Do we really need Human Resources? Why isn’t HR keeping pace with the business? How do we help HR help the business?
Everyday, in many organizations, some version of these three questions is being asked BY MANAGEMENT. Why is that? Could it be because HR is about business and people but there are times when it feels like those two things are at odds with each other? Business impacts people and people impact business. They are intertwined. The relationship will always be a dynamic work in progress because both are always changing.
We keep asking these questions, because we’re still looking for answers.
Does a Business Need HR?
Yes. It may not need an HR department, but it definitely needs an HR function. There are two parts of HR that impact a business: “Core” HR and “Beyond the Core” HR. Sometimes they are considered the same, but the value they provide are quite different. They also require different skill sets and not all HR professionals are equipped or want to do both.
“Core HR” is focused on minimizing risk to the organization. This is the value it brings. As an employer, there are so many legal boundaries your business needs to navigate to stay out of trouble. The Core includes areas such as policies that guide behavior and decisions, compliance that meets government requirements, how you hire and fire, how you pay employees, how you keep them safe, how you treat and train them. Violations in each of these areas are significant and have costly ramifications if not handled properly.
According the 2017 Hiscox Guide to Employee Lawsuits, the average cost of a lawsuit (defense and settlement) is $160,000. In addition to the cost, your brand can be significantly impacted. We’re all aware of Uber’s employment issues, but did you know they were sued more than 433 times in 2017? Is that the type of publicity you want? How much more revenue will you need to generate to cover these costs? Yes, every business needs to have “Core” HR in place.
“Beyond the Core” HR is about increasing organizational capacity, enabling and facilitating future growth. It’s keeping performance management and other processes relevant and beneficial to the business. It’s being laser focused on how the business and people are performing together. It’s the insight, influence and innovation HR can bring to impact the business.
“Beyond the Core” is not compliance, administration and process. It’s the true alignment of business and HR strategy and execution. It’s being true partners in the efficient growth of the business.
Organizations that focus “Beyond the Core”, see greater productivity, creativity, teamwork, collaboration and better business outcomes.They are also better equipped to navigate through never-ending organizational change. HR needs to be a business enabler and facilitator.
Why Isn’t HR Keeping Pace with Your Changing Business Needs?
Too often HR is allowed to become a business within the business. Administration and process overshadow the insight and influence. The very systems that were put in place to support the business, such as performance management, now seem to be holding it back. Why? Because they stopped being connected to the business and became stand-alone programs. How long have you allowed your HR to be its own business?
If your business needs have changed and your HR hasn’t kept pace, there’s a really good reason why. Your HR team has been trained by your organization to do the job they’ve been asked to do. Is that job changing or has it already changed?
The lens through which an organization sees HR and HR sees itself, matters. When looking through the “Core” lens, HR is expected to keep the organization out of trouble. It works within legal and regulatory boundaries. Working within boundaries shapes a perspective.
When looking “Beyond the Core”, HR is expected to be adaptive to changing business needs and works with those same boundaries. Working with boundaries also shapes a perspective.
You own HR and can determine which perspective will shape your organization.
How Do You Help HR Help the Business?
- Rethink How You Think About HR.
Think of HR as a cross-functional business network, not as a stand alone or separate department. It’s a business network that manages across the organization to ensure all parts are working together to achieve organizational goals and to position the business for the future.
Too many times, leaders feel they “must work with” HR. This can be transformed into “want to work” with HR, simply by changing the way HR is practiced and the value it brings to leaders and to the business.
Organizations shoot themselves in the foot when they allow HR to be the last to change. They should be the first. If your HR struggles to keep up, it may be because they haven’t been kept up. If HR is expected to be a business enabler and facilitator, it must be positioned to lead.
- Expect More. Support More.
HR should receive the same scrutiny every other business function receives. Its products and services should be reviewed often and reflect the current and anticipated needs of the business. When the systems and processes have become a burden to the organization or do not deliver on the intended outcomes, quickly reassess and take action. This happens in other business functions, why not HR?
Understanding the business drivers and levers are no longer optional. HR must be focused on the business, not the business of HR. Expect HR to learn more about the business as a business. Expect leaders to learn more about their HR responsibilities. It’s a partnership. Expect and support HR and company leadership to change their relationship with each other.
- Reassess your HR Team
This is a tough one. The people that got you here, may not be the people that take you where you need to go. When there needs to be a major change in HR, a change in staff usually follows. Of course, you want to give people the opportunity to join you on this new journey, but be mindful how long you will give them. This isn’t just about skills and experience, it’s also about mindsets and they don’t change overnight. Remember, you trained them. Now you have may need to re-train them!
Also, take a critical look at your HR structure. Is it set up to support the business or to support HR? How can HR be more efficient and resources freed up to focus on higher value work? Keep the structure as simple as possible.
- Build Muscle and Flexibility
Webster’s Dictionary defines muscle as ”a body tissue consisting of long cells that contract when stimulated and produce motion.” If you need to make changes in your HR, you may need to may need to stimulate under-used muscles or build new ones to get the results you want. Both require commitment and discipline. You’ll need to do new exercise routines and it will hurt in the beginning, but over time, the muscles get stronger and soon, additional weight can be added. Building muscle in HR will require the same approach. You want to your HR to have strong, flexible muscles to handle your business changes.
Webster’s defines flexibility as, “a ready capability to adapt to new, different or changing requirement.” Flexibility is achieved by stretching your muscles over time. Keeping your HR muscles flexible requires keeping HR in step with your business. It requires organizational ownership. If HR exists to support the business, then the business needs to support HR as well.
So, why do we keep asking these three questions?
Because we know HR can be a leading force in the health, wealth and growth of an organization and it takes work to make that happen. The investment you make in keeping HR connected and integrated, will help HR help your business. It will do its best to keep you out of trouble. It will be more adaptive to your changing needs. And, it will provide the insight, influence and innovation needed to grow your business. So, keep asking these three questions. HR and business will always be a dynamic work in progress!