HR – taking the lead
"Over the past decade or so, human resource professionals have been talking about HR transformation, getting close to the business, focusing less on basic HR transactions and more on adding business value. HR outsourcing emerges as one of the important aspects of HR transformation, enabling many organizations to decrease their administrative and transactional burden.
The question that needs to be addressed is “why is HR transformation not more successful?” In many instances, HR leaders are reluctant to give up transactional HR in the belief that transactions are an important link to the business. Another reason could be that companies that leverage an outsourcing provider often fail to redefine new HR roles adequately enough.
The coming years will see the role of the HR function evolve with a renewed focus on HR partnering with businesses and the HR strategy aligned to the business strategy. The growing shortage of talent is forcing organizations to focus more than ever on intangible assets such as employee brand, career opportunities, customer relationships, innovation, learning, leadership, people and culture. For HR to contribute to building an organization's intangible assets, it is important to ensure that the HR strategy is aligned with the organization’s business strategy.
With new talent challenges emerging from rapidly changing workforce demographics, the HR function can play a critical role in addressing future talent challenges by helping organizations improve their future capabilities without a dip in productivity or morale. HR must help organizations understand the talent market’s changing requirements in order to make their employers more attractive to top talent.
Going forward, HR will need to play an active role in formulating business strategy and driving strategic goals. HR will need to take lead in planning for these challenges by understanding workforce trends, identifying potential resource opportunities and gaps, and developing effective initiatives. HR must focus its time and resources on strategic imperatives and outsource administrative responsibilities. Business expectations from HR today are to coach and enable people’s capability and hence operational deliverables need separate focus, possibly by a third party.