1My profound leadership taught-leaders include Nelson Mandela; for bravery, wisdom and peace, Mahatma Gandhi for peace, Mother Theresa for humility, Barack Obama for rising above all odds when everyone says it is not possible, and my favourite, Miles Munro for practical leadership application in real (christian and political) life and of course, John C.
Maxwel for passion, dedication, and commitment to the leadership narrative and agenda. Taught leaders can be mentors from afar, inspiring and guiding through their writings and speeches, and the above gargantuan personalities together, have shaped my executive life in many ways than one. However, that is a topic for another day.
Today though, let us talk about HR Cost Leadership through John C Maxwell’s leadership lenses. In the evolving landscape of human resource management, the need for strategic leadership that balances cost efficiency with employee satisfaction has never been more critical.
John Maxwell’s leadership philosophy, with its emphasis on value-driven leadership, provides a compelling framework for navigating the complexities of modern HR challenges, particularly in the context of cost leadership. Many business owners perceive the HRM function as a cost center, which guzzles money and hardly contributes to revenue and profits.
Nevertheless, an effective HRM function can check and manage cost in so many ways leading to reduced revenue leakages and improved profits.
This article explores HR Cost leadership as a contemporary HR leadership tool, and aims at proposing the HR function as an effective cost management partner in business. That, effective HR Management can lead to significant cost management and cost reduction, leading to increased profits.
HR cost leadership
HR cost leadership is about optimizing the human capital expenditure without compromising on the quality of talent and employee engagement. It requires HR leaders to be adept at identifying areas where costs can be minimised while ensuring that the organization’s talent pool remains motivated and productive.
This approach aligns closely with John Maxwell’s leadership principles, particularly his emphasis on “Leadershift” — the ability to adapt and pivot in response to changing circumstances. In the context of HR, this could mean shifting from traditional, high-cost talent acquisition and management strategies to more innovative approaches like internal talent development, outsourcing, and automation.
John C. Maxwell is a renowned leadership expert, author, and speaker who has profoundly influenced the field of leadership and management. His principles and approach to leadership, particularly in managing human resources (HR), are rooted in the belief that leadership is about influence, service, and developing others.
Maxwell’s leadership principles emphasize the importance of influencing others positively, leading with integrity, and creating a culture of trust and accountability. These principles can be directly applied to HR cost leadership, where the goal is to lead by example, encouraging a culture of cost-consciousness without sacrificing the human element of HR.
Maxwell’s Law of the Lid principle posits that a leader’s ability determines the organization’s level of effectiveness. The “lid” is the limit to the leader’s potential, and if the leader’s ability is low, the organization will struggle to succeed.
In HR management, this principle underscores the importance of developing leadership skills within the HR team to elevate the entire organization. By enhancing the capabilities of HR leaders, organizations can unlock greater potential across all departments. Maxwell famously stated that, “Leadership is influence, nothing more, nothing less.”
In HR, this means that HR leaders must wield influence effectively to drive change, foster a positive culture, and guide employees toward the organization’s goals. HR leaders who master the art of influence can advocate for employee needs, implement strategic initiatives, and lead with integrity, ensuring alignment between individual and organizational objectives.
That is why I have a strong conviction to say, “without influence, HRM is dead”. It is the reason why organisations that relegate HRM to a non-executive or sub-managerial role cannot derive the greatest benefits HRM brings to bare on business success, because of the absence and lack of HR influence and leadership in the organisation.
“Without influence, HRM is dead”
~ Senyo M. Adjabeng
HR influence at all levels of the organisation does makes a difference in organisational cohesion and employee satisfaction. Maxwell argues that great leaders add value to others. In HR, this involves investing in employee development, creating opportunities for growth, and ensuring that HR policies and practices are designed to support and uplift employees.
Indeed, this is one huge strategy for employee engagement resulting in reduced turnover and increased motivation and loyalty. This principle is the height of employee experience. When HR leaders focus on adding value to teams, they build trust and loyalty, leading to a more engaged and productive workforce.
Hence, Maxwell says empowering others is a hallmark of effective leadership. He believes that leaders who empower their teams create a culture of ownership and accountability. In HR, this principle translates into empowering employees through delegation, mentorship, and providing the tools and resources needed for success. Empowered employees are more likely to take initiative, contribute to innovation, and drive organizational success.
Trust is the foundation of leadership, according to Maxwell’s Law of Solid Ground. For HR leaders, building solid ground means creating an environment of transparency, fairness, and ethical practices.
Trust is crucial in managing sensitive HR issues, such as conflict resolution, performance management, and employee wellness and employee relations. HR leaders who operate with integrity are more likely to foster a culture of trust within the organization, leading to higher employee morale and retention. People do what they see. Therefore, Maxwell emphasizes the importance of leading by example.
HR leaders must model the behaviours and values they wish to see in their employees. Whether it is promoting work-life balance, demonstrating ethical behaviour, or showing commitment to diversity and inclusion, HR leaders set the tone for the entire organization by their actions.
If an organisation devotes to managing cost, it cannot ignore the impact HR brings to cost management and especially the impact of an effective HR cost leader who knows how to carry an organisation on his/her ethical, value based shoulders of accountability.
Cost leadership perspectives in addressing contemporary HR challenges
In the local business landscape, we see examples of companies adopting these principles to achieve cost leadership in HR. For instance, a leading tech firm in Lagos recently implemented an in-house training program that significantly reduced the need for external hiring.
By developing their existing talent, they not only cut recruitment costs but also increased employee loyalty and retention — a perfect example of Maxwell’s idea of investing in people to achieve long-term results.
Similarly, a manufacturing giant in Nairobi embraced Maxwell’s leadership approach by fostering a culture of open communication and transparency during a recent restructuring process.
By involving employees in the decision-making process and being transparent about the need for cost reductions, the company managed to reduce HR costs by 20% without facing major employee backlash. This aligns with Maxwell’s belief that leaders should be communicators who build trust and inspire their teams.
Today’s HR leaders face a range of challenges, from managing remote workforces to navigating the complexities of diversity, equity, inclusion and belongingness (DEIB). Maxwell’s approach offers valuable insights for tackling these issues.
His emphasis on empathy and understanding as key leadership traits is particularly relevant when addressing the well-being of employees in a cost-conscious environment. For example, during the pandemic, a financial services company in Johannesburg applied Maxwell’s leadership principles to support their remote workforce.
By actively listening to employee concerns and providing mental health resources, they were able to maintain productivity while reducing costs associated with burnout and turnover. This reflects Maxwell’s idea that leaders should care for their people, as true leadership is about serving others.
John Maxwell’s approach to managing human resources focuses on the belief that the true measure of a leader is not what they achieve, but how many people they have helped to achieve their potential.
In HR, this means prioritizing employee development programs, mentorship opportunities, and career growth pathways. Effective HR management under Maxwell’s approach involves creating a culture where continuous learning and development are encouraged and facilitated.
A multinational company implemented a leadership development program based on Maxwell’s principles, resulting in a 30% increase in internal promotions and a significant improvement in employee engagement scores. That right there is reduction in turnover costs and possible productivity improvement.
Another of Maxwell’s principle advocates servant leadership, where the leader’s primary goal is to serve others. In HR, servant leadership manifests in policies and practices that prioritize employee well-being, create a supportive work environment, and promote work-life balance.
Servant leaders in HR are focused on meeting the needs of their employees, which in turn fosters loyalty and enhances organizational performance. Effective HR management is built on the foundation of strong relationships, where employees feel valued and heard. An HR leader and colleague I can call a good friend in a large corporation, implemented regular “listening tours” to gather feedback from employees across all levels, leading to improved communication and a more inclusive workplace culture.
The future of HR cost leadership
As organizations continue to face economic pressures, the need for effective HR cost leadership will only grow. John Maxwell’s leadership philosophy, with its focus on integrity, adaptability, and people-centric leadership, offers a powerful blueprint for HR leaders looking to navigate these challenges.
By adopting Maxwell’s principles, HR leaders can achieve cost leadership without compromising on the well-being of their employees. The lessons from his approach are clear: true leadership is about influencing others positively, even in the face of cost constraints.
Local businesses that have successfully implemented these strategies serve as a testament to the effectiveness of Maxwell’s leadership principles in achieving HR cost leadership. As we move forward, it is crucial for HR leaders to continue embracing these principles, ensuring that they remain not only cost-efficient but also effective and empathetic leaders.
Emphasis on influence, people development, trust, empowerment, and servant leadership provides HR leaders with the tools they need to build strong teams, foster positive workplace cultures, and drive organizational success.
HR leaders through cost leadership can navigate contemporary challenges with a focus on long-term value creation, ensuring that their organizations remain competitive and their employees are engaged, motivated, and aligned with the company’s vision.
For further reading:
- Maxwell, J. C. (2007). The 21 Irrefutable Laws of Leadership: Follow Them and People Will Follow You. Thomas Nelson.
- Maxwell, J. C. (2011). The 5 Levels of Leadership: Proven Steps to Maximize Your Potential. Center Street.
- Maxwell, J. C. (2019). Leadershift: The 11 Essential Changes Every Leader Must Embrace. HarperCollins Leadership.
- Case studies from businesses in Ghana, Lagos, Nairobi, and Johannesburg.
- Case studies from some companies implementing Maxwell’s principles in HR management.
