In any company, HR should be responsible for the following outcomes:
- Strategy Execution
- Administrative Efficiency
- Employee Contribution
- Capacity for Change
Through delivering these outcomes, HR should also play the following corresponding roles within a business:
- As a strategic partner working to support business strategy
- As an administrative expert working to develop organizational procedures and provide basic HR services
- As an employee supporter, listening and responding to needs of employees
- As a change representative to manage and change processes to enable an increase in the effectiveness of the organization
Instead of focusing on one area to another within the company, HR should deliver value to all divisions of an organisation.
When considering working with a HR person, consider hiring people who will be successful business partners, strategic thinkers, and people who will understand the pressures of running an effective business in today's market. It is also important to note that HR leaders are often in a distinctive position regarding the insight they can bring to the table, which should not be confined to a traditional HR agenda. It is imperative to push conversation around business direction, where to capitalise in resources and top level talent issues, such as leadership development and the talent pipeline.
There are some common steps and activities that will increase the likelihood of success with incorporating HR into your organisation:
Strong HR Leadership
As with any major adjustment, a strong leader can develop a clear vision, motivate others to share that vision, and help them work toward achieving it. In order to alter the role of HR in a business, the HR leader will need to work both within the HR team and with the company leaders to restructure expectations of what HR can and will deliver. The realisation of the change will depend on HR's capability to meet the requirements of the organisation and the credibility it develops.
One way that HR can provide valuable knowledge is by understanding how changing environmental, organisational, and personnel factors will likely influence the business, foresee the associated HR needs, and be prepared to provide suitable solutions to meet those needs. By sustaining emphasis on workplace developments, HR can prepare to evaluate the impact that particular changes are likely to have on a company’s staff and processes and be equipped to work with business leaders on deciding how to respond to being ahead of the curve, not behind it.
Flexibility and Creativity
An HR group that is effective will likely be one that is receptive to the varying requirements of its client. Awareness and response to the changing world of work will involve being flexible as needs and priorities will change alongside any organisational transformations. In addition, traditional processes may not be adequate to meet unique needs of the future, and so HR leaders will likely rely on the creativity of their teams to achieve effective results. Increasing globalization of various markets will require both flexibility and creativity as businesses strive to succeed in new locations with a new workforce.
HR is often still wrongly perceived as simply a non-revenue generating function. It is important to see the value provided by working with the HR management team to hire the right people, manage them well, pay them appropriately, and build a working environment that encourages success.
The answer to why human resources is important is not simple, however, understanding the advantages of strategic HR will assist you in determining whether in-house HR, outsourced HR or a combination of both suits your company’s needs.
The contents of this article are necessarily expressed in broad terms and limited to general information rather than detailed analyses or legal advice. Specialist professional advice should always be obtained to address legal and other issues arising in specific contexts.