.

Once management defines the position, its required qualifications and performance requirements, compensation, benefits and other terms based on the business needs of  the company, management helps qualified candidates perform their best by clearly defining and communicating management expectations.  Management should make clear what the job is, how performance will be judged and the compensation and other benefits and opportunities of the job.

Thus, while surveys and other invitations for members of the team to provide input and feedback can provide valuable insights to management where the performance needs of the business might be advanced by such input, management generally should use care not to send mixed messages by inviting input by workers on matters which management already has determined the course of action required to meet the business needs.   Similarly, while management can and should design and administer workforce policies and management to include appropriate flexibility to allow employees flexibility in the performance of their assigned duties, compensation, or other terms of employment within the parameters established by management, unless legally required, management generally should be cautious about accommodating workers’ requests for special treatment or accommodation of the employee’s preferences or needs do not fit the business performance needs determined by management.  Likewise, teaming does not mean the team doesn’t have a head coach.  While input from employees has a valuable role in businesses, failing to clearly define the parameters and expectations within which employees are expected to perform, inviting input on decisions management already decided, or tolerating diversity in performance where the business needs uniformity undermines the effectiveness of the business and the performance of the worker by confusing or misdirecting the workers.

While occasionally the unique skills and talents of a particular worker may be so valuable that the business needs justify accommodating his demands for prima donna treatment,  management should carefully weigh the costs of accommodation of these preferences.  Unfortunately, management frequently wastes significant time, money and legal fees apparently qualified candidates that lack perhaps the most important qualification for the position:  a desire and enthusiasm for the job management offered rather than another mythical position with duties, titles, responsibilities, compensation or other perks that the candidate wishes he could obtain. In many cases, accommodation of one demand or foible leads to additional demands from the accommodated worker while either alienating or inviting other demands for special treatment for other workers on the team.

Ultimately, the workforce of a business is a team whose success depends on how well the players execute the game plan set by management.  Regardless of how great the player’s credentials look on paper, his value to the company’s team depends upon how well his performance fulfills and furthers the performance of the team. The best candidates and employees are competent if not talented workers that have the skill and find fulfillment performing the duties contemplated by management under the leadership of its management for the pay and other offered perks as an opportunity too good to miss. A business that hires and retains workers that readily and enthusiastically perform in accordance with the business strategy and performance expectations established by management generally require less management.

For Legal or Consulting Advice, Legal Representation, Training Or More Information

If you need help reviewing your group health plan or responding to these new or other workforce, benefits and compensation, performance and risk management, compliance, enforcement or management concerns, help updating or defending your workforce or employee benefit policies or practices, or other related assistance, the author of this update, attorney Cynthia Marcotte Stamer may be able to help.

Recognized as a “Top” attorney in employee benefits, labor and employment and health care law extensively involved in health and other employee benefit and human resources policy and program design and administration representation and advocacy throughout her career, Cynthia Marcotte Stamer is a practicing attorney and Managing Shareholder of Cynthia Marcotte Stamer, P.C., a member of Stamer│Chadwick│Soefje PLLC, author, pubic speaker, management policy advocate and industry thought leader with more than 27 years’ experience practicing at the forefront of employee benefits and human resources law.

A Fellow in the American College of Employee Benefit Counsel, past Chair and current Welfare Benefit Committee Co-Chair of the American Bar Association (ABA) RPTE Section Employee Benefits Group, Vice Chair of the ABA Tort & Insurance Practice Section Employee Benefits Committee, former Chair of the ABA Health Law Section Managed Care & Insurance Interest Group, an ABA Joint Committee on Employee Benefits Council Representative and Board Certified in Labor & Employment Law by the Texas Board of Legal Specialization, Ms. Stamer is recognized nationally and internationally for her practical and creative insights and leadership on health and other employee benefit, human resources and insurance matters and policy.

Ms. Stamer helps management manage. Ms. Stamer’s legal and management consulting work throughout her 27 plus year career has focused on helping organizations and their management use the law and process to manage people, process, compliance, operations and risk. Highly valued for her rare ability to find pragmatic client-centric solutions by combining her detailed legal and operational knowledge and experience with her talent for creative problem-solving, Ms. Stamer helps public and private, domestic and international businesses, governments, and other organizations and their leaders manage their employees, vendors and suppliers, and other workforce members, customers and other’ performance, compliance, compensation and benefits, operations, risks and liabilities, as well as to prevent, stabilize and cleanup workforce and other legal and operational crises large and small that arise in the course of operations.

Ms. Stamer works with businesses and their management, employee benefit plans, governments and other organizations deal with all aspects of human resources and workforce management operations and compliance. She supports her clients both on a real time, “on demand” basis and with longer term basis to deal with daily performance management and operations, emerging crises, strategic planning, process improvement and change management, investigations, defending litigation, audits, investigations or other enforcement challenges, government affairs and public policy. Well known for her extensive work with health care, insurance and other highly regulated entities on corporate compliance, internal controls and risk management, her clients range from highly regulated entities like employers, contractors and their employee benefit plans, their sponsors, management, administrators, insurers, fiduciaries and advisors, technology and data service providers, health care, managed care and insurance, financial services, government contractors and government entities, as well as retail, manufacturing, construction, consulting and a host of other domestic and international businesses of all types and sizes. Common engagements include internal and external workforce hiring, management, training, performance management, compliance and administration, discipline and termination, and other aspects of workforce management including employment and outsourced services contracting and enforcement, sentencing guidelines and other compliance plan, policy and program development, administration, and defense, performance management, wage and hour and other compensation and benefits, reengineering and other change management, internal controls, compliance and risk management, communications and training, worker classification, tax and payroll, investigations, crisis preparedness and response, government relations, safety, government contracting and audits, litigation and other enforcement, and other concerns.

Ms. Stamer uses her deep and highly specialized health, insurance, labor and employment and other knowledge and experience to help employers and other employee benefit plan sponsors; health, pension and other employee benefit plans, their fiduciaries, administrators and service providers, insurers, and others design legally compliant, effective compensation, health and other welfare benefit and insurance, severance, pension and deferred compensation, private exchanges, cafeteria plan and other employee benefit, fringe benefit, salary and hourly compensation, bonus and other incentive compensation and related programs, products and arrangements. She is particularly recognized for her leading edge work, thought leadership and knowledgeable advice and representation on the design, documentation, administration, regulation and defense of a diverse range of self-insured and insured health and welfare benefit plans including private exchange and other health benefit choices, health care reimbursement and other “defined contribution” limited benefit, 24-hour and other occupational and non-occupational injury and accident, ex-patriate and medical tourism, onsite medical, wellness and other medical plans and insurance benefit programs as well as a diverse range of other qualified and nonqualified retirement and deferred compensation, severance and other employee benefits and compensation, insurance and savings plans, programs, products, services and activities. As a key element of this work, Ms. Stamer works closely with employer and other plan sponsors, insurance and financial services companies, plan fiduciaries, administrators, and vendors and others to design, administer and defend effective legally defensible employee benefits and compensation practices, programs, products and technology. She also continuously helps employers, insurers, administrative and other service providers, their officers, directors and others to manage fiduciary and other risks of sponsorship or involvement with these and other benefit and compensation arrangements and to defend and mitigate liability and other risks from benefit and liability claims including fiduciary, benefit and other claims, audits, and litigation brought by the Labor Department, IRS, HHS, participants and beneficiaries, service providers, and others. She also assists debtors, creditors, bankruptcy trustees and others assess, manage and resolve labor and employment, employee benefits and insurance, payroll and other compensation related concerns arising from reductions in force or other terminations, mergers, acquisitions, bankruptcies and other business transactions including extensive experience with multiple, high-profile large scale bankruptcies resulting in ERISA, tax, corporate and securities and other litigation or enforcement actions.

Ms. Stamer also is deeply involved in helping to influence the Affordable Care Act and other health care, pension, social security, workforce, insurance and other policies critical to the workforce, benefits, and compensation practices and other key aspects of a broad range of businesses and their operations. She both helps her clients respond to and resolve emerging regulations and laws, government investigations and enforcement actions and helps them shape the rules through dealings with Congress and other legislatures, regulators and government officials domestically and internationally. A former lead consultant to the Government of Bolivia on its Social Security reform law and most recognized for her leadership on U.S. health and pension, wage and hour, tax, education and immigration policy reform, Ms. Stamer works with U.S. and foreign businesses, governments, trade associations, and others on workforce, social security and severance, health care, immigration, privacy and data security, tax, ethics and other laws and regulations. Founder and Executive Director of the Coalition for Responsible Healthcare Policy and its PROJECT COPE: the Coalition on Patient Empowerment and a Fellow in the American Bar Foundation and State Bar of Texas, Ms. Stamer annually leads the Joint Committee on Employee Benefits (JCEB) HHS Office of Civil Rights agency meeting and other JCEB agency meetings. She also works as a policy advisor and advocate to many business, professional and civic organizations.

Author of the thousands of publications and workshops these and other employment, employee benefits, health care, insurance, workforce and other management matters, Ms. Stamer also is a highly sought out speaker and industry thought leader known for empowering audiences and readers. Ms. Stamer’s insights on employee benefits, insurance, health care and workforce matters in Atlantic Information Services, The Bureau of National Affairs (BNA),, Benefits Magazine, Employee Benefit News, Texas CEO Magazine, HealthLeaders, Modern Healthcare, Business Insurance, Employee Benefits News, World At Work, Benefits Magazine, the Wall Street Journal, the Dallas Morning News, the Dallas Business Journal, the Houston Business Journal, and many other publications. She also has served as an Editorial Advisory Board Member for human resources, employee benefit and other management focused publications of BNA,, Employee Benefit News, and many other prominent publications. Ms. Stamer also regularly serves on the faculty and planning committees for symposia of LexisNexis, the American Bar Association, ALIABA, the Society of Employee Benefits Administrators, the American Law Institute, ISSA, HIMMs, and many other prominent educational and training organizations and conducts training and speaks on these and other management, compliance and public policy concerns.

Ms. Stamer also is active in the leadership of a broad range of other professional and civic organizations. For instance, Ms. Stamer presently serves on an American Bar Association (ABA) Joint Committee on Employee Benefits Council representative; Vice President of the North Texas Healthcare Compliance Professionals Association; Immediate Past Chair of the ABA RPTE Employee Benefits & Other Compensation Committee, its current Welfare Benefit Plans Committee Co-Chair, on its Substantive Groups & Committee and its incoming Defined Contribution Plan Committee Chair and Practice Management Vice Chair; Past Chair of the ABA Health Law Section Managed Care & Insurance Interest Group and a current member of its Healthcare Coordinating Council; current Vice Chair of the ABA TIPS Employee Benefit Committee; the former Coordinator and a Vice-Chair of the Gulf Coast TEGE Council TE Division; on the Advisory Boards of,, Employee Benefit News, and many other publications. She also previously served as a founding Board Member and President of the Alliance for Healthcare Excellence, as a Board Member and Board Compliance Committee Chair for the National Kidney Foundation of North Texas; the Board President of the early childhood development intervention agency, The Richardson Development Center for Children; Chair of the Dallas Bar Association Employee Benefits & Executive Compensation Committee; a member of the Board of Directors of the Southwest Benefits Association. For additional information about Ms. Stamer, see or the Stamer│Chadwick │Soefje PLLC website or contact Ms. Stamer via email to here or via telephone to (469) 767-8872.

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