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What You Need to Know About the Changing Function of HR

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What You Need to Know About the Changing Function of HR

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Posted by Lucille Brits

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Human resources has undergone a massive transformation in recent years, and the industry continues to evolve. Make no mistake, this isn't just a facelift from new tech tools that help HR professionals do their jobs. It's a shift in the function of human resources.
See also: The real cost of performance reviews
While traditionally HR focuses on benefits and compensation, overseeing employee engagement and retention, recruitment, diversity, workplace issues, or installing new processes under budget, the new function is a strategic business unit. In other words, HR is shifting from a cost center to a strategic profit center that leverages human capital.

HR is shifting from a cost center to a strategic profit center that leverages human capital Click To Tweet

What's the reason for the shift? Organizations are realizing that people are their greatest asset. Unfortunately, it took a crisis of high turnover rates and low employee engagement for this fact to come to light.

Research consistently shows that human capital is the top challenge for CEOs. People drive productivity, innovation, creativity, and execution, which all impact a business' bottom line. So if an organization can invest in the right people, put them the right positions, and contribute to their development, the enterprise will profit.

That's why HR is more valuable than ever as it takes on a new dynamic function - one that drives strategic initiatives that maximize profits and unlock an organization's potential.

Benefits of the New Approach to HR

HR is no longer just an administrative function; it now includes a strategic approach that addresses and solves business problems and supports long-term business goals and outcomes.

In most large organizations, HR leaders are involved in the strategic decision-making process, and their primary function is strategic planning. However, many medium and small organizations are stuck in the status quo, viewing HR strictly as a service unit.

The good news is companies are starting to see the light, realizing that expanding the role of HR makes dollars and sense. According to SHRM, some key benefits of the strategic function include:

Promoting employee productivity and overall organizational success

Providing a sense of direction to positively affect how work gets done

Keeping employees focused on organizational goals

Providing strategic focus to guide training and development initiatives

Showing the Business Value of HR

While you may understand the changing function of HR, it doesn't mean the rest of the C-suite recognizes the value. It may take some convincing, but research shows it can be done.

In a recent HR Certification Institute report, seven out of 10 leaders said their organizations adopted strategic HR after listening to HR leaders or seeing industry research to support their claims.
Read more: How to get executive buy-in for evolving performance management
So executives are listening - you just need to show the value in a strategic HR function. According to the HRCI report, there are few ways HR leaders can have a more bottom-line influence.

1. Strategic Hiring of Candidates that Add to Future Growth of Company

Organizations are always looking to the future, projecting growth and target goals in one-, three-, and five-year plans. HR leaders can assess the chances of meeting those business goals and contribute to the success by hiring and placing people with the right skill sets.

Financial projections are pointless if you don't have the right people to help hit those targets. A company's performance depends largely on having the people with specific skill sets in the key positions that drive growth, and that's a key function of HR leaders.

2. Using Total Rewards to Invest in Greater Employee Performance

While perks such as benefits and compensation fall under traditional HR functions, they also provide a strategic business value to organizations. As the shift is to view the workforce as a capital investment, total rewards should be treated as a means of strategically investing in the company's most valuable asset.

3. Enhanced Departmental & Employee Performance Tracking

By using consistent and advanced performance tracking, organizations can identify high and low performers and make necessary changes that contribute to the strategic growth of the company.

For example, this may mean moving a person from one position to another to boost innovation or growth in a department, using coaching or training to develop necessary skills to meet new market challenges, or reassigning managers to meet a challenge that is two years away.

4. Measuring HR Performance by Company-Wide Goals

For HR to become more of a business unit, organizations should measure HR performance by overall company goals instead of traditional HR metrics. The more HR is tied to the overall performance of the company, the more it will be elevated to a strategic role.
Get the report: Gartner Cool Vendors in Human Capital Management, 2017
That means companies must consider talent assessments when reviewing their key performance indicators. When financial goals or growth numbers hit or miss, organizations should evaluate their social system and talent to remedy issues or reinforce the positive.

5. Work with Senior Organizational Leadership to Integrate Mission and Purpose

Since mission and purpose drive companies, it's important to implement that vision in every division and job function. HR leaders play a key role with this integration.

This may involve taking part in organizational meetings and collaborating with the C-suite to ensure department objectives are aligned with the company mission, and key messages are communicated to managers, employees, and new hires.

Organizations are realizing that people are their greatest asset Click To Tweet

HR is changing, and it's taking on a larger role in organizations. As companies realize how an effective workforce contributes to profit margins, HR is becoming more of a value creator than a cost center. This new function means HR leaders should approach their jobs from a strategic perspective, as their roles are more aligned with business goals and outcomes.
Further reading: How Accenture overhauled its performance reviews We love feedback. To contact the editor of this article, email dani@reflektive.com.

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What You Need to Know About the Changing Function of HR | Reflektive

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Human resources has undergone a massive transformation in recent years, and the industry continues to evolve. Make no mistake, this isn't just a facelift from new tech tools that help HR professionals do their jobs. It's a shift in the function of human resources. See also: The real cost of performance reviews While traditionally HR ...

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Why Human Resource Management is so important

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Why Human Resource Management is so important

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Posted by Raeanna Kirk

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Debates about the importance of Human Resources Management occur daily in workplaces. Some employees regard HR as the policing, traumatizing, systematizing arm of executive management. These employees see HR staff as gatekeepers, people who hold little interest in employee concerns.

They also see HR staff as supporting managers, not regular employees. They attribute nefarious goals and motives to HR staff and talk about why they hate HR.

Part of the problem is that HR has to balance the interests of five different stakeholders, so employees can feel their interests are ignored. And HR needs to do a better job of touting its own horn and educating staff about what they are contributing.

HR Is Important

A good HR department is critical to an employee-oriented, productive workplace in which employees are energized and engaged. Here are the reasons why.

HR monitors the culture. Some organizations say that HR owns the culture, but as in all other employee relations matters, I recommend that the ownership is spread across all employees.

HR owns the overall talent management processes. In conjunction with other managers, HR leads the way in management development, performance management, succession planning, career paths, and other aspects of talent management. HR can't do it alone and relies heavily on managers and executive staff to help plan and execute the strategies. However, HR has to bring new ideas and effective practices into the organization.

HR recommends market-based salaries and develops an overall strategic compensation plan. HR provides guidance to managers as they determine the salary ranges within their organizations.

HR researches, recommends and implements employee benefits programs that attract and retain your best employees. HR is also responsible for controlling costs and considering various options before recommending adoption.

HR is responsible for recommending and instituting strategies for people and the organization that further the attainment of the organization's strategic goals. If your organization is changing direction, developing new products, changing mission, vision, or goals, HR must lead the way with employee programs and processes.

HR makes sure that workplace activities, events, celebrations, ceremonies, field trips, and team building opportunities are occurring. Other employees plan and implement the activities with or without HR's help, but the HR leader is generally responsible for monitoring the budget and providing committee oversight.

HR advocates for employees who have issues or conflict with management and coaches managers and executives who seek a more effective approach to working with particular employees. Not everyone loves each other but they need to develop effective working relationships for contributions and productivity. HR can help by knowing the players and taking on the necessary role of advocate, coach and/or mediator.

The importance of HR is easily overlooked in the busy day-to-day in the workplace, but without contributions in each of these areas, the organization would be less successful.

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Learn About the Importance of Human Resources Management for Retention

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Debates about the importance of Human Resources Management occur daily in workplaces. Some employees regard HR as the policing, traumatizing, systematizing arm of executive management. These employees see HR staff as gatekeepers, people who hold little interest in employee concerns. They also see HR staff as supporting managers, not regular employees.

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Shared by J. Marurai

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What is Human Resource Management (HRM)?

This is a function within an organisation concentrated on recruiting, managing and directing people who work in it. Human Resource Management deals with issues related to compensation, performance management, organisation development, safety, wellness, benefits, employee motivation, training and others. HRM plays a strategic role in managing people and the workplace culture and environment. If effective, it can contribute greatly to the overall company direction and the accomplishment of its goals and objectives.

The New Role in Human Resource Management

More and more companies seek the outsourcing services of HR recruitment companies. The focus on HRM is now moved to the strategic utilisation of employees and the measurable impact of employee programs over business. Nowadays successful companies need to be adaptive, resilient, customer-centred and quick to change direction. Within such an environment the effectiveness of HRM is crucial to business success. HR professionals establish systems for performance development, career succession planning and employee development. This keeps people motivated, happy, personally engaged and contributing to company success. Furthermore the HR professional helps the development of organisational culture and climate in which employees have the competency, concern and commitment to serve customers well.
How do I gain profound knowledge on Human Resource Management?
Experience is one of the best ways to learn the inside out of any specific area, but attending an appropriate HR course will give an excellent starting point of your future development. It is important to pick a program, well adjusted to the current trends in Human Resources Management. Otherwise, you may gain knowledge which is not applicable to the current business environment. Griffith College has designed an HR course to provide participants with the appropriate skills and knowledge essential for effective human resource management. It is suitable for individuals who wish to pursue a career in HRM and also for newly appointed managers or team leaders. You will be introduced to the main HRM theories, and these will provide a conceptual and practical platform for student learning.

You will be encouraged to draw on your own experience as this will help you to develop a clearer understanding of HRM. In addition, Griffith College offers a course in Positive Psychology at work - which is a great way to increase your understanding of the human mind and behaviour. In recent times Positive Psychology is particularly relevant in a work environment. In the current economic climate many employees find it difficult to overcome their fear of redundancies and perform at the maximum level for a prolonged period of time. It is therefore to the employer's advantage to ensure they are able to adequately manage their employee's expectations, create a more positive environment at work fostering high performance and finally ensure employee engagement at all levels of the organisation.

Learn more about studying Human Resource Management at Griffith College

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The Importance of Human Resource Management

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What is Human Resource Management (HRM)? This is a function within an organisation concentrated on recruiting, managing and directing people who work in it. Human Resource Management deals with issues related to compensation, performance management, organisation development, safety, wellness, benefits, employee motivation, training and others.

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https://smallbusiness.chron.com/key-functions-hr-department-31206.html