Future of the Human Resources Function
Over the past several decades, we have seen Human Resources evolve from an historically administrative function to one that has become an essential strategic partner at the executive (CHRO) and board level (Board HR Committee).
On this journey, the profession has at times suffered an image problem. In the Harvard Business Review, “Why We Love to Hate HR …” the writers noted that sometimes ‘HR managers focus too much on “administrivia” and lack vision and strategic insight.’ Ouch! Some pundits are even predicting that HR will soon be replaced by AI.
In contrast, I truly believe the role of HR has never been more important.
Early in my career, I wrote an article that asked ‘why more HR professionals don’t become CEOs’. I believed that one of the challenges is that we often start in the wrong place – trying to shape the organization to conform with HR policy and regulation (not unimportant) instead of realizing that first and foremost, we are there to help the organization and its team members succeed.
In the article, I argued that HR professionals must think first like a Board and CEO to understand the business and its strategy, then bring the HR lens and solutions to the table to achieve those goals. This approach became even more paramount as we entered the knowledge economy- because the focus shifted from solely “how do we finance or market our business” to “how do we attract, retain and develop the talent we need to compete?” A whole generation of leaders was suddenly focusing on the people issues like Jack Welch, CEO at General Electric, or highlighted in booked like Jim Collin’s “Good to Great.” The role of HR became ever the more important – and yet not all HR professionals were able to step up to the challenge.
The good news was that many in the profession stepped up and the role of HR evolved significantly over the years to becoming strategic leaders at the senior table. In Canada, organizations like the Chartered Professionals in Human Resources (CHPR) reshaped the vision, introduced a national competency model and supported professional development. I was honoured to be a part of this journey in the 1990s both as a provincial association chair and on the national board. Likewise universities and colleges created dedicated diplomas, degrees and executive education focused on strategic HR. And many organizations raised the bar on their HR approach because it was a critical competitive imperative. Today, you are hard pressed to see an organization of any scale foregoing a CHRO or senior HR expert on the executive team.
Today HR is still at the forefront facing like critical labour shortages in key sectors, upskilling the workforce to keep pace with AI and other technologies, addressing workplace mental health, remote and hybrid work models and constant change shifts in the global economy. Those who work in the HR profession - and the organizations that employ them - must invest in fresh thinking and practices that address risk, embrace novel approaches and use new tools to attract, retain, engage, develop and support the teams of people who deliver valuable products or services.
One new potential HR superpower - especially considering AI – is the move toward deeper analytics to provide insights and prediction on what attracts and motivates people and generates peak performance. I was recently involved in a project using AI to review thousands of employee engagement survey comments (note: any potential identifiers were removed for confidentiality and privacy). Not only was this a more efficient use of people’s time, but it allowed the HR team to engage with leaders to understand the root issues and develop solutions – not be buried in data analysis and report writing.
Another growing imperative – in part driven by global ESG reporting requirements – is the ability to use HR Scorecards to demonstrate the value and impact of our work at the Executive, Board and Community level. “What gets measured matters” as they say.
A good HR scorecard, aligned to the strategic plan, sends a clear message that people are important and that results are tangible and measurable. When HR practitioners can speak in this language and connect the dots beyond policy and process, it builds respect and improves the chances that the organization will invest in the areas that will generate meaningful results. This is something I learned in both private and public sector as we sought and secured investment in HR technology, learning and leadership development initiatives and health & safety programs.
A great example I observed was an occupational health professional who approached the CFO and managers of one organization to demonstrate the business case for supporting return to work and modified duties for injured employees. She was able to articulate it in dollars and cents to the CEO – as it costs much more to leave someone on WCB or short-term disability. She was also able to demonstrate to managers how tapping into knowledgeable staff on modified duty could help get important, but under-resourced project work completed. The final win was that staff felt valued and engaged at work.
In the current climate, if an HR professional cannot present a solid business case, demonstrate progress against measurable targets, or demonstrate the value add of an intervention, they and the department loses credibility and influence. Ultimately, we should all be working together to improve HR and business literacy across in both directions, as the more knowledgeable the rest of the organization is, the better it is for everyone involved.
As an HR executive, board member, teacher and consultant, I have supported a number of organizations and professionals to align, measure and improve the effectiveness of HR in achieving goals and objectives. I am particularly proud of the work we did at IWK Health to develop five-year people strategies connected to a publicly reported scorecard (you can find it on their website here). This helped align the organization to the most important people issues - from safeguarding the health & safety of the workforce to retention, vacancy management and talent investments – and connected the dots to how people connected to our broader mandate to provide safe, quality and accessible care to our community.
If this is an area you would like to explore more, I would be happy to chat.
References: Why We Love to Hate HR … and What HR Can Do About It, Peter Cappelli, Harvard Business Review, July-August 2015. I have long joked about writing a comeback called, “HR loves to hate you too” but I will leave that for another day. 😊
Recommended Listening: Blue Sun by Mark Isham. Best known for his film soundtracks, Isham is a brilliant trumpet player and ambient artist with several solo albums. This has long been a favourite CD when working, writing or relaxing on a Sunday morning reading the news over a cup of coffee.