Health Care Reform: Legislative Constraint or Real Opportunity. Why you should be more concerned about business performance.

healthcare1I have been at a number of meetings recently with HR colleagues and also been reading all the stuff out there!!

HCR is nothing if not another legislative “constraint” OR perhaps a real opportunity for Business to take advantages of it as part of their business strategies.

In his book”Good to Great” Jim Collins tells us that many business face the same external constraints, whether technological, legislative, economic etc, and it is the ones that face those challenges in a transformational way that succeed. The ones that overcome the same challenges as many of their competitors are the ones that move on to greatness through financial performance and leave the others in their wake.

I am not suggesting we don’t need to understand what HCR is but what I do say is that Business – HR need to ask the right questions.

Those questions relate to how current employee “benefits” (and there are more that are non health care then health care let’s get that clear!) actually benefit the individual or the organizations. By the way this is not where the first question begins either! But you do need to know the answer to this one!!

I challenge CEO’s and Business owners everywhere to ask their HR folk some real questions, like the ones you wake up in the middle of the night over and have to deliver to your shareholders.

  1. What is the return on investment on any given benefit?
  2. What have they done to turn a cost into an investment?
  3. Where is the real added value and business imperative behind any given HR strategy?

A recent study by “Economist Intelligence” outlined that many CEO’s say that HR fails to tackle the real business issues and lack business acumen!

HCR is but one more piece of employment legislation just like FMLA; FLSA; ADA:etc

HR needs to focus on the internal consequences of not understanding what really triggers high performance and what behaviors are need to deliver outstanding business success.

Get that right and understand that each and every Human Resource element has to have a business case that turns a cost into an added value resource.

It never was about Health care reform it’s always been about effectiveness, it has never been about health care insurance or affordability it has always been about enhancing people and business performance. Why? Because there is always a value worth paying when you can show that. Now we are talking!!

Link to Jim Collin’s book


About HRMexplorer

Managing Director - Human Capital Europe and USA - My ability is to recognize ingrained assumptions and patterns of operation that aren’t productive, and offer practical, cost-effective and value-based solutions.

Posted on February 22, 2013, in HRMexplorer Blogs. Bookmark the permalink. Leave a comment.

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