Welcome to the #HRTechChat podcast, where we delve into the realm of human resources and explore the latest trends and innovations in HR technology. In this episode, we had the pleasure of hosting Maria Scarangella, a talent strategist, executive coach, and consultant, who shared her valuable insights and experiences in HR economics and its impact on organizations.
Understanding HR Economics:
According to Maria, HR economics serves as a decision-making framework, guiding investments in people to maximize returns. In today’s complex business landscape, where organizations face overwhelming changes, having a structured approach to decision-making becomes crucial. By aligning HR strategy with organizational goals and leveraging data, HR leaders can make efficient and effective decisions that drive results. Ultimately, the goal is to deliver value to customers and maximize returns for owners.
The Story of Geico:
Maria shared her experience as the Vice President of Talent at Geico, where she faced the challenge of optimizing staffing. Instead of focusing solely on hiring, Maria’s team took a holistic approach by analyzing the entire employee lifecycle. They identified the cost associated with each stage and sought to address the unintended consequences that arose. By assembling a cross-functional team of experts and leveraging HR technology, they revolutionized Geico’s hiring process, delivering better results while reducing costs and improving the candidate experience.
Leveraging HR Technology:
Maria emphasized the need for HR leaders to view HR technology as more than just an automation tool. It should be seen as an ecosystem that adds value to candidates and employees. Maria shared how Geico utilized a tech stack that included Workday Recruiting, Phenom, Brazen, and SHL assessments to streamline the hiring process, improve cultural alignment, and simulate job experiences. The strategic integration of these technologies transformed Geico’s approach, resulting in cost savings and increased efficiency.
Unleashing HR’s Strategic Potential:
To replicate Geico’s success, HR leaders must begin by aligning their purpose with organizational goals. By understanding the value of people and the associated costs, HR professionals can build a solid business case that demonstrates their contribution to the organization’s success. Equipped with financial acumen, HR leaders can engage in strategic conversations with operational leaders and the CFO, establishing themselves as valuable partners who drive business outcomes.
Final Thoughts:
The conversation with Maria highlighted the critical role of HR economics and technology in shaping the future of HR. By adopting a strategic approach and leveraging HR technologies, organizations can maximize returns on their investments in people. HR leaders must align their strategies with business goals, utilize data to inform decision-making, and understand the financial impact of their initiatives. This transformation elevates HR’s role to that of a strategic business partner, creating value and driving success across the organization.
Join us for more insightful discussions on the #HRTechChat podcast, where we uncover the latest trends and innovations in HR technology. Together, we can shape the future of HR and create thriving workplaces.
