Setting FTEs for Company. Right.
The FTEs are a crucial for the organization. The FTE Plan is one of the major HR Management tools as the managers have to follow the plan, it sets the limits and it allows to Human Resources and Finance to manage the personnel expenses costs.
The allocation of the FTEs is extremely important as the it can limit the business in its growth or it can lead to many inefficiencies in the organization. The FTEs are not easily transferable from one manager to another, the managers fight for the FTEs, which are allocated to their units.
The HR usually tries to become smarter and to introduce innovative approaches into the dynamic FTE allocations as the managers are incentived to transfer their empty FTEs to the common pool as the strategic parts of the business can continue in their growth. It can work for some time, but the managers know the rules of the FTE game and they are extremely smart in hiding the inefficiencies.
The HR has to find new incentives for the managers to unhide their FTE reserves. They have many reserves, but the HR Department does not know about them. The incentive allows to Human Resources to discover such reserves and to transfer them to different departments.
The right allocation of the FTEs does not exist, the smart managers are always smarter than HR Policies and they know, how to hide their reserves and how to look hardly managing the daily operation with the allocated HR resources.
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