HR needs to focus on adding business value: Elizabeth Nanda
HR – enabling growth
In the last decade or so, there has been a considerable change in the expectations from HR professionals, in the way they are meant to contribute to and partner in the success/growth/transformation of their organization. After all, if the HR strategy has to support the delivery of business strategy, then it can no longer just continue to focus on basic HR transactions. HR needs to get away from tasks that can be done by outsourcing firms, for example, activities such as payroll processing, junior level hires, management of contracted workers, etc.
They should leverage on technology to handle all administrative tasks as this would reduce their transactional burden and make them available for more value added responsibilities.
HR needs to get close to the ‘business’ and focus more on adding business value through better employee engagement processes. Every person in HR needs to understand how their work makes a contribution to growth, to cost efficiencies and to financial and human capital development. The objective is not to transform from the inside out, but to understand what the business needs are and then prepare to deliver the same.
In a highly competitive business environment, having the right kind of trained/skilled human resources who are completely engaged, will ensure higher productivity. With higher productivity (combined with the right business strategy), business results are bound to look up. Employee engagement would go up even higher if the employee can see a direct connection/relationship between his/her contribution and the business results.
Some of the other areas that HR needs to begin focusing more on are workforce planning and designing rewards & recognition strategies that support greater productivity.
HR needs to spend more time on leadership building and overall skill enhancement for their employees. It needs to assess the talent pool to understand the relevance of current skill levels in the organization in order to meet the planned future growth needs and then develop training programs to prepare for those anticipated needs. It is about putting the right people with the right skills in the right place at the right time with the right cost.
HR needs to be focused on helping employees design their own career paths in the organization and equip them with the tools and knowledge to be able to do so.
In short, HR needs to create a great work place environment so that the business grows with its talented employees.