HR at Facebook

In more than 500 HR Leader meetings, I have never attended a more interesting and thought-provoking session than the one at Facebook in New York on Friday 24 April. Along with 25 Global HR Leaders, we heard Madan Nagaldinne, HR Leader for The Americas, talk about the way Human Resources operates at Facebook. I think it would be fair to say that everyone left the session reflecting on how unique the HR strategy is in this $US 15 billion company that is still only 10 years old. The relative youth of the company has provided the perfect platform for creativity within its people practices. In addition to an agile workforce, Facebook is unencumbered with poor performing legacy HR processes. Earlier in the week, Stefanie Cross-Wilson and I were at Facebook's Menlo Park campus, which also acts as the world headquarters, where we saw first-hand the creative epicentre of the company in action. "It felt like a cross between Disneyland and an Ivy League University," said Cross-Wilson describing her tour of the campus. Reflecting on our time at Facebook, I penned the following reminders on smart HR strategy.

1. Stick to building only your core capability in HR. Although there has been a recent trend to insourcing and building HR empires, outsourcing is not dead. There is a good argument to suggest that outsourcing, when done properly, gives the best versatility on cost and service management. Keep your HR function lean.
2. Invest in a sharp talent acquisition team who are smart and savvy at both internal and external sourcing. This can save your company dearly on hiring costs, but note this team needs to be innovative and technology savvy.
3. Your Diversity & Inclusion strategy needs to be cutting edge, if you are to get the optimum workforce from a creativity standpoint. Too many companies are still viewing D&I as an afterthought. It needs to be at the core of the organisation's hiring strategy.
4. Base cash salary is important but build longevity through smart short and long-term incentives on top. These should have accelerators based on performance, which produces the most entrepreneurial workforce.
5. Enrich the employee experience from a total rewards standpoint through lifestyle-oriented perks, such as food, flexible leave, and even great medical and technology equipment. This maximises employee morale and increases productivity.
6. Invest in smart technologies to manage your HR data, your internal communication strategy, payroll and the intranet. If you are not already doing this, now is really the time to rethink it.

Many thanks go to Facebook on both the East and West coasts for co-hosting these fascinating meetings, and we look forward to re-connecting with this group later this year.