A solid HR function is hugely important within any business and enables an organisation to achieve its strategic goals. People are essentially assets as well as internal customers and a human resources function will strive to create job satisfaction and employee efficiency.
So taking on board this last point, how can the management of human capital bring about value for a business? The answer is, they must be connected with the organisation and manage how people are sourced, acquired, utilised, improved and maintained, always keeping in mind the strategic goals of the business.
Depending on the overall health of the economy and the business, HR needs to be highly flexible and help the business adapt to fluctuations. Often they are perceived as a cost centre and are removed from strategic decisions, only coming into play once hiring or firing is required.
Therefore, as you can see, HR departments are under a huge amount of pressure and there are many issues surrounding their effectiveness, but these can also be viewed as opportunities. To ensure opportunities are turned into successes the following should happen:
Strategic HR goals aligned to overall business strategy
Adopt different ways of working and new technologies to enable a decrease in manual efforts when it comes to administration, data management, processes and KPI’s for example, thus allowing more time to be spent on strategic planning.
HR needs to be closely involved with the overall business strategy instead of being used as an afterthought and firefighting resource.
Utilisation of HR analytics to help develop best practices
Even though more and more data is being collected by organisations, it’s what we do with this data which really counts. This data must be used effectively to predict workforce trends, reduce risks and increase returns.
According to a study by KPMG, only 15% of respondents regarded HR as capable of providing “insightful and predictive” workforce information.
Don’t forget the power of social media internally
Many organisations avoid using social media internally, but as discussed in our last blog post, real value can be seen from adopting technologies such as Salesforce, Chatter and alike to really enhance employee communication.
These are obviously some quick and basic points, but more often than not, we get stuck in the day job and it’s hard to be able to look any further than this. Taking a step back and having the time and space to think strategically will majorly benefit you, your department and of course the organisation.