Tuesday, September 1, 2015

A Strategic HR

 The HR in any organization as a department or individual need to be proactive in all aspects.

Today most of the organizations have a reactive HR. First of all, why aren't people always talking to HR? Why is HR only seen while recruitment, appraisal, increment or separation? HR needs first to bridge the gap to become the place where an employee needs to feel the importance of HR. Which role HR plays in an organizational profitability? And how to run a strategy HR?


HR helps organizations put "the right people with the right role at the right time." HR must start thinking like the rest of the business, and that includes proper strategic thinking designed to achieve the greatest impact for the least resource spend. Where to start? The fastest and best way to impact profitability is to make sure the hiring process is based on proven performance predictors so the right people get put in the right jobs, then integrate with evidence-based talent management, so performance continues to improve. Do those two things and you'll have transformed the business so much you won't need to worry about your internal PR. One of the major and important roles of HR is to help business hire the best of in terms of character and support later on in training on the technique and growing the expertise. Therefore, It improves the business effectiveness and efficiency, not only in terms of cost but also in terms of quality of the deliverables, which means happy clients, more work, happy employees, etc. And then HR can prove itself as a strategic corporate asset by creating value and cost control. This can happen when HR plays the key role in ensuring that the company strategic plan is implemented successfully by providing HR deliverables that are in alignment with company performance drivers. Secondly, HR should develop a performance measurement system that keeps corporate leaders update about how HR is contributing to overall firm performance and how HR impacts on the bottom line. HR can assess the role of talent acquisition initiatives, system processes, and the cost-benefit of utilizing vendors. HR can mitigate a company's risk at many different levels at its foundation and provide executive support in many other areas of the business around, training, recruiting and communication to name a few.


HR professionals serving as business strategists is an important step to transform HR as a strategic business partner. The fact is that there are many things HR can do to improve profitability. HR should understand their company's objectives; from there, be able to build strategies that tie into these to contribute to the organization's profitability. Overall, HR is experts at attracting, motivating and retaining key talent. Without this, a company in this day and age could lose this crucial competitive advantage and as such profitability as well! One of the success factors to HR significantly improving profitability begins with HR professionals serving as business professionals and strategists first and only then as HR experts on problems or issues addressed. When the real value is added to the business, only then can significant profit be generated. Those who just do not perform the HR journey often forget that for most of the organizational members, HR represents the face of their organization. Although, to the equity holder, it is the financial man that holds the key, often forgetting that even the finance man is a part of the human face of the organization. In essence, investors look at the numbers in money terms whereas a visionary organization looks into beyond these financial numbers. However, it is the onerous responsibility of the HR professionals to ensure that they do not remain just numbers because numbers do not perform journeys whereas the HR performs.


The benefits HR plays are in retaining and developing employees. The cost of hiring, training, and investing in a new employee is a major expense that is constantly rising and if you face constant turnover, a new hire is a huge expense that you may not get the return on your investment for. By ensuring that employees are properly trained, building a strong company culture, and developing successful employee retention programs, as well as many other things, HR not only contributes to saving their company a lot of money by reducing turnover, but also by developing strong performing employees that contribute to the profits and success of the company. From Strategic Planning, Recruiting, Training, Performance Management to providing uncompromising Leadership, HR can contribute a lot to improve company profitability by quantifying workforce productivity, controlling workforce costs and the true cost of recruiting, mobility, training, performance, engagement and turnover, managing cultural change, developing and coaching others, implementing healthy organizational environment. Employee engagement has been shown to affect profitability. Satisfaction may not promote increased engagement, but dissatisfaction will limit or prevent engagement. There are all sorts of things that can cause dissatisfaction; HR should learn what they are and try to ameliorate the causes


Human Resources also occupies a unique position within a business enabling them to identify organizational problems, resulting from poor management or weak leadership. By regularly communicating with employees at all levels, they can often gain insights others cannot. Knowing the "upcoming" talent within the company HR often is in the best position to suggest who can move into problem areas as needed. HR should, and must, become a business partner. It is urgent for them to get power to decide back, in a sea of engineers and finance experts. Because it all starts from within, a good way to raise HR PR / profitability is as follows:
-HR objectives to be clearly defined in the organization.

-HR to partner up with the business to ensure ongoing and adaptable contribution.

-HR to perform efficiently and effectively and then put in place evaluation methods to be able to build on feedback.

-HR to communicate the advantages on an ongoing basis.



HR practitioners need to use data more often to build business cases for talent analytics and expenditure analytics. They need to work to develop professional relationships with other senior leaders. The efforts should be collaborative, and more about building teams and relationships. When you do this, a trust level enters into the equation, and colleagues will not always automatically view HR as an expense. Especially when data supports the decisions and action. What can HR do to improve Company profitability? The "ticket" to having the seat at the table is to deliver real measurable value in the key areas such as developing a desired culture (safety, innovation, execution, change, etc.), improving retention by developing leaders who get what it takes to continually re-recruit and retain great people. Doing well in the key areas of retaining and finding talent, bench strength development, and a culture of being values-driven (vs. policy driven) deliver value in tangible ways. Where HR goes above and beyond is a relentless focus on eliminating waste and inefficiencies that deliver reduced costs and improved profitability. (Reduction of administrative fees, eliminating redundancy and time-consuming tasks, and reducing direct and indirect costs that result from harm in the workplace.


HR plays a significant role in an organization's profitability. When it is acknowledged that employees play a major part in an organization's performance, HR function does play its part equally. Recruiting right talent to the business at the right time is the key for success. Tracking the efficiency and optimizing the productivity of employees supports the company greatly. This helps in rightly sizing manpower for the organization. HR has a paramount importance, in supporting the business, hire the right people today for tomorrow, meaning those people which have the right attitude and soft skills, allowing the organization to adapt to the future through multidisciplinary capabilities, adaptation to change, flexibility and open mind. A Proactive HR can not only make a business profitable but also let it survive through tough times like recession! 
HR is an artery of every organization since the recruitment and selection process is carried out by this office amongst other responsibilities. There would definitely be no profits in an organization should HR carry out the recruitment and selection process incorrectly. Thus, HR should ensure that its systems and processes are up to date and relevant to the dynamic environment at all times. HR needs to be the business partner to both operations and transformation, understanding the organization's goals & issues, deriving HR's strategy thereby. And HR has its own expertise based on solid evidence over time and across all industries, company sizes & company maturity levels. These are the themes which HR needs to emphasize and prove their worth to business strategy and implementation; recruiting the right people for skills, capabilities fit, developing people in skills and leadership, recognizing & rewarding individual & team performance. Its overall function is to make sure the organizations walks its cultural talk. It is the internal oil that ensures the other parts are blending smoothly which includes identifying that talent is used effectively and paid well, ensures that turnover is monitored, complaints get heard and responded to in a timely way, HR proactively honors the human pulse of the organizations and looks for ways to enhance the culture to keep organizational leadership in tune with changing times.


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