Future of the Human Resources Function
Over the past several decades, we have seen Human Resources evolve from a 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 …” they noted that sometimes ‘HR managers focus too much on “administrivia” and lack vision and strategic insight.’ 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. Critical labour shortages in key sectors, workplace mental health, remote and hybrid work models and constant shifts in the global economy, immigration and technology test our current business models.
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 (with any potential identifiers removed for confidentiality and privacy). Not only was it more efficient, but it provided the HR team and leaders with key themes and areas to dig into further. This enabled HR to be engaged with leaders in developing solutions - not buried in data analysis and report writing.
Another growing trend – in part driven by global ESG reporting requirements - is the use of HR Scorecards reviewed at the Executive and Board level. What gets measured matters, as they say and a good HR scorecard, aligned to the strategic plan, sends a clear message that people are important. It also ensures that investments go toward implementing the right solutions to de-risk and support the organization and its people. This is where the greatest value-add comes from the best HR professionals and leaders.
As an HR leader, board member and consultant, I have supported a number of organizations to align, measure and improve the effectiveness of HR in achieving their goals and objectives. 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.