While created in manufacturing, Lean Six Sigma improves virtually any system in any department because it focuses on eliminating process defects and mistakes. One business department that increasingly puts process improvement to use is human resources, where leaders can apply Lean and Six Sigma principles to everything from creating compensation systems to hiring processes and employee orientation.
As pointed out in an interview with a vice president for human resources, elements of Lean and Six Sigma can help HR leadership reduce waste, understand employees better and find solutions to complex HR problems such as developing a streamlined employee onboarding process.
HR leaders also can implement Lean and Six Sigma strategies to improve their success rate in recruiting and retaining talented employees.
Challenges With Talent Acquisition
HR departments face challenges when trying to attract talented people to their company. The advantage typically goes to the talented person – they will have plenty of offers to choose from, and can carefully weigh one offer against another.
HR departments can benefit by using Lean to get a streamlined operation into place that cuts wasteful, unnecessary steps while also improving talent acquisition efforts, according to the Society for Human Resource Management (SHRM).
Peter Peterka, CEO of training company Global Six Sigma, told SHRM that Lean can help companies in many areas. They include:
- Creating a qualification template that identifies the traits of ideal candidates for certain teams and positions
- Creating detailed job descriptions intended to attract the right candidates
- Forming a staff retention strategy to keep talent onboard
- Provide training to foster development in talented staff members
Waste in the Talent Acquisition Process
Slow response time to applicants can cost companies top talent when it comes to recruiting. One of the best uses of Six Sigma in HR is to carefully evaluate the current process and determine what needs to get eliminated.
Typical problems revolve around waiting for feedback from hiring managers on potential hires. There also can be considerable delays as companies wait for final approval of job offers.
Evaluating the process using Lean can lead to ways to address these issues, according to SHRM, including making sure everyone involved understands their responsibilities and their part in meeting deadlines.
Much of that has to do with keeping everyone involved engaged in the process. To reach that point, an HR project team can create a flowchart or spaghetti chart that visually depicts the talent acquisition process from beginning to end. Only then can errors, mistakes and roadblocks get corrected.
Six Sigma and HR Analytics
Six Sigma is, at its core, a data-driven methodology. The advanced technology that has led to more detailed and efficient data analysis has made the application of Six Sigma even more powerful than in the past.
In a detailed look at how to apply the DMAIC framework for process improvement using advanced analytics, HR Analytics argues that it can lead to more accurate details in assessing a system and ultimately to better changes in HR departments.
Those looking to work in HR might also want to focus on Lean. A recent study from the global executive search and recruiting firm The Avery Point Group found that more companies than ever want people with Lean skills for work in HR and other departments.
“I can’t think of any company that claims to be world class that is not utilizing some form of continuous improvement approach,” Tim Noble, managing principal of The Avery Point Group, said in a release about the report. “World-class status is a constantly moving target defined by both your customers and your competitors. Without a continuous improvement approach, you’re not even treading water in today’s highly competitive global economy.”