How closely does your marketing department work with the HR department? Probably not particularly closely, they aren’t necessarily two departments that you would automatically put hand-in-hand. But, in fact, they should be working together very closely in order to maximize company value, according to new research.
A new paper by strategic management and marketing experts at Rice University and Kent State University states that chief officers of each department need to coordinate their activities.
The research made 21,447 observations between 1994 and 2010, relating to 4,643 firms. It argues that the consistency with which a company treats its customers and employees can affect the company’s long-term value. The authors found that customer- and employee- related achievements can amplify each other’s positive impact on the firms valuation, whilst lapses in both would strengthen each others negative impact on the firms valuation.
Customer-related activities come under the marketing team, whilst employee-related activities come under human resources. Therefore to gain consistency between the two, the teams must find the right way to work together.
Consistency in customer- and employee- related activities provides a clear signal to investors that the firm is able to manage the two key stakeholders in a coordinated manner – although the researchers did discover that this is far easier to achieve when companies have a narrow business scope.
Companies, of course, should treat both their employees and customers well, but in some cases, one or both of these don’t happen. If HR track the happiness and job satisfaction of their employees, whilst marketing track the equivalent for their customers, they can ensure they are doing everything possible to keep both of these on the increase, rather than suddenly seeing a decrease.
For example, giving your employees a pay rise will, of course, make them very happy. But if this is done at the expense of your customers – by increasing the price they need to pay for your service – you will make them very unhappy. You need to find a way to make positive changes that will have a positive impact on both these imperative areas of your business.
Likewise, marketing departments know how to promote your company, so they can assist HR when it comes to selling the company in order to attract the right talent. This needs to be an ongoing process and not something that just happens when a job role becomes available. Whilst HR can play a key role in helping marketing develop internal communications that demonstrate how employees should “live” the brand and can create this brand-based culture through training, new employee orientations and performance evaluations.
Whilst your HR team are being helped by the marketing team to find the right employees, why not get them the right system to help manage the staff that are already there? That way they will have extra time to find the right people in the right way. Check out http://www.ciphr.com/ – which can relieve organisations of a large part of their IT software management responsibilities as well as provide payroll software and eRecruitment solutions.
Perhaps, it is time to reorganise your office seating plan and move HR next to the marketing team – ensure they work closely together and you will only see positive changes.