Personal Finance for HR Guys

The HR guy sitting next to me complained, “I do not understand money. Can you help me?”

Treat money just like you treat people in your daily HR job, I replied. That’s the genesis of this post. Let me elaborate.

My understanding of the job of an HR guy is that it entails the following four elements. 1. Role description 2. Recruitment & Selection 3. Performance Appraisal and 4. Training & Development.

Role Description: It is important for the HR guys to articulate the role for each employee. This role has to be aligned to the Organization goals and objectives.

Same goes for your money. You need to identify your own financial goals first. And then go on to assign various roles for your income as well as expenses.

Recruitment & Selection: Once the HR guys know what kind of roles are required to be performed, he plans out the selection of people to man those roles.

So when you have articulated your financial goals, you are ready to select your investments. You need to evaluate the options available and make the choices

Performance Appraisal: This is really the limelight season for HR guys. You need to document the key performance indicators and metrics and evaluate performance of your people.

With money, this is like the budgeting exercise. You analyze your networth and the balance sheets for your income as well as expenses. Build your own dashboard which tracks your income, expenses, investments and liabilities.(personal finance tracker)

As with performance appraisal exercise, you don’t really need to check up with daily stock prices. Maybe a half yearly review would be right. After all you need to trust people and your own selection process.

Training & Development: As with people, you need to continuously refresh your money resource. Enroll for a programme on personal finance. Read a book on managing your money. Money is as dynamic (if not more!) as your people.

The point I want to make is that principles of managing anything can be applied to your money too. The other point I always stress on is that it’s not rocket science and in fact it’s just plain common sense. The key is to get started.

Go, schedule an Assessment & Development Centre (used by HR Consultants to assess & develop competencies required to perform roles) for your money management

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