Revenue question

HRJENN

I was just curious....I am rather new to HR and I am still trying to get to know the industry. I was wondering if anyone works for a company that the HR department does some sort of service that brings in revenue.

Just wondering...let me know.

Carey

[font size="1" color="#FF0000"]LAST EDITED ON 03-31-04 AT 03:05PM (CST)[/font][br][br]The concept was tried at my company, but was a huge flop and abandoned. We separated out a "services" company that included HR, IT, Finance, Safety, Marketing, Facilities, maybe more, and we "sold" our services to other groups in the company. We (HR) charged a "care & feeding" amount for each group based on headcount to do the day to day HR stuff, but extras (training, running extra reports, etc.) cost extra. We had to keep separate timesheets for billing purposes. It was cumbersome and created a lot of ill-will with the other groups. At first there was a rule against self-performing but after a year or two, internal groups could go outside of the company for services if it was better or cheaper (we never got to that point). The idea was that eventually, we could sell our services externally, but we also never got to that point with the exception of one or two projects for the Safety group. As I said, it was a failure and we've been brought back as one company.

HRJENN

It seemed like a good thought.

I really appreciate your response.

Pork

HRJENN: Welcome to the Forum and the best there is on the net.

I am with a private company and there are three ways for my department to realize revenue:

1) Cost reduction programs from previous years history. We paid $250,000 to search firms last year, this year we will not pay one red cent to a search firm, we will recruit and retain on our own. Therefore, the budgetted $250,000 item will remain in the budget, until the controller sees that we are not spending the money, as projected, and moves the money to another element of the budget. However, I makes sure every one knows how we are saving money and who was the benefactor of our efficiency.

2) A third way is to sell retail items that represent the company for a profit.

3) Last year we contracted with the government to conduct OJT training over a eight week training period the basic skills of our industry, we realized a return on our investment of $11,000.00 to our company bottom line in the form of a real live government check for 50% of the employee wages paid to the OJT selected employee.

1 & 3 is enjoyable and a sure winner, 2 is a dawg and can "nip you in the butt".

Hope this helps!

PORK

HRJENN

Pork,

Thank you for the reply.

Were the OJT employees government employees? I am trying to understand...did the government basically pay you 50% of the employees salary to train them?

HRJENN

Pork

HRJENN: These were US Citizens and Foreign Nationals who were recognized by the US & State government, as un-employed workers who are in a mass of people who with proper training in our industry could become employed in our industry, thus producing money to the over all economy of the area. Additionally, we had some foreign nationals who we trained to become supervisors and again we were able to receive 50% of their weekly wages paid during the 8 week long training program On-The-Job (OJT). One has now risen to the level of Assistant Manager of the production unit.

PORK

HRJENN

Pork,

I find that to be interesting. Thank you for the input, I am still trying to learn as much as I can about the industry and your input was helpful.

HRJENN

Pork

HRJENN: Does your company have an employee handbook? You are most welcome, we, the members of this forum, are always interested in helping were we can, only you can be the one to say we helped. Even if we only confuse, we are helping you to become more educated in the fact there maybe more than one slant to the issue. However, read and take from the forum all the goodies and do your personal research when it comes to the law. Unless you can read the law for yourself don't be satisfied until you are satisfied and able to take the fact on as your own.

PORk