Why Human Resources is Getting a Seat at the Table
The role that Human Resources play in organizations has changed dramatically over the years. Traditionally, HR has been considered an administrative and transactional function. However, in recent years, there has been a shift whereby HR is seen by more organizations than ever before, as a strategic business partner. Employers are slowly realizing the crucial role in which HR plays in developing a company’s strategy, as well as handling the employee-centered activities of an organization. The titles of HR professionals have also evolved, whereby traditional titles like VP of Human Resources have been replaced with more ‘people-centric’ terms like Chief People Officer.
The value that HR provides as a strategic business partner cannot be overlooked. The implementation of your strategic plans cannot be successful without employee involvement and input from human resources. Realizing the value of HR management is instrumental to developing a successful business strategy. HR’s forward-thinking principles and business acumen will ensure your strategic plans are implemented effectively.
Here are three reasons why employers should work with an HR professional as a strategic partner.
Increase Your Bottom Line
It is essential to have HR be part of the strategic planning process from the get-go. Not leveraging HR as a strategic partner can negatively impact your organization’s bottom line and result in employee turnover, low employee engagement, and decreased sales. As a strategic business partner, HR can ensure there is sufficient funding for human resources activities. Funding for training, employee development, salaries and benefits can strengthen your organization’s position and competitiveness in attracting and retaining valuable talent. HR can also minimize excessive spending through developing approaches for reducing workforce management costs. By studying the labour market, employment trends and salary analysis, HR can ensure competitive and realistic wage-setting, as well as wage compliance.
Achieve Balance and Stability
When HR acts as a strategic business partner and helps facilitate the Executive Leadership team, they are able to attain balance and stability within the organization. Your strategic business partner will ensure that corporate strategies take into consideration all of your resources, including employees. HR can bring a broader perspective to the boardroom table and make certain that better workforce decisions are made. A major element of HR’s responsibility is to understand the employees’ concerns and aspirations and use that to create an environment that boosts productivity. For example, implementing a Performance Review Program which offers feedback, recognizes employee successes and identifies opportunities for growth, is essential.
Effective Change Management
HR plays a very important role when your organization is going through any changes. Since changing the strategy, business model, and culture all require making significant changes to the talent or organizational design in some or all parts of the organization, the HR leader is the one best qualified to help. With HR as a strategic business partner, organizations will be able to effectively link change to the strategic needs of the business and communicate the benefits of that change to employees. When employees are equipped with the skills and information needed to successfully adapt to change, there will be minimum disruption.