HR Chargebacks: Avoiding the pitfalls, realizing the benefits

HR Chargebacks

Posted by Art Mazor and Gary Johnsen on October 30, 2014

In Part I of our discussion of HR chargebacks, we noted that chargebacks are a natural step in the evolution of HR from a purely transactional function to a strategic partner with the business. Done well, chargeback programs can offer a number of benefits — HR clarity, efficiency, cost control, and more. Done poorly, the desire to add accountability and alignment to HR costs and programs can backfire. Here in Part II, we explore some of the ways to execute chargebacks effectively.

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HR Chargebacks: An important step in HR’s journey

Businessman in Conference Room

Posted by Art Mazor and Gary Johnsen on October 23, 2014

As HR finds its seat at the business table, it faces increasing scrutiny to demonstrate, like its counterparts around that table, how HR contributes to the business strategy and objectives.This scrutiny is good for HR in that it moves the function further from a purely transactional cost center to a strategic business partner. It also forces HR to be more accountable for how it manages the business of HR and aligns the cost of its operations and programs to business objectives. A chargeback process is a common “go to” approach for providing visibility into internal or shared costs and increasing accountability for cost management, yet can bring a mixture of benefits and pitfalls if not designed and implemented properly.

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