We know by now that Six Sigma methodology is not only for process chains but for every system that works for improving its processes. Human resource, a crucial yet often neglected process in an organization, can very well use Six Sigma.
Six Sigma’s use in human resource (HR) started when DuPont discovered that it took them six months to grant long-term disability benefits to their employees. Management turned to Six Sigma to improve the process. Not only can human resource benefit Six Sigma, it can also take on a major role in deploying the initiative. When Dow Chemical decided to go for Six Sigma, it engaged its human resource department to create a curriculum design team to develop Six Sigma courses. Also it incorporated conflict resolution and conflict management so that employees will be prepared to take on the leading and coaching roles during the projects. Not only that HR leaders are also using Six Sigma to improve customer satisfaction and reduce costs in everyday HR functions.
In another instance, a Colorado manufacturer was having trouble recruiting for a 24/7 operation where local unemployment was 2%. As a result, the company was paying excessive overtime to experienced workers. A common solution would be to raise the entry-level salary to be more competitive. But this is not the way to go. The answer was to apply Six Sigma quality tools to the process.
The common practice in hiring is stretch the hiring process, that is apply one week, test the next, interview the next, undergo a blood test, then receive an offer. Most likely, motivated applicants would find jobs elsewhere. By mapping the process, the procedure becomes clearer thereby removing delays. The company is then able to reduce hiring time from six weeks to one. These days, an applicant is tested, interviewed and gets an offer, contingent on the blood test. The company saves the money it would have paid in higher salaries and overtime.