There are multiple ways a Human Resources organization can add value. Too often though, there is a mismatch between the value that HR is bringing and the growth and maturity curve of a company. Imagine, for instance, heading HR for a large, established, multinational corporation and believing that the value HR brings lies in the mechanics of setting up employee files, creating salary structures and running benefit programs. Conversely, imagine a situation where there is a relatively small start =up company. The company has grown to the size, maybe 100 employees, where they finally need an HR presence. The person selected start out by talking about aligning the employees to the organizational objectives, but the organizational objectives have yet to be defined. It is important to always keep in mind the match between the HR function and the organization. There are three primary ways that HR can bring true value to an organization.
HR has the responsibility to provide the basic mechanics of the HR function. This can include such basics as:
- Running ads and hiring for candidates
- Creating salary structures to ensure the workforce is paid correctly
- Selecting and running health insurance plans
- Keeping I-9’s
- Running basic training programs
- Legal Compliance
Moving along the continuum, HR should provide the processes that ensure that an organization can scale efficiently
- Hiring becomes……. an on-boarding process with predictive capability
- Providing benefits becomes ……..a well thought out approach to which benefits, how to create a benefit matrix and judgment applied to the types and cost sharing of benefits
- Legal compliance becomes……an understanding of what we are trying to accomplish and how best to accomplish it
- Basic Training programs become….. Training program that meet key corporate objectives where impact is measurable
- Basic compensation administration becomes…..internal and external equity comparisons, creative approaches to a three pronged approach and the most bang for our buck, social performance management systems
Where HR can truly contribute the most value is when the Mechanics and Processes are in place and we can step back and view the big picture strategy. Where are we going and how are we going to get there?
- Thoroughly understand the goals of the organization and get ahead of the curve- what processes, practices and strategies will be needed in 1 year? 3 years?
- Communicate corporate goals that align the workforce to the vision and mission of the Company
- Align processes and programs across the organization to create high performing teams
- Continually monitor the pulse of the organization and make recommendations to solve small problems before they become big ones
- Assist executive teams to make sense of the internal and external environments and the impact they have on the organization
What do we hope to Achieve?
Crafted effectively, we orchestrate the above to achieve:
- Increased alignment between organizational objectives and employee population goals
- Most value extracted from each hire
- Greater employee engagement yielding greater employee satisfaction
- Reduced turnover
- Better hiring decisions
- Better use of resources reflected at the bottom line